Rock Island Today

City of East Moline Committee of the Whole met June 3.

Here are the minutes provided by the committee:

ROLL CALL

Mayor Freeman called the meeting to order and directed the City Clerk Wanda Roberts-Bontz to call the roll. The following Alderpersons were present: Olivia Dorothy, Jeffrey Deppe, Nancy Mulcahey, Adam Guthrie, Rhea Oakes, and Lynn Segura. Absent: Jose Rico. 7:19 p.m.

ADDITIONS/CORRECTIONS TO AGENDA

None

Reallocation and Reappropriation of Special Use Funds to Support Economic Development, Tourism, and Infrastructure (Mark Rothert, City Administrator)

Below is a current listing of “special use” funds the City has in reserve. Many of these funds have been underutilized in the past few years. Staff is proposing to repurpose and re-appropriate these funds to align with current needs and opportunities, especially as they relate to the Greater Downtown Streetscaping Project, planning for the Avenue of the Cities, Jacobs Park improvements, emergency infrastructure repair and partially meeting the needs of a local match for the RAISE grant.

These special-use funds include:

• Hotel/Motel Tax Reserve Funds totaling $545,216. These funds are to be used to promote tourism or overnight stays in the community.

• EM Loan Funds totaling $616,319. These funds are used to support businesses to grow, expand or improve in the community. However, there has not been much activity or deal flow through this loan fund in years.

• HUD Fund Reserves totaling $172,514. These funds have long been on the city’s financial books and were historically used for a HUD related project completed years ago to assist low-to moderate income residents. There are no restrictions in the use of these funds at this time.

• Downtown TIF Funds in reserve total $449,965. These funds have built up over the years and can be used to support public infrastructure and renovation of private businesses in the TIF district.

Altogether, funds total $1,784,014.

Below are proposed new uses for the above funds, which requires the City Council’s approval to move forward.

1. Creation of a Business Improvement Grant (BIG) Program: The recently created Business Development District #2 (BDD) is estimated to generate over $1 million a year. As discussed with local businesses during the consideration and adoption of the BDD, funds generated from its .75% sales tax could be used to help create a grant fund to assist businesses every year. It is recommended initially to fund the BIG program with $500,000 annually from the BDD. The remaining revenues would be used by the City for other eligible costs in the BDD, such as infrastructure, plans or studies, or to reimburse the city for costs to develop in the district. However, BDD funds will be received every month from the Illinois Department of Revenue, so a sizeable accumulation of funds for programming will take upwards of a year alone.

Alternatively, the funds identified above can be pooled together for “starter funding” of the BIG Program this year. Attached is a more in-depth program model for the BIG Program. Funding commitments are envisioned to be capped at $50,000 per award, with an applicant/awardee match requirement of up to 40% of a proposed project. A BIG grant, along with an owner match and lender financing could allow applicants owners to make substantial improvements to their properties with projects well over $100,000 in value. The program model lists eligible expenses that largely cover improvement costs for property.

2. Revive the EM Loan Fund: This existing fund could be used help local business with growth, expansion or improvements, potentially in conjunction with the Small Business Administration 504 lending program. The loan fund could also be helpful for grant applicants to the BIG Program meet their local match requirements. However, the EM Loan Fund needs to be updated from its current structure to lower barriers to borrowing, such as the complexity of the application, stringent underwriting criteria, and unattractive interest rates. A draft revision of the EM Loan Fund Program will be forthcoming at a later date.

3. Undertake master planning for the Avenue of theCities. The Avenue of theCities haslong been deficient of proper planning related to transportation, land use, and development. Adding complexity to the issue is that the State of Illinois actually owns the right of way for the Avenue of the Cites and any planning for this area will likely need the support and cooperation of IDOT as well. However, funds can be allocated now to start a planning and engagement process with key stakeholders on this vital commercial area.

4. Jacob’s Park parking lot improvements. The City recently was awarded $71,000 from the State of Illinois for parking lot improvements at Jacob’s Park. This amount however is not enough to make improvements to all parking lots at Jacob’s Park so the City has had to scale down its scope of work to address only Lot #2 at this time, which is in front of the ball fields. The scope of work at Lot #2 is to turn it from gravel to paved parking, at an estimated cost of $232,500. The State’s grant will reduce the cost to the City down to $161,500. It is therefore proposed to use funds from Hotel/Motel tax reserves to make this improvement that will help create a more usable space for tournament participants and visitors.

5. Emergency Water/Sewer Line Repair Funding. The Maintenance Services Department has seen an increase in emergency lateral line repairs from the main line to a home, due to age and deterioration. These lines are technically owned by the property owner, but circumstances are such that a line cannot remain unfixed due to more damage potentially being caused to the surrounding environment by uncontrolled flowing water or wastewater. In these instances, the city needs to fix these lines under an emergency repair. The HUD Fund has been identified as a source of funding to help with these repairs.

6. Partial local match to RAISE Grant. The nearly $30 million dollar Greater Downtown Streetscape Project is being funded through a federal RAISE grant that requires a 20% local match of nearly $6 million. The City can raise these funds through state grant funding or city funds. While the City is pursuing state funding, such as the Rebuild Downtowns & Main Streets Capital Grant and through IDOT’s Economic Development Program, local funds from the City will still be needed. Funds above are therefore a source that can be used to partially meet this local match requirement.

7. Contingency for Special Projects or Miscellaneous Issues. This line item is for any special projects or unforeseen costs that the City may need to address.

Attached is Sources and Uses document that summarizes the proposed reallocation and reappropriation of funds. Staff recommends approval.

RECOMMENDATION/REQUESTED ACTION: Approval

Alderperson Mulcahey asked that there was $600,000.00 in the East Moline loan fund. Where has that been?

Mayor Freeman stated that the people that applied for the loan did not meet the qualifications of that loan. It is a mirror of the loan that Bi-State Planning has. Did not want all the money spent here. Mayor Freeman stated that some of the money needs to be left in reserved.

Alderperson Mulcahey asked if the $250,000.00 is that in the $600,000.00 figure.

Mr. Mark Rothert stated that yes that is part of that figure. That money has just been sitting there to be used as a loan fund. No one has come to the City to be able to access the money.

Alderperson Mulcahey stated that the $179,000.00 that HUD money was that the money Annika Whiting found? Mayor Freeman stated yes.

Alderperson Mulcahey that was for housing?

Mayor Freeman stated that was when they were talking about furnaces.

Mr. Rothert stated that there were no restrictions on those funds.

Alderperson Mulcahey stated that the redevelopment money has any strings left on that money? Alderperson Mulcahey asked about the downtown because of the grant, businesses that want to come in to do improvements on their buildings. She would like to think more up designing, then maybe paint or exposing brick. If there is a way to bring character back to the old downtown. Alderperson Mulcahey stated she would like to see no more aluminum siding on buildings, she would really want to enhance the building. Some of this money could be used to hire help for businesses to do that. With the improvements or whatever else that is going on. She would like to see something higher elevated downtown. Regarding the Avenue of the Cities, she would like to see the same thing. Alderperson Mulcahey does not know if that whole area is going to be redeveloped or if they are going to do that plan. She does not want to get ahead of that, and not invest properly. Alderperson Mulcahey thinks that these are a couple good programs, and to hire a consultant in some areas.

Mayor Freeman stated what he has discussed with staff, anything regarding infrastructure improvements to exactly what Alderperson Mulcahey said. Mayor Freeman would not want anything released down here until the construction starts, and have a professional tell us what they need to do to make it more appealing. He stated that just like in the SSA fencing there are rules and there has to be qualifications on what goes up there. Mayor Freeman stated he would also like to see that. Mayor Freeman stated not to release any of that money until the City has a study or someone telling the City how to improve the look of the businesses downtown.

Mr. Rothert stated that to utilize some of the grant money from the state, by hiring an architectural design firm to work with the businesses for a design plan for their building. The building department will approve it before the building construction is started. The City Council can approve allocating a portion of this $300,000.00, that $50,000.00 will go toward architectural and engineering design work.

Mayor Freeman stated to Alderperson Mulcahey that he is on the same page as she is, for once. Alderperson Oakes stated that downtown is doing great.

Mayor Freeman stated that they are not going to discriminate against businesses on the hill and businesses downtown, they will be coming up with a plan for both locations.

Mr. Rothert stated that there is an address listing of all businesses in the Business District and Downtown. They will get a notification of this program once it is adopted, in two weeks.

Alderperson Dorothy sent in some language comments, will she see those incorporated by the next meeting. Mr. Rothert stated yes.

A motion was made by Alderperson Oakes, seconded by Alderperson Deppe to concur with the recommendation as presented. Upon roll call the following voted in favor: Guthrie, Oakes, Segura, Dorothy, Deppe, and Mulcahey. Motion carried.

PSA for Utility Rate Study: Water, Sewer, and Stormwater Drainage (Tim Kammler, Director of Engineering)

City code directs staff to request the city council initiate a third-party review of utility rates every three (3) years, including a cost of service rate analysis to recommend water, sewer, and stormwater utility rates which accurately reflect the cost to serve customers. Additionally, East Moline’s intergovernmental agreement with neighboring municipalities for the operation of our Regional Sewer Treatment Plant requires that sewer rates be “professionally reviewed for adjustment” every three (3) years. The last water & sewer rate study for East Moline was conducted by HDR Engineering, Inc. in 2021. The last stormwater rate study was conducted by Stanley Consultants in 2014.

Staff and elected officials were pleased with the degree of expertise, analysis and deliverable provided by HDR Engineering on the city's most recent rate study. As such, staff have obtained a proposal from HDR Engineering to perform a 2024 rate study for the city's water, sewer, and drainage utilities. This proposal with outline of scope of services is attached for Council consideration.

RECOMMENDATION/REQUESTED ACTION: Approve Professional Services Agreement with HDR.

Mr. Tim Kammler stated that in the Rate Study Ordinance that was passed, it has 5 years in there. Usually when a Rate Study is done for 5 – 10 years.

Alderperson Oakes said the last one was done in 2021.

Mr. Kammler stated that they have to update rates every 3 years.

Alderperson Oakes stated that with the Rate Study that they can raise the rates again?

Mr. Rothert stated that they are also doing a Facility Study at the same time for both plants which will form the Rate Study.

Mayor Freeman stated that the Study is just so that the City knows where they are. Down the road the City can make that decision if the City tries to raise rates or leave the rates the same.

Mr. Kammler stated that when they do the Study there would be 5-year adopt rates. Mr. Kammler stated that you would like to have a data-driven piece of information make a decision.

Alderperson Dorothy requested that they include in the Rate Study the need to upgrade the storm water infrastructure. For example, new climate change driven precipitation patterns may require us to start using higher capacity catchment and conveyance systems. Alderperson Dorothy asked for the Rate Study to include funding for a city-wide drainage study to understand current and future investment needs.

Mr. Kammler stated that they had a drainage master plan this year. Some of the emergency repairs preempted that. If this could be one of the items funded by the Rate Study would be a drainage masterplan.

Attorney Standland asked if the drainage masterplan is in the original scope of the Rate Study or will the scope be modified?

Mr. Kammler stated the scope is not being modified. Mr. Kammler stated this is something from staff. Mr. Kammler stated that as they give information to HDR that they include a drainage masterplan in that Study. The scope you see there will be unchanged.

Attorney Standland stated that the timeline on contract review is not such that these are coming to you pre-reviewed at the Committee of the Whole. The review of the contract occurs between the Committee of the Whole and the Council Meeting.

A motion was made by Alderperson Dorothy, seconded by Alderperson Guthrie to concur with the recommendation as presented. Upon roll call the following voted in favor: Guthrie, Oakes, Segura, Dorothy, Deppe, and Mulcahey. Motion carried.

ADJOURMENT:

A motion was made by Alderperson Mulcahey, seconded by Alderperson Oakes to adjourn the Committee-of-the-Whole meeting. A voice vote was taken. Motion carried. 7:42 p.m.

https://www.eastmoline.com/AgendaCenter/ViewFile/Minutes/_06032024-1025