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HomeMy WebLinkAboutMINUTES-1991-04-01-19911 1 CITY COUNCIL A SPECIAL MEETING of P.M. in the Council Thursday, March 28, April 1, 1991 the City Council was held on Monday, April 1, 1991, at 7:36 Chamber pursuant to a call made by Mayor pro tem Drummer on 1991. ROLL CALL - PRESENT: Alderman Brady Alderman Korshak Alderman Morton Alderman Washington Alderman Wold Alderman Nelson A quorum being present. ABSENT: Aldermen Collens, Lanyon, Paden and Warshaw TARDY: Aldermen Davis and Esch PRESIDING: Mayor Joan W. Barr Alderman Wollin Alderman Rainey Alderman Feldman Alderman Juliar Alderman Drummer The Council observed a moment of silence in memory of Alderman John T. Rudy, Jr. Mayor Barr expressed the sadness felt by all of Alderman Rudy's colleagues on the Council at his untimely death. She said that he will be greatly missed by his family, his colleagues, community members, and the constituents he had so sensitively, ernestly, and with conviction, represented for the past six years. She said that a formal City Council Tribute was scheduled for the regular City Council meeting next Tuesday, to enable his City Council colleagues to say their own good byes. Mayor Barr commented that the memorial service that afternoon had certainly celebrated the life of a man who will be greatly missed by all of those who knew him. Docket 93-3B-91: Ordinance 36-0-91 - Borrowing from the Water Pollution Control Fund - Consideration of proposed OrdinanceE by which the City Council would borrow approximately $020,064,Q from the Water Pollution control Revolving Loan Fund to pay the costs of the improvements listed as Phase I of the Long -Range Sewer Plan. Alderman Wold, Chair of the Flood & Pollution Control Commission, moved adoption of Ordinance 36-0-91 which had been introduced at the March 25 meeting. Seconded by Alderman Nelson. Alderman Wold explained that at the time of its introduction, the City was not aware that it had to be adopted by April 1. In response to a question from Alderman Brady, Acting City Manager Aiello explained that certain changes to the project funding had been required by the Illinois Environmental Protection Agency. She said construction contracts would remain the same at $16,562,500.00. The construction contingency was being changed from a 5% contingency to a 3% contingency and the amount required there was being changed from $828,500 to $572,975. Costs for engineering design would remain the same at $1,012,000. Construction supervision would remain the same at $1,250,000. Construction interest was added to the equation in the amount of $667,389 which brings the total now required for the project to $20,064, "0.00 8(,q. 0D W In response to a question from Alderman Drummer, Acting Manager Aiello explained that the terms of the loan were that the interest on the loan would be 3.59 percent for'$20 million dollars over a period of 20 years. The annual debt service will amount to $1,415,000, which the City intends to retire by our annual transfer from the Water Fund to the General Fund of $1,500,000. Alderman Nelson commented that when he first ran for Alderman 14 years ago, one of the major issues was replacing our antiquated sewer system. At that time the figure to replace it was $120,000,000. He said that the Flood & Pollution Control Commission has been at work for decades to address this problem and now zero hour has arrived. He congratulated the committee for coming up with a workable plan that will deal with the problem in the most cost-effective manner and accomplish the goal. He asked Public Works Director David Barber to review the impact that this will have on water bills over the next four to five years. Public Works Director Barber pointed out that the ordinance before the Council that evening only dealt with Phase I of the project and is completely covered by the revenue realized by sale of water to the Northwest Water Commission. It is the next phase that we will see an increase in rates. He said that in the next phase it was possible that water rates could go from 360 per hundred cubic feet to $2.30 for the same amount of water. However, he pointed out there was an alternative way of financing that by dealing with a formula for storm water runoff. He said that would be discussed when the second ordinance (33-0-91) dealing with long-term financing is considered by the Council at the next meeting. In response to a question from Alderman Brady, Mr. Barber said that the Flood & Pollution Control Commission's recommendation was to discuss the user charge rates and adopt that portion without adopting any recommendations, at this time, on the storm sewer charge. After the new Council is seated, they are recommending that a special meeting be called to discuss the whole program. In response to a question from Alderman Esch, Mr. Barber said that the increase in rates would be to sewer rates and would affect only citizens of Evanston because only they used the sewers. However, he.said sewer charges are based on water useage. He also said that at the special meeting the alternative formula would be discussed that a citizen would be charged for how much asphalt and concrete on his or her property which increases runoff. Charges will be based upon storm water volume, and would allow charges to be distributed more equitably. Alderman Rainey, Mr. Barber and Alderman Wold discussed the timing of a special meeting and Mr. Barber clarified that no funds can be dispersed before the second required ordinance is passed. He said that it is anticipated that the second ordinance will be passed on April 22. ' Alderman Wold announced that the committee had amended the ordinance in Section 3 on page 3 to add the words "subject to the express provisions of this Ordinance," before the words in the opening sentence "the City may not adopt additional Ordinances..." Seconded by Alderman Nelson. Roll call on the amended Ordinance. Voting aye - Aldermen Brady, Esch, Korshak, Morton, Washington, Wold, Nelson, Wollin, Rainey, Feldman, Juliar, Drummer, Davis. Voting nay - none. Motion carried. (13-0). Mayor Barr read Mayor pro tem Drummer's call for the special meeting into the record: "In my capacity as Mayor pro tem, I hereby call, pursuant to Rule 17.4, for a Special Meeting of the City Council to be held April 1, 1991 at 7:30 P.M. in the City Council Chambers. The nature and object of the Special Meeting is to consider Docket 93-3B-91: Ordinance 36-0-91 - borrowing from the Water Pollution Control Fund "Consideration of proposed Ordinance 36-0-91, by which the City Council would borrow approximately $20,064,864 from the Water Pollution Control Revolving Loan Fund to pay the costs of the improvements listed as Phase I of the Long -Range Sewer Plan." This Ordinance was introduced at the Council meeting of March 25, 1991. Dennis Drummer, Mayor pro tem." Mayor Barr thanked the Council for coming out this evening and asked for a motion to adjourn. The Council so moved and the meeting adjourned at 7:54 P.M. KIRSTEN F. DAVIS CITY CLERK