MINUTES

PUBLIC WORKS COMMITTEE
SPECIAL MEETING
MINUTES OF MARCH 18, 2008


#1 CALL TO ORDER
Chairman Michael Puhr called the Special Meeting of the Public Works Committee to order at 5:03 p.m.

Roll Call was answered by Chairman Mike Puhr, Vice Chairman Rick Strebing, Aldermen Terry Baldwin, Jon Cooper, Steve Foster, Bill Gilbert, and Tommie Reed. A quorum was present.

Others Present were Mayor Scott Eisenhauer, Aldermen Jerry Askren, Lois Cooper, Steve Nichols and Nancy O’Kane, City Clerk Janet Myers, City Comptroller Gayle Brandon, City Engineer David Schnelle, Information Technology Administrator Teresa Winn, Public Transportation Director Richard Brazda, Public Works Director Doug Ahrens, 8 audience members, and 3 news media.

#2 Chairman Puhr presented a resolution authorizing the Lease of Technological Equipment for Public Works Facility from Global Enterprise Technologies for a period of five years at a cost not to exceed $644.92 per month, with a $1.00 buyout of all equipment at the end of five years. Alderman Strebing moved for approval, seconded by Alderman Reed. Teresa Winn explained the equipment for Public Works was in the original lease agreement passed by Resolution No. 2007-19; however, there was a need to install the new phone system at Fire Station #4 and upgrade some equipment to plan for disaster recovery instead. The monthly cost also includes maintenance. Alderman J.Cooper questioned the funding source and Comptroller Brandon stated it was a lease purchase through the Capital Improvements Fund. There being no further questions, the roll call vote being:
Ayes: Aldermen Strebing, Baldwin, J.Cooper, Foster, Gilbert, Reed, Puhr
Nays: None
Motion carried 7 to 0.

#3 Chairman Puhr presented a resolution authorizing a Loan from Working Cash Fund of up to $159,000.00 to the Capital Improvements Fund to cash flow the Ellsworth Park Boat Ramp Project, to be paid back within 90 days from the Illinois Department of Natural Resources Boat Access Grant and from Capital Improvements Fund. Comptroller Brandon reported there were ample funds in Working Cash since the General Fund reimbursed $174,000.00 borrowed earlier. There being no questions, the roll call vote being:
Ayes: Aldermen Foster, Gilbert, Reed, Strebing, Puhr
Nays: Aldermen Baldwin, J.Cooper
Motion carried 5 to 2.

Chairman Puhr allowed for audience comments prior to presentation of the proposal to increase Motor Fuel Tax.

• State Representative Bill Black presented the Committee with a copy of his remarks and other information to support his position and spoke opposition to an increase in motor fuel taxes due to an economic downturn, the rising cost of fuel nation wide, the rate increases announced by Comcast, Ameren IP, and Aqua Illinois Water Company, and the rising cost of milk, bread, and many other necessary items. He proposed using the more than $400,000.00 a year received by the City in sales tax on gasoline to finance a multimillion dollar bond issue for street improvement projects. He also spoke opposition to how fast this issue is being discussed, a lack of public meetings to allow residents to comment, and questioned if a priority list for street improvements has been developed and provided to the public for review. Finally, he stated when gasoline prices increase, people change their driving habits and less money will be received each year on tax per gallon.
• Curtis Chaney of Monticello and Vice President of Tri-Star Marketing aka Super Pantry spoke in opposition to an increase in motor fuel tax as the company is now absorbing the $0.01 tax, causing the Danville market fuel margin to be only about $0.08 per gallon, and will be forced to pass the increase on to customers.
• Darlene Brooks of Potomac and Manager of the North Vermilion BP Station spoke opposition to the motor fuel tax increase due to customers leaving the area to purchase gasoline elsewhere. She voiced concern about the need to cut employees with the increase in costs and recommended other means of funding for streets such as grant dollars and Highway Use Tax funds.
• Randy Meyer of Teutopolis and owner of Mach I on North Gilbert spoke opposition to the motor fuel tax increase due to the increased cost to the consumer and Danville being the lowest market of their stations having a fuel margin of $0.0794 per gallon. He also questioned the lack of public meetings to allow citizens a chance to speak prior to a final vote.

#4 Chairman Puhr presented an ordinance amending Chapter 116, Subsections 116.81 and 116.82, to increase the Motor Fuel Tax rate by $0.04 per gallon to $0.05 per gallon and establishing a Diesel Fuel Tax rate of $0.02 per gallon and imposing an annual increase per gallon equal to 2% of the rate established by the Illinois Department of Revenue as of January 1 each year, effective May 1, 2008. Alderman Strebing moved for approval, seconded by Alderman Reed. Director Ahrens reported the proposal is in response to the Committee’s request on March 18 to fund additional road repairs. He clarified that bio-diesel with less than 10% blend will not be taxed and would not be included in the definition of diesel fuel. With anticipated funding levels of the increased motor fuel tax focused on residential and arterial streets as an overlay program, 10.2 miles of seal coat (oil and chip) roadway and 2.2 miles of overlay could be accomplished; however, there would not be sufficient funds for road replacement. The funds received from the tax on diesel would be used for economic development infrastructure local match. It was clarified about $2 million of sales tax dollars goes towards Streets budget to purchase material including salt and patch. Without a funding source for road repair, the City will soon be forced to begin seal coating asphalt streets to keep them together. The priority list prepared a few years back is still accurate. The Fairchild Street Subway Project will be a multimillion dollar project that would need a bond issue to be accomplished and without the help of State Legislators with State and Federal grant dollars, Winter Avenue Reconstruction Project and other economic development infrastructure needs would not have been possible. Alderman Puhr voiced support of the proposed increase and questioned if the State had any plans to change the way Motor Fuel Tax funds are distributed, such as per mile of roadway instead of population. Representative Black stated it is difficult to change the method with Cook County legislators but asked for a resolution from the City Council urging the State to re-examine the Motor Fuel Tax formula. Alderman Reed voiced support due to the number of people demanding streets to be fixed. Alderman J.Cooper questioned how the funds would be receipted and if they would be dedicated for streets. It was stated an Enterprise Fund would be created for Motor Fuel Tax receipts, including the current $0.01 per gallon tax, to be directly allocated toward road repair and replacement. Alderman J.Cooper also questioned why a Utility Tax had not been passed like other cities have done and Chairman Puhr stated it was explored and discussed a few years back but was met with opposition. Alderman Gilbert questioned the diesel tax and Mayor Eisenhauer stated the revenue would be set aside and used for local matches for economic development infrastructure. During discussion, Alderman Gilbert moved to remove Section 116.82 (A)(ii) that imposes a $0.02 per gallon tax on diesel fuel, seconded by Alderman J.Cooper. Aldermen Gilbert and Baldwin voiced concern about the impact on small businesses and trucking companies. Alderman Baldwin does not think this tax will do anything for improvement of the streets, voiced concern with not allowing public input, and opposes implementing more taxes. Alderman Foster requested the amendment be withdrawn to allow the full Council to debate and decide what would be best. There being no objection from Aldermen Gilbert and J.Cooper, the motion was withdrawn. There being no further discussion, the roll call vote on the original motion being:
Ayes: Aldermen J.Cooper, Foster, Gilbert, Reed, Strebing, Puhr
Nays: Alderman Baldwin
Motion carried 6 to 1.

#5 ADJOURNMENT
There being no other items on the agenda, the meeting was adjourned at 5:57 p.m. following a motion by Alderman Strebing and a second by Alderman Gilbert.

Janet K. Myers, City Clerk

Approved: 04/08/08
Posted Publicly: 04/11/08