Roger Mensinger of Curry and Associates addressing the council about potential water system projects. The city is seeking a $3.1 million USDA Rural Development loan to underwrite the cost of the projects, which includes $2.3 million for water line replacement.

The Gillespie City Council on Monday night took steps toward taking advantage of historically low interest rates to borrow $3.1 million in U.S. Department of Agriculture Rural Development funds. The money, coupled with existing funds the city either has on hand or expects to receive, is expected to underwrite upward of $4 million in capital improvements, including the replacement of about 50 percent of the city’s aging water lines.

City Treasurer Dan Fisher and Roger Mensinger of Curry and Associates Engineers, Nashville, outlined the ambitious proposal, which relies upon the city using existing funds to pay off a previously existing bond issue in order to free up funds for servicing the USDA debt. Fisher told council members that USDA is offering loans at a fixed rate of 1.65 percent for terms of up to 40 years.

[pullquote]This is the absolute lowest interest rates have been from this agency in history[/pullquote]“This is the absolute lowest interest rates have been from this agency in history,” Fisher said. “Even during the Depression, rates were not this low.”

Fisher said the city owes about $375,000 in principal on a previously issued $410,000 bond issue executed 1985 for improvements to the city’s water system. Those bonds recently became “callable,” meaning they can be paid off early with no penalty or additional interest. According Fisher, the city currently is about $60,000 a year to service the bond debt. Paying off those bonds with existing funds, he said, would free up that money to service debt with the USDA at a much lower rate of interest.

The $3.1 million loan, along with existing funds and revenue, is expected to pay for several capital improvement projects, the most of ambitious of which will be replacing about half of the city’s water lines. That project alone is expected to come in at slightly more than $2.3 million.

[pullquote]The most of ambitious of which will be replacing about half of the city’s water lines[/pullquote]“You can do about half of the city for that money,” Mensinger told council members. Fisher said the city has several options for determining which lines would be replaced. For example, the city could concentrate on areas with a history of water main breaks, as well as areas where the city knows the age and materials of the lines make them vulnerable to future breaks. Another option would be to start from the water treatment plant and work out from that point.

In addition to the lines being replaced through the $2.3 million project, Fisher said it might be possible to use city workers to replace additional lines, resulting in an overall project that would replace more than half of the lines in the city.

Other projects included in the overall capital improvement program:

• $450,000 for major repairs to the spillway at the New Gillespie Lake.
• $53,556.15 for repairs to the Old Lake spillway.
• $390,000 for new waters meters capable of being read remotely for billing purposes.
• $200,000 for additional expenditures associated with remodeling the interior of the former United Community Bank building on Macoupin Street.
• $70,000 for additional environmental abatement projects at the UCB building.
• $200,000 to install a solar panel field at the water treatment plant to generate electrical power.
• $35,000 to install solar panels on the south side of the former UCB building.
• $100,000 to build a new Street Department building.
• $55,000 to demolish the current Street Department building.
• $55,000 to finish remodeling the former Grandone Building on Pine Street for use as the new Gillespie Police Department headquarters.
• $125,000 for miscellaneous projects, including moving a generator from the current Police Department to the Civic Center which would allow the city to use the Civic Center for emergency shelter for residents in the event of a disaster.

“It’s about $4 million all together,” Fisher told the council. “To be able to do that without having to raise water rates for consumers, it is in our best interest to move forward.”

Mensinger said repairing the leaking spillway at the New Lake is urgent and will require a major investment. Speculating about the cause of the leak, Mensinger said there may be a crack in the concrete apron that extends downward about six feet on the lake side of the spillway structure. The project will require building a temporary coffer dam to allow access to the spillway. Fisher recommended bundling together the spillway repair, water line replacement and remote read water meter project and proceeding with all three at the same time. The council voted previously to proceed with the water meter project.

In a rapid series of actions, the council voted unanimously to retain Curry and Associates to complete preliminary engineering for the three water system projects at a cost of $15,000, pay off the city’s existing bonds and apply for a $3.1 million loan through the USDA’s Rural Development program.

Fisher said the preliminary engineering document will be a requirement for the loan application. The application process also will require to set priorities for the proposed projects.

TIF FUND EXPENDITURES

A divided council approved resolutions authorizing payment of two bills related to asbestos and mold abatement at the former UCB building on Macoupin Street using Tax Increment Financing funds. Bills for work done by contractors normally are approved in bulk on a monthly basis, but bills requiring the use of TIF funds require a resolution to authorize the payment. Both projects had previously been authorized by the council.

Ald. Jan Wiedner, Colin Mussatto and Jerry Dolliger voted against a resolution to authorize payment of a $2,565 bill submitted by EnvrioLife Consulting for assessing the scope of work needed to abate mold and abestos at the former UCB building, now owned by the city. Ald. Steve Kluthe, who moved to approve the payment, voted “yes,” along with Ald. Frank Barrett, Dave Tucker and Jim Alderson. Ald. Roger Dively, voted “present.”

After the council narrowly approved payment of EnviroLife’s invoice, Treasurer Fisher addressed the council before voting on a second bill from Environmental Resources in the amount of $66,250 for abatement work at the building. Fisher noted a majority of the council approved the work, even though some council members opposed the contract.

[pullquote]There’s no reason not to pay him unless you think he did not do the job[/pullquote]“If we hire somebody to do a job and they do the job, there really shouldn’t be any debate about whether we pay him,” Fisher said. “There’s no reason not to pay him unless you think he did not do the job.”

Mussatto said his vote was “symbolic,” showing his opposition to spending money on the building.

“Why don’t we get rid of it now and stop spending money on it?” he asked.

Kluthe said he moved to pay the bill not because he favored the project but because it was incumbent upon the city to pay the bills it incurs.

“I’m not happy about this, but the work has already been done,” he said.

A portion of the ground floor has been turned over to the Illinois Coal Heritage Museum to house its exhibits, but there has been some discussion about using other parts of the building for city offices. Fisher said the additional $200,000 included in the capital improvements budget discussed earlier Monday evening does not include work already completed.

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“We’re already up to $132,000,” Weidner commented.

Brought to a vote, the second resolution authorizing payment to Environmental Resources in the amount of $66,250 from the TIF fund was approved 6-2. Weidner and Mussatto cast negative votes. Dively, Kluthe, Barrett, Alderson, Tucker and Dolliger voted yes.

“We have to pay the man,” Dolliger commented. “Otherwise, we’ll be in court.”

EXECUTIVE SESSION

No action followed a 45-minute executive session called for the purpose of discussing personnel issues. Kluthe, Dolliger and Weidner all said they had personnel issues to discuss before going behind closed doors. Kluthe is the Public Safety Committee Chair, which oversees the Police Department. Dolliger chairs the Public Works Committee.

NEW POLICE OFFICER

Early in the meeting, the council unanimously concurred with Police Chief Jared DePoppe’s recommendation to hire Mike Stephenson, Carlinville, as a full-time police officer to fill a vacancy created by the resignation of Officer Doug Hubbard, who left the force as of May 31 to accept a position with the Bunker Hill Police Department. DePoppe said Stephenson has been working for the local department as a part-time officer and has completed his Police Academy training. Originally from the Raymond area, Stephenson also has held part-time police positions in Carlinville, Bunker Hill and Girard.

“We had $4,500 in overtime last month,” Treasurer Fisher commented before the vote, “so I recommend we move forward (with hiring Stephenson) quickly.”

COPIER CONTRACT

Council members voted unanimously to upgrade to a Sharp MX-M453N color photocopying machine and enter into a five-year contract at a cost of $140 per month to lease the equipment. The lease includes up to 72,000 copies per year. The current lease does not expire until October, but Ald. Weidner reported that by renewing the lease now, the city would realize a savings of $28 per month on the cost.

LITTLE DOG DONATION

On a motion by Ald. Tucker, the council voted 7-1 to donate $100 to the Coal Country Sports Complex organization. A representative of the group appeared before the council last month to seek permission to solicit funds on street corners one day in June and to announce a fireworks show planned for the Little Dog Soccer Fields.

“I think we were remiss at our last meeting in not making a donation,” Ald. Alderson said. Tucker agreed and made the motion to offer the donation, but Ald. Kluthe questioned making a donation to an organization that charges youngsters to participate. Admission for spectators to watch soccer matches is free.

“They do a lot of work out there,” Alderson said, “and they have some long range plans. You see them all the time up at Randy’s Market selling pork chops to raise money.”

Tucker’s motion, seconded by Dively, was approved with Kluthe casting the sole negative vote.

REVOLVING LOAN FUND

The council heard briefly from Doug Bauschlicher of Mount Olive, who has leased Chief’s Grill, located adjacent to Chief’s II Lounge. Bauschlicher said he wanted to look into the possibility of applying for a loan from the city’s Revolving Economic Development Fund to subsidize part of the $7,500 start-up costs he needs to reopen the restaurant. Fisher told Bauschlicher the loan requirements include a provision that he create at least one job for every $10,000 the city loans, and that he has sources for $3 to match every $1 the city might loan him. He suggested that Bauschlicher come to City Hall later and get a loan application from the City Clerk. If Bauschlicher opts to pursue a city loan, Fisher said the loan committee will review the loan application and make a determination.

BOBCAT REPAIRS

Ald. Dolliger reported to the council that the Bobcat used by the Public Works Department currently is out of service and has been taken in for repairs in St. Louis, Mo. He said the city has spent about $9,000 in repairs for the machine, which is about nine years old, this year. Dolliger said renting a replacement John Deere Bobcat costs the city about $1,000 per week, but there is a possibility of leasing a Bobcat for $1,000 per month on a two-year lease. The cost of a new machine to replace the old one is estimated at $100,000.

Mayor John Hicks noted that leasing a Bobcat would give the city two Bobcats to use when needed, but he questioned whether existing attachments would be compatible with the leased unit. He directed Dolliger to research the issue and return to the council next month with additional information.

Fisher noted that a $100,000 expenditure is not included in the current city budget and leasing a machine at $12,000 per year “gives us two years to decide what we want to do as far as a long-term replacement.”

OTHER ACTION:

In other action, the council:

• Approved a lake lot lease transfer at No. 3 Pump House Road to Gerald Boyles, Gillespie.
• Declared 15 bicycles held at the city garage as surplus property and agreed to sell them as scrap.
• Approved a resolution to amend the city building permit ordinance, setting fees at $25 for the first $6,000 worth of construction, plus $2 for each $1,000 in excess of $6,000.

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