Members of the Benld City Council on Monday night approved a $1.9 million appropriation ordinance for the current fiscal year, accepted a certificate of substantial completion for the Eiler Avenue Water Main Project, and approved a tax abatement ordinance in regard to water and sewer bonds issued by the city.
The new appropriation ordinance is “pretty much right down the line with last year’s,” Mayor Jeff Hendricks told the council. “I don’t foresee any significant increase in income, so there’s no real increase in spending.”
Totaling $1,905,092, the appropriation sets spending ceilings for specific line items for the fiscal year ending April 30, 2012. The appropriation is not a budgetary document, but does set the maximum amount the city can spend from any one fund.
Broken down by fund, the appropriation ordinance sets maximum spending levels as follows: Administration, $220,355; Police Department, $281,180; Maintenance Department, $136,147; City Property, $67,180; ESDA, $1,000; Band, $3,000; Audit, $10,507; Tort and Liability, $10,349; Social Security, $30,862; Workers Compensation, $10,349; Recreation and Park Development, $5,000; Cemetery, $5,000; Library, $70,503; Unemployment Compensation, $5,121; Purchase and Lease, $25,512; Motor Fuel Tax, $50,000; Water Department, $377,000; Sewer Department, $179,000; Alternate Bond and Interest Fund, $117,000; Water Depreciation Fund, $100,000; and Infrastructure Expenditures, $200,000.
After hearing a report from Jesse Maynard of Henry, Meisenheimer and Gende Consulting Engineers, Carlyle, the council voted to accept a “certificate of substantial completion” on the Eilers Avenue water main project and authorized payment to Korte & Luitjohan, the general contractor responsible for the work.
Maynard said the new water main “is in and is working.” The only items left to be completed, he said, are grading, seeding and road repair work.
On Maynard‘s recommendation, the council authorized payment to the contractor, pending delivery of final paperwork. Maynard said the entire contract was valued at $163,000, $54,000 of which has already been paid. The council authorized paying the remainder of the contact, less a 10 percent retainage and the estimated cost of work remaining to be done.
In a related matter, the council approved a $500 amendment to HMG’s contract to pay for preparation of a grant application to make repairs to a damaged storm sewer.
Maynard said the sewer project could be considered a “water project” under terms of HMG’s contract, which will allow the city to pay for the grant application work with grant funds.
Responding to a question from Ald. Peyton Bernot, Maynard said HMG is asking the city to pay $10,700 of its current fee from the city’s general fund because terms of the grant preclude the firm from receiving full payment from proceeds of the grant. He said the original grant was for installation of a transmission line between Gillespie and Benld, and that a portion of that grant was set aside for engineering fees. However, the city used all of the grant to pay the general contractor.
A second grant for the Eiler Avenue project has a limit on the amount that can be spent for engineering services. HMG’s total fee for the transmission line and the Eiler Avenue project exceeds that ceiling, necessitating the city to pay a portion of the bill from its general fund.
On the recommendation of City Attorney Rick Verticchio, the council approved an ordinance to abate the portion of property taxes collected to retire $75,375 in revenue bonds for water and sewer improvements. Verticchio said the city has repaid the bonds with water and sewer department revenues. One of the conditions of the bond issue was that the city impose a levy for repaying the bonds in the event water and sewer department revenues were not sufficient.
While the city never collected the tax levy, the levy itself remained on record with the County Clerk’s office.
Verticchio said past practice had been for municipalities to simply tell the County Clerk they did not intend to collect the levy. Newly elected County Clerk Pete Duncan, however, had advised Verticchio that the levy needed to be formally abated.
“Pete (Duncan) says that unless we formally abate the tax, he’s going to extend it,” Verticchio said.
The council tabled approval of a new contract for rental of city facilities, including the Civic Center and City Park. City Property Chairman Mickey Robinson presented the revised contract, but Mayor Hendricks said he still had questions about insurance requirements for renters who serve alcohol.
“I’m not out to make this a money-maker for the city,” Hendricks said. “These are public facilities and I think our citizens should have access to them. On the other hand, the air condition it doesn’t run for free. We need to recoup some of our costs.”
Robinson said one aspect of the proposed rental policy would require rental fees to be split between the city’s general fund and a special fund to be used for repair and maintenance of the facilities.
Council members unanimously voted to authorize the Benld Public Library Board to seek bids for a contractor to begin removing damaged portions of the library’s parking lot to determine the cause of the damage. The library has sustained significant structural damage in the last few years. Cracks have appeared in interior and exterior walls, and part of the parking lot has sunk. So far, the city’s insurance carrier has refused to cover the damage because the library boar has been unable to conclusively attribute the damage to mine subsidence.
Emmlee Robinson, Library Board Secretary, told the council the board has received a letter from Brian Hummert with Henry, Meisenheimer and Gende that discusses possible causes of the damage. In his assessment, the damage may be due to the 12-inch footings originally installed for the building may not be big enough, soil settlement due to mine subsidence or other factors, or failure of a piping system to drain excess water from the site.
“They’re not totally discounting the possibility of mine subsidence,” Robinson said.
She said Hummert suggested “carefully removing” the damaged portion of the parking lot to ascertain the cause of the damage. “We would like to get started on that as soon as possible,” she said.
“It’s a nice building and we don’t want to see it continue to go down, down, down,” said Mary Ann Scopel, City Treasurer and a member of the Library Board.
“Yes,” Hendricks agreed. ‘We had two nice buildings in town, but one of them has already fallen down.”
Written and Contributed by David Ambrose
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