City Council - Regular Meeting

Aler person Evans I Hurt Barnes here Swanson here. Parker Pulis here. Healey here and Mayor Harris present. Okay. Do that. Yeah. Sure. right now. Okay. So, in reference to autop person Hurt being remote, uh before we begin, clerk. Yeah.

Um Alderman Hurt gave notice that he would not be physically present for the meeting tonight due to illness and made a request to participate remotely under five 120 section 7 attendance by a means other than physical presence. Alderman Hurt may attend remotely, but we will need a motion allowing him to attend remotely, followed by a second and a voice vote. Second. I have a first and a second. Uh, all in favor say I. I. Okay. All opposed.

Okay. Okay. Would everybody please stand for the pledge of allegiance? And after that, please remain standing for a moment of silence. I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all.

Thank you. Okay. Agenda item five, public comment.

Thank you, sir. Okay. The first name on the list, Nick Hammond.

[snorts]

Hi, my name is Nick Hammond. I live at 430126th Avenue, Rock Island. And I prepared a statement about the the water bill increase that's on the agenda. From what I've seen, it looks like our water bill here in Rock Island is higher than what folks pay in nearby Quad City towns. Now, I know our bill includes some extra things like optional insurance to cover pipes and a fee to help keep our roads in good shape. Those extras might be helpful, but it makes it tough for everyday people to figure out what they're really paying just for water itself. On top of that, many people in our community have been concerned about how inconsistent the water bills have been lately. Some are seeing big jumps from month to month without clear explanations. This unpredictability is causing a lot of stress, especially for families already trying to manage tight budgets. Because of that, I'm asking the council to hold off on raising the water rates tonight. We need a clear and honest comparison with our neighbors. A simple sideby-side look at what everyone can understand. If it turns out our water costs more, then we deserve to know why and what extra benefits we are getting. Or else we need a plan to lower those costs to match the rest of the Quad Cities. Our community is already feeling the pinch and this is about coming together to make sure every dollar we spend on water makes sense and is fair for all of us. Thank you for listening.

Thank you, sir. Agenda item six, update Rock Island. [clears throat] Update Rock Island. Get on board the Polar Express for family fun at the Rock Island Library this Saturday. The Polar Express Chris Vanberg captivating 1985 book about a magical train ride to the North Pole turns 40 years old this year. To celebrate, the Rock Island Public Library is offering a free family event on Saturday, December 13th. The free dropin party for families takes place from 10:00 a.m. to 1:00 p.m. at the Rock Island Downtown Library, 4019th Street. The fund includes cocoa, kid-friendly crafts, and a selfie picture station. All children will receive a free bell ornament. The event The event is free, open to all, and does not require registration. The Martin Luther King Community Center is pleased to announce that nominations and applications for the annual awards and scholarships are now open. The deadline for all submissions is December 19th, 2025. I have a dream award. Nominate a Rock Island citizen who has demonstrated outstanding community service and made a lasting impact on the community. Youth expression contest. Students are invited to submit a poem, spoken word piece, essay, short story, or short skit based on the theme, a time for vigorous and positive change. ML ML Lockhart scholarship now open for Rock Island High School seniors pursuing higher education. Commit to diversity achievement scholarship in partnership with Blackhawk College. This two-year academic scholarship supports the Rock Island Milin School District student committed to diversity and continuing their education. More information can be found on the MLK Center's website or by calling the center. Thank you.

Okay. Agenda item seven. We will now close the regular meeting and open the public hearing. Does anyone in the audience wish to speak? Seeing none, we will close the public hearing and reconvene our normal order of business. Agenda item eight. A, an ordinance amending chapter 8, article 23, establishing a social services license, second reading. Motion to consider the ordinance.

I have a first and a second. Is there any discussion? Uh yes, just a comment that I really appreciate the number of amendments that are listed here to reduce the restrictions. However, I still would like to see the removal of the 1,00 ft requirement. So, I would like to make a motion to eliminate that 1,00 ft requirement that's in section 8575. Okay. There's a motion to amend on the table. Is there a second? Second.

Right. First and second. So, this vote would be voting on Linda's amendment to this, which would be um removing the uh distance requirement. So, we'd vote on the amendment first. Okay. Is there any discussion? So, that means that an I vote is to remove the amendment. An I vote would be to remove the distance requirement. Any more discussion? Clerk, please call the role. Older person hurt. No. Barnes, I Swanson, no.

Pulis, no. Healey, no. and Evans. I Okay, so that motion fails. So, we're back to the underlying motion. And um the city clerk just uh notified me. It actually should be the motion should be to pass the ordinance. We're at the second reading. So, could I have um someone make that motion instead of the consider the ordinance? Motion to pass the ordinance. I have a first and a second. Is there any discussion? Seeing none, clerk, please call the role. Alder person hurt I. Barnes I. Swanson I.

Pulis I. Healey I. And Evans. My still ns are still nays. Motion carries. Yeah. Okay. Agenda item C, excuse me, B. Agenda item B, an ordinance amending chapter 8, article 23, section 8-577A, occupancy limits. Second reading. Um, the motion would be to pass the ordinance. Motion to pass the ordinance. Second. I have a first and a second. Is there any discussion?

Clerk, please call the role. Older person hurt. I Barnes I Swanson I Pulis I Healey I and Evans nay. Motion carries. Agenda item C. An ordinance amending chapter 8 article 23 section 8-577 by adding a new provision O. Social work and therapy services second reading. Again the motion um that's recommended is to pass the ordinance. Ask your second. I have a first and a second. Is there any discussion? Roll call, please. Alder person hurt. I Barnes.

No. Swanson. I Healey. Hi. And Evans. No. Agenda item D. Tax. Motion to adopt tax abatement resolutions A through M as recommended and direct the finance director to file the resolutions with the county clerk. Second. I have a first and a second. Is there any discussion? [snorts] Roll call, please. All the person hurt. I. Barnes. I. Swanson. I. Hulis. I. Healey.

I. And Evans. N. Agenda item nine, a report from the finance department regarding the ordinance adopting the budget for the fiscal year beginning January 1st, 2026 and ending December 31st, 2026. First reading. Motion to consider the second. We have a first and a second. Is there any discussion? Roll call, please. Alder person hurt. Hello. I do I wanted something for discussion. I'm sorry I had to unmute. Go ahead.

Um, so to be clear on the professional development for IML* 3, is that what is in the line item budget to approve $4,500? What's listed as IML* 3? That was removing that from the budget. It's removing it. Okay. Yes. Okay. Just to clarify then. Okay. Thank you. Any more discussion?

Yes. I wanted to follow up on that. Um just kind of going back from two weeks ago uh with the discussion on the professional development and I am okay with removing that but in the whole scheme of things the city manager still has the ability to make budget adjustments throughout the year. So if he decides in discussions with a council member that it's fitting to um spend additional funds for professional development again he has that authority you know within his perimeters and then under $3,000 just in looking at that again I kind of disagree with putting it all in um representation but I asked if the finance dire finance department thinks that is okay to code professional development as representation or would you consider doing budget adjustments throughout the year? We could do either. We just took direction from city council at the last meeting. Um I believe Alderman Parker asked if there was a consensus to merge those two accounts and it sounded like there was. So we took that direction and merged the two accounts. Typically, if it's if there's two line items, 1500 is representation and 1500 is professional development, we can transfer funding back and forth between the two as needed by doing just regular budget transfers. So, if you're asking me as the finance director, if I would rather have it in professional development, it's easier for the finance department to track it if it's in professional development and it's coded as professional development, but I take my direction from city council. So, if it's a consensus to leave it as one line, then we thought it would be best to leave it in the representation line and merge merge the

two based on direction from council at the last meeting. And I understand that, but then again, from a finance perspective, I think we want to make sure that we're coding transactions correctly, you know. So, I would be comfortable that if I did professional development, I want to see it coded as professional development. So through a budget adjustment, yeah, that we can certainly do that. And I I think based on prior discussion, we'll need to bring back some revisions to the council spending policy to make it consistent.

Okay. And then lastly, this year I'm going to vote no on the budget, approving the budget, just because I have issues as far as not having um what was it a budget workshop to really discuss the budget in more detail with council members. And then I also kind of disapprove with the usage of general funds to support other funds uh within the city. So for those reasons, I'll vote no this year.

Any more discussion? Yes, please. Um, not to be the dead forest here, but c can I get some clarification from city manager about this the that you have discretion to pull other fun even though so we're pulling this $4,500 out of there. There's a saying that does that basically I guess is not the point of taking this out of there and having an ordinance on all the person spending if we're just going to allow the city manager to make exceptions.

There's current there's currently a policy that defines what authority I have to make changes. Uh generally speaking, it's within a department, I can make adjustments during the year. U just like we have certain spending levels that have to come back to the council as well. But having said that, [laughter] my job is always to to do what's consistent with the desire of the council. So, and if it's clearly uh directed to me that the council spinning spending is going to be organized in a certain fashion, I'll I'll abide by that. And I think that relates to bringing the policy back so that it better reflects what the council wants and we can we can address that uh you know during that process as well in terms of what authority I have. But uh if the council makes it clear to me that they want that money spent in a certain way, I'm certainly going to follow that. Okay, I have one more. I'm sorry. Go ahead.

Go ahead. Go ahead. I'll let you conclude then I need to respond. Okay. Um I have there was also the mention of the $25,000 moving from ARPA to general for the homeless shelter. Is that correct? That is correct. based on the the direction that we were given during the presentation, we included $25,000 from ARPA to the general fund.

So there's no I guess my problem I guess the thing I the problem I have with that is is that money if that's what's taking place does that stay in the city of Rock Island or or is that just kind of a a general $25,000 that what if a homeless shelter goes in Molen? Does that mean Rock Island has an obligation to give them that 25,000 or does it stay here within our own city? Well, any agreements regarding the emergency homeless shelter would go before council. It's just a placeholder line item in the budget. So, if we have an agreement with a various professional entity that would go before council for approval, whether it's in Rock Island or in Molen.

Okay. Just clarifying. Thank you. To be clear on that. uh and he said that it was an obligation uh not necessarily an obligation but the opportunity. Uh is that a better way to word it?

Yeah, that's correct. We we won't spend that money on emergency shelter unless it's uh you know under agreement that would come back to the council for approval. I still would like to state that um as being elected into the first ward, my responsibility first and foremost is to the residents of the first ward. And it seems mighty interesting that another councilman wants to explain how I'm supposed to be able to adequately do that job. Um, I do understand that there's a lot of other expenditures that come with being an alderman. Um, including the health insurance, which at this point I don't have and haven't carried this year. Um, when you tell me that the salary of this job is $42 a month and then I have another colleague who wants to state that I'm not supposed to be able to go and get training to adequately represent the residents of my ward. I have a problem that he can sit and make that statement and push for it to be consistent within the city of Rock Island. My job overall is to do the best I can for the residents of the first ward and then the city of Rock Island as a whole. And since I've been here in the last six almost seven months, I've done that job to the best of my ability, which may have allowed me to have to have expenditures that went beyond what my elected salary is or my expenses when it comes to representing this city. Um, I find that I'm totally in disagreement in the fact of how this has been laid out and done and I just want it noted in the record.

Thank you. Any more discussion? Yeah, I guess I would like to add to that if there's a council member who's saying that they do not uh do uh use their professional development, then that needs to be removed from from the line item from the budget. I mean, that's the the procedure for doing budgets. If you're not using it, then it should not be in that line item.

Is that noted? I I would disagree with that because if if I don't know about a class that is coming up in uh late December and I have not used the the funds allocated to me for uh for the education, why would I take it out from the uh the budget? We can always take it out after the fact. If we didn't use it, we didn't use it. I had this problem when I was uh one of the uh division heads in the police department several years and then they said, "Well, if you have to use it, we don't have to use it, but if you don't use it and it's still there and you come back next year as an older person, I would take a lot more um a more serious look saying this individual is is very uh careful about how he spends his money, about how he not his money, but the money, the city's money. And if he's careful with that budget, why would I why would I take that money away? Because you don't know what's going to come up next week. I don't. Unless, you know, somebody else here has a crystal ball and I if if I do if there is one on my desk, I can't find it. So, no disrespect to Ted. Well, as you explained, you don't know. But if someone knows for certain, I will not be using [clears throat] professional de going to professional development. There's a process for actually for budgeting for professional developments. Departments have to let uh the finance department, city manager know what type of professional developments they plan to attend. So, it's budgeted accordingly. So again, if there's no intention or you know for sure I'm not going to use that money, then it needs to go back into the overall general fund and not be budgeted.

Well, this is directed towards me. So if it makes you feel more comfortable, you can take all my money as long as I'm on an alderman because I'm never going to use it and I have not. So if that would make you feel more comfortable, go for it.

I was just responding to a comment from a couple of weeks ago. Just wanted to clarify and you know in in all fairness like uh Alderman Evans was saying our budgets vary. Some of some of our budgets you know as city council may be around 10,000. For those like myself I take the health insurance. So mine is going to be higher. So we need to look at the whole pie not just a slice when we're talking about what we're spending and what we're not spending. Then I would just like to make it clear that I would not want any of the money that I would use spent on anyone else. So noted.

Any more discussion? Roll call, please. Alder person hurt. I. Barnes. No. Swanson. I. Pulis. I. Healey. I. And Evans. No. Motion carries. Agenda item B, report from the finance department regarding an ordinance for the levy assessment and collection of property taxes for the city of Rock Island for the fiscal year beginning January 1st, 2026 and ending December 31st, 2026. First reading to consider the ordinance. Second. There's been a first and a second. Is there any discussion?

Clerk, please call the role. Alder person hurt. Hi. Barnes. Hi. Swanson. Hi. Hulis. Hi. Healey. Hi. And Evans. I. Agenda item C. Report from the finance department regarding an ordinance for the property tax levy of the downtown special services area SSA providing $310,683 in property taxes for the collection in the fiscal year beginning January 1st, 2026 and ending December 31st, 2026. First reading motion to consider the ordinance. There's been a first and a second. Is there any discussion? Roll call, please. Alder person hurt.

I Barnes I Swanson I Pulis I Healey I and Evans I. Agenda item D, report from the public works department regarding a refuge service rate increase of 12% to take effect on January 1st, 2026. First reading move to approve the rate increase and consider the ordinance. Second. There's been a first and a second. Is there any discussion? Yeah, I do. I'm sorry. Go ahead.

Go ahead. I was just going to ask our public works director to come up and explain the increase if you would please or or from your from your share there. I mean you that's fine.

Yeah, I'm guessing there's probably questions on the next several items for rate increases and I can go ahead and address the refuge rate increase now and the uh water wastewater and storm water. I prepared just a quick summary that I'd like to read from and then if there's any questions after that, please feel free to to ask questions. Um, so as public works director, my primary responsibility is ensuring that Rock Island's water, wastewater, and storm water systems remain reliable, financially stable, stable, and capable of serving our residents well into the future. Much of our infrastructure is aging and requires planned replacement. And these rate adjustments allow us to address EPA mandates and other critical needs before they become costly emergencies. While we monitor rates in neighboring cities, it is not a true applesto apples comparison. Each system has different infrastructure conditions, regulatory requirements, debt levels, reserves, building structures, and population growth. Our obligation is to maintain Rock Island system based on our own needs and long-term sustainability. The proposed increase of 5 a.5% annually for water and wastewater and 40 cents per month monthly increase for storm water result in a typical household increase of about $1347 per quarter or $54 per year. The impacts to the customers from the 12% increase for refues equals $132 per month or $15.84 per year. This increase is the first increase for refues since 2018. These measured adjustments help us avoid larger rate spikes in the future and support responsible capital pling planning. We aim to keep our rates broadly consistent with other communities. My first obligation is to ensure that our system is financially sustainable and that our infrastructure is properly maintained and replaced when needed and that we are meeting regulatory obligations. This mean rate adjustments may be required even if our current rates appear similar, lower or even higher than some other cities. I would also like to mention that Rock

Island is not alone in facing raising rising rates and aging infrastructure. Other communities and private water providers are also facing the same challenges. Our American Water just increased water rates across the river by 38% this year. East Molen City Council just approved a 5-year rate increase for water, sewer, and storm water with rate increases averaging each year around 15% for sewer, 10.2% for water, 16.6% for storm water. Moling is increasing rates in 2026 and includes a 2% increase for water, storm sewer, and refues and a 6% sewer increase. Co Valley has seen a 75% increase over the past four years due to sewer upgrades being completed by the city moline. So with that, I'll take any questions.

Can you have a question? Can you talk about the two rate studies that were done? I think one in 2020 and the other recently that really is the reason the rates go up about 5% every year or has since 2020 or 20.

Yeah. Late in November of 2020, um Stanley Consultants did a presentation to city council um going through our entire rate structure um looking at water consumption volumes, making sure that revenues met expenses, and then that came back to city council for approval after several adjustments um in July of 2021. Um and that was our first 5-year rate increase. Uh that again was a 5 and a half percent increase for water over the 5-year period, a four and a half percent increase for sewer over that 5-year period, and a 34 34 cents per month increase for storm water over the 5-year period. Um we are now ending that increase um that 5-year increase in 2025 and council approved another rate review in 2024 um to look at the 2025 and future years. And this is a result of that that uh most recent rate study um where we're proposing the race tonight.

Do we have any knowledge what uh we talk about the our infrastructure being aging? Do we have any knowledge of you know where are the worst spots that we know where the the they're going to need to be replaced in the very near future? I mean, as homes are built, the age of that infrastructure is typically near the age of the home. Um, obviously in the West End where older homes are, the the aging infrastructure is older than most areas. Um, so but it varies widely. Um, I can say that a lot of our in infrastructure is from 1920s and up. One significant example is in water. The water dumps need to be replaced. And what is that? $35 million project, $40 million.

Yeah, we um start we're currently in the works. We uh C city council approved a $1.5 million design and engineering um with CDM Smith that is for the water domes project. We've been talking about this for several years. Um they're currently doing the design work that started in May. The project is slated to start in 2027 and it is a $35 million upgrade. Um we'll be upgrading a 1938 um uh storage system for our water. Um so it's it's going on about 88 years old and uh is is a mandate by the EPA to replace that. Part of this rate structure that's in front of you tonight is to uh we'll receive lowinterest loans through the EPA to pay for those projects through SRF funding. Part of receiving that lowinterest loan and that funding is showing the EPA that we can pay that money back. And be able to pay that money back, you have to have a rate structure in front of you um to demonstrate that to the EPA. So, if we don't have these rates set to where we can pay back that that funding, um we will not receive that funding from the EPA. So, that's that's that's being looked at with um we have also have another project with Mil Street Dig Replacement Project. That's about a $14 million project. The project's ready, designed, ready to go. We're just waiting on the SRF funding. We submitted an application request to the EPA to fund that project saying that we would fund that project and we had the rate structures set to to fund that. Um, so that's it's it's very important that these funds are or these rates are are modeled in in such a way to fund these projects. These are not just projects that should be done. They're they're they're I wouldn't say emergency project, but they're critical projects because they handle all of the inflow coming in from from wastewater. All of our distribution for water is is all dependent on these. So these are these are big key component projects for the city. We also make every effort to manage our cost to keep those low for operations. You'll remember last year we

eliminated a position from the refugees fund, but each of these funds are enterprise funds and the revenue from the fees is what what supports them. Uh should note that the refuge fund and the sewer fund also have negative fund balances. So we need to resolve those as well.

My concern and I appreciate all of the updates that they've given to the residents, but my concern is when you're telling me that people are struggling to pay their bills right now. We've had inconsistencies with what's been going on with the water directly, just with the water bill itself. As you look at the water bill, there are so many different line items on the water bill that people don't know whether they're coming or going right now. And so I would love to have us actually put this to a hold and make sure that our residents really understand where their water bills are actually what's happening with them. I'm getting phone calls on a consistent basis about these water bills and still here we're adding more and more expenses to the water bills when we haven't got a hold on what's going on now. We need changes with this system one way or the other. And so for me right now, I would ask that we table this or my vote would be no.

Is it a motion to table or is it a motion to postpone to a certain time? I would say a motion to table. Okay, so motion to table is not debatable. We'll need a second. Wait, actually, hold on. Let me make sure. [clears throat] Yeah, we do need a second for the to motion to table. Is there a second?

Okay, motion fails. So, we go back to the underlying motion. I do agree with you, Alderman Evans. I'm I am personally I am okay with the the trash. Um I think the water, the sewer, and the storm water, if you look going four years out, you're talking a 22% increase on each of them. And if I did the math right, the storm water was about 6 and a half%. So you're talking roughly 70% over four years. Um that is crazy. I mean, I know we need it. I understand where we're coming from. Um I don't know if we can look at this yeartoyear if that is something but to arbitrarily say right now we're going to raise this each section four and a half five and a half six and a half% um I I really personally can't get on board with that and I apologize for that. But um our residents and myself I genuinely say something's wrong with my water um bill. It's it's been insane the last 12 months. So, um you know, I would look for another way to go down this path. That's just me personally. So, with this uh with the Healey's comments, this is something that we could pass now and then change it for next year. Is that correct? Our next year's budget. We have to do something. We can't just kick the can down the road. We do that and we're we're going to end up into a financial burden that uh I certainly as a citizen of Rock Island don't want to have to look at five years from now saying we had the opportunity. We didn't want to spend the whole take take the big jump, but we need to start moving forward. In response to your question, yes. While

these are um written as four-year um increases, um you're always able to bring forth a new motion to amend a current ordinance in place. So, you're always able to make those changes. Um it would just have to I just wanted I wanted everybody else to know it.

No problem. My only concern is still once we get to, as people keep saying, the first ward, people are already struggling enough to pay their bills as it is. And there are so many different fees that are added into um the water bill, even the interest if you decide to spread it out. People are struggling to pay their bills right now. We got some of the worst streets in the city of Rock Island. I mean, when do the first ward have to stop just taking it and feeling that there's nothing they can do about it?

I understand what you're saying, but I respectfully disagree that the first w is not the only one that isn't facing that issue. Uh the sixth ward is uh I've seen some places on the seventh ward that has continual problems with uh their water water systems. Uh so again, I respect what you're saying. I disagree that it's just the first ward. And so we need to do something. We need to start moving forward instead of waiting back and now we have instead of a $30 million project, we've got a $50 million project. And what do we do then? I don't like to I don't like I I pay taxes, too. And I don't like to have to do this, but we have to do something to move forward so that we're not faced with even a bigger problem five years from now.

I respect that. Alderman Pulis, the problem I still have is where does the money come from?

Well, yeah. One thing you have to remember is water fund, street fund or sewer fund doesn't have anything to do with streets. water fund, sewer fund, refuge fund, those are funded entirely by fees related to those uh related to those funds. And and the these rates are put together uh through a very methodical uh uh process. And uh like I said, we try to keep them as low as we can, but the city we we we're faced with the same pressures that people are faced with rising costs going up for personnel, cost going up for s goods and services and electricity and you know, so you got to factor that into it too. Uh that when you look at the increased cost just for some of those things, that's a good portion of the increases we're recommending. And you also have to prepare for the future. the best time to start putting raising, you know, collecting revenue to do future projects is is right now. If you put off raising rates, you're going to find out that they're going to have to go up higher in the future. It's just still on the backs of the residents. And we've got to find a way to actually get economic development in the city of Rock Island so that we can remove this burden off of the residents of the city of Rock Island.

Yeah. But just again to reiterate, water fund doesn't have anything to do with economic development. No taxes go to the water fund. is funded entirely through the rates. I'd also add that without water and sewer, you don't have any economic development.

And I'd like to add to that, I mean, we don't want to go down the path that other cities have gone to where you have contaminated water. I mean, I don't I don't think that we are being extravagant on our water charges. I mean, we went through a big huge discussion several years ago about selling our water to American Water and the public very vocally spoke that they did not want to do that and that is fine. We agreed at that point that the city would maintain it, but we were also very clear at that time, the city of Rock Island maintains its water supply. We pay for our water supply. Molen doesn't pay for us. No one else pays for us. We kept it inhouse because we wanted to control the supply of water, the quality of water, and to control the increases to the water. I mean, American Water, you can go look at what their rate increases are, and I can tell you they're larger than 5.5% every year. So, that was one of the things that we promised the city of Rock Island, the residents of Rock Island, that we would take care of keeping the water inhouse. We would try to maintain keeping the increases low, but there were going to be increases because we have an aging infrastructure and we don't want to get to the point where we have a city with contaminated water and then what are we going to do? I would add that unfortunately that is true. You know, as a resident, I've seen my bills go up and I'm looking at other and as a retiree. So, I'm looking at how can I what can I do? Do I discontinue my recycling? Do I remove the um insurance? So, I am really looking at those options because uh based on my experience in finance um you know the these increases are

necessary in order to pay for those expenses. So, as much as I don't like to see the in increases um the water funds, wastewater, you know, that's the only support that they have. So, my other question, could we consider just for relief, maybe looking at that 5% late fee? Could we kind of maybe look at that and consider removing that? How would that affect uh the revenue that that brings in? But it at least it would give residents some relief if we could do that.

Yeah, we could certainly do that. And we've prepared and are going to bring forward uh a water forgiveness plan. So some of these folks who have unnec unusually large bills due to leaks or whatever would give some relief to to those accounts as well uh to help folks. But we can certainly look at the late fees. Any more discussion? Could we Can we postpone this item till the la the last meeting in December for further discussion?

So, there's a motion to postpone on the table. Again, the last meeting December is going to just be next Monday. So, you're postponing it for a week. Um, do we have do we have a second on that motion to postpone? I guess my question would be with staff, what's the time that they need in order to put this in place because they do need to have time to make changes in the computer systems and everything. So that we would still need a second on the motion to postpone before we discuss that. Are you second? Is anyone seconding the motion to postpone? Okay. So that motion fails. Sorry, I don't I don't want to cut you off, Alderman Bard. So if you'll now we're going back to our underlying motion. if you'll repeat that question.

Go ahead. Yes. I was just wondering about the turnaround time that staff needs to put those percentages in place and would that have you know delay in that would that have delayed starting that when it needs to be started? Well, and I think also to add to that is the timeline for the SRF funding. um because that's a significant amount of money for the city that we don't have to pay. Yeah. And we don't want to lose that.

We have already submitted the SRF applications to the state and they're currently under review. Um the Mil Street digesttor project, we have already been working with and a I'll call it an officer with the EPA to fund that project. um these projects have been in our CIP um for several years now and so we were moving forward as as um as they were going to to move forward. So um yeah, I I don't know if I answered your question, but I as far as the timeline to implement the the uh rate structure, I I would um turn it over to finance to answer that question.

It takes a couple of weeks to enter the new rates into the system. So depending on when council approves it, if council approves it on first reading tonight and then second reading, we'll start immediately trying to get the rates into the system um before the first billing in January.

Any Go ahead. Were those um what you proposed to the SRF, was that based on a four-year projection or just one year at a time?

It's based off the rate model tonight and in previous rate models. Um, so it's it the loan the the SRF loan would be a 20-year um loan for the each project. That's typically how the rate structure is for a low interest loan through the EPA. They are actually increasing that to 30-year loans, but that's something that we're not we wouldn't be considering. Going back to my question earlier, and I hate to to stretch this out, but going back to my question earlier, comment earlier, if next year we say that we just can't do it this year, does that adversely affect our standing uh on those loans?

Yes, we have to demonstrate that we're going to be able to pay back the loan once we sign and and agree to that that loan structure. We're we're committed. So if if we pull back from that, we're committed to whatever funding we received.

And again, we we're we're moving forward with these projects. Currently, we've already agreed and and signed a contract with engineering consultants for the water domes alone of a million and a half dollars. So we've we've had neighborhood meetings for these projects. I mean, I um these projects are and the water domes is the EPA mandate. We have no there's no question about that. I mean, we have to do that project. So whether you approve the rates or not is is one question, but whether we do the project and provide quality drinking water to our residents, that's that's the real question.

So, uh, am I getting this right? If we if we approve the rate increase tonight and and and that allowed the the funding to go through, once we sign that contract for the funding, it would be out of our control to make amendments next year for the rates.

You can make amendments as long as those those amendments pay for the amount of money we're receiving through the loan. So, but again, the the current rates that are in front of you tonight are have that project cost in those and are are the the rate increases are structured for those projects. So, um we have we have a good estimated cost for those projects and that's what the rate increases are based on.

Go ahead. That makes perfectly good sense. We're we're going to pay for this one way or the other. Yeah. I mean that that's exactly right. It's just going to depend on are we going to try to kick this down and and give it to somebody else who may want to come to Rock Island and say, "Well, wait a minute. They've got a uh now the bill is only 25 million. Am I willing to foot that bill or sign on?" Because that's what we're doing. We live in Rock Island. We're signing on to the contract one way or the other.

Yeah. These are these are mandated projects. We don't they're not like a water man in somebody's neighborhood. We say we should probably replace that and we can push that off a few years. We have that that opportunity with our current system and owning our current infrastructure. Um but these projects that we're talking about for the big price tags of multi-million dollars, we don't have that option. These are key components to distribution and sewer collection that have to be uh replaced. So maybe I missed it, but explain this quickly. If if it's a 20year loan, are our rates determined for 20 years or just the next fouryear block?

So, in this in this rate model, it has revenue coming in of $30 million and expense going out, but then the the the the uh payment back to the EPA is a completely separate thing. We're just receiving the the money from the from the uh EPA and then we're expending that over the two years it takes to get the project completed and then we're paying that back. But the rate model and the revenue that we would be bringing in will cover that debt for that 20 years. So we we would be pretty much held into that rate model. Pretty much the rate model for the next 20 years would be out of council control

for the next five for the next four years that's in front of you. that rate model is locked in. I would say I would say um to pay for these projects.

When you when you get the loan, whether it's through SRF or through some kind of revenue bond, they're going to look at your rate structure and make sure it's put together in a way that adequately provides for the debt service and that you're adequately managing uh your operation. When you issue debt, there will be certain bond covenants that you have to comply with. They don't typically mandate what your rates are, but you may have some kind of like, you know, debt coverage or something like that, and you have to comply with those otherwise you're going to have a problem down the road, but they're not going to tell you what your rates have to be. But when they loan loan you the money, they're going to make sure that you you look like you know what you're doing.

So, in good faith, when are they expecting our rate to be established? When are they expecting this contract to be signed? As part of the application process, we tell them that we're going to put our our rate structure in a prop to properly align to pay back that fund money. So, that's part of our application process to them. Just like when we when the council approved our consultant to do the design work, that's another step in telling them that we're going to move forward with this project. Again, the the domes project was a EPA inspection. We were aware of the issue with the the cracked liner in one of the domes, but the summary of their report back to the back to the city was you have to replace this. We don't care how you're going to replace this, but it has to be replaced. We hired a consultant to come in and do a complete review of the domes and their recommendation is to replace

the domes in kind. So So for for you to be comfortable, what's the timeline for this application? um we've submitted it can take up to a year for to get everything back and approved, but we're getting on the Mil Street digtor project. Um we are very close to getting that approved. So if the pro if the application So pretty much we have more than the next two weeks to decide on this thing, correct?

Yeah. I mean that's that's up to the council to to make that decision. I I would say that um the longer we wait, the more costly the project. I mean, obviously two weeks, but um again, I don't see the rate models changing. Um they're set they're we're we're not getting rich off of what we're asking for from the residents. We're paying for what we have to to replace and setting the rate models there to to have enough revenue to do our capital projects. That's that's it. I mean, if you look at the refuge fund, um, that's for this budget. I think we are in the black by $6,000. We eliminated a refuge position in the budget for $80,000 savings. So, um, we're making um concessions to to be able to keep the rates lower, but it's it it can only work for so long. And we have negative fund balances um, and wastewater, refugees, storm water. Um we have a say surplus in the water currently but that's just because projects that were slated to be to be completed previously haven't been completed yet. So that's why we have that and we have other mandates coming like POS emerging contaminants lithium is now being discussed in water. All these things are coming back to us that we're going to have to um address that aren't in this rate model. So I mean it's it's it's always evolving. There's always going to be something that has to be addressed. Thank you. Any more discussion?

Can we clarify the motion here? Yeah. Yeah. I I was going to Thank you. I was going to make sure everybody was on the same page. Thank you. So, go ahead. Go ahead, Leslie. Yeah. So, we are on item D, which is talking about the refuge service rate increase of 12%. Is everybody clear? No more discussion. Clerk, please call the role. [clears throat] Alder person hurt I Barnes I Swanson I Pulis I Healey I and Evans I agenda item E

report from the public works department regarding an annual water rate increase of 5.5% to take effect on January 1st 2026 for the next four years first reading move to approve the rate increase and consider the ordinance Second. I have a first and a second. Is there any discussion? Roll call, please. Alder person hurt. I. Barnes. I. Swanson. I. Pulis. I. Healey. I. And Evans. Hi.

Agenda item F. Report from the public works department regarding an annual wastewater rate increase of 5.5% to take effect on January 1st, 2026 for the next four years. First reading [clears throat] motion to approve the rate increase and consider the ordinance. Second. I have a first and a second. Is there any discussion? Roll call, please. Alder person Hurt. I. Barnes. I. Swanson. Hi. Polus. I. Healey I and Evans I. Agenda item G

report from the public works department regarding an annual storm water rate increase to take effect on January 1st, 2026 for the next four years. First reading. Move to approve the rate increase and consider the ordinance. Second. I have a first and a second. Is there any discussion? Is there an amount on it's not on the agenda. Sorry, Linda. If you look, it's a dollar amount. There's not a percentage amount on it. It was roughly about 6 and a half%. Are you referring to the to the amount?

So, it it says 40 cents per month, and that's that's what the average resident would would see. So, that's for a medium-sized parcel, which most residents live their lot size would be that size, a medium-sized parcel. But, it does vary. It varies between 30 cents for small and up to the biggest size of 50 cents per month. So the average is 40 cents, but it's between 30 cents and 50 cents per month.

Any more discussion? Roll call, please. Alder person. I. Barnes, I. Swanson, I. Pulis, I. Healey. I. And Evans. I. Okay, we'll take a 30 second timeout. Council, residents of Rock Island, let's take a moment to wish our clerk, Amanda Torres, a happy birthday, which is tomorrow. I forgot to mention that earlier, but we're going to take right now a time out to wish her a happy birthday. Happy birthday, Amanda. We appreciate you. Thank you.

Thanks, everybody. Agenda item 10, [gasps] consent agenda items A through D. Motion to approve consent agenda items A through D. Second. I have a first and a second. Is there any discussion? Roll call, please. Alder person Hurt. I. Barnes. I. Swanson. I. Pulis. I. Keelley. Hi. And Evans. I. Agenda item 11. Um there's been a request to read um item C separately. So someone can motion to allow claims A um to allow things.

I have a first and a second. Is there any discussion? Actually I wanted D separately. Oh sorry. Yeah. So you want and not allow C and E. Yes. Second. Do I have a second? Do I have a second? Second. I have a first and a second. Is there any discussion? Roll call, please. Alder person hurt. I. Barnes I Swanson I Pulis I Healey I

and Evans I agenda item D report from the public works department regarding a pay payment five to summer Somerset Marine construction whitewater Wisconsin for the Sunset Marina dock replacement project in the amount of $544,56.95 move motion to approve the claim Second. I have a first and a second. Is there any discussion? Yes. I'm just not in support of some of the funding for the project. So, I'm going to vote no on this one. But the work has already been done. Correct.

More than likely. So, it's just That's correct. It's just a matter principle matter. Fair enough. Any more discussion? Roll call, please. Older person hurt. I. Barnes. No. Swanson. I. Pulis. I. Healey. I. And Evans. I. Agenda item 12.

A. Report from the community development department regarding an amended right of entry agreement with Carlson Brothers Incorporated. Motion to approve the amended agreement and authorize the city manager to execute the agreement. Second. There's been a first and a second. Is there any discussion? Which one are we on? Was that E? 12. 12 A. Oh, was there no Did we do E or No, [clears throat] E was um he made a motion uh A through C and E. Oh, I didn't know E was Okay. Disregard.

Okay. So, we're on 12A. Is there any discussion on 12A? Roll call, please. Alterperson Hurt. I. Barnes. I. Swanson. I. Pulis. I. Healey. I. And Evans. I. Agenda item 12B. Report from the public works department regarding bids for the landscaping contract recommending that the bid be awarded to Lmen Earthworks Davenport Iowa in the amount of $216,98622.

Motion to award the bid as recommended and authorize the city manager to execute the contract. Second. There's been a first and a second. Is there any discussion? Clerk, please call the role. Alder person hurt. Hi. Barnes I Swanson I Pulis I Healey I and Evans I. Agenda item C. Report from the public works department to extend the water service and sewer lateral repair program maintenance contract with JC Dylan Peoria Illinois in the amount of $1,50,000.

Motion to extend the contract as recommended and authorize the city manager to execute the contract documents. A second. There's been a first and a second. Any discussion? Roll call, please. Alder person Hurt. I. Barnes. I. Swanson. I. Hulis. I. Healey. I. And Evans. I. Agenda item 13. A. Report from the community development department regarding approval of an amendment to the community development block grant program manual regarding Build America by America Act. Motion to approve the amendments as recommended. Second.

There's been a first and a second. Is there any discussion? Clerk, please call the role. Alder person Hurt. I. Barnes. I. Swanson. I. Pulis. I. Healey. I. And Evans. I. Agenda item B. Report for the community development department regarding amendments to the housing rehabilitation program policies and procedures. Motion to approve the recommendation handbook. Second. There's been a first and a second. Any discussion? Roll call, please. All the person hurt. I. Barnes. I. Swanson. I. Pulis. I. Healey. I.

And Evans. I. And that's rehabilitation. Repeat that. I didn't hear I did the right one. That's fine. Okay. I was just correcting my motion. Okay. Agenda item C. Report for the community development department regarding approval of the rehabilitation handbook. Oh, that is where Yeah, there you go. I'm I'm all over the place. Motion to approve the rehabilitation handbook. Second. There's a first and a second. Is there any discussion? Roll call, please. Other person hurt. I Barnes I Swanson I Pulis I Healey

I and Evans I agenda item 14. Can I get a motion to close the regular city council meeting and convene the Rock Island Regional Port District meeting? Second. All in favor? I. All opposed. Okay. We do not have an update tonight. No business. Okay. Well, uh, can I get a motion to exit the Rock Island Regional Port Authority and reconvene the regular city council meeting? I make that motion. Second. First and a second. All in favor say I. I. All opposed.

Okay. Agenda item 15. Does anybody have any new business to discuss?

I would just like to thank our public works for all the plowing they have done with our extraordinary snowfall. Um, I travel most of the roads in the Quad Cities and I do have to say that Rock Islands are by far the best. So, thank you. Thank you. The guys did a great job. Does anyone have anything? Okay. Agend item 16. Motion to enter or close session. uh close session 5 ILCS 122C11 litigation when an action against affecting or on behalf of the particular public body has been filed and is penny before a quarter administrative tribunal or when the public body finds that an action is probable or in imminent in which case the basis for the finding must be recorded and entered into the minutes of the closed meeting.

Move to go into close session for the section cited. Second. There's a first and a second. All in favor say I. I. Close.