O’Fallon approves $4.3M drainage project
Public work improvements in the older area of O’Fallon known as “The Presidential Streets” will continue to target drainage issues in the new year.
Plans are in motion for the fifth and final phase of the Presidential Streets Stormwater Remediation and the first phase of the West Presidential Streets.
That area’s early 20th century design included open ditches for remediation of stormwater. Because of naturally occurring sediment over the years, and residents filling in these ditches, there has been a history of drainage problems.
At its Dec. 21 meeting, the O’Fallon City Council OK’d an agreement with L.W. Contractors Inc. for $4,169,042.56 and another resolution for related construction engineering services with Gonzalez Companies at a cost of $139,500. They will do construction staking, material testing and construction inspection as needed. These two contracts are worth about $4.3 million.
The project was designed to take place in phases, and Phase 5 will take care of the east side of Lincoln Avenue. Along with the west streets, the project calls for the installation of storm sewer pipe and inlets to allow the flow of stormwater.
The roadways will be reconstructed with a concrete curb and new asphalt surface. In addition, the sanitary sewer mains and watermains will be replaced — within the limits of the projects.
The council reacted favorably to a downtown district request to allow outdoor seating on city-owned property near 218 E. State St., which is adjacent to the new Boarding House Bistro. Owner Ned Drolet of East State LLC had approached the council with a plan. The 945-square feet parcel is dirt, grass and asphalt and the city currently does not have plans to improve the property.
They set the lease for 10 years, followed by successive two-year terms that automatically extend unless either party gives notice of non-extension. The patio will include fencing, according to the agreement, and any improvements will be approved by the director of public works before construction.
The council can issue general obligation bonds, not to exceed $10.1 million, and $5.6 million general obligations refunding bonds, upon approval at its Jan. 4 meeting.
This would be to pay for costs of certain public capital projects and related costs, refinancing certain Illinois Environmental Protection Agency loans and paying related costs, authorizing the bond order execution, and for the levy of a direct annual tax that would be sufficient to pay the principal of and interest on said bonds.
The ordinance unanimously passed on first reading. This process involves consolidating the three outstanding IEPA loans into one general obligation bond issue and reduces the overall amount of interest being paid over the remaining life of the IEPA loans without extending the current payoff dates. The city could save between $260,118 to $317,730 in interest by doing this.
By evaluating private bonding options, the city discovered it could get lower interest rates for the upcoming wastewater treatment plant improvements, which are scheduled this year and estimated to cost $10.1 million. More ancillary savings could be had on equipment and contracts, with savings of time involved too.
Private placement bonds
The city is considering doing private placement bonds instead of an IEPA loan to fund Phase 2 of the wastewater treatment plant.
This parameters ordinance, to save time and take advantage of interest rates, will include both the $5.5 million refinancing and the $10.1 million for Phase 2 of the wastewater treatment plant.
But it does not obligate the city should the interest rates and savings not be a benefit. This will allow Bernardi Securities to look at options and provides the city flexibility in what would work best for their needs. If the rates aren’t favorable, the city will secure funding through IEPA and not move forward with private placement.
Other action by city council
In other action, the council approved an annexation agreement with Gerald Meyer and Julie Townsing-Meyer for 5.30 acres located at 7750 Haury Road. It is currently zoned agricultural in St. Clair County but will be re-zoned rural residential district when it is in the city.
Van-Lear Eckert was appointed as the Zoning Hearing Officer, replacing Doug Gruenke, who resigned to become the Clinton County State’s Attorney. The hearing officer presides over zoning appeals and tow ordinance appeals.
As expected by city officials, the tax levy was approved. Therefore, the city’s estimated rate setting EAV for the 2020 Tax Levy is $735,647,791, which is currently lower than the 2019 final rate setting EAV.
The ordinance freezing water and sewer rates until September 2021 received final approval.
This story was originally published December 29, 2020 at 12:00 AM.