Board of Aldermen Meeting Agendas & Minutes

 

Every effort is made to ensure that the Agendas and Minutes provided on this and subsequent pages is timely and correct; however, users should keep in mind that this information is provided only as a public convenience. In any case where legal reliance on information is required, the official records of the City of Ballwin should be consulted.

The Board of Aldermen meet on the second and fourth Mondays of each month at 7 p.m. in the Board Room of the Ballwin Government Center, 1 Government Ctr. Schedule and place subject to change. Meetings are open to the public. All citizens are urged to attend.

Board of Aldermen Meeting

Meeting Agenda

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Meeting Minutes

MINUTES OF THE BOARD OF ALDERMEN MEETING
CITY OF BALLWIN – 300 PARK DRIVE
June 18, 2012

The meeting was called to order by Mayor Pogue at 7:02 p.m.

             PRESENT                                                                ABSENT
MAYOR TIM POGUE 
ALDERMAN JIMMY TERBROCK 
ALDERMAN MICHAEL FINLEY 
ALDERMAN MARK HARDER 
ALDERMAN SHAMED DOGAN 
ALDERMAN FRANK FLEMING 
ALDERMAN JIM LEAHY 
ALDERMAN RICHARD BOERNER 
ALDERMAN KATHY KERLAGON 
CITY ADMINISTRATOR ROBERT KUNTZ 
CITY ATTORNEY ROBERT E. JONES 

The Pledge of Allegiance was given.

MINUTES

The Minutes of the May 14, 2012 Board of Aldermen meeting were submitted for approval.  Alderman Dogan amended page 8. paragraph 6, as follows:  “At this meeting, we are considering five contracts.” 
A motion was made by Alderman Terbrock and seconded by Alderman Dogan to approve the Minutes as amended.  A voice vote was taken with a unanimous affirmative result and the motion passed.

PRESENTATION
JEMA Report on Board Room Renovation:  John Mueller reviewed work to date on the needs for the Board room and the Government Center.  Input from staff and aldermen was obtained for these renovations.  A workshop with was held showing five options to improve the Government Center.  A workshop was also held in the Board meeting room, and four options were presented.  This will be narrowed down to Two options for each location, after which cost estimates will be submitted for consideration.  The refined options should be presented on July 2.  There were no questions at this time from the Board.

PENDING ISSUES

BILL # 3749 - AN ORDINANCE AMENDING THE HEIGHT RESTRICTIONS ON FENCES IN CERTAIN ZONING DISTRICTS.

Mayor Pogue said this bill has had a first reading.  He said that Schnucks has agreed to erect a 10-foot fence within the buffer area if the Board votes in favor of Bill 3749. 

Alderman Kerlagon said she visited three homeowners adjacent to this property.  They are pleased with having a 10-foot fence erected, but they are also interested in a 4-foot berm.  Two of the homeowners whose property faces the front of the store, expressed that a 4-foot berm will give them better screening than what they have at this time. 

Mayor Pogue said that in the letter from Schnucks, it said that they would increase the height of the planned berm to the required 3 feet wherever possible. 

Mr. David Fontana, Vice President of Real Estate for Schnucks Markets, said a 3-foot berm was required in the site development plan ordinance that was approved for the project.  There was some mis-communication with the engineers, and a plan was recently submitted that did not have the berm everywhere at that height.  This has been revised and will be submitted for approval.  The berm will be raised up to 3 or 4 feet.  Easements from a couple of the homeowners will be necessary due to grading on their property.  The homeowners affect by this have been consulted, and there should be no problem doing this.  He said Schnucks will raise the berm, and install a 10-foot fence.  He said that additional landscaping will also be done in the buffer area in addition to what was originally approved in 2009. 

A motion was made by Alderman Harder and seconded by Alderman Dogan for a second reading of Bill No. 3749.  A voice vote was taken with a unanimous affirmative result and the motion passed.  Bill No. 3749 was read for the second time.

A roll call was taken for passage and approval of Bill No. 3749 with the following results: 
Ayes – Harder, Dogan, Fleming, Terbrock, Boerner, Leahy, Finley, Kerlagon.  Nays – None.  Bill No. 3749 was approved and became Ordinance No. 12-26.

CITIZEN COMMENTS

Bob Bohlmann, 2311 Eagles Glen Ct.:  Mr. Bohlmann thanked the Board of Aldermen and Schnucks for working for an acceptable plan for a 10-foot fence.  All of the neighbors support this plan and thanked everyone for quickly working through the process. 

Jim Panter, 857 Hollyridge Drive:  Mr. Panter said he is grateful for the paving work that has been done.  He asked why do the crews work on 100 feet, stop, haul the equipment away, clear the streets, and then come back a day or two days later, unload the equipment, do another 50 feet or 100 feet, take the equipment away, and then come back again in another day or two?  He said he is mystified by this because he believes that this is not efficient.  The side of the street that he live on is virtually done, except there are 30 feet in front of his driveway that’s not done.  He asked how this can be efficient work in this manner.  He’s concerned about how tax dollars are spent. 

Kevin Buckner, Meridian Waste Services, Bridgeton, Missouri:   Mr. Buckner spoke to the Board about the refuse collection contract.  He believes that Ballwin should rebid the waste hauling contract in 2015 when it is due, and not extend the Allied contract at this time.  He said it is better for the residents for this contract to be sent out for bids.  He said there are lower prices available than Allied’s proposed 10-year contract.

Tim Trost, Area President for Republic Services/Allied Waste:  Mr. Trost said he appreciates the Board’s consideration of the contract extension.  He said that Republic/Allied is fully committed to providing top level service.  He asked the Board to approve the extension to allow Allied to work with Ballwin’s staff in the new service offering that are in the proposed contract.  The new service would start on January 1, 2013. 

PUBLIC HEARINGS
None.

NEW BUSINESS

LEGISLATION

BILL # 3750 - AN ORDINANCE ADOPTING AN ANNEXATION MAP FOR THE CITY OF BALLWIN.

A motion was made by Alderman Terbrock and seconded by Alderman Harder for a first reading of Bill No. 3750.   A voice vote was taken with a unanimous affirmative result, the motion passed and Bill No. 3750 was read for the first time.

Alderman Fleming asked, can the Board choose to include things other than unincorporated areas?  City Administrator Kuntz said yes.  Alderman Fleming asked, would it be in our best interest to include specifically the commercial cutout along Clayton Road that Chesterfield has now?  City Administrator Kuntz said the area that Alderman Fleming is referring to is an irregular line along the south side of Clayton Road, from the intersection of Baxter to where the residential housing development starts.  All of the residential to the south of that is within the City of Ballwin.  It cross at Clayton Road to include the Walgreens and the bank at that location.  Then the line goes back into the city limits of Ballwin all the way up on the south side.  The City of Chesterfield is completely on the north side of that roadway stretch. 

City Administrator Kuntz said that he has had numerous conversations about this area and any future annexation plans for the City of Chesterfield, and has been advised consistently that the City of Chesterfield had no interest in the discussion.  Nothing would preclude the Board from adding this, but it would have to be approved in both jurisdictions.  This would be a boundary adjustment.  That is more complicated than a simplified annexation initiative.  City Attorney Jones said it would have to start with inclusion in the map. 

Alderman Fleming said they may not want to do this, but it would allow for the possibility.  City Attorney Jones said this is correct.  Alderman Fleming asked would the City of Chesterfield find this to be rude?  The Boundary Commission continually states is that they like logical boundaries.  Clayton Road is a logical boundary.  The one cutout that belongs to Chesterfield on our side of Clayton Road isn’t a logical boundary.  City Administrator Kuntz said that there is a similar cutout on the north side as you get to Kehrs Mill.  Alderman Fleming said if they want to include that in their plan, they could do this, but they’ve indicated that they are not going to do a plan.  City Attorney Jones agreed.  He said if there is any interest in pursuing this particular parcel, he recommended that it be included in the map plan.  Alderman Fleming said that whatever is submitted now is what will be available to work with for the next five years.  City Administrator Kuntz said that what we turned in five years ago, we’ve done nothing with it. 

Assistant City Administrator Aiken said that if the City of Chesterfield doesn’t also have this on their map, the Boundary Commission will not consider it in the future.  Everything else on the map is unincorporated.  City Administrator Kuntz said, if this is adopted, and a petition was received from a neighborhood, the Board would accept the petition, and instruct staff to do an economic cost benefit analysis.  The results of the research would be presented to the Board before there would be any citizen engagement regarding the position of the city.  He said we have always made annexations a voluntary or a win-win proposition.  We didn’t approach anyone; they approached us.  We would proceed if there was a majority in favor.  If this is on the map for St. Louis County, it opens the door for a petition.  If we don’t have it on our map, they can’t petition for it. 

City Attorney Jones said unless a parcel is small and self-contained with a small number of voters to obtain a 75% petition, but it should be assumed that it will require a simple majority in the area to be annexed and also within the city.  The area will have to be contiguous to our boundaries, but there are exceptions and provisions to this with different requirements. 

A motion was made by Alderman Boerner and seconded by Alderman Kerlagon for a second reading of Bill No. 3750.  A voice vote was taken with a unanimous affirmative result and the motion passed.  Bill No. 3750 was read for the second time.

A roll call was taken for passage and approval of Bill No. 3750 with the following results: 
Ayes – Boerner, Kerlagon, Dogan, Finley, Leahy, Harder, Fleming, Terbrock.  Nays – None.  Bill No. 3750 was approved and became Ordinance No. 12-27.

BILL # 3751 - AN ORDINANCE GRANTING A SPECIAL USE EXCEPTION TO CHECK INTO CASH OF MISSOURI FOR OPERATION OF A FINANCIAL BUSINESS AT 14842 MANCHESTER ROAD.

A motion was made by Alderman Boerner and seconded by Alderman Fleming for a first reading of Bill No. 3751.   A voice vote was taken with a unanimous affirmative result and the motion passed.  Bill No. 3751 was read for the first time.

Alderman Finley said this is an existing business moving into an adjacent spot.  City Administrator Kuntz said that is correct.

A motion was made by Alderman Fleming and seconded by Alderman Boerner for a second reading of Bill No. 3751.  A voice vote was taken with a unanimous affirmative result and the motion passed.  Bill No. 3751 was read for the second time.

A roll call was taken for passage and approval of Bill No. 3751 with the following results: 
Ayes – Fleming, Boerner, Leahy, Kerlagon, Terbrock, Dogan, Finley.  Nays – Harder.  Bill No. 3751 was approved by a vote of 7-1 and became Ordinance No. 12-28.

BILL # 3752 - AN ORDINANCE AUTHORIZING THE MAYOR OF THE CITY OF BALLWIN TO EXECUTE A REFUSE COLLECTION CONTRACT EXTENSION WITH ALLIED WASTE SERVICES.

Mayor Pogue asked City Attorney Jones to present his opinion regarding Alderman Dogan’s questions regarding bid requirements and statutes and ordinances related to the Republic/Allied Waste Contract proposal.  City Attorney Jones said that there is no statutory obligation to competitively bid out this contract.  If there is such an obligation, it would come from the City’s ordinances, specifically the purchasing ordinances.  It’s not completely clear whether those apply, since it’s not the City of Ballwin purchasing this product or services.  He is assuming for the purpose of this discussion that it does apply because the City of Ballwin is receiving services as a result of this contract, at city facilities. 

City Attorney Jones said he reviewed the purchasing ordinances and determined that since waste hauling services are available from more than one source, we can’t rely on that particular section of the purchasing ordinance.  We would have to instead determine if the Board is willing to waive the criteria for awarding contracts, in Section 2-4.4 of the Purchasing Ordinance.  The waiver would have to be the result of a motion by this Board that would be adopted by a majority of the Board, with a finding that it’s beneficial or expeditious to do so.  It would not be possible to continue with the existing contract with this supplier because it’s more than twelve months old. 

City Attorney Jones said, to do this, it would have to be a waiver expressed by the Board in a motion, adopted by a majority. 

Mayor asked if anyone would like to make a motion to waive the requirement of Section 2-4.4.  Alderman Dogan asked what form does the waiver have to take?  Does it have to be a separate ordinance?  How would this have to be structured?  City Attorney Jones said, a motion by a member of the Board of Aldermen to waive the criteria contained in the Purchasing Ordinance, because it’s beneficial or expeditious of the City to do so, would be sufficient. 

The motion was made by Alderman Fleming to waive the criteria contained in the Purchasing Ordinance. 

Alderman Boerner asked if the Board should be discussing the waiver at this time, or should the Bill be considered first?  City Attorney Jones said it makes more sense to vote on the waiver first, because it would not be possible, if we determine, and we should determine, that the Purchasing Ordinance applied, then it would not be possible to adopt this ordinance without bidding, unless the Board votes to adopt such a waiver. 

Mayor Pogue said, the Board wouldn’t be able to accept the contract described in Bill 3752 without waiving this requirement.  City Attorney Jones said that is correct.

Alderman Dogan asked, how can the Board vote on whether it’s beneficial or expeditious to waive the requirements without a discussion.  He said this discussion should be held first.  City Attorney Jones said that if someone makes a motion, as Alderman Fleming has done, then open for discussion, it would be determined if this is beneficial or expeditious to the city. 

Alderman Fleming said if no one is willing to entertain a waiver of this requirement, and insist upon bidding, then Bill 3752 doesn’t have to be discussed at all.  Alderman Terbrock said he agrees with Alderman Fleming’s statement. 

The motion was withdrawn by Alderman Fleming.

Alderman Fleming said that he doesn’t have a problem with waiving this requirement. 

Alderman Harder said the waiver is important.  If the 10-year contract is approved, the Board is locking in the rates for ten years.  We are negotiating on behalf of 30,000 people of Ballwin.  It’s one of the biggest contracts in the course of many years.  He said he supports not going forward with the waiver unless competitive bids solicited.  He said we need to do competitive bids. 

Alderman Boerner asked Tim Trost, Area President for Republic Services/Allied Waste, how new business is obtained?  Mr. Trost said it is generally a bid process.  Alderman Boerner asked if there is ever a no-bid process for new business.  Mr. Trost said he’s sure they have.  Alderman Boerner said in the proposed contract, it states that if fuel goes above $5 per gallon, you will renegotiate.  Mr. Trost said he doesn’t believe that it was stated to renegotiate.  He said they ask for a consideration to sit down and discuss the situation.  Allied is making a substantial investment right now in fueling with natural gas to protect this from happening in the future. 

Alderman Boerner asked if new trucks are being purchased.  Mr. Trost said new trucks will be purchased.  The current trucks will be disbursed throughout the rest of the company to use elsewhere.  Once the huge investment is made, from a business standpoint, it’s wise to convert as much of the fleet as possible.  Over the next five years, about 80% of the trucks will be using natural gas.  There is a big investment yet this year which will include 72 trucks, and approximately another 75 trucks over the next 4 years.  This year the equipment will be put in the City of Ballwin.  This is a substantial cost – millions. 

Alderman Boerner said this is a fixed asset, amortized 8 years.  Mr. Trost said that long term, natural gas price will be more consistent than diesel fuel.  Mr. Trost said there are costs built in that will reflect what the upfront costs will be.  Alderman Boerner asked, when bidding new contracts, are the most efficient vehicles being used?  Mr. Trost said the new natural gas vehicle costs are in this contract.  Alderman Boerner said that the contract should also address the plan if gas prices go down.

Alderman Fleming said, after comparing prices that the districts for the County are paying and other municipalities, he is in favor of a waiver.  The pricing proposed by Allied is fair, reasonable, and aggressive.  The citizens expect the Board to use good judgment.  This is an opportunity to lock in favorable pricing.  Going out to bid is taking a chance that prices will significantly go up.  He said the feedback from citizens has been overwhelmingly positive.  At two subdivision meetings he attended, the residents all spoke positively about the proposed contract.  In this situation, “penny wise and pound foolish” could be the result of bidding this service.  He said he wouldn’t suggest a waiver if he did not believe that he was not acting in the best interest of the city.  All of the numbers are available to compare.

Alderman Leahy said he has been extremely happy with Allied Waste.  The only complaints he ever receives is that when pickup went two days each week, people left the trash carts out 3 or 4 days.  Now the schedule is going back to one day per week.  He said he is in favor of the waiver. 

Alderman Terbrock said in the proposed contract, a cost increase of less than half of inflation is included.  Mr. Trost said with natural gas, they will be more in control of fuel costs.  There is also a heavy investment in recycling.  There is a recycling processing facility being built in Hazelwood.  Over $19 million is being invested in both north side and south side facilities just for recycling.  The average household recycles about 12 pounds of recycling per week.  If more materials can be taken out of trash and into recycling, this will benefit the City. 

Alderman Terbrock said according to the proposed contract, we will be paying less in three years than we would with the current contract.  He said no one has said anything to him about Allied’s contract.  If this was a bad deal, he’s sure the citizens would be telling him not to approve the contract. 

Mayor Pogue said that all of the citizens that attended the subdivision meetings he attended, overwhelmingly expressed support of the new contract.  They could not understand why Ballwin would stay with the current contract when it can be extended for 10 years and still end up with a lower rate than we would have under the current contract.  In the current contract, at the end of 2015, the average resident will be paying $23.30.  Under the proposal, at the end of 10 years (2022), the average resident will be paying $23.13.  The City is also benefitting by getting the street sweeping debris picked up, which costs approximately $10,000 per year.  He said he has attended half a dozen subdivision meetings with approximately 400 people and the residents are extremely satisfied with the service from Allied.

Alderman Dogan said everyone that he has spoken with and received e-mails have been opposed to the contract.  What was proposed in April is substantially different from what is being presented now.  The residents are concerned about being locked in to a 10-year contract.  There are no other municipalities in the St. Louis area that are in a 10-year contract.  In the past, Ballwin has never signed a 10-year contract.  He said Mr. Lamantia agreed to changing the contract to a 7-year contract, which would be extended 4 years out from the current 3-years.  Now the proposed contract is back to 10 years.  How did that happen? 

Alderman Dogan said the baseline prices have increased in two months.  Why is the new deal more expensive?

Alderman Dogan said that in the current contract, there were certain years that the increase would be 2%, 1.5%, and 0%.  In the new contract, there are no years when there is a 0% increase.  Why are there no 0% increases in the new contract?  If the costs are decreased, why is there no statement in the contract to negotiate for lower rates?  If the cost for natural gas goes below a certain amount every year, Allied could be mandated to decrease the rates.  There are many things that can provide a better deal for the residents that are not included in the proposed contract. 

Alderman Dogan said that Mr. Lamantia had mentioned that there was a clause that would allow the City to sever the agreement with 30 days notice based on almost any circumstance.  Mr. Lamantia insisted that it was in the language; the City Attorney said it was not.  It is not in the proposed contract.  The only way we are able to sever the contract is if the company violates material provisions of the contract or fails to provide indemnification coverage, violate any regulatory bodies, etc., or bankrupt.  We don’t have the flexibility after the agreement is signed to sever the contract and perhaps bid out if we are unhappy with the service.  He said locking us in the contract in that manner is very concerning. 

Alderman Dogan said, not too long ago, this Board was urged to approve changes in the Electrical Code.  It had to be done right now or the world was going to collapse.  The Board made the changes in the code, and this was not the best deal for the City.  There were lots of people who were angry about this.  We ended up with egg on our face as a result and the complications it would cause for home builders in Ballwin.  We were able to repeal the action of the Board.  In this situation, if we sign the 10-year deal, we’re not able to get out of it.  If we find out that other municipalities are getting better deals, we can’t renegotiate.  A no-bid contract from a governing perspective, locking us in with no flexibility, not allowing any companies to prove that they do the same work, is not in the spirit of the law that this Board passed regarding no-bid contracts.  If everyone no-bid their contracts, Allied would never be able to get new business.  It should be in the best interest of Allied to avoid no-bid contracts as much as possible so that Allied can compete for business.  When services are bid out, the price for service is usually lower. 

Mr. Trost said the reason for the 10-year contract is because of the substantial upfront investment that Allied is putting in place with the cart deliveries and new trucks, which exceeds $1.5 million.  If a shorter contract is used, the pricing cannot be as aggressive because the pricing would be spread over a shorter time frame. 

Mr. Trost said there’s not a single year where Allied’s costs go backwards.  Labor rates are moved up, and tires went up 30% in the last year.  A 10-year deal with the small increases will be attractive for the next ten years. 

Alderman Dogan asked about the 5-year Allied agreement with the City of St. Charles in January.  Why didn’t St. Charles sign a 10-year agreement?  Mr. Trost said when negotiations were held with St. Charles, only diesel fuel was being used, and there was no certainty of the fuel type in the future.  Today, the costs can be controlled.  Diesel fuel today compared to 8 years ago, is more than double.  Diesel fuel is more than 20% of Allied’s cost. 

Alderman Dogan said that the St. Charles residents are delivered the 95-gallon containers and don’t have to pay extra.  In the Ballwin contract, Allied wants to supply 65-gallon containers and have people pay extra for the larger carts.  Why was that not offered to the City of Ballwin?  Mr. Trost said there are three tiers that offer different size containers.  At the time the St. Charles contract was discussed, the different sizes of containers was not part of the program.  Since there is now a choice of container sizes, the residents like the concept. 

Alderman Dogan asked if the prices go up or down when Allied bids against other companies.  Mr. Trost said three years from now, the costs and prices will be higher.  Alderman Dogan asked when Allied bids against other companies, is a low bid submitted or a higher bid?  Mr. Trost said they analyze the costs and a certain amount of return must come back for every asset they buy.  This affects the price that is offered.  Mr. Trost said that they are very competitive with other companies. 

Alderman Harder asked if the reason for the new contract at this time is because of fuel costs and converting to natural gas?  Mr. Trost said the reason is to go with a complete cart program to where it’s all uniform up and down the streets – 2 carts – one for recycling and one for trash.  There would be no open containers, which will prevent animals getting into the trash and debris blowing out of the containers.  Alderman Harder asked if the Board accepts this contract, will the natural gas trucks be used in Ballwin?  Mr. Trost said yes.  Alderman Harder said that it seems that Ballwin is investing in this technology with Allied as a partner, but the natural gas might also be used in Wildwood or somewhere else, and they aren’t locked into a 10-year bid.  Mr. Trost said they are making an investment to convert completely to natural gas, regardless of what the City of Ballwin does.  Alderman Harder asked will the next municipality that comes up for bid be locked in to a 10-year agreement?  Mr. Trost said he can’t be certain of that.  It’s not about locking in.  It’s about discussing pricing.  Over a 10-year period, you can get the most competitive rates.  The natural gas trucks will gradually start to be used in August.  Over the next 8 months, 72 trucks will be delivered and in use. 

Alderman Terbrock asked how many municipalities does Allied Waste serve?  Mr. Trost said over 50 in the metropolitan area. 

Alderman Boerner said he is very pleased with the Allied Waste service.  They have and are doing a great job.  He said that some of the different cart sizes was due to resident requests and redesigning the trucks to be able to pick up the smaller cans.  He said the Board has an obligation to keep the options open for the people.  If we use money directly from the residents to provide a service or indirectly, it’s still the residents’ money.  He said he is uncomfortable with committing to a long contract. 

Alderman Fleming asked who is billed for the St. Charles service.  Mr. Trost said the residents are billed.  Alderman Fleming asked, if everyone on the Board was willing to approve the waiver, are you authorized to negotiate on behalf of Allied this evening.  Mr. Trost said yes.  Alderman Fleming said that Mr. Trost is asking the Board in good faith if they can re-negotiate if the fuel cost goes above a specific amount.  Perhaps the Board can ask Mr. Trost in good faith to re-negotiate if the cost goes below a certain amount. 

Alderman Fleming said he has not heard anyone on the Board say that the Allied service has been bad.  It’s a huge risk to try to take this service to another provider to save a dime.  You will get more complaints about trash service than anything else that’s bad.  I guarantee it. 

City Administrator Kuntz said the fuel escalation is regarding diesel fuel only.  Natural gas trucks will be used, and the fallback is only with respect to the diesel portion of the fleet. 

Alderman Finley said that Allied does a great job.  He recalled that City Attorney Jones mentioned that because some of the service is provided to the City, that attaches an obligation to focus more on the bid process.  He does not see the necessity to extend the contract that far.  He said he found Alderman Dogan’s comments persuasive that as a governmental entity, we should let the bid process play out and see what the situation is in three years. 

Alderman Boerner said if you believe that there is going to be a significant amount of inflation in the future, you will want to accept this contract because it limits the cost.  He said on one hand, he believes that the opportunity to bid this should be used, on the other hand, this contract is a very good hedge against future inflation, which there most likely will be. 

Alderman Leahy said the Board should vote on the waiver.  If it’s not going to pass, we’re wasting time.  This has been discussed for over an hour and statements are being repeated. 

A motion was made by Alderman Leahy, and seconded by Alderman Terbrock, to call the question and vote to end discussion on the waiver.  A voice vote was taken with the following result:  Aye:  Leahy, Terbrock, Finley, Dogan, Harder, Fleming, Boerner, Kerlagon.  Nay:  None.  The motion unanimously passed to vote on the waiver. 

Alderman Dogan said the question is should we go through the no-bid process?  The City of Ballwin has not bid out trash services since 1995, which he believes has inhibited the Board from exploring any other service providers and different ways to structure a deal.  The reason we have the bid process is so that we can discover new ways of doing business, new companies to do business with, new contracts to get the best possible cost savings and service for our residents.  He said he thinks we are doing the residents a disservice if the contract is extended for 10 years.  At that point, it will have been 27 years since the contract will have been bid out.  He said if we can’t bid it out now, when will we ever?  Is Allied being given a defacto monopoly on this service for life?  That’s kind of what they have in place now, and that’s what they’re asking for permanently.  He said if we don’t do the bid process, it will be negative in this situation and sets a bad precedent for other services.  For the $5,000 or $6,000 contracts, why shouldn’t we just pick out somebody who has been providing that service for a long time and just extend it to them?  He said you might get lower prices with this 10-year bid, but you never know until you bid it out.  You never know until you make a company like Allied compete against other companies, and what services they can provide.  People like the leaf collection service and should be continued.  It has been said that only Allied can provide this service.  He said he found out in conversations with other providers that this is not the case.  Allied does not collect the leaves.  Our city crews collect the leaves, and other companies can haul it away.  He said he talked to Waste Management.  He wanted to ask the gentleman from Meridian if they also could provide that service.  It’s important that other companies can provide the same level of service that we now have.  We can’t find that out unless we ask them.  We can’t ask them until we have a bidding process or at least talk with them to find out what their services are. You won’t get the best contract unless you negotiate.  When you’re buying a car, you don’t take the first offer that you receive.  You don’t walk into a dealership and tell them that they have your business, now give a price.  

Alderman Dogan said he would like to see something in the contract that guarantees that the natural gas vehicles will be used in Ballwin.  That’s not in the contract.  He said he wants a guarantee that this will happen.  There are other items that could be negotiated.  He said that if his first option isn’t possible, if the option of just saying, no, let’s go out to bid isn’t possible, he thinks this contract should not be signed as it is presented. 

Mayor Pogue said, City Administrator Kuntz has gone through quite a few months of negotiations with Allied in preparation for this, brought us to the first proposal, there were questions by the residents at the Public Hearing, and that led to additional discussions.  Alderman Dogan said those questions were not taken into account.  The residents said the didn’t want a 10-year deal.  Mr. Lamantia said the deal would be reduced to 7 years, and now, 10 years is in the contract.  He said that’s not negotiations.  He believes the contract should be for 7 years. 

Alderman Terbrock said all of these points are based on the idea that we are going into this in the dark, when clearly we’re not.  Alderman Fleming has all the comparables of the cities in the metropolitan area.  These prices are fair, reasonable and aggressive.  The numbers are there, we know what we will get.  This is talking about taking a company out of the city that represents more than half of the municipalities in the St. Louis region, looking for someone new to come into our city.  It will be more expensive if we do that.  He said he doesn’t know of anything to be purchased in three years will cost less than it is now.  Alderman Terbrock said the proposed contract is a plan that in 10 years from now will be cheaper than our current plan three years from now.  This plan is beneficial to our residents. 

Alderman Boerner said if the contract is revised to show our protection on the down side of fuel costs, this would be agreeable to at least Alderman Fleming and himself. 

Alderman Fleming said there are lots of items that will go up in price, such as landfill prices, tires, labor, insurance, etc.  Fuel is not the only item to focus on. 

Alderman Leahy said 20 minutes ago, he made a motion, seconded by Alderman Terbrock, to vote on the waiver. 

A motion was made by Alderman Fleming, seconded by Alderman Leahy, to approve a waiver for the bidding of the waste contract, regarding section 2-4.4, as being expeditious to the city.  A voice vote was taken with the following result:  Aye:  Terbrock, Fleming, Leahy, Kerlagon.  Nay:  Boerner, Finley, Dogan, Harder.  Mayor Pogue cast the deciding vote by voting Aye.  The waiver was approved by a vote of 5-4. 

Alderman Dogan said, in addition to the fuel cost, he asked if Mr. Trost will discuss the length of the contract and if there will be a written guarantee of the natural gas vehicles being used in Ballwin. 

Alderman Terbrock said he does not agree with decreasing the length of the contract. 

A motion was made by Alderman Kerlagon and seconded by Alderman Terbrock for a first reading of Bill No. 3752.   A voice vote was taken with the following result:  Aye:  Kerlagon, Terbrock, Harder, Leahy, Fleming, Boerner, Finley.  Nay:  Dogan.   The motion passed by a vote of 6-2.  Bill No. 3752 was read for the first time.

A motion was made by Alderman Harder, seconded by Alderman Dogan, to change the contract to 7 years. 

Mr. Trost said the whole reason for the aggressive pricing in the contract is the reason we’re at the 10-year mark.  It’s actually a 7-year mark.  We’re already on three years.  The contract is actually for 7 years.  On years 2, 3, and 4, which are the remaining years left, there is a price decrease.  The remaining 7 years only increases alternatively by 1 and 1.5, as explained earlier.  He said this is a great deal.  If the term is lowered, the cost goes up, because it will have to be spread out over fewer months.  He said that City Administrator Kuntz has negotiated in the best interest of the city and residents. 

Alderman Dogan said it is still worthwhile exploring the possibility of as many options as possible to consider.  It’s worth possibly having a cost increase, or at least seeing what it looks like if we go to a shorter deal.  He said a lot of the citizens made the statement that a 10-year deal, which is 7 years on top of what we have left on our three-year deal, is too long of a commitment, especially in light of the fact that this contract hasn’t been bid out since 1995. 

A roll call vote was taken to amend the contract in Bill No. 3752 to 7 years, with the following result:  Aye:  Harder, Dogan.  Nay:  Kerlagon, Boerner, Leahy, Fleming, Finley, Terbrock.  The motion failed by a vote of 6-2. 

Alderman Fleming asked if the contract is the only document that should be considered with the legislation.  City Attorney Jones said the contract is the document for consideration. 

Alderman Boerner asked if $4.00 on the low end for diesel fuel could be used on an equivalent basis and go back to the table and discuss the contract to reduce the cost?  Mr. Trost said diesel fuel today is less than $4.  City Attorney Jones said this would be an agreement to meet and confer in good faith, with no obligations by either party. 

Alderman Leahy asked what is the gallon equivalent cost of natural gas vs. diesel right now?  Mr. Trost said, after investment, it’s not much different.  If it was, it would be everywhere.  It’s more about the clean effect and about being green, and making a $20 million investment in this community for a recycling plant, and changing our image, being a leader as a green company, which Allied Waste is. 

Alderman Leahy asked what is a fair number that if it gets below, we could come to Allied and say let’s negotiate.  Mr. Trost said to just use diesel prices.  The whole market is based on diesel prices.  Allied is the only one switching to natural gas.  If natural gas didn’t go down at all, and diesel went down to $2.50, and you want to put something in the contract for you to get some money back, he would be receptive to that if Allied gets more money if the price gets to $5.00. 

Mayor Pogue asked if Mr. Trost would be receptive to an amendment to state, “In the event that a new tax or fee is imposed by virtue of federal, state, or local legislation, or the average annual price of diesel fuel decreases below $2.50, or increases beyond $5.00, the City and hauler agree to discuss in good faith ….” .and then continue?  Mr. Trost said yes. 

Alderman Fleming asked, should it be diesel or natural gas equivalent, or does it matter to have that included in the language?  Mr. Trost said he thinks it would be simpler to use the base line of diesel.  City Attorney Jones agreed. 

A motion was made by Alderman Fleming, seconded by Alderman Leahy, to amend 4.1c to that language.  A voice vote was taken with the following result:  Aye:  Fleming, Leahy, Terbrock, Boerner, Kerlagon.   Nay:  Harder, Dogan, Finley.  The motion passed by a vote of 5-3. 

Alderman Fleming said that earlier in the day, he asked City Administrator Kuntz to confirm that television and electronics were in the contract.  Mr. Lamantia replied via e-mail that they are included.  Alderman Fleming said he doesn’t see it in the contract.  City Attorney Jones said it’s in the bulky items definition 2.3, Furniture, televisions, and other household goods.  The collection is provided in 2.6 as part of the base contract. 

Alderman Fleming said the only thing not covered is general electronics, like a vcr.  Alderman Terbrock said it is covered. 

A motion was made by Alderman Fleming , seconded by Alderman Leahy, to include in section 2.3, “furniture, televisions, and other similar electronic items.”  A voice vote was taken with the following result:  Aye:  Terbrock, Dogan, Harder, Leahy, Fleming, Boerner, Kerlagon.   Nay:  Finley.  The motion passed by a vote of 7-1.

A motion was made by Alderman Terbrock and seconded by Alderman Fleming for a second reading of Bill No. 3752, as amended  A voice vote was taken with the following result:  Aye:  Terbrock, Finley, Harder, Leahy, Fleming, Boerner, Kerlagon.   Nay:  Dogan.  The motion passed by a vote of 7-1, and Bill No. 3752 was read for the second time.

A roll call was taken for passage and approval of Bill No. 3752 with the following results: 
Ayes: Terbrock, Fleming, Kerlagon, Leahy.  Nay: Dogan, Harder, Finley, Boerner.  Mayor Pogue cast the deciding vote, voting Aye.  Bill No. 3752 was approved by a vote of 5-4, and became Ordinance No. 12-29.

A RESOLUTION SHOWING SUPPORT BY THE BALLWIN BOARD OF ALDERMEN FOR MISSOURI HOUSE BILL 1329, RESTORING THE SALES TAX ON OUT-OF-STATE VEHICLE PURCHASES, AND HELPING PRESERVE JOBS IN NUMEROUS SMALL BUSINESSES ACROSS THE STATE.

A motion was made by Alderman Fleming and seconded by Alderman Finley to adopt the Resolution.  A voice vote was taken with a unanimous affirmative result and the motion passed. .

CONSENT ITEMS:  (Budgeted items which are low bid and do not exceed expenditure estimates and/or items which have been previously approved in concept.)

A. Mi Lupita S.U.E. Transfer
B. Wolf Public House S.U.E. Transfer
C. Liquor License Renewals (July 1, 2012 – June 30, 2013)
D. Lightbars – Police Dept.
E. Surplus Vehicles – Police Dept.

A motion was made by Alderman Leahy and seconded by Alderman Terbrock to accept the Consent Items.  A voice vote was taken with a unanimous affirmative result and the motion passed.

MAYOR’S REPORT

Great Streets:  Mayor Pogue said a meeting with the Great Streets committee will be held next week.  An update will be provided to the Board at the next meeting.

CITY ADMINISTRATOR’S REPORT

Health Insurance:  City Administrator Kuntz said renewal, effective July 1 through June, 2013, with the additional cost of $15,735, is recommended, and accepting the adjustment, as opposed to passing this along to the employees on a pro-rated basis. Human Resource Coordinator Morrison stated that the City of Ballwin is in an insurance pool with several other cities and we are now self-insured. 

Alderman Dogan asked about the broker for the SLAIT Insurance Pool.  Are we sure that United Healthcare is increasing their premiums similar to other health insurance providers?  Human Resources Coordinator Morrison stated that she was of the understanding that SLAIT set the increases for the participating cities based on their claims and experience.

City Administrator Kuntz said the SLAIT always solicits at least four additional companies for quotes.  It’s not an automatic renewal.  Every year, the quotes are only good for 12 months.  This is the same company that is currently providing coverage.  Two or three years ago, the provider was Blue Cross / Blue Shield.  It is shopped competitively on our behalf. 

Alderman Harder asked for the reason for the unbudgeted increase of $15,000.  City Administrator Kuntz responded this is the first year, since we’re self-insured, that the pool actually gave both penalties and incentives to members  based on claims.  It was a moderate adjustment.  We were within 2 claims of missing the cutoff of getting a 2% modification or premium adjustment.  He said this is competitive with the private sector.  If there are fewer claims next year, the premium adjustment could be less.  This is our third year in the self-insurance program.  He said a good claims reserve is being built up. 

A motion was made by Alderman Kerlagon, seconded by Alderman Fleming, to accept the health insurance recommendation.  A voice vote was taken with a unanimous affirmative result and the motion passed.

Candicci’s Restaurant & Bar Business License & Liquor License:  City Administrator Kuntz suggested that the Candicci’s liquor license renewal be approved.  He said it is his understanding that the bulk of the fees have been paid.  There are some issues outstanding regarding penalties for delinquency.  This is a case that when there is a request for approval from a petitioner that is not in compliance with all other requirements, that it be called to the Board’s attention.  City Attorney Jones said we have a section under the manufacturer’s license, which is 14-122, that specifically says that if a manufacturer is delinquent in other obligations, such as property taxes, license fees, permit fees, then they cannot get their business license.  We don’t have any such provision regarding liquor licenses.  Perhaps this should be considered in the future since we have this with regard to manufacturer’s licenses. 

City Administrator Kuntz recommended that the liquor license be issued, and for staff to work out the resolution of the delinquency fees.  Everyone with a liquor license has a current business license. 

A motion was made by Alderman Terbrock and seconded by Alderman Fleming to approve the liquor license renewal for Candicci’s Restaurant & Bar.  A voice vote was taken with a unanimous affirmative result and the motion passed.

Street Lighting:  City Administrator Kuntz said the street light costs continue to escalate.  It is now approaching $½ million per year.  He requested authorization to explore options on city property that do not involve municipal services as directly as they do public property services.  It’s not totally cost effective yet.  Ameren is turning a deaf ear to the new technology.  He recommended replacing old lights on City property with LED lights by bid. 

A motion was made by Alderman Terbrock and seconded by Alderman Leahy to instruct City Administrator Kuntz to pursue better options as suggested.  A voice vote was taken with a unanimous affirmative result.  The motion passed.

Next Meeting:  City Administrator Kuntz stated that the next Board of Aldermen meeting will be held on July 16. 

STAFF REPORTS
None.

CITY ATTORNEY’S REPORT

Pending Legal Issues: 

337 Meadowbrook:  City Attorney Jones said, since the last meeting, there was an administrative hearing on May 22, regarding the property at 337 Meadowbrook, where a fire occurred, and there is now just a foundation.  An order was entered by the City Administrator to demolish the property.  The property was not demolished within 10 days of the Order of Findings, and therefore, the City is now exploring a contract to demolish that foundation.  The property owner did not attend the hearing, but he called after the hearing.  He was given an opportunity to present any contract for the sale of the property or other remediation within the time prescribed in the ordinances.  That did not occur.  The City is pursuing the demolition of 337 Meadowbrook at this time. 

Alderman Harder asked, what is our exposure on this if we proceed with this on a dollar amount and legal amount so that we don’t get into a situation like the other property.  City Attorney Jones said, each one is different.  This individual knew about the hearing and came to the Government Center 15 minutes after the hearing was completed.  He was given an opportunity with the findings of fact, an order of the administrative body to complete his own demolition.  He did not do that.  He said he doesn’t see any possible opportunity to contest under the circumstances because it’s not habitable.  It a foundation with a tarp over it.  All utilities, except the sewer line have been removed and disconnected. 

Alderman Harder said, if we proceed to demolish the foundation, fill it in, grade it, seed it, and then put a lien against the property for future sale.  City Attorney Jones said that is correct.  The property will become more valuable by doing this.  We’re providing a remedy for an unsafe building. 

ALDERMANIC COMMENTS

Alderman Fleming thanked the Ballwin Days Committee and staff for all of the efforts on the Ballwin Days festival.  He thanked the Historical Commission and the Ballwin VFW for organizing the Memorial Day ceremony.

Door-to-Door Contractors:  Alderman Harder suggested putting something on the Ballwin website warning about storm chasers who knock on doors to replace roofs whether they need it or not.  Some of these can be unscrupulous and out-of-state contractors.  He said one door-to-door contractor was using badges from the City of Ellisville, not Ballwin.  When these contractors are talking to residents, they stick their sign in the front yard.  Some of the neighborhoods have looked like Las Vegas with too many signs.  He asked that the Code Enforcement department be looking for these signs.

Tall Grass:  Alderman Harder said he would also like the Code Enforcement department take a more pro-active role in the tall grass warnings.  He said he has seen foot high grass at some locations.  On the way to this meeting, he saw 4 lawns that exceed the limit for tall grass. 

Alderman Leahy thanked the Board for their active discussion about the refuse collection contract.  He apologized for trying to cut off the debate.  He said if he appeared impatient, he apologized to the Board. 

Barbeque Bash:  Alderman Leahy said he talked to Frank Schmer, from St. Louis Home Fires.  Mr. Schmer sponsors the Barbeque Bash every year.  There was a line of people in front of the store for two days, who wanted to register for the event.  The situation was worked out and he was very thankful that the Police did a very professional job.  He thanked the Police Department for their hard work. 

Alderman Boerner complimented the Police Department for assisting his wife in such a professional manner when her car broke down on Big Bend Road.  They arrived in just a couple of minutes after placing the call.  He said he know that we would not have that swift service if we were relying upon the County. 

Adjourn:  A motion was made by Alderman Fleming and seconded by Alderman Leahy to adjourn.  The motion passed unanimously and the meeting was adjourned at 9:20 p.m.

TIM POGUE, MAYOR

ATTEST:
ROBERT A. KUNTZ, CITY ADMINISTRATOR

MC