Peoria approves $1,000 gaming operator fee, 7-3 vote amid recycling service dispute

Peoria Council Approves Gaming Operator Fee Amid Recycling Service Uproar and Discrimination Allegations

The Peoria City Council on January 22, 2019, approved amendments to the video gaming terminal ordinance in a 7-3 vote, but the meeting's significance lay not in routine rezoning approvals or the gaming debate—rather in two escalating controversies: a contractual dispute over solid-waste recycling service that has stranded 2,400+ alley-dependent properties, and formal allegations by a resident that the Community Development Director engaged in discriminatory land disposition practices while the city manager failed to investigate.

Key Speeches

"I'm against this. I thinks it's really bad social costs and to quote the article it's only the most desperate cities the poorest cities that endorse having these gaming operations." — Councilwoman Akison, opposing video gaming ordinance

"I don't believe in—it's been my opinion that this is a council decision in my view it's a manager's decision but I respect your opinion as a municipal attorney I just disagree with it." — Corporation Counsel, responding to Council Member Jensen's contract interpretation argument on recycling

"We request that the council and the city manager do whatever's necessary to ensure the pickup remains in the alley for all solid waste...the neighborhood wants the whole neighborhood to continue to receive pick up a recycling and the halleys just like it's been all along." — CJ Summers, Uplands Residential Association President, on alley recycling preservation

"The fact that you did nothing to reach out to me to investigate and question the situation disappoints me I believe in hope that you do care though in this case with what I know now I must say you failed as the city manager a leader in this city as a person by normalizing behavior that disempowers a resident of this city." — Resident Diaz, alleging discrimination and management failure

Timeline

Gaming Ordinance (19-0017):

• Staff recommendation: Corporation Counsel outlined changes: $1,000 per-machine operator fee (on gaming terminal suppliers, not establishments); removal of two-year waiting period for compliant existing establishments seeking to expand.
• Council discussion: Councilwoman Akison objected strongly, citing Sunday's Journal Star article on Illinois' failed gaming-revenue projections and unfunded pension liabilities resulting from miscalculated gaming benefits. Councilmember Regan Back acknowledged the article's validity but characterized the ordinance as "making the best of a situation that is unfortunate." Council Member Jensen questioned how staff determined there was "no appetite" to raise establishment fees, noting no contrary opinion was expressed at the prior meeting. He asserted the vote count and interpretation remain incompatible with his recollection.
• Vote: Passed 7-3. Yes: Regan Back, Euler, Grab, Montelongo, More, Timothy Riggenbach, Turner. No: Akison, Jensen, Rock Rico.

Recycling Service Change Controversy:

• Background: PDC (Peoria Disposal Company) implementing curbside recycling pickup instead of alley service for approximately 2,400 properties; only 287 exemptions granted so far.
• Council Member Jensen's statement: Reviewed April 2018 contract presentation materials (PowerPoint, term sheet) and found no mention of alley-to-curbside recycling change. Stated contract language ("changes in service location must be approved by the city") requires council approval, not manager authority alone. Cited accessibility issues: residents without driveways unable to move cans from garage through snow without exemptions; many people pledge to stop recycling rather than comply.
• City Manager Urich's response: Outlined criteria laid out in his previous report: PDC reviews properties case-by-case if access to curb is difficult or more than three steps are required. Encouraged residents to call PDC (674-5176, option 1). Stated he plans to meet with West Bluff Council Thursday. Characterized decision as within his authority as city manager, disagreeing with Jensen's municipal attorney interpretation.
• Corporation Counsel's position: "I don't believe in—it's been my opinion that this is a council decision in my view it's a manager's decision but I respect your opinion as a municipal attorney I just disagree with it."
• Council Member Grab's statement: Noted she voted no on the contract precisely because details weren't worked out. District 2 disproportionately impacted: many alleys, senior citizens, street-parked cars limiting curbside access. Criticized council's "10 green lights one red light" vote, saying city lost negotiating leverage with PDC.
• Council Member Sear's concerns: Reported apartment residents in 5th District also unable to recycle after closure of two recycling centers. City Manager indicated apartments are commercial contracts (not residential program); landlords must add recycling to commercial contracts at cost, or residents can use county drop-off sites (Bartonville, Princeville).
• Uplands Association formal position (CJ Summers): Neighborhood association unanimously requests council directive to city manager to ensure alley pickup remains for all solid waste (garbage, lawn, recycling). Uplands designed with alleys as primary service corridor; all garages face alleys. Curbside pickup not more efficient on 30-foot streets with parked cars (vehicles extend 7 feet, leaving 16 feet centerline—equal to alley width). Residents concerned about aesthetic impact and animal access to waste if moved to front. No one asked citizens if they preferred curbside if it meant losing alley recycling frequency trade-off; neighbors prefer current alley service preserved.
• Outcome: Ongoing—city manager continuing discussions with PDC; no resolution yet.

Land Disposition Policy Allegations (Resident Diaz):

• Public comment: Resident Diaz alleged Community Development Director Black engaged in discriminatory land disposition process: different treatment compared to Habitat for Humanity (which receives parcels without open bidding), incomplete FOIA responses (pages missing; no standard IT coordination across departments), and alleged discriminatory email communications.
• Diaz's accusations: Previously sent email to council regarding perceived discrimination; received no response. Director Black later sent response email to others without copying Diaz, denying discrimination while allegedly undercutting Diaz's credibility (claiming insufficient financing, research, or seriousness). Black referenced 2012 policy allegedly not being followed consistently. Diaz quoted Black's own email admitting: "Mr. Diaz complained at our meeting that it was unfair of Habitat gets parcels without an open bidding process he now states that it's unfair he can't get a parcel without an open bidding process"—admitting inequitable treatment.
• Diaz's secondary allegation: City Manager Urich had opportunity to investigate months ago when Chief Diversity Officer sent email to him about Diaz's Fair Housing Commission appearance. Urich previously engaged with Diaz on south-end forum discussing Peoria's ranking as one of worst cities for African Americans. Urich failed to reach out, investigate, or address situation; "you failed as the city manager a leader in this city as a person by normalizing behavior that disempowers a resident."
• Request: Diaz formally requested council schedule land-use policy session for broader oversight of disposition practices.
• Outcome: No council member responded during meeting; matter remains unresolved.

Opposition

Video Gaming Terminal Ordinance:

• Number of speakers against: 2 (Councilwoman Akison and Council Member Jensen in debate; no public comment opposition recorded).
• Main concerns:
  1. Illinois gaming-revenue projections catastrophically failed; state now has more gaming operations than any outside Nevada.
  2. Illinois' unfunded pension liability worsened due to miscalculated gaming revenue; resulted in massive bond debt.
  3. Only the "most desperate cities, the poorest cities" adopt gaming operations—correlation inconsistent with Peoria's aspirations.
  4. Removal of two-year waiting period may incentivize expansion by existing operations without addressing underlying concerns about gaming proliferation.
  5. Lack of transparent council consensus on fee-raising; Corporation Counsel's interpretation of "no contrary opinion expressed" insufficient basis for major decision.
  6. State legislators allowed gaming lobbyists to draft legislation, resulting in systemic miscalculation.
• Most compelling argument: Councilwoman Akison's citation of Sunday's Journal Star investigation documenting Illinois' "bet on video gambling and lost"—a data-driven indictment of gaming's failed financial model and social costs.
• Vote breakdown: Akison, Jensen, Rock Rico voted no.

Recycling Curbside Service Change:

• Number of speakers against: 2 formal council positions (Council Member Jensen, Council Member Grab) + 1 neighborhood association president (CJ Summers, Uplands).
• Main concerns:
  1. Contractual authority: Approved contract language ("changes in service location must be approved by the city") requires City Council approval, not city manager unilateral decision; council was never explicitly shown or asked about alley-to-curbside shift in April 2018 presentation materials.
  2. Accessibility: Residents without driveways or on steep inclines cannot physically move recycling carts from garages to curbside in snow/winter conditions; elderly and disabled disproportionately impacted.
  3. Behavioral impact: Residents pledge to abandon recycling entirely if forced to curbside; defeats council priority of increased recycling frequency.
  4. Neighborhood design: Uplands and similar alley-oriented neighborhoods architecturally depend on alleys as primary service corridor; curbside contradicts foundational design.
  5. Operational efficiency: Curbside pickup on 30-foot streets with parked cars no more efficient than alley pickup; street parking extends 7 feet, leaving 16-foot centerline (equal to alley width); alley pickup avoids vehicle obstacles.
  6. Aesthetic and quality-of-life: Alley service contains waste spillage, animal access, and visual disorder; curbside placement on residential frontage degrades neighborhood appearance.
  7. Insufficient exemption process: Only 287 exemptions granted from 2,400 affected properties; case-by-case review via phone slow and inadequate; neighborhood association requests wholesale preservation for entire alley-dependent neighborhoods.
  8. Misrepresented citizen input: Citizens asked for increased recycling frequency but not offered choice of frequency vs. service location; decision conflates two separate preferences.
• Most compelling arguments:
  • Uplands Association's architectural evidence (street widths, alley design, garage orientation) demonstrating curbside operationally equivalent or inferior.
  • Council Member Jensen's document review showing April 2018 contract presentation materials contained no mention of alley-to-curbside shift, undermining city's claim of approved change.
  • Accessibility testimony from residents with mobility/age constraints.
• Organized groups: Uplands Residential Association formally opposed; President CJ Summers delivered formal statement on behalf of neighborhood association.

Land Disposition Practices Allegations:

• Number of speakers against: 1 (Resident Diaz).
• Main concerns:
  1. Discriminatory treatment: Community Development Director Black treats Habitat for Humanity differently (parcels without open bidding) vs. independent resident applicant (required to open bidding or excluded).
  2. FOIA non-compliance: Incomplete document production; no standard IT coordination to ensure legal compliance across city departments.
  3. Retaliation and credibility attack: Director Black sent response email to others without copying Diaz, mischaracterizing Diaz's prior communications, claiming insufficient research/financing, and undermining credibility without opportunity for response.
  4. Policy inconsistency: 2012 land disposition policy allegedly not applied uniformly; Director Black has excessive discretion.
  5. Failure of management oversight: City Manager Urich received notice months ago (via Chief Diversity Officer email about Fair Housing Commission appearance) and took no investigative or corrective action; normalized discriminatory behavior.
  6. Broader equity concern: Pattern creates narrative that Peoria is "a place of two classes" where outsiders or non-traditional applicants face barriers; undermines stated city goals of inclusive development and racial equity.
• Most compelling arguments:
  • Director Black's own email admitting inequitable treatment: "Mr. Diaz complained...that it was unfair of Habitat gets parcels without an open bidding process he now states that it's unfair he can't get a parcel without an open bidding process"—self-incriminating language.
  • City Manager's prior engagement with Diaz on racial equity issues (south-end forum on Peoria's poor African-American ranking) makes failure to investigate more culpable.

Support

Video Gaming Terminal Ordinance:

• Number of speakers for: 1 (Councilmember Regan Back).
• Main support argument: Ordinance is "making the best of a situation that is unfortunate"—state gaming already exists; local operator fee targets out-of-state gaming companies, not local bar/restaurant owners; compromise position balances state preemption with local revenue.
• Council Member Regan Back's statement: Acknowledged Journal Star's validity; characterized as "logical extension" of addressing state gaming failures; $1,000 operator fee focuses burden on gaming suppliers, not local establishments (which opposed fee increases at prior meeting).

Recycling Service (None recorded): No public speakers supported curbside service change. City Manager Urich cited PDC's intent to implement and case-by-case exemption process but did not defend curbside service substantively.

Project Details

Video Gaming Terminal Ordinance Amendment (19-0017):

• Case number: 19-0017
• Applicant / developer: N/A (city ordinance amendment)
• Current provision: No operator fee; two-year waiting period for compliant existing establishments seeking additional locations
• Proposed amendment:
  • Establish $1,000 per-machine operator fee (gaming terminal suppliers/providers, not establishment owners)
  • Remove two-year waiting period for compliant existing bars/restaurants seeking to open second location
  • Maintain $500 per-machine establishment license fee (no increase)
• Rationale (per Corporation Counsel): Operator fee targets gaming supply companies (many out-of-state); removal of waiting period spurs expansion by compliant local establishments and increases city revenue without burdening local business owners who opposed fee increases
• Outcome: Passed 7-3

Annexation and Rezoning – Illinois Route 91 (19-0022):

• Case number: 19-0022
• Location: 9505 North Illinois Route 91
• Current zoning: R3 (single-family residential) and undisclosed on west side of Route 91
• Proposed zoning: R6 (multifamily residential) and C-1 (general commercial)
• Associated approvals:
  • Consolidated initial and amended restated annexation agreement
  • Property annexation ordinance
  • Rezoning ordinance
  • Preliminary plat approval for Bhavani Subdivision
• Vote: Unanimous approval; no public comment recorded

Morton Street Rezoning (19-0024):

• Case number: 19-0024
• Location: Foot of Morton Street
• Proposed action: Adopt rezoning ordinance; rescind multifamily plan adopted by ordinance 17-64
• Vote: Unanimous approval

Main Street Rezoning (19-0025):

• Case number: 19-0025
• Location: 701 Main Street
• Current zoning: Class C (general commercial)
• Proposed zoning: Class B-1 (downtown commercial)
• Vote: Unanimous approval

Vote Breakdown

Video Gaming Terminal Ordinance (19-0017):

• Final: 7 Yes, 3 No
• Yes: Council Member Regan Back, Council Member Euler, Council Member Grab, Council Member Montelongo, Council Member More, Timothy Riggenbach, Council Member Turner
• No: Councilwoman Akison, Council Member Jensen, Council Member Rock Rico
• Abstentions / absences: None recorded

Annexation and Rezoning – Illinois Route 91 (19-0022):

• Final: Unanimous
• Individual votes not stated in transcript

Morton Street Rezoning (19-0024):

• Final: Unanimous
• Individual votes not stated in transcript

Main Street Rezoning (19-0025):

• Final: Unanimous
• Individual votes not stated in transcript

WCBU Public Radio Support (19-0023):

• Final: Unanimous
• Individual votes not stated in transcript

Cleaning Services Contracts Deferral (19-0020):

• Final: Unanimous (deferred to first meeting in February)
• Individual votes not stated in transcript

Edward Byrne Memorial JAGR Grant and Body Armor Vests (19-0021):

• Final: Passed (supermajority required; individual votes not stated)
• Two items: $63,633 budget amendment for federal grant receipt; $36,954.21 sole-source purchase of 20 ballistic body armor vests for Police Department Special Response Team
• Fire Recovery USA Non-Emergency Billing Contract (19-0021 subpart):
  • Final: Passed
  • Vote: Denis Cyr abstained due to business relationship; vote of remaining members not individually stated

Outcome & Next Steps

Video Gaming Ordinance (19-0017): Ordinance passed 7-3 and adopted. $1,000 per-machine operator fee (targeting gaming terminal suppliers) effective immediately; two-year waiting period removed for compliant existing establishments seeking additional locations within city.

Recycling Service Change: City Manager Urich pledged continued discussions with PDC but took no new council directive. City staff will continue case-by-case exemption review using criteria: difficulty accessing curb or more than three steps required. Residents encouraged to call PDC (674-5176, option 1). City Manager plans to attend West Bluff Council meeting Thursday to discuss further. Uplands Association's formal request for wholesale alley-service preservation for all affected neighborhoods remains unaddressed by council.

Land Disposition Policy Allegations: Resident Diaz requested council schedule land-use policy session for broader oversight of Community Development Director's discretion and land disposition processes. No council member responded or committed to scheduling session during meeting. Matter unresolved.

Routine Approvals Deferred / Passed:

• Cleaning services contracts (19-0020) deferred to first February meeting for further review.
• WCBU public radio support resolution passed unanimously; Bradley University to provide update on negotiations with WGLT at next council meeting.
• Appointment of Brandon Lot to Transportation Commission approved.
• Appointment of Lisa Fuller and Katherine Cross to Advisory Commission on Human Resources approved.
• Appointment of Chillon Dira Birch to Advisory Committee on Police and Community Relations approved.

Controversies & Context

Recycling Service Implementation Failure:

The PDC recycling contract, approved by council in April 2018 as a ten-year, ~$7 million-per-year agreement (city's largest single contract), has surfaced a major implementation dispute. Council Member Jensen systematically reviewed the April 2018 contract presentation materials (PowerPoint and term sheet) and found no explicit mention of alley-to-curbside recycling service change. The contract language states: "All recyclable materials will be collected at the curb but in locations where alley service is currently provided changes in service location must be approved by the city." Jensen interpreted this to require City Council approval for any service-location change; Corporation Counsel countered that city manager authorization satisfied the "city approval" requirement. This interpretive dispute, combined with real accessibility hardships for elderly, disabled, and driveway-less residents, has created a governance crisis.

Council Member Grab's prior no vote on the contract now appears prescient: she explicitly stated in April that "details needed to be worked out" on recycling specifics, and voted no because risks were unmanaged. She predicted tonight that the council had "cut off [their] legs" by voting 10-1 in favor without leverage; now city negotiating position with PDC is spent. The Uplands neighborhood association's formal opposition is particularly significant: the neighborhood designed its infrastructure around alley service (garages face alleys, no driveways, street parking extends into roadway), making curbside operationally equivalent or worse while destroying aesthetic and quality-of-life benefits of alley containment.

City Manager Urich's stance—that the decision is his authority, not council's—conflicts with council member Jensen's contractual reading and undermines council oversight of a seven-figure annual contract. No resolution has emerged; exemption process (287 of 2,400 properties so far) is insufficient and case-by-case, leaving residents in administrative limbo.

Alleged Discrimination in Land Disposition Practices:

Resident Diaz's testimony documents a pattern of alleged discriminatory treatment in the city's land lot disposition process. The core issue: Habitat for Humanity receives parcels without open competitive bidding, while independent resident applicants (Diaz) face requirements for open bidding or exclusion. Diaz's own research documents revealed that Community Development Director Black admitted this inequitable treatment in writing: "Mr. Diaz complained...that it was unfair of Habitat gets parcels without an open bidding process he now states that it's unfair he can't get a parcel without an open bidding process."

The allegation escalated when Director Black sent a response email defending his position without copying Diaz, instead distributing it to other city officials. Diaz characterized Black's email as credibility-attacking (claiming insufficient research, financing, seriousness) and retaliation for questioning the process. Diaz also alleged incomplete FOIA compliance: documents were missing from initial production, and city departments lack standardized IT procedures to ensure legal transparency compliance.

The most damaging allegation targets City Manager Urich: Diaz claims that months ago, the Chief Diversity Officer sent Urich an email notifying him of Diaz's Fair Housing Commission appearance and allegations of discriminatory treatment. Urich took no investigative action, failed to reach out to Diaz, and did not address the situation. Diaz framed this as management failure to address alleged civil-rights violations and normalization of discriminatory behavior. Diaz noted that Urich had previously engaged with him on racial-equity forums (discussing Peoria's poor ranking for African-American residents), making the non-response more culpable.

No council member publicly responded to Diaz's allegations during the meeting. The matter remains unresolved, though Diaz formally requested council schedule a land-use policy session for broader oversight of the disposition process and Community Development Director's discretion.

State Preemption and Gaming Revenue Failure:

Councilwoman Akison's opposition to the gaming ordinance was grounded in Illinois' statewide gaming policy failure. The Sunday Journal Star article cited documented that Illinois miscalculated gaming-revenue projections, resulting in unfunded pension liabilities and bond debt far exceeding actual gaming revenues. Illinois now has more gaming operations than any state outside Nevada. Akison characterized the ordinance as "only the most desperate cities, the poorest cities" adopting gaming—a pointed reference to Peoria's fiscal pressures. She also alleged that Illinois legislators allowed gaming lobbyists to draft enabling legislation, resulting in systemic policy failure. The council's 7-3 vote reflects ambivalence: majority framed the $1,000 operator fee as prudent revenue-raising given state preemption; minority opposed gaming expansion as socially destructive and fiscally unreliable.

Duration

• This meeting: Approximately 3.5 hours (estimated; exact time not stated in transcript, but meeting included two proclamations, extensive consent agenda, six rezoning/contract items, unfinished business discussion, new business initiatives, Golden Shovel Award announcement, Neighborhood Projects Challenge, and two substantial public comments).
• Total meeting: Approximately 3.5 hours

Other Notable Items

Golden Shovel Award Initiative (Councilwoman Akison): First-annual Golden Shovel Award created to recognize commercial properties and neighborhoods with excellent sidewalk snow removal. Fifteen awards to be presented at second council meeting in April. Uplands neighborhood association nominated for innovative community-funded contractor snow-removal program ($20 per household for entire winter; coordinated with city plows to avoid duplicate work). Nominally a carrot-vs.-stick approach to encourage voluntary compliance with existing sidewalk-snow ordinance (penalty: $50–$100, complaint-driven). Recognition awards to be promoted at neighborhood recognition meeting in February.

Neighborhood Projects Challenge 2019 (Councilman Montelongo): Councilman Montelongo challenged all five district neighborhood associations to propose three neighborhood improvement projects by March 1 deadline, focusing on: (1) lighting (repair broken fixtures, replace city lights); (2) infrastructure/repairs (doors, windows, gutters, downspouts, siding, sidewalks, driveways); (3) landscaping (plants, flowers, trees, grass, edging) and community cleanup. City Public Works Department pledged support. Goal: foster neighborhood cohesion, civic engagement, and visible improvement while coordinating with contractors/experts. Montelongo hoped to expand initiative citywide across all five districts to maximize community impact.

WCBU Public Radio Support (19-0023): Resolution supporting local public radio station WCBU passed unanimously. Council Member Regan Back emphasized significance of WCBU's decision to remain on-campus and in-city (announced last week; major win for community). Council Member Jensen noted council's enthusiastism and confirmed that Bradley University will provide update on negotiations with WGLT at next council meeting; no final plan yet, but update anticipated.

Human Trafficking & Fair Housing Initiatives: Council Member Jensen requested that Carroll Myron from Center for Prevention of Abuse present report on human trafficking issue and city programs within next month. Council Member Regan Back noted Dream Center symposium on human trafficking in Illinois scheduled for Saturday, January 26. Council Member Rectory Girls requested Chief of Police present recommendations from ACLU regarding police practices at next meeting.

Peoria Reads 2019 – "Can't We Talk About Something More Pleasant": Proclamation recognizing 2019 Peoria Reads program (one-city-one-book initiative in 18th year). Selected book: graphic memoir by cartoonist Roz Chast about caring for aging parents with dementia/physical decline. Methodist College and Peoria Public Library sponsoring events including keynote by gerontology professor, "deaf cafe" social on death, end-of-life symposium, baby boomers ball (April 13, live 60s/70s music). Free copies available at library; grant from National Endowment for the Arts funded program.

Peoria Playhouse Children's Museum – Hopscotch Event: Proclamation recognizing Peoria Playhouse's impact (75,000+ annual visitors, Explorer program for reduced admission/memberships, makerspace workshops). Hopscotch adult-only fundraiser event Thursday, January 24, 6–9 p.m., featuring 8 vendors with local beers/whiskey cocktails; proceeds support makerspace and monthly maker workshops.

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Critical Governance Notes

Contractual Interpretation Dispute: The recycling service controversy exposes a fundamental gap between council and city manager over contract approval authority. Council Member Jensen's textual reading of the contract language ("changes in service location must be approved by the city") suggests City Council-level approval; Corporation Counsel and City Manager interpret "city approval" as delegable to manager. No resolution was reached, leaving precedent ambiguous for future large contracts.

FOIA Compliance: Resident Diaz's allegation of incomplete FOIA document production and lack of standardized IT procedures across city departments is unaddressed. No council member committed to investigating FOIA compliance or standardizing document-production practices.

Land Disposition Policy Transparency: The allegation that Community Development Director Black has excessive discretion in lot disposition (differing treatment of Habitat for Humanity vs. independent applicants) and that 2012 policy is applied inconsistently remains unresolved. No council member committed to scheduling the land-use policy session Diaz requested.