I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

•  default Administrative Professional’s Week April 22-April 28, 2012

•  default Municipal Clerks Week April 29-May 5, 2012

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

•  default Financials - March 2012

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a)  default Approve Minutes of City Council Meeting – April 9, 2012

b)  default Accept and Place on File Railroad Advisory Board Minutes – January 26, 2012

c)  default Accept and Place on File Stormwater Advisory Board Minutes – February 22, 2012

d) Approve Bills – default 03/30/12-04/05/12 ,  default 04/06/12-04/12/12

e) Approve Payroll –  default 03/19/12-04/01/12

f)  default Authorize Rochelle Elementary Schools Fun Run Event - May 18, 2012

g) default Authorize Rochelle Lions Club Tootsie Pop Fund Raiser – May 4, 2012

2) CDAP Grant 08-241005 Close Out – 1st Avenue Lift Station (Public Hearing)

3) Budget Fiscal Year 2012-13(Public Hearing and Action)

4) Resolution Establishing Minimum/Maximum Wage Rates for Fiscal Year 2012-13

5) Ordinance Amending Chapter 6 & Chapter 26 – Alcoholic Beverages & Business Regulations

6) Resolution Establishing Utility Services Price Schedule for Electric

7) Extension of Deadlines in the Agreement for Wastewater Conveyance and Treatment between the City and Village of Hillcrest

8) Purchase of Asphalt Paver – Street Department

9) Ordinance Amending Article IX (Seized and Impounded Vehicles) of Chapter 94

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 - CDAP Grant 08-241005 Close Out – 1st Avenue Lift Station (Public Hearing)

References: 

default Notice of Public Hearing

default Memo from Grant Administrator Ellen Burgeson

Recommended Action:

Open the Public Hearing related to CDAP Grant 08-241005

History and Fact:

In 2009 the City of Rochelle received a grant award of $720,000 through the Community Development Assistance Program (CDAP), #08-241005, to assist with the construction of 600 lineal feet of sanitary sewer and an upgrade to the 1st Avenue lift station. These infrastructure improvements were necessary at that time to accommodate the construction of a 135,000 sq. ft. addition to the Sara Lee facility. The Sara Lee expansion has since been constructed and equipped at total cost in excess $17 million. As a result 17 existing jobs were retained and over 60 new jobs were created (substantially more than the 31 positions required under the terms of the grant).

Discussion:

The City is in the process of closing out the identified grant. The public hearing is an opportunity for the public to give input on the City's performance under the grant.

Recommendation:

Close the Public Hearing related to CDAP Grant 08-241005

Agenda Item #3 - Budget Fiscal Year 2012-13(Public Hearing and Action)

References: 

default 2012-13 Proposed Budget - Pubic Hearing and Adoption

65 ILCS 5/8-2-9.1 et seq (not attached)

Recommended Action:

1. Conduct Public Hearing.

2. Consider Fiscal Year 2012-13 Budget.

History and Fact:

The Preliminary Budget was prepared and submitted to the City Council on March 6, 2012. Committee of the Whole Budget Workshops were subsequently held on March 6, March 21, April 10, and April 16 to review the budget and answer questions. The date for the Public Hearing, required by State law, was set for April 23, 2012. Final action on the Budget is required on or before April 30, 2012.

Discussion:

The Preliminary 2012-13 Budget has been available for public inspection since March 6th. The final Proposed 2012-13 General Fund revenues are budgeted at $8,329,210. This represents an increase of approximately 3% over the approved 2011-2012 budget. Budgeted expenses total $8,295,458 which is also approximately 3% over the 2011-12 budget and results in a budget surplus of $33,752. The combination of the General Fund with Special Revenue Funds, Enterprise Funds, Internal Service Funds, Trust and Agency Funds and Capital Project Funds results in budgeted revenues totaling $65,565,172 and budgeted expenses totaling $66,416,119. The combination of the current year budgeted revenues and accumulated capital project related reserves will exceed the budgeted expenses. Illinois statutes require that the City conduct a public hearing on the proposed budget to allow citizens the opportunity to provide comments. After the Council returns to regular session, members of the Council can propose modifications to the proposed budget, each of which will be voted on by the Council. The proposed budget as amended will then be subject to a final Council vote for approval.

Recommendation:

1. Conduct Public Hearing.

2. Approve Fiscal Year 2012-13 Budget.

Agenda Item #4 - Resolution Establishing Minimum/Maximum Wage Rates for Fiscal Year 2012-13

References:

default Resolution Establishing Minimum/Maximum Wage Rates for 2012-2013

default Exhibit A Minimum/Maximum Wage Rates

Rochelle Municipal Code Sections 2-261 and 2-262 (not attached)

Recommended Action:

Consider Resolution Establishing Minimum/Maximum Wage Rates for Fiscal Year 2012-13

History and Fact:

The Municipal Code of the City of Rochelle requires that the City Council annually approve a resolution establishing minimum/maximum wage rates for all position classifications within the City.

Discussion:

The proposed wage rate resolution is based upon a review completed by the Human Resource Manager. It applies to all employees and is based on job categories as defined by the Equal Employment Opportunity Commission. The rates included in this resolution are consistent with those that were incorporated into the proposed City Budget for Fiscal 2012-13.

Recommendation:

Approve Resolution Establishing Minimum/Maximum Wage Rates for Fiscal Year 2012-13

Agenda Item #5 - Ordinance Amending Chapter 6 & Chapter 26 – Alcoholic Beverages & Business Regulations

References:

default Ordinance Amending Chapter 6 & Chapter 26 - Alcoholic Beverages (Public Hearing & Action)

Recommended Action:

Consider Ordinance Amending Chapter 6 & Chapter 26

History and Fact:

On January 9, 2012 the Mayor and City Council approved an ordinance amending Chapter 6 (Alcoholic Beverages) to delete resort licenses and allow Sunday and holiday sales (excluding Christmas Day and Christmas Eve) effective immediately. A proposed new liquor license fee schedule was not approved at that time. On April 5, 2012 the Administrative Committee of the City Council met to discuss, among other items, changes to the City's Liquor License fees and the implementation of an initial application fee. Following discussion among the committee members, a consensus was reached to recommend the modification of liquor license fees as presented including the addition of an initial application fee.

Discussion:

The proposed ordinance, drafted by Attorney Cooper, was written in accordance with the recommendations of the committee. If approved, the annual fee for most of the liquor licenses will increase by $100, the fee for the "club" license will decrease by $100 (due to the change in Sunday sales) and an initial application fee of $500 will be implemented. Upon approval the ordinance and related fees will be effective June 1, 2012.

Recommendation:

Approve an Ordinance Amending Chapter 6 (Alcoholic Beverages) and Chapter 26 (Businesses and Business Regulations) to Establish an Initial Application Fee and Amend Fees for Liquor Licenses

Agenda Item #6 - Resolution Establishing Utility Services Price Schedule for Electric

References: 

default Average Monthly Electric Charges Per Rate Class

default Resolution Establishing Utility Services Price Schedule for Electric

Recommended Action:

Consider Approving a Resolution Establishing Utility Services Price Schedule for Electric

History and Fact:

The last cost of service study used to design the rates for Rochelle Municipal Utility (RMU) electric customers was completed in 1998. Since that time the method for providing electricity, diversity of RMU customers and the addition of the Prairie State Project have significantly changed the electric business at RMU.

Discussion:

Following authorization by the Mayor and Council, an Electric Cost of Service Forecast report was prepared by the Baker Tilly firm and presented jointly to the City Council and Utility Advisory Board (UAB) in December of 2011. The report included a recommendation to increase the electric rates by approximately 14% over two years in order to more closely meet the cost of providing service. Based on Baker Tilly's recommendation, the proposed rate schedules represent an overall increase of approximately 7%. The increase and proposed rate schedules were discussed at the April 9, 2012 City Council meeting and held over pending further dialogue with the City's largest industrial electricity user.

Recommendation:

Approve a Resolution Establishing Utility Services Price Schedule for Electric

Effective May 1, 2012

Agenda Item #7 - Extension of Deadlines in the Agreement for Wastewater Conveyance and Treatment between the City and Village of Hillcrest

References:

default Memo from City Attorney Alan Cooper

default Excerpts from Agreement

default Letter from Hillcrest Village President Kim Whalen

Recommended Action:

Consider authorizing an extension of deadlines in the Agreement for Wastewater Conveyance and Treatment between the City of Rochelle and the Village of Hillcrest

History and Fact:

Representatives from the City of Rochelle and the Village of Hillcrest worked diligently for several years to develop an agreement so that the sanitary sewer needs of Hillcrest could be served through the City's Wastewater Treatment Plant. The Agreement for Wastewater Conveyance and Treatment was approved by the Mayor and Council on December 13, 2010 and later modified to extend the time frames for completion of the Hillcrest system.

Discussion:

Included in the agreement are provisions which require the Village of Hillcrest to adopt impact fees and lag time fees for residential development that are identical to those adopted by Rochelle within 120 following approval of the agreement. On February 28, 2012 Village President Kim Whalen sent a letter to the City requesting an extension to this deadline. Due to a change in administration and legal counsel, Village officials were unaware of the required action and the deadline has since passed. The current Hillcrest Attorney, Paul Keller, has requested an extension of 180 days from the date of council approval so the Village can take the actions necessary to comply with the requirement.

Recommendation:

Authorize an extension of the deadlines in Article IX of the Agreement for Wastewater Conveyance and Treatment between the City of Rochelle and the Village of Hillcrest for an additional 180 days from the date of council approval.

Agenda Item #8 - Purchase of Asphalt Paver – Street Department

References:

default Memo from Superintendent of Streets, Cemetery & Airport Don Elliott

default Sales Order from Casey Equipment Company

Recommended Action:

Consider the purchase of an asphalt paver for the Street Department.

History and Fact:

The 2012-13 Street Department Capital Outlay Budget includes $83,000 for the purchase of an asphalt paver. The proposed paver will replace a 1982 pull type paver that has served its useful life and can no longer be repaired or rebuilt.

Discussion:

Superintendent of Streets Don Elliott has located a new 2010 LeeBoy 7000 Series self propelled track paver at Casey Equipment in Cherry Valley. This particular paver is available for $77,875, which is a substantial discount when compared to $90,500 for a 2012 model, and will be capable of paving both roads and parking lots. In addition, there are no local dealers within Rochelle that are able to provide this type of equipment. Considering the limited competition for this type of equipment, availability of parts and service in Cherry Valley and discounted price, City staff recommends that the Council waive the competitive bidding process by a two-thirds vote of all members holding office and authorize the purchase of the 2010 paver as proposed.

Recommendation:

Approve the purchase of a 2010 LeeBoy 7000 Series track paver from Casey Equipment for a total of $77,875.

Agenda Item #9 - Ordinance Amending Article IX (Seized and Impounded Vehicles) of Chapter 94

References:

default Memo from Police Chief Eric Higby

default Ordinance Amending Article IX (Seized and Impounded Vehicles) of Chapter 94

Recommended Action:

Consider an Ordinance Amending Article IX

History and Fact:

On March 28, 2011 the Mayor and Council approved an ordinance allowing for the seizure and impoundment of vehicles used in connection with specific offenses. The ordinance provides for the assessment of a $500 administrative fee in addition to applicable fines, costs, towing and storage fees. On January 9, 2012 an amendment to the ordinance was approved by the Council in order to comply with new legislation passed by the State of Illinois. This legislation requires that, should the owner choose to challenge the seizure, the administrative hearing be conducted by a hearing officer who has been licensed to practice law in the State of Illinois for at least 3 years.

Discussion:

Attorney Jim Ahlberg was subsequently hired to preside as the hearing officer at the administrative hearings. After functioning in this role for the past few months, Attorney Ahlberg, Attorney Cooper and Chief Higby have recommended some changes to the ordinance which will allow the hearing officer further discretion and clarify the hearing procedures.

Recommendation:

Approve an Ordinance Amending Article IX (Seized and Impounded Vehicles) of Chapter 94 (Traffic and Vehicles) of the Municipal Code of the City of Rochelle

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

•  default National Telecommunicators Week April 8-14, 2012

IV. REPORTS AND COMMUNICATIONS:

• Mayor - Appointment of Sue Messer to Police and Fire Pension Boards for a Term to Expire May 1, 2014

• Council Members

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a)  default Approve Minutes of City Council Meeting – March 26, 2012

b) default Approve Bills – 03/09/12-03/15/12 ,  default 03/16/12-03/29/12

c)  default Approve Payroll – 03/05/12-03/18/12

d)  default Authorize the City’s Assistance with the Hospital Hustle 5K Fun Run/Walk – June 2, 2012

2) City of Rochelle Fund Balance Policy

3) Resolution Granting Real Estate Tax Abatement to Illiana Realty, LLC and Central Big R Stores, Inc.

4) Hub City Car Wash Variance Requests

5) Rochelle Community Consolidated School District 231 Final Planned Unit Development

6) Resolution Establishing Utility Services Price Schedule for Electric

7) Resolution Authorizing Acceptance of Waste Generated Outside the Service Area at Rochelle Muncipal Landfill #2

8) Agreement for EDA Grant Engineering and Grant Administration

9) Agreements with Total Logistic Control and Coated Sand Solutions – Rail Improvements

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

 Agenda Item #2 - City of Rochelle Fund Balance Policy

References:

default Memo from Finance Manager Chris Frye

default City of Rochelle Fund Balance Policy

Recommended Action: Consider Adopting a City of Rochelle Fund Balance Policy

History and Fact: In 2009 the Government Accounting Standards Board (GASB) issued Statement No. 54 in order to provide clarity and consistency to the reporting of fund balance information. Statement 54 establishes the following five fund balance classifications and describes the constraints associated with spending the various funds: nonspendable, restricted, committed, assigned and unassigned. Until now the City of Rochelle has categorized fund balances into restricted and unrestricted.

Discussion: In order to be compliant with GASB 54, the City of Rochelle must approve a fund balance policy by April 30, 2012 and issue the fiscal year 2012 financial statements in accordance with the policy. The proposed policy incorporates the new terminology and establishes the minimum level (target range) at which the projected end-of-year fund balance should be maintained. In addition, the policy includes actions that the City Manager will take to reach goals established in the adopted budget. Adoption of this policy will not alter the overall dollar value of the fund balance.

Recommendation: Adopt a City of Rochelle Fund Balance Policy

 Agenda Item #3 - Resolution Granting Real Estate Tax Abatement to Illiana Realty, LLC and Central Big R Stores, Inc.

References:

default Memo from Chamber of Commerce and Business Development Director Peggy Friday

default Resolution Granting Real Estate Tax Abatement

Recommended Action: Consider Granting Real Estate Tax Abatement to Illiana Realty, LLC and Central Big R Stores, Inc.

History and Fact: A Development Agreement between the City of Rochelle, Illiana Realty and Central Big R Stores was approved by the Mayor and Council at the March 26, 2012 City Council meeting. The agreement memorialized a variety of incentives, including real estate tax abatements, which are being provided to promote the redevelopment of the former Wal-Mart facility located at 1240 North 7th Street.

Discussion: The Big R Project was evaluated to determine the anticipated economic impact to the community. Illiana Realty's redevelopment of the property will include the construction of a warehouse addition of at least 12,000 square feet, renovation of the existing structure and donation of land in excess of 1 acre for expansion of the bike path. In addition, the Big R store will provide a minimum job creation of 40 full-time positions, estimated sales of $7 million in year one of operation and $8 million in years two and three. Based on this evaluation, a five year abatement schedule on new improvements has been proposed as follows: 90% for year one, 75% for year two, 60% for year three, 45% for year four, and 30% for year five. The redevelopment of this anchor facility will help maintain the vitality of the IL Route 251 North commercial and retail corridor.

Recommendation: Approve Resolution Granting Real Estate Tax Abatement to Illiana Realty, LLC and Central Big R Stores, Inc.

Agenda Item #4 - Hub City Car Wash Variance Requests

References:

default Memo from Community Development Director Chris Limas

default Ordinance Approving Certain Variances for Property Located at 1185 N 7th Street

Recommended Action: Consider an Ordinance Approving Variances at 1185 N. 7th Street

History and Fact: The City has received a request from Dave Hoffmann, on behalf of Hub City Car Wash, for three variances at 1185 N 7th Street. These variances are being requested due to a planned expansion of the business and the future Illinois Department of Transportation (IDOT) Illinois Route 251 widening project.

Discussion: The petitioner has requested a variance to the front yard parking setback to allow a 9 foot setback instead of the required 20 foot setback. Part of the front yard will be taken for the IDOT improvements and a 9 foot parking setback will match that of the property directly north of the car wash. In addition, a side yard buffer variance has been requested to allow a 5 foot buffer instead of the required 10 foot buffer. This variance will allow the petitioner to add a 4th self-service bay while still providing an appropriate turning radius. The third variance requested is to allow the relocation of the existing sign. The existing sign will need to be moved due to the reconfiguration of the driveway as part of the Illinois Route 251 project and staff believes the proposed sign location is the only location in the front yard of the business that will not affect traffic flow following the IDOT improvements. The proposed location of the sign face will be about 2 feet from the right-of-way with the sign pole about 7 feet from the right-of-way. At the April 2, 2012 meeting of the Planning and Zoning Commission the variance requests were considered. The commission voted 6-0, to recommend approval of the three variances as requested at 1185 N 7th Street due to the appropriateness of the expansion and hardship created by the Illinois Route 251 widening project.

Recommendation: Authorize an Ordinance Approving Variances for Property Located at 1185 N. 7th Street

Agenda Item #5 - Rochelle Community Consolidated School District #231 Final Planned Unit Development

References:   

default Memo from Community Development Director Chris Limas

default Ordinance Approving the Final Planned Unit Development

Recommended Action: Consider an Ordinance Approving a Final Planned Unit Development for Rochelle Community Consolidated School District 231

History and Fact: On January 22, 2007 the Mayor and City Council approved the Planned Unit Development (PUD) Plan and Preliminary Plat for the Kings Crossing development. Included in this development was a future elementary school site located on the west side of 20th Street, north of Flagg Road. Rochelle Community Consolidated School District 231 has now petitioned for approval of a Final PUD (site plan) in order to construct a 72,000 square foot elementary school on Lot #2 of the original development.

Discussion: The Final PUD for Rochelle Community Consolidated School District 231 includes a 48.99 acre lot with the proposed structure located on the south half of the parcel. The site will have two access points off of 20th Street, north and south of the proposed school, and parking located on the west, north and south sides of the school. In addition, water will be provided from a main along 20th Street, sewer will connect to the Akesson Park Lift Station and stormwater management will be provided by two detention ponds that will be constructed on property north of the school. On April 2, 2012 the Planning and Zoning Commission held a public hearing to review Rochelle Community Consolidated School District 231's petition and voted to recommend approval by a vote of 7-0 subject to the following: posting of required surety and approval of final engineering, a final storm water management, and a final landscape plan.

Recommendation: Authorize an Ordinance Approving a Final Planned Unit Development for Rochelle Community Consolidated School District 231

Agenda Item #6 - Resolution Establishing Utility Services Price Schedule for Electric

References:

default Average Monthly Electric Charges Per Rate Class

default Resolution Establishing Utility Services Price Schedule for Electric

Recommended Action: Consider Approving a Resolution Establishing Utility Services Price Schedule for Electric

History and Fact: The last cost of service study used to design the rates for Rochelle Municipal Utility (RMU) electric customers was completed in 1998. Since that time the method for providing electricity, diversity of RMU customers and the addition of the Prairie State Project have significantly changed the electric business at RMU. In June of 2011, the Mayor and Council authorized the City Manager to engage the firm of Baker Tilly for consulting services related to electric revenue requirements, cost of service and rate design for RMU.

Discussion: An Electric Cost of Service Forecast report was subsequently prepared and presented jointly to the City Council and Utility Advisory Board (UAB) on December 12, 2011. The report includes a recommendation to revise the electric rates in order to more closely meet the cost of providing service. City Manager Plyman recommended that the rate increase of 14% be phased in over two years to ease the impact on the customers. Therefore, the proposed rate schedules have been drafted by Baker Tilly and represent an overall rate increase of approximately 7%. A typical residential customer with an average electric bill of $67.00 will see an increase of $6.19 per month. The UAB did not provide a formal recommendation but indicated they understood the need for an electric rate increase.

Recommendation: Approve a Resolution Establishing Utility Services Price Schedule for Electric

Effective May 1, 2012

Agenda Item #7 - Resolution Authorizing Acceptance of Waste Generated Outside the Service Area at Rochelle Muncipal Landfill #2

References:

default Memo from Water/Water Reclamation Superintendent Kathy Cooper

default Request for Removal of Service Area Restrictions from Rochelle Waste Disposal

default Letter of Understanding from Rochelle Waste Disposal

default Resolution Authorizing the Acceptance of Waste Generated Outside the Service Area at Rochelle Municipal Landfill #2

Recommended Action: Consider Adopting a Resolution Authorizing the Acceptance of Waste Generated Outside the Service Area

History and Fact: On April 11, 2007 the Mayor and Council approved an Application for Local Siting Approval for the Rochelle Municipal Landfill #2 Expansion. This approval included several special conditions. Of those special conditions, number 36 states that "[t]he expansion shall not accept any waste generated outside the service area defined in the siting application, except as specifically approved otherwise by the City Council in writing." In September of last year, Rochelle Waste Disposal sent a letter to the City requesting permission to accept waste from outside the defined service area due to economic reasons. On September 26, 2011 the Public Works Committee of the City Council met to consider the request. Following further explanation by the operator, the committee recommended that the City Manager take the steps necessary to grant the request.

Discussion: Prior to presenting the request to the full Council, City staff met with Ogle County and Creston officials to discuss the expansion and other concerns associated with the landfill. Among other topics, Ogle County and Creston voiced concerns regarding the calculation of the local surcharge fees. After multiple discussions and letters between the parties, Rochelle Waste Disposal has agreed to pay local surcharge fees incurred during 2010, 2011, and going forward at a rate of $1.27 per ton regardless of the annual volume of waste received. In addition, the operator has committed to installing the radiation detector and observation platform as required in Special Conditions 9 and 10. Superintendent Kathy Cooper has confirmed that Ogle County and Creston representatives are satisfied with the resolution provided via the March 15, 2012 letter of understanding and recommends proceeding with the Public Works Committee recommendation to grant permission to accept waste outside the service area.

Recommendation: Adopt a Resolution Authorizing the Acceptance of Waste Generated Outside the Service Area at Rochelle Municipal Landfill #2

Agenda Item #8 - Agreement for EDA Grant Engineering and Grant Administration

References:

default Agreement between the City and Fehr Graham and Associates

Recommended Action: Consider Agreement for EDA Grant Engineering and Grant Administration

History and Fact: The City of Rochelle submitted an application to the Economic Development Administration (EDA) in 2011 for funding assistance to improve the water and sanitary sewer system in the southeast industrial region and to construct rail to serve the Coated Sand Solutions facilities. On March 15th the City received notification from the U.S. Department of Commerce that an EDA Financial Assistance Award was approved in an amount not to exceed $2,488.461. This award is fifty percent of the approved project cost of $4,976,923. A majority of the City's required "local share" will be available through grant funds awarded by the Bureau of Railroads and Illinois Department of Commerce and Economic Opportunity.

Discussion: Approval of the EDA funding allows the City to move forward with the design and construction of an additional $1.8 million in rail improvements. These improvements include the extension of the City of Rochelle Railroad from the eastern edge of the Illinois River Energy property, across Steward Road, to a terminus north of the eastern edge of the Coated Sand Solutions property. On March 28, 2012 the City issued a "Request for Qualifications" (RFQ) in order to identify firms interested in performing the engineering portion of the project. The only firm responding to the RFQ by the deadline was Fehr Graham and Associates. The associated agreement, submitted by Fehr Graham and Associates, includes all engineering aspects of the project that are eligible through the EDA grant. These aspects include design of the remaining rail improvements, construction engineering not covered in the Bureau of Railroads Track Construction Grant Agreement, and administration of the EDA grant for a fee of $311,800. Approval of this agreement is critical in order to meet the requirements included in the Bureau of Railroads Agreement and complete the rail required for Coated Sands Solutions to be operational by August of 2012.

Recommendation: Authorize the City Manager to sign an agreement with Fehr Graham and Associates for services related to EDA Grant Engineering and Grant Administration.

Agenda Item #9 - Agreements with TLC (Ryder) and Coated Sand Solutions – City Rail Expansion

References:

default Memo from Economic Development Director Jason Anderson

default Agreement between the City and Coated Sand Solutions

default Agreement between the City and Total Logistic Control

Recommended Action: Consider Agreements with Total Logistic Control and Coated Sand Solutions related to City Rail Improvements

History and Fact: Rail car volumes on the City Industrial Rail (CIR) are expected to increase significantly in the future due to the new Coated Sand Solutions and Nippon Sharyo facilities. Economic Development Director Jason Anderson estimates that volumes may even double within the next 24 months. In order to provide additional storage track for both inbound and outbound rail cars, a 4,000 foot rail expansion of the interchange yard serving the Union Pacific line is being proposed. These rail improvements will not be paid for through any of the grant funds that have been secured.

Discussion: Via the proposed agreement, Coated Sand Solutions (CSS) has agreed to deposit $750,000 with the City by May 1, 2012 in order to finance these rail improvements. The City will then complete the improvements based on the proposed plan and cost estimate. CSS will be reimbursed from the additional switching revenues at a monthly rate equal to $72 times the total number of filled rail cars delivered to or shipped from CSS on the CIR. Due to the mutual benefit of the improvements, Total Logistic Control (TLC), which provides switching services on the CIR, has agreed to share in the monthly reimbursement. Of the $300 switch fee paid by CSS per loaded rail car the reimbursement will be shared as follows: TLC will reimburse $48 of its $225 portion and the City will reimburse $24 of its $75 portion. The monthly reimbursement will continue until the initial deposit has been totally repaid which is anticipated to take less than three years. Staff recommends approval of both agreements for the purpose of expanding the CIR's rail storage capacity.

Recommendation: Authorize the City Manager to sign an agreement between the City and Total Logistic Control.

Authorize the City Manager to sign an agreement between the City and Coated Sand Solutions.

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

•  default Financials - February 2012

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a)  default Approve Minutes of City Council Meeting - March 12, 2012

b)  default Accept and Place on File Minutes of Airport Advisory Board Meeting - December 12, 2011

c)  default Approve Bills - 03/02/12 - 03/08/12 default 03/09/12 - 03/15/12

d) default Approve Payroll - 02/20/12 - 03/04/12

e)  default Approve Lincoln Highway Heritage Festival Request - August 17-19. 2012

f) default Resolution Lincoln Highway Heritage Festival Request - August 19, 2012

g) default Authorize the Use of City Hall for National Day of Prayer - May 3, 2012

2) South Main and 4th Avenue Water Main Project

3) Development Agreement between the City, Illiana Realty and Central Big R Stores

4) Agreement with Fehr Graham and Associates –EDA Grant Engineering and Grant Administration

VII. DISCUSSION ITEMS:

1) default City Rail Expansion Plans

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

BUSINESS ITEMS:

Agenda Item #2 - South Main and Fourth Avenue Water Main Project

References:

default Memo from Water/Water Reclamation Superintendent Kathy Cooper

default Recommendation from Willett Hofmann & Associates

Recommended Action:        

Consider bids for the South Main and Fourth Avenue Water Main Project

History and Fact:     

In 2011 the Illinois Department of Transportation, through the Economic Development Program, approved a request for funding assistance to
reconstruct and widen South Main Street from Steward Road to Steam Plant Road.  The multi-year roadway
reconstruction project is anticipated to begin in fiscal year 2014-15.  In advance of the roadway reconstruction, the
replacement of approximately 1100 feet of 12-inch water main on South Main Street from Steam Plant Road to the Erie Foods entrance is proposed.  In addition, the replacement of 350 feet of
six-inch water main on Fourth Avenue, from South Main Street to North 3rd Street, is included due to deterioration of the main.

Discussion:

Subsequent to the required public notice, bids for the South Main and Fourth Avenue Water Main Project were
opened by the City Clerk on March 14, 2012 with eight contractors submitting bids.  Staff and our consultant, Willett
Hofmann & Associates, have reviewed the bids and recommend the acceptance of the apparent low bidder, Stenstrom Excavation & Blacktop Group, with a
bid of $199,140.50.  The proposed 2012-13 Water Division Capital Outlay Budget includes $267,125 for the replacement of this water main.  Following the bid award,
the project is expected to begin in late April or early May and be completed within 60 days.

Recommendation:    

Accept the bid for the South Main and Fourth Avenue Water Main Project from Stenstrom Excavation & Blacktop Group for a total of $199,140.50 and reject all other bids.

Agenda Item #3 Development Agreement between the City, Illiana Realty and Central Big R Stores

References:   

default Memo from Building Inspector Kip Countryman to Chris Limas

default Memo from Building Inspector Kip Countryman to Attorney Alan Cooper

default Development Agreement between the City, Illiana Realty and Central Big R Stores

default Sales Tax Rebate Calculation

default Ordinance Approving Development Agreement

Recommended Action:        

Consider Development Agreement between the City, Illiana Realty and Central Big R Stores

History and Fact:     

A variety of incentive options including:  real estate tax abatements, sales tax rebates and waiving and/or reducing specific City fees were discussed at the June 13,
2011 City Council meeting in an effort to spur the redevelopment of the former Wal-Mart facility on Route 251.  Following the discussion, the Mayor and Council voted to support offering incentives in
order to maintain the vitality of the northern gateway commercial corridor.

Discussion:    

Earlier this month the former Wal-Mart facility, located at 1240 North 7th Street, was purchased by Illiana Realty, LLC.   The owner intends to develop the property for use as a "Big R" farm, home and ranch
retail store.  Improvements will include the construction of a 12,000 square feet warehouse addition and renovation of the existing structure with completion no later than September 1, 2012.  Once operational, the Big R will employ a
minimum of 40 full-time employees. Based on the development of the property as outlined, and the anticipated economic impact, the following incentives are proposed:

Real Estate Tax Abatement – Abatement of the City's real estate taxes attributed to any newimprovements over five years as follows: 90%, 75%, 60%, 45% and 20%.

Sales Tax Rebate – Rebate of ½ of the 1% portion of the Operator's Retail Occupation Tax for a period of three years.  (Findings listed in the ordinance, and substantiated by memos from Building Inspector Countryman, support the ability to offer this incentive.)

Stormwater – Existing impervious surface areas will not be subject to current stormwater provisions of the Municipal Code.

Electric Rate – The facility will qualify for the Commercial Redevelopment Electric Rate #190 which provides a discounted rate for the first twelve months.

Building Permit Fees – Waiver of building permit fees for new construction and renovations for one year.

Codes – Un-renovated portions of the facility will remain subject to the codes that were in affect at the time of construction, providing it was in compliance at that time.

Recommendation:    

Authorize an Ordinance Approving a Development Agreement between the City, Illiana Realty and Central Big R Stores

Agenda Item #4 Agreement with Fehr Graham and Associates –EDA Grant Engineering and
Grant Administration

References:   

default Agreement with Fehr Graham and Associates - EDA Grant Engineering and Grant Administration

Recommended Action: 

Consider an Agreement with Fehr Graham and Associates

History and Fact: 

The City of Rochelle submitted an application to the Economic Development Administration (EDA) in 2011 for funding assistance to improve the water and sanitary sewer system in the southeast industrial region and to construct rail to serve the Coated Sand Solutions facilities.  On March 15th the City received notification from the U.S. Department of Commerce that an EDA Financial Assistance Award was approved in an amount not to exceed $2,488,461.  This award is fifty percent of the approved project cost of $4,976,923.  Most of the City's required "local share" will be available through grant funds awarded by the Bureau of Railroads and Illinois Department of Commerce and Economic Opportunity.

Discussion:  

Approval of the EDA funding allows the City to move forward with the design and construction of an additional $1.8 million in rail improvements.  These improvements include the extension of the City of Rochelle Railroad from the eastern edge of the Illinois River Energy property, across Steward Road, to a terminus north of the eastern edge of the Coated Sand Solutions property.  The proposed agreement includes all engineering aspects of the project that are eligible through the EDA grant. These aspects include design of the remaining rail improvements, construction engineering not covered in the Bureau of Railroads Track Construction Grant Agreement, and administration of the EDA grant for a fee of $311,800.  Approval of this agreement is critical in
order to meet the requirements included in the Bureau of Railroads Agreement and complete the rail required for Coated Sands Solutions to be operational by August of 2012.

Recommendation: 

Approve an agreement with Fehr Graham and Associates for services related to EDA Grant Engineering and Grant Administration.

City of Rochelle Council Chambers

420 N. 6th Street

Rochelle, IL 61068

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

• default Financials - January 2012

• default Employee Introduction - Michelle Knight

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) default Approve Minutes of City Council Meeting - February 13, 2012

b) Approve Bills – default 02/03/12 - 02/09/12 , default 02/10/12 - 02/16/12 , default 02/17/12 - 02/23/12 , default 02/24/12 - 03/01/12

c) Approve Payroll – default 01/23/12 - 02/05/12 , default 02/06/12 - 02/19/02

d) default Resolution Regarding the Release of Executive Session Minutes

2) Electric Division Building Improvement Project – Contract 1

3) Permitted Facilities Agreement with BP Products – Installation of a Multi-Use Path

4) Agreement with Rochelle Disposal Services –Electronic Devices and Appliances

5) Rezoning and Preliminary Planned Unit Development Plan and Plat for the Resubdivision of Lot 4 in the Caron Ridge Subdivision

6) Ordinance Amending Telecommunications Tax Rate

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

BUSINESS ITEMS:

Agenda Item #2 - Electric Division Building Improvement Project–Contract 1

References:

default Recommendation from Willett Hofmann & Associates

default Bid Tabulation

Recommended Action:

Consider bids for the Electric Division – 2012 Building Improvements Project – Contract 1

History and Fact:

Several of the buildings in the Electric Division complex are in need of repair. The engineering firm of Willett Hofmann & Associates has evaluated the building exteriors and roofs and designed an improvement project and bid specifications based on their findings. The entire project includes the removal of damaged brick, installation of a new masonary wall, repair and/or replacement of existing masonry walls, roof modifications and the installation of new membrane roof systems. For budget purposes the project has been broken into two contracts (Contract 1 & 2). Contract 1 consists of the various masonary improvements and roof modifications while Contract 2 includes the installation of the new roof systems.

Discussion:

Subsequent to the required public notice, bids for Contract 1 were opened by the City Clerk on February 10, 2012 with two contractors submitting bids. Staff and our consultant, Willett Hofmann & Associates, have reviewed the bids and recommend the acceptance of the apparent low bidder, Bruns Construction, with a bid of $117,000. The 2011-12 Electric Fund Capital Outlay Budget includes $180,000 for the Contract 1 building improvements. Construction is expected to begin within 30 days following the award of the bid with completion no later than June 1, 2012. Bids for Contract 2 will be opened on March 9th with funding proposed in the 2012-13 Budget.

Recommendation:

Approve the bid for the Electric Division 2012 Building Improvements Project Contract 1 from Bruns Construction for a total of $117,000 and reject all other bids.

Agenda Item #3 - Permitted Facility Agreement with BP Products – Installation of a Multi-Use Path

References:

default Memo from City Engineer Sam Tesreau

default Permitted Facilities Agreement

Recommended Action:

Consider a Permitted Facilities Agreement between the City and BP Products North America

History and Fact:

The City of Rochelle received an award letter from the Economic Development Program (EDP) in 2011 for assistance with funding up to $2 million in roadway improvements to facilitate construction of the Nippon Sharyo facility. In April of 2011, the Mayor and Council approved the associated State/Local EDP agreement for roadway and infrastructure associated with the Ritchie Road and Ritchie Court improvements. The improvements covered via this agreement include the construction of an asphalt, multi-use pedestrian path along the north side of Ritchie Road, from Steward Road to Ritchie Court, on an easement dedicated to the City by Prologis. The multi-use path, as designed, will cross over an existing BP pipeline.

Discussion:

Plans for the path and required pipeline crossing were sent to BP in 2011 for review and approval. Subsequently, BP has provided a Permitted Facilities Agreement for approval by the City. This agreement allows for the construction of the shared use path across the pipeline at the City's expense and requires that the City be responsible for the payment for, or removal of, the multi-use path if required by BP to maintain the pipeline. Following approval of the agreement, construction will begin on the multi-use path with completion expected by June of 2012.

Recommendation:

Authorize the City Manager to sign the Permitted Facilities Agreement between the City of Rochelle and BP Products of North America for a multi-use path crossing north of Ritchie Road

Agenda Item #4 - Agreement with Rochelle Disposal Services – Covered Electronic Devices and Appliances

References:

default Memo from Water/Water Reclamation Superintendent Kathy Cooper

default Agreement - Covered Electronic Devices and Appliances

Recommended Action:

Consider an Agreement between the City and Rochelle Disposal Services

History and Fact:

As of January 1, 2012 residents are prohibited from disposing of "Covered Electronic Devices" (CED) such as computers, computer monitors, printers and televisions in the trash because, per Illinois law, they are now banned from landfills. These items are also banned from disposal by burning or incineration. As a result of the ban, various alternatives have been explored and researched in order to meet the needs of the community. On February 21, 2012 Kathy Cooper presented three options to the Public Works Committee. Following some discussion and public input, the Committee recommended initiating a pilot program through Rochelle Disposal Service which would include curbside collection of large CEDs.

Discussion:

Rochelle Disposal Service, Inc. (RDSI) has agreed to provide curbside collection of large CEDs in the same manner as the existing appliance program. Per the agreement, the City will issue stickers, at no cost, to residents within the corporate limits. In turn, RDSI will pickup CEDs one day per month, on a regular basis, and bill the City monthly at a rate of $5.14 per stickered CED. In addition, the City will obtain a permit/license from the IEPA for a collection site at the wastewater treatment plant. RDSI will provide the City with bins for the collection of CEDs and citizens will be encouraged to bring smaller items to the collection site. RDSI will also transport full bins to the Behr Recycling Facility in Rockford at a rate not to exceed $200 per trip. Behr will send any proceeds resulting from the CED collection to the City to help offset the cost of the program. Once the agreement is approved and everything is in place, the City will promote the electronic collection program and specifics to the community.

Recommendation:

Authorize the City Manager to sign an agreement between the City of Rochelle and Rochelle Disposal Services for the pickup and disposal of covered electronic devices and appliances.

Agenda Item #5 -  Rezoning and Preliminary Planned Unit Development Plan and Plat for the Resubdivision of Lot 4 in the Caron Ridge Subdivision

References:   

default Memo from Community Development Director Chris Limas

default Ordinance Approving Rezoning and the PUD Plat and Plan

default Exhibit B

default Exhibit C

default Exhibit D                                       

Recommended Action:        

Consider an Ordinance Approving a Rezoning and Preliminary Planned Unit Development Plat and Plan

History and Fact:     

The property located east of the Caron Ridge Shopping Center is currently zoned, B-2, Highway Commercial.  Walter Wayne Development has petitioned the City to rezone the property to Planned Unit Development-Commercial (PUD-C) and approve the proposed PUD Plat and Plan. 

Discussion:    

The proposed Preliminary Plat contains a six lot resubdivision of lot 4 of the original Caron Ridge Subdivision.  Four of the lots are buildable and the two northern lots, adjacent to IL Route 38, are reserved for stormwater management and detention facilities.   In addition to the four buildings, the proposed plan includes 242 shared parking spaces, sidewalk along IL Route 38, and two monument signs.  On March 5, 2012 the Planning and Zoning Commission reviewed the petition for rezoning and preliminary PUD Plat and Plan and voted to deny the petition by a vote of 2-3. After further review, staff finds the petition appropriate and recommends approval subject to modifications and final approval of all plans as required by staff, granting of a variance to allow a PUD smaller than 20 acres and allowance of all B-2 Highway Commercial uses. In addition, staff recommends allowing the proposed replacement monument sign, since it is smaller than the existing sign, and requiring the second monument sign, proposed near the east entrance of the development, to meet code requirements. 

Recommendation:       

Authorize an Ordinance Approving a Rezoning of Certain Property from B-2, Highway Commercial District to Planned Unit Development-Commercial District (PUD-C) and the Preliminary Planned Unit Development Plat and Plan for Resubdivision of Lot 4 in Caron Ridge Subdivision

Agenda Item #6 - Ordinance Amending Telecommunications Tax Rate

References:

default Memo from City Clerk, Bruce McKinney

default Ordinance Amending Simplifed Municipal Telecommunications Tax Rate

Recommended Action:

Consider an Ordinance Amending the Telecommunications Tax Rate

History and Fact:

In 2002 the State of Illinois increased the Simplified Municipal Telecommunications tax rate to a maximum of 6% for municipalities with populations less than 500,000. The City's current telecommunications tax rate of 5% was approved on September 10, 2007.

Discussion:

During the recent budget workshop, City Clerk Bruce McKinney presented information about the possibility of increasing the telecommunications tax rate. Raising the tax rate by 1% would equate to increased revenues of approximately $5,500 per month based on projected telecommunication tax revenues for 2012-13 and could be used to offset additional expenses in the General Fund. In order to proceed with this increase, a certified copy of the ordinance must be filed with the Illinois Department of Revenue by March 20, 2012. The increased telecommunications tax would be assessed beginning July 1, 2012 and the City would begin receiving the increased proceeds in October.

Recommendation:

Consider an Ordinance Amending the Simplified Municipal Telecommunications Tax Rate

City of Rochelle Council Chambers

420 N. 6th Street

Rochelle, IL 61068

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) default Approve Minutes of City Council Meeting - January 23, 2012

b) default Accept and Place on File Minutes of Railroad Advisory Board Meeting - November 17, 2011

c) Approve Bills default 01/13/12-01/19/12 , default 01/20/12-01/26/12 , default 01/27/12-02/02/12

d) Approve Payroll default 01/09/12-01/22/12

e) default Approve a Resolution Establishing the Official Zoning Map for 2011

f) default Approve RTHS Ed Foundation's Request to Hold 30 Men Who Cook Event at Rochelle Airport -9-8-12

2) Third Amendment to Annexation Agreement Creekside Subdivision Unit 1f/k/a Kings Crossing Subdivision (Public Hearing & Action)

3)  Preliminary and Final Planned Unit Development Plat and Plan for Creekside Unit 1 Subdivision

4)  Agreement between the City and Rochelle Fire Fighters Association 2011-2014

5) Economic Development Administration Grant Funds – City Rail, Water and Wastewater Infrastructure in the Southeast Industrial Region

6) Engineering Agreements with Fehr Graham and Willett Hofmann – Well #12

VII. DISCUSSION ITEMS

VIII. EXECUTIVE SESSION

IX.  ADJOURNMENT

BUSINESS ITEMS:

Agenda Item #2 - Third Amendment to Annexation Agreement Creekside Subdivision Unit 1 f/k/a Kings Crossing Subdivision (Public Hearing and Action)

References:

default default Third Amendment to Annexation Agreement

default Exhibit A

default Exhibit B

default Exhibit C

default Memo from Community Development Director Chris Limas

default Ordinance Approving Third Amendment to Annexation Agreement

Recommended Action:

Consider Approving Third Amendment to Annexation Agreement

History and Fact:

Creekside Land Holdings LLC, successor to the Kings Crossing Annexation Agreement, has proposed a third amendment to the annexation agreement in order to facilitate a residential subdivision on 19.4 acres of land north of Flagg Road and west of 20th Street. A Public Hearing related to the amendment was initiated on January 23, 2012 and continued at the developer's request in order to finalize some provisions involving the schools.

Discussion:

Spencer and Tim Hayden, representing Creekside Land Holdings LLC, have had multiple meetings with City staff over the past several months to discuss modifications to the existing annexation agreement. The proposed amendment includes provisions which the developers believe are necessary to make the residential subdivision viable at this time. These provisions increase the City's obligation and are beyond the incentives that have been provided in prior agreements. The provisions, which deviate from past policy and practice, are detailed in the attached memo and will be discussed at the City Council meeting. As part of the strategic planning process last fall, the Mayor and Council identified residential development as a priority and established a goal of twenty-five new residential housing units by December 31, 2013. In order to spur residential development in the current economic climate, it may be necessary for the City Council to consider additional incentives.

Recommendation:

Continue the Public Hearing

Consider Approving the Third Amendment to Annexation Agreement for

Creekside Subdivision Unit 1 f/k/a Kings Crossing Subdivision

Agenda Item #3 - Ordinance Approving the Preliminary and Final Planned Unit Development Plat and Plan for Creekside Unit 1 Subdivision

References:

default Memo from Chris Limas Community Development Director

default Ordinance Approving the Preliminary and Final Planned Unit Development Plat and Plan

default Exhibit B - Preliminary PUD Plat and Plan

default Exhibit C - Final Plat

Recommended Action:

Consider an Ordinance Approving the Preliminary and Final Planned Unit Development Plat and Plan for Creekside Unit 1 Subdivision

History and Fact:

Creekside Land Holdings LLC has submitted a petition to amend the Preliminary Plat and Plan of the Kings Crossing Planned Unit Development (PUD) and for approval of the Final PUD Plan and Plat for Creekside Unit 1 Subdivision. If approved this 19.4 acre subdivision will be located north of Flagg Road and west of 20th Street.

Discussion:

The Preliminary and Final PUD Plat and Plan for Creekside Unit 1 includes a twenty-three lot subdivision with twenty-two lots designated for single family residential and one 5.9 acre lot reserved for a potential assisted living facility. The proposed subdivision will have access off of 20th Street and staff is recommending the construction of a temporary turn around at the end of Creekside Drive until lot 23, the 5.9 acre lot, is developed. The plan includes the construction of Creekside Drive at a width of 31 feet back to back on a 60 foot right-of-way with 4 foot sidewalks. In addition, parkway trees will be planted in the lots on easements instead of in the parkway and stormwater management will be provided by reconfiguring the existing detention pond along 20th Street and adding two new detention ponds (west of San Gabriel and north of the High School property). On December 5, 2011 the Planning and Zoning Commission reviewed the petition for the amendment of the Kings Crossing PUD and approval of the Final PUD Plan and Plat for Creekside Unit 1 and voted to recommend approval, subject to the following: staff approval of final engineering, modification of the final plat as required by staff, staff approval of a stormwater management plan, posting of required surety, and the addition of a temporary turn around at the end of Creekside Drive.

Recommendation:

Authorize an Ordinance Approving the Preliminary and Final Planned Unit Development Plat and Plan for Creekside Unit 1 Subdivision

Agenda Item #4 - Agreement between the City and Rochelle Fire Fighters Association 2011-2014

References:

default Summary of Tentative Agreement

default Redlined Copy of the Tentative Agreement

Recommended Action:

Consider Ratification of Agreement between the City of Rochelle and Rochelle Fire Fighters Association

History and Fact:

The current agreement with the Rochelle Fire Fighters Association was due to expire on April 30, 2011. It was extended subject to negotiations and ratification of a new agreement. A tentative agreement, retroactive to May 1, 2011, has been reached for a new three year contract which will expire on April 30, 2014. The tentative agreement was ratified by members of the bargaining group on January 27, 2012.

Discussion:

The tentative agreement contains many of the same provisions as the previous agreement. In addition, it incorporates language changes and wage and benefit modifications negotiated during the past several months. Some of the more significant changes include:

Group Insurance:

Effective 1-1-12 employees pay 5% of the premium for employee only coverage and 13% of the premium for family coverage.

Effective 1-1-13 employees pay 10% of the premium for employee only coverage and 14% of the premium for family coverage.

Effective 1-1-14 employees pay 15% of the premium for employee only coverage and 15% of the premium for family coverage.

Wage Schedule:

Effective 5-1-11, across the board increase of 2.25%.

Effective 5-1-12, across the board increase of 2.75%.

Effective 5-1-13, across the board increase of 3%

Recommendation:

Approve Ratification of an Agreement between the City of Rochelle and the Rochelle Fire Fighters Association, Local # 3445

Agenda Item #5 - Economic Development Administration Grant Funds – City Rail, Water and Wastewater Infrastructure in the Southeast Industrial Region

default Memo from Economic Development Director Jason Anderson

default Aerial of Defined Benefit Area

default Resolution Related to the Use of Economic Development Administration Grant Funds

default Site Certification

Recommended Action:

Consider Resolution and Site Certification Related to the Use of Economic Development Administration Grant Funds

History and Fact:

Last year the City of Rochelle submitted an application to the Economic Development Administration (EDA) for funding assistance to increase the capacity of the sanitary sewer system in the southeast industrial region and construct rail to serve the Coated Sand Solutions facilities. The total cost of the project included in the application was $6,860,000, of which the EDA has given preliminary approval for funding of forty percent or $2,700,000.

Discussion:

The EDA has now requested that the City provide assurance that the grant funds will be used to construct the rail improvements as defined and that the funds will not be used to increase the property values outside of the benefit area. The proposed resolution meets that requirement and ensures that the property to the east will not benefit from the rail construction for a period of five years following the project completion. The Farm Manager of the property has been informed of this resolution and has no issues with the limits it contains.

 In addition, the EDA is requiring the completion of a Site Certificate related to ownership of the project site and associated rights-of-way, easements and permits.  Attorney Cooper and Noah Carmichael from Fehr-Graham and Associates have reviewed the certificate and will be in attendance to respond to any questions the Mayor and City Council may have. 

Recommendation:

Approve a Resolution Related to the Use of Economic Development Administration Grant Funds – City Rail

Authorize the City Manager, City Attorney and Engineering Representative to Sign the Economic Development Administration Site Certificate on Behalf of the City

Agenda Item # 6 - Engineering Agreements with Fehr Graham and Willett Hoffman – Well #12

References:

default Memo from Water/Water Reclamation Superintendent Kathy Cooper

default Water System Master Plan

default Engineering Agreement - Fehr Graham

default Engineering Agreement - Willett Hofmann

Recommended Action:

Consider Engineering Agreements with Fehr Graham and Willett Hofmann related to the construction of Well #12

History and Fact:

The Master Plan for the City of Rochelle water system includes, as a priority, the construction of a new well in the southeast quadrant of the City and the completion of a water main loop from Flagg/Caron Road to the existing terminus on Dement Road. The continued industrial growth in the southeast quadrant supports the need for this well in order to provide sufficient fire flow protection and an adequate reserve supply for customers. In addition, the City's largest water user is currently served by a dead end water line in this area, which is not a recommended practice. The looping of the water main system from Flagg/Caron Road to Dement Road will ensure a redundant supply and adequate flow and pressure to the facilities located in the Rochelle Business and Technology Park.

Discussion:

The Illinois Environmental Protection Agency (IEPA) administers the State Revolving Fund (SRF) which provides a source of low interest loans to communities for water and sewer projects. The City of Rochelle has used this program in the past to assist with funding the treatment plant, the Northwest Interceptor and the Askvig sewer system. The Public Water Supply Loan Program (PWSLP), a division of the SRF program which funds drinking water projects, is currently offering "principal forgiveness" of 25% on the original loan amount to communities meeting specific criteria for projects under construction by October 1, 2012. In order to qualify for the loan, and meet the construction deadline, several items must be submitted to the IEPA in a very short timeframe. The engineering firms of Fehr Graham and Willett Hoffmann plan to work together to meet these deadlines and have submitted proposals for various components of the project at a cost of $324,950 and $630,000 respectively. Once the IEPA approves a project plan, components of the plan can be constructed over a five year period. The repayment of the Water Reclamation Plant bonds will be complete in May of 2014 and staff believes that the water and sewer rates can be structured in such a way that customers will not see a significant increase in their monthly bills.

Recommendation:

Approve an agreement with Fehr Graham and Associates for services related to the construction of Well #12 and associated infrastructure.

Approve an agreement with Willett Hofmann and Associates for services related to the construction of Well #12 and associated infrastructure.

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

• default Financials - December 2011

• Rochelle Area Chamber of Commerce & Business Development

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) default Approve Minutes of City Council Meeting - January 9, 2012

b) Approve Bills default 12/23/11 - 01/05/12 , default 01/06/12 - 01/12/12

c) Approve Payroll default 12/26/11 - 01/08/12

d) default Accept and Place on File Annual Fire Department Report

e) default Accept and Place on File Annual Police Department Report

f) default Ordinance Amending Municipal Code to delete One Tavern Liquor License

2) Third Amendment to Annexation Agreement Creekside Subdivision Unit 1f/k/a Kings Crossing Subdivision (Public Hearing & Action)

3) Preliminary and Final Planned Unit Development Plat and Plan for Creekside Unit 1 Subdivision

4) Airport Land Acquisition Purchase Agreement

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 - Third Amendment to Annexation Agreement Creekside Subdivision Unit 1 f/k/a Kings Crossing Subdivision (Public Hearing and Action)

References:

default default Third Amendment to Annexation Agreement

default Exhibit A

default Exhibit B

default Exhibit C

default Memo from Chris Limas, Community Development Director

default Ordinance Approving Third Amendment to Annexation Agreement

Recommended Action:

Consider Approving Third Amendment to Annexation Agreement

History and Fact:

The Mayor and City Council approved the Kings Crossing Annexation Agreement with Wyndham Foxford, LLC on April 10, 2006 for a 492.9 acre development located north of Flagg Road. Two amendments to the annexation agreement were subsequently approved in 2009 to facilitate the construction of the first phase of Kings Crossing. A third amendment to the annexation agreement is being proposed by Creekside Land Holdings LLC, successor to the Kings Crossing Annexation Agreement, in order to facilitate a residential subdivision on 19.4 acres of land north of Flagg Road and west of 20th Street.

Discussion:

Spencer and Tim Hayden, representing Creekside Land Holdings LLC, have had multiple meetings with City staff over the past several months to discuss modifications to the existing annexation agreement. The proposed amendment includes provisions which the developers believe are necessary to make the residential subdivision viable at this time. These provisions increase the City's obligation and are beyond the incentives that have been provided in prior agreements. The provisions, which deviate from past policy and practice, are detailed in the attached memo and will be discussed at the City Council meeting. As part of the strategic planning process last fall, the Mayor and Council identified residential development as a priority and established a goal of twenty-five new residential housing units by December 31, 2013. In order to spur residential development in the current economic climate, it may be necessary for the City to consider additional incentives.

Recommendation:

Conduct the Public Hearing

Consider Approving the Third Amendment to Annexation Agreement for

Creekside Subdivision Unit 1 f/k/a Kings Crossing Subdivision

Agenda Item #3 - Ordinance Approving the Preliminary and Final Planned Unit Development Plat and Plan for Creekside Unit 1 Subdivision

References:

default Memo from Chris Limas, Community Development Director

default Ordinance Approving the Preliminary and Final Planned Unit Development Plat and Plan

default Exhibit B - Preliminary PUD Plat and Plan

default Exhibit C -- Final Plat

Recommended Action:

Consider an Ordinance Approving the Preliminary and Final Planned Unit Development Plat and Plan for Creekside Unit 1 Subdivision

History and Fact:

Creekside Land Holdings LLC has submitted a petition to amend the Preliminary Plat and Plan of the Kings Crossing Planned Unit Development (PUD) and for approval of the Final PUD Plan and Plat for Creekside Unit 1 Subdivision. If approved this 19.4 acre subdivision will be located north of Flagg Road and west of 20th Street.

Discussion:

The Preliminary and Final PUD Plat and Plan for Creekside Unit 1 includes a twenty-three lot subdivision with twenty-two lots designated for single family residential and one 5.9 acre lot reserved for a potential assisted living facility. The proposed subdivision will have access off of 20th Street and staff is recommending the construction of a temporary turn around at the end of Creekside Drive until lot 23, the 5.9 acre lot, is developed. The plan includes the construction of Creekside Drive at a width of 31 feet back to back on a 60 foot right-of-way with 4 foot sidewalks. In addition, parkway trees will be planted in the lots on easements instead of in the parkway and stormwater management will be provided by reconfiguring the existing detention pond along 20th Street and adding two new detention ponds (west of San Gabriel and north of the High School property). On December 5, 2011 the Planning and Zoning Commission reviewed the petition for the amendment of the Kings Crossing PUD and approval of the Final PUD Plan and Plat for Creekside Unit 1 and voted to recommend approval, subject to the following: staff approval of final engineering, modification of the final plat as required by staff, staff approval of a stormwater management plan, posting of required surety, and the addition of a temporary turn around at the end of Creekside Drive.

Recommendation:

Authorize an Ordinance Approving the Preliminary and Final Planned Unit Development Plat and Plan for Creekside Unit 1 Subdivision

Agenda Item #4 - Airport Land Acquisition Purchase Agreement

References:

default Memo from Don Elliott, Airport Superintendent

default Justification Report from Illinois Department of Transportation

default Transportation Improvement Program Report Airports FFY 2013-2017

default Map of Proposed Airfield Improvements

default Purchase Agreement between the City and Seven LLC -- Tigen

default Exhibit B1

default Exhibit B2

default Ordinance Authorizing the Execution of the Purchase Agreement

Recommended Action:

Consider Airport Land Acquisition Purchase Agreement

History and Fact:

In August of 2008 the Illinois Department of Transportation (IDOT) Division of Aeronautics approved plans to extend the current runway at the Rochelle Municipal Airport from 4,226 feet to Category B criteria of 5,000x75 feet. Subsequently, the Mayor and Council approved an agreement with Hanson Professional Services for assistance in acquiring the additional property necessary for the expansion.

Discussion:

For the past three years Hanson Professional Services has worked diligently with the sellers' representatives, City staff and IDOT to reach an agreement on the acquisition of the required property west of runway 7. The proposed agreement includes the purchase of three parcels totaling 60.184 acres of land for a total price of $541,985.90. In addition it allows for the protection of existing farmland drainage, access at Gurler Road, an avigation easement and reimbursement of associated fees not to exceed $40,000. IDOT's current Transportation Improvement Program for Rochelle Municipal Airport includes an estimated project cost of $650,000 for the land acquisition. Eligible expenses included in this project are land purchase, attorney fees, airport consultant fees, and engineering. The City of Rochelle will be required to upfront the land purchase and associated expenses, which were budgeted in the Airport Fund, and will seek 95% reimbursement from Federal Entitlement Funds and 2.5% reimbursement from the State of Illinois once the property acquisition is complete. Execution of this agreement will allow IDOT to begin programming funds to facilitate construction in 2013.

Recommendation:

Approve an Ordinance which Authorizes the City Manager to Sign an Agreement for Purchase and Sale between the City of Rochelle and Seven LLC-Tigan for the Acquisition of Three Parcels of Property Totaling 60.184 acres for the Extension of the Runway at the Rochelle Municipal Airport.

City of Rochelle Council Chambers

420 N. 6th Street

Rochelle, IL 61068

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

• default Financials - November 2011

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) default Approve Minutes of City Council Meeting - December 12, 2011

b) default Accept and Place on File Minutes of Administrative Committee Meeting October 3, 2011

c) default Accept and Place on File Minutes of Administrative Committee Meeting October 18, 2011

d) default Accept and Place on File Minutes of Airport Advisory Board Meeting - October 24, 2011

e)  default Appriove Bills 12/02/11-12/08/11 , default 12/9/11-12/15/11 , default 12/16/11-12/22/11

f)  default Approve Payroll 11/28/11-12/11/11 , default 12/12/11-12/25/11

g) default Resolution Supporting the Continuation of Mail Processing through the Rockford Postal Center

2) Ordinance Amending Chapter 6 – Alcoholic Beverages (Public Hearing & Action)

3) Agreement and Inducement Resolution - Three Tax Increment Financing Districts

4) Amendment to the Agreement between the City and Hanson Professional Services – Airport Land Acquisition Services

5) Agreement between the City and Hanson Professional Services – Airport Electrical Vault

6) Engineering Agreement with Fehr-Graham & Associates – Caron Road Lift Station

7) Ordinance Amending Chapter 94 to Authorize the Seizure and Impoundment of Vehicles Used in the Commission of Certain Crimes

VII. DISCUSSION ITEMS:

Agenda Item #2 - Ordinance Amending Chapter 6 – Alcoholic Beverages (Public Hearing & Action)

References:

default Ordinance Amending Chapter 6 – Alcoholic Beverages

default Exhibit A

default Exhibit B

Recommended Action: Consider Ordinance Amending Chapter 6 – Alcoholic Beverages

History and Fact: On December 16, 2011 the Administrative Committee of the City Council met to discuss, among other items, changes to the City's Liquor License ordinance and fees. Several liquor license holders spoke to the committee regarding the hours and days permitted for sale of alcoholic beverages, related fees and various license classifications. Due to time constraints, the Administrative Committee reconvened on December 21, 2011 for further discussion.

Discussion: Following input from various stakeholders and discussion among the committee members, a consensus was reached to recommend the following to the full City Council: allow liquor sales on Sunday between 11 am and 11 pm, remove the holiday restrictions, modify the associated fees as presented including the addition of an initial/start up fee, decrease the fee for Clubs to that of Restaurant/Recreation facilities, delete the Resort classification since there are none in effect, and prohibit the sale of alcohol from convenience stores, other than the two currently licensed. The proposed ordinance, drafted by Attorney Cooper, was written in accordance with the recommendations of the committee.

Recommendation:

Conduct the Public Hearing

Approve an Ordinance Amending Chapter 6 (Alcoholic Beverages) to Delete Resort Licenses, Allow Sunday and Holiday Sales, and Establish New Fee Schedule

Agenda Item #3 - Agreement and Inducement Resolution – Three Tax Increment Financing (TIF) Districts

References:

default Memo from Chris Limas, Community Development Director

default Agreement with Teska Associates

default Attachment A -- Scope of Service

default TIF Districts Map

default Resolution of Intent to Utilize Tax Increment Financing

Recommended Action:

Consider Agreement between the City of Rochelle and Teska Associates and Resolution of Intent

History and Fact:

The City Council's recently adopted Strategic Plan set goals that provide for the redevelopment of Rochelle's older business areas and the attraction of new retail businesses. Tax increment financing (TIF) is one of the primary tools that cities have available in Illinois to assist in achieving redevelopment goals. Accordingly, City staff solicited proposals from two consulting firms to assist us in the planning that is required by state statute in order to form TIF districts.

Discussion:

The City Council's Administration Committee met on December 21st to discuss the redevelopment potential of three areas as depicted on the attached map: North Gateway, Downtown, and South Gateway. The actual boundaries of the areas would be established by Council based on the results of the eligibility studies that need to be conducted.

TIF is a mechanism by which cities collect the portion of future property taxes paid by property owners based only on the growth of their properties' equalized assessed value (EAV). All taxing jurisdictions will continue to receive the portion of property taxes levied against the original – or base – EAV. Cities can then use these incremental funds to spur development in the district. The manner in which cities collect and utilize these TIF property tax dollars is strictly regulated by the state. TIF districts have a maximum life of 23 years.

City staff and the Administration Committee are recommending that the City engage Teska Associates, Inc. of Evanston to perform the necessary planning studies at a fee of $97,500. If the City Council adopts the proposed Resolution of Intent, the City would be allowed to use TIF funds to reimburse this expense.

Recommendations:

1) Authorize the City Manager to sign an agreement between the City of Rochelle and Teska Associates in connection with the establishment of three Tax Increment financing Plans and Programs;

and 2) Approve a resolution of intent to utilize tax increment financing to improve deteriorating physical conditions and to stimulate new economic development within the southern gateway (Route 251), northern gateway (Route 251/Route 38) and downtown.

Agenda Item #4 - Amendment to the Agreement between the City and Hanson Professional Services – Airport Land Acquisition Services

References:

default Memo from Airport Superintendent Don Elliott

default Letter from Hanson Professional Service and Amendment 1 to Agreement

Recommended Action:

Consider Amendment 1 to the Agreement between the City of Rochelle and Hanson Professional Services for Land Acquisition Services at the Airport

History and Fact:

On August 27, 2008 the Illinois Department of Transportation (IDOT) Division of Aeronautics approved plans to extend the runway at the Rochelle Municipal Airport from 4,226 feet to 5,000 feet. Subsequently, in September of 2008, the Mayor and Council approved an agreement with Hanson Professional Services for assistance in acquiring two parcels of land totaling 53 acres at a cost not to exceed $48,700.

Discussion:

During the negotiation process, the property owner raised drainage concerns including its impact on the adjoining property. In addition, the City determined it would be best to purchase an additional 8 acres to allow for future expansion. These issues have significantly increased the scope of services required to purchase the necessary property and resulted in an amendment to the original agreement. IDOT has reviewed and approved Amendment 1 to the Property Acquisition Management Services Agreement with Hanson for these services at a cost not to exceed $79,780. The City will be required to fund the land purchase and acquisition services up front but will receive reimbursement of 95% from Federal Entitlement Funds and 2.5% from the State of Illinois once the acquisition is complete. The balance of $1,994.50 will be paid out of the airport fund. Approving the amendment will allow the City to move forward with the property acquisition with a goal of expanding the runway in 2013-14.

Recommendation:

Authorize the City Manager to Sign Amendment 1 to the Agreement between the City of Rochelle and Hanson Professional Services for Land Acquisition Services at the Airport.

Agenda Item #5 -  Agreement between the City and Hanson Professional Services – Airport Electrical Vault

References:

default Memo from Airport Superintendent Don Elliott

default Letter from Illinois Department of Transportation

default Agreement between the City and Hanson Professional Services

Recommended Action:

Consider an Agreement between the City of Rochelle and Hanson Professional Services for Consultant Services

History and Fact:

On May 23, 2011 the Illinois Department of Transportation (IDOT) Division of Aeronautics issued a "notice to proceed" letter for the construction of an electrical vault at the Rochelle Municipal Airport in preparation for new electrical equipment associated with the runway extension. The next step is for the City to initiate the professional services phase of the project.

Discussion:

Hanson Professional Services have provided an agreement for design, construction and planning services related to the electrical vault project. Per the agreement, "the project consists of the development of Construction Plans and Specifications; acquisition of the necessary NEPA approvals (environmental); and provision of onsite construction observation – to construct a new electrical vault. Associated construction work shall include duct bank, cabling, installation of electrical equipment, removal of electrical equipment, and provision of new power distribution to the existing navigational aids and lighting. An additive alternate shall consist of installation of an emergency transfer switch." The estimated cost of the project is $325,000 which will be funded through 95% Federal Airport Entitlement and State Apportionment, 2.5% state match and 2.5% local match. Once IDOT approves the agreement with Hanson Professional Services, an agency agreement will follow from IDOT Division of Aeronautics. The City will only be required to fund the local portion of $8,125 which is included in the 2011-12 Airport Capital Outlay Budget. It is anticipated that IDOT will let the bids for the project in the spring of 2012.

Recommendation:

Authorize the City Manager to Sign a Consultant Services Agreement between the City of Rochelle and Hanson Professional Services related to the Construction of an Electrical Vault at the Airport.

Agenda Item #6 - Engineering Agreement with Fehr-Graham & Associates – Caron Road Lift Station

References:

default Memo from Superintendent of Water/Water Reclamation Kathy Cooper

default Proposal for Professional Services Caron Road Lift Station

default Order for Professional Engineering Services

Recommended Action:

Consider an Engineering Agreement with Fehr-Graham & Associates for services related to the Caron Road Lift Station

History and Fact:

Wastewater needs for the City's southeast industrial area (south of Interstate 88 and east of South Main Street) are currently served by the Wiscold lift station. This lift station often operates at capacity, handling flows of 35,000 gallons per day. The 2011 Comprehensive Plan for the Water Reclamation Division includes the need to construct a new lift station near the intersection of Caron Road and Timber Lane to better serve this area. In addition, the recent industrial development in this region of the Nippon Sharyo and Coated Sand Solutions facilities has spurred the need for the new lift station.

Discussion:

Earlier this year the City of Rochelle submitted an application to the Economic Development Administration (EDA) for funding assistance through the Public Works and Economic Development Program to construct the Caron Road Lift station. In November the City received a non-binding "further consideration" letter from the EDA. The Economic Development Department has since been notified that funds of $2.7 million have been appropriated and an award letter is anticipated in mid-January. At the City's request, Fehr-Graham and Associates has identified a scope of services related to the Caron Road Lift Station which includes design and permitting, preparation of bid documents and construction services for a fee of $71,320 plus time and materials for construction observation estimated at $25,000 for a total of $96,320. Superintendent Kathy Cooper recommends that the City proceed with the engineering agreement with an anticipated project completion of mid 2013. Once operational, the Caron Road lift station will have the capacity to serve the area south of Interstate 88 and the Village of Steward.

Recommendation:

Authorize the City Manager to sign an Order for Professional Engineering Services with Fehr-Graham & Associates for services related to the design, permitting and construction of the Caron Road Lift Station.

Agenda Item #7 - Ordinance Amending Chapter 94 to Authorize the Seizure and Impoundment of Vehicles used in the Commission of Certain Crimes and Related Administrative Fee

References:

default Memo from Police Chief Eric Higby

default Ordinance Amending Chapter 94

Recommended Action:

Consider an Ordinance Amending Chapter 94

History and Fact:

On March 28, 2011 the Mayor and Council approved an ordinance allowing for the seizure and impoundment of vehicles used in connection with specific offenses. The ordinance also provides for the assessment of a $500 administrative fee in addition to applicable fines, costs, towing and storage fees.

Discussion:

The State of Illinois passed Public Act 97-0109 in July of 2011 which amends the Illinois Vehicle Code effective January 1, 2012. In order to comply with the new legislation, the City must make some modifications to Chapter 94 of the City of Rochelle Municipal Code. The current code provides for an administrative hearing process, should the registered owner choose to challenge the impounding. Per the new legislation, administrative hearings must now be conducted by a hearing officer who has been licensed to practice law in the State of Illinois for at least 3 years. In addition, towing and storage fees must now be paid directly to the towing agency instead of the City collecting those fees and issuing a check to the wrecker service. The various modifications included in the proposed ordinance are in compliance with the Illinois Vehicle Code as of January 1, 2012.

Recommendation:

Approve an Ordinance Amending Chapter 94 of the Municipal Code to Authorize the Seizure and Impoundment of Vehicles used in the Commission of Certain Crimes and Related Administrative Fee

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

420 N. 6th Street

Rochelle, IL 61068

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – default November 28, 2011

b) Approve Bills default 11/18/2011-11/23/2011 , default 11/24/2011-12/01/2011

c) Approve Payroll default 11/14/2011-11/27/2011

d) default Approve CIty of Rochelle Meeting Dates for 2012

e) default Approve City of Rochelle Legal Holidays for 2012

2) Ordinance Adopting 2011 Tax Levy (Public Hearing and Action)

3) Ordinance Abating the Taxes Levied for 2011 - Taxable General Obligation Bonds

4) Ordinance Amending the Agreement between the City and Rochelle Avionics, Inc.

5) Ordinance Approving the Preliminary and Final Planned Unit Development Plan and Plat for Lighthouse Pointe

6) Repair of Engine 7 Blower Motor

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

BUSINESS ITEMS:

Agenda Item #2 - 2011 Tax Levy

References: default Memo from Chris Frye, Finance Manager

default Real Estate Tax Rate Extension - Option 2

default Ordinance Levying Taxes for the City of Rochelle

Recommended Action: Consider Ordinance Levying Taxes for the City of Rochelle

History and Fact: Every year, the state requires the City to adopt and file a Property Tax Levy Ordinance on or before the last Tuesday in December. Last year, the City's Equalized Assessed Valuation ("EAV") was $205,434,601 and its property tax rate was $0.86035 per $100 of EAV, which allowed the city to collect $1,702,026 in property taxes. For the coming year, the City's EAV increased by almost 19 percent to $244,108,234.

Discussion: At the November 28th meeting, the City Council discussed several options concerning the 2011 Tax Levy. The City's 2011 EAV increased significantly over the 2010 level because Dement Township reassessed properties in its jurisdiction. However, Rochelle's commercial and industrial property owners located within Dement Township are appealing their higher assessments, which, if they are successful, would result in a lower EAV, perhaps even less than last year's. This uncertainty surrounding the City's EAV presents an unusual complication in setting our property tax levy and tax rates for next year.

Moreover, the City's Fire and Police Pension Boards, respectively, are seeking the Council to fully fund their recommendations based on actuarial studies. If these requests are honored the amounts levied for each of these funds will double when compared with last year. In particular, the Fire Pension Board is seeking a contribution from property taxes of $182,958. The Police Pension Board is seeking a contribution of $213,307.

The City Council decided at the last meeting to publish a property tax levy notice for 2011 that would continue to maintain the property tax levies for the pension funds at last year's levels. The City would need to find alternative sources to fund the shortfalls, such as transfers from the landfill and ambulance accounts. In addition, the notice provides that the City would not change the property tax rates for general corporate, fire protection, police protection, crossing guard and street lighting from last year.

Maintaining the last year's tax rates and pension levies, given the higher EAV due to the Dement reassessment, means that the tax levy will increase 15.66 percent. However, we believe the actual levy increase will be significantly less than this after the Dement Township property appeals are heard and the County adjusts the rates and levies accordingly. Unfortunately, it is impossible to predict the outcome of these hearings, with any certainty, prior to adoption of next year's tax levy.

Recommendation: Conduct the Public Hearing

Approve Ordinance Levying Property Taxes for the City of Rochelle for the Fiscal Year May 1, 2011 through April 30, 2012

Agenda Item #3 - Ordinance Abating the Taxes Levied for 2011 – Taxable General Obligation Bonds

References:  default Ordinance Abating the Taxes Levied for 2011 - Taxable General Obligation Bonds

Recommended Action: Consider an Ordinance Abating the Taxes Levied for 2011 to Pay Debt Service on Taxable General Obligation Bonds

History and Fact: On November 22, 2010 the Mayor and Council approved an ordinance providing for the issuance of general obligation bonds in an amount not to exceed $2,940,000 to finance offsite improvements related to the Lighthouse Pointe Subdivision and Route 38 corridor. The City issued bonds on December 14, 2010 in the amount of $2,940,000.

Discussion: The annual debt service related to these bonds will not be paid through property taxes. Instead, the debt service will be paid through TIF revenues, interest refunds from the Internal Revenue Service and other City funds. In order to abate the property taxes, the proposed ordinance must be approved annually and forwarded to Lee and Ogle County.

Recommendation: Approve an Ordinance Abating the Taxes Levied for 2011 to Pay Debt Service on Taxable General Obligation Bonds

Agenda Item #4 - Ordinance Amending the Agreement between the City and Rochelle Avionics, Inc.

References: default Letter from Rochelle Avionics

default Memo from Airport Superintendent Don Elliott

default Memo from Business Development Director Scott Rozanas

default Amendment to Limited Fixed Base Operator Agreement - Rochelle Avionics, Inc

default Ordinance Amending the Limited Fixed Base Operator Agreement

Recommended Action: Consider an Ordinance Amending the Agreement between the City of Rochelle and Rochelle Avionics, Incorporated

History and Fact: On September 28, 2009 the Mayor and Council authorized the City Manager to enter into an agreement with Rochelle Avionics, Incorporated in order to provide aircraft maintenance services, with a focus on avionics, at the Rochelle Municipal Airport. The five year agreement, which commenced on November 1, 2009, included various start-up incentives such as no lease payment for the first two years and structured utility costs.

Discussion: In November of this year Jeremy Sells, President of Rochelle Avionics, Incorporated (RAI), sent a letter requesting a one year extension of the zero lease payment incentive due to the difficulty in starting a business under the current economic conditions. City staff members Don Elliott and Scott Rozanas have met with Mr. Sells and evaluated the request and progress of RAI. Their findings are that RAI has met their contractual obligations during the first 2 years, RAI is providing a quality service to aircraft owners and the business is showing signs of positive growth. Based on their evaluation, they recommend that council provide a one year extension with lease payments beginning on October 31, 2012.

Recommendation: Approve an Ordinance Amending the Agreement between the City of Rochelle and Rochelle Avionics Incorporated

Agenda Item #5 - Ordinance Approving the Preliminary and Final Planned Unit Development Plat and Plan for Lighthouse Pointe – Second Addition

References: default Memo from Chris Limas Community Development Director

default Ordinance Approving the Preliminary and Final Planned Unit Development Plat and Plan

default Exhibit B - Concept Plan

default Exhibit C - Preliminary and Final Plat

Recommended Action:  Consider an Ordinance Approving the Preliminary and Final Planned Unit Development Plat and Plan for Lighthouse Pointe – Second Addition

History and Fact: Spring Creek Development Group has submitted a petition for approval of a preliminary and final planned unit development (PUD) plan and plat for the second addition of Lighthouse Pointe. If approved this 10.21 acre subdivision will be located north of Illinois Route 38 and east of the new Wal-Mart store.

Discussion: The preliminary and final PUD plat and plan includes a four lot subdivision with access off of Coronado Drive. In addition Lot 10 also has access off North Pointe Street and an access drive to the north. On December 5, 2011 the Planning and Zoning Commission reviewed the petition for the preliminary and final PUD plat and plan for Lighthouse Pointe Second Addition and voted to recommend approval by a vote of 6-0 subject to the following: 50 foot building setbacks along North Pointe Street on lot 7, administrative approval of all individual site plans and access points, installation of all required land improvements, staff approval of final engineering, modification of the final plat as required by staff, approval of a stormwater management plan for each lot, posting of required surety, and allowance of all B-2 Highway Commercial permitted uses except when special use permit is required.

Recommendation: Authorize an Ordinance Approving the Preliminary and Final Planned Unit Development Plat and Plan for Lighthouse Pointe – Second Addition  

Agenda Item #6 - Repair of Engine 7 Blower Motor

References: default Memo from Electric Operations Superintendent Joe Orlikowski

default Proposal for Blower Motor Repair from GE Oil & Gas

Recommended Action: Consider a proposal from GE Oil & Gas

History and Fact: The City of Rochelle, through Rochelle Municipal Utilities (RMU), operates three electric generation facilities including one on 9th Street. The 9th Street facility houses 8 units, of which Engine 7, rated at 3.5MW, is one of the largest. In late July, the blower motor on Engine 7 failed and was subsequently sent to GE Oil & Gas for an inspection resulting in a condition report and a proposal for repair of the motor.

Discussion: It is extremely important that RMU has the ability to run these engines during critical peak days. Both PJM and ComEd now require that RMU runs the engines for 5 critical peak days each year. In 2011 all of the generation units were run 17 times which lowers the capacity that the City must buy annually and thereby the overall cost to the customers.

GE Oil & Gas has submitted a proposal to repair the blower motor at a cost of $98,930. Due to lengthy lead times for parts and the necessity of having this engine operational in the summer of 2012, RMU issued a purchase order in late November.

Since the failure of the blower motor was not anticipated, funds for the repair were not included in the 2011/12 budget. Although the repair cost is substantial, it is much less expensive than the cost to purchase the additional 3.5 MWs of capacity.

Recommendation: Authorize the City Manager to proceed with the repair of a blower motor per the proposal from GE Oil & Gas at a cost of $98,930.

Adjust the 2011/12 Electric Operations, Ninth Street Generation Plan Maintenance Budget accordingly.

City of Rochelle Council Chambers

420 N. 6th Street, Rochelle, IL 61068

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

• default National Drunk and Drugged Driving Prevention Month - December 2011

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

• default Financials - October 2011

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) default Approve Minutes of City Council Meeting - November 14, 2011

b) default Accept and Place on File Railroad Advisory Board Minutes - September 28, 2011

c) Approve Bills default 11/04/11 - 11/10/11 , default 11/11/11 - 11/17/11

d) Approve Payroll default 10/31/11 - 11/13/11

e) default Accept and Place on File Municipal Compliance Report - Fire Pension Fund

2) Request from Metal Recyclers for Permission to Place Disposal Containers within the City

3) Release of Billboard Easement – Prologis Land LLC

4) First Amendment to Recapture Agreement – Prologis Land LLC

5) Fraternal Order of Police Agreement 2011-2014

6) IMLRMA Min/Max Contribution Agreement

7) Reduction in Letter of Credit – Lighthouse Pointe

VII. DISCUSSION ITEMS: 

1) Midyear Financial Report

2) Tax Levy 2011-12

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

BUSINESS ITEMS:

Agenda Item #2 - Request from Metal Recyclers for Permission to Place Disposal Containers within the City

References:

default Request from Metal Recyclers for Permission to Place Disposal Containers within the City

default Memorandum from City Attorney Alan Cooper

default Waste Collection Agreement with Rochelle Disposal Service, Inc. .

Recommended Action: Consider a request from Metal Recyclers

History and Fact: The owners of Metal Recyclers submitted a letter to the City Council in June requesting permission "to set containers within the City limits to collect construction waste and other needs that require a large tub container." Metal Recyclers is located at 8th Avenue and 20th Street and provides recycling and container services to residents and businesses in the surrounding communities.

Discussion: The City of Rochelle entered into a Waste Collection Agreement with Rochelle Disposal Service in 1995. This agreement provides Rochelle Disposal Service with rights associated with the collection and hauling of waste within the City limits. City Attorney Alan Cooper reviewed the request from Metal Recyclers, the existing Waste Collection Agreement, applicable state statutes and City Code provisions and provided his conclusions to the Mayor and City Council at their meeting on July 25, 2011. Due to the complicated nature of this request, the City Manager recommended referring it to the Administrative Committee for an in-depth discussion. On October 18, 2011 representatives from the City, Rochelle Waste Disposal and Metal Recyclers presented their positions to the Administrative Committee. Following a lengthy discussion, the three members of the Administrative Committee: Councilman Eckhardt, Councilman Rice and Councilwoman Hollonbeck, agreed to recommend denial of the Metal Recyclers request to the City Council.

Recommendation: Deny a request from Metal Recyclers for permission to place disposal containers within the City limits.

Agenda Item #3 -  Release of Billboard Easement - Prologis Land LLC

References: default

default Release of Easement

Recommended Action: Consider Release of Billboard Easement

History and Fact: On May 9, 2011 the Mayor and Council approved two billboard lease assignments from Prologis Land to the City of Rochelle. Subsequently, in August of this year, Prologis granted the City an easement so that one of the billboards could be relocated in order to facilitate rail service to the Nippon Sharyo Project.

Discussion: It has since been determined that the billboard, currently located along I-88, cannot be relocated. Instead, the City Industrial Rail will be re-routed around the billboard. City Attorney Alan Cooper recommends releasing the easement since it is no longer required.

Recommendation: Approve Release of Billboard Easement

Agenda Item: #4 First Amendment to Recapture Agreement – Prologis Land LLC

References: default

default First Amendment to Recapture Agreement

Recommended Action: Consider Approving First Amendment to Recapture Agreement

History and Fact: In connection with the annexation of property in 2005, the City of Rochelle and DP Industrial LLC entered into a recapture agreement which designated the Boyle farm as the benefiting property. The agreement included, among other provisions, specific calculations for the recapture of water and sewer improvements along Steward Road. In 2007 DP Industrial assigned its interest in the Recapture Agreement to Prologis Land LLC. Per the agreement, a portion of the recapture amount became due when 28.05 acres of property for the Coated Sand Solutions facility was annexed into the City.

Discussion: Coated Sand Solutions was to pay the recapture amount at the time of property closing from the Boyle family. In preparation for the closing, an error in the original recapture calculations was discovered. Attorneys representing the Boyle family, Coated Sand Solutions, Prologis and the City have since determined the correct amount. In order to correct the recapture formula as it relates to Coated Sand Solutions and future purchases, an amendment to the recapture agreement is necessary.

Recommendation: Approve First Amendment to Recapture Agreement

Agenda Item #5 -  Fraternal Order of Police Agreement 2011-2014

References:

default Summary of Tentative Agreement

default Redlined Copy of the Tentative Agreement

Recommended Action: Consider Ratification of Agreement between City of Rochelle and Fraternal Order of Police

History and Fact: The current agreement with Illinois Fraternal Order of Police was due to expire on April 30, 2011. It was extended subject to negotiations and ratification of a new agreement. A tentative agreement, retroactive to May 1, 2011, has been reached for a new three year contract which will expire on April 30, 2014. The tentative agreement was ratified by members of the bargaining group on November 22, 2011.

Discussion: The tentative agreement contains many of the same provisions as the previous agreement. In addition, it incorporates language changes and wage and benefit modifications negotiated during the past several months. Some of the more significant changes include:

Group Insurance:

Effective 1-1-12 employees pay 5% of the premium for employee only coverage and 13% of the premium for family coverage.

Effective 1-1-13 employees pay 10% of the premium for employee only coverage and 14% of the premium for family coverage.

Effective 1-1-14 employees pay 15% of the premium for employee only coverage and 15% of the premium for family coverage.

Wage Schedule:

Effective 5-1-11 a one-time market adjustment of 10% will be added to the dispatch wage scale

Effective 5-1-11, across the board increase of 2.25%.

Effective 5-1-12, across the board increase of 2.75%.

Effective 5-1-13, across the board increase of 3%

Recommendation: Approve Ratification of an Agreement between the City of Rochelle and the Illinois Fraternal Order of Police on Behalf of Rochelle Lodge #127

Agenda Item #6 - IMLRMA Min/Max Contribution Agreement

References:

default Memo from Lynette Fischer, HR/Risk Manager with attachements

default Minimum/Maximum Contribution Agreement

default Ordinance Authorizing the Execution of the IMLRMA Minimum Maximum Agreement

Recommended Action: Consider Ordinance Authorizing Execution of the IMLRMA Minimum/Maximum Contribution Agreement

History and Fact: The City of Rochelle has participated in the Illinois Municipal League Risk Management Association (IMLRMA) property and liability insurance program since 1997. The program covers the following risks: worker's compensation, auto liability, commercial general liability, portable mobile equipment, and the physical damage to auto and property. The program provides an opportunity to reduce our risk management costs through the use of "Minimum/Maximum Premium Program" whereby the City accepts some risk of loss in return for a reduction in premium. Our loss experience has resulted in significant savings in each of the years we have participated.

Discussion: HR/Risk Manager Lynette Fischer has reviewed the renewal proposal and recommends that we accept the net minimum premium of $ 464,819. This premium represents an increase of 4.84% over the previous year. The majority of the premium increase is due to worker's compensation related costs. All coverage limits remain constant for 2011-2012 with the exception of coverage for Rail Operations. The type of endorsement required for this specific operation is unavailable at this time from IMLRMA. Selecting the minimum payment option subjects the City to additional premiums of approximately $167,523 if our claims exceed program limits but, our past experience has not resulted in additional premiums. IMLRMA is offering the option of paying in two installments for an additional ½% fee. The recommendation is to pay the first installment in December of 2011 and the second in April of 2012, prior to the end of the fiscal year, for a total cost of $467,143.10

Recommendation: Approve an Ordinance Authorizing the Execution of the Minimum/Maximum Contribution Agreement.

Agenda Item #7: Reduction in Letter of Credit – Lighthouse Pointe Subdivision

References:

default Memo from City Engineer Sam Tesreau with attachments

Recommended Action: Consider a reduction in the Letter of Credit for Lighthouse Pointe Subdivision

History and Fact: Irrevocable letters of credit No. 08522, 08521, 08520 and 08519 which total $1,578,956.26 were submitted to the City of Rochelle by Spring Creek Development to secure their obligations related to land improvements for Lighthouse Pointe WalMart Addition Subdivision. Based on the completion of a majority of the improvements, Ryan Fitzgerald, representing Spring Creek Development Group, has requested a reduction in the letter of credit.

Discussion: City Engineer, Sam Tesreau, has reviewed the request for a reduction in the letter of credit. A letter outlining remaining conditions required for release of the surety has been sent to Spring Creek. Given that there are additional items to be completed, a new letter of credit for 10% of the total estimated cost of improvements, $157,896, plus an additional $ 139,864 for the remaining street lighting, restoration, erosion control removal, utility and manhole adjustments, grading/backfilling, signage and completion of the as built plans is required by the City to be held for a period of 24 months as guarantee of satisfactory completion. In addition, it appears an extension of the letter of credit of no less than one year will be required to complete the remaining improvements.

Recommendation: Approve a reduction in the Letter of Credit for Lighthouse Pointe Subdivision

Approve an extension of the Letter of Credit for no less than one year

DISCUSSION ITEMS:

Discussion Item #1 - Midyear Financial Report

 The City of Rochelle's 2011-2012 budget was adopted by the Mayor and City Council on April 25, 2011. The second quarter of the current fiscal year ended on October 31, 2011. Finance Manager, Chris Frye, will be in attendance to share information on actual revenue and expenditures in relation to the budget, specifically in areas where there are variances.

Discussion Item #2 - Tax Levy 2011-12

Annually the Mayor and City Council are required to adopt a Tax Levy Ordinance and file it with the County Clerk on or before the last Tuesday in December. The Ordinance Levying Taxes for the City of Rochelle 2011-12 will be included as a business item on the December 12, 2011 City Council Meeting. Finance Manager, Chris Frye, will provide information and various options related to the levy. In addition, the Rochelle Police and Fire Pension Fund Presidents will discuss their respective recommendations and respond to questions from the Mayor and Council.

default Rochelle Police Pension Fund Recommendation

default Rochelle Fire Pension Fund Recommendation

City of Rochelle Council Chambers

420 North 6th Street, Rochelle, IL 61068

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

• Service Award Presentation to Lee Harris - Police and Fire Commission

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) default Approve Minutes of City Council Meeting - October 24, 2011

b) default Accept and Place on File Airport Advisory Board Minutes - June 27, 2011

c) default Accept and Place on File Planning and Zoning Commission Minutes - September 6, 2011

d) Approve Bills default 10/14/11-10/20/11 , default 10/21/11 - 10/27/11 , default 10/28/11 - 11/03/11

e) Approve Payroll default 10/03/11 - 10/16/11 , default 10/17/11 - 10/30/11

f) default Approve Downtown Rochelle Association Request - Old Fashioned Christmas Walk 0

g) default Authorize Lighted Christmas Parade - December 2, 2011

h) default Accept and Place on File Municipal Compliance Report - Police Pension Fund

2) Purchase of Command Vehicle – Fire Department

3) Resolution for Improvement - South 3rd Street and Avenue H

4) Executive Search Services Proposal - General Manager Rochelle Municipal Utilities

5) Resolution Authorizing the Mayor to Submit an EDA Application and Accept Award

6) Extension of Letter of Credit – Squires Landing

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

BUSINESS ITEMS:  DETAIL

Agenda Item #2 - Purchase of Command Vehicle – Fire Department

References: default Attached Memo from Fire Chief Brian Johnson

Recommended Action: Consider bids for the purchase of a command vehicle for the Fire Department.

History and Fact: The 2011-12 Ambulance Fund Capital Outlay Budget includes $25,000 for the purchase of a command vehicle for the Fire Department. This vehicle will be used as a command vehicle for the fire chief and, when necessary, to tow the rescue boat and hazardous materials trailer to emergency scenes. The current command vehicle will be maintained for use by the shift lieutenant for day-to-day needs.

Discussion: Subsequent to the required public notice, bids for a ¾ ton 4x4 crew cab pick-up truck were opened on November 1, 2011, with three dealers submitting the following bids: Prescott Brothers Ford $27,314.82, Sawicki Motor Co. $28,568.00 and Schimmer Inc. $29,566.86. Fire Chief Brian Johnson has reviewed the bids and recommends the acceptance of the apparent low bidder, Prescott Brothers, with their bid of $27,314.82 for a 2012 Ford F250. The recommended bid is approximately $2,400 over the budgeted amount but other expenditures in the ambulance fund have come in under budget. Considering these variances the capital expenditures overall for the Ambulance Fund will remain within the budgeted amount.

Recommendation: Approve the bid from Prescott Brothers Ford for a total of $27,314.82 and reject all other bids.

Agenda Item #3 - Resolution for Improvement - South 3rd Street and Avenue H

References: default Attached Memo from City Engineer Sam Tesreau

default Attached Bid Tabulation

default Attached Resolution for Improvement by Municipality

Recommended Action: Consider a Resolution for Improvement by Municipality and bids for improvements on South 3rd Street and Avenue H

History and Fact: Several streets in the southeast quadrant of the City were identified by council members and City staff in 2005 for reconstruction and urbanization. Since that time, South 1st Street, South 2nd Street and sections of Avenue G have been reconstructed and urbanized. The 2011-12 Capital Improvements Fund (CIF) budget includes $197,000 for improvements on South 3rd Street from Avenue G to Avenue H and a portion of Avenue H from Main Street to 2nd Avenue. The improvements planned include curb and gutter, pavement, storm sewer, sidewalks and ramps. On July 25, 2011 the Mayor and Council approved an ordinance authorizing City staff to acquire property in this area to expand the right of way at an estimated cost of $2,570. This property acquisition has been completed and the plans have been finalized.

Discussion: Subsequent to the required public notice, bids were opened by the City Clerk on November 7, 2011 with six contractors submitting bids. City Engineer Sam Tesreau has reviewed the bids and recommends the acceptance of the apparent low bidder, Northern Illinois Service Company, with a bid of $364,814.45. This is a multi fiscal year project. In addition to the funds included in the 2011-12 CIF budget, a portion of the project will also be included in the 2012-13 CIF budget. The improvements will be funded through transfers from the Motor Fuel Tax fund and/or the Utility Tax Fund. Construction is expected to begin by the end of November and should be completed by July of 2012.

Recommendation: Approve a Resolution for Improvement by Municipality Under the Illinois Highway Code

Accept the bid from Northern Illinois Service Company in the amount of $364,814.45 subject to final concurrence of IDOT

Agenda Item #4 - Executive Search Services Proposal – General Manager Rochelle Municipal Utilities

References: Executive Search Services Proposal

Recommended Action: Consider a proposal from Mycoff, Fry & Prouse, LLC to conduct an executive search to recruit a General Manager for Rochelle Municipal Utilities

History and Fact: Rochelle Municipal Utilities (RMU) has been in operation since the late 1800's and currently provides electric, water, water reclamation and communication services to over 7,000 commercial and residential customers in the greater Rochelle region. The business operations of this multi-million dollar enterprise have been administered for many years by the RMU General Manager. Since May of this year, following the resignation of RMU General Manager Ed Carr, the position has remained vacant. The Administrative Committee of the City Council discussed this vacancy on October 3, 2011 along with a proposal for an executive search to fill the position. The consensus of the committee was to discuss the RMU General Manager vacancy and the associated proposal with the full council.

Discussion: The future of RMU, under the direction of the General Manager, is extremely important to both the community as a whole and the City of Rochelle's overall financial position. For this reason, an executive search proposal was requested from the firm of Mycoff, Fry & Prouse, a recognized leader in the recruitment of executives and management personnel in the utility industry. The firm has identified a scope of services to facilitate the selection of the RMU General Manager which includes: gathering information from RMU and the City, developing a position profile, conducting recruitment activities and interviewing candidates for a minimum fee of $39,000, plus expenses. Providing the Mayor and Council approve the proposal, City Staff will participate in interviews with the finalists as well as the final selection of the RMU General Manager. Although the cost for this search was not included in the 2011-12 budget, it should be offset by the fact that the position has remained vacant for several months.

Recommendation: Authorize the City Manager to sign the proposal from Mycoff, Fry & Prouse, LLC to conduct an executive search to recruit a General Manager for Rochelle Municipal Utilities

 Agenda Item #5 - Resolution Authorizing the Mayor to Submit an EDA Application and Accept Award

References: default Fax from the Regional Director of the EDA

default Resolution

Recommended Action: Consider Resolution

History and Fact: The City of Rochelle submitted an application to the Economic Development Administration (EDA) earlier this year for assistance through the Public Works and Economic Development Program for the construction of rail, water and sewer improvements to serve Nippon Sharyo and Coated Sand Solutions. The total cost of the project included in the application is $6,860,000, of which $2,700,000 is being considered by the EDA for funding.

Discussion: On November 3, 2011 the City received a non-binding letter from the EDA which congratulates the City of Rochelle on the selection of the application for further consideration. In order for the EDA to proceed with processing the application they have requested, among other things, a resolution from the City Council "giving the Mayor the authority of an authorized representative to submit an application and to accept an award on behalf of the City of Rochelle." All requested information must be submitted to the EDA by November 30, 2011.

Recommendation: Approve a Resolution Authorizing the Mayor to Submit an Application to the Economic Development Administration and Accept an Award on Behalf of the City of Rochelle

Agenda Item #6 - Extension of Letter of Credit – Squires Landing

References: default Memo from City Engineer Sam Tesreau

Recommended Action: Consider extension of letter of credit

History and Fact: A letter of credit, No. S2005-246 for $1,514,361.53, was submitted to the City of Rochelle by Squires Landing LLC to secure their obligations related to land improvements for Squires Landing Subdivision located along 20th Street. Since that time, due to the completion of the majority of the required improvements, the Mayor and City Council have approved various amendments to the letter of credit which have reduced the amount and extended the expiration date. The most recent letter of credit for $48,000 had an expiration date of October 31, 2011.

Discussion: To date the sidewalk and ramps within the public right of way and along the undeveloped lot frontages within the subdivision have not been completed. City staff members believe that the construction and connection of these sidewalks to the existing sidewalk network are important for continuity. This topic was discussed on October 3, 2011 by the Administrative Committee of the Council. The consensus of the committee was to either allow an extension of the letter of credit or to draw on the letter of credit and complete the improvements. Springcreek Development Group has responded by amending the expiration date of the letter of credit to October 31, 2012 in order to complete the remaining land improvements. This financial instrument will provide the City with the assurance that the public improvements will either be completed by the Developer or by the City via the letter of credit.

Recommendation: Approve an extension of the letter of credit until October 31, 2012