I. CALL TO ORDER:
• Pledge to the Flag
• Prayer
II. ROLL CALL:
III. PROCLAMATIONS, COMMENDATIONS, ETC:
• Public Works Week May 20-26, 2018
• Police Week May 13-19, 2018
IV. REPORTS AND COMMUNICATIONS:
• Mayor
o Appoint William Seimer as a Voting Member to the Airport Advisory Board Term 05/14/18-07/01/20
o Appoint Robert Fordham as a Voting Member to the Railroad Advisory Board Term 05/14/18-07/01/19
• Council Members
• Retirements – Ernie Goebel & Wayne Pelletier
V. PUBLIC COMMENTARY:
VI. BUSINESS ITEMS:
1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) Approve Minutes of City Council Meetings – pdf 04/16/18 (95 KB) , pdf 04/23/18 (85 KB)
b) Accept and Place on File Minutes of Golf Course Advisory Committee – pdf March 26, 2018 (80 KB)
c) Accept and Place on File Minutes of Airport Advisory Board – pdf January 22, 2018 (154 KB)
d) Accept and Place on File Minutes of Planning and Zoning Commission – pdf April 2, 2018 (152 KB)
e) Approve Exceptions – pdf 04/18/18-05/07/18 (109 KB)
f) Approve Bills – pdf 05/08/18 (235 KB)
g) Approve Payroll – pdf 04/09/18-04/22/18 (53 KB)
h) pdf Approve Change in Authorized Signature at Financial Institutions (6 KB)
i) Approve Revised Resolution Authorizing Lincoln Highway Heritage Festival Parade – pdf August 19, 2018 (42 KB)
j) Approve Ale on Lincoln Planning Committee Request – pdf June 9, 2018 (102 KB)
k) Approve VFW Poppy Drive Request – pdf May 26, 2018 (20 KB)
l) Approve Mexican Independence Celebration Request – pdf September 15, 2018 (208 KB)

2) Well 10 Building Replacement Project
3) Well 10 Pump Replacement Project
4) Resolution Authorizing the Execution of a Non-Exclusive Easement, Defeasible Parking Easement With Storybook Gardens LLC
5) Resolution Approving a Redevelopment Agreement for the Real Estate Located at 413 W. 4th Avenue
6) Updated Northern Gateway Tax Increment Financing (TIF) District Feasibility Study and Redevelopment Plan
7) Ordinance Approving a Variance of the Rear Yard Setback and to Exceed Lot Coverage for Well 10 - 200 Southview Drive
8) Ordinance Authorizing the Purchase Order and Financing Agreement for the Purchase of One Cardiac Monitor Capable of Defibrillation and the Disposal of One Malfunction Cardiac Monitor for Trade-In Value
9) Proposal for Classification and Compensation Study from AJ Gallagher
10) Ordinance Approving Land Lease Agreement between The City of Rochelle and LAMAR Companies
11) Ordinance Amending Article IV, Section 2-264 of the Municipal Code Entitled “An Early Separation Incentive Program for Certain Employees of the City of Rochelle”
VII. DISCUSSION ITEMS:
VIII. EXECUTIVE SESSION
IX. ADJOURNMENT

The Council Meeting will be broadcast live on Facebook

Agenda Item #2: Well 10 Building Replacement Project

Staff Contact: Adam Lanning

Summary: Well 10, located on Southview Drive is a main supply well that is in need of rehabilitation to insure adequate supply for our water system. Design is complete for replacing the existing well house and pump and was done to accommodate a future radium removal plant if the need ever arises.

Proposals for a new well house were received and opened on April 12th at 11:00 am at the Rochelle City Council Chambers. A total of 6 proposals were received and all proposals were submitted with the required bid security ranging from $918,725 to $1,108,750. Two addenda were issued for Contract 1 prior to the bid opening.

The original cost estimate was $1,000,000 including engineering, but the total project cost came in at $1,204,830. The current cash balance in the water fund is $5,000,000 with 1255 days liquidity.

Recommendation: Approve the construction contract with Larson and Larson Builders in the amount of $918,725.

Supporting Documents:
pdf Willett Hoffman Review of Proposals (173 KB)

Agenda Item #3 - Well 10 Pump Replacement Project

Staff Contact: Adam Lanning

Summary: As part of the Well 10 project, the pump and motor will also need to be replaced and was bid as a separate contract. A total of 4 bids were received ranging from $150,605 to $193,700 with 1 addenda issued prior to the bid opening on April 12th. The lowest bid came from Water Well Solutions, which have done work in Rochelle before.

Recommendation: Approve the construction contract with Water Well Solutions in the amount of $150,605.

Supporting Documents:
  pdf Willett Hoffman Review of Proposals (173 KB)

Agenda Item #4 - Resolution Authorizing the Execution of a Non-Exclusive Easement, Defeasible Parking Easement With Storybook Gardens LLC

Staff Contact: Jeff Fiegenschuh, City Manager

Summary:  The City has been working with a local property owner on a potential redevelopment of property located at 429 Lincoln Highway. As part of this development, the developer has concerns about losing valuable parking in the city owned lot directly east of the proposed venue.

As a way to mitigate these concerns, staff and the City attorney have been working with the developers and their attorney on a non-exclusive parking easement that works for them and the City. If approved the easement will ensure that the parking area remains a public parking space available for public use. The technical terms of the proposal are as follows:
• The City is granting a non-exclusive, defeasible easement for parking to Storybook Gardens LLC.
• Storybook will pay 100 dollars for the easement.
• The City will still be able to host its events and add other events, which utilize the parking lots.
• The two lots in question are 24-24-340-010 and 24-24-340-012 (east of the venue)
• The easement is non-exclusive, so the parking lot can still be used by others.
• The easement is needed in order to assist with the operation of the proposed wedding venue/banquet hall at 429 Lincoln Hwy.
• Should Storybook fail to redevelop the furniture store as a wedding venue/banquet hall, then the easement is revoked.
• Should Storybook fail to maintain operations for a time period longer than 90 days, then the easement is revoked.
This project, coupled with other positive developments in our downtown area, will ensure our revitalization and branding efforts are successful

Recommendation: Approve Resolution Authorizing the Execution of a Non-Exclusive Easement, Defeasible Parking Easement With Storybook Gardens LLC

Supporting Documents:
pdf Resolution Authorizing the Execution of a Non-Exclusive Easement (104 KB)
pdf Grant of Non-Exclusive, Defeasible Parking Easement (292 KB)

Agenda Item #5 - Resolution Approving a Redevelopment Agreement for the Real Estate Located at 413 W. 4th Avenue

Staff Contact: Jeff Fiegenschuh, City Manager & Michelle Pease, Community Development Director

Summary: The City of Rochelle is the current property owner of real estate located at 413 W. 4th Avenue, Rochelle, Illinois which is located in the Downtown and Southern Gateway TIF District. A Request for Proposal (RPF) was made public and all eligible interested parties were interviewed. The proposal submitted by Storybook Gardens, LLC was selected to redevelop the property.

Storybook Gardens, LLC intends to redevelop the property by modifying the building and potentially developing a boutique hotel and/or other authorized uses, including a restaurant, retail sales outlet, and commercial offices.

The redevelopment of the property will require or involve: 1) the repair of the roof, 2) any reasonably required repair or replacement of the major mechanicals of the building, including electric, plumbing, HVAC and gas systems, 3) installation of a fire suppression system consistent with the intended use of the building as a boutique hotel or the other authorized uses, and 4) the modification of interior and exterior rooms, restrooms, surfaces, and methods of ingress and egress, to comply with all federal, state and local building codes and laws for the intended use as a boutique hotel or other authorized uses.

Should Storybook Gardens, LLC fail to complete the redevelopment within three years or fail to meet the obligations under the Redevelopment Agreement, then the City may take all necessary actions to enforce this agreement or condemn the property.

The purchase price of the property established in the Redevelopment Agreement is $10,000.

Recommendation: Authorize a Resolution Approving a Redevelopment Agreement for the Real Estate Located at 413 W. 4th Avenue

Supporting Documents:
pdf Resolution Approving a Redevelopment Agreement for the Real Estate Located at 413 W. 4th Avenue (100 KB)
pdf Redevelopment Agreement between the City of Rochelle and Storybook Gardens, LLC (185 KB)

 Agenda Item #6 - Updated Feasibility Study and Redevelopment Plan

Staff Contact:  Jeff Fiegenschuh, City Manager & Michelle Pease, Community Development Director

Summary: At the April 23rd City Council Meeting, the City passed the required ordinance under the TIF Statute which established the Interested Parties Registry, the Inducement Resolution and the Feasibility Resolution.  Additionally, Moran Economic Development presented the eligibility/feasibility study and Northern Gateway Redevelopment Plan with the City Council based upon a proposed Redevelopment Area.  The Mayor and Council agreed that parcels should be added to the Redevelopment Area, which ultimately would change the eligibility/feasibility study and Plan.

Under direction from the Rochelle City Council, Moran Economic Development, LLC has amended the boundary area to include parcels recommended for inclusion by the Council.  The amended eligibility/feasibility study and plan were altered to incorporate these changes.  The area that is proposed for tax increment financing still encompasses parcels along IL Route-38, IL Route-251 and Flagg Rd.  The area continues to qualify for tax increment financing.

Next Steps:

At the next Council meeting, the City will be asked to pass an ordinance establishing the TIF Public Hearing date of July 23, 2018 at 6:30PM.  The City will also notify taxing districts of an upcoming Joint Review Board Meeting (meeting with taxing districts).  In addition, the City will begin the statutory process of notifying residents 750’ from the Redevelopment Area and those parties within the Redevelopment Area.  See Schedule.

Recommendation:    

Council to make a Motion to place the TIF Redevelopment Plan & Feasibility Study on file (10 days) and to approve sending the TIF Redevelopment Plan & Feasibility Study to all affected taxing districts

Supporting Documents: 

pdf Updated Northern Gateway TIF Redevelopment Plan (12.05 MB)

pdf Updated Northern Gateway TIF Schedule of Events (36 KB)

 Agenda Item #7 - Ordinance Approving a Variance of the Rear Yard Setback and to Exceed Lot Coverage for Well 10 - 200 Southview Drive

Staff Contact: Michelle Pease/Kip Countryman

Summary:  Well #10 was constructed in 1965 and is located at 200 Southview Drive. Well #10 is a major water supply well and is in need of replacement. The building and all equipment is beyond repair and design is complete with a bid opening held on April 12th for complete replacement of the building and all the equipment. The design was done to accommodate a future radium removal plant with the new building set within a footprint to allow an expansion without closing the existing well. The original well was constructed in the middle of the lot and the new plant and equipment is designed to be attached to the old equipment. To allow this type of construction RMU is asking for a variance to encroach 10 feet on the rear setback requirement of 20 feet to allow for a future addition of a radium treatment facility. (See sheet C-4).

The proposed building was designed to match the surrounding architecture and will be a great improvement to the neighborhood. (See sheet A-3).

In addition to the new building and equipment, the new facility will require daily monitoring and delivery of various materials along with maintenance of the facility. To allow this type of use the design requires additional paving on the East side of the building to accommodate deliveries and off street parking of equipment. This additional paving exceeds the one third allowable hard surfacing and structures on a residential lot (See sheet C-2) by 636 square feet. Willet Hoffman has provided detention areas within the lot to accommodate the increased volume of storm water runoff.

The property is surrounded by Light Industry on the North and Residential R-2 on the South, East and West.

The petitioner is requesting a variance to encroach on the building setback 10 feet and exceed the allowable lot coverage by 636 square feet. Under Section 110-101 a variance may be granted where practical difficulties or unusual hardships are determined to exist, but only after a public hearing has been duly advertised and held by the board of zoning appeals which may recommend such restrictions and conditions upon the premises benefitted by the variance as it considers necessary, so that the public health, safety and general welfare may be secured and substantial justice done.

The Planning and Zoning Commission held a public hearing on May 7th to review the petition from Rochelle Municipal Utilities. After review of the facts, the Planning and Zoning Commission voted 4-0 to recommend to City Council approval of the variance of building setbacks and to exceed the allowable lot coverage by 636 square feet.

Recommendation: Authorize Ordinance Approving a Variance of the Rear Yard Setback and to Exceed Lot Coverage for Well 10, 200 Southview Drive

Supporting Documents:
pdf Ordinance (9 KB)
pdf Civil drawings sheet (C-4, A-3, C-2) (134 KB)

 Agenda Item #8 - Ordinance Authorizing the Purchase Order and Financing Agreement for the Purchase of One Cardiac Monitor Capable of Defibrillation and the Disposal of One Malfunction Cardiac Monitor for Trade-In Value

Staff Contact: David Sawlsville, Fire Chief

Summary: The Fire Department is requesting permission to purchase a Zoll 12-Lead Cardiac Monitor. This purchase will replace a Physio-Control Lifepak 12 12-Lead cardiac monitor that was damaged during a call and is now non-functional. Due to the age of the device, we have been unable to have the cardiac monitor serviced by any certified technician, including Physio-Control. We have been using a 3-lead cardiac monitor in place of the broken device; however, many important cardiac conditions and treatments rely on the conduct and assessment of a 12-Lead Cardiac Rhythm, as dictated by our IDPH Region 1 Standard Medical Orders.

Our Zoll sales representative is willing to extend us terms that will allow us to make a moderate payment in this budget year, with the remaining portion of the purchase price in the 2019 budget year. They are also willing to take our non-functional cardiac monitor as a trade-in.

Recommendation: Approve Ordinance Authorizing the Purchase Order and Financing Agreement for the Purchase of One Cardiac Monitor Capable of Defibrillation and the Disposal of One Malfunction Cardiac Monitor for Trade-In Value

Supporting Documents:
pdf Approve Ordinance Authorizing the Purchase Order and Financing Agreement for the Purchase of One Cardiac Monitor (170 KB)
pdf Zoll Cardiac Monitor Quotation (169 KB)

 Agenda Item #9 - Proposal for Classification and Compensation Study from AJ Gallagher

Staff Contact: Nancy Bingham

Summary: On February 21st an RFP for Classification and Compensation Study was submitted to five (5) companies. We received three (3) proposals back by the deadline of March 30th. Two (2) of the three (3) had fees over, but within range of, our budgeted amount of $30,000.

Reference interviews were conducted on those two (2) companies by our intern Jake Peters. Followed by phone interviews with representatives from each company conducted by the City Manager and Nancy Bingham.

After further discussion certain work would be performed by city staff/intern to bring the fees within budget. The staff would verify questions identified by the consultants in the position description questionnaires; provide contact information of survey participants and conduct the survey follow-up.

The Classification and Compensation Study project for non-union positions will take approximately 16 weeks to complete. This will include positions held by approximately 50 individuals. There will be meetings with both management and staff to complete the project. Questionnaires will be completed, interviews conducted and data will be reviewed and analyzed to recommend the classification structure (including FSLA status) using the application of the “Decision Band Method”. Surveys will be conducted, benchmarking identified and competitive analysis performed to recommend the pay structure. The job descriptions will be reviewed and updated to include soft skills. This will all be included in a final report and presentation.

Training will also be provided to staff for necessary tools to maintain the system.
During this process the organizational chart will be updated and include a detailed org chart by department.

The recommendation to accept proposal from AJ Gallagher is based on reputation, references and the project approach and methodology

Recommendation: Approve the Proposal from AJ Gallagher for the Classification and Compensation Study.

Supporting Documents:
pdf Classification and Compensation Study (765 KB)
Written proposal from AJ Gallagher available upon request

Agenda Item #10 -  Ordinance Approving Land Lease Agreement between The City of Rochelle and LAMAR Companies

Staff Contact: Adriana Milan

Summary:  On May 9, 2011, the City Council approved the assignment of two land lease agreements between Prologis and CBS Outdoor Signs to the City of Rochelle. One sign is located on the City Industrial Rail right of way along the edge of I-88; the other sign is located east of Caron Road inside the City’s 50 ft. right of way. These signs were purchased by LAMAR Companies in the fall of 2017. Both agreements have expired as of May 1, 2018 therefore, a new lease agreement is necessary. The term of the two agreements is for five years for a combined total lease amount of $8,082.00 per year. The amount received from the land lease goes to the Economic Development department marketing fund.

Recommendation: Authorize Ordinance Approving Land Lease Agreement between The City of Rochelle and LAMAR Companies

Supporting Documents:
pdf Ordinance Approving Land Lease Agreement between The City of Rochelle and LAMAR Companies Sign (166 KB)

pdf Location Lease - #34059-01 (185 KB)

pdf Location Lease - #34058-01 (185 KB)

pdf Rider #1 (76 KB)

 Agenda Item #11 - Ordinance Amending Article IV, Section 2-264 of the Municipal Code Entitled “An Early Separation Incentive Program for Certain Employees of the City of Rochelle”

Staff Contact: Jeff Fiegenschuh, City Manager

Summary: When the last early separation incentive was offered the minimum age approved was sixty (60) and the years of accumulated service were fifteen (15). At the time, staff had discussed the idea of lowering the eligibility age to 55. However, it was decided that the best course of action at the time was limiting the program to the previously approved parameters.

Since the last plan was approved, the City/RMU has had 6 out of the nine eligible employees participate. The 6 positions will not be replaced for a total savings of approximately $900,000 over the next two years. I have been approached by numerous employees who would like us to consider another early separation plan. These particular employees would have opted into the last plan, but could not due to the minimum age requirements. Under the new plan, the City would offer the same two years of insurance, but the age requirement would be dropped to 55 and the years of accumulated service would be dropped to 12. There are 16 employees who are eligible to participate.

Of those who are eligible, 3 are public safety and would need to be replaced, but with an employee at a lower rate of compensation. Although the public safety employees would need to be replaced there is still some nominal savings associated with these respective departments. For the fire department, the savings would be between $16,000 and $25,000 for the first year depending upon which insurance coverages the new employee opted into. It is also important to note that the new employee will be a Tier 2 pension employee. These cost savings will be realized long-term for the City.

The savings associated within the police department would be between $10,000-$20,000 annually depending upon which insurance option the new employee chooses to take. Another important note is any new employee hired would fall under the new (higher) health insurance contributions negotiated in the FOP contract. Again these assumptions are based the idea that those who are eligible to participate will.

The breakdown of qualified employees in the other departments are as follows:

City Hall-2
Streets-2
Community Development/Chamber-2
Water/Water Reclamation –2
Electric Distribution/Generation-4
Utility Billing-1

Within these respective departments, those qualifying positions will be consolidated into other positions, replaced with part-time personnel or replaced in full after the two-year insurance plan has ended. The savings vary by department and I can provide specific numbers if you let me know prior to the council meeting.

If approved the plan will go into effect immediately with an enrollment period effective upon passage of this ordinance through December 31, 2018. The date of any employee’s separation under this program shall be no later than April 1, 2019. Enrolled employees must agree to utilize and exhaust any accrued and unused vacation time such that no employee may receive payment for any vacation time.

Recommendation: Authorize an Ordinance Amending Article IV, Section 2-264 of the Municipal Code Entitled “An Early Retirement Incentive Program for Certain Employees of the City of Rochelle”

Supporting Documents: 

pdf Ordinance Amending Article IV, Section 2-264 of the Municipal Code Entitled “An Early Retirement Incentive Program for Certain Employees of the City of Rochelle” (146 KB)
pdf Agreement to be signed by employee and City Manager (164 KB)

I. CALL TO ORDER:

II. ROLL CALL:

III. PUBLIC COMMENTARY:

IV. DISCUSSION ITEM
1) Strategic Planning Retreat

ADJOURNMENT

I. CALL TO ORDER:

II. ROLL CALL:

III. PUBLIC COMMENTARY:

IV. DISCUSSION ITEM
1) Strategic Planning Retreat

ADJOURNMENT

I. CALL TO ORDER:
• Pledge to the Flag
• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

IV. REPORTS AND COMMUNICATIONS:
• Mayor
• Council Members
• Good News – Officer Ryan Beery and K9 Axel
                        Tim Isley
                        Sue Messer

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:
1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) Approve Minutes of City Council Meeting – pdf 10/10/17 (200 KB)
b) Approve Exceptions – pdf 10/04/17-10/16/17 (68 KB)
c) Approve Bills – pdf 10/17/17 (206 KB)
d) Approve Payroll – pdf 09/25/17-10/8/17 (52 KB)
e) pdf Accept and Place on File Budget Summary Month Ending 9/30/17 (810 KB)
2) Resolution Approving an Administrative Policy for Mitigating Energy Transaction Risks
3) Ordinance Authorizing the Acquisition of the Property Commonly known as 122 South 9th Street by Deed in Lieu of Foreclosure
4) Extension of Loan Guaranty for Rail Right of Way
5) Ordinances Approving Utility Easement Agreements – Steward Road Transmission Line

VII. DISCUSSION ITEMS:
1) Solar Rate

VIII. EXECUTIVE SESSION
2) Pending or imminent litigation. Section (c) (11)
3) Purchase or lease of real property for City’s use. Section (c) (5)

IX. ADJOURNMENT

Agenda Item #2 - Administrative Policy for Mitigating Energy Transaction Risk

Staff Contact: Jason Bird, Superintendent of Electric Operations

Summary: The City of Rochelle, through Rochelle Municipal Utilities, owns and operates an electric distribution system in accordance with Illinois law for the purpose of providing and delivering low cost, reliable power to its residents. The City is dedicated to keeping the cost of electricity stable and competitive through a variety of means, including ownership of generation, participation in power projects through its membership in the Northern Illinois Municipal Power Agency and entry into power and energy purchase transactions with wholesale providers.

This administrative policy for mitigating energy transaction risks (Policy) details the essential components of a prudent risk management process for its energy procurement activities. The Policy is intended to provide an overarching framework and control structure specifically for the City's participation in deregulated wholesale energy markets. The Policy recognizes that there are certain risks inherent in such transactions. The City is responsible for minimizing those risks in order to meet its mandate of maintaining low and stable electric rates for its retail customers, as well as to maintain its strong financial standing more generally.

Recommendation: Adopt a Resolution Approving an Administrative Policy for Mitigating Energy Transaction Risks

Supporting Documents:
pdf Administrative Policy for Mitigating Energy Transaction Risks (47 KB)
pdf Resolution for the Administrative Policy for Mitigating Energy Transaction Risks (68 KB)

 Agenda Item #3 - Ordinance Authorizing the Acquisition of the Property at 122 South 9th Street by Deed in Lieu of Foreclosure

Staff Contact: Michelle Pease, Community Development Director

Summary: The current owner of the property at 122 South 9th Street, Cheryl Barnes, has agreed to convey the property to the City through the deed in lieu of foreclosure process. In 2016 an order was entered in Ogle County finding the home at the property to be structurally unsound, dangerous, and beyond reasonable repair and authorizing its demolition. The structure was subsequently demolished at the City’s expense and a Municipal Lien was recorded in the amount of $11,722.94 against the owner for the costs associated with the demolition.

In view of the lack of equity in the property and to avoid further time-consuming, expensive and needless litigation, the owner has agreed to accept a settlement in which the City would pay the owner $500 in exchange for the property being transferred to the City by deed in lieu of foreclosure. If the City chose to foreclose instead of accepting a deed in lieu, the costs of foreclosing would be approximately $1,500 and the foreclosure process would take a minimum of 10 months.

City staff believes it is in the community’s best interests to take ownership of the property in order to minimize the blighting influence on the neighborhood and allow the property to be put to a productive use. The transfer of the property, without the necessity of litigation, is of direct benefit to the City, and a one-time lump sum payment of $500 to the owner is fair and adequate consideration for the City’s entry into this transaction. There are currently taxes owed on the property, but back taxes will be extinguished when the property is in public ownership.

Recommendation: Approve an ordinance authorizing the acquisition of a property at 122 South 9th Street by Deed in Lieu of Foreclosure.

Supporting Documents:
pdf Ordinance (81 KB)
pdf Deed in Lieu of Foreclosure (144 KB)
pdf GIS parcel (403 KB)

Agenda Item #4 - Consider an extension of Loan Guaranty for Rail Right of Way

Staff Contact: Jason Anderson, Economic Development Director

Summary: In 2016 the City of Rochelle applied for and received a $3.42M EDA grant for the purpose of extending the City of Rochelle Railroad (Project Co-Op). Since this grant was awarded the City has been informed of a matching grant that is available from the IDOT Freight Rail Program in the amount of $2.58M. The total estimated cost for Project Co-Op is $7M. The project required additional rail right of way be purchased so that the project could move forward. In December of 2016 the City Council authorized the City Manager to sign a loan guaranty which allowed GREDCO to borrow $697,095 for one year for the purchase of the rail right of way on behalf of the City. Interest on the loan is covered through the City of Rochelle Railroad revenues.

While GREDCO continues to work on future rail right of way acquisitions and the City continues to seek additional funding sources for rail expansions, staff recommends extending the loan through December 31, 2018.

Recommendation:

Approve GREDCO’s request to extend the Loan Guaranty for another year; which will allow GREDCO to continue the advancement of the project to further develop the City of Rochelle Industrial Rail.

Supporting Documents:

pdf Original Loan Document (246 KB)

Agenda Item #5 - Ordinances Approving Utility Easement Agreements - Steward Road Transmission Line

Staff Contact: Jason Bird, RMU Electric Superintendent

Summary: The City has been working for several months to obtain utility easements for the Steward Road Reconductoring project. Through negotiation and design, we have been able to reduce the size and cost of the easements. Including these two proposed agreements, a total of ten easement agreements have been finalized and two more are anticipated in the next month.

Recommendation:

Authorize an Ordinance Approving a Utility Easement Agreement with Linda Herrmann

Authorize an Ordinance Approving a Utility Easement Agreement with Brossman Marital Trust

Supporting Documents:
pdf Ordinance Approving a Utility Easement Agreement with Linda Herrmann (84 KB)
pdf Easement Agreement (1.15 MB)
pdf Legal description (702 KB)
pdf Ordinance Approving a Utility Easement Agreement Brossman Marital Trust (84 KB)
pdf Easement Agreement (1.15 MB)
pdf Legal description (761 KB)

Discussion Item #1 - Solar Rate

Staff Contact: Barbara Bell, RMU Customer Service Supervisor

Summary: RMU retained Utility Financial Solutions LLC to conduct an avoided cost determination for the value of solar. The study was conducted using RMU’s system load and class load data. Mark Beauchamp from UFS will present the results of the study and respond to questions from the Mayor and City Council.

I. CALL TO ORDER:

II. ROLL CALL:

III. EXECUTIVE SESSION
A. The setting of a price for sale or lease of property owned by the City. Section (c) (6)

IV. ADJOURNMENT

I. CALL TO ORDER:

• Pledge to the Flag
• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:
IV. REPORTS AND COMMUNICATIONS:
• Mayor
• Council Members
• pdf Financials – July 2017 (794 KB)
V. PUBLIC COMMENTARY:
VI. BUSINESS ITEMS:
1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) Approve Minutes of City Council Meeting – pdf 8/14/17 (135 KB)
b) Accept and Place on File Minutes of Golf Course Advisory Committee - pdf 7/24/17 (82 KB)
c) Approve Bills – pdf 8/22/17 (227 KB)
d) Approve Exceptions – pdf 8/9/17-8/21/17 (76 KB)
e) Approve Payroll – pdf 7/31/17-8/13/17 (54 KB)
f) Authorize the closure of 4th Avenue between Lincoln Highway and 6th Street for Vinny’s Barbershop Customer Appreciation Day – pdf 9/16/17 (23 KB)
g) Approve Hay Day Committee request to close various streets and parking lots – pdf October 14, 2017 (102 KB)
h) pdf Approve Revised Resolution Relating to Participation by Elected Officials in the Illinois Municipal Retirement Fund (90 KB)
i) pdf Approve RTHS Homecoming Parade Request (337 KB)
2) Public Hearing for Well 12 Setback Ordinance – No Action
3) Development Agreement between the City and Seldal Properties – 7th Avenue Townhomes
4) Intergovernmental Agreement between the City of Rochelle and Ogle-Lee Fire Protection District
5) Ordinance Authorizing Northern Illinois Gas Company Its Successors and Assigns, to Construct, Operate and Maintain a Gas Distributing System in and through the City of Rochelle
6) Ordinance Amending Travel, Meal and Lodging Expenses Policy
7) Minimum/Maximum Additional Billing for Contract Year 2011– Illinois Municipal League Risk Management Association
8) Construction Bid for Steward Road Transmission Line

VII. DISCUSSION ITEMS:
1) USEPA Brownfields Clean Up Grant Application
2) Discretionary Spending Under $20,000
VIII. EXECUTIVE SESSION
IX. ADJOURNMENT

Agenda Item #2 - Public Hearing for Well 12 Maximum Setback Ordinance

Staff Contact: Adam Lanning

Summary:

Well 12, located on Hayes Road is a main supply well constructed in 2016 to service the industrial corridor. To maintain consistency with our existing wells and recommendations from the IEPA, it is recommended to adopt an ordinance establishing a 1000 ft. maximum setback radius and a 200 ft. minimum setback. This setback zone would prohibit certain structures or items to be constructed or stored within the setback radius. The IEPA recommends adopting the ordinance as a measure to protect the public water supply from contamination. Prior to adopting the ordinance it is a requirement of the Groundwater Protection Act, Section 14.3(c) that we hold a public hearing to allow comments regarding the proposed ordinance.

Recommendation: Open a public hearing to allow for public comment regarding the proposed ordinance.

Supporting Documents:
  pdf Ordinance with Exhibit 1 (87 KB)

  pdf Appendix A (320 KB)

  pdf Maximum Setback Zone Workbook (1.36 MB)

Agenda Item #3 - Ordinance Approving Development Agreement with Seldal Properties

Staff Contact: Kip Countryman

Summary:

Seldal Properties has purchased and subdivided 4 parcels along Seventh Avenue into one developed lot and one outlot for the purpose of constructing two 10 unit multi-family residential developments.
Due to the cost incurred with the development including construction of the buildings, site engineering, mass grading and water detention, the developer is asking that the cost of the sewer connection fees be reduced to $1,200.00 from the calculated cost of $12,000.00.
The sewer fees for a new residential multi-family development are charged based on a calculation of the number of plumbing fixtures that will impact the current city sewer infrastructure. The connection charge for the City of Rochelle is based on population equivalents as stated by the Illinois Recommended Standards for Sewage Works. The fee for a 20 unit, 2 bedroom apartment is calculated by the following equation: P.E. (3) x # of units (20) x gal/person (100) / 100 x 200 = $12,000.
The purpose for the hookup fee is to cover future infrastructure needs (collection system, pump stations and wastewater treatment plant) as a community grows. It is not the cost of physically connecting to the publicly owned sewer, that particular cost is covered by the private owner.

Recommendation: Consider an Ordinance Approving the Development Agreement with Seldal Properties.

Supporting Documents:
pdf Ordinance (66 KB)
pdf Development Agreement (69 KB)

Agenda Item #4 - An Ordinance Approving an Intergovernmental Agreement between the City of Rochelle and Ogle-Lee Fire Protection District

Staff Contact: Interim City Manager Sue Messer

Summary:

The City Council approved an Intergovernmental Agreement with Ogle Lee Fire Protection District on April 27, 2015 for a term of three years at an annual rate of $60,000. The agreement included a provision that the district trustees would call for an Ambulance Service Referendum requesting a special tax levy in March of 2016. Providing that the referendum passed, the District agreed to increase its monthly payments to the City by the amount of the actual cost to the City in providing ambulance and rescue services to the District. The voters in the Ogle Lee Fire Protection District subsequently approved the Ambulance Service Referendum.

A new five year agreement has been negotiated between representatives of the City and Ogle Lee Fire Protection District beginning October 1, 2017 and ending September 30, 2022. The contract continues to provide for the day-to-day administration of the Ogle/Lee-City Departments as a single entity under the direction of the City’s Fire Chief and City Manager. The proposed five year agreement includes an increase in the compensation to $86,500 per year with an annual increase of 3% beginning May 1, 2018.

The agreement will be presented to the Ogle Lee Fire Protection District Board at its September 12th meeting.

Recommendation: Authorize an Ordinance Approving an Intergovernmental Agreement between the City of Rochelle and Ogle-Lee Fire Protection District

Supporting Documents:
pdf Ordinance Approving an Intergovernmental Agreement between the City of Rochelle and Ogle-Lee Fire Protection District (145 KB)
pdf Intergovernmental Agreement between the City of Rochelle and Ogle-Lee Fire Protection District (65 KB)

Agenda Item #5 - Ordinance Authorizing Northern Illinois Gas Company its Successors and Assigns, to Construct, Operate and Maintain a Gas Distributing System in and through the City of Rochelle

Staff Contact: Interim City Manager Sue Messer

Summary:

The Rochelle City Council approved a Gas Ordinance with Allied Gas Company in November of 1965. The ordinance gave the company, its successors and assigns, the right to construct, operate and maintain a gas distribution system in the City of Rochelle for a term of 50 years. The agreement gave the City the right to supervise the installation of pipes, etc. In addition, the gas company assumed the responsibility for repairing any damage caused by its work as well as the obligation to indemnify the City. The rights of this agreement were later assigned to Nicor Gas Company.

The existing agreement with Nicor Gas Company expired two years ago. A new thirty year agreement has been negotiated between representatives of the City and Nicor which will be effective as of the date of City Council approval. The ordinance includes the same provisions that have been in effect for several years, including the allowance of 28,722 therms, based on Rochelle’s decennial census count of 9574, to be used in buildings which are used solely for municipal purposes and not for purposes of generating revenue. In addition, Nicor will supply an additional 20% of therms for a total of 34,466 per a “most favored nation clause”. These therms will be used to heat eight municipal buildings including city hall, police department, street department, cemetery building, fire department, engineering/community development, welcome center and engineering annex.

Recommendation: Approve an Ordinance Authorizing Northern Illinois Gas Company Its Successors and Assigns, to Construct, Operate and Maintain a Gas Distributing System in and through the City of Rochelle

Supporting Documents:
pdf Ordinance Authorizing Northern Illinois Gas Company Its Successors and Assigns, to Construct, Operate and Maintain a Gas Distributing System in and through the City of Rochelle (159 KB)

Agenda Item #6 - Ordinance Amending Travel, Meal, and Lodging Expense Policy

Staff Contact: Chris Cardott

Summary:

In 2016, Governor Rauner signed the Local Government Travel Expense Control Act into law (Public Act 099-0604). This law requires all non-home rule units of local government, including municipalities, school districts, special districts and community college districts, to regulate travel expenses at the board level. Thus, every covered unit of local government must adopt a resolution or ordinance that, at a minimum, contains the following provisions:
1. Allowed reimbursable activities (e.g., conference attendance, travel for business meetings, etc.);
2. The maximum amount that the unit of local government will reimburse for travel, meal and lodging expenses, and
3. A standardized form for documenting travel, meal or lodging expenses, as well as “the nature of the official business” for which reimbursement is sought.

Travel, meal or lodging expenses may not be approved unless the minimum documentation requirements have been met.

The attached policy amends the policy adopted in December 2016 to include reimbursement for meals without overnight lodging.

 Recommendation: Authorize an Ordinance Regulating Travel, Meal and Lodging Expenses Consistent with Public Act 99-0604.

Supporting Documents:
pdf Travel, Meal and Lodging Policy (361 KB)
pdf Ordinance (13 KB)

Agenda Item #7 - IMLRMA 2017 Min/Max Additional Billing

Staff Contact: Nancy Bingham

Summary: The City has received an Additional Billing from IMLRMA, our provider of property/casualty/worker’s compensation coverage, for the City’s 2011 claims year.
There is one (1) large worker’s compensation claim (death) that is still open, with a death benefit to widow for 25 yrs.
As was authorized by City Council, the City continued its participation in the IMLRMA Minimum/Maximum insurance “pool” until Dec. 31, 2013. At the time of renewal authorization, we acknowledged that participation in the “pool” at a lower contribution amount came with the risk of additional monies coming due if the claims paid exceeded 85% up to 130% of the loss fund. In this case, the maximum cost potential to the City is $159,795. The amount due at this time, per the additional billing, is $59,785.04. The amount paid to date is $76,773.99 and with a potential remainder of $23,236.00.

Recommendation: Approve the IMLRMA 2017 Min/Max Additional Billing

Supporting Documents:
pdf Exhibit A – IMLRMA Min/Max Letter (61 KB)
pdf Exhibit B – IMLRMA 2017 Min/Max Additional Billing (34 KB)
pdf Exhibit C – IMLRMA Min/Max Status Report (55 KB)
pdf Exhibit D – IMLRMA Claims Experience Report (57 KB)

Agenda Item #8 - Construction Bid for the Steward Road Transmission Line Rebuild

Staff Contact: Jason Bird

Summary:

The Steward Road Transmission Line project is the re-build of approximately 3 miles of 138KV transmission from Hayes Road South. This project is to replace the line that was originally constructed in the late 1960s and to increase the ampacity of the line per the request from PJM. PJM has requested the line be increased from the existing 226 ACSR to at least 556 ACSR conductors. RMU has decided to increase the size of the conductor to 1113 ACSR to follow suit with Com Ed’s recommended conductor size. This project will be constructed of steel transmission poles with increased span lengths. This will help increase the life expectancy of the line and also reduce the number of poles on the project. Four bids were opened on August 23, 2017 with a low bid of $1,311,567.00 to re-build while energized per the recommendation of our consultant BHMG.

Recommendation: Award Bid for the Steward Road Transmission Line Rebuild to The L.E. Meyers Company for $1,311,567.00.

Supporting Documents:
pdf Letter of Recommendation from BHMG (287 KB)
pdf Bid Document (25 KB)

Discussion Item #1 - USEPA Brownfields Cleanup Grant Application

Staff Contact: Michelle Pease

Summary:

As a part of the USEPA Brownfields Community Wide Assessment Grant, LaGrou Properties located at 150 E. Avenue E, Rochelle, IL (old Caron International) were a part of a Phase I and Phase II assessment which identified certain recognized environmental conditions. Remediation of the environmental conditions is necessary for the redevelopment of the property. Fehr Graham has prepared a grant proposal with a reduced fee of $3,500. The reduced fee reflects the hands-on assistance from the Community Development Director in writing the grant.

LaGrou has agreed to sell the property for $1.00 to the City of Rochelle. Being the property owner, the City of Rochelle will then be eligible to apply for a USEPA Brownfields Cleanup Grant. Grantees must be the property owner to apply for the grant. If the City of Rochelle is not able to secure a USEPA Brownfields Cleanup Grant, the property will revert back to LaGrou.

If the USEPA Brownfields Cleanup Grant is secured, there is a 20% match required of the City of Rochelle. The grant request will be $600,000, making the City’s maximum portion $120,000. In-kind contribution match is also acceptable.

Supporting Documents: 

pdf Application for USEPA Brownfields Cleanup Grant (2.26 MB)
pdf F (444 KB) pdf ehr Graham Proposal (134 KB)

Discussion Item #2 - Discretionary Spending Under $20,000

The Rochelle City Council will hold a special workshop on Thursday August 31 at 6:30pm to hear a presentation on the Downtown Re-Branding Project with the Brand Leadership Team and City Staff.

This meeting is open to the public.

I. CALL TO ORDER:

• Pledge to the Flag
• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

IV. REPORTS AND COMMUNICATIONS:
• Mayor
• Council Members
• Employee Introduction –   pdf Sarah Brooks (90 KB)
• Employee Introduction –   pdf Dwayne Rangel (60 KB)

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:
1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) Approve Minutes of City Council Meeting –   pdf July 24, 2017 (162 KB)
b) Approve Minutes of Special City Council Meeting –   pdf July 31, 2017 (27 KB)
c) Accept and Place on File Minutes of Utility Advisory Board -   pdf January 18, 2017 (196 KB) ,   pdf March 15, 2017 (201 KB)  and   pdf May 17, 2017 (187 KB)
d) Accept and Place on File Minutes of Railroad Advisory Board –   pdf 1/22/15 (229 KB) ,   pdf 7/24/14 (97 KB) ,   pdf 4/27/17 (278 KB)
e) Approve Bills –   pdf 8/8/17 (280 KB)
f) Approve Exceptions –   pdf 07/19/17-08/07/17 (77 KB)
g) Approve Payroll –   pdf 7/17/17-7/30/17 (51 KB)
h) Approve Mayor Olson Expense Report –   pdf 07/20/17 – 07/22/17 (53 KB)
i) Approve Kiwanis Club and Golden K Request to Hold the Annual Peanut Day– pdf September 9, 2017 (18 KB)
j) Authorize the use of City Streets for the Rochelle Middle School Color Run –   pdf September 23, 2017 (121 KB)
k) Establish Annual Trick-or-Treat Schedule October 31, 2017 from 5:00pm-8:00pm
2) Resolution Establishing Security Light Rates Effective 01/01/18
3) Ordinance Approving Temporary Construction and Permanent Utility Easement Agreement with Flagg Rochelle Park District – Well 11
4) Engineering Agreement Willett Hofmann - Design of Well House at Well 10
5) Ordinance Approving Simplified Municipal Telecommunications Tax Rate Change
6) Authorize Purchase of Police Vehicles
VII. DISCUSSION ITEMS:
VIII. EXECUTIVE SESSION
IX. ADJOURNMENT

Agenda Item #2 - Resolution Establishing Utility Services Price Schedule for Certain Electric Rates

Staff Contact: Jason Bird

Summary:

Staff has reviewed the rates for rental (security lighting) and comparisons have been made with other utilities in Illinois, both investor owned and municipals. RMU rates were found to be some of the lowest. These findings were presented to the UAB. The entire UAB recommended the rate changes and policy changes found in the resolution document. A formula rate was used to figure the energy cost. The formula rate is used by other utilities such as Com Ed, Ameren and Mid America. This formula rate is a standard in the industry. Once the energy cost is done, and additional infrastructure needed such as poles and wires, industry standards are to double the cost for that extra infrastructure.

There are currently 365 customers who have a rental (security lighting). The new rate would go into place January 1st, 2018. After January 1st, 2018, RMU will only maintain the rental lights (security lights) for current customers. No additional rental lights will be installed by RMU.

Recommendation: Approve the Resolution to Change Rate 180 Security Lighting and Policy.

Supporting Documents:
pdf Resolution (78 KB)
pdf Rate (72 KB)
pdf Security Lighting Spreadsheet (452 KB)

Agenda Item #3 -  Purchase Insulators for the Steward Transmission Line

Staff Contact: Jason Bird

Summary:

Due to long lead times, it is best for RMU to order some materials directly rather than through the selected contractor. The Bid for the contracting work is going out soon but after receiving the lead times of the insulators staff felt the insulators would better ordered directly by RMU.

We received four quotes and based on recommendation of BHMG the only insulator that meets the specification would be Hubbell insulator.

Recommendation: Approve the purchase of the Hubbell Insulators from Anixter, at the price of $53,669.94.

Supporting Documents:
pdf Documentation from BHMG with their professional opinion (162 KB)

Agenda Item #4 - Permanent and Temporary Construction Easement Agreement with the Flagg Rochelle Community Park District

Staff Contact: Adam Lanning

Summary:

Well 11, located on Flagg road is a main supply well that has been taken out of service due to radium exceedances. With this occurrence, the City of Rochelle entered into a compliance commitment agreement with the Illinois EPA which requires the City to construct a radium removal plant for that well.

In order to construct the radium removal plant we will need to cross the Park District bike path to run utilities and a permanent access road. Since we will be starting construction late summer, the park district may have to delay work that was scheduled this year on that section of the path. We agreed that if we do delay that section and they are forced to rebid next year, we will cover any additional costs for that section.

Recommendation: Approve the easement agreements with Flagg Rochelle Community Park District for a cost of $10.00, with the potential to cover added costs of delaying the bike path work.

Supporting Documents:
pdf Easement Agreement (1.03 MB)
pdf Ordinance (83 KB)

Agenda Item #5 - Approval for an Engineering Agreement with Willett Hofmann & Associates Inc (WHA) for the Design of Well House at Well 10

Staff Contact: Adam Lanning

Summary:

Well 10, located on Southview Drive is a main supply well that is in need of major rehabilitation.

The existing well building is beyond repair along with all of the equipment and needs to be replaced. This agreement will allow WHA to design a new building with the option of adding filtration equipment in the future if changes in water quality were to occur. Once the construction is complete the existing building will be torn down. The engineering estimate for the new building and equipment is $850,000 and would be funded with local cash reserves next year. The design work will not get started until the end of this calendar year and money will be budgeted for this design at that time.

Recommendation: Approve the engineering agreement with Willett Hofmann and Associates Inc for the Design of Well House at Well 10

Supporting Documents:
pdf Engineering Agreement (281 KB)

Agenda Item #6 - Simplified Municipal Telecommunications Tax

Staff Contact: Chris Cardott

Summary: The City Council passed Ordinance 07-3604 on September 10, 2007 to increase the Simplified Municipal Telecommunication Tax from 3% to 5%. The 5% which added to the State of Illinois 7% equals the current rate of 12% included on Rochelle customer phone bills. The maximum total rate is 13%. An additional 1% to the City will increase revenue in the General Fund approximately $53,000 per year or $4,400 per month. A certificated copy of the approved ordinance increasing the rate must be filed with the Illinois Department of Revenue by September 20, 2017. The rate change would be effective January 1, 2018.

Recommendation: Approve the ordinance to increase the Simplified Municipal Telecommunications Tax from 5% to 6%.

Supporting Documents: 

pdf Telecommunication Rate Comparisons (96 KB)

pdf Ordinance (7 KB)

 Agenda Item #7 - Squad Car Purchases 

Staff Contact:  Eric Higby

Summary: Units 4, 5, and 15 have high mileage and need to be replaced.  Unit 4 (2011) has 121,000 miles, Unit 5 (2011) has 123,000 miles, and unit 15 (2010) has 106,000 miles.  One 2018 Dodge Ram Crew 1500 Police Service 4X4 pickup and two 2018 Dodge Chargers are slated to be purchased.  The Ram will be utilized for transportation of the portable scales that are used for truck enforcement.  The state bid price (including options) for the Charger is $24,279.  The state bid price (including options) for the Ram pickup is $31,093.  Prescott Ford has entered a bid for the Ram with the same options that came in at $32,068, which is $975.00 more expensive than the state bid.  Prescott also entered a bid for the Charger, which came in at $26,108, which is $1,829 (per car) more expensive.  If the purchase is made from the state bid holder Thomas Dodge, the cars will have to be picked up in Highland, Indiana as they do not deliver.  

*-Amount does not include the installation of lighting, computers, radios, consoles or the exterior wrap and decals.

Recommendation: Factoring in the scheduling and manpower expense required to pick up 2-3 vehicles, it is recommended that the purchase be made locally.            

Supporting Documents:  

pdf Bid Document (96 KB)

I. CALL TO ORDER:

• Pledge to the Flag
• Prayer

II. ROLL CALL:

III. PUBLIC COMMENTARY:

IV. BUSINESS ITEMS:
1) Appointment of City Manager
2) Approval of City Manager Employment Agreement

V. ADJOURNMENT

I. CALL TO ORDER:

• Pledge to the Flag
• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

IV. REPORTS AND COMMUNICATIONS:
• Mayor
• Council Members
• Employee Introductions – pdf Rose Hueramo
• pdf Financials – June 2017

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:
1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) Approve Minutes of City Council Meeting – pdf July 10, 2017
b) Approve Bills – pdf 07/18/17
c) Approve Exceptions – pdf 07/04/17-07/07/17
d) Approve Payroll – pdf 06/19/17-07/02/17
e) Approve Wine on Lincoln Committee Request – pdf September 23, 2017
2) Audit Reports Fiscal Year 2016/2017
3) Ordinance Approving an Agreement to Purchase Real Estate – 413 West 4th Avenue
4) Ordinance Authorizing the Waiver of Various Fees Associated with the Construction of a Single Family Home for Habitat for Humanity – 924 8th Avenue
5) Ordinances Approving Utility Easements – Steward Road Transmission Line
6) Ordinance Rescinding Ordinance No. 17-4699 Authorizing Purchase of Real Estate for Rail Trans Loading Yard
7) Amendment to Joint State/Local EDP Agreement – South Main Street Improvements Phase I

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION
1) The (appointment, employment, compensation, discipline, performance and/or dismissal) of specific employee(s). Section (c)(1)
2) Purchase or lease of real property for City’s use. Section (c) (5)
3) Pending or imminent litigation. Section (c) (11)
IX. ADJOURNMENT

Agenda Item #2 -  Audit Fiscal Year May 1 – December 31, 2016

Staff Contact: Chris Cardott

Summary:

Sikich, LLP planned and performed the audit in order to obtain reasonable assurance about whether the financial statements are free of material misstatements. This included performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The audit also included evaluating the appropriateness of accounting policies used, significant estimates made by management and evaluating the overall presentation of the financial statements.

The auditor’s opinion, as noted on page 2 of the Comprehensive Annual Financial Report, indicates that the financial statements “present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Rochelle, Illinois, as of December 31, 2016, and the respective changes in financial position and, where applicable cash flows thereof for the year ended in conformity with accounting principles generally accepted in the United States of America.”

Anthony Cervini, Partner of Government Services for Sikich, will attend the meeting to provide an overview of the City’s Financial Statement and respond to questions from the Mayor and Council members.

Recommendation: Accept and place on file the Audit Reports for FY December 31, 2016 as prepared and presented by Sikich, LLP.

Supporting Documents:
pdf City of Rochelle Comprehensive Annual Financial Report – December 31, 2016
pdf Rochelle Municipal Utilities Annual Financial Report – December 31, 2016
pdf Single Audit – December 31, 2016
pdf Management Letter – December 31, 2016

Agenda Item #3 - Ordinance Approving an Option to Purchase Real Estate – 413 West 4th Avenue

Staff Contact: Michelle Pease

Summary:

The City of Rochelle is the current property owner of the real estate located at 413 W. 4th Avenue, Rochelle, Illinois which is located in the Downtown and Southern Gateway TIF District. Walter Wayne Development, LLC is interested in redeveloping the property and is requesting an option to purchase. This option to purchase will allow Walter Wayne Development, LLC to assess the viability of the redevelopment and perform its due diligence activities.

Walter Wayne Development, LLC shall pay the City $5,000 in earnest money within five days of the approval and execution of the agreement by the City of Rochelle’s City Council, unless the agreement has otherwise terminated according to its terms.

If the closing occurs according to the terms of the agreement, the entire amount of the earnest money and any interest shall be applied to the purchase price. Respectively, if Walter Wayne Development, LLC elects to terminate the agreement based upon the inspection period and conditions precedent set forth in Section 10 of the agreement, then the earnest money and all interest thereon shall be returned to Walter Wayne Development, LLC.

Walter Wayne Development, LLC is solely responsible for all costs incurred in conducting the due diligence activities. The City of Rochelle shall pay for any normal and customary charges related to the sale of like-kind property in Ogle County, Illinois, and Walter Wayne Development, LLC shall pay for any normal and customary purchaser's charges for the purchase of like-kind property in Ogle County, Illinois. Walter Wayne, LLC shall pay the closing fee charged by the Title Insurer to close the transaction, as well as the cost of any title endorsements required by Walter Wayne Development, LLC or Walter Wayne Development, LLC’s lender.

Closing shall occur on or before December 29, 2017. The purchase price for the property to be paid on the closing date shall be $67,000.

Recommendation: Approve the Ordinance authorizing the City Manager to execute the Option to Purchase Real Estate for the property located at 413 W. 4th Avenue, Rochelle, Illinois.

Supporting Documents:
pdf Ordinance approving an option to purchase real estate located at 413 W. 4th Avenue, Rochelle, Illinois
pdf Signed option to purchase real estate agreement from Walter Wayne, LLC

 Agenda Item #4 - Ordinance Waiving Demo Fees, Building Permit Fees, Electrical Connection Fees, Sewer Connection Fees, and Water Meter Fees

Staff Contact: Kip Countryman

Summary:

Habitat for Humanity is a non for profit organization that provides volunteers for labor and fundraising for materials to provide a single family residence for qualified applicants. They have been constructing homes in Ogle County since 2002 and have plans to demolish a home at 924 8th Ave. and reconstruct a 1280 square foot home. They are asking that City Council waive the building permit fees of 265.00, sewer connection fee of 700.00, electrical connection of 25.00, and the price of a water meter 382.00.

Recommendation: Approve an Ordinance waiving demo fees, building permit fees, electrical connection fees, sewer connection fees, and water meter fees. .

Supporting Documents:
pdf Ordinance
pdf Letter from Habitat for Humanity

 Agenda Item #5 - Ordinances and Agreements for Steward Road Transmission Line Easements

Staff Contact: Jason Bird

Summary:

This is the first group Agreements for the easements for the Steward Road Transmission Line as discussed with the Council previously. 

It became known that the easements were needed with the Steward Road Reconductoring project. Through negotiation and design, the RMU has been able to reduce the cost of the purchase of the easements. The RMU is also obtaining easements during the process that can assist with the further extension of its transmission lines to serve the needs of future consumers.

Recommendation: Approve Ordinance and Agreements for the Steward Road Transmission Line Easements

Supporting Documents:

Agenda Item #6 - Rescind Ordinance to Purchase 2.21 Acres of Real Estate for a Public Purpose

Staff Contact: Jason Anderson

Summary:

On July 10th the City Council approved the purchase of 2.21 acres @ $65K/acre for the purpose of building a City of Rochelle Railroad Transloading yard. During the period of open discussion between Council members and Jason Anderson, the Council expressed concerns over the price of the strip of land and whether this would set precedence for future City land purchases. Although the land owner presented justification for the asking price, the questions raised by the Council caused the staff to re-evaluate the design of the transloading yard and determine if it was possible to build the yard without the proposed 2.21 acre parcel. A renewed effort was put forth to find an alternative design that would prove to be more economical and not set precedence in pricing land that would negatively influence future development opportunities.

Our effort to find an alternative to the original design has resulted in a lower cost/acre to build the transloading yard and increased efficiency of the operation. Through lengthening the transload tracks and reducing the north/south dimensions of the proposed transload yard (which the 2.21 acres would have provided), the operation will require less switching movements and increase the number of railcars that can be loaded per day. Furthermore, the additional land required to extend the transloading yard is under an option agreement that GREDCO purchased on behalf of the City last December. This option will allow the City to save more than 50% on the purchase price per acre for the development of the rail transloading yard.

Recommendation: Staff recommends rescinding Ordinance #17-4699 which authorized the purchase of 2.21 (+/-) acres of Real Estate for a Public Purpose.

Supporting Documents:
pdf Ordinance

Agenda Item #7 - Main Street Improvements (Phase 1) State/Local Joint EDP/TARP Agreement Amendment #1 with MFT Sec#12-00112-00-FP

Staff Contact:  Sam Tesreau, City Engineer

Summary:  

A state/local joint Economic Development Program (EDP)/TARP Agreement was approved by the City Council and executed by Mayor Olson in June 2013 for the above referenced project. After final review, the Illinois Department of Transportation (IDOT) executed the agreement in August 2013. This project will include pavement rehabilitation, reconstruction, widening, updated traffic control devices and other associated improvements, along South Main Street, from Steam Plant Road to the Steward Road intersection and along Steward for approximately 1700’. The partial EDP funding was made possible by the expansion and job creation/retention for the Graphic Arts Bindery facility located immediately south of Steam Plant Road. Since that time Engineering design plans have been completed by Fehr Graham and Associates and nearing the final approval by the IDOT. While the plans were nearing completion the project cost estimates were updated in late 2016 to better reflect anticipated construction expenses in 2018 as required by IDOT. The original IDOT EDP funding was awarded, as per the current agreement, over five years ago in an amount not to exceed $1.19M. 

With the revised cost estimates at $3.7M for the project the City Engineer’s office submitted a request for additional funding. The request was considered based on a number of unexpected items, updated estimated project costs and other IDOT requirements not known at the time of the original application. The request was for a maximum of 50% of eligible project expenses which do not include items such as ROW acquisition expenses, roadway lighting and other utility relocations. While uncommon for EDP funding to be increased from the initial application amount the City was successful in its request and received approval for an additional funding amount of $747,000 in April 2017. As part of the approval conditions a new state/local joint EDP/TARP agreement amendment #1 (enclosure 1) has been amended and reviewed by IDOT Local Roads office and the City Engineer.  Lastly, the date for bid letting and contract award has been extended to March 2020 as per the new state/local joint EDP/TARP agreement amendment #1 (enclosure 1). The construction portion of the project is anticipated to begin 2018 and the associated construction and engineering expenses will be programmed into the FY 2018 and 2019 budgets as needed.

Recommendation: Please consider approval of the new amended state/local EDP/TARP agreement (enclosure 1) for the S. Main Street Phase 1 project with section #12-00112-00-FP and give authorization to the Mayor to execute said agreement on behalf of the City.

Supporting Documents:  

pdf Enclosure (1)