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

• pdf Financials – November 2016 (848 KB)

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf December 12, 2016 (209 KB)

b) Accept and Place on File Minutes of Police and Fire Commissioners – pdf September 27, 2016 (16 KB)

c) Accept and Place on File Minutes of Golf Course Advisory Committee – pdf November 21, 2016 (23 KB)

d) Approve Bills – pdf 12/2/16-12/8/16, (109 KB) pdf 12/9/16-12/15/16 (83 KB)

e) Approve Payroll – pdf 11/21/16-12/4/16 (50 KB)

2) Budget Fiscal Year 2017 (Public Hearing and Adoption)

3) Ordinance Amending Section 6-46 of the Municipal Code to Create One Restaurant/Recreation Liquor License and Delete One Tavern

Liquor License – The Rack Bar and Grill

4) Amendment 4 to the Agreement with Willett Hofmann & Associates for Well #12 Water System Improvements

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Budget Fiscal Year 2017 – Public Hearing and Adoption

References:

  pdf 2017 Proposed Budget (2.49 MB)

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

Recommended Action:

1. Conduct Public Hearing.
2. Consider Fiscal Year 2017 Budget.

History and Fact:

The City Council held Committee of the Whole meetings on October 24th and November 7th to discuss the upcoming 2017 budget. During the meetings, management staff provided information on expenditure projections for May 1–December 31, 2016 and requests for new hires, capital purchases and projects proposed for 2017. City Manager Plyman and the City Council discussed the budget further at the November 28th meeting. At that time, council requested that modifications be proposed in order to decrease the transfers to the general fund. City Manager Plyman presented a list of recommended modifications to decrease the transfers at the December 12th council meeting.

The City Clerk published a Public Hearing notice, as required by State law, to consider adoption of the budget at the December 27th City Council Meeting. Final action on the 2017 Calendar Budget is required on or before December 29, 2016 in order for it to be filed with the County.

Discussion:

The final Proposed 2017 General Fund revenues are budgeted at $10,449,830. This represents an increase of approximately 2% compared to the approved 2016-17 budget. Budgeted expenses total $10,437,814 which is approximately 3% higher than the 2016-17 budget and results in a budget surplus of $12,017. 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 $83,355,750 and budgeted expenses totaling $84,527,300.

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 2017 Budget.

Agenda Item #3 Ordinance Amending Section 6-46 of the Municipal Code to Create One Restaurant/Recreation Liquor License and Delete One Tavern Liquor License - The Rack Bar and Grill

References:

  pdf Memo from City Clerk Bruce McKinney (20 KB)

  pdf Ordinance Amending Section 6-46 of the Municipal Code to Create One Restaurant/Recreation Liquor License and Delete One Tavern Liquor License (26 KB)

Recommended Action:

Consider an Ordinance Amending Section 6-46 of the Municipal Code to Create One Restaurant/Recreation Liquor License and Delete One Tavern Liquor License

History and Fact:

The City has received a request from A.S. Gran Corporation for a restaurant/recreation liquor license for the Rack Bar and Grill located at 406 Cherry Avenue. The business currently holds a tavern liquor license which it would surrender following the approval of the restaurant/recreation liquor license.

Discussion:

The Liquor Commissioner, Mayor Olson, has reviewed the request and has no objection to the creation of an additional restaurant/recreation liquor license in place of the tavern liquor license as requested. These changes will result in a total of eight restaurant/recreation liquor licenses and six tavern licenses in the City of Rochelle.

Recommendation:

Approve an Ordinance Amending Section 6-46 of the Municipal Code to Create One Restaurant/Recreation Liquor License and Delete One Tavern Liquor License

Agenda Item #4 Amendment 4 to the Agreement with Willett Hofmann & Associates – Well #12 Water System Improvements

References:

  pdf Memo from Water/Water Reclamation Superintendent Adam Lanning (128 KB)

  pdf Amendment 4 (61 KB)

Recommended Action:

Consider Amendment 4 to the Agreement with Willett Hofmann & Associates for Well #12 Water System Improvements

History and Fact:

The new well 12 project experienced several set-backs and delays due to various factors such as deciding to install a variable frequency drive rather than a soft start on the submersible motor. Some of these delays and changes in the original design caused a significant increase in the time Willet Hoffman employees spent reviewing specifications and construction management.

Discussion:

Per Willett Hofmann, the total number of hours expended over the expected amount was 380 at a total cost of $37,000

Water/Water Reclamation Superintendent Adam Lanning recommends approving an amendment to the engineering agreement in the amount of $37,000 to cover extra costs incurred by Willet Hoffman & Associate’s during the well 12 project construction phase. This will increase the contract amount from $446,000 to $483,000.

Recommendation:

Authorize the City Manager to Sign Amendment 4 to the Agreement between the City of Rochelle and Willett Hofmann & Associates for the Design and Construction of Water Well No. 12 and the Well Building.

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) Approve Minutes of City Council Meeting – pdf November 28, 2016 (150 KB)

b) Accept and Place on File Minutes of Planning and Zoning Commission – pdf November 7, 2016 (140 KB)

c) Accept and Place on File Minutes of Trucking Advisory Committee – pdf November 8, 2016 (307 KB)

d) Approve Bills – pdf 111816-112316 (97 KB) , pdf 112416-120116 (74 KB)

e) Approve Payroll – pdf 110716-112016 (54 KB)

f) Authorize St. Paddy’s Day Parade and Irish Hooley – pdf March 11, 2017 (43 KB)

2) Loan Guaranty for Rail Right of Way

3) Ordinance Approving Development Agreement – 620 South 7th Street

4) Ordinance Approving Special Use Permit for Shelter Care – 803 West Lincoln Avenue

5) Blue Cross Blue Shield 2017 Health Insurance Renewal

6) Ordinance Regulating Travel, Meal and Lodging Expenses Consistent with Public Act 99-0604

7) Resolution Updating Rider 1 – Power Cost Adjustment for Electric Effective December 12, 2016

8) Extension of Contract with Big D Electric - 5KV Conversion Project

9) Purchase of Engine Parts for Unit #10 – RMU Electric Generation

VII. DISCUSSION ITEMS:

1) Budget Fiscal Year 2017

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Loan Guaranty for Rail Right of Way

References:

  pdf Memo from Economic Development Director Jason Anderson (123 KB)

  pdf Guaranty (246 KB)

Recommended Action:

Consider Loan Guaranty for Rail Right of Way

History and Fact:

The City recently received a $3.42M EDA Infrastructure grant to expand the City of Rochelle Railroad. The project is estimated to cost $7M and the City Council passed a resolution on August 22nd to bond up to $4.2M to complete the rail expansion. The Economic Development office is currently pursuing matching infrastructure grants through State and Federal agencies. It could take up to 10-12 months to determine the size of the match and the terms under which the funds could be awarded.

Discussion:

The rail expansion project will require the purchase of additional rail right of way. It is critical that this right of way be acquired as soon as possible so that the engineering and construction can move forward. Therefore, the Greater Rochelle Economic Development Corporation (GREDCO) along with the City’s Economic Development office have negotiated the terms to option and purchase land for the rail right of way. Having GREDCO acquire the rights to purchase the land for the City now will give the City up to a year to determine available matching grants and the terms of the bond necessary to fund any remaining balance.

GREDCO is willing to purchase the right of way on behalf of the City, with the stipulation that the City guarantee GREDCO’s loan to purchase the right of way and cover the incidental costs associated with the purchase of the land including loan interest, surveying costs, legal expenses and engineering.

Recommendation:

Authorize the City Manager to sign the loan Guaranty which will allow the Greater Rochelle Economic Development Corporation to borrow up to $850,000 to purchase rail right of way for the rail expansion east and south of the current Rochelle Railroad terminus

Agenda Item #3 Ordinance Approving Development Agreement – 620 South 7th Street

References:

  pdf Ordinance Approving Development Agreement (68 KB)

  pdf Development Agreement (4.56 MB)

Recommended Action:

Consider Ordinance Approving Development Agreement - 620 South 7th Street

History and Fact:

The City continues to spur development by offering a variety of incentive options including: real estate tax abatements, sales tax rebates and waiving and/or reducing specific City fees. Providing incentives, when appropriate, is important when attracting and maintaining both industrial and commercial/retail facilities in our community.

Discussion:

Prescott Properties-Rochelle, LLC owns the property located at 620 South 7th Street. The property currently includes a commercial building, which houses an automobile dealership and repair shop, and a parking lot. The owner and operator, Prescott Brothers Ford, Inc., plan to renovate and remodel the existing building with completion no later than May 1, 2017. Once renovated, the facility will employ a minimum of 19 full-time equivalent employees for a minimum of 5 years.

Based on the development of the property as outlined in the agreement 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 new improvements over five years as follows: 90%, 75%, 60%, 45% and 30%.
• Sales Tax Rebate – Rebate of ½ of the 1% portion of the Operator’s Retail Occupation Tax attributable to sales and services rendered at the new showroom facility for a period of three years. This rebate will be extended for an additional two years if local contractors provide 50% of the total contracted cost of the development.
• 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 Development Agreement for 620 South 7th Street

Agenda Item #4 Ordinance Approving Special Use Permit for Shelter Care – 803 W Lincoln Avenue

References:

  pdf Memo from Building Inspector Kip Countryman (25 KB)

  pdf Ordinance Approving a Special Use Permit for Shelter Care – 803 W Lincoln Avenue (47 KB)

Recommended Action:

Consider Special Use Permit for Shelter Care – 803 W Lincoln Avenue

History and Fact:

Rochelle Rescue Mission has petitioned the City for a Special Use Permit to allow shelter care at 803 W Lincoln Avenue in order to operate a homeless shelter in the R-3 Zoning District. The petitioner feels that a shelter for the homeless is needed in this community and the location would be compatible with the food pantry located to the south of the property. The property is currently vacant but has been used in the past for office space, housing businesses such as Manpower, Partners for employment and H&R Block. This property is surrounded by a mixed use of commercial business, residential housing, manufacturing, and an elementary school.

According to Section 110-291 of the District Use Classification list under shelter care, the use of shelter care requires a conditional use.

Discussion:

The Planning and Zoning Commission held a public hearing to review the petition at its meeting on December 5th. Following some discussion, the Planning and Zoning Commission returned to open session with the following findings:
• The proposed use is allowed with a conditional use permit.
• The proposed use is not detrimental or dangerous to public health.
• The proposed use will not impair property value in the neighborhood because a shelter care facility would not prohibit future development in the area.
• The proposed use will not impede the normal development of the surrounding properties because a shelter care facility would not prohibit future development in the area.
• The use will not impair light and air to adjacent property, congest public streets, increase the risk of fire, substantially diminish property values in the neighborhood, or endanger the public health.
Based on these findings, the Planning and Zoning Commission, by a vote of 4-1, recommended that the City Council approve the issuance of a special use permit for shelter care at 803 W Lincoln Avenue with the following conditions:
• A mission statement and by-laws will be provided to City Council for review and a presentation of the plan be provided to the public.
• The applicant submits plans that ensure the proper supervision will be in place at the homeless shelter and that such a plan is consistent with what is reasonable and customary for an emergency homeless shelter of a similar size.
• The applicant ensures that egress requirements are met, including emergency battery backup lighting and battery backup exit lighting.
• The applicant ensures that the space meets accessibility requirements by providing bathrooms that meet the Illinois State Plumbing Code and the Americans with Disabilities Act, loading and unloading requirements, and stalls provided for wheel chairs.
• The applicant ensures electrical service and any other requirements set forth in NFPA 70 are met in regards to any kitchen, bathroom, sleeping areas, lighting, and outlets.
• The applicant ensures that mechanical requirements for kitchens, bathrooms, sleeping areas, heating, cooling, and ventilation are met.
• The applicant submits the necessary building plans for review, obtain a building permit, business license, and obtain a certificate of occupancy before occupying the property.
• The applicant must comply with applicable federal and state laws.

Recommendation:

Approve a Special Use Permit for Shelter Care at 803 W Lincoln Avenue

Agenda Item #5 Blue Cross Blue Shield 2017 Health Insurance Renewal

Recommended Action:

Consider renewal of the Blue Cross/Blue Shield health insurance policy for 2017.

History and Fact:

The City currently offers health insurance benefits to all full-time employees. Blue Cross/Blue Shield of Illinois is our current carrier. The policy expires at the end of the year.

Discussion:

Insurance agent Ray Rice of Williams-Manny has notified the City that Blue Cross/Blue Shield will renew the current policy beginning January 1, 2017 at an increased cost of 1.4 percent.

The City offers full-time employees the option of selecting either a single or family plan. Employees pay 15 percent of the total premium and the City pays the remainder. During 2016, the single plan premium cost $736.35 per month and family plan premium cost $1,883.37. After the 1.4 percent increase effective January 1, 2017, the single plan will increase to $746.84 and the family plan will increase to $1,915.27.

The total estimated cost of the Blue Cross/Blue Shield insurance will be $2,014,432.56 during 2017. The expense is budgeted within each department across all city funds. The proposed 2017 budget anticipates an increase in health insurance cost.

At the request of council, the insurance renewal was carried over from the November 28th meeting pending additional information and options. Human Resources Coordinator Nancy Bingham will provide information regarding options at the meeting and respond to questions from the Mayor and Council.

Recommendation:

Approve renewal of the Blue Cross/Blue Shield of Illinois health insurance plan for 2017.

Agenda Item #6 Ordinance Regulating Travel, Meal and Lodging Expenses Consistent with Public Act 99-0604

References:

  pdf Memo from Finance Director Chris Cardott (156 KB)

  pdf Public Act 0099-0604 (78 KB)

  pdf Ordinance Regulating Travel, Meal and Lodging Expenses Consistent with Public Act 99-0604 (4.27 MB)

Recommended Action:

Consider an Ordinance Regulating Travel, Meal and Lodging Expenses Consistent with Public Act 99-0604

History and Fact:

On July 22nd, 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.

Discussion:

This law is effective January 1, 2017 and includes a 60 day phase in period ending March 2, 2017. After March 2, 2017, expenses for employees or officers that exceed the maximum allowable expenses must be approved by a roll call vote of the Board at an open meeting, and all expenses of board members or corporate authorities must also be approved in this manner.

If a covered unit of local government fails to implement expense regulations by ordinance or resolution within 180 days of the effective date, no expenses can be approved until the unit of local government comes into compliance.

To implement the law, each unit of local government will need to define acceptable standards and procedures for reimbursement of expenses, as well as the maximum reimbursement amount for travel, meals, and lodging. The Revised Travel Expense Policy for the City of Rochelle meets the standards of the Public Act 099-0604.

Recommendation:

Authorize an Ordinance Regulating Travel, Meal and Lodging Expenses Consistent with Public Act 99-0604 Effective January 1, 2017.

Agenda Item #7 Resolution Updating Rider 1 – Power Cost Adjustment for Electric Effective December 12, 2016

References:

  pdf Memo from Customer Service Supervisor Barbara Bell (238 KB)

  pdf Resolution Updating Rider 1 (184 KB)

Recommended Action:

Consider Approving a Resolution Updating Rider 1 – Power Cost Adjustment for Electric Effective December 12, 2016

History and Fact:

On July 11th the City Council authorized a Cost of Service and Rate Design Study Proposal by Utility Financial Solutions, LLC (UFS) that included an executive summary, rate design for one year and a detailed report for management.

Discussion:

Mark Beauchamp, President of UFS, subsequently presented an overview of the Cost of Service and Rate Design Study to the Mayor and City Council at the November 14th council meeting. One of the recommendations presented at that time was to use the previous twelve months of power costs to calculate the monthly power cost adjustment (PCA). The PCA allows for changes in power supply and transmission costs to be recovered from customers without a rate adjustment. Changing to a twelve month rolling average, versus the current three month average, will minimize the impact on customers by smoothing the month to month fluctuations.

Recommendation:

Approve a Resolution Updating Rider 1 – Power Cost Adjustment for Electric Effective December 12, 2016

Agenda Item #8 Extension of Contract with Big D Electric – 5KV Conversion Project

References:

  pdf Memo from Electric Operations Superintendent Jason Bird (70 KB)

  pdf Big D Electric Hourly Rates Schedule March 1, 2016-February 29, 2017 (144 KB)

Recommended Action:

Consider extension of the contract with Big D Electric

History and Fact:

In June of 2014 the Mayor and Council approved a bid for the conduit and installation required for Phase I of the 5KV project which converts our 4160KV distribution circuit to a 13.8KV feeder in the northwest section of the community. On February 22nd of this year the City Council approved the hiring of Big D Electric to assist RMU crews on site with the 5KV conversion in an amount not to exceed of $165,000. The contract was subsequently extended by the City Council on April 11th in an amount not to exceed of $450,000.

Discussion:

Pending budget approval, the 2017 Electric Operations Capital Outlay Budget includes $600,000 for the 5KV system conversion. Electric Operation Superintendent Jason Bird recommends extending the contract with Big D Electric for time and equipment costs necessary to have contractors continue to assist RMU crews in an amount not to exceed $300,000.

Recommendation:

Approve extending the contract with Big D Electric, based on the hourly rates schedule provided, to assist RMU crews with the 5KV Conversion Project in an amount not to exceed $300,000.

Agenda Item #9 Purchase of Engine Parts for Unit #10 - RMU Electric Generation

References:

  pdf Memo from Superintendent of Electric Operations Jason Bird (57 KB)

  pdf Wheeler World Estimate (70 KB)

Recommended Action:

Consider the purchase of engine parts for unit #10 for electric generation

History and Fact:

The Public Power Industry has been rebuilding their base load units and upgrading the engine support groups for many years and it has proven over and over old is better, to rebuild existing than replacing with new, if the engineering and parts support is there for the engine product line. The base load units are more dependable once they are rebuilt and all support groups, engine controls, auxiliary system components, etc. have been upgraded.

Discussion:

Superintendent of Electric Operations Jason Bird recommends purchasing generator parts for unit #10, specifically cylinder heads and an exhaust manifold, from Wheeler World in the amount of $181,699.84. This amount includes approximately $28,000 in labor to assist RMU generation staff with the installation of parts.

There is $200,000 available in the 2016/17 Electric Fund Capital Outlay Budget to cover the cost of the parts and labor.

State statute and the Rochelle Municipal Code, Section 2-371, allow the City Council by a 2/3 vote to authorize the City Manager to enter into a contract without competitive bidding.

Recommendation:

Approve the purchase of generator parts for Unit #10 from Wheeler World in the amount of $181,699.84, including labor at a cost of approximately $28,000, and waive the competitive bid process for this purchase.

Discussion Item #1 Budget Fiscal Year 2017

The City Council met as a Committee of the Whole on October 24th and November 7th to discuss the upcoming 2017 budget. During the meetings management staff provided information on expenditure projections for May 1- December 31, 2016 and requests for new hires, capital purchases and projects for 2017. These meetings gave council the opportunity to interact directly with the staff for clarifications and questions.

City Manager Plyman and the City Council discussed the budget at the November 28th council meeting. At that time, council requested that further modifications be proposed in order to decrease the transfers to the general fund. City Manager Plyman will provide his recommendations at the meeting and respond to questions from the Mayor and Council.

City of Rochelle Council Chabmers 

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

o Appointment of John "Skip" Kenney to the Airport Advisory Board as a Voting Member for a term to expire July 1, 2019

o Appointment of Gary Dunn to the Airport Advisory Board as a (non-voting) Member at Large for a term to expire July 1, 2019

o Appointment of Doug Smith to the Airport Advisory Board as a (non-voting) Member at Large for a term to expire July 1, 2018

• Council Members

• pdf Financials – October 2016 (798 KB)

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf November 14, 2016 (120 KB)

b) Accept and Place on File Minutes of Trucking Advisory Committee – pdf December 16, 2014 (266 KB)

c) Approve Bills – pdf 110416-111016 (100 KB) , pdf 111116-111716 (95 KB)

d) Approve Payroll – pdf 102416-110616 (52 KB)

e) pdf Approve City of Rochelle Meeting Dates for 2017 (20 KB)

f) pdf Approve City of Rochelle Legal Holidays for 2017 (24 KB)

2) Ordinance Adopting 2016 Tax Levy

3) Ordinance Abating the Taxes Levied for 2016 - Taxable General Obligation Bonds

4) Ordinance Adopting the 2016 Comprehensive Plan for the City of Rochelle

5) Ordinances Adopting the International Building Code, the International Fire Code, the International Mechanical Code, the International Residential Code, the National Electrical Code, the International Existing Building Code, the International Fuel Gas Code and the International Property Maintenance Code

6) Blue Cross Blue Shield 2017 Health Insurance Renewal

7) Ordinance Amending Section 94-224 of the Municipal Code to Prohibit Parking - Brookside Drive

VII. DISCUSSION ITEMS:

1) Budget Fiscal Year 2017

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Ordinance Adopting 2016 Tax Levy

References:

  pdf Memo from Finance Manager Chris Cardott (20 KB)

  pdf  Real Estate Tax Rate Extension (16 KB)

  pdf Ordinance Levying Taxes for the City of Rochelle (34 KB)

Recommended Action:

Consider an Ordinance Levying Taxes for the City of Rochelle

History and Fact:

The State of Illinois requires the City annually 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 $224,558,825 and its property tax rate was $1.014090 per $100 of EAV, which allowed the City to collect $2,277,229 in property taxes. For the upcoming year, Ogle County has estimated the City’s EAV at $231,369,031.

Discussion:

Finance Manager Chris Cardott led a discussion on the 2016 Tax Levy at the November 14th City Council meeting. The proposed levy calculations would result in the City collecting $2,386,221 in property taxes, an increase of 4.99% over 2015. Based on the estimated EAV, the tax rate would decrease by .017258 per $100 EAV, compared to 2015, to a rate of 1.031348. The proposed 2016 levy includes funding the Police and Fire Pension Funds as recommended by the City’s actuarial studies.

Recommendation:

Approve an Ordinance Levying Property Taxes for the City of Rochelle for the Fiscal Year January 1, 2017 through December 31, 2017

Agenda Item #3 Ordinance Abating the Taxes Levied for 2016 – Taxable General Obligation Bonds

References:

  pdf Ordinance Abating the Taxes Levied for 2016 – Taxable General Obligation Bonds (200 KB)

Recommended Action:

Consider an Ordinance Abating the Taxes Levied for 2016 to Pay Debt Service on Taxable General Obligation Bonds

History and Fact:

In 2010 the Mayor and Council approved an ordinance providing for the issuance of bonds to finance offsite improvements related to the Lighthouse Pointe Subdivision and Route 38 corridor. The City subsequently issued Taxable General Obligation Bonds, Series 2010 (Recovery Zone Economic Development Bonds) in the amount of $2,940,000. In April of 2013, due to federal budget cuts which affected the subsidy available through the Recovery Zone Bond program, the council approved the issuance of General Obligation Refunding Bonds in an amount not to exceed $3,125,000, which included interest and bond issuance costs.

Discussion:

The annual debt service related to these bonds is being paid through TIF revenues, instead of property taxes, when sufficient funds are available. 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 2016 to Pay Debt Service on Taxable General Obligation Bonds

Agenda Item #4 City of Rochelle Comprehensive Plan

References:

  pdf Memo from Community Development Director Michelle Pease (122 KB)

  pdf Comprehensive Plan (5.34 MB)

Recommended Action:

Consider an Ordinance Adopting the 2016 Comprehensive Plan

History and Fact:

The City of Rochelle adopted its first Comprehensive Plan in 1973, with the most recent update in 2009. The Comprehensive Plan is intended to provide a framework for future development and revitalization based on existing conditions, trends, goals and objectives. In order to be an effective tool, the Plan should be updated every 5-7 years. In keeping with this guideline, the City hired Teska and Associates to assist with a revision to the 2009 plan.

Discussion:

Since contracting with Teska, City staff and the Planning and Zoning Commission have worked diligently with our consultant to modify and update the plan based on specific projects and new initiatives. Several significant updates have been included in the revised Plan including the implementation of the Quiet Zone, new FEMA floodplain maps, the rebranding initiative, Downtown & Southern Gateway TIF, rail expansion, airport runway expansion and the installation of the 4th water tower. New development has also been added to the plan including Mighty Vine, Bright Farms, Nippon Sharyo, Chicagoland Skydiving, Box Office Distillery and several others. The 2016 Comprehensive Plan reflects the progress made thus far, future planning strategies and land use, plan initiatives and action items to move forward.

The Comprehensive Plan was discussed in detail at the October 3rd Planning and Zoning Commission meeting. In addition, a Public Hearing was held at the November 7th Planning and Zoning meeting and the commission subsequently voted to recommend approval of the Plan by a vote of 6-0.

Recommendation:

Approve an Ordinance Adopting the 2016 Comprehensive Plan

Agenda Item #5 

Ordinances Adopting the International Building Code, the International Fire Code, the International Mechanical Code, the International Residential Code, the International Existing Building Code, the International Fuel Gas Code, the International Property Maintenance Code and the 2014 edition of the National Electrical Code

References:

  pdf Memo from Building Inspector Kip Countryman (20 KB)

  pdf Northwest Illinois Regional Building Code (1.40 MB)

  pdf Ordinance Adopting the 2015 Edition of the International Building Code (113 KB)

  pdf Ordinance Adopting the 2015 Edition of the International Fire Code (161 KB)

  pdf Ordinance Adopting the 2015 Edition of the International Mechanical Code (113 KB)

  pdf Ordinance Adopting the 2015 Edition of the International Residential Code (227 KB)

  pdf Ordinance Adopting the 2014 Edition of the National Electrical Code (127 KB)

  pdf Ordinance Adopting the 2015 Edition of the International Existing Building Code (101 KB)

  pdf Ordinance Adopting the 2015 Edition of the International Fuel Gas Code (109 KB)

  pdf Ordinance Adopting the 2015 Edition of the International Property Maintenance Code (99 KB)

Recommended Action:

Consider Ordinances

History and Fact:

The City Code provides in Chapters 22 and 42 for the adoption by reference of several national and state building and construction related codes including the National Electric Code, International Property Maintenance Code, International Fire Code, etc. Several of these codes were last updated in 2004 when the Mayor and Council approved the adoption of the 2002/2003 editions of several International Code Council codes and the National Electric Code.

Discussion:

Beginning in 2015, the City of Rochelle, along with 30 other surrounding communities including the Counties of Ogle, Lee, Jo Daviess, Winnebago, DeKalb and Boone in conjunction with the City of Rockford created 5 committees to review and implement a Regional Building Code for the surrounding Counties in Northern Illinois. As part of the process, Code Officials from the surrounding communities reviewed past adopted Building Codes and amendments with a goal of creating a Unified Regional Building Code with Building Codes and Amendments that are consistent throughout Northwest Illinois.

By the end of 2015, the Northwest Illinois Regional Building Code was finalized and has since been adopted by multiple communities which include; the City of Rockford, Winnebago County, Loves Park, Ashton, Hillcrest, Oregon, Freeport, Galena, Rock Falls, Dixon and Belvidere. Several other communities will follow. The ordinances recommended for adoption tonight include the various codes, with amendments which conform to the Northwest Regional Building Code.

Efforts have been made to notify contractors who commonly work in Rochelle of the changes. Once approved these ordinances will become effective immediately.

Recommendation:

Approve Ordinances Adopting the International Building Code, the International Fire Code, the International Mechanical Code, the International Residential Code, International Property Maintenance Code, the International Existing Building Code, the International Fuel Gas Code and the 2014 National Electrical Code with amendments.

Agenda Item #6 Blue Cross Blue Shield 2017 Health Insurance Renewal

Recommended Action:

Consider renewal of the Blue Cross/Blue Shield health insurance policy for 2017.

History and Fact:

The City currently offers health insurance benefits to all full-time employees. Blue Cross/Blue Shield of Illinois is our current carrier. The policy expires at the end of the year.

Discussion:

Insurance agent Ray Rice of Williams-Manny has notified the City that Blue Cross/Blue Shield will renew the current policy beginning January 1, 2017 at an increased cost of 1.5 percent.

The City offers full-time employees the option of selecting either a single or family plan. Employees pay 15 percent of the total premium and the City pays the remainder. During 2016, the single plan premium cost $736.35 per month and family plan premium cost $1,883.37. After the 1.5 percent increase effective January 1, 2017, the single plan will increase to $747.40 and the family plan will increase to $1,916.70.

The total estimated cost of the Blue Cross/Blue Shield insurance will be $1,992,937.20 during 2017. The expense is budgeted within each department across all city funds. The proposed 2017 budget anticipates an increase in health insurance cost.

Recommendation:

Approve renewal of the Blue Cross/Blue Shield of Illinois health insurance plan for 2017.

Agenda Item #7 Ordinance Amending Section 94-224 of the Municipal Code to Prohibit Parking – Brookside Drive

References:

  pdf Memo from City Engineer Sam Tesreau (95 KB)

  pdf Ordinance Amending Section 94-224 of the Municipal Code (58 KB)

Recommended Action:

Consider an Ordinance Amending Section 94-224 of the Municipal Code to prohibit parking along the southerly 100 feet along the east side of Brookside Drive

History and Fact:

In July of this year several Brookside Drive residents attended a city council meeting to voice their concerns about parking issues on their street. These concerns included the ability of emergency vehicles to navigate down the street, especially off of Illinois Route 38. A petition signed by many of the Brookside Drive residents was presented at that time.

Discussion:

As a result of the residents’ concerns, staff members evaluated the street width and the geometrics of the Fire Department’s largest emergency vehicle. The City of Rochelle Municipal Code allows for parking on one side of the street in a single family residential district when the street is 31 feet in width. Brookside Drive is approximately 31 feet from back of curb to curb. Therefore, City Engineer Sam Tesreau recommended prohibiting parking on the entire west side and the southerly 100 feet of the east side of Brookside Drive.

City Council reviewed staff’s recommendation at the October 11th and 24th council meetings. After much discussion Council determined that parking would remain on both sides of the street with the exception of the southerly 100 feet, as measured from the northerly right-of-way line of Illinois Route 38, along the east side of Brookside Drive.

Recommendation:

Approve an Ordinance Amending Section 94-224 of the Municipal Code to prohibit parking along the southerly 100 feet along the east side of Brookside Drive

Discussion Item #1 Budget Fiscal Year 2017

The City Council met as a Committee of the Whole on October 24th and November 7th to discuss the upcoming 2017 budget. During the meetings, management staff provided information on expenditure projections for May 1- December 31, 2016 and requests for new hires, capital purchases and projects for 2017. These meetings gave council the opportunity to interact directly with the staff for clarifications and questions.

City Manager Plyman has reviewed the draft budget prepared by staff. He will provide council with a detailed list of modifications necessary for a balanced budget for 2017.

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

• Employee Introduction – pdf Chris Cox (164 KB)

• pdf Recognition of Employee Years of Service (40 KB)

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf October 24, 2016 (102 KB)

b) Approve Minutes of the City Council Committee of the Whole Meeting – pdf October 24, 2016 (736 KB)

c) Accept and Place on File Airport Advisory Board Minutes – pdf August 15, 2016 (209 KB)

d) Accept and Place on File Planning and Zoning Commission Minutes – pdf October 3, 2016 (137 KB)

e) Accept and Place on File Golf Course Advisory Board Minutes – pdf September 26, 2016 (83 KB)

f) Approve Bills – pdf 101416-102016 (109 KB) , pdf 102116-102716 (88 KB) , pdf 102816-110316 (89 KB)

g) Approve Payroll – pdf 101016-102316 (56 KB)

h) Accept and Place on File Municipal Compliance Report – pdf Fire Pension Fund (122 KB)

i) Accept and Place on File Municipal Compliance Report – pdf Police Pension Fund (56 KB)

j) Approve Downtown Rochelle Association’s Request for the pdf Christmas Walk December 2, 2016 (398 KB)

k) Authorize Lighted Christmas Parade – pdf December 2, 2016 (230 KB)

l) Authorize Use of Rochelle Municipal Airport for Rochelle Area Chamber of Commerce Summer Country Jam Concert – pdf August 5, 2017 (96 KB)

m) pdf Resolution of Support to Benefit the Economy & the Citizens of Illinois (80% Highways/20% Transit & Highways Portion at 60% IDOT/40% Local Roads) (83 KB)

2) Ordinance Authorizing Loan Agreement between the City and IEPA – Well 11 Radium Removal Plant

3) Resolutions Establishing City Water and Water Reclamation Rates Effective 2017

4) Risk Insurance Renewal

VII. DISCUSSION ITEMS:

1) Tax Levy 2016-17

2) RMU Electric Cost of Service Study

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Ordinance Authorizing Loan Agreement between the City and IEPA – Well 11 Radium Removal Plant

References:

  pdf Memo from Water/Water Reclamation Superintendent Adam Lanning (50 KB)

  pdf Ordinance Authorizing Loan Agreement between the City and IEPA (128 KB)

Recommended Action:

Consider an Ordinance Authorizing Loan Agreement between the City of Rochelle and the Illinois Environmental Protection Agency

History and Fact:

In April the Illinois Environmental Protection Agency (IEPA) notified Rochelle Municipal Utilities (RMU) that the level of radium sampled at Well 11, near the high school, exceeded the maximum contaminant level. As a result, RMU staff took the well offline. To stay within the state statutes, the City subsequently entered into a compliance commitment agreement with the IEPA and adopted a timeline of events to return the well to compliance.

In August the council approved an engineering agreement with Willett Hofmann & Associates for services related to a radium removal plant at Well 11 which included design, construction services, preparation of a water rate report and the preparation of IEPA loan application documents.

Discussion:

The IEPA has loan funds available for qualifying water system improvements through the Public Water Supply Loan Program, typically at a rate of 1.5-2%. In order to fund the radium removal plant, a project plan was submitted to the IEPA and approved. The proposed ordinance authorizes the City Manager to proceed with an application to borrow up to $4,500,000 from the Water Supply Loan Program to finance the majority of the project plan. Section 5 of the proposed ordinance states that “repayment of the loan…pursuant to this Ordinance is to be solely from the revenue derived from the revenues of the System” and therefore does not constitute a general obligation of the City.

Construction on the radium removal plant is expected to begin in the Spring of 2017 with completion in February of 2018.

Recommendation:

Approve an Ordinance Authorizing Loan Agreement between the City of Rochelle and the Illinois Environmental Protection Agency. Once approved, RMU will publish the approved ordinance, within 10 days, giving electors the right to file a petition opposing the provisions of the ordinance.

Agenda Item #3 Resolutions Establishing Water and Water Reclamation Rates Effective 2017

References:

pdf Memo from Water/Water Reclamation Superintendent Adam Lanning (131 KB)

  pdf Water Rate Analysis Report (1.77 MB)

  pdf Water Reclamation Rate Analysis Report (606 KB)

  pdf Resolution Establishing Water Reclamation Rates Effective January 1, 2017 (117 KB)

  pdf Resolution Establishing Water Rates Effective July 1, 2017 (163 KB)

Recommended Action:

Consider Approving Resolutions Establishing Water and Water Reclamation Rates Effective 2017

History and Fact:

The current water and water reclamation rates were established in 2014 following a rate analysis by Willett Hofmann & Associates. Due to the recent requirement to construct a radium removal plant and the need to invest in replacing underground utility lines on an accelerated schedule, Rochelle Municipal Utilities once again hired the firm to perform a rate analysis of the two divisions.

Discussion:

The analysis included evaluating the current revenues and expenses, developing a budget based on future needs and developing a debt service schedule for the construction of a radium reduction water treatment plant. The rate modifications recommended as a result of the analysis will provide the divisions with the revenue necessary to be self-sufficient.

On October 19th, Matt Hansen of Willett Hofmann presented the findings of the study to the Utility Advisory Board and again on October 24th to the Council. The findings for both divisions result in a proposed residential rate increase of 10.7% and would result in an average increase of $7.14 per month on a typical residential user. The average combined water and sewer bill in this area is $70.55 per month and the proposed increase would put RMU at $81.62 per month. Water/Water Reclamation Superintendent Adam Lanning recommends that council approve a resolution authorizing a water reclamation rate increase effective January 1, 2017 and a resolution authorizing a water rate increase effetive July 1, 2017.

Recommendation:

Approve a Resolution Establishing Water Reclamation Rates Effective January 1, 2017

Approve a Resolution Establishing Water Rates Effective July 1, 2017

Agenda Item #4 Risk Insurance Renewal

References:

  pdf Memo from Human Resources Coordinator Nancy Bingham (26 KB)

  pdf Standard and Minimum-Maximum Renewal Options (170 KB)

  pdf 2017 IMLRMA Renewal Comparison (21 KB)

Recommended Action:

Consider Renewal of Risk Insurance

History and Fact:

The City of Rochelle’s risk insurance plan year expires annually on December 31st. Since 1997, the City has participated in the Illinois Municipal League Risk Management Association (IMLRMA) property and liability insurance program. This insurance covers worker’s compensation, auto liability, general liability, portable equipment and physical damage to auto and property.

Discussion:

IMLRMA submitted two renewal options, the Standard renewal option and the Minimum-Maximum Program option. The Min-Max Program includes an incentive for members to control and reduce losses which may result in an overall savings. However, if losses and claim costs are greater than anticipated, penalties and contributions of approximately 36% extra could occur.

Staff solicited risk insurance proposals from other agencies in recent years and chose to remain with IMLRMA for 2017. Staff believes that it is in the City’s best interest to stay with the IMLRMA Standard Option. If the premium is paid before November 23rd, the City can take advantage of the early pay discount of 1% for a total premium of $668,988.54. This premium is an increase of 3.36% over the 2016 premium.

Recommendation:

Approve participation in the IMLRMA Standard Option at a cost of $668,988.54.

Discussion Item #1 Tax Levy 2016-17

The Mayor and City Council are required to adopt a Tax Levy Ordinance annually and file it with the County Clerks on or before the last Tuesday in December. The Ordinance Levying Taxes for the City of Rochelle 2016-17 will be included as a business item on the November 28th City Council Meeting. Finance Director Chris Cardott will provide information on the various components and discuss options related to the levy. In addition, Rochelle Police and Fire Pension Fund representatives will attend the meeting to discuss their respective recommendations and respond to questions from the Mayor and Council.

References:

  pdf Rochelle Police Pension Fund Recommendation – Rochelle Police Pension Board (897 KB)

  pdf Rochelle Police Pension Fund Recommendation – Lauterbach & Amen, LLP (368 KB)

  pdf Rochelle Fire Pension Fund Recommendation – Rochelle Fire Pension Board (987 KB)

  pdf Rochelle Fire Pension Fund Recommendation - Lauterbach & Amen, LLP (356 KB)

Discussion Item #2 RMU Cost of Service Study

On July 11th the City Council authorized a Cost of Service and Rate Design Study Proposal with Utility Financial Solutions, LLC which includes the following deliverables: an executive summary for management and the City Council, rate design for one year, detailed report for management, and a presentation to management and the City Council.

Mark Beauchamp, President of UFS, will attend the meeting to provide an overview of the Cost of Service and Rate Design Study and respond to questions from the Mayor and City Council.

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

• pdf Financial Statements September 2016 (818 KB)

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf October 11, 2016 (61 KB)

b) Approve Bills – pdf 093016-100616 (104 KB) , pdf 100716-101316 (100 KB)

c) Approve Payroll – pdf 092616-100916 (52 KB)

2) Ordinance Amending Section 94-224 of the Municipal Code to Prohibit Parking - Brookside Drive

3) Ordinance Approving Roadway Dedication Agreement – Cherry Avenue and First Street

4) Well 8 Invoices

5) Purchase of Utility Truck – RMU Electric Division

VII. DISCUSSION ITEMS:

1) RMU Electric Cost of Service Study

2) RMU Water/Water Reclamation Rate Studies

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Ordinance Amending Section 94-224 of the Municipal Code to Prohibit Parking – Brookside Drive

References:

  pdf Memo from City Engineer Sam Tesreau (52 KB)

  pdf Ordinance Amending Section 94-224 of the Municipal Code (80 KB)

Recommended Action:

Consider Ordinance Amending Section 94-224 of the Municipal Code to prohibit parking along the west side of Brookside Drive between Illinois Route 38 and the northerly terminus of Brookside Drive and partially on the east side of Brookside Drive

History and Fact:

In July of this year several Brookside Drive residents attended a city council meeting to voice their concerns about parking issues on their street. These concerns included the ability of emergency vehicles to navigate down the street, especially off of Illinois Route 38. A petition signed by many of the Brookside Drive residents was also presented.

Discussion:

As a result of the residents’ concerns, engineering staff members evaluated the street width and the geometrics of the Fire Department’s largest emergency vehicle. The City of Rochelle Municipal Code allows for parking on one side of the street in a single family residential district when the street is 31 feet in width. Brookside Drive is approximately 31 feet from back of curb to curb. Therefore, City Engineer Sam Tesreau believes it is reasonable to limit parking to one side of the street on Brookside Drive. Since the mailboxes and fire hydrants are located on the west side of the street and the east side contains fewer driveways, the recommendation is to prohibit parking on the entire west side of Brookside Drive. In addition, the ordinance prohibits parking on the east side for 100 feet north of the Illinois Route 38 right-of-way line to provide better access for emergency vehicles.

This agenda item was discussed at the October 11th council meeting and tabled pending further action.

Recommendation:

Approve an Ordinance Amending Section 94-224 of the Municipal Code to prohibit parking along the west side of Brookside Drive between Illinois Route 38 and the northerly terminus of Brookside Drive and partially on the east side of Brookside Drive

Agenda Item #3 Ordinance Approving Roadway Dedication Agreement – Cherry Avenue and First Street

References:

  pdf Memo from City Engineer Sam Tesreau (51 KB)

  pdf Roadway Dedication Agreement (3.61 MB)

  pdf Ordinance Approving Roadway Dedication Agreement (60 KB)

Recommended Action:

Consider Ordinance Approving Roadway Dedication Agreement – Cherry Avenue and First Street

History and Fact:

In 2004 Patricia Burch approached the City regarding vacating a portion of Cherry Avenue and Van Buren Street. At that time, Mrs. Burch proposed a planned development that would provide rail service to adjacent properties as well as transloading facilities. On October 25, 2004 the Mayor and Council approved an ordinance vacating the east terminus of both streets as requested.

Discussion:

Over a year ago Patricia Burch approached the City asking to rededicate the road right of way since the original development proposal never came to fruition. As a result, City staff members have negotiated a Roadway Dedication Agreement with Mrs. Burch. The agreement includes certain conditions for the acceptance of the vacated roadway including the satisfactory construction of roadway improvements, an easement to assist in snow removal, and drainage easements to be used if it becomes necessary to relocate a storm sewer which presently runs beneath a building.

Recommendation:

Approve an Ordinance Approving Roadway Dedication Agreement – Cherry Avenue and First Street

Agenda Item #4 Well 8 Invoices

References:

  pdf Memo from Superintendent of Water/Water Reclamation Adam Lanning (51 KB)

Recommended Action:

Consider invoices related to Well 8 lighting damage

History and Fact:

In September, lighting struck Well 8 damaging several pieces of electric equipment. Since we are not currently using Well 11, we needed Well 8 back in service immediately. RMU staff contacted multiple vendors and determined that Municipal Well and Pump could replace the damaged equipment the soonest and had the well back in service in less than two days.

Discussion:

The total cost of replacing the damaged equipment at Well 8 was $39,190.08. This includes upgrading from a soft start to a variable frequency drive (VFD) since the soft start was on backorder. The VFD likely increased the cost by $5000-6000 but is far more efficient. Staff is currently working with our insurance company and the majority of this claim should be covered.

All of the work has been completed but some invoices are still outstanding. Superintendent Adam Lanning recommends approving payment of invoices in the amount of $39,190.08 to repair lightning damage to Well 8.

Recommendation:

Approve payment of multiple invoices for a total amount of $39,190.08 to repair lighting damage to Well 8.

Agenda Item #5 Purchase of Utility Truck – RMU Electric Division

References:

  pdf Memo from Electric Superintendent Jason Bird (48 KB)

  pdf Quote from Prescott Brothers (86 KB)

Recommended Action:

Consider the purchase of a utility truck for the Electric Division.

History and Fact:

The FY 2016-17 capital budget includes $25,000 for the purchase of a replacement pickup truck for the electric division. After evaluating the equipment, staff found that the current pickups are in good working condition. However, there is a need for a medium size utility truck that can be used for underground projects. These projects currently tie up a bucket truck or digger truck that is then unavailable to other crews.

Discussion:

The Illinois Department of Central Management Services Joint Purchasing Program has a 2017 Ford, 4x4 utility truck available for $41,065. Prescott Brothers has provided RMU with a quote which matches the State bid. RMU Electric Superintendent Jason Bird recommends the acceptance of the quote for a 2017 Ford, utility truck from Prescott Brothers in the amount of $41,065.

Recommendation:

Approve the purchase of a 2017 4x4 utility truck from Prescott Brothers Ford in the amount of $41,065.

Discussion Item #1 

On July 11th the City Council authorized a Cost of Service and Rate Design Study Proposal with Utility Financial Solutions, LLC which includes the following deliverables: an executive summary for management and the City Council, rate design for one year, detailed report for management, and a presentation to management and the City Council.

Mark Beauchamp, President of UFS, will attend the meeting to provide an overview of the Cost of Service and Rate Design Study and respond to questions from the Mayor and City Council.

Discussion Item #2

The last rate reviews for the Water and Water Reclamation Divisions were completed in 2014 by Willett Hofmann & Associates. Earlier this year, Water/Water Reclamation Superintendent Adam Lanning hired the firm once again to perform rate studies.

Matt Hansen, Vice-President of Willett Hofmann & Associates, will attend the meeting to provide an overview of the rate studies and respond to questions from the Mayor and City Council.

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) Approve Minutes of City Council Meeting – pdf September 26, 2016 (145 KB)

b) Accept and Place on File Minutes of Golf Course Advisory Committee Meeting – pdf August 29, 2016 (23 KB)

c) Accept and Place on File Minutes of Police and Fire Commission Meeting – pdf June 13 2016 (88 KB)

d) Accept and Place on File Minutes of Planning & Zoning Commission Meeting – pdf August 1, 2016 (142 KB)

e) Approve Bills – pdf 091616-092216 (105 KB) , pdf 092316-092916 (88 KB)

f) Approve Payroll – pdf 091216-092516 (55 KB)

2) Ordinance Amending Section 94-224 of the Municipal Code to Prohibit Parking - Brookside Drive

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Ordinance Amending Section 94-224 of the Municipal Code to Prohibit Parking – Brookside Drive

References:

  pdf Memo from City Engineer Sam Tesreau (52 KB)

  pdf Ordinance Amending Section 94-224 of the Municipal Code (59 KB)

Recommended Action:

Consider Ordinance Amending Section 94-224 of the Municipal Code to prohibit parking along the west side of Brookside Drive between Illinois Route 38 and the northerly terminus of Brookside Drive and partially on the east side of Brookside Drive

History and Fact:

In July of this year several Brookside Drive residents attended a city council meeting to voice their concerns about parking issues on their street. These concerns included the ability of emergency vehicles to navigate down the street, especially off of Illinois Route 38. A petition signed by many of the Brookside Drive residents was also presented.

Discussion:

As a result of the residents’ concerns, engineering staff members evaluated the street width and the geometrics of the Fire Department’s largest emergency vehicle. The City of Rochelle Municipal Code allows for parking on one side of the street in a single family residential district when the street is 31 feet in width. Brookside Drive is approximately 31 feet from back of curb to curb. Therefore, City Engineer Sam Tesreau believes it is reasonable to limit parking to one side of the street on Brookside Drive. Since the mailboxes and fire hydrants are located on the west side of the street and the east side contains fewer driveways, the recommendation is to prohibit parking on the entire west side of Brookside Drive. In addition, the ordinance prohibits parking on the east side for 100 feet north of the Illinois Route 38 right-of-way line to provide better access for emergency vehicles.

Recommendation:

Approve an Ordinance Amending Section 94-224 of the Municipal Code to prohibit parking along the west side of Brookside Drive between Illinois Route 38 and the northerly terminus of Brookside Drive and partially on the east side of Brookside Drive

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:

• National Fire Prevention Week – pdf October 9-15, 2016 (51 KB)

• Public Power Week – pdf October 2-8, 2016 (54 KB)

IV. REPORTS AND COMMUNICATIONS:

• Mayor

o Appointment of Kurt Wolter to the Planning & Zoning Commission as a (Non-voting) Member at Large for a term to expire July 1, 2020

• Council Members

• pdf Financial Statements August 2016 (815 KB)

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf September 12, 2016 (56 KB)

b) Approve Bills – pdf 090216-090816 (85 KB) , pdf 090916-091516 (90 KB)

c) Approve Payroll – pdf 082916-091116 (52 KB)

d) Authorize the Rochelle Lions Club Annual Candy Sale as Requested – pdf October 7, 2016 (95 KB)

2) Audit Reports Fiscal Year 2015/2016

3) Ordinance Changing the Fiscal Year for the City of Rochelle to a Calendar Year Basis

4) Electric Unrestricted Cash Reserve Policy

        5) Ordinance Approving Development Agreement – 1300 North 7th Street

VII. DISCUSSION ITEMS:

1) Hello Rochelle Mobile App

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Audit Report Fiscal Year 2015/2016

References:

City of Rochelle Comprehensive Annual Financial Report -   pdf April 30, 2016 (2.31 MB)

Rochelle Municipal Utilities Annual Financial Report - pdf April 30, 2016 (943 KB)

Tax Increment Financing Fund Financial Report – pdf April 30, 2016 (416 KB)

Management Letter – pdf April 30, 2016 (298 KB)

Recommended Action:

Consider Audit Reports

History and Fact:

On January 25, 2016 the Mayor and City Council approved a contract with Sikich, LLP to perform an audit of the City’s financial operations for fiscal years ending April 30, 2016, 2017 and 2018. Although this is the first year under the new contract, this is the seventh year that Sikich has completed our annual audit.

Discussion:

Sikich 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 April 30, 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.”

Fred Lantz, Partner-in-Charge 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 2015/2016 as prepared and presented by Sikich, LLP.

Agenda Item #3 Ordinance Changing the Fiscal Year for the City of Rochelle to a Calendar Year Basis

References:

  pdf Ordinance Changing the Fiscal Year for the City of Rochelle to a Calendar Year Basis (204 KB)

Recommended Action:

Consider an Ordinance Changing the Fiscal Year for the City of Rochelle to a Calendar Year Basis

History and Fact:

Chapter 65 of the Illinois Municipal Code establishes the default fiscal year for municipalities with less than populations of 500,000 but authorizes the City Council to establish and change the fiscal year for the City. The City Council previously established a fiscal year beginning on May 1 and concluding on April 30 of the following year.

Discussion:

City Manager Plyman recommends changing the fiscal year to coincide with the calendar year effective January 1, 2017. There are several benefits to making this change including:
• More closely aligning the City’s budget and tax levy.
• Health and liability insurance premiums are done on a calendar year so budgeting for these items would be more accurate.
• Rate changes effective January 1st would be easier for many of our local industries to anticipate in their budgets.
• Many of our Capital Improvement Projects are currently budgeted across multiple fiscal years due to a construction season that stretches from March-November.
• Getting estimates in the fall for early spring construction projects may result in better pricing.

Per Sikich, the City’s auditors, an ordinance to change the fiscal year must be approved by the City Council and filed with the Secretary of State and State Comptroller’s Office.

Recommendation:

Approve an Ordinance Changing the Fiscal Year for the City of Rochelle to a Calendar Year Basis Effective January 1, 2017.

Agenda Item #4 Electric Unrestricted Cash Reserve Policy

References:

  pdf Memo from Finance Director Chris Cardott (29 KB)

  pdf Electric Unrestricted Cash Reserve Policy (128 KB)

Recommended Action:

Consider Approving Electric Unrestricted Cash Reserve Policy

History and Fact:

The purpose of the Electric Fund Balance and Unrestricted Cash Reserve Policy is to maintain an adequate amount of reserves to protect Rochelle Municipal Utilities Electric ability to provide reliable electric service during periods of power supply cost uncertainties, reductions in sales due to weather or a sluggish economy, volatile energy prices and rising capital improvement costs while maintaining stable rates. It is important for RMU Electric to maintain the financial flexibility to smooth rate increases.

Properly designed reserve policies send a positive signal to ratepayers, investors, and regulatory and credit rating agencies that the City is committed to maintaining the long- run fiscal strength of RMU Electric. Strong and transparent financial policies, including maintaining prudent reserves for emergencies, rate stability, working capital and capital improvements, are consistent with best practices in the utility industry.

Discussion:

The policy states that “RMU Electric will have sufficient unrestricted, undesignated reserves to maintain or improve its credit ratings; ensure that operating and maintenance costs will be paid in a timely manner, to pay debt service obligations, and to invest in needed capital improvements and equipment replacement on a timely basis. In addition, RMU Electric will maintain sufficient reserves to minimize rate increases due to market volatility, weather impacts on demands, emergencies (such as natural disasters), and regulatory changes.” The policy includes a Target (Minimum) Level equal to 90 days of operating and maintenance expenses and a Maximum Level equal to 120 days of operating and maintenance expenses.

The Utility Advisory Board, at its meeting on September 21st, voted to recommend that the City Council approve the policy.

Recommendation:

Approve Electric Unrestricted Cash Reserve Policy

Agenda Item #5 Ordinance Approving Development Agreement – 1300 North 7th Street

References:

pdf Ordinance Approving Development Agreement (488 KB)

Recommended Action:

Consider Ordinance Approving Development Agreement for 1300 North 7th Street

History and Fact:

The City continues to spur development by offering a variety of incentive options including: real estate tax abatements, sales tax rebates and waiving and/or reducing specific City fees. Providing incentives, when appropriate, is important when attracting and maintaining both industrial and commercial/retail facilities in our community.

Discussion:

DKS Real Estate, LLC owns the property located at 1300 North 7th Street. The property currently includes a commercial building, which houses an automobile repair shop, and a parking lot. DKS intends to relocate a Chrysler/Jeep Dealership to the property which will be operated by Sawicki Motor Company, Inc. The owner and operator plan to remodel the existing building to include an automobile showroom and repair facilities with completion no later than December 31, 2017. Once renovated, the facility will employ a minimum of eight full-time employees.

Based on the development of the property as outlined in the agreement 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 new improvements over five years as follows: 90%, 75%, 60%, 45% and 30%.
• Sales Tax Rebate – Rebate of ½ of the 1% portion of the Operator’s Retail Occupation Tax attributable to sales and services rendered at the new showroom/repair facility for a period of three years. This rebate will be extended for an      additional two years if local contractors provide 50% of the total contracted cost of the development.
• 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 Development Agreement for 1300 North 7th Street

Discussion Item #1 Hello Rochelle Mobile App

The City of Rochelle is excited to announce the launch of our new mobile app, Hello, Rochelle!

Hello, Rochelle is a simple way for residents to keep up with happenings around town, contact City staff with ease, view posts on the City’s Facebook page and link to the City, RMU and Tourism websites.

Marketing and PR Manager Jenny Thompson will attend the meeting to provide an overview of the City’s new mobile app.

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:

• Constitution Week – pdf September 17- 23, 2016 (54 KB)

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 – pdf August 22, 2016 (165 KB)

b) Accept and Place on File Minutes of Golf Course Advisory Committee – pdf July 25, 2016 (40 KB)

c) Approve Bills – pdf 081916-082516 (94 KB) , pdf 082616-090116 (88 KB)

d) Approve Payroll – pdf 080116-081416 (52 KB) , pdf 081516-082816 (56 KB)

e) Authorize Rochelle Township High School Homecoming Parade – pdf September 29, 2016 (407 KB)

2) Track Use Agreement between Ryder Integrated Logistics, LLC and the City of Rochelle – City Industrial Railroad

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Track Use Agreement between Ryder Integrated Logistics, LLC and the City of Rochelle – City Industrial Railroad

References:

  pdf Memo from Economic Development Director Jason Anderson (36 KB)

pdf Track Use Agreement (799 KB)

Recommended Action:

Consider a Track Use Agreement between Ryder Integrated Logistics, LLC and the City of Rochelle

History and Fact:

The City and Ryder had an operating agreement for many years which governed the switching and maintenance of the City Industrial Railroad (CIR). During that time Ryder subcontracted the switching operations to the Burlington Junction Railway (BJRY). In early 2015 the City’s agreement with Ryder expired and the council approved a five year agreement with the BJRY for the switching and maintenance services.

Since the time in which Ryder handled the CIR's switching needs, volumes of railcars have increased from 3,200 railcars per year (of which 2,800 cars were bound for the Ryder facility) to more than 10,000 railcars per year. The increase is due to non-Ryder traffic. Expansion of the CIR has not been able to keep up with the increasing demand for space to switch and store the increasing volume of railcars.

Discussion:

A temporary solution has been to continue to utilize the Ryder yard for storing and switching non-Ryder railcars bound for other industries. The City and the Ryder Company have come to an agreement that would allow the CIR to continue to operate within the Ryder yard for the purposes of switching non-Ryder railcars. The CIR will compensate Ryder by designating $90 per Ryder railcar from the switch absorption fees which are paid to the CIR from the Class I- Railroads. The term of the proposed three year agreement is April 16, 2015 through April 15, 2018. Compensation for the rail cars that have been switched through the CIR to Ryder from April 16, 2015 to the present has been calculated and will be paid upon approval of this contact. Going forward the CIR will compensate Ryder on a monthly basis. The long term solution for additional space is being addressed through the expansion of the CIR to the south.

Economic Development Director Jason Anderson recommends that the City Council approve the Track Use Agreement.

Recommendation:

Approve a Track Use Agreement between Ryder Integrated Logistics, LLC and the City of Rochelle

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

• pdf Financial Statements July 2016 (805 KB)

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf August 8, 2016 (139 KB)

b) Accept and Place on File Minutes of Airport Advisory Board – pdf April 25 (325 KB) , pdf June 9 (199 KB) and pdf June 20, 2016 (202 KB)

c) Approve Bills – pdf 072916-080416 (88 KB) , pdf 080516-081116 (86 KB) , pdf 081216-081816 (111 KB)

2) Community Development Block Grant – Sanitary Sewer Lining Project Meadowbrook Subdivision (Public Hearing and Action)

3) Engineering Agreement - Radium Removal Plant at Well #11

4) Resolution in Support of an Application to the Economic Development Administration Public Works and Economic Adjustment Assistance Program for Project Co-op

5) Minimum/Maximum Additional Billing for Contract Year 2011– Illinois Municipal League Risk Management Association

VII. DISCUSSION ITEMS:

1) Financial Review of the Rochelle Municipal Utilities Electric Department

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Community Development Block Grant – Sanitary Sewer Lining Project Meadowbrook Subdivision (Public Hearing and Action)

References:

  pdf Project Description (89 KB)

  pdf Map of Project Area (4.19 MB)

  pdf Resolution of Support for a Community Development Block Grant (21 KB)

Recommended Action:

Conduct the Public Hearing

History and Fact:

Each year the State of Illinois receives an appropriation of funds from the U.S. Department of Housing and Urban Development’s Small Cities Community Development Block Grant (CDBG) program. Those funds are distributed through a grant program administered by the Illinois Department of Commerce and Economic Opportunity (DCEO), the Community Development Block Grant program (CDBG). Among other activities, CDBG funds may be used by local government for acquisition, construction, reconstruction, rehabilitation or installation of public facilities and improvements.

Discussion:

The City of Rochelle plans to submit a CDBG Public Infrastructure grant application to DCEO that will request $284,652 in grant funds to be used to line approximately 4,000 lineal feet of sanitary sewer on Springdale Drive, Sunnymeade Drive, Short Court, and Fairview Drive in the Meadowbrook subdivision. This area is low-lying, and its sewers experience increased flows during wet weather events.

RMU has televised these sanitary sewer segments and found structural issues with the sewer and deficiencies where the sections of clay sewer are joined, both of which allow ground water to infiltrate the system. When appropriate, RMU monitors the wastewater level in the manholes in this area and bypass pumps the wastewater into the storm sewer system to prevent backups into residential basements. Over the past twenty years, Rochelle has had to bypass pump numerous times in this area.

To reduce the amount of water entering the sewer system, the City proposes to install a liner system inside the existing sanitary sewer lines in this area. The cost of lining the sewer included in this request is estimated to be $354,710 (including engineering costs). Funds will also be requested for grant administration services bringing the total project cost to $376,710, $284,652 of which is proposed to come from DCEO’s CDBG program and $92,058 will be provided by RMU’s Water Reclamation Capital Outlay account. The CDBG funds will pay construction and grant administration costs, and the City’s funding will pay construction, engineering, and some grant administration costs.

A door-to-door income survey done in the target area showed that 85% of its residents are low-to-moderate income so 85% of the total project cost, or $320,203, will benefit low-to-moderate income persons. Of the $284,652 in CDBG funds to be requested, $243,320 will benefit low-to-moderate income persons.

Recommendation:

Conduct the Required Public Hearing
Approve Resolution of Support for a Community Development Block Grant and Commitment of Local Funds for a Sanitary Sewer Lining Project in Meadowbrook Subdivision

Agenda Item #3 Engineering Agreement - Radium Removal Plant at Well #11

References:

  pdf Memo from Superintendent of Water/Water Reclamation Adam Lanning (120 KB)

  pdf Engineering Agreement (362 KB)

Recommended Action:

Consider an Engineering Agreement with Willett Hofmann & Associates for Services related to a Radium Removal Plant at Well #11.

History and Fact:

On April 13th the Illinois Environmental Protection Agency (IEPA) notified Rochelle Municipal Utilities (RMU) that the level of radium sampled at one of the City’s four wells, Well 11 near the high school, exceeded the maximum contaminant level (MCL). As a result, RMU staff took Well 11 offline.

According to state statute, RMU is required to respond in writing to the IEPA outlining the actions that will be taken to return the well back to compliance and whether we are willing to enter into a Compliance Commitment Agreement (CCA) with the state. Superintendent Lanning had a series of conversations with IEPA representatives and they agreed to resolve this violation with one of two options. RMU will move forward with the planning and design of a radium removal plant at Well 11 and continue quarterly sampling and testing for radium over the next year. If we are able to lower the running average for radium below the MCL for 4 consecutive quarters then we will be in compliance and have no reason to proceed with the construction of a treatment plant. If the continued sampling does not yield results below the MCL, we will need to construct the treatment plant as outlined in the CCA at an approximate cost of $3.4 million. On June 27th the City Council approved a CCA with these provisions.

Discussion:

At the request of RMU staff, Willett Hofmann & Associates has submitted an engineering agreement for services related to a radium removal plant at Well #11 including the design, construction services, preparation of a water rate report and preparation of IEPA loan application documents. The total cost of these services is estimated to be $453,000 and will not be exceeded without prior authorization from the City.

Superintendent of Water/Water Reclamation Adam Lanning recommends proceeding with the scope of work as outlined. Since this issue was discovered in mid-April, the funding was not included in the 2016-17 budget.

Recommendation:

Authorize the Mayor to sign an Engineering Agreement with Willett Hofmann & Associates for Services related to a Radium Removal Plant at Well #11.

Agenda Item #4 Resolution in Support of an Application to the Economic Development Administration Public Works and Economic Adjustment Assistance Program for Project Co-Op

References:

  pdf Memo from Economic Development Director Jason Anderson (35 KB)

  pdf Resolution in Support of an Application to the Economic Development Administration (131 KB)

Recommended Action:

Consider Resolution in Support of an Application to the Economic Development Administration

History and Fact:

On August 8th the Mayor and City Council approved a Resolution in Support of an Application to the Economic Development Administration (EDA) Public Work and Economic Adjustment Assistance Program for Project Co-Op. This grant will cover up to 40% (and possibly more) of a $7.0M project known as “Project Co-Op” to extend two tracks east and south of the current City of Rochelle Railroad (CIR) terminus.

Discussion:

The EDA has requested, as part of the application for the $2.8M Public Works and Economic Adjustment Assistance Grant for Project Co-Op, a second resolution which states that the City Council would approve to bond up to $3.5M of the $4.2M match for the construction of Project Co-Op. The City's bond counsel will provide a letter to verify that the City of Rochelle is eligible to borrow up to $3.5M for the purposes of constructing rail to expand the CIR. The passing of this resolution is critical to the grant application's approval. Furthermore, applications for other infrastructure grants are being sought after to further offset the City's match.

Recommendation:

Approve a Resolution in Support of an Application to the Economic Development Administration Public Works and Economic Adjustment Assistance Program for Project Co-Op

Agenda Item #5 Minimum/Maximum Additional Billing for Contract Year 2011– Illinois Municipal League Risk Management Association

References:

  pdf Memo from HR Coordinator Nancy Bingham (27 KB)

  pdf Minimum/Maximum Additional Billing (149 KB)

Recommended Action:

Consider Additional Billing for Contract Year 2011

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. This insurance program covers worker’s compensation, auto liability, commercial general liability, portable mobile equipment, and the physical damage to auto and property. In addition, the City took advantage of the IMLRMA’s “Minimum/Maximum Premium Program” for several years in order to reduce our premium costs by accepting some risk of loss.

Discussion:

In December of 2010 the Mayor and Council approved an Ordinance Authorizing the Execution of the Minimum/Maximum Contribution Agreement for the period December 31, 2010 to December 31, 2011. At that time it was noted that “selecting the minimum payment option subjects the City to additional premiums of approximately $159,794 if our claims exceed program limits.” The IMLRMA agreement includes a provision for billing on a yearly basis when paid claim dollars are in excess of the Minimum Loss Fund until such time as the Maximum Loss Fund limit is attained or all claims initiated during the coverage period are closed. Due to some large worker compensation and general liability claims the City has received an additional billing of $60,167.64.

There is one large worker’s compensation claim (death) that is still open, with a death benefit to the widow for 25 years.

Recommendation:

Authorize the City Manager to pay the additional billing of $60,167.64 for contract year 2011 to the IMLRMA.

Discussion Item #1 

Earlier this year the City Manager engaged Utility Financial Solutions (UFS) to perform a financial review of the Rochelle Municipal Utilities Electric Department. UFS has completed its review and Mark Beauchamp, President of UFS, will attend the council meeting to provide information on the recommended debt coverage ratios, minimum cash reserves and target operating income.

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

Appointment of Tom Huddleston to the Stormwater Advisory Board for a term to expire July 1, 2019

Appointment of Tom Huddleston to the Planning and Zoning Commission as a (Non-voting) Member at Large for a term to expire July 1, 2021 

• Council Members

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf July 25, 2016 (69 KB)

b) Accept and Place on File Minutes of Planning and Zoning Commission – pdf June 27, 2016 (144 KB)

c) Accept and Place on File Minutes of Utility Advisory Board – pdf May 18, 2016 (180 KB)

d) Approve Bills – pdf 071516-072116 (148 KB) , pdf 072216-072816 (105 KB)

e) Approve Payroll – pdf 071816-073116 (55 KB)

f) Establish Annual Trick-r-Treat Schedule October 31, 2016 from 5:00pm-8:00pm

g) Approve Request for Closure of the 600 Block of North Main Street – pdf September 3, 2016 (94 KB)

h) Approve Hay Day Committee Request - pdf October 15, 2016 (33 KB)

i)  Approve Kiwanis Club and Golden K Request to Hold the Annual Peanut Day - pdf September 9, 2016 (16 KB)

2) Ordinance Amending Boundaries of R-3 and R-4 Zoning Districts and Amending the Official Zoning Map to Rezone Property at 501-503 South Ninth Street from R-3 to R-4

3) Purchase of a 4x4 Full Size Crew Cab Pickup Truck - Water Reclamation Division

4) Resolution in Support of an Application to the Economic Development Administration Public Works and Economic Adjustment Assistance Program for Project Co-op

5) Purchase of Bucket Truck – RMU Electric Division

6) Purchase of Four S&C IntelliRupters - RMU Electric Division

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Ordinance Amending Boundaries of R-3 and R-4 Zoning Districts and Amending the Official Zoning Map to Rezone Property at 501-503 South Ninth Street from R-3 to R-4

References:

  pdf Memo from Building Inspector Kip Countryman (21 KB)

  pdf Ordinance Amending Boundaries of R-3 and R-4 Districts and Amending the Official Zoning Map – 501-503 S Ninth Street (79 KB)

Recommended Action:

Consider an Ordinance Amending Boundaries of R-3 and R-4 Zoning Districts and Amending the Official Zoning Map to Rezone Property at 501-503 South Ninth Street from R-3 to R-4

History and Fact:

Alan and Marge Schilling have petitioned the City to rezone the property at 501-503 South Ninth Street to R-4 Multi-Family Low Density Residential. The original dwelling on the property, a duplex, is currently zoned R-3 Single Family High Density Residential. The petitioners are selling the property and the buyer is unable to get financing due to the legal non-conforming status. The property is surrounded by a residential duplex on the south, single family residential on the north, B-2 zoning on the east and residential to the west.

Discussion:

On August 1st the Planning and Zoning Commission held a public hearing on the petition for rezoning and subsequently voted to recommend approval by a vote of 4-0. Staff and the Planning and Zoning Commission feel that since the dwelling was originally constructed as a duplex the zoning change will not endanger the public health, is consistent with the land use plan, will not impede development of the surrounding properties and the use conforms to the regulations of the district in which it is located.

Recommendation:

Approve an Ordinance Amending Boundaries of R-3 and R-4 Zoning Districts and Amending the Official Zoning Map to Rezone Property at 501-503 South Ninth Street from R-3 to R-4

Agenda Item #3 Purchase of a 4x4 Full Size Crew Cab Pickup Truck - Water Reclamation Division

References:

  pdf Memo from Water/Water Reclamation Superintendent Adam Lanning (111 KB)

Recommended Action:

Consider the purchase of a 4x4 full size crew cab pickup truck for the Water Reclamation Division.

History and Fact:

Recently a 2002 water reclamation service vehicle was determined to be unsuitable for use due to a large hole in the floor. Although we did not budget for replacement of this vehicle, money is available in the FY 2016-17 capital budget. The existing 2002 pickup will be traded in as part of the purchase.

Discussion:

Subsequent to the required public notice, the City Clerk opened two bids on August 4th for a full size 4x4 crew cab pickup truck from one dealer. Water/Water Reclamation Superintendent Adam Lanning reviewed the bids and found that Prescott Brothers Ford met all of the specifications on both bids. Lanning recommends the acceptance of the bid for a 2016 model from Prescott Brothers Ford in the amount of $36,874, although it is $2,210 higher than the bid for a 2017 model. The 2017 model has not been built so the delivery time would be extended. The department is currently short a vehicle which is affecting productivity.

Recommendation:

Approve the purchase of a 2016 4x4 full size crew cab pickup truck from Prescott Brothers Ford in the amount of $36,874 and reject all other bids.

Agenda Item #4 Resolution in Support of an Application to the Economic Development Administration Public Works and Economic Adjustment Assistance Program for Project Co-op

References:

pdf Memo from Economic Development Director Jason Anderson (38 KB)

  pdf  Map (985 KB)

  pdf  Resolution in Support of an Application to the Economic Development Administration (131 KB)

Recommended Action:

Consider Resolution in Support of an Application to the Economic Development Administration

History and Fact:

30 years ago GREDCO and the City of Rochelle partnered to create the CIR (City of Rochelle Railroad). Since then 14 industries have been created, over $1.2B has been invested in land, buildings and equipment and more than 2,000 industrial jobs have been created. This industrial development has added more than $40M in additional tax base (EAV) and more than tripled the power, water and sewer revenues to the City. In addition, the revenues being generated by the CIR are funding quality of life projects such as the "Quiet Zone" which, when fully operational, will significantly reduce train whistle noise in Rochelle.

GREDCO also facilitated the start up of an industrial park by acquiring land which led to the development of GREDCO Park and Prologis Park - Rochelle. Today nearly all of the available land, adjacent to the CIR, has been sold or is under development. Therefore, we are proposing the next "Phase" of industrial development which will open over 500 acres to rail access through an extension of the CIR.

Discussion:

The City of Rochelle has an opportunity to apply for a Public Works and Economic Adjustment Grant. This grant will cover up to 40% (and possibly more) of a $7.0M project known as “Project Co-op” to extend two tracks east and south of the current CIR terminus. Through this grant, the CIR will be able to more than double the amount of storage/switching track. Per the Resolution, the City will need to commit a local match of up to $4.2M. Like in the past, the City will work with other economic development agency/partners to help fund the local match. The additional track will generate additional revenue to assist with any financing costs that could occur as a result of the project.

Staff recommends that the council pass the proposed Resolution so that the grant application can be submitted by August 30th, 2016.

Recommendation:

Approve a Resolution in Support of an Application to the Economic Development Administration Public Works and Economic Adjustment Assistance Program for Project Co-op

Agenda Item #5 Purchase of Bucket Truck – RMU Electric Division

References:

  pdf Memo from Superintendent of Electric Operations Jason Bird (49 KB)

  pdf NJPA Contract Summary (77 KB)

  pdf Altec Industries, Inc. Quote (23 KB)

Recommended Action:

Consider the purchase of a bucket truck for the Electric Division

History and Fact:

The 2003 bucket truck at the Electric Division has been in the shop at least a dozen times in the past year. Recently, RMU was informed that the leveling cables need to be replaced at a cost of $10,000-15,000.

Discussion:

A Model TA60 Articulating Telescopic Aerial Device with Material Handling (insulated), bucket truck, is available through the National Joint Power Alliance, from Altec Industries, Inc., for $226,667. Due to its condition, Altec Industries is not interested in providing a trade in allowance for the 2003 bucket truck. That vehicle will be disposed of, possibly through an on-line auction service.

The new bucket truck would not be delivered for approximately 300 days. Therefore, if the purchase is approved it will be included in the next fiscal year budget.

Superintendent Bird recommends proceeding with the purchase of the 2017 Model TA60 bucket truck at this time.

Recommendation:

Approve the purchase of a 2017 bucket truck through the National Joint Powers Alliance, from Altec Industries, in the amount of $226,667.

Agenda Item #6 Purchase of Four S&C IntelliRupters - RMU Electric Division

References:

  pdf Memo from Superintendent of Electric Operations Jason Bird (48 KB)

  pdf S&C IntelliRupter PulseCloser Fault Interrupter Specification Bulletin (192 KB)

  pdf Universal Utility Supply Company Quote (246 KB)

Recommended Action:

Consider the purchase of four S&C IntelliRupters for the Electric Division

History and Fact:

Rochelle Municipal Utilities (RMU) is in the process of improving the coordination on several distribution feeders. Improving this coordination will greatly reduce the outage time for these feeders. Improvements will be made to Feeder 32 first, based the fact that this feeder has the most opportunity for improvement.

The IntelliRupter project was discussed with members of the Utility Advisory Board at the July 20th meeting and they are in favor of moving forward.

Discussion:

As part of the coordination project, RMU will need to purchase four (4) S&C IntelliRupters. Unfortunately, S&C is the only company that offers this device and Universal Utility Supply Co. (UUSCO) is the local vendor for S&C. Therefore, competitive bidding on this equipment is nearly impossible. UUSCO has provided a quote for the four IntelliRupters in the amount of $198,380. State statute and the Rochelle Municipal Code, Section 2-371, allow the City Council by a 2/3 vote to authorize the city manager to enter into a contract without competitive bidding.

Based on the fact that the installation of these IntelliRupters will greatly improve the reliability of Feeder 32 and other feeders in the future, Superintendent Bird recommends proceeding with the purchase of the S&C IntelliRupters.

The coordination project was included in the 2016/17 Electric Fund Capital Outlay in the amount of $250,000.

Recommendation:

Approve the purchase of four S&C IntelliRupters from Universal Utility Supply Co. in the amount of $198,380 and waive the competative bid process for this purchase.