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

• Swearing In Ceremony – Chief David Sawlsville

• Pinning Ceremony – Lieutenant Zachary Prewett

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf January 25, 2016 (186 KB)

b) Approve Bills – pdf 01/15/16-01/21/16 (93 KB) , pdf 01/22/16-01/27/16 (71 KB)

c) Approve Payroll – pdf 01/04/16-01/17/16 (52 KB)

d) Authorize the City’s Assistance with the Hospital Hustle 5K Fun Run/Walk – pdf June 4, 2016 (24 KB)

e) Authorize Closure of 10th Avenue between Illinois 251 and 8th Street – pdf 2016 Outdoor Markets (21 KB)

f) pdf Accept and Place on File Annual Community Development Department Report (3.71 MB)

g) pdf Approve a Resolution Establishing the Official Zoning Map for 2015 (1.42 MB)

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

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:

• Rail Safety Week Award – Illinois Association of Chiefs of Police

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

• Financial Statement – pdf December 2015 (806 KB)

V. PUBLIC COMMENTARY:

• Ogle County Clerk and Recorder Candidate Laura Cook

• Creston Booster Days – Dave Brown

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf January 11, 2016 (147 KB)

b) Approve Bills – pdf 12/31/15- 1/7/16 (82 KB) , pdf 1/8/16-1/14/16 (86 KB)

c) Approve Payroll – pdf 12/21/15-01/3/16 (49 KB)

2) Resolution Adopting Brand Style Guide for City of Rochelle

3) Vendor Management Inventory Program - Rochelle Municipal Utilities Electric Division

4) Revised Public Water Supply Loan Program Ordinance Authorizing Loan Agreement- Well 12

5) Engineering Agreement – South Main Street Improvement Project

6) Proposal to Provide Professional Audit Services – Sikich LLP

        7) Rochelle Community Hospital Sanitary Sewer Relocation Project Change Orders

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Resolution Adopting Brand Style Guide for City of Rochelle

References:  pdf Resolution Adopting Branding Style Guide for City of Rochelle (56 KB)

Recommended Action:

Consider Resolution Adopting Brand Style Guide for City of Rochelle.

History and Fact:

In 2014 the City of Rochelle, along with several community partners, hired the Roger Brooks International firm to develop a unique brand for our community. After seeking public input in a variety of forums, Brooks unveiled the new brand in May of 2015. The associated brand promise states “Providing an enriching social experience in an amazing downtown: An intimate gathering place alive with music, food, an incredible year-round public market, and multi-cultural entertainment more than 250 days a year for every resident of Greater Rochelle.”

Discussion:

As discussed at the January 11th council meeting, the Brooks firm has created a Brand Style Guide which sets the parameters and guidelines for creating a cohesive visual identity for our community. The Plan recommends that the City adopt the Rochelle branded community-wide “Style Guide” and begin the process of transitioning to the new brand identity. According to Brooks, “The Style Guide will be the bible every organization will use to create continuity with your brand direction.”

The Brand Leadership Team (BLT) respectfully requests that the Mayor and Council move forward with adopting the Brand Style Guide for the City of Rochelle and the Downtown. This coupled with the authorization to solicit bids for the development of Downtown Plaza and Pavilion renderings, budget and timeline will show solidarity in our common goal of creating a new brand for our community.

Recommendation:

Approve Resolution Adopting Branding Style Guide for City of Rochelle

Agenda Item #3 Vendor Management Inventory Program - Rochelle Municipal Utilities Electric Division

References:

  pdf Memo from Superintendent of Electric Operations Jason Bird (39 KB)

  pdf Response to Inventory Management Services Request for Information – Anixter (981 KB)

  pdf Response to Inventory Management Services Request for Information – Wesco (4.91 MB)

Recommended Action:

Consider Inventory Management Services for Rochelle Municipal Utilities (RMU) Electric Division

History and Fact:

Rochelle Municipal Utilities Electric Division has a very large inventory which can be challenging to manage. One way to better control both the inventory and cost is a Vendor Management Inventory (VMI) program. A VMI program will help maintain real time inventory counts, allow for overstock items to be sold back and provide assistance in finding a buyer for excess items when necessary. VMI will also provide a larger pool to draw from for materials in an emergency response situation and put us on a 24/7 call list with the vendor.

Discussion:

RMU asked four vendors to submit responses to a Request for Information for Inventory Management Solutions. Of those, Anixter and WESCO submitted responses, both of which have provided materials to RMU in the past.

After carefully reviewing both applications, Superintendent Bird recommends selecting Anixter to Provide Inventory Management Services for Rochelle Municipal Utilities Electric Division based on cost and reliability. If approved, the next step would require Anixter Power Solutions to draw up a contract and RMU legal staff to review it.

Recommendation:

Approve the Selection of Anixter Power Solutions to Provide Inventory Management Services for Rochelle Municipal Utilities Electric Division

Agenda Item #4 Revised Public Water Supply Loan Program Ordinance Authorizing Loan Agreement– Well Southeast Quadrant

References:

  pdf Memo from Water/Water Reclamation Superintendent Adam Lanning (27 KB)

  pdf Ordinance Authorizing Loan Agreement (153 KB)

Recommended Action:

Consider a Public Water Supply Loan Program Ordinance Authorizing Loan Agreement

History and Fact:

In 2012 the Mayor and Council approved an Ordinance Authorizing a Loan Agreement with the Illinois Environmental Agency (IEPA) in order to borrow up to $4,300,000 from the Water Supply Loan Program. The original project plan associated with this ordinance was for the construction of a new well and well house in the southeast quadrant, connecting the well to the main, looping the system and replacing well house #4. At the request of the IEPA, the construction of the water tower was moved up in the schedule and subsequently added to the approved project plan. Since then council has approved contracts for drilling and developing the well, construction of the well building, purchase and installation of the well pump, connection of the water main and construction of the water tower.

Discussion:

Due to the addition of the water tower, the loan amount needs to be increased. The proposed ordinance authorizes the City to borrow up to $5,000,000 from the Water Supply Loan Program to finance the majority of the revised project plan. The ordinance was prepared by the project engineering consultant, Fehr Graham & Associates, working with the IEPA and has been approved by the IEPA. 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.

Recommendation:

Approve a Public Water Supply Loan Program Ordinance Authorizing Loan Agreement. Once approved, RMU will publish the approved ordinance giving electors the right to file a petition opposing the provisions of the ordinance.

Agenda Item #5 Engineering Agreement – South Main Street Improvement Project

References:

  pdf Memo from City Engineer Sam Tesreau (36 KB)

  pdf Agreement between the City and Fehr Graham Engineering and Environmental (114 KB)

Recommended Action:

Consider an agreement between the City of Rochelle and Fehr Graham for preliminary engineering services related to the South Main Street Improvement Project

History and Fact:

In 2011 the City of Rochelle submitted an Economic Development Program (EDP) grant application to the Illinois Department of Transportation (IDOT) in an effort to acquire funding for South Main Street improvements related to the expansion of the Graphic Arts Bindery. As a result, the City received an award letter from IDOT in the amount of $1,102,997 for roadway improvements on South Main Street between Steward and Steam Plant Roads, including 800 feet of improvements along Steward Road. In addition, IDOT committed $75,000 of Truck Access Route Program funding. The Mayor and Council subsequently approved a State/Local Joint Agreement and a Local Agency/Company Agreement related to the EDP funding and a resolution establishing South Main Street as a Class II Designated Truck Route. The State has since approved the joint agreement, which secured the EDP funds, and given the City until December 31, 2016 to award the construction portion of the project.

Discussion:

Fehr Graham Engineering and Environmental has provided a scope services for the preliminary engineering associated with the project for a fee of $193,750. Approval of this agreement will allow the necessary construction plans, specifications and other supporting information to be developed with a goal of construction in spring of 2017. This is a multi-year project and the 2015-16 Capital Projects Summary includes funds for the preliminary engineering work required for this improvement project.

Recommendation:

Authorize the City Manager to sign an agreement between the City of Rochelle and Fehr Graham Engineering and Environmental for preliminary engineering services related to the South Main Street Improvement Project

Agenda Item #6 Proposal to Provide Professional Audit Services – Sikich LLP

References:

  pdf Memo from Finance Director Chris Cardott (28 KB)

  pdf Proposal to Provide Professional Audit Services (570 KB)

Recommended Action:

Consider the Proposal from Sikich LLP to Provide Professional Audit Services

History and Fact:

In 2010, Finance Director Chris Cardott sent a request for proposal to several firms for quotes on providing audit services for the City of Rochelle, Rochelle Municipal Utilities, and the Police and Fire Pensions. Out of the five firms submitting proposals, Sikich LLP was selected to perform the audits for years ending April 30, 2010, 2011, and 2012. In 2012 the Mayor and Council authorized another three year contract with Sikich.

Discussion:

In the final meeting for fiscal year 2015, City and Sikich staff members discussed the implementation of GASB 68, Accounting and Financial Reporting for Pensions in fiscal year 2016. The implementation follows that of GASB 67 from fiscal year 2015. As a result, Sikich LLP submitted a proposal to provide audit services for the next three years. The proposal includes no increase for fiscal year 2016 and a 2%-3% increase for fiscal years 2017 and 2018.

Finance Director Chris Cardott recommends contracting with Sikich LLP for audit services for the next three years at a proposed cost of $63,288, $64,655, and $66,040 respectively.

Recommendation:

Authorize the City Manager to contract for audit services with Sikich LLP for the years
ending April 30, 2016, 2017, and 2018 based on their proposal.

Agenda Item #7 Rochelle Community Hospital Sanitary Sewer Relocation Project Change Orders

References:

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

  pdf Change Order #1 (59 KB)

  pdf Change Order (295 KB)  #2

Recommended Action:

Consider change orders.

History and Fact:

The Rochelle Community Hospital (RCH) expansion project currently underway necessitated the relocation of a 12 inch sanitary sewer line so that Rochelle Municipal Utility (RMU) crews have access to the line. The project was designed by Willet Hoffman & Associates, Inc. and a public bid opening was held in June of 2015. The contract was subsequently awarded to the low bidder, Martin Excavating Inc. in the amount of $309,102.64.

A Redevelopment Agreement between the City and RCH was approved by council on April 13th. This agreement includes a provision for the hospital to fund the sanitary sewer improvements up to and beyond $228,000.

Discussion:

During the construction Martin exposed an existing 6 inch water main which was in a deteriorated condition. Since the water main was in such poor condition and the contractor was on-site, the decision was made to replace the water main. This was approved under an emergency situation because the construction season was quickly coming to a close and the road needed to be restored and reopened. This additional work increased the original contract price from $309,102.64 to $502,882.19. The difference of $193,779.55 covers the cost of installing the water main and street restoration and is the sum of change orders 1 and 2. The entire project cost will be divided as follows: RCH $324,774.52 for sanitary sewer costs, RMU Water $129,269.54 for the water main portion and street department $48,838.13 for partial street restoration.

Superintendent Adam Lanning recommends approving the two change orders associated with this project.

Recommendation:

Approve the two change orders from Martin and Company for a total of $193,779.55.

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

• Financials – pdf November 2015 (855 KB)

V. PUBLIC COMMENTARY:

• Ogle County Clerk and Recorder Candidate Tiffany O’Brien

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf December 14, 2015 (118 KB)

b) Accept and Place on File Minutes of Planning and Zoning Commission – pdf November 2, 2015 (147 KB)

c) Approve Bills – pdf 120415-121015 (89 KB) , pdf 121115-121715 (85 KB) , pdf 121815-122315 (101 KB) , pdf 122415-123015 (76 KB)

d) Approve Payroll – pdf 112315-120615 (49 KB) , pdf 120715-122015 (52 KB)

2) Special Use Permit for Outdoor Storage – 1310 N 7th Street (Public Hearing and Action)

3) Ordinance Approving the Proposed Downtown and Southern Gateway Tax Increment Financing Redevelopment Plan and Project

4) Ordinance Designating the Proposed Downtown and Southern Gateway Redevelopment Project Area Pursuant to the Tax Increment Allocation Redevelopment Act

5) Ordinance Adopting Tax Increment Allocation Financing for the Downton and Southern Gateway Redevelopment Project Area Tax Increment Financing District

6) Solicitation of Bids for Development of Downtown Plaza and Pavilion Renderings, Budget and Timeline

7) Engineering Agreement - 20th Street and 8th Avenue Water Main Extension

8) Skid Load Generators Permit Application Fee, Control Systems Quote and Unit Readiness Quote

VII. DISCUSSION ITEMS:

1) Brand Style Guide

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Special Use Permit for Outdoor Storage – 1310 N 7th Street (Public Hearing and Action)

References:

  pdf Planning & Zoning Commission Report of Findings (74 KB)

Recommended Action:

Consider Special Use Permit for Outdoor Storage – 1310 N 7th Street

History and Fact:

Keith Scott has petitioned the City for a Special Use Permit to allow outdoor storage at 1310 N 7th Street. This property is approximately 0.86 acres in size and includes the former Pizza Hut restaurant facility. The lot fronts Illinois Highway 251 on the east and North 8th Street on the west.

The petitioner plans on using the former restaurant for a similar use. In addition, Mr. Scott would like to use the additional parking area to the west, not required for the restaurant, for vehicle storage associated with his towing business. If approved the area will contain perimeter fencing and pervious paving. The property is currently zoned B-2, Highway Commercial, and “Storage Outdoor” is a permitted use in this zoning district if a special use permit is issued.

The Planning and Zoning Commission, on November 2, 2015, heard the original petition and recommended that the City Council deny the request for a special use permit. On November 23, 2015 the Mayor and Council referred the petition back to the Planning and Zoning Commission in order for the petitioner to appear before the Commission, which had not occurred on November 2nd.

Discussion:

The Planning and Zoning Commission held a public hearing to review the petition at its meeting on January 4th. Following some discussion, the Planning and Zoning Commission prepared a report of findings which includes:
• The proposed use is allowed in the proposed zoning district with a special use permit
• The proposed use is detrimental or dangerous to public health due to the possible infestation of rodents, fluid run off that might leak in to the ground and stormwater drainage.
• The proposed use will impair property values in the neighborhood because you wouldn’t want to own property there with concerns of rodents and an empty restaurant with only an outdoor storage facility.
• The proposed use will not impede on the normal development of the surround properties because the properties are already developed with consistent land uses.
Based on these findings, the Planning and Zoning Commission, by a vote of 6-0, recommended that the City Council deny the issuance of a special use permit for outdoor storage at 1310 N 7th Street.

Recommendation:

Deny a Special Use Permit for Outdoor Storage – 1310 N 7th Street

Agenda Item #3-5

Ordinance Approving the Proposed Downtown and Southern Gateway Tax Increment Financing Redevelopment Plan and Project
Ordinance Designating the Proposed Downtown and Southern Gateway Redevelopment Project Area Pursuant to the Tax Increment Allocation Redevelopment Act
Ordinance Adopting Tax Increment Allocation Financing for the Downtown and Southern Gateway Redevelopment Project Area Tax Increment Financing District

References:

  pdf Ordinance Approving the Redevelopment Plan and Project (3.38 MB)

  pdf Ordinance Designating the Redevelopment Project Area (349 KB)

  pdf Ordinance Adopting Tax Increment Allocation Financing (250 KB)

Recommended Action:

Consider Ordinances

History and Fact:

On June 8, 2015 the Mayor and Council approved a Development Agreement with MTI, Inc. to facilitate the redevelopment of the Hub Theater and the Graber buildings in the downtown. The Development Agreement contained a provision that the City would pursue the formation of a Tax Increment Financing (TIF) District, to include these properties, and reimburse MTI a percentage of TIF-eligible costs for renovation of both buildings.

Discussion:

Several steps were taken in 2015 to prepare for the establishment of a TIF District including Council approval of an Inducement Resolution on June 8th, presentation of a draft redevelopment plan to the Mayor and Council on August 24th, a public meeting on September 15th, a Joint Review Board on October 20th and a Public Hearing conducted on November 19th.

In order to comply with TIF regulations it is necessary for the council to take action on three additional ordinances. The Ordinance Approving the Redevelopment Plan and Project outlines the requirements contained in the TIF Act, indicates that those have been followed and approves the redevelopment plan. The Ordinance Designating the Redevelopment Project Area defines the area associated with the plan. The Ordinance Adopting Tax Increment Allocation Financing adopts the provisions of the TIF Act for the redevelopment plan and area as defined.

Recommendation:

Approve Ordinance Approving the Proposed Downtown and Southern Gateway Tax Increment Financing Redevelopment Plan and Project
Approve Ordinance Designating the Proposed Downtown and Southern Gateway Redevelopment Project Area Pursuant to the Tax Increment Allocation Redevelopment Act
Approve Ordinance Adopting Tax Increment Allocation Financing for the Downtown and Southern Gateway Redevelopment Project Area Tax Increment Financing District

Agenda Item #6 Solicitation of Bids for Development of Downtown Plaza and Pavilion Renderings, Budget and Timeline

Recommended Action:

Consider authorizing the solicitation of bids for the development of Downtown Plaza and Pavilion renderings, budget and timeline.

History and Fact:

In 2014 the City of Rochelle along with the Flagg-Rochelle Park District, Rochelle Township High School, Rochelle Community Consolidated District #231, Rochelle Community Hospital, the Greater Rochelle Economic Development Corporation and the Rochelle Area Chamber of Commerce joined forces to pursue the development of a unique community brand. The Roger Brooks International firm was selected to lead this initiative due to their experience and overwhelming success in creating public sector community branding.

Following multiple public meetings, a community survey, stakeholder meetings, and extensive meetings with the Brand Development Team, Brooks unveiled the new brand in May of 2015. The associated brand promise states “Providing an enriching social experience in an amazing downtown: An intimate gathering place alive with music, food, an incredible year-round public market, and multi-cultural entertainment more than 250 days a year for every resident of Greater Rochelle.”

Discussion:

The Brooks firm has since provided the City with a Branding, Development and Marketing Action Plan which is the road map to transforming our community. Per the Plan, a Brand Leadership Team (BLT) has been formed to champion the vision of a new community brand. The BLT’s focus has been to educate and inform the people of Greater Rochelle on the importance of the branding initiative and the programmed downtown public plaza and pavilion.

The Plan calls for the Brand Leadership Team to work with the City of Rochelle for funding to jump start the recommendations made in the plan. The proposed next step will transform the concepts provided by the Brooks team into a unified vision that will showcase the architectural design of the public plaza and pavilion as it will be in Downtown Rochelle. The Brand Leadership Team is requesting that the City Council authorize the solicitation of bids for urban architectural guidance that will produce standard renderings of the plaza and pavilion, a realistic budget and timeline at a cost not to exceed $25,000. These renderings would be on display throughout the City to create awareness for the project and to illustrate the functionality and beauty of the downtown design.

Members of the Brand Leadership Team will attend the meeting to respond to questions from the Mayor and Council members.

Recommendation:

Authorize the solicitation of bids for the development of Downtown Plaza and Pavilion renderings, budget and timeline at a cost not to exceed $25,000.

Agenda Item #7 Engineering Agreement - 20th Street and 8th Avenue Water Main Extension

References:

  pdf Memo from Superintendent of Water/Water Reclamation Adam Lanning (28 KB)

  pdf Engineering Agreement (198 KB)

Recommended Action:

Consider an Engineering Agreement with Fehr Graham for 20th Street and 8th Avenue Water Main Extension.

History and Fact:

RMU Water/Water Reclamation staff has planned a project to extend the existing 12 inch water main along 20th Street from 10th Avenue to 8th Avenue and along 8th Avenue from 20th Street to 15th Street. In addition, the project will include the replacement of approximately 1,000 feet of 6” galvanized main that is known to be a problem. This water main extension will provide a critical path for water to travel from the north side of town to the central part of the city.

Discussion:

At the request of RMU staff, Fehr Graham Engineering has submitted an engineering agreement for the design and construction phase assistance, including observation, for the water main extension project. The total project will include the construction of 2,700 feet of 12” water main.

Superintendent of Water/Water Reclamation Adam Lanning recommends proceeding with the scope of work as outlined at an estimated cost of $54,000. Funding for this agreement is available in the 2015-16 Water Department Capital Outlay Budget.

Recommendation:

Authorize the City Manager to sign an Engineering Agreement with Fehr Graham Engineering for 20th Street and 8th Avenue Water Main Extension.

Agenda Item #8 Skid Load Generators Permit Application Fee, Control Systems Quote and Unit Readiness Quote

References:

  pdf Memo from Director Utilities Business Management and Energy Production Dan Westin (159 KB)

Recommended Action:

Consider permit application fee, control systems quote and unit readiness quote.

History and Fact:

Council approved the overall project for 6 MW of additional peak shaving generation at its October 27th meeting.

Discussion:

RMU staff, Altorfer and BHMG have created a project for these generators which includes a highly efficient integration into RMU’s distribution network with a large amount of reuse of the initial skid load project.

This recommendation is for executing the purchase of the following components for the skid load generators so they can be readied for implementation into the overall project in the spring of 2016:
- Payment of EPA Permit application: $ 24,000
- Control Systems for Remote Control per BHMG quote: $ 349,200
- Additional work on the units for readiness per Altorfer Quote: $ 98,460

Funds for the units are in the budget as part of the transmission line upgrade which is now moved out of FY16 and the rest coming from the Depreciation, Improvement and Extension account (DIE) account. RMU staff and BHMG have created a project for these generators which includes a highly efficient integration into RMU’s distribution network with a large amount of reuse of the initial skid load project.

Recommendation:

Approve the payment of $24,000 to the Illinois EPA for an expedited review of permit application.
Authorize the City Manager to sign the Memorandum of Agreement with BHMG for Caterpillar Power Module Control System Upgrade at a lump sum cost of $349,200.
Authorize the City Manager to sign the Proposal from Altorfer for additional work on the units at a cost of $98,460.

Discussion Item #1

As mentioned earlier, the Roger Brooks International firm has provided the City with a Branding, Development and Marketing Action Plan. In addition, Brooks has created a Brand Style Guide which sets the parameters and guidelines for creating a cohesive visual identity for our community. The Plan recommends that the City adopt the Rochelle branded community-wide “Style Guide” and begin the process of transitioning to the new brand identity. According to Brooks, “The Style Guide will be the bible every organization (City and city departments, Chamber of Commerce, GREDCO, the Main Street program, and visitor industry private marketing) will use to create continuity with your brand direction.”

The Brand Steering Committee will meet with the Funding Partners of the Roger Brooks International Community Branding Project later this month. The Committee will discuss next-steps and how our partner organizations can embrace the downtown public plaza and pavilion project and the new look and feel of the community-wide brand.

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 Roy Jones to the Airport Advisory Board as a Voting Member for a term to expire July 1, 2016

 - Appointment of John "Skip" Kenny to the Airport Advisory Board as a Member at Large for a term to expire July 1, 2018                 

• Council Members

• Hub Theater

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – November 23, 2015

b) Approve Bills – pdf 111315-111915 (101 KB) , pdf 112015-112615 (76 KB) , pdf 112715-120315 (95 KB)

c) Approve Payroll – pdf 110915-112215 (52 KB)

d) pdf Approve City of Rochelle Meeting Dates for 2016 (23 KB)

e) pdf Approve City of Rochelle Legal Holidays for 2016 (23 KB)

f) Accept and Place on File Minutes of TIF Public Hearing – pdf November 19, 2015 (108 KB)

g) Approve Use of Rochelle Municipal Airport for Rochelle Area Chamber of Commerce Summer Country Jam Concert – pdf August 13, 2016 (94 KB)

h) Authorize St. Patrick’s Day Parade and Festival – pdf March 12, 2016 (64 KB)

i) Approve Closure of City Street for the Lucky Hub Dash – pdf March 12, 2016 (69 KB)

2) Ordinance Adopting 2015 Tax Levy

3) Ordinance Abating the Taxes Levied for 2015 - Taxable General Obligation Bonds

4) Lee Ogle Enterprise Zone Intergovernmental Agreement

5) ISC Operations Agreement – Control Room Services RMU Electric

VII. DISCUSSION ITEMS:

1) City of Rochelle Strategic Plan

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Ordinance Adopting 2015 Tax Levy

References:

  pdf Memo from Finance Manager Chris Cardott (87 KB)

  pdf Real Estate Tax Rate Extension (16 KB)

  pdf Ordinance Levying Taxes for the City of Rochelle (50 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 $211,439,971 and its property tax rate was $1.053650 per $100 of EAV, which allowed the City to collect $2,168,253.47 in property taxes. For the upcoming year, Ogle County has estimated the City’s EAV at $237,869,359.

Discussion:

Finance Manager Chris Frye led a discussion on the 2015 Tax Levy at the November 23rd City Council meeting. The Fire and Police Pension Boards have requested that council fully fund their recommendations based on actuarial studies. The Fire Pension Board is seeking a contribution from property taxes of $284,203. The Police Pension Board is seeking a contribution of $319,397.

The proposed levy calculations would result in the City collecting $2,276, 386 in property taxes, an increase of 4.99% over 2014. Based on the estimated EAV, the tax rate would decrease by .070004 per $100 EAV, compared to 2014, to a rate of 0.983646. The proposed 2015 levy includes funding the Police and Fire Pension Funds as recommended by the boards.

Recommendation:

Approve an Ordinance Levying Property Taxes for the City of Rochelle for the Fiscal Year May 1, 2015 through April 30, 2016

Agenda Item #3 Ordinance Abating the Taxes Levied for 2015 – Taxable General Obligation Bonds

References:

  pdf Ordinance Abating the Taxes Levied for 2015 – Taxable General Obligation Bonds (143 KB)

Recommended Action:

Consider an Ordinance Abating the Taxes Levied for 2015 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 will be 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 2015 to Pay Debt Service on Taxable General Obligation Bonds

Agenda Item #4 Lee Ogle Enterprise Zone Intergovernmental Agreement

References:

  pdf Memo from Economic Development Director Jason Anderson (30 KB)

  pdf Ordinance Establishing Lee Ogle Enterprise Zone (370 KB)

  pdf Addendum A (1.07 MB)

  pdf Addendum B (461 KB)

Recommended Action:

Consider the Lee Ogle Enterprise Zone Agreement

History and Fact:

New legislation in the State of Illinois has opened the door for Ogle County and the City of Rochelle to have a designated Enterprise Zone. The new zone would encompass the Cities of Dixon and Rochelle and include Commercial, Retail and Industrial zoned properties within the Cities as well as in unincorporated properties in the counties.

Discussion:

Under the new legislation 4 units of government can join together to form a new zone which, has been named the Lee - Ogle Enterprise Zone and will include 9,600 acres evenly divided between the two counties and both cities. Of the 9,600 acres, 1000 acres will be "undesignated" which will allow for other communities to adopt the Enterprise Zone at a later date if an economic development opportunity should become available in other communities.

The Lee Ogle Intergovernmental Agreement includes a tax abatement incentive which will apply to approved projects within the zone. The tax abatement is the same as the current tax abatement in the existing Enterprise Zone. Taxes on incremental increase of EAV would be at 50% for six years. Each of the 42 taxing districts within the proposed zone are being asked to approve the tax abatement under the Enterprise Zone application.

Applications for the new Enterprise Zone are due by Dec 31, 2015 with an expected announcement of Enterprise Zone awards expected in September of 2016. Staff recommends that the City Council pass the ordinance establishing the Lee Ogle County Enterprise Zone.

Recommendation:

Authorize an Ordinance Establishing Lee Ogle Enterprise Zone City of Rochelle-Enterprise Zone Designation – Property Tax Abatement

Agenda Item #5 ISC Operations Agreement – Control Room Services RMU Electric

References:

  pdf Memo from Director Utilities Business Management and Energy Production Dan Westin (84 KB)

  pdf Operating Services Agreement (183 KB)

Recommended Action:

Consider an Operations Agreement with ISC

History and Fact:

The City of Rochelle entered into an Operating Services Agreement with the Indiana Municipal Power Agency (IMPA) on January 1, 2006 for a term of ten years. As a result ISC, the service arm of IMPA, has acted on RMU’s behalf in making energy purchases on a daily basis during that time period.

Discussion:

IMPA recently reviewed its business model and has decided to discontinue this service to entities outside of Indiana. As a result, RMU staff recommend going through an RFQ process to select a new service provider. During this transition, Director of Utilities Business Management and Energy Production Dan Westin recommends that the City enter into the proposed agreement with ISC for the next four months for a flat fee of $20,900 per month.

Recommendation:

Authorize the City Manager to sign an Operating Services Agreement with ISC for control room services for RMU Electric

Discussion Item #1 City of Rochelle Strategic Plan

Earlier this year the City hired Dr. Alicia Schatteman to assist with the development of a Strategic Plan for the City of Rochelle. After the initial data collection, Dr. Schatteman met with the City Council and Senior Staff on October 5th to go over the planning process and do a SWOT analysis. She subsequently prepared a draft of strategic issues and met with Council and Senior Staff again on November 2nd to discuss her report and build consensus on the strategic issues and goals. As a result, Dr. Schatteman has delivered the draft City of Rochelle Strategic Plan for 2016-18 for council review and adoption when appropriate.

References:

  pdf City of Rochelle Strategic Plan 2016-2018 (Draft) (718 KB)

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 Nathan Timm (61 KB)

• Financials – pdf October 2015 (879 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 9, 2015 (115 KB)

b) Approve Bills – pdf 110615-111215 (78 KB)

c) Approve Payroll – pdf 102615-110815 (50 KB)

d) pdf Accept and Place on File Municipal Compliance Report – Fire Pension Fund (80 KB)

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

2) Special Use Permit for Outdoor Storage – 1310 N 7th Street (Public Hearing and Action)

3) Blue Cross Blue Shield 2016 Health Insurance Renewal

4) Proposal for Professional Services Flood Modeling - Rochelle Rail Expansion

5) Preliminary Engineering Design Services Agreement – Seventh Avenue Bridge

6) Engineering Agreement - 20th Street and 8th Avenue Water Main Extension

7) Purchase of Skid Load 6 MW Generators

VII. DISCUSSION ITEMS:

1) Tax Levy 2015-16

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Special Use Permit for Outdoor Storage – 1310 N 7th Street (Public Hearing and Action)

References:

Planning & Zoning Commission Report of Findings

Recommended Action:

  pdf Consider Special Use Permit for Outdoor Storage – 1310 N 7th Street (69 KB)

History and Fact:

Keith Scott has petitioned the City for a Special Use Permit to allow outdoor storage at 1310 N 7th Street. This property is approximately 0.86 acres in size, includes a restaurant facility (the former Pizza Hut) and is zoned B-2 Commercial Highway. The lot fronts Illinois Highway 251 on the east and North 8th Street on the west.

The petitioner plans to restore the restaurant facility on the property to a similar use. In addition, he would like to use the parking area to the west for vehicle storage associated with his towing business. If approved, the storage area would include perimeter fencing and pervious paving.

Discussion:

The Rochelle Municipal Code currently allows “Storage, Outdoor” in the B-2 district if a special use is issued.

The Planning and Zoning Commission held a public hearing to review the petition at its meeting on November 2nd. Following some discussion, the Planning and Zoning Commission prepared a list of findings which includes: the use requires a special use permit, the use of the property for a restaurant conforms to the “District Use Classification, the use would be detrimental or dangerous to public health due to the potential for rodent infestation in this type of storage, the use may impair property values in the neighborhood and is better suited in Industrial Districts, the use will not impede on the normal development and improvement of the surround properties, the use will not impair light and air, congest public streets, increase the rise of fire or substantially diminish property values within the vicinity but it may endanger the public health due to increased risk of rodent infestation. Based on these findings, the Planning and Zoning Commission, by a vote of 6-0, recommended that the City Council deny the issuance of a special use permit for outdoor storage at 1310 N 7th Street.

Recommendation:

Deny a Special Use Permit for Outdoor Storage – 1310 N 7th Street

Agenda Item #3 Blue Cross Blue Shield 2016 Health Insurance Renewal

Recommended Action:

Consider renewal of the Blue Cross/Blue Shield health insurance policy for 2016.

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, 2016 at an increased cost of 6.1 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 2015, the single plan premium cost $694.14 per month and family plan premium cost $1,780.12. After the 6.1 percent increase effective January 1, 2016, the single plan will increase to $736.35 and the family plan will increase to $1,883.37.

The total estimated cost of the Blue Cross/Blue Shield insurance will be $1,996,111 during 2016. The expense is budgeted within each department across all city funds. The 2015-16 budget anticipated an increase in health insurance costs during the January through April period.

Recommendation:

Approve renewal of the Blue Cross/Blue Shield of Illinois health insurance plan for 2016.

Agenda Item #4 Proposal for Professional Service - Flood Modeling Rochelle Southern Rail Expansion

References:

  pdf Memo from Economic Development Director Jason Anderson (85 KB)

  pdf Agreement for Professional Services (88 KB)

Recommended Action:

Consider an Agreement between the City of Rochelle and Fehr Graham Engineering & Environmental

History and Fact:

The City of Rochelle Railroad has been an economic driver in our region for the past several years. It offers local industries a competitive advantage by providing access to both the Union Pacific and Burlington Northern Santa Fe Railroads for their shipping needs.

Discussion:

The City of Rochelle Railroad is currently operating at or above its designed capacity. Extending the rail system is necessary for further industrial development of rail related industries. The City and GREDCO own 2.2 miles of rail right of way south of the current terminus which will allow additional track to be built which will open up hundreds of acres for development.

The Economic Development Department recommends that the City begin the process of flood modeling and associated floodway/floodplain permitting in the City’s rail right-of way from John’s Creek south to the Gratton/Ravnaas property line, continuing east to Steward Road. This modeling and permitting are important steps in the design of a future rail extension to the south.

Fehr Graham Engineering and Environmental has provided a scope of services for the flood modeling and associated floodway/floodplain permitting for a fee of $54,090. The cost of the study will be paid out of the railroad revenue funds which are exceeding budgeted levels for the current fiscal year. Staff recommends that the City Council approve the proposal to proceed with the study

Recommendation:

Authorize the City Manager to sign an agreement between the City of Rochelle and Fehr Graham Engineering & Environmental for flood modeling and associated floodway/floodplain permitting associated with the future extension of the City of Rochelle Railroad.

Agenda Item #5 Preliminary Engineering Design Services Agreement – Seventh Avenue Bridge Project

References:

  pdf Memo from City Engineer Sam Tesreau (97 KB)

  pdf Agreement between the City and Wendler Engineering Services (223 KB)

Recommended Action:

Consider an agreement between the City of Rochelle and Wendler Engineering Services related to the Seventh Avenue Bridge Project

History and Fact:

The Seventh Avenue structure was installed nearly 50 years ago. Over the past few years bridge inspections and reports, required by the Illinois Department of Transportation, have identified spalling of concrete (broken, flaked or pitted), exposed reinforcement, wingwall tipping and deterioration of the deck slab, substructure and the pedestrian walkway. The existing bridge structure has been posted at a weight limit of 22 tons for some time due to these condition ratings. In addition, this bridge has a limited effective opening for conveyance of water and routinely collects debris and sediment.

Discussion:

At the request of City Engineer Sam Tesreau, Wendler Enginering has submitted a proposal for the engineering design and surveying services to prepare plans and specifications for the bidding to replace the structure including roadway approaches. The base engineering scope of services identified in the agreement includes a fee not to exceed $44,000. In addition, the right of way/easement plats and acquisition are estimated to cost $7,500 and environmental services/permitting, if required, will cost approximately $10,000.

Staff has identified this project as a multi-year capital improvement project. The 2015-16 Capital Improvements budget includes $70,000 for this project and the remaining construction and related items will be included in the FY 2016-2017 budget, assuming the necessary permits can be obtained within that timeframe. This project will be funded through sales tax and/or motor fuel tax funds.

Once complete, the new structure will be a traditional bridge with updated pedestrian crossings along the north and south sides of the sidewalk system. The new bridge will help increase the conveyance of the Kyte River.

Recommendation:

Authorize the City Manager to sign an agreement between the City of Rochelle and

Wendler Engineering Services related to the Seventh Avenue Bridge Project

Agenda Item #6 Engineering Agreement - 20th Street and 8th Avenue Water Main Extension

References:

  pdf Memo from Superintendent of Water/Water Reclamation Adam Lanning (28 KB)

  pdf Engineering Agreement (5.04 MB)

Recommended Action:

Consider an Engineering Agreement with Willett Hofmann & Associates for 20th Street and 8th Avenue Water Main Extension.

History and Fact:

RMU Water/Water Reclamation staff have planned a project to extend 12 inch water main along 20th Street from 10th Avenue to 8th Avenue and along 8th Avenue from 20th Street to 15th Street. In addition, the project would include the replacement of approximately 1,000 feet of 6” galvanized main that is known to be a problem. This water main extension will provide a critical path for water to travel from the north side of town to the central part of the city.

Discussion:

At the request of RMU staff, Willett Hofmann & Associates has submitted an engineering agreement for the design and construction phase assistance, including observation, for the water main extension project. The total project will include the construction of 3,120 feet of 12” water main.

Superintendent of Water/Water Reclamation Adam Lanning recommends proceeding with the scope of work as outlined at an estimated cost of $67,000. Funding for this agreement is available in the 2015-16 Water Department Capital Outlay Budget.

Recommendation:

Authorize the City Manager to sign an Engineering Agreement with Willett Hofmann & Associates for 20th Street and 8th Avenue Water Main Extension.

Agenda Item #7 Purchase of Skid Load 6 MW Generators

References:

  pdf Memo from Director Utilities Business Management and Energy Production Dan Westin (100 KB)

  pdf Altorfer Proposal (476 KB)

Recommended Action:

Consider purchase of skid load generators.

History and Fact:

Council approved the overall project for 6 MW of additional peak shaving generation at the October 27th meeting.

Discussion:

RMU staff and BHMG have created a project for these generators which includes a highly efficient integration into RMU’s distribution network with a large amount of reuse of the initial skid load project.

This recommendation is for executing the purchase of the gen sets so they can be readied for implementation into the overall project in the spring of 2016.

Funds for the units are in the budget as part of the transmission line upgrade which is now moved out of FY16 and the rest coming from the Depreciation, Improvement and Extension account.

Recommendation:

Approve the purchase of 3 – 2 MW Skid Load Generators from Altorfer at a cost of $1,649,000 and related 5 year maintenance of $48,880.

Discussion Item #1 

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 2015-16 will be included as a business item on the December 14th 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 discuss their respective recommendations and respond to questions from the Mayor and Council.

References:

 Rochelle Police Pension Fund Recommendation – Rochelle Police Pension Board

  pdf Rochelle Police Pension Fund Recommendation – Lauterbach & Amen, LLP (347 KB)

pdf Rochelle Fire Pension Fund Recommendation – Rochelle Fire Pension Board (353 KB)

  pdf Rochelle Fire Pension Fund Recommendation - Lauterbach & Amen, LLP (324 KB)

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:

· pdf Veterans Day, November 11, 2015 (53 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 October 26, 2015 (85 KB)

b) Approve Bills – pdf 101615-102215 (101 KB) , pdf 102315-102915 (111 KB) , pdf 103015-110515 (93 KB)

c) Approve Payroll – pdf 101215-102515 (135 KB)

d) Accept and Place on File Planning and Zoning Commission Minutes – pdf August 3, 2015 (143 KB)

e) pdf Ordinance Amending Section 6-46 of the Municipal Code to Create One Restaurant/Recreation     Liquor License – Simandhar Tobacco 222 May Mart Drive (29 KB)

f) pdf Resolution Urging Illinois State Leaders to Release Non-General Fund Revenues Payable to Local Governments (54 KB)

2) Audit Reports Fiscal Year 2014/2015

3) Ordinance Consenting to Lease between Flagg Township Historical Society and Flagg-Rochelle Community Park District – Old City      Hall Museum

4) Risk Insurance Renewal

5) Release of Surety – Prologis Park Rochelle Unit Two Subdivision

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Audit Report Fiscal Year 2014/2015

References:

pdf City of Rochelle Comprehensive Annual Financial Report - April 30, 2015 (3.17 MB)

pdf Rochelle Municipal Utilities Annual Financial Report - April 30, 2015 (1.79 MB)

pdf Tax Increment Financing Fund Financial Report – April 30, 2015 (1.66 MB)

pdf Single Audit Report – April 30, 2015 (2.25 MB)

pdf Management Letter – April 30, 2015 (936 KB)

Recommended Action:

Consider Audit Reports

History and Fact:

On November 26, 2012 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, 2013, 2014 and 2015. Although this is the third year under the new contract, this is the sixth year that Sikich has completed our annual audit.

Discussion:

Sikich planned and performed the audit in order to verify that the financial statements are free of material misstatements. This included performing procedures to obtain audit evidence supporting the amounts and disclosures reported in the financial statements. The audit also included evaluating the appropriateness of accounting principles applied, 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, 2015, 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 2014/2015 as prepared and presented by Sikich, LLP.

Agenda Item #3 Lease Agreement between Flagg Township Historical Society and Flagg-Rochelle Community Park District – Old City Hall Museum

References:

  pdf Lease Agreement (1.14 MB)

  pdf Ordinance Consenting to Lease between Flagg Township Historical Society and Flagg-Rochelle Community Park District – Old City Hall Museum (8 KB)

Recommended Action:

Consider an Ordinance Consenting to Lease between Flagg Township Historical Society and Flagg-Rochelle Community Park District

History and Fact:

The property located at 518 Fourth Avenue was built in 1884 as Rochelle’s Town Hall. After outgrowing the building in 1980, the City deeded the property to the Historical Society for use as a museum, reserving specific development rights. Since that time the Flagg Township Historical Society has continued to improve and maintain the building.

In October of 2010 the Flagg Township Historical Society entered into a five year lease agreement with the Flagg-Rochelle Community Park District. This agreement allowed the Historical Society to continue to operate the museum and provided a funding source through the Park District’s taxing authority. On November 22, 2010, due to the City’s development rights, the Council approved an ordinance consenting to the five-year lease between the two parties.

Discussion:

The lease between the Flagg Township Historical Society and the Flagg-Rochelle Community Park District recently expired. The parties have asked the City to consent to a new five-year lease with an expiration date of October 31, 2020.

Recommendation:

Approve an Ordinance Consenting to Lease between Flagg Township Historical Society and Flagg-Rochelle Community Park District.

Agenda Item #4 Risk Insurance Renewal

References:

  pdf Memo from Human Resources Coordinator Nancy Bingham (19 KB)

  pdf Standard and Minimum-Maximum Renewal Options (133 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.

Since staff solicited risk insurance proposals from other agencies in recent years and chose to remain with IMLRMA, no other quotes were pursued for 2016. Staff will solicit proposals again for the 2017 risk insurance plan year.

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 could occur and contributions of approximately 21.5% extra would result.

After reviewing the options, 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 20th, the City can take advantage of the early pay discount of 1% for a total premium of $640,790.37. This premium is an increase of 3.193% over the 2015 premium.

Recommendation:

Approve participation in the IMLRMA Standard Option.

Agenda Item #5 Release of Surety – Prologis Park Rochelle Unit Two Subdivision

References:

  pdf Memo from City Engineer Sam Tesreau (89 KB)

Recommended Action:

Consider a release of surety for the completion of land improvements.

History and Fact:

The final plat for the Prologis Park Rochelle – Unit Two subdivision was recorded in 2009. In connection with that subdivision, Prologis submitted Bond No. 82195291 as surety for the completion and maintenance of land improvements.

Discussion:

Vice President of Prologis Jim Nass has requested a release of the surety due to the completion of the required improvements. City staff has reviewed the request, and the outstanding items identified in a letter to Mr. Nass in 2011, and finds that those improvements have been completed or corrected. In addition, the two year performance maintenance period has expired. Therefore, City Engineer Sam Tesreau recommends the release of the remaining surety of $354,800 be released.

Recommendation:

Approve the release of surety for completion of land improvements for Prologis Park Rochelle Unit Two Subdivision.

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 Statement September 2015 (847 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 13, 2015 (110 KB)

b) Approve Bills – pdf 10/02/15-10/08/15 (80 KB) ,  pdf 10/09/15-10/15/15 (78 KB)

c) Approve Payroll –  pdf 09/28/15-10/11/15 (49 KB)

d) Approve Downtown Rochelle Association’s Request for the Christmas Walk  pdf December 4, 2015 (55 KB)

e) Authorize Lighted Christmas Parade –  pdf December 4, 2015 (221 KB)

2) 6 MW Skid Load Generators Phase II Project

3) Ordinance Authorizing Lease of Property – 8764 South Highway 251

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 6 MW Skid Load Generators Phase II Project

References:

pdf Memo from Director Utilities Business Management and Energy Production Dan Westin (178 KB)

Recommended Action:

Consider project commitment on additional 6 MW Skid Load Generators

History and Fact:

RMU generator sets go back to vintages of 1947 and the maintainability of these units has gone down drastically. In addition these units were designed for continuous running – not peak shaving. Overall generator set availability has been down to as low as 40 % which does not provide enough capacity to drive down the summer capacity charges.

RMU’s ability to generate capacity is very important for peak shaving, the ability to reduce our demand on the grid when market prices for energy are exceptionally high, especially during the hot summer. Peak shaving is critical for RMU given the capacity cost increases in PJM (which is the Energy region RMU participates in). The capacity costs are measured in $/MWDay and are charged for the full planning year starting June 1st (energy costs of $/kWh is a completely different measure).

The capacity charges for Planning Year 2018/2019 were identified in the PJM August auction as
$ 215/MWDay. That is $ 43,800 per MW per year.

Discussion:

RMU staff and BHMG have created a project for an additional 6MW of highly reliable capacity to be operational by June 1, 2016. The project includes an efficient integration into RMU’s distribution network with a large amount of reuse of the initial skid load project.

The total project is estimated to be $ 3,353,000 and includes the following:
General Site Work/Fuel System - $450,000
Electrical/Controls - $1,084,000
Permitting/Startup - $70,000
Generator Purchase - $1,749,000
This also includes the Rice-Neshap equipment as well as the automation of the units.

The return on this investment is expected to be 184%.

The UAB formally recommended approval of the investment in these units at its meeting in September.

Funds for the units are in the budget as part of the transmission line upgrade which has been delayed with the remainder coming from the Depreciation, Improvement and Extension account. As to timing of these investments, the capacity charges are already defined for the next three planning seasons so any delay will create more rate increases due to the charges that RMU would incur.

Recommendation:

Approve proceeding with 6 MW Skid Load Generator Phase II Project

Agenda Item #3 Ordinance Authorizing Lease of Property at 8764 South Highway 251

References:

pdf Memo from Airport Manager Daniel Keller (37 KB)

pdf Lease Agreement (89 KB)

pdf Ordinance Authorizing Lease of Property (69 KB)

Recommended Action:

Consider an Ordinance Authorizing Lease of Property at 8764 South Highway 251

History and Fact:

In 2009 the City Council authorized staff to move forward with the purchase of a 0.52 acre parcel of property, including a residential dwelling, located north of the airport at 8764 South Highway 251. This parcel was identified in the Airport Layout Plan as property the City needed to either purchase or acquire an avigation easement over in order to extend the runway to 5,000 feet. The property was subsequently purchased in December of 2009 and has since been annexed into the City with a zoning classification of I-2.

Discussion:

In the past City staff members have rented the residential dwelling on a month to month basis. Attorney Cooper has advised that, per statute, the City Council may authorize a municipal officer to sign leases with a term of less than two years. The proposed ordinance would allow the City Manager to sign a new lease and future leases for this property.

The City has negotiated a month to month lease beginning on November 1st with a monthly rental payment of $650. In addition the lease specifies that the tenants will pay all utilities including gas, electricity, telephone, water, sewer and garbage pickup.

Recommendation:

Approve an Ordinance Authorizing Lease of Property at 8764 South Highway 251

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

o Appointment of Daniel Carmichael to the Utility Advisory Board for a term to expire July 1, 2016
o Appointment of Joseph Orlikowski to the Utility Advisory Board for a term to expire July 1, 2018

• Council Members

• Employee Introduction – pdf Andrew Rogde (127 KB)

• Financial Statement  pdf August 2015 (788 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 28, 2015 (66 KB)

b) Approve Bills – pdf 09/18/15-09/23/15 (96 KB) ,  pdf 09/24/15-10/01/15 (90 KB)

c) Approve Payroll –  pdf 09/14/15-09/27/15 (52 KB)

2) Sale of Used Centrifuges

3) SCADA Upgrade

4) Relay Replacement – Twombly Substation

5) Relay Testing – Distribution and Generation Systems

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Sale of Used Centrifuges

References:

pdf Memo from Water/Water Reclamation Superintendent Adam Lanning (94 KB)

pdf Ordinance Authorizing Sale of Used Centrifuges (84 KB)

Recommended Action:

Consider an Ordinance Authorizing Sale of Used Centrifuges

History and Fact:

In May of 2014 the City Council accepted a bid of $1,794,000 from Boller Construction Company to replace three centrifuges at the Water Reclamation Plant. The three units were approximately 30 years old and at the end of the expected life cycle.

Discussion:

The dewatering equipment upgrade is now complete at the plant and the three Sharples PM 38000 centrifuges are of no use to the facility. City staff estimates a scrap value of $6,000 for the three units and advertised the units on a bidding website for one month with no response. Superintendent Lanning received an offer from Ecopac Equipment Inc. of $12,500, which includes pick up of the equipment in “as is” condition with no warranty. Therefore, his recommendation is to authorize the sale of the units in an amount not less than $12,500.

Per State Statute, the Mayor and Council can authorize the sale of property which is no longer necessary or useful. This is accomplished by a simple majority vote of the City Council.

Recommendation:

Approve an Ordinance Authorizing Sale of Used Centrifuges

Agenda Item #3 SCADA System Upgrades

References:

pdf Memo from Electric Operations Superintendent Jason Bird (85 KB)

pdf Proposal from OSI (52 KB)

Recommended Action:

Consider the quote from OSI in the amount of $83,976 for upgrades to the SCADA system.

History and Fact:

Rochelle Municipal Utilities (RMU) Electric Operations has been using OSI for its Supervisory Control and Data Acquisition (SCADA) system which provides control and monitoring of remote equipment. This system is essential to the operation of the electric distribution system and must be upgraded periodically due to advancements in equipment and growth of RMU’s grid.

The last upgrade to the SCADA system was done five years ago and another upgrade is necessary at this time. The proposed upgrade will allow RMU to meet the new requirements resulting from the complete integration with PJM. In addition, the upgrade will allow RMU to take full advantage of the improvements in meter technology and provide better distribution system monitoring for increased reliability and reduced restoration times.

Discussion:

OSI has provided a quote of $83,976 for the SCADA system upgrade which includes additional work on remote breaker control.

Funds for this project are included in the 2015/16 Electric Fund Capital Outlay Budget.

Recommendation:

Authorize the City Manager to sign the purchase order for OSI in the amount of $83,976 for upgrades to the SCADA system.

Agenda Item #4 Relay Replacement – Twombly Substation

References:

pdf Memo from Electric Operations Superintendent Jason Bird (97 KB)

pdf Proposal from BHMG Engineers and Service Corp. (87 KB)

Recommended Action:

Consider proposal for relay replacement at Twombly Substation

History and Fact:

Rochelle Municipal Utilities (RMU) recently had BHMG Engineers and Service Corp perform an inspection of the protection relays at the Twombly Substation. The existing distribution and transformer relays being used are ABB series. This particular model of relay was discontinued by ABB about ten years ago and has now become obsolete since replacement parts are no longer being manufactured.

Discussion:

BHMG has provided a proposal to replace the ABB relays with new SEL feeder and transformer relays. In addition, BHMG proposed adding in an additional communications processor just for the distribution side of the system. This would separate the communication of the 138kV system and the distribution system at Twombly and provide better security. This would also allow for data stacking on the distribution side going to SCADA for optimal data collection.

The benefits of replacing the existing relays now are better reliability for the distribution system, being able to bring back additional data to our SCADA system and getting better fault data analysis to determine the root cause of an outage. Also there will be better protection coordination between the substation and distribution reclosers in the system. Both controllers would be SEL and therefore the protection curves between the two devices could be the same without the possibility of any overlap causing a nuisance trip.

OSI, our SCADA software supplier, will also need to be involved once the relays have been changed out. They will need to upgrade the SCADA screens at Twombly in order to allow for additional data that will be available.

The funding for this project is available due to a transmission line rebuild which was budgeted and will be delayed until a future budget year. The 2015/16 Electric Fund Capital Outlay Summary includes $2,460,000 for that project.

Recommendation:

Approve the proposal from BHMG Engineers and Service Corp. for replacement of relays at the Twombly Substation at an estimated cost of $106,283.

Agenda Item #5 Relay Testing - Distribution and Generation Systems

References:

pdf Memo from Electric Operations Superintendent Jason Bird (39 KB)

pdf Proposal from BHMG Engineers and Service Corp. (127 KB)

Recommended Action:

Consider proposal for relay testing

History and Fact:

It is recommended that electromechanical relays be tested every 2-5 years and solid state/microprocessor relays be tested every 5 years. Currently no records can be found of any of Rochelle Municipal Utilities’ distribution or generation relays being tested. Therefore, RMU staff requested a proposal from BHMG Engineers and Service Corp. for relay testing of both the distribution and generation protection relays.

Discussion:

BHMG has provided a proposal for verification of the programming, setting and testing of approximately 140 relays at an estimated cost of $39,653. This includes approximately 84 generation relays, most of which are electromechanical, and approximately 57 distribution relays which is split between electromechanical and microprocessor based.

Superintendent of Electric Operations Jason Bird recommends proceeding with this testing in order to have a baseline of when relays were tested, including test reports.

The funding for this project is available due to a transmission line rebuild which was included in the 2015/16 Electric Fund Capital Outlay Summary and will be delayed.

Recommendation:

Approve the proposal from BHMG Engineers and Service Corp. for programming and testing distribution and generation relays at an estimated cost of $39,653.

City of Rochelle Council Chambers 

420 N 6th Street, Rochelle, IL  61068

The Rochelle City Council will meet as a Committee of the Whole on Monday, October 5, 2015 at 6:00 pm for a strategic planning exercise. The meeting will be held in Council Chambers at 420 N 6th Street, Rochelle.

The meeting is open to the public.

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 4-10, 2015 (64 KB)

• Public Power Week – pdf October 4-10, 2015 (51 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 September 14, 2015 (166 KB)

b) Approve Bills – pdf 08/28/15-09/03/15 (76 KB) , pdf 09/04/15-09/10/15 (81 KB) , pdf 09/11/15-09/17/15 (91 KB)

c) Approve Payroll – pdf 08/31/15-09/13/15 (49 KB)

d) Accept and Place on File Minutes of Rochelle Airport Advisory Board – pdf July 27, 2015 (204 KB)

2) System 1 Sanitary Sewer Replacement

3) Renaming the Rochelle Railroad Park as the Ken Wise Rochelle Railroad Park

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

ADJOURNMENT

Agenda Item #2 System 1 Sanitary Sewer Replacement

References:

pdf Memo from Water/Water Reclamation Superintendent Adam Lanning (245 KB)

Recommended Action:

Consider bids for System 1 Sanitary Sewer Replacement

History and Fact:

The System 1 sanitary sewer is a 24” diameter line that begins at the System 1 lift station, located at the south end of the Water Reclamation Plant, and runs along Veteran’s Parkway to South Main. This sewer line is over 55 years old and needs to be replaced due to excessive corrosion. The line primarily serves Hormel Foods so its waste can be pretreated in the anaerobic lagoon at the Water Reclamation Plant. In addition, it receives flow from the Cleveland lift station and the Caron Road lift station. On average this sanitary sewer line handles 825,000 gallons of flow per day.

Discussion:

Subsequent to the required public notice, the City Clerk opened six bids for the System 1 Sanitary Sewer Replacement project on September 2nd. The project base bid includes the construction of approximately 3,291 feet of 24” diameter sanitary sewer from Veteran’s Parkway to the first manhole along South Main. The alternate bid includes the replacement of the sanitary sewer included in the base bid plus an additional 1,400 feet along South Main. Superintendent Adam Lanning has reviewed the bids and recommends the acceptance of the alternate bid of $941,241.65 from Civil Constructors.

The 2015-16 Capital Outlay Budget for the Water Reclamation Department includes $585,000 for the System 1 Sanitary Sewer Replacement Project. In addition, $500,000 was budgeted for upgrades to the treatment plant for nutrient removal which can be delayed to help cover the cost of this project. Funds for the remaining project cost, including engineering, are available through the water reclamation equipment replacement fund which has approximately $2.2 million available.

Recommendation:

Approve the alternate bid from Civil Constructors in the amount of $941,241.65 and reject all other bids.

Agenda Item #3 Renaming the Rochelle Railroad Park as the Ken Wise Rochelle Railroad Park

References:

pdf Request from the Greater Rochelle Economic Development Corporation Board (18 KB)

pdf Resolution Renaming the Rochelle Railroad Park as the Ken Wise Rochelle Railroad Park (126 KB)

Recommended Action:

Consider an Ordinance Renaming the Rochelle Railroad Park as the Ken Wise Rochelle Railroad Park

History and Fact:

The City of Rochelle owns and operates the Rochelle Railroad Park located at 124 North 9th Street. The facility was established in 1998 based on Ken Wise’s idea from his observation that people from all over the country would come to the area to watch and photograph trains. Since its inception the Rochelle Railroad Park, the first of its kind in the nation, has drawn thousands of visitors to our community to safely and conveniently watch Union Pacific and Burlington Northern Santa Fe trains cross at the diamond.

Discussion:

In recognition of Ken’s dedication and service to the City of Rochelle as the former director of the Greater Rochelle Economic Development Corporation, the GREDCO board has requested that the City rename the railroad park in honor of Ken Wise. The proposed ordinance authorizes the renaming of the Rochelle Railroad Park as the Ken Wise Rochelle Railroad Park.

Recommendation:

Approve an Ordinance Renaming the Rochelle Railroad Park as the Ken Wise Rochelle Railroad Park