City of Rochelle Council Chambers 

420 North 6th Street, Rochelle, IL  61068

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

• pdf Constitution Week – September 17- 23, 2015 (59 KB)

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

V. PUBLIC COMMENTARY:

• Project First Rate

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting –  pdf August 24, 2015 (85 KB)

b) Approve Bills – pdf 08/14/15-08/20/15 (113 KB) ,  pdf 08/21/15-08/27/15 (80 KB)

c) Approve Payroll – pdf 08/03/15-08/16/15 (49 KB) ,  pdf 08/17/15-08/30/15 (52 KB)

d) Accept and Place on File Minutes of Police and Fire Commission –  pdf June 9, 2015 (186 KB)

e) Authorize the Rochelle Lions Club Annual Candy Sale as Requested –  pdf October 2, 2015 (94 KB)

2) Rochelle Fire Department Roof Replacement

3) Rochelle Fire Department HVAC Improvements

4) Proposal to Modify Switchgear Buses 5 and 6 – Caron Road Substation

5) Resolution Modifying Electric Rate Schedule and the General Service Application for Utility Services for Mighty Vine

6) Agreement to Defer Utilities Extension - Haywell, LLC

7) Resolutions for Improvement by Municipality – Route 38 and Lincoln Highway Pedestrian Improvements

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX.  ADJOURNMENT

Agenda Item #2 Rochelle Fire Department Roof Replacement

References:

pdf Letter of Recommendation from Fehr Graham (517 KB)

Recommended Action:

Consider bids for the Rochelle Fire Department Roof Replacement

History and Fact:

The existing roof membrane is approximately 25 years old and leaking in several locations. The Department has made several repairs over the past few years but the leaks are often difficult to locate. By the time they are located and repaired, interior repair is often needed. This project includes the replacement of the roof membrane and insulation.

Discussion:

Subsequent to the required public notice, the City Clerk opened two bids for the project on September 3rd. Staff and our consultant, Brandy Williams of Fehr Graham, have reviewed the bids and recommend the acceptance of the low bid from Sterling Commercial Roofing, Inc. in the amount of $114,650.

The 2015-16 Capital Outlay Budget for the Fire Department includes $73,500 to replace the roof. Fehr Graham will review the project and make recommendations on changes to bring the total cost of the work completed more in line with the budgeted amount. In addition, a back-up generator, budgeted at $43,000, can be delayed to offset the higher than expected cost of this project.

Recommendation:

Accept the bid for the Rochelle Fire Department Roof Replacement from Sterling Commercial Roofing for $114,650 and reject all other bids.

Agenda Item #3 Rochelle Fire Department HVAC Improvements

References:

pdf Letter of Recommendation from Fehr Graham (513 KB)

Recommended Action:

Consider bids for the Rochelle Fire Department HVAC Improvements

History and Fact:

The existing heating, ventilation, and air conditioning (HVAC) system for the living quarters at the Fire Department is at the end of its useful life. It is assumed that it was installed during the original construction of the building. In addition, the system is under sized for certain locations and not zoned to regulate any area. The HVAC Improvements Project consists of the installation of two new furnaces, two new AC units, and three radiant heating tubes in the apparatus bay.

Discussion:

Subsequent to the required public notice, the City Clerk opened two complete bids on September 3rd. Staff and our consultant, Brandy Williams of Fehr Graham, have reviewed the bids and recommend the acceptance of the alternate bid from Anderson Plumbing and Heating, Inc. in the amount of $35,290. The alternate bid includes higher efficiency air conditioning units which are expected to provide energy cost savings in excess of the additional cost.

The 2015-16 Capital Outlay Budget for the Fire Department includes $26,000 for HVAC Improvements.

Recommendation:

Accept the bid for the Rochelle Fire Department HVAC Improvements from Anderson Plumbing and Heating, Inc. in the amount of $35,290 and reject all other bids.

Agenda Item #4 Proposal to Modify Switchgear Buses 5 and 6 – Caron Road Substation

References:

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

pdf Recommendation from Sargent & Lundy (1.84 MB)

Recommended Action:

Consider a proposal from Siemens for the addition of 15kV medium voltage vacuum type breakers to existing switchgear buses 5 and 6

History and Fact:

The Caron Road Substation was originally built in 1970 and, due to the industrial growth in the area, is currently down to one available feeder/circuit. Over the past year the Mayor and Council have approved several agreements and equipment purchases to facilitate the expansion of this substation.

Discussion:

RMU’s consultant, Sargent and Lundy, requested a proposal from Siemens to provide the material and services to convert two spare cubicles in the existing 15kV medium voltage switchgear to vacuum type breakers. This modification will reduce future bus outage durations, improve long-term maintenance requirements and improve RMU’s distribution reliability at the Caron Road facility. In addition, this upgrade will provide a safer work environment for RMU employees.

Since Siemens is the original manufacturer of the Bus 5 and Bus 6 switchgear, it makes sense for them to provide the material necessary for the conversion. In addition, Siemens technicians can provide an efficient installation of the breakers and will perform the testing necessary to verify proper installation.
Therefore, Electric Operations Superintendent Jason Bird recommends that the council accept the proposal from Siemens in the amount of $71,302 for material and $44,845 for installation and forego formal bidding.

The Caron Road Substation Expansion Project is currently under budget and this additional cost should be able to be absorbed into the project without going over.

Recommendation:

Approve a proposal from Siemens for the addition of two 15kV medium voltage vacuum type breakers to existing switchgear buses 5 and 6 at the Caron Road Substation in the amount of $71,302 for material and $44,845 for installation.

Agenda Item #5 Resolution Modifying Electric Rate Schedule and the General Service Application for Utility Services for Mighty Vine

References:

pdf Memo from Business and Financial Analyst Dan Westin (83 KB)

pdf Incentive Letter from City Manager David Plyman (31 KB)

pdf General Service Application for Utility Services (313 KB)

pdf Resolution Modifying Electric Rate Schedule (147 KB)

Recommended Action:

Consider Approving a Resolution Modifying Electric Rate Schedule and approving the General Service Application for Utility Services for Mighty Vine

History and Fact:

Mighty Vine is the first hydroponic project in Rochelle, hopefully to be followed by many more. Hydroponic facilities have a unique user profile which is beneficial for electric utilities given its use of natural light during the summer season and electric power for lights at night during the winter. This profile benefits an electric utility’s demand profile overall.

Discussion:

For this Standard Industrial Classification, RMU has, in concert with its rate consultant, created Rate 167. The proposed rate was developed incorporating a three year, ten percent discount to provide incentive for the construction of future phases. RMU has provided incentives in the past to attract industrial development, and this project is important because it will be consuming large amounts of off-peak power and little power during on-peak hours.

The Mighty Vine greenhouse is a Dutch-designed facility. RMU accommodated the project by providing special-order transformers that are common in Europe, but are not standard in the U.S. The voltage produced by these transformers is different than what RMU typically would use. Since RMU does not normally have these types of transformers in its inventory, the customer is purchasing the backup transformer and donating it to RMU. It will be placed in reserve at the greenhouse to eliminate any confusion in our equipment yard and to expedite placing it in service when it becomes necessary. The proposed agreement also provides that RMU will cover $266,341 of additional electrical equipment expense because of the integration of the Dutch-designed facility into our system. However, the customer will reimburse RMU over four years at an interest rate of 3.9% for this additional equipment.

Recommendation:

Approve a Resolution Modifying Electric Rate Schedule effective October 1, 2015. Approve the General Service Application for Utility Services for Mighty Vine.

Agenda Item #6 Agreement to Defer Utilities Extension – Haywell, LLC

References:

pdf Agreement to Defer Utilities Extension (84 KB)

pdf Ordinance Approving Agreement to Defer Utilities Extension (Hayden Unit 1) (61 KB)

Recommended Action:

Consider an Ordinance Approving Agreement to Defer Utilities Extension (Hayden Unit 1)

History and Fact:

On August 11, 2014 the City Council authorized an ordinance amending the boundaries of the B-2 and PUD-R zoning districts and approving a variance to the front yard setback at 1800 20th Street. This was done at the request of petitioners Tim and Geri Hayden so that they could construct two 40 by 240 foot enclosed storage buildings on a 1.67 acre lot.

This lot is subject to the terms of an annexation agreement between the City and AKCK, LLC as assignee and transferee of Squires Landing, covering a 150 acre tract of land. The annexation agreement includes a provision that the ordinances in effect as of the date of the agreement shall continue in effect with respect to the development of the entire tract. These ordinances require the developer to extend water and sewer mains to the property line of the premise to be served and to post security for the construction of public improvements.

Discussion:

Haywell, LLC is the owner of the 1.67 acre lot known as Lot 1 in Hayden Addition Unit 1. This lot includes 350 feet of frontage along 20th Street that contains easements for utilities, water and gas. Since the present use of the property does not require water or sewer and the adjacent properties are undeveloped, the developer has requested that the City defer the obligation to extend water and sewer along the frontage at this time. In addition, the developer has requested that the City waive the obligation to maintain security. Per the proposed agreement, Haywell’s obligation would remain deferred until adjacent property on the south and north require extension of the water main and sewer main along the frontage of the property. At such time Haywell would extend the water and sewer mains at its sole cost.

Recommendation:

Authorize an Ordinance Approving Agreement to Defer Utilities Extension (Hayden Unit 1)

Agenda Item #7 Resolutions for Improvement by Municipality – Route 38 and Lincoln Highway Pedestrian Improvements

References:

pdf Memo from City Engineer Sam Tesreau (90 KB)

pdf Resolution for Improvement by Municipality Under the Illinois Highway Code – Pedestrian Signals (89 KB)

pdf Resolution for Improvement by Municipality Under the Illinois Highway Code – Sidewalk and Pavement (90 KB)

Recommended Action:

Consider Resolutions for Improvement by Municipality Under the Illinois Highway Code

History and Fact:

The installation of pedestrian signals and sidewalk ramp upgrades at Illinois Route 38 and Lincoln Highway has been a part of the long term capital improvements plan for a couple of years. On July 13th the City Council approved bids from Williams Charles Electric for the pedestrian signals in the amount of $46,270.50 and O’Brien Civil Work, Inc. for the sidewalk and pavement portion in the amount of $52,400.65.

Discussion:

In order to utilize Motor Fuel Tax (MFT) funds, the Illinois Department of Transportation requires that the municipality approve a resolution to document the expenditure and appropriate the funds.

Recommendation:

Approve a Resolution for Improvement by Municipality Under the Illinois Highway Code to appropriate funds for the pedestrian signal portion of the Route 38 and Lincoln Highway Pedestrian Improvements
Approve a Resolution for Improvement by Municipality Under the Illinois Highway Code to appropriate funds for the sidewalk and pavement portion of the Route 38 and Lincoln Highway Pedestrian Improvements

City of Rochelle Council Chambers

420 North 6th Street, Rochelle, IL  61068

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

• Financials – pdf July 2015 (793 KB)

• Employee Introduction – pdf Jason Bird (128 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 10, 2015 (106 KB)

b) Approve Bills – pdf 073115-080615 (90 KB) , pdf 080715-081315 (93 KB)

c) Approve Payroll – pdf 072015-080215 (51 KB)

d) Authorize Closure of Sidewalk and Adjacent Parking Corner of Cherry Avenue and Main Street – pdf August 29, 2015 (12 KB)

2) CDAP Grant 12-241002 (Public Hearing & Action)

3) Downtown & Southern Gateway Tax Increment Financing District

4) Resolution for Improvement by Municipality - Jack Dame Road Overpass

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item 2 Public Hearing – CDAP Grant 12-241002

References:

pdf Notice of Public Hearing (122 KB)

pdf Memo from Ellen Burgeson, Grant Administrator (74 KB)

Recommended Action:

Open the Public Hearing related to CDAP Grant 12-241002

History and Fact:

The City of Rochelle received a grant through the Community Development Assistance Program (CDAP) for $750,000. This grant, #12-241002, provided funding to assist in the construction of a dedicated feeder line to transmit electrical power to the Nippon Sharyo Manufacturing Shop 3 facility.

Discussion:

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

Recommendation:

Close the Public Hearing related to CDAP Grant 12-241002

Agenda Item 3 Downtown & Southern Gateway Tax Increment Financing (TIF) District

References:

pdf Redevelopment Plan and Program (4.48 MB)

pdf Rochelle TIF Map North and South (1 MB)

pdf Ordinance Authorizing Interested Parties Registry (231 KB)

pdf Ordinance to Establish Date for Public Hearing, Joint Review Board, and Public (Community) Meeting (567 KB)

Recommended Action:

Consider an Ordinance Authorizing the Establishment of a Tax Increment Financing “Interested Parties Registry

Consider an Ordinance to Establish Date for Public Hearing, Joint Review Board, and Public (Community) Meeting

History and Fact:

Rochelle native Mike McCarty, through his MTI Corporation, has plans to redevelop the Hub Theater as a performing arts center and the Graber Building as a retail/office building. On June 8th the Mayor and Council approved a Development Agreement with MTI, Inc. to facilitate the redevelopment of the two buildings in the downtown. Per the Development Agreement the City will pursue the formation of a TIF District, to include these properties, and reimburse MTI up to 20% of TIF-eligible costs for purchase and renovation of the Hub Theater and up to 10% of TIF-eligible costs for purchase and renovation of the Graber building. The City Council also approved an Inducement Resolution on June 8th as the first step in the process of establishing a TIF District.

Discussion:

Mr. McCarty purchased the Hub Theater and Graber Building on July 16th. Since then he has obtained permits for interior demolition at both facilities, had new awnings installed on the theater, had the boards removed that covered the windows on the Graber building and obtained several contractor quotes for initial repairs.

In order to meet our commitment of pursuing a TIF District, City staff members have been working with our consultant, Teska and Associates, to develop a TIF Redevelopment Plan and Program which contains an Eligibility Study, Housing Impact Study. Kon Savoy, Principal at Teska and Associates, will provide a brief overview at the meeting of the key findings, recommendations, and process, and respond to any questions the Mayor and Council may have.

Following the presentation and discussion it is staff’s recommendation that the next steps in the TIF process be acted upon. These include the establishment of an Interested Parties Registry and a date for the Public Hearing, Joint Review Board, and Public (Community) Meeting for the Downtown & Southern Gateway TIF District.

Recommendation:

Approve an Ordinance Authorizing the Establishment of a Tax Increment Financing (TIF) “Interested Parties Registry”

Approve an Ordinance to Establish Date for Public Hearing, Joint Review Board, and Public (Community) Meeting for the Downtown & Southern Gateway TIF District

Agenda Item 4 Resolution for Improvement by Municipality – Jack Dame Road Overpass

References:

pdf Memo from City Engineer Sam Tesreau (46 KB)

pdf Resolution for Improvement by Municipality Under the Illinois Highway Code (90 KB)

Recommended Action:

Consider Resolution for Improvement by Municipality Under the Illinois Highway Code

History and Fact:

On June 22nd the City Council approved an amendment to the Preliminary Engineering services agreement for phase 1 of the Jack Dame Road Overpass project as well as a Supplement to the Federal Participation Agreement for associated federal funds capped at $245,000. The amount of engineering fees approved or committed to be expended on the project from March 2011 to date is approximately $325,000.

Discussion:

In order to utilize Motor Fuel Tax (MFT) funds, the Illinois Department of Transportation requires that the municipality approve a resolution to document the expenditure and appropriate the funds. Expenses over and above the portion covered by the Federal Participation Agreement will be the responsibility of the City through its allotted MFT funds. In addition, there will likely be future engineering phases as the project progresses and this resolution will cover a portion of those costs.

Recommendation:

Approve a Resolution for Improvement by Municipality Under the Illinois Highway Code to appropriate funds for the Jack Dame Road Overpass Project

City of Rochelle Council Chambers

420 North 6th Street, Rochelle, IL  61068

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

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 July 27, 2015 (89 KB)

b) Accept and Place on File Minutes of Airport Advisory Board –  pdf May 26, 2015 (206 KB)

c) Accept and Place on File Minutes of Planning & Zoning Commission – pdf July 6 (137 KB)  &  pdf July 27, 2015 (70 KB)

d) Approve Bills – pdf 071715-072315 (99 KB) , pdf 072415-073015 (137 KB)

e) Approve Payroll –  pdf 070615-071915 (52 KB)

f) Authorize Rochelle Township High School Homecoming Parade –    pdf October 1, 2015 (375 KB)

g) Establish Annual Trick-r-Treat Schedule October 31, 2015 from 5:00pm-8:00pm

2) Special Use Permit and Setback Variance for a Solar Farm at the Rochelle Landfill (Public Hearing)

3) Purchase of Street Sweeper – Street Department

4) Professional Construction Services – Quiet Zone Improvements

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

ADJOURNMENT

Agenda Item #2 Special Use Permit and Setback Variance for a Solar Farm at the Rochelle Landfill (Public Hearing)

Recommended Action:

Open and Continue the Public Hearing

History and Fact:

Rochelle Municipal Utilities has petitioned the City for a special use permit to allow for the construction of a solar farm at the Rochelle Landfill and a setback variance. The proposed solar farm will be located on the south side of the landfill, parallel to Creston Road, at the top of the berm with panels facing to the south. The farm will consist of two rows of panels, each 2,700 feet long north of Creston Road and will be surrounded by a fence.

This solar farm will enable Rochelle Municipal Utilities to continue to diversify its energy sources.

Discussion:

The Planning and Zoning Commission held a public hearing to review the petition at its meeting on August 3rd. Following some discussion, the Planning and Zoning Commission recommended approval of the special use permit and setback variance as requested by a vote of 6-0. However, the commission suggested that additional research be done on the landscaping requirements at the landfill prior to the council vote. Therefore, staff recommends that the City Council open the public hearing as published and continue the topic to the August 24th council meeting so that additional information can be gathered.

Recommendation:

Open and continue the public hearing to the August 24, 2015 Rochelle City Council meeting.

Agenda Item #3 Purchase of Street Sweeper – Street Department

References:

pdf Memo from Streets and Cemetery Superintendent Tim Isley (87 KB)

Recommended Action:

Consider the purchase of a 2015 street sweeper for the Street Department

History and Fact:

Over the past year, the Street Department has tested several different street sweeper models in order to determine the best option to replace the existing 2005 Elgin Pelican street sweeper. Staff has concluded that the Elgin Pelican remains the best option due to its three wheel design which provides excellent maneuverability and a conveyor system that is able to move large debris, sticks and piles of leaves without jamming.

Discussion:

The 2015 Elgin Pelican Street Sweeper is available through the National Joint Power Alliance, through Standard Equipment Company, for $189,955. In addition, Standard Equipment Company will provide a trade in allowance of $14,500 for the 2005 model for a net purchase price of $175,455.

The 2015-16 Solid Waste Capital Outlay Budget includes $195,000 for the purchase of a street sweeper. Elgin has notified staff that the Pelican Street Sweepers will be switching over from the Tier 4 Interim engines to Tier 4 Final engines which will increase the price $8,000 to $10,000. Therefore, Superintendent Isley recommends proceeding with the purchase of the 2015 Elgin Pelican Street Sweeper at this time.

Recommendation:

Approve the purchase of a 2015 street sweeper through the National Joint Powers Alliance in the amount of $189,955, minus a trade in allowance of $14,500 for a net purchase price of $175,455.

Agenda Item #4 Professional Construction Services – Quiet Zone Improvements

References:

pdf Memo from City Engineer Sam Tesreau (46 KB)

pdf Proposal for Professional Construction Services (80 KB)

Recommended Action:

Consider a proposal from Fehr Graham for professional construction services associated with the Quiet Zone Improvements

History and Fact:

On July 13th the Mayor and Council approved a bid from Martin and Company for Quiet Zone improvements which include concrete raised medians, centerline delineators, grading and excavation, concrete curb and gutter, hot-mix asphalt pavement, concrete sidewalk, storm sewer and drainage inlets, pavement markings, signage and restoration. These improvements, along with the installation of four-quadrant flashers and gates by the BNSF Railway at 15th Street, will allow the City to establish a Quiet Zone and mitigate the train noise.

During the July 13th council meeting City Engineer Sam Tesreau stated that an engineering services agreement would also be forthcoming for the construction portion of the project. Construction on the Quiet Zone Improvements is expected to begin in late August with substantial completion by the end of November.

Discussion:

City staff requested a proposal from Fehr Graham for professional construction services. The proposed scope of services includes construction observation, contract management and coordination of the Notice of Establishment to the FRA. The fee for the Construction Engineering services is for a not to exceed amount of $75,000. In addition, the final Notice of Establishment services will be completed at a not to exceed amount of $6,500.

City Engineer Sam Tesreau recommends approval of the Construction Engineering services agreement so that the Quiet Zone Improvements can move forward.

The Quiet Zone Improvement project is being funded through General Obligation Debt Certificates issued on July 7th for $2,000,000.

Recommendation:

Approve the proposal from Fehr Graham for professional construction services associated with the Quiet Zone Improvements

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 May 2015 (767 KB)

pdf June 2015 (777 KB)

• Employee Introduction –  pdf Kyle Buch (62 KB)                                     

  pdf Emanuel (Manny) Escatel (61 KB)

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf July 13, 2015 (147 KB)

b) Approve Bills – pdf 070315-070915 (92 KB) , pdf 071015-071615 (91 KB)

c) Approve Payroll – pdf 062215-070515 (48 KB)

2) Ordinance Amending Section 110-291 to Allow for Commercial Greenhouses as a Permitted Use in the I-2 Zoning District (Public Hearing and Action)

3) Rochelle Community Hospital Alley and Utility Easement Vacation (Public Hearing and Action)

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Ordinance Amending Section 110-291 to Allow for Commercial Greenhouses as a Permitted Use in the I-2 Zoning District (Public Hearing and Action)

References:

pdf Memo from Building Inspector Kip Countryman (18 KB)

pdf Ordinance Amending Section 110-291 to Allow for Commercial Greenhouses as a Permitted Use in the I-2 Zoning District (75 KB)

Recommended Action:

Consider an Ordinance Amending Section 110-291 to Allow for Commercial Greenhouses as a Permitted Use in the I-2 Zoning District

History and Fact:

The Rochelle Municipal Code currently allows commercial greenhouses in the I-1, Light Industry, zoning district, and with a special use permit in the B-1 and B-2 Districts.

On March 9th the Mayor and Council approved the issuance of a special use permit for CG Greenhouse to construct a commercial greenhouse in the Centerpoint Intermodal Center. This property is zoned I-2, General Industry.

Discussion:

The City is currently working on another development, Project Green, which would add a second commercial greenhouse in the I-2 Zoning District. Staff feels that the I-2 district is well suited for this use because of the size of the developments proposed, truck traffic associated with the use and the infrastructure required.

The Planning and Zoning Commission held a public hearing to review the District Use Classification in Chapter 110-291 at its meeting on July 6th. Following some discussion the Planning and Zoning Commission, by a vote of 6-0, recommended that the City Council amend the Rochelle Municipal Code to allow commercial greenhouses as a permitted use within the I-2 Zoning District.

Recommendation:

Authorize an Ordinance Amending Section 110-291 to Allow for Commercial Greenhouses as a Permitted Use in the I-2 Zoning District

Agenda Item #3 Alley and Utility Easement Vacation – Rochelle Community Hospital

References:

pdf Memo from Building Inspector Kip Countryman (65 KB)

pdf Ordinance Vacating an Alley and Utility Easement for Rochelle Community Hospital (394 KB)

Recommended Action:

Consider an Ordinance Vacating an Alley and Utility Easement for Rochelle Community Hospital.

History and Fact:

On May 11th the Mayor and Council approved a preliminary and final plat of subdivision for Rochelle Community Hospital which combined ten properties into one between North 2nd and North 3rd Streets from 8th to 10th Avenue. This was done to facilitate the construction of a new 26,000 square foot medical office building on the hospital’s campus. The preliminary plat noted a utility easement and alley to be vacated on the new lot.

Discussion:

The Planning and Zoning Commission will hold a public hearing on July 27th at 6:00 pm to discuss the vacation of the alley and utility easement. The Commission’s recommendation will be shared at the City Council meeting.

Approval of the proposed ordinance will allow staff to formally file the vacations with Ogle County.

Recommendation:

Approve an Ordinance Vacating an Alley and Utility Easement for Rochelle Community Hospital

City of Rochelle Council Chambers

420 North 6th Street, Rochelle, IL  61068

I. CALL TO ORDER:

• Pledge to the Flag
• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

•  pdf Park and Recreation Month – July 2015 (47 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 June 22, 2015 (245 KB)

b) Accept and Place on File Planning and Zoning Commission Minutes – pdf May 4, 2015 (175 KB)

c) Approve Bills – pdf 061215- 062515 (105 KB) , pdf 062615-070215 (75 KB)

d) Approve Payroll –  pdf 060815-062115 (49 KB)

2) Quiet Zone Improvements

3) Route 38 and Lincoln Highway Pedestrian Signals and Sidewalk Ramp Upgrades

4) Purchase of Compact Excavator – Street and Cemetery Departments

5) Rochelle Community Hospital Sanitary Sewer Relocation Project

6) Above Grade and Below Grade Installation for the Caron Road Substation Expansion Project

7) Security Door Access Equipment and Installation – RMU Generation Facility

8) Transmission System Operator Services Agreement

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Quiet Zone Improvements

References:

pdf Letter of Recommendation from Fehr Graham (49 KB)

Recommended Action:

Consider Quiet Zone Improvement Bids

History and Fact:

The City of Rochelle experiences nearly 100 trains per day traveling through our community on the Union Pacific and BNSF Railway lines. Over the past decade the public has consistently identified train horns as having a negative impact on the quality of life in Rochelle. As a result, the City’s Comprehensive Plan and the City Council’s Strategic Planning Summary both identify the need to eliminate or mitigate the train noise.

The Federal Railroad Administration (FRA) provides the regulatory authority to establish a quiet zone and the City of Rochelle has completed the engineering and feasibility study steps necessary to establish such a zone. By constructing various FRA approved improvements at the at-grade rail crossings within the City of Rochelle, a quiet zone can be established. In March, the City Council approved a Grade Crossing Signal Installation Agreement which provides for the installation of four-quadrant flashers and gates at 15th Street by the BNSF Railway at an estimated cost to the City of $768,651.

Discussion: Subsequent to the required public notice, the City Clerk opened two bids on July 2nd for the remaining Quiet Zone Improvements which include concrete raised medians, centerline delineators, grading and excavation, concrete curb and gutter, hot-mix asphalt pavement, concrete sidewalk, storm sewer and drainage inlets, pavement markings, signage and restoration. Although the bids are considerably higher than the engineer’s estimate, City Engineer Sam Tesreau and our consultant, Fehr Graham, recommend awarding the contract to the low bidder, Martin & Company, in the amount of $889,487.25. Since the project includes re-mobilizing to 10 different locations throughout the City, our consultant attempted to factor this into the individual unit prices on the estimate. Based on a review of the bids, it is apparent that they underestimated the contractor’s cost for mobilizing between the sites.

The Quiet Zone Improvement project is being funded through General Obligation Debt Certificates issued on July 7th for $2,000,000.

Recommendation:

Approve the bid from Martin & Company for the Quiet Zone Improvements in the amount of $889,487.25 and reject all other bids.

Agenda Item #3 Illinois Route 38 and Lincoln Highway Pedestrian Signals and Sidewalk Ramp Upgrades

References:

pdf Memo from City Engineer Sam Tesreau (124 KB)

pdf Memo from Fehr Graham – Traffic Light Section (28 KB)

pdf Bid Tabulation – Traffic Light Section (57 KB)

pdf Memo from Fehr Graham – Sidewalk Section (29 KB)

pdf Bid Tabulation – Sidewalk Section (58 KB)

Recommended Action:

Consider bids for the Illinois Route 38 and Lincoln Highway Pedestrian Signals and Sidewalk Ramp Upgrades

History and Fact:

The installation of pedestrian signals and sidewalk ramp upgrades at Illinois Route 38 and Lincoln Highway has been a part of the long term capital improvements plan for a couple of years. The new pedestrian signals are designed to accommodate pedestrians, users with disabilities and increase the time available to cross the intersection. In addition, the improvements will include new sidewalk ramps and pavement striping to better identify the pedestrian routes when crossing the intersection. Engineering began on the project in late 2013 and the Illinois Department of Transportation (IDOT) approved the project and its funding in September of 2014.
The City solicited bids for the Illinois Route 38 and Lincoln Highway Pedestrian Traffic Signal Upgrade Project last fall and again this spring. In both cases the lowest bid was found to be more than 50% higher than the engineer’s estimate and all bids were subsequently rejected by council.

Discussion:

Following discussions with IDOT, the project was split into two sections, traffic light and sidewalk, in hopes of obtaining more competitive bids. In addition the engineer’s estimate was increased by approximately $92,000.

Subsequent to the required public notice, the Deputy City Clerk opened a single bid for the traffic light section of the project on June 22nd. Although the bid is 12 % higher than the engineer’s estimate, City Engineer Sam Tesreau and our consultant, Fehr Graham, recommend acceptance of the bid from William Charles Electric, LLC in the amount of $46,270.50 since this project has been rebid three times.

The Deputy City Clerk also opened three bids for the sidewalk section of the project. The lowest bid was approximately 5% higher than the engineer’s estimate. Since this project has also been rebid multiple times, City Engineer Sam Tesreau and our consultant, Fehr Graham, recommend acceptance of the bid from O’Brien Civil Works, Inc. in the amount $52,400.65.

These projects will be funded through the Capital Improvements fund which includes a revenue transfer from the Motor Fuel Tax Fund (MFT) for the infrastructure construction and related construction engineering expenses. Other costs for non-eligible items will be paid with local funds.

Recommendation:

Accept the bid from Williams Charles Electric, LLC for the IL Route 38 and Lincoln Highway Signal Modification – Traffic Light Section in the amount of $46,270.50 and reject all other bids.
Accept the bid from O’Brien Civicl Work, Inc. for the IL Route 38 and Lincoln Highway Signal Modification – Sidewalk Section in the amount of $52,400.65 and reject all other bids.

Agenda Item #4 Purchase of Compact Excavator – Street and Cemetery Departments

References:

pdf Memo from Superintendent of Streets & Cemetery Tim Isley (42 KB)

pdf Bid Tabulation (194 KB)

Recommended Action:

Consider bids for the purchase of a compact excavator for the street and cemetery departments.

History and Fact:

The 2015-16 General Fund Budget includes $40,000 in the capital outlay summary for a compact excavator, divided equally between the street and cemetery departments. If approved, this equipment will allow both departments to work in constricted areas which will improve production and reduce costly restoration work.

Discussion:

Subsequent to the required public notice, the City Clerk opened six bids from equipment suppliers on July 2nd. Superintendent of Streets & Cemetery Tim Isley reviewed the bids and recommends the acceptance of the lowest responsible bid from CSR Bobcat in the amount of $53,300, minus $10,500 for the trade in of a 1987 front end wheel loader for a total cost of $42,800.

Although the recommendation is over budget by $2,800, Superintendent Isley plans to adjust or delay other purchases in these departments to offset the increase.

Recommendation:

Approve the bid from CSR Bobcat in the amount of $42,800 and reject all other bids.

Agenda Item #5 Rochelle Community Hospital Sanitary Sewer Relocation Project

References:

pdf Memo from Water/Water Reclamation Superintendent Adam Lanning (263 KB)

Recommended Action:

Consider bids for the Rochelle Community Hospital Sanitary Sewer Relocation Project

History and Fact:

Rochelle Community Hospital plans to expand its current facility to the south with the construction of a new 26,000 square foot medical office building. This new building will be constructed over an existing Rochelle Municipal Utility (RMU) sewer line. Therefore, the sewer line must be relocated so that RMU can maintain access to the line.

In March the Mayor and Council approved an engineering proposal with Willett Hofmann & Associates for the design and construction observation of a sewer main relocation project. The sewer improvements to be constructed on the hospital property include the construction of a twelve inch sanitary sewer from the current sewer terminus along the western line of the hospital’s property, north within the North 3rd Street right-of-way, to the sewer located within the West 10th Avenue right-of-way.

Discussion:

Subsequent to the required public notice, the City Clerk opened four bids for the sanitary sewer relocation project on June 30th. Although the bids are higher than the engineer’s estimate of $258,060, Water/Water Reclamation Superintendent Adam Lanning recommends awarding the contract to the low bidder, Martin & Company, in the amount of $309,102.64 in order accommodate the hospital’s construction schedule. The main reasons for the higher bids are an increase in the price of pipe and construction costs due to the busy schedule of contractors this summer.

Although this project was not budgeted, the Redevelopment Agreement approved on April 13th between the City and Rochelle Community Hospital includes a provision for the hospital to fund the improvements up to and beyond $228,000, including engineering costs. Certain expenses related to the upsizing of pipes and potentially storm sewer will be borne by the City.

Recommendation:

Approve the bid from Martin & Company Excavating in the amount of $309,102.64 and reject all other bids.

Agenda Item #6 Above Grade and Below Grade Installation for the Caron Road Substation Expansion Project

References:

pdf Letter of Recommendation from Sargent and Lundy (3.56 MB)

Recommended Action:

Consider Above Grade and Below Grade Installation for the Caron Road Substation Expansion

History and Fact:

The Caron Road Substation was originally built in 1970 and later expanded in 1985 and 2005. Due to the industrial growth over the past several years, the substation is down to only one available feeder/circuit. As a result, the Mayor and Council approved an Engineering Services Agreement on November 24, 2014 with Sargent & Lundy for the expansion of the substation. Earlier this year the City Council approved the purchase of a circuit breaker, disconnect switches, instrument transformers and switchgear for this project.

Discussion:

Subsequent to the required public notice, the City Clerk opened three bids on July 7th for above grade and below grade installation required for the substation expansion. Assistant Superintendent of Electric Operations and our consultant, Sargent & Lundy, have reviewed the bids and recommend acceptance of the bid from Michels Power in the amount of $998,449.70. This bid is below the engineer’s estimate and includes an alternate route proposed by Michels Power which reduces the lump sum price, even considering an increase in material costs for RMU, by over $78,000.

The Caron Road Substation Expansion project is being funded through Electric Revenue System Bonds issued last year.

Recommendation:

Award the bid for the Above Grade and Below Grade Installation Bids for the Caron Road Substation Expansion to Michels Power in the amount of $998,449.70

Agenda Item #7 Security Door Access Equipment and Installation – RMU Generation Facility

References:

pdf Memo from Business and Financial Analyst Dan Westin (122 KB)

pdf Quote from Rock River Service Company (176 KB)

Recommended Action:

Consider the purchase of a security door access equipment and installation at the RMU Generation facility

History and Fact:

Rochelle Municipal Utilities (RMU) has engaged with PJM for a full integration of RMU’s electrical transmission system into the regional transmission operations. This integration requires a higher degree of control room security to meet North American Electric Reliability Corporation (NERC) /Reliability First and PJM requirements.

The Federal Energy Regulatory Commission approved the RMU transmission tariff on June 23rd . This tariff is expected to be effective August 1st and will include the ongoing update of the tariff on a yearly basis.

Discussion:

Since the project is on a tight schedule and this type of equipment and installation expertise is fairly unique, Business and Financial Analyst Dan Westin recommends that the council accept the quote from Rock River Service Company of $21,049 and forego formal bidding of the equipment.

The tariff cost basis includes expenses incurred for provisioning the transmission system so this improvement in control room security is covered by the tariff calculations.

Recommendation:

Approve the purchase of security door access equipment and installation at the RMU Generation facility from Rock River Service in the amount of $21,049.

Agenda Item #8 Transmission System Operator Services Agreement

References:

pdf Memo from Business and Financial Analyst Dan Westin (121 KB)

pdf Press Release – FERC Order on Transmission Tariff (79 KB)

pdf Transmission System Operator and Services Agreement (512 KB)

Recommended Action:

Consider a Transmission System Operator Services Agreement

History and Fact:

As stated in the previous agenda item, Rochelle Municipal Utilities (RMU) has engaged with PJM for a full integration of RMU’s electrical transmission system into the regional transmission operations. This integration requires a control center that is a “Transmission Operator” control center with personnel that are certified by the Northern American Electric Reliability Corporation (NERC) and PJM to meet NERC/Reliability First and PJM requirements.

The Federal Energy Regulatory Commission approved the RMU transmission tariff in June and the tariff is expected to be effective August 1st.

The tariff cost basis includes the costs incurred for provisioning the transmission system so this control center service is covered by the tariff calculations.

Discussion:

RMU generation plant personnel are being trained in Transmission Operations procedures and will be supported fully in achieving this certification. Approval of this agreement provides a ramp-up for them to have a solid operation in place for full reliability management of Rochelle’s role in the Bulk Electrical System.

Recommendation:

Authorize the City Manager to sign a Transmission System Operator Services Agreement between Rochelle Municipal Utilities and Gridforce Energy Management, LLC at a monthly cost of $20,000 for one year.

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 - pdf Appointment of Members to Boards and Commissions (24 KB)

• Council Members

• Employee Introduction – pdf Kyle Buch (62 KB)

V. PUBLIC COMMENTARY:

• League of United Latin American Citizens

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf June 8, 2015 (219 KB)

b) Approve Minutes of the Committee of the Whole – pdf June 8, 2015 (20 KB)

c) Accept and Place on File Minutes of Stormwater Advisory Committee – pdf January 14, 2015 (349 KB)

d) Approve Bills – pdf 052915-060415 (90 KB) , pdf 060515-061115 (118 KB)

e) Approve Payroll – pdf 052515-060715 (53 KB)

f) Approve Wine on Lincoln Committee Request – pdf September 26, 2015 (104 KB)

2) Rochelle Municipal Utility Technology Center Roof Project

3) Subsidy for Fairways Golf Course Operations

4) 2015 Sidewalk Project

5) Permitted Facilities Agreement with BP Pipelines– RMU Driveway North of the Wiscold Drive Improvement Project

6) Intergovernmental Agreement between the City and Illinois Department of Transportation for Municipality Maintenance of Roadways under State Jurisdiction

7) Amendment to Local Agency Agreement and Supplement to Preliminary Engineering Services for Federal Participation – Jack Dame Road Overpass Project

8) Agreement between the City of Rochelle and Teska Associates– Downtown & Southern Gateway TIF District

9) Memorandum of Agreement with BHMG Engineers, Inc. – Caterpillar Power Module Control System Upgrade Units 13, 14 and 15

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Rochelle Municipal Utility Technology Center Roof Project

References:

pdf Memo from Advanced Communications Superintendent Scott Koteski (98 KB)

pdf Letter of Recommendation from Fehr Graham (323 KB)

pdf Bid Tabulation (34 KB)

Recommended Action:

Consider bids for the Rochelle Municipal Utility Technology Center Roof Project

History and Fact:

In the spring of 2011 a storm moved through the Rochelle area producing high winds with recorded gust of 75MPH. Shortly after the storm staff noticed a section of the Rochelle Municipal Utility (RMU) Technology Center roof membrane ballooning in the wind. At that time the roof was temporarily repaired and ballasted with tires. After investigations performed by RMU and our insurance provider it was determined that the roof failed due to excessive winds. The original roof warranty carried a wind rating of 60MPH and the recorded 75MHP winds were above the warranty coverage.

Discussion:

Subsequent to the required public notice, the City Clerk opened one complete bid on June 10th. Staff and our consultant, Brandy Williams of Fehr Graham, have reviewed the bid and recommend the acceptance of the base bid of $155,473 for the technology center roof, Alternate #1 of $1,579 for the 20 year 90 MPH warranty and Alternate #2A of $14,859 for the addition of vapor barrier from Metalmaster for a total of $171,911.

RMU has received a payment of $137,808.72 from the insurance company to replace the main roof on the technology center. In addition, the 2015-16 Capital Outlay Budget for Advanced Communications includes $55,000 to upgrade the roof to a 90MHP warranty and add an additional vapor barrier to the structure.

Recommendation:

Accept the bid for the Rochelle Municipal Utility Technology Center Roof Project from Metalmaster including the base bid, alternate #1 and Alternate #2A, for a total of $171,911 and reject all other bids.

Agenda Item #3 Subsidy for Fairways Golf Course Operations

References:

pdf Memo from Economic Development Director Jason Anderson (28 KB)

Recommended Action:

Consider a subsidy for Fairways Golf Course operations.

History and Fact:

On March 20, 2013 the Mayor and Council approved an Intergovernmental Agreement with the Flagg-Rochelle Community Park District for the Purchase of the Golf Course and Restaurant and Leasing of the Golf Course and Restaurant to a Third Party, a Purchase Contract for Golf Course and Restaurant and a Facility Lease Agreement with the Greater Rochelle Economic Development Corporation (GREDCO). Since that time GREDCO has been under contract with the City and Park District to provide the oversight, maintenance and operations of the golf course and banquet facilities. GREDCO has closely monitored the cash flow of the golfing operation and has come to realize that without on-going support from the City and Park District, the golf course is not viable. In order to maintain the golf course through the end of the year, the City and Park District will each need to contribute $50,000 for the 2015-16 fiscal year.

Discussion:

Economic Development Director Jason Anderson recommends that the City Manager be authorized to allocate $50,000 from Community Development funds to GREDCO for the sole purpose of maintaining the operations of Fairways Golf course for the current fiscal year.

The 2015-16 Hotel/Motel Fund Budget, administered by Community Development, includes $50,000 to subsidize the golf course for this fiscal year.

Representatives from GREDCO will be in attendance at the council meeting to answer questions from the Mayor and Council.

Recommendation:

Authorize the City Manager to allocate $50,000 from Community Development funds to GREDCO for Fairways Golf Course operations.

Agenda Item #4 2015 Sidewalk Project

References:

pdf Memo from City Engineer Sam Tesreau (94 KB)

pdf Bid Tabulation Sheet (103 KB)

pdf Map of 2015 Sidewalk Maintenance Locations (183 KB)

Recommended Action:

Consider bids for the 2015 Sidewalk Project

History and Fact:

Over the past several years the City has removed and replaced sidewalks throughout the community based on their condition. The 2015 Sidewalk Project includes the removal and replacement of approximately 16,400 square feet of sidewalk, twelve accessibility ramps and 450 linear feet of concrete curb and gutter on School Avenue, Caron Road and Irene Avenue.

Discussion:

Subsequent to the required public notice, the City Clerk opened three bids for the project on June 11th. City Engineer Sam Tesreau reviewed the bids and recommends the acceptance of the apparent low bidder, Campos Construction, Inc. with a bid of $140,014.50. The City of Rochelle will purchase the detectable warning plates for use on the accessibility ramps and the contractor will provide curb replacement around the handicap ramp locations. The 2015 Sidewalk Project will be funded through the Capital Improvements Fund.

Recommendation:

Accept the bid from Campos Construction, Inc. in the amount of $140,014.50 and reject all other bids.

Agenda Item #5 Permitted Facility Agreement with BP Pipelines – RMU Driveway North of the Wiscold Drive Improvement Project

References:

pdf Memo from City Engineer Sam Tesreau (95 KB)

pdf Permitted Facilities Agreement (402 KB)

Recommended Action:

Consider a Permitted Facilities Agreement between the City and BP Pipelines, Inc.

History and Fact:

In 2009, in association with the expansion of Sara Lee Corporation, the City of Rochelle was awarded a grant through the Economic Development Program of up to 50% for roadway upgrades along Wiscold Drive, not to exceed $1,123,860. Late last year the Mayor and Council approved a Permitted Facilities Agreement with BP Pipelines to facilitate the construction of the new Wiscold Drive roadway alignment over the pipeline located east of Steam Plant Road and awarded the bid to Martin and Company for the Wiscold Drive improvements.

Discussion:

Construction is currently underway on the Wiscold Drive Improvement Project. As a result, it was determined that an additional permitted facilities agreement would be required from BP to allow an access driveway and pavement to be constructed over a portion of the pipeline easement located adjacent to the new Wiscold Drive alignment and immediately east of the Caron and Steam Plant Road intersection.

BP officials have provided a permitted facility agreement for the encroachment with certain conditions for construction of the facilities. These conditions include an earthen berm approximately 10 feet west of the pipeline to create a barrier between the pipeline and vehicles using the access driveway or paved area. In addition, BP will have the right to remove portions of the permitted facilities if necessary for maintenance or construction of the pipeline. Per the agreement, the City will be solely responsible for all costs and expenses for constructing, operating, maintaining and removing the permitted facilities.

Approval of this agreement will allow the City to continue with construction of this facility and provide access to the existing Rochelle Municipal Utility peaker plant north of Wiscold Drive.

Recommendation:

Authorize the City Manager to sign the Permitted Facilities Agreement between the City of Rochelle and BP Pipelines of North America related to the RMU Driveway North of the Wiscold Drive Improvement Project

Agenda Item #6 Intergovernmental Agreement between the City and Illinois Department of Transportation for Municipality Maintenance of Roadways under State Jurisdiction

References:

pdf Memo from City Engineer Sam Tesreau (92 KB)

pdf Intergovernmental Agreement between the City of Rochelle and IDOT (413 KB)

Recommended Action:

Consider an Intergovernmental Agreement between the City of Rochelle and IDOT

History and Fact:

The City and Illinois Department of Transportation (IDOT) have an existing agreement for maintenance of certain State routes with the City of Rochelle corporate limits which expires on June 30, 2015. IDOT has submitted an updated Intergovernmental Agreement to the City for the term July 1, 2015 – June 30, 2025. The scope of work and areas identified for routine maintenance are generally identified in the agreement. This maintenance does not include major reconstruction or resurfacing projects. The total compensation for the term is estimated at $544,375.

Discussion:

Staff met with IDOT in early June to discuss the scope of services and identify some questionable maintenance limits contained within the agreement. Those issues have since been resolved.

The City has participated in the maintenance of State routes and/or said agreements for nearly 50 years as the local municipality’s public works are the first response, in many situations, to address the immediate and short term maintenance needs of local streets and highways within its corporate limits.

The agreement includes a clause to allow modifications to the agreement when mutually agreed to by both parties. City Engineer Sam Tesreau recommends that the City Engineer and Superintendent of Streets be designated as the City’s representatives who are authorized to approve these modifications.

Recommendation:

Authorize the Mayor to Sign an Intergovernmental Agreement between the City of Rochelle and IDOT for Routine Maintenance of State Routes for the term July 1, 2015-June 30, 2025.
Designate the City Engineer and Superintendent of Streets to act on behalf of the City for the term of the agreement.

Agenda Item #7 Amendment to Local Agency Agreement and Supplement to Preliminary Engineering Services for Federal Participation – Jack Dame Road Overpass Project

References:

pdf Memo from City Engineer Sam Tesreau (108 KB)

pdf Amendment to Local Agency Agreement (106 KB)

pdf Supplement to Preliminary Engineering Services (200 KB)

Recommended Action:

Consider an Amendment to the Local Agency Agreement and Supplement to Preliminary Engineering Services for Federal Participation for the Jack Dame Road Project

History and Fact:

In 2011 the Mayor and Council approved a Preliminary Engineering Services Agreement with Fehr Graham and Associates for phase one of the Jack Dame Road Overpass project and a Federal Participation Agreement for Federal funds to be used towards engineering services. At that time there was $245,000 of appropriated Surface Transportation Funds to be applied towards initial engineering elements. Since then $204,263 has been exhausted for the preliminary alignment layout, environmental assessment, right of way identification plat development, coordination with State and railroad agencies and other services identified in the original preliminary engineering services agreement. Staff has requested that IDOT release the remaining appropriated funds of approximately $40,737 for the next phase of engineering development.

Discussion:

It is estimated that phase two of engineering design which includes a project design report, State and railroad permitting, updated environmental assessment, ROW platting, cost estimates, project specifications and other elements identified in the scope of services will cost approximately $325,000. Based on the current Federal participation cap of $245,000, the City would need to contribute approximately $80,000. Therefore, supplemental #1 to the engineering services agreement includes a scope of services for certain engineering elements for a fee of $120,734.

IDOT has provided Amendment #1 to the Local Agency Agreement for council approval for the extension of the Surface Transportation Funds and further provisions to continue the approval and reimbursement process for the preliminary engineering costs. The City will be responsible for payments until reimbursement is received by IDOT or for any ineligible costs or those that exceed the agreement terms. Other engineering and construction phase agreements will follow once IDOT approves them.

Once the agreement is executed by IDOT, the City may proceed with the remaining preliminary engineering. However, if right of way acquisition or actual construction of the project is not started within 10 years following the signing of the agreement, the City will be required to repay the State any Federal funds received under the terms of the agreement.

Recommendation:

Authorize the Mayor to Sign Amendment #1 to the Local Agency Agreement for Federal Participation for the Jack Dame Road Overpass Project
Authorize the Mayor to Sign Supplemental #1 to the Preliminary Engineering Services for Federal Participation for the Jack Dame Road Overpass Project

Agenda Item #8 Agreement between the City of Rochelle and Teska Associates – Downtown & Southern Gateway TIF District

References:

pdf Agreement between the City of Rochelle and Teska Associates (68 KB)

pdf Attachment A – Scope of Services (195 KB)

pdf Rochelle Downtown & Southern Gateway TIF Schedule (30 KB)

Recommended Action:

Consider an Agreement between the City of Rochelle and Teska Associates

History and Fact:

On June 8th the Mayor and Council approved a Development Agreement with MTI, Inc. for the redevelopment of the Hub Theater and the Graber Building. As part of this agreement the City agreed to pursue the formation of a Tax Increment Financing District to include the properties that MTI has a contract to purchase and other properties in the downtown and South 7th Street areas. In addition the City Council approved an Inducement Resolution as the first step in the process of establishing the TIF District.

Discussion:

At the request of City staff, Teska and Associates have provided a three phase scope of services for the Downtown & Southern Gateway TIF District at a not to exceed cost of $34,865. The first phase, Eligibility Study, includes a field inventory, data collection and base map preparation, data analysis and an eligibility findings report. The second phase, Redevelopment Plan and Program, includes a housing impact study, redevelopment plan preparation, redevelopment plan formulation, boundary survey and legal description, City Council workshop and community meeting. The final phase, Public Review and Adoption, includes public notice of meeting and interested parties registry, Joint Review Board meeting, public hearing, city council deliberations, minor amendments, adjustment to survey and legal description and ordinances.

If the TIF process commences at this time, Teska estimates that the TIF District can be established as early as November of this year.

Recommendation:

Authorize City Manager to Sign an Agreement between the City of Rochelle and Teska Associates for the Downtown and Southern Gateway TIF District.

Agenda Item #9 Memorandum of Agreement with BHMG Engineers, Inc.– Caterpillar Power Module Control System Upgrade Units 13, 14 and 15

References:

pdf Memorandum of Agreement (35 KB)

Recommended Action:

Consider a Memorandum of Agreement between the City of Rochelle and BHMG Engineers, Inc.

History and Fact:

In 2014 the Mayor and Council approved the purchase of three generators in order to provide Rochelle Municipal Utilities (RMU) with an additional 6 MW of capacity. The units were installed and certified late last year. These generators are important for peak shaving and can be deployed into the distribution system to provide power during emergencies.

Discussion:

The three generators each have individual controls located within the enclosures that require someone to enter each enclosure to start them. RMU staff would like to automate the controls so that the units can be started remotely from the diesel plant, similar to the gas turbine. Therefore, staff requested a proposal from BHMG to upgrade the controls to allow remote start up and remove the controls from the vibration of the containers. The proposed scope of services includes designing a control system for the three CAT generators; designing and installing a 12’ x 16’ building near the generators; reworking the existing control panels; designing, procuring and installing three complete control panels in the new building; designing and installing a touchscreen to allow operation of the Solar turbine from the control building; preparing documentation of the control system upgrade; and on-site training for a fixed fee of $388,000.

Electric Operations Assistant Superintendent Jeff Sartorious recommends approval of the Memorandum of Agreement so these units can be started remotely and upgrade the analog controls.

Funding for the project is included in the FY 16 Electric Fund Capital Outlay Budget.

Recommendation:

Authorize the City Manager to sign a Memorandum of Agreement between the City of Rochelle and BHMG, Inc. for the Caterpillar Power Module Control System Upgrade, Units 13, 14 and 15.

Monday, June 8, 2015 at 7:00 p.m.

City of Rochelle Council Chambers

420 North 8th 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 May 26, 2015 (118 KB)

b) Accept and Place on File Minutes of Rochelle Airport Advisory Board –  pdf March 23, 2015 (206 KB)

c) Approve Bills – pdf 051515-052115 (114 KB) , pdf 052215-052815 (83 KB)

d) Approve Payroll – pdf 051115-052415 (50 KB)

e) pdf Approve Ordinance Establishing Prevailing Wage Rates (282 KB)

f) pdf Accept and Place on File Police Pension Board Annual Treasurer’s Report (22 KB)

g) pdf Authorize VFW 4th of July Parade - July 4, 2015 (118 KB)

2) Development Agreement – Hub Theater and Graber Building

3) Authorizing Preliminary Action in Connection with Hub Theater/Graber Building TIF Redevelopment Project (Inducement Resolution)

4) Well House, Well Pump, Connecting Water Main and Water Tower – Well 12

5) Engineering Agreement – Water Main Extension Steward and Hayes Roads

6) 2015 Sealcoat Project

7) Electric Rate Modifications

8) Agreements with Hanson Engineering and Illinois Department of Transportation – Airport Layout Plan

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Development Agreement – Hub Theater and Graber Building

References:

pdf Memo from Community Development Director Michelle Pease (17 KB)

pdf Development Agreement (165 KB)

Recommended Action:

Consider Development Agreement for Hub Theater and Graber Building Development Project

History and Fact:

Mr. Mike McCarty, a native of Rochelle, has approached the City and expressed an interest in developing and investing in our downtown district, specifically the Hub Theater and the Graber Building. The Hub Theater, located at 416 Lincoln Highway, originally opened in 1931. The building occupies a property footprint of 8,100 square feet and has been vacant since early 2011. The Graber Building, located at 413 Fourth Avenue, was built in 1905. The ground floor is currently occupied but floors two and three have been vacant for several years.

Discussion:

Mr. McCarty, through his MTI Corporation, intends to redevelop the Hub Theater as a performing arts center and the Graber Building as a retail/office building with substantial completion expected in June of 2017, pursuant to a Development Agreement. The Agreement provides that the anticipated total cost of the redevelopment is $1.8 million for the Hub Theater and $2.0 million for the Graber Building, all of which will be borne by MTI Corporation, except for the following:

• Initial Contribution: The City will make an initial payment of $250,000 into escrow, to be used to pay up to 100% of the purchase price and/or architectural and engineering costs for the Hub Theater and/or the Graber Building, but to be refunded to the City if MTI does not close on the properties before July 31st, or abandons the project prior to completion.

• Reimbursement of Eligible Costs: The City will reimburse MTI up to 20% of TIF-eligible costs for purchase and renovation of the Hub Theater and up to 10% of TIF-eligible costs for purchase and renovation of the Graber building, with a total reimbursement, including initial contribution, not to exceed $1 million.

• Tax Increment Finance Redevelopment Project Area The City will pursue the formation of a Tax Increment Financing District to include the properties that MTI has a contract to purchase and other properties in the downtown and South 7th Street areas, with the tax increments to be used to reimburse the City for its TIF-eligible expenditures, including the initial contribution and percentage contributions described above, as well as other TIF-related expenses paid by the City for TIF consultants.
Fees—The City will make an economic development grant to MTI in the amount of all normal permit fees.

Recommendation:

Approve a Development Agreement with MTI, Inc. for the development of the Hub Theater and the Graber Building.

Agenda Item #3 Authorizing Preliminary Action in Connection with Hub Theater/Graber Building TIF Redevelopment Project (Inducement Resolution)

References:

pdf Inducement Resolution (78 KB)

Recommended Action:

Consider Authorizing Preliminary Action in Connection with Hub Theater/Graber Building TIF Redevelopment Project (Inducement Resolution)

History and Fact:

At the request of MTI, Inc., City staff members have investigated the possibility of establishing the Downtown and Southern Gateway TIF District, to include the Hub Theater and Graber Building. The specific boundaries of the proposed TIF District have not been determined. The City anticipates entering into a contract with Teska Associates for financial and land-planning consultation in connection with the proposal to establish the TIF District. Teska estimates that, if the TIF process is commenced at this time, the TIF can be established as early as November of this year.

Discussion:

The Development Agreement between MTI, Inc. and the City includes reimbursement to the City for the City's initial contribution and percentage contributions to MTI’s project costs which are determined to be TIF-eligible, as well as reimbursement for other TIF-related expenses paid by the City, such as the cost of a TIF consultant. The passage of the Inducement Resolution is the first step in the process of establishing the TIF District, and it is necessary in order for TIF-related expenses incurred before the establishment of the TIF District to be eligible for reimbursement from the tax increments within the TIF District.

Recommendation:

Approve Resolution Authorizing Preliminary Action in Connection with Hub Theater/Graber Building TIF Redevelopment Project (Inducement Resolution)

Agenda Item #4 Well House, Well Pump, Connecting Water Main and Water Tower – Well 12

References:

pdf Memo from Superintendent of Water/Water Reclamation Adam Lanning (216 KB)

Recommended Action:

Consider bids for a well house, pump, connecting water main and water tower associated with Well 12

History and Fact:

The Master Plan for the City of Rochelle water system includes, as a priority, the construction of a well in the southeast quadrant of the City due to the continued industrial growth in this area. The industrial corridor on the south side of town has increased demand for water from 1.9 million gallons per day in 2004 to 3.0 million gallons per day in 2014.

In 2012 the Mayor and Council approved engineering agreements with Willett Hofmann and Associates and Fehr Graham to facilitate the construction of this well. Since that time the City has applied for an Illinois Environmental Protection Agency (IEPA) revolving loan, received approval of the project plan from the IEPA, purchased land for the well site and drilled the well.

Discussion:

Subsequent to the required public notice, the City Clerk opened bids for four contracts related to the well on May 27th. Superintendent of Water/Water Reclamation Adam Lanning has reviewed the bids and recommends the acceptance of the lowest responsible bid for each of the contracts as follows for a total of $3,795,588.79:

Contract 1A (Well Building)
Ceroni Construction Management with a base bid of $969,000 for construction of the well building including the alternate bid for a site backup generator of $93,864 for a total of $1,062,864

Contract 1B (Well Pump)
Midwest Well Services d/b/a Municipal Well and Pump with a bid of $165,479 to furnish and install the pump and motor

Contact 2 (Connecting Water Main)
Fischer Excavating Inc. with a bid of $343,345.79 to furnish and install 3500’ of 16” main

Contract 3 (Water Tower)
CB&I Constructors Inc. with a bid of $2,223,900 to furnish and install a 750,000 gallon storage tank

Total project costs for Well 12 including drilling the well, construction, engineering and contingency are expected to be approximately $4,918,600. Funding of the entire project will be done through the IEPA loan of $4,548,580.64 and $370,000 of RMU funds available through the current rate structure.

Based on the execution of these contracts the well is expected to be operational by March of 2016 and the tower should be complete the following November.

Recommendation:

Accept the base bid of $969,000 and the alternate bid of $93,864 for a total amount of $1,062,864 from Ceroni Construction Management for the well building and reject all other bids.

Accept the bid of $165,479 from Midwest Well Services d/b/a Municipal Well and Pump for the well pump and reject all other bids.

Accept the bid of $343,345.79 from Fischer Excavating, Inc. for the connecting water main and reject all other bids.

Accept the bid of $2,223,900 from CB&I Constructors Inc. for the water tower and reject all other bids.

Agenda Item #5 Engineering Agreement – Water Main Extension Steward and Hayes Roads

References:

pdf Memo from Water/Water Reclamation Superintendent Adam Lanning (28 KB)
pdf Engineering Agreement – Fehr Graham (166 KB)

Recommended Action:

Consider an engineering agreement with Fehr Graham related to the extension of water main along Steward and Hayes Roads

History and Fact:

As stated earlier, the demand for water has increased significantly in the industrial corridor on the south side of Rochelle. In response to this demand, well 12 has already been drilled in the southeast quadrant of the City and contracts for construction of the well building, well pump, connecting water main and water tower were considered in the previous agenda item.

Discussion:

City staff requested a proposal from Fehr Graham for professional services related to the water main extension along Steward and Hayes Roads. The scope of proposed services includes securing signed agreements and other necessary documents, payment and performances bonds, coordination of the preconstruction meeting and construction observation at an estimated cost of $24,000-$30,000.

Water/Water Reclamation Superintendent Adam Lanning recommends approval of the agreement so this portion of the Well 12 project can move forward.

Funding for the project is included in the FY 16 Water/Water Reclamation Capital Outlay Budget.

Recommendation:

Approve an agreement with Fehr Graham and Associates for services related to the extension of water main along Steward and Hayes Roads

Agenda Item #6 2015 Seal Coat Project

References:

pdf Memo from City Engineer Sam Tesreau (109 KB)
pdf Map of Sealcoat Locations (257 KB)
pdf Resolution for Maintenance of Streets and Highways (22 KB)

Recommended Action:

Consider the 2015 Seal Coat Bids

History and Fact:

The Engineering Department has identified several streets in need of roadway maintenance this fiscal year to preserve existing infrastructure. The following roadways are included in the 2015 Seal Coat Project: North 12th Street, East 2nd Avenue, East Creston Road, Willis Avenue and Avenue D west of Main Street. The application of a seal coat surface treatment has been found to be a cost effective way to maintain and preserve the life of the roadway surfaces and several streets and alleys have been treated over the past few years.

Discussion:

Subsequent to the required public notice, the Deputy City Clerk opened three bids on May 12th. City Engineer Sam Tesreau reviewed the bids and recommends the acceptance of the apparent low bidder, Civil Constructors, Inc., with a bid of $108,372.74. In addition, Street Department crews will provide pavement patching, surface preparation and sweeping in advance of the sealcoat operations.

The 2015-16 Capital Improvements Fund budget includes $160,000 for seal coat resurfacing of miscellaneous streets which will be funded through a transfer of Motor Fuel Tax (MFT) funds. Approval of the Resolution for Maintenance of Streets and Highways will allow the City appropriate MFT funds for this project.

Recommendation:

Approve a Resolution for Maintenance of Streets and Highways
Accept the bid from Civil Constructors, Inc. in the amount of $108,372.74 and reject all other bids.

Agenda Item #7 Electric Rate Modifications

References:

pdf Memo from Business and Financial Analyst Dan Westin (88 KB)
pdf How Does Rochelle City Council Receive Advice on Electrical Rates? (642 KB)
pdf Electric Cost of Service Study and Financial Projection (410 KB)
pdf Rate Design (194 KB)
pdf Resolution Establishing Utility Services Price Schedule for Electric (112 KB)
pdf Exhibit A (589 KB)
pdf Exhibit B (661 KB)

Recommended Action:

Consider Approving a Resolution Establishing Utility Services Price Schedule for Electric

History and Fact:

RMU has retained Universal Financial Solutions (UFS) to perform rate design analysis since 2012. For fiscal year 2015/16, UFS has again reviewed RMU’s rate structure with a resulting average rate modification of 2 % in increased revenue recognition based on the updated financial projections including cost factor changes and the fiscal year 2015/16 budget draft.

Discussion:

A typical residential customer with an average electric summer bill of
$ 95.77 will see an increase of $ 2.60 per month in the four summer months and an increase by
$ 2.67 per month in the eight non-summer months with no changes in energy use.

In the Time-of-Use rate (Summer Saver) a typical residential customer with an average (new) electric bill of $ 98.37 will see an opportunity to save up to $ 24.88 per summer month by modifying the energy consumption based on hours of usage by moving 50 % of usage between
2 pm and 7 pm weekdays to other hours in the week. Web based information will be available to provide information of actual usage hour by hour.

The Power Cost Adjustment (PCA) formula has been updated with a new base power cost factor with the target of an average PCA of 1 cent. The PCA formula also includes a cap of the PCA at 2 cents.

The UAB formally recommended approval of the modification of the electrical rate structure at its meeting April 8th. In addition, RMU Business and Financial Analyst Dan Westin provided information on the rate modifications to the Mayor and Council at the May 26th council meeting.

Recommendation:

Approve a Resolution Establishing Utility Services Price Schedule and related riders for Electric Effective July 1, 2015

Agenda Item #8 Agreements with Hanson Engineering and Illinois Department of Transportation – Airport Layout Plan

References:

pdf Memo from Airport Manager Danny Keller (85 KB)
pdf Agreement with Hanson Professional Services – Airport Master Plan (2.34 MB)
pdf Agency Agreement Airport Improvement Program with Illinois Department of Transportation (818 KB)

Recommended Action:

Consider Agreements with Hanson Professional Services and Illinois Department of Transportation related to the Airport Master Plan

History and Fact:

As a result of the runway extension and the addition of a partial parallel taxiway in the past couple of years, the City’s Airport Layout Plan (ALP) does not accurately reflect our existing airport facilities. The City must keep a Federal Aviation Association approved ALP up-to-date in order to receive grant money for future airport expansion.

Discussion:

City staff requested an engineering agreement from Hanson Professional Services to conduct an Airport Master Plan consisting of ALP update and Narrative Report. The scope of services included in the agreement includes preliminary assessment and schematic design, planning and special services at a not to exceed cost of $104,099.

The Illinois Department of Transportation has confirmed that this project is included in the revised FY 2015 Proposed Airport Improvement Program through non-primary Entitlement Funds. This program includes a 90% Federal match and 5% from both the State and the City. Funding for the City’s portion of this project is available through the FY 15/16 Airport Fund Capital Budget which includes $7,500 for the local match.

Recommendation:

Authorize the Mayor to sign a Standard Agreement for Consultant Services at Illinois Airport for Architectural/Engineering, Planning and Special Services in order to conduct airport master plan consisting of Airport Layout Plan update and Narrative Report.
Authorize the Mayor to sign an Agency Agreement through the Airport Improvement Program to update the Master Plan and ALP/Property Line Map Update

City Council Meeting Agenda May 26, 2015

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 May 11, 2015 (142 KB)

b) Approve Bills – pdf 050115-050715 (77 KB) ,  pdf 050815-051415 (94 KB)

c) Approve Payroll –  pdf 042715-051015 (50 KB)

2) City Hall Roof Replacement Project

3) Resolution Granting Real Estate Tax Abatement for Project Green

4) Resolution of Support for Tiger Grant

VII. DISCUSSION ITEMS:

1) Brownsfield Grant

2) Electric Rate Modifications

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 City Hall Roof Replacement Project

References:

pdf Award Recommendation from Willett Hofmann & Associates and Bid Tabulation (1.65 MB)

Recommended Action:

Consider bids for the City Hall Roof Replacement Project

History and Fact:

The north addition to the City Hall facility was completed in 1995. The asphalt roof on the north addition, central portion and southern wing were all installed at that time. It is assumed that the membrane roof on the south wing was also installed in 1995. Last year City staff noticed a deterioration of the shingles on the south side of the north addition, peeling and decaying fascia and soffit and failing gutters. As a result, the City hired Willett Hofmann & Associates to inspect the roofs and provide project specifications for the removal and replacement of the City Hall roof, including asphalt shingles, flat membrane roofing, gutters, downspouts, soffit and fascia.

Discussion:

Willett Hoffman & Associates (WHA) estimated the entire City Hall Roof Replacement Project at $140,000. This amount was included in the FY 2015-16 Capital Outlay Budget for the Municipal Building. WHA divided the project into four parts to aid in the flexibility and funding. The base bid included the removal of the existing asphalt roof and the installation of a new asphalt shingle roof system. The three alternate bids were for the replacement of the membrane roof system, replacing the gutter and downspouts and replacing the fascia and soffit.

Subsequent to the required public notice, the City opened bids from three contractors on May 15th. The apparent low bidder for the entire project, including the base and 3 alternates, is Sterling Commercial Roofing with a total bid of $190,400. Our consultant, Alan Hulstedt of Willett Hofmann believes that the bids came in over the estimate due to the small site and limited access directly below the roof edge which will require the work in Alternate Bids #2 & #3 to be done from a lift rather than scaffolding. In addition, the composite product specified in Alternate Bid #3 has significantly increased in cost.

In order to stay within budget and address the failing roof, Assistant to the City Manager Sue Messer recommends that the City award the Base Bid and Alternate Bid #1 to Bruns Construction, the low bidder for those two segments, for the sum of $120,550 and complete the remaining work at a future date. Completing only the roofs at this time will not negatively impact the completion of the fascia, soffit, gutter and downspout in the future.

Recommendation:

Accept the base bid and alternate bid #1 for the City Hall Roof Replacement Project from Bruns Construction for a total of $120,550 and reject all other bids.

Agenda Item #3 Resolution Granting Real Estate Tax Abatement to Project Green

References:

pdf Memo from Economic Development Director Jason Anderson (32 KB)

pdf Resolution Granting Real Estate Tax Abatement to Project Green (66 KB)

Recommended Action:

Consider Granting Real Estate Tax Abatement to Project Green

History and Fact:

The Greater Rochelle Economic Development Corporation (GREDCO) has been informed that a company is considering establishing a new agricultural/industrial business in Rochelle. GREDCO is recommending that the City provide financial incentives to this business in the form of property tax abatements.

Discussion:

This project has been evaluated to determine the anticipated economic impact to the community including an estimated job creation of 20-22 full time positions with annual wages from $30,000- $120,000 and an estimated capital investment of $7,000,000. Based on this evaluation a three year abatement schedule is proposed. Attracting businesses to locate in the City of Rochelle is extremely important in creating jobs for our citizens and expanding the economic base of the community.

Recommendation:

Approve Resolution Granting Real Estate Tax Abatement to Project Green.

Agenda Item #4 Resolution in Support of a TIGER Grant Application for the Lee-Ogle Freight Rail Expansion Project

References:

pdf Memo from Economic Development Jason Anderson (85 KB)

pdf Resolution in Support of TIGER Grant Application (128 KB)

Recommended Action:

Consider Resolution

History and Fact:

The Transportation Investment Generating Economic Recovery, or TIGER Discretionary Grant program, provides a unique opportunity for the Department of Transportation to invest in road, rail, transit and port projects. Since 2009, Congress has dedicated more than $4.1 billion to fund projects that have a significant impact on the Nation, a region or a metropolitan area. Earlier this year the United States Department of Transportation announced that approximately $500 million will be made available for transportation projects across the country under the seventh round of the TIGER grand program.

Discussion:

The City of Rochelle (CIR) Railroad currently facilitates rail switching services for a number of industrial users. However, the CIR is reaching capacity and will require an expansion in order to provide more efficient switching capabilities of unit trains and accommodate future rail customers. Therefore, the City is putting together a TIGER Grant application for $12,650,000 to advance the Lee-Ogle Freight Rail Expansion Project. This project will include the expansion of three tracks, two structures and drainage facilities. If successful, the City’s commitment of $1,000,000 in local matching funds will be used to purchase right of way through future rail revenues.

Final applications for the TIGER Grant must be submitted by June 5, 2015.

Recommendation:

Approve a Resolution in Support of a TIGER Grant Application for the Lee-Ogle Freight Rail Expansion Project

Discussion Item #1 Brownsfield Grant

The United States Environmental Protection Agency (USEPA) defines a brownfield as "real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant".

In 2013, Rochelle built an inventory of potential brownfield properties. Using that inventory, the City applied for a USEPA brownfields grant to begin to address these properties. In 2014, the USEPA awarded Rochelle $400,000 in federal grant funds. The three-year grant runs from October 2014 to September 2017. During that time, Rochelle will inventory, characterize, investigate, and complete remedial planning on brownfield properties.

Community Development Director Michelle Pease will provide an overview of the progress thus far and respond to questions from the Mayor and Council.

Discusstion Item #2 Electric Rate Modifications

RMU has retained Universal Financial Solutions (UFS) to perform rate design analysis since 2012. For fiscal year 2015/16, UFS has again reviewed RMU’s rate structure with a resulting average rate modification of 2% based on the updated financial projections including cost factor changes and the fiscal year 2015/16 budget draft.

The UAB recommended approval of the electric rate modification at its April 8th meeting.

RMU Business and Financial Analyst Dan Westin will provide additional information on the rate modifications and respond to questions from the Mayor and 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:

• pdf Police Week May 10-16, 2015 (44 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 April 27, 2015 (215 KB)

b) Approve Minutes of Special City Council Meeting – pdf April 30, 2015 (65 KB)

c) Approve Bills – pdf 041715-042315 (109 KB) ,  pdf 042415-043015 (93 KB)

d) Approve Payroll – pdf 041315-042615 (53 KB)

e) Reappoint Bruce McKinney to the Office of City Clerk for a Term to Expire April 30, 2019

f) Reappoint Chris Frye to the Office of City Treasurer for a Term to Expire April 30, 2019

g) Reappoint Chris Frye as the Treasurer for the Police and Fire Pension Boards for a Term to Expire April 30, 2019

h) pdf Approve Ordinance Amending Section 6-46 of the Municipal Code to Delete One Beer & Wine Liquor License (Fairways Golf LLC) (24 KB)

i) pdf Approve Ordinance Amending Section 6-46 of the Municipal Code to Create One Restaurant/Recreation Liquor License (Fairways Golf LLC) (25 KB)

j) pdf Approve VFW Request to hold a Poppy Drive at 4th Avenue and Lincoln Highway - May 23, 2015 (19 KB)

2) Consideration and action on an ordinance authorizing and providing for an Installment Purchase Agreement for the purpose of paying the cost of purchasing real or personal property, or both, in and for the City, and for the issue of not to exceed $3,000,000 General Obligation Debt Certificates (Limited Tax), Series 2015B, evidencing the rights to payment under said Agreement, providing for the security for and means of payment under said Agreement of the Certificates, and authorizing the sale of the Certificates to Robert W. Baird & Co. Incorporated

3) Consideration and action on an ordinance authorizing and providing for an Installment Purchase Agreement for the purpose of paying the cost of purchasing real or personal property, or both, in and for the City, and for the issue of not to exceed $2,000,000 General Obligation Debt Certificates (Limited Tax), Series 2015A, evidencing the rights to payment under said Agreement, providing for the security for and means of payment under said Agreement of the Certificates, and authorizing the sale of the Certificates to Robert W. Baird & Co. Incorporated

4) Re-subdivision of Rochelle Community Hospital

5) Consent to Financing of Rochelle Energy LLC by Caterpillar Financial Services Corporation

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

Agenda Item #2 Consideration and action on an ordinance authorizing and providing for an Installment Purchase Agreement for the purpose of paying the cost of purchasing real or personal property, or both, in and for the City, and for the issue of not to exceed $3,000,000 General Obligation Debt Certificates (Limited Tax), Series 2015B, evidencing the rights to payment under said Agreement, providing for the security for and means of payment under said Agreement of the Certificates, and authorizing the sale of the Certificates to Robert W. Baird & Co. Incorporated

References:

pdf Memo from Finance Manager Chris Frye (83 KB)

pdf Ordinance providing for the issuance of not to exceed $3,000,000 General Obligation Debt Certificates (313 KB)

Recommended Action:

Consider an Ordinance providing for the issuance of not to exceed $3,000,000 General Obligation Debt Certificates

History and Fact:

Earlier this year an Intergovernmental Agreement was approved between the City of Rochelle and the Flagg Rochelle Community Park District to facilitate the construction and operation of a recreational center. The agreement provides for a contribution by each of the parties of one-half of the cost of property, design and construction, estimated at approximately $6 million.

On April 20th the Flagg Rochelle Community Park District Board approved its contribution of $3 million for the construction of a YMCA through General Obligation Debt Certificates.

On April 27th the Rochelle City Council tabled action on the ordinance until the May 11th meeting.

Discussion:

The proposed Parameters Ordinance is for the consideration of not to exceed $3 million General Obligation Debt Certificates for the construction and equipping a recreation center. It stipulates a maximum maturity date of June 1, 2035, maximum bond issue amount of $3 million, maximum annual interest rate of 7%, issue date of no later than October 27, 2015 and that the bonds will be executed on behalf of the City by the Mayor. Once approved, the execution of the debt certificates can be authorized by the Mayor as long as it meets all of the parameters.

Recommendation:

Consider an Ordinance authorizing and providing for an Installment Purchase Agreement for the purpose of paying the cost of purchasing real or personal property, or both, in and for the City, and for the issue of not to exceed $3,000,000 General Obligation Debt Certificates (Limited Tax), Series 2015B, evidencing the rights to payment under said Agreement, providing for the security for and means of payment under said Agreement of the Certificates, and authorizing the sale of the Certificates to Robert W. Baird & Co. Incorporated.

Agenda Item #3 Consideration and action on an ordinance authorizing and providing for an Installment Purchase Agreement for the purpose of paying the cost of purchasing real or personal property, or both, in and for the City, and for the issue of not to exceed $2,000,000 General Obligation Debt Certificates (Limited Tax), Series 2015A, evidencing the rights to payment under said Agreement, providing for the security for and means of payment under said Agreement of the Certificates, and authorizing the sale of the Certificates to Robert W. Baird & Co. Incorporated

References:

pdf Memo from Finance Manager Chris Frye (83 KB)

pdf Ordinance providing for the issuance of not to exceed $2,000,000 General Obligation Debt Certificates (309 KB)

Recommended Action:

Consider an Ordinance providing for the issuance of not to exceed $2,000,000 General Obligation Debt Certificates

History and Fact:

The Comprehensive Plan and the City Council’s Strategic Planning Summary developed in 2011 recognize the need to eliminate or mitigate the train noise in our community. This has been identified as a quality of life issue, especially for those living and working near the tracks.

On March 23rd the City Council approved an agreement with the BNSF Railway Company which provides for the installation of four-quadrant flashers and gates at 15th Street by the BNSF Railway at an estimated cost to the City of $768,651. As discussed at a Committee of the Whole Budget Workshop, the City plans to issue debt certificates to fund the Quiet Zone project estimated at a total cost of $1.75-$2 million.

On April 27th the Rochelle City Council tabled action on the ordinance until the May 11th meeting.

Discussion:

The proposed Parameters Ordinance is for the consideration of not to exceed $2 million General Obligation Debt Certificates for the Quiet Zone improvements. It stipulates a maximum maturity date of June 1, 2035, maximum bond issue amount of $2 million dollars, maximum annual interest rate of 7%, issue date of no later than October 27, 2015 and that the bonds will be executed on behalf of the City by the Mayor. Once passed, the execution of the debt certificates can be authorized by the Mayor as long as it meets all of the parameters.

Recommendation:

Approve an ordinance authorizing and providing for an Installment Purchase Agreement for the purpose of paying the cost of purchasing real or personal property, or both, in and for the City, and for the issue of not to exceed $2,000,000 General Obligation Debt Certificates (Limited Tax), Series 2015A, evidencing the rights to payment under said Agreement, providing for the security for and means of payment under said Agreement of the Certificates, and authorizing the sale of the Certificates to Robert W. Baird & Co. Incorporated

Agenda Item #4 Re-subdivision of Rochelle Community Hospital

References:

pdf Memo from Building Inspector Kip Countryman (67 KB)

Recommended Action:

Consider the Preliminary and Final Plat

History and Fact:

Rochelle Community Hospital has purchased four properties adjacent to its facility in the past year and demolished five dwellings to prepare for an expansion. To facilitate this expansion the Mayor and Council approved the rezoning of the properties and the issuance of a special use permit to allow expansion of the campus for health care services. The hospital property is located between North 2nd Street and North 3rd Street from 8th Avenue to 10th Avenue.

Discussion:

Rochelle Community Hospital has submitted a preliminary and final plat of subdivision for the property to subdivide 10 properties into one, eliminate past easements granted to the City and plat new easements require for future development.

On May 4th the Planning and Zoning Commission held a public hearing to review the petition. After a review of the facts, the commission voted 4-0 to recommend approval of the preliminary and final plat.

Recommendation:

Approve the Preliminary and Final Plat for the Re-subdivision of Rochelle Community Hospital

Agenda Item #5 Consent to Financing of Rochelle Energy LLC by Caterpillar Financial Services Corporation

References:

pdf Consent to Financing (195 KB)

Recommended Action:

Consider Consent to Financing of Rochelle Energy LLC by Caterpillar Financial Services Corporation

History and Fact:

In August of 2010, the City entered into a Power Purchase Agreement with Rochelle Energy Center, LLC, whereby the City agreed to purchase electric power and environmental attributes generated by a methane-gas power plant located at the Rochelle Landfill. Part of the Power Purchase Agreement prevented Rochelle Energy Center, LLC, from assigning its rights in the contract to a third party without the City’s consent. On September 22, 2014, the City consented to the assignment of the Power Purchase Agreement rights to Rochelle Energy, LLC, a subsidiary of Evensol. The rights assigned contained substantively the same provisions as the Power Purchase Agreement, including the right to consent to any collateral assignments for financing purposes.

Discussion:

Rochelle Energy, LLC, is seeking to finance its acquisition and operation of the methane-gas power plant through Caterpillar Financial Services Corporation (Cat Financial). As part of their effort to obtain financing, Rochelle Energy, LLC, needs the City’s consent to a collateral assignment of the rights under the Power Purchase Agreement to Cat Financial. City Attorney, Alan Cooper, has worked with attorneys for Rochelle Energy and Cat Financial to draft a consent agreement. The Consent Agreement leaves in place the substantive protections included in the Power Purchase Agreement, as well as the Site Lease and the Landfill Gas Purchase Agreement to which the City is a consenting party.

Recommendation:

Approve the Consent Agreement between the City of Rochelle and Caterpillar Financial Services Corporation.

Thursday, April 30, 2015 at 6:30 pm

City of Rochelle Council Chambers

420 North 6th Street, Rochelle, IL 61068

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. REPORTS AND COMMUNICATIONS:

IV. PUBLIC COMMENTARY:

V. BUSINESS ITEMS:

1) Budget Fiscal Year 2015-16 (Public Hearing and Action)

2) Resolution Establishing Minimum/Maximum Wage Rates for Fiscal Year 2015-16

VI. ADJOURNMENT

Agenda Item #1 Fiscal Year 2015-16 Budget – Public Hearing and Adoption

References:

pdf 2015-16 Proposed Budget (1.72 MB)

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

Recommended Action:

1. Conduct Public Hearing.
2. Consider Fiscal Year 2015-16 Budget.

History and Fact:

The City Council met as a Committee of the Whole on March 16th and 30th to discuss the upcoming 2015-16 budget. During the meetings, management staff provided information on 2014-15 projections and capital purchases or projects for 2015-16. At the April 13th City Council meeting the City Manager presented a detailed list of modifications necessary to balance the budget.

The City Clerk published a Public Hearing notice, as required by State law, to consider adoption of the budget at the April 30th City Council Meeting. Final action on the Budget is required on or before April 30, 2015.

Discussion:

The final Proposed 2015-16 General Fund revenues are budgeted at $9,703,450. This represents an increase of approximately 9% compared to the approved 2014-2015 budget. Budgeted expenses total $9,698,591 which is approximately 9% higher than the 2014-15 budget and results in a budget surplus of $4,859. 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 $80,656,358 and budgeted expenses totaling $80,537.540.

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 2015-16 Budget.

Agenda Item #2 Resolution Establishing Minimum/Maximum Wage Rates for Fiscal Year
2015-16

References:

pdf Resolution Establishing Minimum/Maximum Wage Rates for 2015-2016 (6 KB)

pdf Exhibit A Minimum/Maximum Wage Rates (11 KB)

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

Recommended Action:

Consider Resolution Establishing Minimum/Maximum Wage Rates for Fiscal Year 2015-16

History and Fact:

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

Discussion:

The proposed wage rate resolution is based upon a review completed by the Human Resources Coordinator. The resolution applies to all employees and is based on job categories as defined by the Equal Employment Opportunity Commission. The rates included in this resolution are consistent with those that were incorporated into the proposed City Budget for Fiscal 2015-16.

Recommendation:

Approve Resolution Establishing Minimum/Maximum Wage Rates for Fiscal Year 2015-16