City Council Meeting Agenda - May 14, 2018

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

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

The Council Meeting will be broadcast live on Facebook

Agenda Item #2: Well 10 Building Replacement Project

Staff Contact: Adam Lanning

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

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

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

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

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

Agenda Item #3 - Well 10 Pump Replacement Project

Staff Contact: Adam Lanning

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

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

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

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

Staff Contact: Jeff Fiegenschuh, City Manager

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

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

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

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

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

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

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

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

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

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

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

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

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

 Agenda Item #6 - Updated Feasibility Study and Redevelopment Plan

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

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

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

Next Steps:

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

Recommendation:    

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

Supporting Documents: 

pdf Updated Northern Gateway TIF Redevelopment Plan (12.05 MB)

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

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

Staff Contact: Michelle Pease/Kip Countryman

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

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

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

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

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

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

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

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

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

Staff Contact: David Sawlsville, Fire Chief

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

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

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

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

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

Staff Contact: Nancy Bingham

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

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

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

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

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

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

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

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

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

Staff Contact: Adriana Milan

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

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

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

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

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

pdf Rider #1 (76 KB)

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

Staff Contact: Jeff Fiegenschuh, City Manager

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

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

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

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

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

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

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

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

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

Supporting Documents: 

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