City Council Meeting Agenda - July 22, 2019

AGENDA
ROCHELLE CITY COUNCIL
REGULAR MEETING
Monday, July 22, 2019 at 6:30 p.m.
City of Rochelle Council Chambers
420 North 6th Street, Rochelle, IL 61068

I. CALL TO ORDER:
• Pledge to the Flag
• Prayer
• Swearing In Councilman Don Burke
II. ROLL CALL:
III. PROCLAMATIONS, COMMENDATIONS, ETC:
IV. REPORTS AND COMMUNICATIONS:
• Mayor
• Council Members
V. PUBLIC COMMENTARY:
VI. DISCUSSION ITEMS:
1) Advanced Communications Solutions Project Overview and Findings – Sikich
2) Cyber Security and Privacy – AESI
3) Economic Development Website
VII. BUSINESS ITEMS:
1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) Approve Minutes of City Council Meeting – pdf July 8, 2019 (165 KB)
b) Approve Exceptions – pdf 7/3/19-7/15/19 (63 KB)
c) Approve Bills – pdf 7/16/19 (207 KB)
d) Approve Payroll – pdf 7/1/19-7/14/19 (60 KB)
e) Accept and Place on File Financial Statement – pdf June 2019 (680 KB)
2) Audit Reports for January 1, 2018 – December 31, 2018
3) Collective Bargaining Agreement between the City of Rochelle and the International Brotherhood of Electrical Workers Local 196
4) Ordinance Amending Chapter 6, Article 1, Section 6-3 of the Rochelle Municipal Code Pertaining to Liquor License Classifications
5) Ordinance Amending Chapter 94 Article IV Entitled “Stopping, Standing and Parking”
6) Ordinance Authorizing the Sale of Real Estate at 410 Cherry Avenue
7) Ordinance Approving a Fire Truck Revolving Loan Agreement with the Illinois Finance Authority
8) Resolution Approving a Master Equity Lease Agreement with Enterprise Fleet Management, Inc.
9) Resolution Approving a Maintenance Management and Fleet Rental Agreement with Enterprise Fleet Management, Inc.
10) Resolution Approving a Consignment Agreement with Enterprise Fleet Management, Inc.
11) Resolution Approving a Maintenance Agreement with Enterprise Fleet Management, Inc.
12) Resolution Approving a Loan Agreement with the Central Bank of Illinois Pertaining to the Purchase of Two Dump Trucks
VIII. EXECUTIVE SESSION
IX. ADJOURNMENT

The Council Meeting will be broadcast live on Facebook

Agenda Item #2 -  Audit for January 1, 2018 – December 31, 2018

Staff Contact: Chris Cardott, Finance Director

Summary: Sikich, LLP planned and performed the audit in order to obtain reasonable assurance about whether the financial statements are free of material misstatements. This included performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The audit also included evaluating the appropriateness of accounting policies used, significant estimates made by management and evaluating the overall presentation of the financial statements.
The auditor’s opinion, as noted on page 2 of the Comprehensive Annual Financial Report, indicates that the financial statements “present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Rochelle, Illinois, as of December 31, 2018, and the respective changes in financial position and, where applicable cash flows thereof for the year ended in conformity with accounting principles generally accepted in the United States of America.”
Anthony Cervini, Partner of Government Services for Sikich, will attend the meeting to provide an overview of the City’s Financial Statement and respond to questions from the Mayor and Council members.

Strategic Plan Goal Application: Maintain Fiscal Stability

Recommendation: Accept and place on file the Audit Reports for 2018 as prepared and presented by Sikich, LLP.

Supporting Documents:
pdf City of Rochelle Comprehensive Annual Financial Report – December 31, 2018 (2.55 MB)
pdf Rochelle Municipal Utilities Annual Financial Report – December 31, 2018 (866 KB)

  pdf Single Audit - December 31, 2018 (623 KB)

pdf Downtown Tax Increment Financing Fund - December 31, 2018 (431 KB)
pdf Lighthouse Pointe TIF Financial Report – December 31, 2018 (410 KB)
pdf Management Letter – December 31, 2018 (352 KB)

Agenda item #3 -  Collective Bargaining Agreement between the City of Rochelle and the IBEW (International Brotherhood of Electrical Workers) Local 196

Staff Contact: Jeff Fiegenschuh, City Manager & Nancy Bingham, Human Resource Coordinator

Summary:
The current collective bargaining agreement with the IBEW-Utilities Divisions expired on May 1, 2019. Our team met with the IBEW multiple times in the past 4 months to negotiate a new agreement. Our teams reached a tentative agreement for the entire package that has been ratified by the members of the collective bargaining group and is now ready for council approval. The proposal represents a good compromise, where both sides gave and received concessions.

Attached to this staff report is the redlined tentative agreement with the new provisions. Most of the provisions from the current agreement carried over into the new one. Below is a brief summary of the major changes to the current agreement that recently expired.

Dues Deduction and Fair Share Due to the Janis ruling all language related to collection of fair share dues has been removed from the new contract.

Grievance Procedure: Removes references to Director of Utilities and replaces with Superintendent of the applicable department. All other procedures remain the same. Minor changes on the Failure to Process language contained in the grievance procedures.

Residency: Under the new agreement residency was changed from 15 miles to 21 miles.

Non Privatization of Water/Water Reclamation: During the term of the agreement (3 years) the City agrees not to privatize work performed by members of the bargaining unit in the water/water reclamation division. This language allows us to utilize contract labor if needed.

Call Back Pay and Rest Period: Inserts language that allows the operator a five-minute window to cancel a call before the guaranteed 2 hour minimum overtime takes effect. This is new language the City insisted be inserted. The new proposal contains language that guarantees a rest period of 8 consecutive hours for the employee who has worked 16 hours. If the employee is called back on a mandatory call back before receiving 8 hours of consecutive rest, all time until the 8 consecutive hours is reached shall be at double time. The only exception to this clause is in emergency situations, if the superintendent feels the employee is mentally alert and shows no signs of exhaustion or fatigue. All language was inserted that employees who fail to respond to a call out may be subject to disciplinary action.

Standby Pay: Standby pay is increased to match the streets. There are annual increases of $1.00 per year through the life of the contract. Additional language was included to allow for disciplinary action if there is a failure to answer a standby call when on standby duty. Additional language gives the City the right to outsource emergency service runs, after offering work to all qualified employees in the bargaining unit.

Vacation Leave and Sick Leave Changed to mirror the employee policy manual.

Compensatory Time: Approved language that allows for up to 30 hours of compensatory time in each calendar year. Any remaining hours the employee has on Dec 31st shall be paid out at the rate of pay earned.

Group Insurance: No changes for current employees until final year of contract. The final year of the contract will see all current employees’ portion of the health insurance increase by 1%. For all employees hired after May 1, 2019 the new contributions will be higher and the same as approved for the police and street departments

Uniform Allowance: The City will allow up to $1,000 per year in a uniform allowance for any uniforms that are not arc flash rated. Currently we are spending over $1,500 per year per employee going through a uniform provider and cleaning service. Under the new contract, the employee will be responsible for laundering of their uniforms.

Wages: Effective May 1, 2019, 2.25%; effective January 1, 2020, 2.25%; effective January 1, 2021, 2.25%; and effective January 1, 2022, 2.25%.

The proposed contract also calls for a one-time stipend for water department and water reclamation employees who obtain the operator in training status with the ILEPA for a Class B license for water and Class 1 license for water reclamation. The Class B stipend is $2,500 and the Class 1 stipend is $3,500.

Recommendation: Approve the Collective Bargaining Agreement between the City of Rochelle and the IBEW (International Brotherhood of Electrical Workers) Local 196

Supporting Documents: pdf Redline Tentative Agreement (455 KB)

Agenda Item #4 -  Ordinance Amending Chapter 6, Article 1, Section 6-3 of the Rochelle Municipal Code Pertaining to Liquor License Classifications

Staff Contact: Jeffrey A. Fiegenschuh, City Manager

Summary: Kenny Farms Distilling recently approached the City about allowing their patrons to bring wine into their facility for onsite consumption. The current code does not allow for a “corking fee”. The proposed language changes to the Class M-1 license; Microbrewery includes:

A class M-1 license shall authorize the manufacture of beer products on the licensed premises and the sale at retail of alcoholic liquor, including the manufactured beer products, for consumption on the licensed premises. A Class M-1 license shall entitle the licensee, a microbrewery, to permit consumption of wine brought onto the premises by a patron twenty-one (21) years of age or older for personal consumption or for personal consumption of other patrons who are twenty-one (21) years of age or older. The consumption of wine is restricted to the licensed premises. No more than one (1) 750-milliliter bottle of wine per patron (unopened) shall be permitted to be brought into the premises.

The highlighted language above will permit any M-1 license holder to allow for the consumption of wine brought onto their premise by their customers.

Staff Recommendation: Approve an Ordinance Amending Chapter 6, Article 1, Section 6-3 of the Rochelle Municipal Code Pertaining to Liquor License Classifications

Supporting Documents:
pdf Ordinance Amending Chapter 6, Article 1, Section 6-3 of the Rochelle Municipal Code Pertaining to Liquor License Classifications (125 KB)

Agenda Item #5 - Ordinance Amending Chapter 94 Article IV Entitled “Stopping, Standing, and Parking”

Staff Contact:  Eric Higby or Matt Wittenberg

Summary:      May, Tilton and Central Schools have had parking issues for years during pick up and drop off times.  Double parking and parking where prohibited in these areas creates traffic congestion and unsafe situations for the students.  Having a new system in place supported by the proper signage will allow the orderly pick up and drop off of students at the schools.

Strategic Plan Goal Application:   Develop and implement plan to replace/repair infrastructure to work in concert with the CIP.

Recommendation:     Approve an Ordinance Amending Chapter 94 Article IV Entitled “Stopping, Standing, and Parking” which updates the current parking ordinance with regard to May, Central and Tilton School areas.

Supporting Documents: 

pdf Letter of Support from Rochelle Elementary School District 231 (16 KB)

pdf Ordinance Amending Chapter 94 Article IV Entitled “Stopping, Standing, and Parking” (137 KB)

pdf Proposed No Parking/Drop-Off/Pick-Up Zones (93 KB)

Agenda Item #6 - Ordinance Authorizing the Sale of Real Estate at 410 Cherry Avenue

Staff Contact: Michelle Pease

Summary: City owned property located at 410 Cherry Avenue (P.I.N. 24-24-382-005) has been deemed surplus real estate property located within in a defined redevelopment project area and is no longer necessary, appropriate, useful to, or in the best interest of the City of Rochelle to retain ownership of the property. The property includes approximately 3,978 square feet of building space and a 52 x 80 lot zoned B1, Commercial, Central Business and is located in the Downtown and Southern Gateway TIF District. Request for Proposals were made public for interested parties to submit proposals to redevelop the property, all proposals were reviewed, and interviews were conducted of applicants who submitted a proposal by the deadline submission date. T & R Rental, LLC submitted a proposal to purchase the property for $10,000. This proposal to redevelop the property supports the redevelopment efforts of Downtown Rochelle.

Recommendation: Approve an Ordinance Authorizing the Sale of Real Estate at 410 Cherry Ave to T & R Rentals, LLC

Supporting Documents:
pdf Contract for Sale of Real Estate at 410 Cherry Avenue (49 KB)
pdf Ordinance Authorizing the Sale of Real Estate at 410 Cherry Avenue (98 KB)
pdf GIS Map (319 KB)

Agenda item #7 - Ordinance Approving a Fire Truck Revolving Loan Agreement with the Illinois Finance Authority

Staff Contact: David Sawlsville

Summary: The 2019 Budget includes the purchase of a fire engine to replace Engine 8 which was built and purchased in 1995. Budgeted in 2019 is $200,000 from the Ambulance Fund to cover the cost of the chassis with the remainder of the Engine to be paid for upon completion in 2020. Earlier this year we applied for and were approved to receive a loan in the amount of $350,000 from the Office of the State Fire Marshal through The Illinois Finance Authority for the purchase of this Engine. The term of the loan is for up to 20 years with a fixed interest rate of 1.89%.

Recommendation: Approve an Ordinance Approving a Fire Truck Revolving Loan Agreement with the Illinois Finance Authority.

Supporting Documents:
pdf Ordinance Approving a Fire Truck Revolving Loan Agreement with the Illinois Finance Authority (79 KB)
pdf Fire Truck Revolving Loan Program Loan Agreement (231 KB)

Agenda Item #8 - 11

Resolution Approving a Master Equity Lease Agreement with Enterprise Fleet Management, Inc.

Resolution Approving a Maintenance Management and Fleet Rental Agreement with Enterprise Fleet Management, Inc.

Resolution Approving a Consignment Agreement with Enterprise Fleet Management, Inc.

Resolution Approving a Maintenance Agreement with Enterprise Fleet Management, Inc.

Staff Contact: Tim Isley

Summary: The City has a light duty vehicle fleet of varying ages and capabilities. Many of these vehicles are operated until the repair costs exceed the value of the vehicle. This is sometimes referred to as the “drive it till the wheels fall off “approach. This typically occurs when a major component such as the drivetrain has failed leaving the vehicle inoperable and with a value of scrap steel. This method has caused staff to reexamine our procurement practices and consider the benefits of fleet leasing.

For the past year, City staff have been investigating options of leasing vehicles for the City’s light duty fleet. Staff conducted an analysis to determine our best leasing and purchasing options and found the lowest life cycle costing method to be most economical. Typical parameters in lifecycle costing include depreciation, cost of money, insurance, fuel, maintenance and repair. Other replacement considerations are obsolescence cost, downtime costs and market conditions.

Generally, lease terms will span 3 to 5 years. Lease terms are open ended with no penalty, so a vehicle may be cycled earlier in this program if it makes sense and the resale market is right. The City would determine the number of vehicles to be acquired through lease and include this as part of the annual budget approval process. City vehicles to be leased through the Enterprise Fleet Management program may be purchased through local dealerships. A stock fee of 2% less applicable incentives will apply. Leased vehicles may also be serviced and repaired at local dealerships and maintenance shops.

Over time, City staff anticipates significant financial and practical advantages such as improved cash flow, greatly reduced maintenance costs, reduced fuel costs, improved safety features to better protect our employees and the public, an optimal vehicle replacement schedule, as well as increased fleet management support. By implementing the Enterprise Fleet Management program, the City can expect to see a conservative net savings of over $200,000 within the first ten years of this program.

The most significant benefit to fleet vehicle leasing is a smaller up-front investment compared to an outright purchase. The proposed lease agreement reduces the costs to a monthly operating expense. This allows funds that would have been committed to fleet purchases to be used for other core services. Interest rates for leased vehicles are based off a 3-year T-Bill which is currently at 4.21% and will be fixed at the time of delivery.

As the current City fleet ages, breakdowns are a common occurrence. This is not only an expense in parts and repair, but also an expense in lost staff productivity. The proposed lease agreement will provide the city with new vehicles that have bumper-to-bumper coverage greatly reducing repair costs and down time. Leased vehicles will include a flat maintenance management fee of $5.00 per vehicle, per month and a full maintenance agreement with costs based on vehicle type and miles driven.

Leasing the City’s fleet through Enterprise Fleet Management will provide the City with several additional management tools for a fee of 0.10% per vehicle per month. These management tools include, experience in managing thousands of government vehicles, web-based programs analyzing all fleet costs, fleet maintenance reminders and recommendations, routine administrative tasks and maximizing resale values.

Once a vehicles effective lifecycle has been met, Enterprise Fleet Management will increase the used vehicle resale be utilizing multiple resale channels to create a competitive environment to maximize vehicle returns. A lease termination fee of $400 is applied for selling the vehicle and title processing.

By partnering with Enterprise Fleet Management, the City can expect to have a cost-effective fleet that is safe, reliable, efficient and well managed.

Strategic Plan Goal Application: Maintain fiscal stability and a balanced budget.

Recommendation:
Approve a Resolution Approving a Master Equity Lease Agreement with Enterprise Fleet Management, Inc.
Approve a Resolution Approving a Maintenance Management and Fleet Rental Agreement with Enterprise Fleet management, Inc.
Approve a Resolution Approving a Consignment Agreement with Enterprise Fleet Management, Inc.
Approve a Resolution Approving a Maintenance Agreement with Enterprise Fleet Management, Inc.

Supporting Documents:
pdf Pricing Worksheet (39 KB)
pdf Fleet Profile (638 KB)
pdf Fleet Planning Analysis (679 KB)
pdf Credit Application (134 KB)
pdf Fleet Management PowerPoint (2.33 MB)
pdf Vehicle Replacement Plan (82 KB)
pdf Resolution Approving a Master Equity Lease Agreement (80 KB) pdf (79 KB)
pdf Master Equity Lease Agreement (125 KB)
pdf Resolution Approving a Maintenance Management and Fleet Rental Agreement (79 KB)
pdf Maintenance Management and Fleet Rental Agreement (74 KB)
pdf Resolution Approving a Consignment Agreement with Enterprise Fleet Management, Inc. (78 KB)
pdf Consignment Agreement with Enterprise Fleet Management, Inc. (85 KB)
pdf Resolution Approving a Maintenance Agreement with Enterprise Fleet Management, Inc. (79 KB)
pdf Maintenance Agreement with Enterprise Fleet Management, Inc. (77 KB)

Agenda Item #12 - Resolution Approving a Loan Agreement with Central Bank of Illinois Pertaining to the Purchase of Two Dump Trucks

Staff Contact: Tim Isley

Summary: On February 2, 2019 City Council approved a resolution waiving the bidding requirements and authorizing the purchase of two (2) Dump Trucks from CIT Trucks, LLC in an amount of $343,898.00

Due to an average annual increase of 3 to 5% from manufactures, it was proposed to purchase two (2) dump trucks at the same time in an effort to eliminate this annual increase from one of the dump trucks. It was also proposed that the purchase of these trucks would be financed through a local bank for a term not to exceed 4 years and at an interest rate not to exceed 4.75%.

The 2019 Street Department budget includes funds of $95,000 for the initial payment for the two dump trucks. This will leave a remaining balance of $248,898 to be financed through a local bank.

Local banks have been surveyed for the lowest interest rate for the financing of $248,898 for a term of three years. Central Bank of Illinois has offered the lowest interest rate of 3.09% for the financing of $248,898 for a term of three years.

Strategic Plan Goal Application: 

Short term routine – Replacing infrastructure/assets

Recommendation:
Approve a Resolution Approving a Loan Agreement with Central Bank of Illinois Pertaining to the Purchase of Two Dump Trucks

Supporting Documents:
pdf Resolution Approving a Loan Agreement with Central Bank of Illinois Pertaining to the Purchase of Two Dump Trucks (79 KB)
pdf Loan Agreement (175 KB)
pdf Agenda Item 02/25/19 (55 KB)
pdf Resolution R19-16 approved 02/25/19 (18.84 MB)

Discussion Item #1 

RMU IT/Advanced Communications hired Sikich to help with the internal mapping of the system, documentation and to make recommendations for the utility.

Representatives from Sikich will present the final findings and share some of the recommendation made to RMU IT/Advanced Communications.

  pdf IT Solutions Project Overview (231 KB)

Discussion Item #2

RMU IT/Advanced Communications hired AESI to do a complete cyber and physical security assessment of the system and to provide recommendations for the utility going forward. This assessment included the Electric and IT/Internet Service Provider side, with spots check in the other departments.

AESI representatives will share the final findings and some of the recommendations made to RMU IT/Advanced Communications

pdf Cyber Security Presentation (242 KB)

Discussion Item #3

In conjunction with developing a marketing plan for the Economic Development Department and in support of the strategic goals, a new Economic Development website has been completed. The new website, www.excelinrochelle.com, is a great marketing tool to effectively improving our community visibility. The website highlights the assets and advantages of doing business in Rochelle. Businesses and site sectors are particularly drawn to websites that provide comprehensive information that is easy to navigate.