AGENDA
ROCHELLE CITY COUNCIL
REGULAR MEETING
Monday, July 13, 2020 at 6:30 p.m.
City of Rochelle Council Chambers
420 North 6th Street, Rochelle, IL 61068
CALL TO ORDER:
Pledge to the Flag
Prayer
ROLL CALL:
PROCLAMATIONS, COMMENDATIONS, ETC:
REPORTS AND COMMUNICATIONS:
Mayor’s Report
Appoint Dale Myers to the Airport Advisory Board as a non-voting member at large with a term of July 13, 2020-July 1, 2023
Council Members
Remarkable Resident – Pal Colwill
Good News – Water Department
PUBLIC COMMENTARY:
BUSINESS ITEMS:
1)CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
Approve Minutes of City Council Meeting – pdf June 22, 2020 (475 KB)
Approve Exceptions – pdf 06/10/20-07/07/20 (341 KB)
Approve Payroll – pdf 06/15/20-06/28/20 (60 KB)
Accept and Place on File Minutes from Planning and Zoning Commission – pdf 05/04/20 (239 KB)
Approve Restart Rochelle Grants: Da Place Bar, TJ’s Lounge Inc., Premium Phone Stores, Hair Express, Tecalitlan Restaurant, Rock Sky Market, Inc., Beauty Villa, El Sol Mexican Restaurant, Cheri Picked Vintage LLC
2) Prologis Park Substation Transformer Purchases
3) Change Order for the South Main Street Improvement Project – Boring Electric Line
4) Ordinance Waiving the Competitive Bidding Requirements and Awarding Wesco Distribution the Purchase Order for the Purchase and Installation of LED Streetlights
5) Ordinance Granting a Special Use to Allow the Burton Foundation to Construct a Residential/Retail Multi-Use Development Located at Coronado Drive and North Point Drive and an Ordinance Granting Variation to Permit First-Floor Residential on a Development Located Within the PUD-C Zoning District for the Property located at Coronado Drive and North Point Drive
6) Ordinance Granting Variation of Lot Coverage and Setbacks for Portable Garden Shed at 201 School Avenue
7) Consideration and action on an ordinance providing for the payment of the City’s outstanding Electric System Revenue Bonds, Series 2014, and Electric System Revenue Bonds, Series 2015, in advance of their respective maturities, authorizing the execution and delivery of an escrow agreement in connection therewith and related matters
8) Resolution Authorizing the City Manager to Execute an Intergovernmental Grant Agreement with the Illinois Department of Transportation – CARES Act
9) Amendment Two to Switching Services Agreement between Burlington Junction Railway and City of Rochelle
10) Ordinance Approving a Purchase and Sale Agreement for the purchase of property located at 1315 West 2nd Avenue
11) Ordinance Continuing the Temporary Suspension of Late Fees as Identified in Chapter 98 Article I of the Rochelle Municipal Code
DISCUSSION ITEMS:
EXECUTIVE SESSION
ADJOURNMENT
Anyone interested in participating in public commentary remotely should contact Deputy City Clerk Rose Hueramo at rhueramoThis email address is being protected from spambots. You need JavaScript enabled to view it. or 815-562-6161 to make arrangements.
Council members may participate in the City Council Meeting remotely as a result of the Governor suspending the requirement for in-person attendance at Public Meetings.
The Council Meeting will be broadcast live on Facebook
Agenda Item #2 - Prologis Park Substation Transformer Purchases
Staff Contact: Adam Lanning
Summary: BHMG is currently providing engineering and construction management services for the proposed 138 kV Prologis Park Substation to provide 34.5 kV and 13.8 kV to the proposed loads. The project requires energization of systems by fall 2021 with long equipment lead times, therefore, it is important to keep this project moving. On June 25th the City received and opened bids for three transformer purchases, as part of the substation. Three separate bid proposals were received from 3 different bidders, with proposal 3 as the recommended purchase for the City by BHMG. The bids ranged from $2,876,275 to $3,727,794 with WEG as the apparent low bidder. This bid was under the engineer’s original cost estimate of $3,600,000 and has a lead time of 40 weeks, also under the engineer’s original estimate of 48 to 72 weeks. The proposed purchase would provide 2 transformers supplying 34.5 kV and one transformer supplying 13.8 kV power to the southern industrial corridor.
| Funding Sources: | ||
| Source: | Budgeted Amount: | Proposed Expenditure: |
| Cash Reserve | $3,500,000 | $2,876,275 |
Strategic Plan Goal Application: Short-Term Route & Long-Term Complex Goal Create a 20 Year Capital Improvement Plan, review & modify plan as needed.
Recommendation: Approve the purchase of 3 transformers from WEG Transformers, USA in the amount of $2,876,275 and reject all other bids.
Supporting Documents:
pdf BHMG Recommendation Letter (2.34 MB)
Agenda Item #3 - Change Order for the South Main Street Improvement Project – Boring Electric Line
Staff Contact: Adam Lanning
Summary: With some recent developments with the South Main Street project we need to have approximately 740 LF of directional boring of the electric line. In order for the project currently in progress to continue to move forward, we would like to have Utility Dynamics Corporations perform the scope of work needed.
| Funding Sources: | ||
| Source: | Budgeted Amount: | Proposed Expenditure: |
| Electric Funds | Not Budgeted | $26,860 |
Supporting Documents:
pdf Illinois Department of Transportation Request for Approval of Change of Plans (52 KB)
pdf Utility Dynamics Corporation Quote (85 KB)
Agenda Item #4 - Ordinance Waiving the Competitive Bidding Requirements and Awarding Wesco Distribution the Purchase Order for the Purchase and Installation of LED Streetlights
Staff Contact: Adam Lanning
Summary: As part of the 6th Street and Municipal Parking Lot #4 projects we will replace 15 streetlights to match the current style for the downtown area. In order to continue with this style, we propose bypassing the bid process and approve a bid from WESCO Distribution. The project will be funded by the engineering department and will be reimbursed by the Electric Department in FY2021.
Funding Sources: Source: Budgeted Amount: Proposed Expenditure: Electric Funds Not budgeted $34,500
Recommendation: Approve an Ordinance Waiving the Competitive Bidding Requirements and Awarding Wesco Distribution the Purchase Order for the Purchase and Installation of LED Streetlights in the amount of $34,500.
Supporting Documents:
pdf Wesco Material Quote (76 KB)
Agenda Item #5 - Ordinance Granting a Special Use to Allow the Burton Foundation to Construct a Residential/Retail Multi-Use Development Located at Coronado Drive and North Point Drive and an Ordinance Granting Variation to Permit First-Floor Residential on a Development Located within the PUD-C Zoning District for the Property Located at Coronado Drive and North Point Drive
Staff Contact: Michelle Pease, Community Development Director
Summary: The Burton Foundation is seeking a special use permit to construct affordable residential and retail multi use in a Planned Unit Development – Commercial Zoning District (PUD-C).
In addition to the special use, the petitioner is also requesting a variance for residential units to be allowed on the first floor within a PUD-C.
The proposed construction is as follows:One 2-story residential wing One 3-story residential wing One 2-story building with 1st floor retail space (approx. 8,500 sq. ft.) with the 2nd floor residential. The retail space will not take the entire first floor of the development.
Staff has requested that all first floors consist of retail space, but that request is not satisfied by the current proposal. Additionally, staff has requested a commitment that the retail space would serve the community as a whole, and not just the residents of this property.
Within a PUD-C, Planned Unit Development – Commercial, such residential or mixed-use (residential and commercial) developments require a special use. Also, the proposed development does not have an entire first floor commercial use, as required by the City Code, therefore, the developer will need a variance allowing residential on the first floor for the development as proposed. The proposed development is not consistent with the City’s Comprehensive Plan, nor is it consistent with the commercial properties surrounding the parcel designated for this project.
Section 110-435(a)(2) of the City Code entitled “Types of PUDs” notes that a PUD-C is only for developments “involving commercial uses”. However, Sub-part (b)(1) of this Section does allow for developments that are allowed as a special use in the B-1 or B-2 business districts. The City’s Code related to B-1or B-2 business districts, B-1 Central Commercial District only allow mixed use buildings with residential units, when the residential units are located above the first floor. See Section 110-211.
In addition to the PUD-C location, the proposed development is located within the Rochelle Lighthouse Pointe TIF District. Within the Rochelle Lighthouse Pointe TIF District Intergovernmental Agreement between the City of Rochelle, Rochelle Township School District No. 212 and Rochelle Community Consolidated School District No. 231, Ordinance 10-3491, Section G, Residential Development, “The City shall not permit residential development within the TIF District without first obtaining the written consent of the School Districts.” Therefore, discussions with both school districts will need to take place before this project can move forward.
A public hearing was held on Monday, July 6, 2020. The Planning and Zoning Commission voted to disapprove the Special Use and Variance by a vote of 6-1.
Strategic Plan Goal Application: This request continues to support the City’s Strategic Plan goals and objectives by maintaining and encouraging a quality housing stock.
Recommendation: Review and approve/disapprove an Ordinance Granting a Special Use to Allow the Burton foundation to Construct a Residential/Retail Multi-Use Development Located at Coronado Drive and North Point Drive Review and approve/disapprove an Ordinance Granting Variation to Permit First-Floor Residential on a Development Located within the PUD-C Zoning District for the Property located at Coronado Drive and North Point Drive
Supporting Documents:
Agenda Item #6 - Ordinance Granting Variation of Lot Coverage and Setbacks for Portable Garden Shed at 201 School Avenue
Staff Contact: Michelle Pease, Community Development Director
Summary: Residents John and Dina Bearrows are seeking a variance of setbacks and lot coverage in order to place a proposed 12’ x 14’ portable garden shed behind the existing single car garage for storage located at 201 School Ave, which is zoned R1. There is approximately 18’ between the existing garage and the lot line. Due to the size of the proposed shed and the setback requirements, a variance is required. Currently, the lot is at maximum coverage. Therefore, a variance for an additional 168 square feet for the proposed shed.
A public hearing was held on Monday, July 6, 2020. The Planning and Zoning Commission approved the Variance of setbacks/lot coverage by a vote of 7-0.
Strategic Plan Goal Application: This request continues to support the City’s Strategic Plan goals and objectives by maintaining and encouraging a quality housing stock.
Recommendation: Approve an Ordinance Granting Variation of Lot Coverage and Setbacks for Portable Garden Shed at 201 School Avenue
Supporting Documents:
Agenda Item #7 - Consideration and action on an ordinance providing for the payment of the City’s outstanding Electric System Revenue Bonds, Series 2014 and Electric System Revenue Bonds, Series 2015, in advance of their respective maturities, authorizing the execution and delivery of an escrow agreement in connection therewith and related matters
Staff Contact: Jeff Fiegenschuh, City Manager
Summary: In August 2014, City Council authorized the issuance of $6 million of Electric Revenue bonds for the purchase/installation of Cat diesel generators. The bond has an eligible call date of 2024 and a maturity date of 2034. In early 2015, City Council approved the refunding of the 2005 Electric Revenue bonds to take advantage of lower interest rates. The refunded bond totaled $9.11 million. It has an eligible call date of 2025 and maturity date of 2035. This ordinance would create an escrow account for future bond payments until the call dates. The amount required for the escrow account is $14,716,925.89. At the time of the call dates, the bonds would be paid off and save approximately $2.9 million in interest. By defeasing the bonds, the debt would be removed from the City’s financial statements and there would be no bond covenants to follow. Funding for the escrow account would come from the $9.5 million in restricted accounts and the remaining portion from proceeds from the sale of the transmission assets. The remaining unrestricted cash balance after establishing the escrow account will be $19.4 million which equates to 249 days cash on hand. The Electric expense budget will be reduced by $1.7 mil each year in the future because there will be no debt service payments.
Strategic Plan Goal Application: Maintain Fiscal Stability & Balanced Budget – Short Term Routine
Recommendation: Approval of an ordinance providing for the payment of the City’s outstanding Electric System Revenue Bonds, Series 2014 and Electric System Revenue Bonds, Series 2015, in advance of their respective maturities, authorizing the execution and delivery of an escrow agreement in connection therewith and related matters
Supporting Documents:
pdf Defeasance Ordinance (296 KB)
pdf Defeasance Escrow Agreement (333 KB)
Agenda Item #8 - Resolution Authorizing the City Manager to Execute an Intergovernmental Grant Agreement with the Illinois Department of Transportation – CARES Act
Staff Contact: Mike Hudetz, Airport Manager
Summary: Illinois Department of Transportation – Aeronautics Division is administering a grant program to disperse federal funds, compensating Illinois airports for lost revenues and other expenses during the Covid-19 pandemic. It has been determined that $30,000 will be granted to Rochelle Municipal Airport of losses incurred during this period.
Strategic Plan Application: Utilizing Federal programs to manage Cofid-19 budget shortfalls and maintain city financial stability.
Recommendation: Approve a Resolution Authorizing the City Manager to Execute an Intergovernmental Grant Agreement with the Illinois Department of Transportation – CARES Act
Supporting Documents:
Agenda Item #9 - Amendment Two to Switching Services Agreement between Burlington Junction Railway and City of Rochelle
Staff Contact: Jason Anderson – Economic Development Director
Summary: The switching services contract between the Burlington Junction Railway (BJRY) and the City of Rochelle Railroad was extended through July 14, 2020. Seven months ago the City engaged Strategic Rail Finance (SRF) to conduct a study which was designed to outline for the City, a comparison of the current switching contract with current market conditions which would guide the City in formulating a new contract. Additional time is needed to review the recommendations of SRF which will be released on July 15th, 2020 and to determine the methodology for formulating a new contract. In order to guarantee switching operations continue beyond the July 14th expiration date of the current contract, an Amendment to the switching services agreement is being proposed to extend the current contract through December 31, 2020.
Strategic Plan Application: Expanding the City of Rochelle Railroad Capabilities to advance Industrial Development and increase railroad revenues.
Recommendation: Approve the Amendment Two to Switching Services Agreement between Burlington Junction Railway and City of Rochelle to allow for an adequate amount of time to review SRF’s recommendations and to pursue the best terms for operations of the City of Rochelle Railroad.
Supporting Documents:
Agenda Item #10 - Ordinance Approving a Purchase and Sale Agreement for the purchase of property located at 1315 West 2nd Avenue
Staff Contact: Jeffrey Fiegenschuh, City Manager/Sam Teserau, City Engineer
Summary: As part of the City’s broader efforts to alleviate drainage issues in the West 2nd Avenue area, staff is proposing that the City purse the house located at 1315 West 2nd Avenue for $12,500 plus closing costs. If approved, the house will be demolished, and a small storm drainage basin will be installed in the location.
In the past, this location has been cited for various code violations and the house is a detriment to the neighboring property values. As part of the current work going on in the area, our team feels this component will solve localized flooding concerns, while simultaneously helping to improve the aesthetics and property values of the neighborhood.
Strategic Plan Goal Application: Continued investment in Infrastructure
Recommendation: Approve an Ordinance Approving a Purchase and Sale Agreement with Kathleen M. Hollonbeck for the purchase of property located at 1315 West 2nd Avenue
Supporting Documents:
pdf Ordinance Approving a Purchase and Sale Agreement with Kathleen M. Hollonbeck (135 KB)
pdf Purchase and Sale Agreement (238 KB)
Agenda Item #11 - Ordinance Continuing the Temporary Suspension of Late Fees as Identified in Chapter 98 Article I of the Rochelle Municipal Code
Staff Contact: Jeff Fiegenschuh
Summary: Due to the Covid-19 Pandemic and the effects it is having on our local economy, I am requesting that you approve an ordinance extending the waiver of late fees for RMU customers through August 31st, 2020. The ordinance also allows the City Manager to approve the waiver of all late fees for an additional 30 days through September 30, 2020 if it is warranted.
Recommendation: Approve an Ordinance Continuing the Temporary Suspension of Late Fees as Identified in Chapter 98 Article I of the Rochelle Municipal Code through August 31st with the option of one 30 day extension
Supporting Documents:
