City Council Meeting Agenda August 25, 2014

Monday, August 25, 2014 at 7:00 p.m.

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

•  pdf Financials – July 2014 (847 KB)

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting –  pdf July 28, 2014 (478 KB)

b) Approve Minutes of City Council Meeting -  pdf August 11, 2014 (184 KB)

c) Approve Bills – pdf 080114-080714 (94 KB) , pdf 080814-081414 (98 KB)

d) Approve Payroll – pdf 072114-080314 (141 KB) pdf 080414-081714 (34 KB)

e) Authorize Rochelle Township High School Homecoming Parade –  pdf September 25, 2014 (404 KB)

2) Addition of Territory to the Lee County Enterprise Zone #9 – Project Red Carbon Green (Public Hearing)

3) Well #4 Rehabilitation Project

4) Consideration and Action on an Ordinance Providing for the Issuance of Not to Exceed $6,000,000 Electric Revenue System Bonds to Finance Improvements to the City's Electric System

5) Industrial Rail Improvement – Caron Road Crossing Restoration

6) Ordinance Ratifying and Authorizing Water Tower Leases for Telecommunication Purposes (Sprint Nextel Lease, T-Mobile Lease and Verizon Lease)

7) Supplementary Resolution for Maintenance of Streets and Highways – Sealcoat Project 2014

8) Ordinance Authorizing Purchase of Real Estate for Public Purpose – 421 and 421 ½ North 6th Street

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT


Agenda Item #2 Addition of Territory to the Lee County Enterprise Zone #9 – Project Red Carbon Green (Public Hearing)

References:

pdf Notice of Public Hearing (47 KB)
pdf Ordinance Amending Ordinance No. 01-3051 – Enterprise Zone (8 KB)
pdf Amendment #17 to Intergovernmental Agreement (80 KB)
pdf Site Location Map (257 KB)

Recommended Action:

Conduct the Public Hearing for the Addition of Territory to the Lee County Enterprise Zone #9

History and Fact:

On December 23, 1986 the City of Dixon and County of Lee entered into an Intergovernmental Agreement to provide for the administration of an enterprise zone encompassing contiguous portions of the City of Dixon and County of Lee. The agreement was subsequently amended to include the City of Amboy, Village of Ashton, Village of Franklin Grove, Village of Paw Paw, City of Rochelle and Ogle County. As part of the agreement the government units included have indicated their willingness and desire to extend the boundaries of the Lee County Enterprise Zone to include additional properties, alter incentives, and alter the termination date of the zone.

Discussion:

The Lee County Enterprise Zone plans to submit an application to the State of Illinois to expand the zone by 45 acres. This territory expansion includes a portion of the Centerpoint Intermodal Center (Rochelle Phase One), north of Route 38 West, which is anticipated to house the new Project Red Carbon Green facility. Enterprise Zone Administrator John Thompson will be in attendance to conduct the Public Hearing, provide additional information and answer questions. The associated ordinance and resolution will be included on the September 8, 2014 Rochelle City Council agenda for action by the Mayor and Council.

Recommendation:

Conduct the Public Hearing for the Addition of Territory to the Lee county Enterprise Zone #9


Agenda Item #3 Well #4 Rehabilitation Project

References:

pdf Recommendation from Willett Hofmann & Associates (2.88 MB)

Recommended Action:

Consider bids for the Well #4 Rehabilitation Project

History and Fact:

The existing pump and motor for Well #4 were last overhauled in 2005. At that time the new pump and motor pulled 1100 gallons per minute from the well. Since late last year, the production of Well #4 has been on a steep downward slope. This indicates that the pump and motor need to be overhauled again.
Discussion: Subsequent to the required public notice, the Deputy City Clerk opened four bids for the project on August 14th. Staff and our consultant, Matt Hansen, from Willett Hofmann & Associates have reviewed the bids and recommend the acceptance of the lowest responsible bid from Water Well Solutions Illinois Division in the amount of $28,500.

The RMU Water Capital Outlay Budget for Fiscal Year 14/15 includes $70,000 for the pump and motor rehabilitation at Well #4.

The pump and motor will not be pulled until September or October so that the well is available for the remainder of the summer.

Recommendation:

Accept the bid of $28,500 from Water Well Solutions Illinois Division for the Well #4 Rehabilitation Project and reject all other bids.


Agenda Item #4 Consideration and Action on an Ordinance Providing for the Issuance of Not to Exceed $6,000,000 Electric Revenue System Bonds to Finance Improvements to the City's Electric System

References:

pdf Memo from Finance Manager Chris Frye (86 KB)
pdf Ordinance Providing for the Issuance of Electric System Revenue Bonds (379 KB)

Recommended Action:

Consider an Ordinance providing for the issuance of not to exceed $6,000,000 electric revenue system bonds to finance improvements to the City's electric system

History and Fact:

On April 28th the Mayor and City Council approved the Fiscal Year 2014-15 Budget. This budget includes multiple projects in the Electric Fund Capital Outlay Summary that are anticipated to be funded through the issuance of bonds. On July 14th the Mayor and City Council approved a Reimbursement Resolution that allows costs for projects related to the City's electric system, within 60 days prior to or any time after the passage of the resolution, to be reimbursed to RMU Electric through bond proceeds.

Discussion:

The RMU Electric Department has identified the following capital projects for potential funding through an electric revenue bond not to exceed $6 million dollars:

1) Purchase and installation of diesel generators - $2 million dollars
2) Design, engineering, site preparation, improvement and expansion to the Caron Road Substation - $4 million dollars

The attached Parameters Ordinance is the next step in issuing the bonds. It stipulates a maximum maturity date of May 1, 2035, maximum bond issue amount of $6 million dollars, maximum annual interest rate of 7%, issue date of no later than February 1, 2015 and that the bonds will be executed on behalf of the City by the Mayor.

Recommendation:

Approve an Ordinance providing for the issuance of not to exceed $6,000,000 Electric Revenue System Bonds, Series 2014, of the City of Rochelle, Ogle and Lee Counties, Illinois, and a bond order in connection therewith, and providing for the collection, segregation and distribution of the revenues of the electric system of the City.


Agenda Item #5 Industrial Rail Improvement – Caron Road Crossing Restoration

References:

pdf Memo from Economic Development Director Jason Anderson (29 KB)

Recommended Action:

Consider quote for Caron Road Crossing Restoration

History and Fact:

On June 30th the Mayor and Council considered bids for two projects to expand the City Industrial Rail (CIR), a one-half mile extension of a mainline track and an additional "yard track" at the UP interchange yard. The City Council subsequently awarded both projects to Swanson Construction Company at a total cost of $856,057. This amount was $200,000 under the engineer's estimates for the projects. Therefore, funds that were budgeted for these two projects are available for further enhancements to the rail system.

Discussion:

Over the past 4 years the City has been making temporary repairs to the Caron Road rail crossing that carries Burlington Northern Sante Fe (BNSF) railcars from the mainline into the Ryder/CIR Yard. Due to the increased traffic on the crossing, the crossing has rapidly deteriorated to the point that it needs to be completely removed and replaced with new crossing panels.

Swanson Construction has provided an estimate of $145,000 for the crossing restoration. Since Swanson is already on site and has proven to be an excellent rail contractor, staff recommends that the City Council waive the competitive bidding process by a two-thirds vote of all members holding office and award the Caron Road crossing restoration to Swanson Construction. Upon approval, Swanson Construction will complete the restoration within the current construction season.

Recommendation:

Waive the competitive bid process for the Caron Road crossing restoration project and accept the proposal from Swanson Construction in the amount of $145,000 for the crossing restoration.


Agenda Item #6 Ordinance Ratifying and Authorizing Water Tower Leases for Telecommunication Purposes (Sprint Nextel Lease, T-Mobile Lease and Verizon Lease)

References:

pdf Ordinance Ratifying and Authorizing Water Tower Leases (63 KB)
pdf Verizon Wireless Lease (792 KB)

Recommended Action:

Consider Ordinance Ratifying and Authorizing Water Tower Leases for Telecommunication Purposes (Sprint Nextel Lease, T-Mobile Lease and Verizon Lease)

History and Fact:

The City currently has two leases with telecommunication providers for space on the City's water tower and ground space below at 700 2nd Avenue. The City entered into leases with Sprint Nextel on June 1, 2000 and T-Mobile on June 11, 2005. Both leases have an initial term of five years and three automatic 5-year renewal terms. In addition, the leases both specify an initial rent payment with annual increases of 4% after the first year. The City currently receives monthly rental payments of $2,124.31 from the Sprint Nextel Lease and $2,189.71 from the T-Mobile Lease.

Discussion:

The City has negotiated an additional water tower lease with Verizon Wireless for a 5-year term with four automatic 5-year renewal terms and an initial rental payment of $2,200 monthly. In addition the lease specifies an annual increase of 4% after the first year.

The lease requires Verizon Wireless to contract with Dixon Engineering to review the plans and contract with an on-site inspector during the installation. These measures are taken to ensure that the installation of this equipment does not result in any damage to the tower.

When the Sprint Nextel and T-Mobile leases were approved an ordinance was not adopted. Therefore, the proposed ordinance will ratify the execution of the two existing leases and authorize the City Manager to execute the proposed Verizon Lease.

Recommendation:

Approve an Ordinance Ratifying and Authorizing Water Tower Leases for Telecommunication Purposes (Sprint Nextel Lease, T-Mobile Lease and Verizon Lease)


Agenda Item #7 Supplementary Resolution for Maintenance of Streets and Highways – Sealcoat Project 2014

References:

pdf Memo from City Engineer Sam Tesreau (31 KB)
pdf Supplementary Resolution for Maintenance of Streets and Highways (27 KB)

Recommended Action:

Consider a Supplementary Resolution for Maintenance of Streets and Highways

History and Fact:

On April 28th the Mayor and Council awarded the 2014 Sealcoat project to Steffens 3-D Construction. In addition, the council approved the associated Resolution for Maintenance of Streets and Highways which appropriated $136,000 of motor fuel sales tax to fund the improvements.

Discussion:

The contract with Steffens allowed the City to add or delete sections up to a certain percentage of the contract quantity. During the project the Engineering Department evaluated certain areas, found them to be relevant to the project, and added those sections to the contract. The project was completed at the beginning of August at a total cost of $154,000. Therefore, a supplementary resolution of $18,000 is required to fund the balance through a transfer from the Motor Fuel Tax funds.

Recommendation:

Approve a Supplementary Resolution for Maintenance of Streets and Highways in the amount of $18,000


Agenda Item #8  Ordinance Authorizing Purchase of Real Estate for Public Use – 421 and 421 ½ North 6th Street

References:

pdf Ordinance Authorizing Purchase of Real Estate for Public Use (421 and 421 ½ North 6th Street) (2.34 MB)

Recommended Action:

Consider Purchase of Real Estate

History and Fact:

Wegener Auctions sold the property located at 420 North 6th Street through a real estate auction on August 7th. City Manager Plyman, on behalf of the City of Rochelle, offered a bid of $57,500 for the property. The following day the City Manager entered into a contract for purchase at that price, subject to approval by the City Council.

Discussion:

This property is located directly north of the Engineering and Building Services facility and will be used in the future for an expansion of City offices or additional parking. Upon approval of the purchase by the Mayor and City Council, a closing will take place prior to September 8th.

The 2014-15 Capital Improvements Fund includes $50,000 for the purchase of property to expand the Engineering Department.

Recommendation:

Approve an Ordinance Authorizing Purchase of Real Estate for Public Use (421 and 421 ½ North 6th Street)