City Council Meeting Agenda April 27, 2015

City of Rochelle Council Chambers   *** Revised 04/25/2015***

420 N 6th Street, Rochelle, IL  61068

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

  • Swearing In Recently Elected Council Members

III. PROCLAMATIONS, COMMENDATIONS, ETC:

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

• Financials - pdf March 2015 (753 KB)

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf April 13, 2015 (119 KB)

b) Approve Bills – pdf 040315-040915 (78 KB) , pdf 041015-041615 (76 KB)

c) Approve Payroll – pdf 033015-041215 (52 KB)

d) Authorize National Day of Prayer –  pdf May 7, 2015 (268 KB)

e)  pdf Ordinance Amending Section 6-46 of the Municipal Code to Delete One Restaurant/Recreation Liquor License (Beacon on the Green) (24 KB)

f)  pdf Ordinance Amending Section 6-46 of the Municipal Code to Create One Restaurant Beer & Wine Liquor License (Fairways Golf LLC) (25 KB)

g) Authorize VFW Memorial Day Parade – pdf May 25, 2015 (56 KB)

h)  pdf Cable Television Franchise Agreement Extension (6 KB)

i)  pdf Illinois Route 38 and Lincoln Highway Signal Modification Project (172 KB)

2) Amended and Restated Annexation Agreement – Creekside Development (Public Hearing and Action)

3) Public hearing concerning the intent of the City Council to sell not to exceed $3,000,000 Debt Certificates to pay the costs of constructing and equipping an approximately 31,000 square foot recreation center, including but not limited to a fitness center, basketball court, community lounge, running track, group exercise area, childcare facilities, classroom, and locker room facilities, site work, storm water drainage and management facilities, constructing and paving an adjacent parking lot, landscaping and acquiring, constructing and installing related utilities and for the payment of the expenses incident thereto.

4) 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

5) 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

6) Intergovernmental Agreement between the City and Ogle-Lee Fire Protection District

7) Engineering Agreement for System 1 Sanitary Sewer Replacement Veteran’s Parkway and South Main Street

8) Supplemental Amendment to Preliminary/Construction Engineering Agreement – Wiscold Drive Improvement Project

9) Switching Services Agreement with Burlington Junction Railway, LLC - City of Rochelle Railroad

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT


 

Agenda Item #2 Amended and Restated Annexation Agreement – Creekside Development (Public Hearing and Continuance)

References:

pdf Memo from Building Inspector Kip Countryman (98 KB)
pdf Amended and Restated Annexation Agreement (1.51 MB)
pdf Exhibit B (267 KB)
pdf Ordinance Approving Amended and Restated Annexation Agreement (69 KB)

Recommended Action:

Conduct Public Hearing 

Consider Amended and Restated Annexation Agreement

History and Fact:

In April of 2006 the City and Wyndham Foxford, LLC, entered into an annexation agreement providing for the development of Kings Crossing, a residential subdivision to be located west and northwest of Rochelle Township High School on 493 acres of land. Since that time council has approved four amendments to the annexation agreement to facilitate development in the area including San Gabriel Assisted Living facility and Lincoln Elementary School.

Discussion:

The current owner and developer of the property, Creekside LLC, has submitted a petition to amend and restate the Annexation Agreement in regards to the future development of Kings Crossing. Due to economic conditions, the developer is asking for relief of certain requirements in the agreement that pertain to infrastructure as follows:
1. Rezone Tract #2 of exhibit B to Rural Development.
2. Apply the Rochelle Municipal Code that is in effect at the time of Development to the property unless a previously subdivided lot would be rendered non-conforming solely because of a change in the code. If the City adopts a less restrictive Code, that Code will apply to the development.
3. Waive the City’s right for reimbursement for its own professional fees, including legal and engineering fees.
4. Waive school impact fees until the 16th and subsequent house is built in any given year.
5. Negotiate the amounts attributed to adjacent property owners for future improvements that benefit other properties.
6. Negotiations over the size and placement of water mains would be reserved for the time development occurs. Additionally, waive the requirement of the water main loop during the development of Tract #1.
7. Waive sewer connection fees until the 16th and subsequent house is constructed in Tract #1 in any calendar year.
8. Construction of electric services by the City, at the City’s cost, for the first 15 houses constructed in Tract #1 during any calendar year.
9. Installation of the required street lights by the City, at the City’s cost, during the development of Tract #1. During development of any other Tract, the City would install the street lights at the Developer’s cost.
10. Allow the construction of 4 foot sidewalks instead of 5 foot sidewalks and the construction of a shared use path on one side of the roadway.
11. Construction of 900 feet of roadway by the City, at the City’s cost, to extend 20th street beyond its current terminus. In addition, allow the minor streets to be 31 feet back to back, with 12 inches of rock, and 3 inches of asphalt instead of 39 feet back to back, and 5 inches of asphalt as required by Code.
12. Waive the numerous perimeter and offsite improvements to Flagg Road, Queens Road, and signalization improvements during the construction of Tract #1.
13. Negotiate the right of recapture for future off-site perimeter road improvements at the time the improvements are required.
14. Waive storm water management fee for the remainder of the property.
15. Limit the number of acres required for regional stormwater detention to the number of acres required for to provide detention for the subject property only.
16. Remove the requirement for a special service area.

On April 6th the Planning & Zoning Commission held a Public Hearing on the petition of Creekside to amend the annexation agreement. After a review of the facts, including the lack of new residential construction over the past ten years, the Planning & Zoning Commission voted 5-2 to recommend approval of the Amended and Restated Annexation Agreement.

Recommendation:

Conduct Public Hearing
Authorize an Ordinance Approving an Amended and Restated Annexation Agreement for Creekside LLC


 

Agenda Item #3 Public hearing concerning the intent of the City Council to sell not to exceed $3,000,000 Debt Certificates to pay the costs of constructing and equipping an approximately 31,000 square foot recreation center, including but not limited to a fitness center, basketball court, community lounge, running track, group exercise area, childcare facilities, classroom, and locker room facilities, site work, storm water drainage and management facilities, constructing and paving an adjacent parking lot, landscaping and acquiring, constructing and installing related utilities and for the payment of the expenses incident thereto.

References:

pdf Notice of Public Hearing (204 KB)
pdf Public Hearing Minutes (195 KB)

Recommended Action:

Conduct Public Hearing

History and Fact:

Members of the Rochelle Recreational Facility Task Force have been meeting for several months with the goal of building a recreational facility in Rochelle. As a result of the group’s efforts a market research analysis and community program gap analysis have been completed. In addition, task force members have visited YMCA sites and developed a conceptual facility floorplan and budget.

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 between the parties provides for the purchase or long-term lease of property, design and construction of the recreational center, and contribution by each of the parties of one-half of the cost of property, design and construction (estimated at approximately $6 million).

Discussion:

The proceeds of the Certificates will be used to pay the costs of constructing and equipping an approximately 31,000 square foot recreation center, including but not limited to a fitness center, basketball court, community lounge, running track, group exercise area, childcare facilities, classroom, and locker room facilities, site work, storm water drainage and management facilities, constructing and paving an adjacent parking lot, landscaping and acquiring, constructing and installing related utilities and for the payment of the expenses incident thereto. The Project will be owned jointly by the City and the Flagg-Rochelle Community Park District and leased to one or more not for profit corporations to be determined by the District and the City. The Project will be located on the West side of 20th Street, South of the intersection of 20th Street and Hub Drive, and North of the intersection of 20th Street and Flagg Road.

Recommendation:

Conduct Public Hearing


 

Agenda Item #4 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 (315 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.

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:

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 $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 #5 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 (311 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.

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 #6 Intergovernmental Agreement between the City and Ogle Lee Fire Protection District

References:

pdf Intergovernmental Agreement between the City and Ogle Lee Fire Protection District (69 KB)

Recommended Action:

Consider an Intergovernmental Agreement between the City and Ogle Lee Fire Protection District

History and Fact:

The City Council approved an Intergovernmental Agreement with Ogle Lee Fire Protection District on November 25, 2002. Through this agreement the City of Rochelle provides fire protection, rescue and ambulance services to the Ogle/Lee Fire Protection District. In 2008 the parties extended the agreement for two years with the same terms and conditions. In 2010 the City and District negotiated a five year agreement which included an increase in the compensation. The base amount for the first year was increased to $45,000 and a formula was established for the four subsequent years which adjusted the compensation annually based upon the increase or decrease of the equalized assessed value (EAV) of the Ogle Lee Fire Protection District.

Discussion:

A new three year agreement has been negotiated between representatives of the City and Ogle Lee Fire Protection District. The contract continues to provide for the day-to-day administration of the Ogle/Lee-City Departments as a single entity under the direction of the City’s Fire Chief and City Manager. The proposed agreement includes an increase in the compensation to $60,000 per year at a rate of $5,000 per month. In addition, the District Trustees will call for an Ambulance Service Referendum requesting a special tax levy not to exceed .30% of the value of all taxable property in March of 2016. If the referendum is passed, the District will increase its monthly payments to the City beginning May 1, 2017 by the amount of the actual cost to the City in providing ambulance and rescue services to the District, including depreciation of equipment, salaries, cost for training, etc. less insurance and cash payments received by the City from residents of the District, as calculated by the City for the prior year. The agreement has already been approved and signed by the Ogle Lee Fire Protection District.

Recommendation:

Approve an Intergovernmental Agreement between City and Ogle Lee Fire Protection District


 

Agenda Item #7 Engineering Agreement for System 1 Sanitary Sewer Replacement Veteran’s Parkway and South Main Street

References:

pdf Memo from Superintendent of Water/Water Reclamation Adam Lanning (139 KB)
pdf Engineering Agreement (292 KB)

Recommended Action:

Consider an Engineering Agreement with Willett Hofmann & Associates for System 1 Sanitary Sewer Replacement Veteran’s Parkway and South Main Street.

History and Fact:

RMU’s System 1 sanitary sewer is a 24” diameter line that begins at the System 1 lift station, located at the south end of the Water Reclamation Plant, and runs along Veteran’s Parkway, South Main Street and Steam Plant Road. This sewer line is over 55 years old and handles an average daily flow of 825,000 gallons, including primarily Hormel Foods and flow from the Cleveland and Caron Road lift stations.

RMU staff members have determined that approximately 3,200 feet of this line needs to be replaced due to deterioration caused by hydrogen sulfide gas from industrial strength waste reacting with the cement. RMU has discontinued any jetting and cleaning maintenance of this sewer line because the pressure of the jetter chips away at the softened surface of the concrete. In addition to the structural concerns, RMU has seen a significant increase in flow during rain events, increasing to as much as 1,300,000 gallons per day.

Discussion:

At the request of RMU staff, Willett Hofmann & Associates has submitted an engineering agreement for the design and construction observation of a sewer main replacement project. The project includes the replacement of the existing 24” sanitary sewer on Veteran’s Parkway from IL Route 251 to South Main Street and on South Main Street from Veteran’s Parkway to the sanitary sewer manhole where the Hormel sanitary sewer connects.

Superintendent of Water/Water Reclamation Adam Lanning recommends proceeding with the scope of work as outlined at a cost of $150,000.

The total cost of this project including design and construction costs is estimated at $585,000 and is included in the proposed 2015/16 Water Reclamation Capital Outlay Budget.

Recommendation:

Authorize the City Manager to sign an Engineering Agreement with Willett Hofmann & Associates for System 1 Sanitary Sewer Replacement Veteran’s Parkway and South Main Street.


 

Agenda Item #8 Supplemental Amendment to Preliminary/Construction Engineering Services Agreement – Wiscold Drive Improvement Project

References:

pdf Memo from City Engineer Sam Tesreau (107 KB)
pdf Supplemental Amendment to Preliminary/Construction Engineering Services Agreement – Wiscold Drive Improvement Project (35 KB)

Recommended Action:

Consider a Supplemental Amendment to Preliminary/Construction Engineering Services Agreement for Services related to the Wiscold Drive Improvement Project

History and Fact:

In 2009, in association with the expansion of Sara Lee Corporation, the City of Rochelle submitted a grant application to the Illinois Department of Transportation (IDOT) for Economic Development Program (EDP) funds to assist with 3,000 feet of roadway upgrades along Wiscold Drive. The City subsequently received an award letter committing EDP funding of up to 50% of the Wiscold Drive improvements and associated expenses in an amount not to exceed $1,123,860. In addition, a Truck Access Route Program grant has also been received towards this project.

The original plan for roadway upgrades maintained the existing alignment along Wiscold Drive from Caron Road to Americold Drive. In March of 2014, due to the exorbitant cost to relocate and lower the existing BP pipeline, the Mayor and Council approved a new alignment through property owned by the City south of the existing Wiscold Drive. This change will result in Wiscold Drive intersecting with Caron Road at the current Steam Plant Road location.

Discussion:

The Mayor and Council approved an agreement with Fehr Graham in 2012 to provide preliminary engineering services. Due to the change in the project limits, along with the timeframe of the original agreement, Fehr Graham has requested to amend the original engineering services agreement. This request will update their fee schedule for 2015 and the cost for services described in the agreement to a lump sum, not to exceed fee of $151,000.

Construction is currently underway on the Wiscold Drive project with completion expected by September of this year. This is a multi-year project which will be funded through available EDP, Motor Fuel Tax, City Sales Tax and Utility Tax Funds for the local agency portion of the infrastructure construction, construction engineering and other related expenses.

Recommendation:

Authorize the City Manager to sign a supplemental amendment to the agreement between the City and Fehr Graham related to the Wiscold Drive Improvement Project.


 

Agenda Item #9 Switching Services Agreement with Burlington Junction Railway, LLC – City of Rochelle Railroad

References:

pdf Memo from Economic Development Director Jason Anderson (30 KB)
pdf Switching Services Agreement (265 KB)

Recommended Action:

Consider a Switching Services Agreement with Burlington Junction Railway, LLC – City of Rochelle Railroad

History and Fact:

Over the past ten years the City Industrial Rail (CIR) has undergone significant changes. During this ten year period the City and Ryder had an operating agreement which governed the switching and maintenance of the CIR. Seven years ago Ryder subcontracted the switching operations to the Burlington Junction Railway (BJRY) out of Burlington Iowa. The BJRY operates in seven locations across the Midwest and is considered to be one of the premier Short line switching operators in the country.

Discussion:

With the expiration of the operating agreement between Ryder and the City on April 16, 2015 the City entered into an interim agreement with the BJRY to operate the CIR under the City of Rochelle until the City Council approves a new five year operating agreement between the City and BJRY. The new operating agreement has defined new revenue allocations which include the City receiving 25% of the switch absorption fees into the railroads general funds and an additional 15% to be deposited in the CIR Capital Improvements funds. Additionally the City receives 100% of the storage fees for customers who have a need for temporary storage of rail cars.

The City Manager and Staff recommend the City Council approve the five year agreement with the BJRY for the switching and maintenance services on the CIR per the agreement.

Recommendation:

Approve a Switching Services Agreement with Burlington Junction Railway, LLC