City Council Meeting Agenda May 11, 2015

City of Rochelle Council Chambers

420 N 6th Street, Rochelle IL  61068

I. CALL TO ORDER:

• Pledge to the Flag

• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

pdf Police Week May 10-16, 2015 (44 KB)

IV. REPORTS AND COMMUNICATIONS:

• Mayor

• Council Members

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:

a) Approve Minutes of City Council Meeting – pdf April 27, 2015 (215 KB)

b) Approve Minutes of Special City Council Meeting – pdf April 30, 2015 (65 KB)

c) Approve Bills – pdf 041715-042315 (109 KB) pdf 042415-043015 (93 KB)

d) Approve Payroll – pdf 041315-042615 (53 KB)

e) Reappoint Bruce McKinney to the Office of City Clerk for a Term to Expire April 30, 2019

f) Reappoint Chris Frye to the Office of City Treasurer for a Term to Expire April 30, 2019

g) Reappoint Chris Frye as the Treasurer for the Police and Fire Pension Boards for a Term to Expire April 30, 2019

h) pdf Approve Ordinance Amending Section 6-46 of the Municipal Code to Delete One Beer & Wine Liquor License (Fairways Golf LLC) (24 KB)

i) pdf Approve Ordinance Amending Section 6-46 of the Municipal Code to Create One Restaurant/Recreation Liquor License (Fairways Golf LLC) (25 KB)

j) pdf Approve VFW Request to hold a Poppy Drive at 4th Avenue and Lincoln Highway - May 23, 2015 (19 KB)

2) 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

3) 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

4) Re-subdivision of Rochelle Community Hospital

5) Consent to Financing of Rochelle Energy LLC by Caterpillar Financial Services Corporation

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT


Agenda Item #2 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 (313 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.

On April 27th the Rochelle City Council tabled action on the ordinance until the May 11th meeting.

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:

Consider 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 #3 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 (309 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.

On April 27th the Rochelle City Council tabled action on the ordinance until the May 11th meeting.

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 #4 Re-subdivision of Rochelle Community Hospital

References:

pdf Memo from Building Inspector Kip Countryman (67 KB)

Recommended Action:

Consider the Preliminary and Final Plat

History and Fact:

Rochelle Community Hospital has purchased four properties adjacent to its facility in the past year and demolished five dwellings to prepare for an expansion. To facilitate this expansion the Mayor and Council approved the rezoning of the properties and the issuance of a special use permit to allow expansion of the campus for health care services. The hospital property is located between North 2nd Street and North 3rd Street from 8th Avenue to 10th Avenue.

Discussion:

Rochelle Community Hospital has submitted a preliminary and final plat of subdivision for the property to subdivide 10 properties into one, eliminate past easements granted to the City and plat new easements require for future development.

On May 4th the Planning and Zoning Commission held a public hearing to review the petition. After a review of the facts, the commission voted 4-0 to recommend approval of the preliminary and final plat.

Recommendation:

Approve the Preliminary and Final Plat for the Re-subdivision of Rochelle Community Hospital


Agenda Item #5 Consent to Financing of Rochelle Energy LLC by Caterpillar Financial Services Corporation

References:

pdf Consent to Financing (195 KB)

Recommended Action:

Consider Consent to Financing of Rochelle Energy LLC by Caterpillar Financial Services Corporation

History and Fact:

In August of 2010, the City entered into a Power Purchase Agreement with Rochelle Energy Center, LLC, whereby the City agreed to purchase electric power and environmental attributes generated by a methane-gas power plant located at the Rochelle Landfill. Part of the Power Purchase Agreement prevented Rochelle Energy Center, LLC, from assigning its rights in the contract to a third party without the City’s consent. On September 22, 2014, the City consented to the assignment of the Power Purchase Agreement rights to Rochelle Energy, LLC, a subsidiary of Evensol. The rights assigned contained substantively the same provisions as the Power Purchase Agreement, including the right to consent to any collateral assignments for financing purposes.

Discussion:

Rochelle Energy, LLC, is seeking to finance its acquisition and operation of the methane-gas power plant through Caterpillar Financial Services Corporation (Cat Financial). As part of their effort to obtain financing, Rochelle Energy, LLC, needs the City’s consent to a collateral assignment of the rights under the Power Purchase Agreement to Cat Financial. City Attorney, Alan Cooper, has worked with attorneys for Rochelle Energy and Cat Financial to draft a consent agreement. The Consent Agreement leaves in place the substantive protections included in the Power Purchase Agreement, as well as the Site Lease and the Landfill Gas Purchase Agreement to which the City is a consenting party.

Recommendation:

Approve the Consent Agreement between the City of Rochelle and Caterpillar Financial Services Corporation.