The Illinois Department of Commerce and Economic Opportunity has grant funds available through the Community Development Assistance Program (CDAP) that may be used to finance public improvements which support economic development. This includes water or sewer system upgrades to serve new and/or expanding businesses.

Discussion:

Over the past few years, several industries have located, or plan to locate, in the southeast quadrant of the City, south of I88 and east of South Main. Project True Grit, a large rail served manufacturing/processing plant, is also considering the southeast quadrant as a location for their new facility. In order to continue meeting the sanitary sewer needs in that region, the construction of an additional lift station on Caron Road is required. The City is seeking $300,000 in CDAP grant funds to facilitate the development of True Grit which combined with the CDAP grant awarded for the Nippon Sharyo will fund over half the cost of the lift station. Additional grant funds are being sought to finance the balance of the cost.

Recommendation:

Conduct the Required Public Hearing

Approve Resolution of Support for Community Development Assistance Program Grant associated with Project True Grit

Agenda Item #3 - Purchase of Cab & Chassis - Street Department

References:

default Attached Memo from Don Elliott, Superintendent of Streets, Cemetery & Airport

Recommended Action:

Consider bids for the purchase of a cab and chassis for the Street Department.

History and Fact:

The 2011-12 General Fund Capital Budget includes $68,000 for the purchase of a one ton cab and chassis (equipped with a dump box, hydraulics, plow and spreader) for the Street Department. The new truck will replace a 1999 one ton truck equally equipped.

Discussion:

Subsequent to the required public notice, the City opened the following two bids for a one ton cab and chassis on June 16, 2011: Anderson Rock River Ford $33,637 and Prescott Brothers Ford $35,667. Both of these bids take into consideration the trade-in value of the existing truck as a credit. This vehicle, as specified, is also available through the Illinois Department of Central Management Joint Purchasing Program at a cost of $39,329. City staff reviewed the bids and found that the Anderson Rock River Ford bid did not meet the minimum specifications in at least one area. Superintendent of Streets Don Elliott recommends acceptance of the Prescott Brothers Ford bid of $35,667 due to the guaranteed trade in value.

Recommendation:

Approve the bid from Prescott Brothers Ford, less the trade-in, for a total of $35,667.

Agenda Item #4 - Purchase of Dump Box, Hydraulics, Plow and Spreader - Street Department

References:

default Attached Memo from Don Elliott, Superintendent of Streets, Cemetery & Airport

Recommended Action:

Consider bids for the purchase of a dump box, hydraulics, plow and spreader for the Street Department.

History and Fact:

As stated in the previous agenda item, the 2011-12 General Fund Capital Budget includes $68,000 for the purchase of a one ton cab and chassis equipped with a dump box, hydraulics, plow and spreader for the Street Department. The equipment specified in this bid will be installed on the one ton cab and chassis approved in the previous agenda item.

Discussion:

Subsequent to the required public notice, the City opened a single bid submitted for a dump box, hydraulics, plow and spreader on June 16, 2011. Superintendent of Streets Don Elliott has reviewed the bids and recommends the acceptance of the apparent low bidder, Bonnell Industries, with a bid of $31,791 for the purchase and installation of a new dump body, plow, spreader and hydraulic system on the one ton cab and chassis previously approved.

Recommendation:

Approve the bid from Bonnell Industries for a total of $31,791.

Agenda Item #5 - Purchase of 4 x 4 Regular Cab Pickup Truck with Plow - Street Department

References:

default Attached memo from Don Elliott, Superintendent of Streets, Cemetery & Airport

Recommended Action:

Consider bids for the purchase of a 4x4 regular cab pickup truck with plow for the Street Department.

History and Fact:

The 2011-12 General Fund Capital Budget includes $34,000 for the purchase of a ¾ ton 4x4 pickup truck for the Street Department. The new truck will replace a 1996 pickup truck equipped with a plow and endgate lift.

Discussion:

Subsequent to the required public notice, the City opened the following three base bids for a 4x4 regular cab pickup truck with plow on May 19, 2011: Sawicki Motors $30,830, Prescott Brothers Ford $32,465.30 and Anderson Rock River Ford $33,186. In addition the dealers provided trade in allowances and options for diesel engine and endgate lift upgrades. This vehicle, as specified in the base bid, is also available through the Illinois Department of Central Management Joint Purchasing Program at a cost of $28,569. City staff reviewed the bids and found that Sawicki Motors does not meet the specifications in multiple areas. Superintendent of Streets Don Elliott recommends the acceptance of the Prescott Brothers Ford bid of $32,465.30 with the endgate lift option of $2,591 minus the guaranteed trade in allowance of $3,500 for a total of $31,556.30 in order to keep the purchase local.

Recommendation:

Approve the bid from Prescott Brothers Ford, including the endgate lift option and trade-in allowance, for a total of $31,556.30.

Agenda Item #6 - Electric Revenue Requirements, Cost of Service and Rate Design - RMU

References:

default Attached Proposal from Baker Tilly for Consulting Services

Recommended Action:

Consider a proposal from Baker Tilly Virchow Krause, LLP for consulting services related to electric revenue requirements, cost of service and rate design for RMU

History and Fact:

The cost of service methodology used to determine the rates for Rochelle Municipal Utilities (RMU) electric customers was last accomplished in 1998. Since that time the method for providing electricity, diversity of RMU customers and the upcoming Prairie State Project have significantly changed the electric business at RMU.

Discussion:

Interim City Manager Meggon McKinley requested that Utility Advisory Board Member Ray Schwartz obtain a proposal from an outside source for an electric rate study. The purpose of this study is to ensure that RMU continues to remain competitive in the electric market based on cost of service and customer base. Mr. Schwartz contacted Russ Hissom of Baker Tilly for a proposal based on Mr. Hissom's involvement and the firm's support during the 1998 rate design. Baker Tilly has identified a scope of services for revenue requirements, cost of service and rate design for a fee not to exceed $27,590. Pending approval of the proposal, Baker Tilly will prepare a final report and recommendations to be presented to the City in fall of 2011.

Recommendation:

Authorize the City Manager to engage the firm of Baker Tilly for consulting services

related to electric revenue requirements, cost of service and rate design for RMU

Agenda Item #7 - Resolution for Caron Road Improvement Under the Illinois Highway Code

References:

default Attached memo from Sam Tesreau, City Engineer

default Attached Resolution for Improvement by Municipality Under the Illinois Highway Code

Recommended Action:

Consider a Resolution for Improvement by Municipality Under the Illinois Highway Code for Caron Road

History and Fact:

In the 1990's, through an intergovernmental agreement between the City and Ogle County, the County managed a Caron Road improvement project. Ogle County was the lead agency at that time but the jurisdiction of the improvements has since been transferred to the City of Rochelle. The City should have approved a resolution to appropriate Motor Fuel Tax (MFT) funds in the amount of $417,682.23 in conjunction with the project.

Discussion:

The Illinois Department of Transportation (IDOT) recently completed an audit on the Caron Road project and did not find the required resolution. Approval of the resolution will allow IDOT to officially authorize all engineering and/or construction disbursements associated with the project. No additional funds will be disbursed as a result of this resolution.

Recommendation:

Approve a Resolution for Improvement by Municipal Under the Illinois Highway

Code for Caron Road in the Amount of $417,682.23.

Agenda Item #8 - Reduction in Letter of Credit - Lighthouse Pointe Subdivision Route 38 Improvements

References:

default Memo from Sam Tesreau, City Engineer

Recommended Action:

Consider a Reduction in the Letter of Credit for Lighthouse Pointe Subdivision Route 38 Improvements

History and Fact:

An irrevocable letter of credit, No. S2009-121, for $1,958,797.39 was originally submitted to the City of Rochelle by North Route 38 LLC to secure their obligations related to offsite improvements located on and adjacent to Illinois Route 38. In addition, the developer has posted a bond for the improvements with the Illinois Department of Transportation (IDOT) due to IDOT's jurisdiction over the Illinois Route 38 right of way.

Discussion:

Ryan Fitzgerald, representing North Route 38 LLC, has requested a reduction in the letter of credit based on the completion of a portion of the improvements and the fact that there are three levels of surety for the same improvements: the letter of credit, the IDOT bond and the general obligation bonds issued under the TIF District. City Engineer Sam Tesreau has reviewed the request and estimates that there are over $900,000 worth of improvements yet to be completed which are secured by this letter of credit. The IDOT bond does not allow the City to draw on surety funds in the event there is a need which, providing the City's surety is reduced, will leave IDOT in control of the completion of the Route 38 improvements. City Engineer Sam Tesreau recommends that if a reduction in the letter of credit is granted the surety should not be less than 10%, $196,000, of the original surety amount and that a replacement letter of credit be submitted for a period of not less than 24 months prior to release of the original surety. Wal-Mart is also a beneficiary to the irrevocable letter of credit, No. S2009-121, and will have to concur before the surety can be reduced.

Recommendation:

Approve a Reduction in the Letter of Credit for Lighthouse Pointe Subdivision Route 38 Improvements

City Council Agenda June 27, 2011

City of Rochelle Council Chambers 420 North 6th Street, Rochelle, IL 61068

I. CALL TO ORDER:

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

IV. REPORTS AND COMMUNICATIONS:

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

VII. DISCUSSION ITEMS:

VIII. EXECUTIVE SESSION

IX. ADJOURNMENT

BUSINESS ITEMS: DETAIL

Agenda Item #2 - CDAP Grant - Project True Grit (Public Hearing and Action)

Agenda Item #3 - Purchase of Cab & Chassis - Street Department

Agenda Item #4 - Purchase of Dump Box, Hydraulics, Plow and Spreader - Street Department

Agenda Item #5 - Purchase of 4 x 4 Regular Cab Pickup Truck with Plow - Street Department

Agenda Item #6 - Electric Revenue Requirements, Cost of Service and Rate Design - RMU

Agenda Item #7 - Resolution for Caron Road Improvement Under the Illinois Highway Code

Agenda Item #8 - Reduction in Letter of Credit - Lighthouse Pointe Subdivision Route 38 Improvements

City of Rochelle Illinois

City of Rochelle Council Chambers
420 North 6th Street, Rochelle, IL 61068