History and Fact: The owners of Metal Recyclers submitted a letter to the City Council in June requesting permission "to set containers within the City limits to collect construction waste and other needs that require a large tub container." Metal Recyclers is located at 8th Avenue and 20th Street and provides recycling and container services to residents and businesses in the surrounding communities.

Discussion: The City of Rochelle entered into a Waste Collection Agreement with Rochelle Disposal Service in 1995. This agreement provides Rochelle Disposal Service with rights associated with the collection and hauling of waste within the City limits. City Attorney Alan Cooper reviewed the request from Metal Recyclers, the existing Waste Collection Agreement, applicable state statutes and City Code provisions and provided his conclusions to the Mayor and City Council at their meeting on July 25, 2011. Due to the complicated nature of this request, the City Manager recommended referring it to the Administrative Committee for an in-depth discussion. On October 18, 2011 representatives from the City, Rochelle Waste Disposal and Metal Recyclers presented their positions to the Administrative Committee. Following a lengthy discussion, the three members of the Administrative Committee: Councilman Eckhardt, Councilman Rice and Councilwoman Hollonbeck, agreed to recommend denial of the Metal Recyclers request to the City Council.

Recommendation: Deny a request from Metal Recyclers for permission to place disposal containers within the City limits.

Agenda Item #3 - Release of Billboard Easement - Prologis Land LLC

References: default

default Release of Easement

Recommended Action: Consider Release of Billboard Easement

History and Fact: On May 9, 2011 the Mayor and Council approved two billboard lease assignments from Prologis Land to the City of Rochelle. Subsequently, in August of this year, Prologis granted the City an easement so that one of the billboards could be relocated in order to facilitate rail service to the Nippon Sharyo Project.

Discussion: It has since been determined that the billboard, currently located along I-88, cannot be relocated. Instead, the City Industrial Rail will be re-routed around the billboard. City Attorney Alan Cooper recommends releasing the easement since it is no longer required.

Recommendation: Approve Release of Billboard Easement

Agenda Item: #4 First Amendment to Recapture Agreement – Prologis Land LLC

References: default

default First Amendment to Recapture Agreement

Recommended Action: Consider Approving First Amendment to Recapture Agreement

History and Fact: In connection with the annexation of property in 2005, the City of Rochelle and DP Industrial LLC entered into a recapture agreement which designated the Boyle farm as the benefiting property. The agreement included, among other provisions, specific calculations for the recapture of water and sewer improvements along Steward Road. In 2007 DP Industrial assigned its interest in the Recapture Agreement to Prologis Land LLC. Per the agreement, a portion of the recapture amount became due when 28.05 acres of property for the Coated Sand Solutions facility was annexed into the City.

Discussion: Coated Sand Solutions was to pay the recapture amount at the time of property closing from the Boyle family. In preparation for the closing, an error in the original recapture calculations was discovered. Attorneys representing the Boyle family, Coated Sand Solutions, Prologis and the City have since determined the correct amount. In order to correct the recapture formula as it relates to Coated Sand Solutions and future purchases, an amendment to the recapture agreement is necessary.

Recommendation: Approve First Amendment to Recapture Agreement

Agenda Item #5 - Fraternal Order of Police Agreement 2011-2014

References:

default Summary of Tentative Agreement

default Redlined Copy of the Tentative Agreement

Recommended Action: Consider Ratification of Agreement between City of Rochelle and Fraternal Order of Police

History and Fact: The current agreement with Illinois Fraternal Order of Police was due to expire on April 30, 2011. It was extended subject to negotiations and ratification of a new agreement. A tentative agreement, retroactive to May 1, 2011, has been reached for a new three year contract which will expire on April 30, 2014. The tentative agreement was ratified by members of the bargaining group on November 22, 2011.

Discussion: The tentative agreement contains many of the same provisions as the previous agreement. In addition, it incorporates language changes and wage and benefit modifications negotiated during the past several months. Some of the more significant changes include:

Group Insurance:

Effective 1-1-12 employees pay 5% of the premium for employee only coverage and 13% of the premium for family coverage.

Effective 1-1-13 employees pay 10% of the premium for employee only coverage and 14% of the premium for family coverage.

Effective 1-1-14 employees pay 15% of the premium for employee only coverage and 15% of the premium for family coverage.

Wage Schedule:

Effective 5-1-11 a one-time market adjustment of 10% will be added to the dispatch wage scale

Effective 5-1-11, across the board increase of 2.25%.

Effective 5-1-12, across the board increase of 2.75%.

Effective 5-1-13, across the board increase of 3%

Recommendation: Approve Ratification of an Agreement between the City of Rochelle and the Illinois Fraternal Order of Police on Behalf of Rochelle Lodge #127

Agenda Item #6 - IMLRMA Min/Max Contribution Agreement

References:

default Memo from Lynette Fischer, HR/Risk Manager with attachements

default Minimum/Maximum Contribution Agreement

default Ordinance Authorizing the Execution of the IMLRMA Minimum Maximum Agreement

Recommended Action: Consider Ordinance Authorizing Execution of the IMLRMA Minimum/Maximum Contribution Agreement

History and Fact: The City of Rochelle has participated in the Illinois Municipal League Risk Management Association (IMLRMA) property and liability insurance program since 1997. The program covers the following risks: worker's compensation, auto liability, commercial general liability, portable mobile equipment, and the physical damage to auto and property. The program provides an opportunity to reduce our risk management costs through the use of "Minimum/Maximum Premium Program" whereby the City accepts some risk of loss in return for a reduction in premium. Our loss experience has resulted in significant savings in each of the years we have participated.

Discussion: HR/Risk Manager Lynette Fischer has reviewed the renewal proposal and recommends that we accept the net minimum premium of $ 464,819. This premium represents an increase of 4.84% over the previous year. The majority of the premium increase is due to worker's compensation related costs. All coverage limits remain constant for 2011-2012 with the exception of coverage for Rail Operations. The type of endorsement required for this specific operation is unavailable at this time from IMLRMA. Selecting the minimum payment option subjects the City to additional premiums of approximately $167,523 if our claims exceed program limits but, our past experience has not resulted in additional premiums. IMLRMA is offering the option of paying in two installments for an additional ½% fee. The recommendation is to pay the first installment in December of 2011 and the second in April of 2012, prior to the end of the fiscal year, for a total cost of $467,143.10

Recommendation: Approve an Ordinance Authorizing the Execution of the Minimum/Maximum Contribution Agreement.

Agenda Item #7: Reduction in Letter of Credit – Lighthouse Pointe Subdivision

References:

default Memo from City Engineer Sam Tesreau with attachments

Recommended Action: Consider a reduction in the Letter of Credit for Lighthouse Pointe Subdivision

History and Fact: Irrevocable letters of credit No. 08522, 08521, 08520 and 08519 which total $1,578,956.26 were submitted to the City of Rochelle by Spring Creek Development to secure their obligations related to land improvements for Lighthouse Pointe WalMart Addition Subdivision. Based on the completion of a majority of the improvements, Ryan Fitzgerald, representing Spring Creek Development Group, has requested a reduction in the letter of credit.

Discussion: City Engineer, Sam Tesreau, has reviewed the request for a reduction in the letter of credit. A letter outlining remaining conditions required for release of the surety has been sent to Spring Creek. Given that there are additional items to be completed, a new letter of credit for 10% of the total estimated cost of improvements, $157,896, plus an additional $ 139,864 for the remaining street lighting, restoration, erosion control removal, utility and manhole adjustments, grading/backfilling, signage and completion of the as built plans is required by the City to be held for a period of 24 months as guarantee of satisfactory completion. In addition, it appears an extension of the letter of credit of no less than one year will be required to complete the remaining improvements.

Recommendation: Approve a reduction in the Letter of Credit for Lighthouse Pointe Subdivision

Approve an extension of the Letter of Credit for no less than one year

DISCUSSION ITEMS:

Discussion Item #1 - Midyear Financial Report

The City of Rochelle's 2011-2012 budget was adopted by the Mayor and City Council on April 25, 2011. The second quarter of the current fiscal year ended on October 31, 2011. Finance Manager, Chris Frye, will be in attendance to share information on actual revenue and expenditures in relation to the budget, specifically in areas where there are variances.

Discussion Item #2 - Tax Levy 2011-12

Annually the Mayor and City Council are required to adopt a Tax Levy Ordinance and file it with the County Clerk on or before the last Tuesday in December. The Ordinance Levying Taxes for the City of Rochelle 2011-12 will be included as a business item on the December 12, 2011 City Council Meeting. Finance Manager, Chris Frye, will provide information and various options related to the levy. In addition, the Rochelle Police and Fire Pension Fund Presidents will discuss their respective recommendations and respond to questions from the Mayor and Council.

default Rochelle Police Pension Fund Recommendation

default Rochelle Fire Pension Fund Recommendation

City Council Agenda November 28, 2011

City of Rochelle Council Chambers

420 N. 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:

Agenda Item #2 - Request from Metal Recyclers for Permission to Place Disposal Containers within the City