History and Fact: In 2009 the Government Accounting Standards Board (GASB) issued Statement No. 54 in order to provide clarity and consistency to the reporting of fund balance information. Statement 54 establishes the following five fund balance classifications and describes the constraints associated with spending the various funds: nonspendable, restricted, committed, assigned and unassigned. Until now the City of Rochelle has categorized fund balances into restricted and unrestricted.

Discussion: In order to be compliant with GASB 54, the City of Rochelle must approve a fund balance policy by April 30, 2012 and issue the fiscal year 2012 financial statements in accordance with the policy. The proposed policy incorporates the new terminology and establishes the minimum level (target range) at which the projected end-of-year fund balance should be maintained. In addition, the policy includes actions that the City Manager will take to reach goals established in the adopted budget. Adoption of this policy will not alter the overall dollar value of the fund balance.

Recommendation: Adopt a City of Rochelle Fund Balance Policy

Agenda Item #3 - Resolution Granting Real Estate Tax Abatement to Illiana Realty, LLC and Central Big R Stores, Inc.

References:

default Memo from Chamber of Commerce and Business Development Director Peggy Friday

default Resolution Granting Real Estate Tax Abatement

Recommended Action: Consider Granting Real Estate Tax Abatement to Illiana Realty, LLC and Central Big R Stores, Inc.

History and Fact: A Development Agreement between the City of Rochelle, Illiana Realty and Central Big R Stores was approved by the Mayor and Council at the March 26, 2012 City Council meeting. The agreement memorialized a variety of incentives, including real estate tax abatements, which are being provided to promote the redevelopment of the former Wal-Mart facility located at 1240 North 7th Street.

Discussion: The Big R Project was evaluated to determine the anticipated economic impact to the community. Illiana Realty's redevelopment of the property will include the construction of a warehouse addition of at least 12,000 square feet, renovation of the existing structure and donation of land in excess of 1 acre for expansion of the bike path. In addition, the Big R store will provide a minimum job creation of 40 full-time positions, estimated sales of $7 million in year one of operation and $8 million in years two and three. Based on this evaluation, a five year abatement schedule on new improvements has been proposed as follows: 90% for year one, 75% for year two, 60% for year three, 45% for year four, and 30% for year five. The redevelopment of this anchor facility will help maintain the vitality of the IL Route 251 North commercial and retail corridor.

Recommendation: Approve Resolution Granting Real Estate Tax Abatement to Illiana Realty, LLC and Central Big R Stores, Inc.

Agenda Item #4 - Hub City Car Wash Variance Requests

References:

default Memo from Community Development Director Chris Limas

default Ordinance Approving Certain Variances for Property Located at 1185 N 7th Street

Recommended Action: Consider an Ordinance Approving Variances at 1185 N. 7th Street

History and Fact: The City has received a request from Dave Hoffmann, on behalf of Hub City Car Wash, for three variances at 1185 N 7th Street. These variances are being requested due to a planned expansion of the business and the future Illinois Department of Transportation (IDOT) Illinois Route 251 widening project.

Discussion: The petitioner has requested a variance to the front yard parking setback to allow a 9 foot setback instead of the required 20 foot setback. Part of the front yard will be taken for the IDOT improvements and a 9 foot parking setback will match that of the property directly north of the car wash. In addition, a side yard buffer variance has been requested to allow a 5 foot buffer instead of the required 10 foot buffer. This variance will allow the petitioner to add a 4th self-service bay while still providing an appropriate turning radius. The third variance requested is to allow the relocation of the existing sign. The existing sign will need to be moved due to the reconfiguration of the driveway as part of the Illinois Route 251 project and staff believes the proposed sign location is the only location in the front yard of the business that will not affect traffic flow following the IDOT improvements. The proposed location of the sign face will be about 2 feet from the right-of-way with the sign pole about 7 feet from the right-of-way. At the April 2, 2012 meeting of the Planning and Zoning Commission the variance requests were considered. The commission voted 6-0, to recommend approval of the three variances as requested at 1185 N 7th Street due to the appropriateness of the expansion and hardship created by the Illinois Route 251 widening project.

Recommendation: Authorize an Ordinance Approving Variances for Property Located at 1185 N. 7th Street

Agenda Item #5 - Rochelle Community Consolidated School District #231 Final Planned Unit Development

References:

default Memo from Community Development Director Chris Limas

default Ordinance Approving the Final Planned Unit Development

Recommended Action: Consider an Ordinance Approving a Final Planned Unit Development for Rochelle Community Consolidated School District 231

History and Fact: On January 22, 2007 the Mayor and City Council approved the Planned Unit Development (PUD) Plan and Preliminary Plat for the Kings Crossing development. Included in this development was a future elementary school site located on the west side of 20th Street, north of Flagg Road. Rochelle Community Consolidated School District 231 has now petitioned for approval of a Final PUD (site plan) in order to construct a 72,000 square foot elementary school on Lot #2 of the original development.

Discussion: The Final PUD for Rochelle Community Consolidated School District 231 includes a 48.99 acre lot with the proposed structure located on the south half of the parcel. The site will have two access points off of 20th Street, north and south of the proposed school, and parking located on the west, north and south sides of the school. In addition, water will be provided from a main along 20th Street, sewer will connect to the Akesson Park Lift Station and stormwater management will be provided by two detention ponds that will be constructed on property north of the school. On April 2, 2012 the Planning and Zoning Commission held a public hearing to review Rochelle Community Consolidated School District 231's petition and voted to recommend approval by a vote of 7-0 subject to the following: posting of required surety and approval of final engineering, a final storm water management, and a final landscape plan.

Recommendation: Authorize an Ordinance Approving a Final Planned Unit Development for Rochelle Community Consolidated School District 231

Agenda Item #6 - Resolution Establishing Utility Services Price Schedule for Electric

References:

default Average Monthly Electric Charges Per Rate Class

default Resolution Establishing Utility Services Price Schedule for Electric

Recommended Action: Consider Approving a Resolution Establishing Utility Services Price Schedule for Electric

History and Fact: The last cost of service study used to design the rates for Rochelle Municipal Utility (RMU) electric customers was completed in 1998. Since that time the method for providing electricity, diversity of RMU customers and the addition of the Prairie State Project have significantly changed the electric business at RMU. In June of 2011, the Mayor and Council authorized 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.

Discussion: An Electric Cost of Service Forecast report was subsequently prepared and presented jointly to the City Council and Utility Advisory Board (UAB) on December 12, 2011. The report includes a recommendation to revise the electric rates in order to more closely meet the cost of providing service. City Manager Plyman recommended that the rate increase of 14% be phased in over two years to ease the impact on the customers. Therefore, the proposed rate schedules have been drafted by Baker Tilly and represent an overall rate increase of approximately 7%. A typical residential customer with an average electric bill of $67.00 will see an increase of $6.19 per month. The UAB did not provide a formal recommendation but indicated they understood the need for an electric rate increase.

Recommendation: Approve a Resolution Establishing Utility Services Price Schedule for Electric

Effective May 1, 2012

Agenda Item #7 - Resolution Authorizing Acceptance of Waste Generated Outside the Service Area at Rochelle Muncipal Landfill #2

References:

default Memo from Water/Water Reclamation Superintendent Kathy Cooper

default Request for Removal of Service Area Restrictions from Rochelle Waste Disposal

default Letter of Understanding from Rochelle Waste Disposal

default Resolution Authorizing the Acceptance of Waste Generated Outside the Service Area at Rochelle Municipal Landfill #2

Recommended Action: Consider Adopting a Resolution Authorizing the Acceptance of Waste Generated Outside the Service Area

History and Fact: On April 11, 2007 the Mayor and Council approved an Application for Local Siting Approval for the Rochelle Municipal Landfill #2 Expansion. This approval included several special conditions. Of those special conditions, number 36 states that "[t]he expansion shall not accept any waste generated outside the service area defined in the siting application, except as specifically approved otherwise by the City Council in writing." In September of last year, Rochelle Waste Disposal sent a letter to the City requesting permission to accept waste from outside the defined service area due to economic reasons. On September 26, 2011 the Public Works Committee of the City Council met to consider the request. Following further explanation by the operator, the committee recommended that the City Manager take the steps necessary to grant the request.

Discussion: Prior to presenting the request to the full Council, City staff met with Ogle County and Creston officials to discuss the expansion and other concerns associated with the landfill. Among other topics, Ogle County and Creston voiced concerns regarding the calculation of the local surcharge fees. After multiple discussions and letters between the parties, Rochelle Waste Disposal has agreed to pay local surcharge fees incurred during 2010, 2011, and going forward at a rate of $1.27 per ton regardless of the annual volume of waste received. In addition, the operator has committed to installing the radiation detector and observation platform as required in Special Conditions 9 and 10. Superintendent Kathy Cooper has confirmed that Ogle County and Creston representatives are satisfied with the resolution provided via the March 15, 2012 letter of understanding and recommends proceeding with the Public Works Committee recommendation to grant permission to accept waste outside the service area.

Recommendation: Adopt a Resolution Authorizing the Acceptance of Waste Generated Outside the Service Area at Rochelle Municipal Landfill #2

Agenda Item #8 - Agreement for EDA Grant Engineering and Grant Administration

References:

default Agreement between the City and Fehr Graham and Associates

Recommended Action: Consider Agreement for EDA Grant Engineering and Grant Administration

History and Fact: The City of Rochelle submitted an application to the Economic Development Administration (EDA) in 2011 for funding assistance to improve the water and sanitary sewer system in the southeast industrial region and to construct rail to serve the Coated Sand Solutions facilities. On March 15th the City received notification from the U.S. Department of Commerce that an EDA Financial Assistance Award was approved in an amount not to exceed $2,488.461. This award is fifty percent of the approved project cost of $4,976,923. A majority of the City's required "local share" will be available through grant funds awarded by the Bureau of Railroads and Illinois Department of Commerce and Economic Opportunity.

Discussion: Approval of the EDA funding allows the City to move forward with the design and construction of an additional $1.8 million in rail improvements. These improvements include the extension of the City of Rochelle Railroad from the eastern edge of the Illinois River Energy property, across Steward Road, to a terminus north of the eastern edge of the Coated Sand Solutions property. On March 28, 2012 the City issued a "Request for Qualifications" (RFQ) in order to identify firms interested in performing the engineering portion of the project. The only firm responding to the RFQ by the deadline was Fehr Graham and Associates. The associated agreement, submitted by Fehr Graham and Associates, includes all engineering aspects of the project that are eligible through the EDA grant. These aspects include design of the remaining rail improvements, construction engineering not covered in the Bureau of Railroads Track Construction Grant Agreement, and administration of the EDA grant for a fee of $311,800. Approval of this agreement is critical in order to meet the requirements included in the Bureau of Railroads Agreement and complete the rail required for Coated Sands Solutions to be operational by August of 2012.

Recommendation: Authorize the City Manager to sign an agreement with Fehr Graham and Associates for services related to EDA Grant Engineering and Grant Administration.

Agenda Item #9 - Agreements with TLC (Ryder) and Coated Sand Solutions – City Rail Expansion

References:

default Memo from Economic Development Director Jason Anderson

default Agreement between the City and Coated Sand Solutions

default Agreement between the City and Total Logistic Control

Recommended Action: Consider Agreements with Total Logistic Control and Coated Sand Solutions related to City Rail Improvements

History and Fact: Rail car volumes on the City Industrial Rail (CIR) are expected to increase significantly in the future due to the new Coated Sand Solutions and Nippon Sharyo facilities. Economic Development Director Jason Anderson estimates that volumes may even double within the next 24 months. In order to provide additional storage track for both inbound and outbound rail cars, a 4,000 foot rail expansion of the interchange yard serving the Union Pacific line is being proposed. These rail improvements will not be paid for through any of the grant funds that have been secured.

Discussion: Via the proposed agreement, Coated Sand Solutions (CSS) has agreed to deposit $750,000 with the City by May 1, 2012 in order to finance these rail improvements. The City will then complete the improvements based on the proposed plan and cost estimate. CSS will be reimbursed from the additional switching revenues at a monthly rate equal to $72 times the total number of filled rail cars delivered to or shipped from CSS on the CIR. Due to the mutual benefit of the improvements, Total Logistic Control (TLC), which provides switching services on the CIR, has agreed to share in the monthly reimbursement. Of the $300 switch fee paid by CSS per loaded rail car the reimbursement will be shared as follows: TLC will reimburse $48 of its $225 portion and the City will reimburse $24 of its $75 portion. The monthly reimbursement will continue until the initial deposit has been totally repaid which is anticipated to take less than three years. Staff recommends approval of both agreements for the purpose of expanding the CIR's rail storage capacity.

Recommendation: Authorize the City Manager to sign an agreement between the City and Total Logistic Control.

Authorize the City Manager to sign an agreement between the City and Coated Sand Solutions.

City Council Agenda April 9, 2012

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

Agenda Item #2 - City of Rochelle Fund Balance Policy

Agenda Item #3 - Resolution Granting Real Estate Tax Abatement to Illiana Realty, LLC and Central Big R Stores, Inc.

Agenda Item #4 - Hub City Car Wash Variance Requests

Agenda Item #5 - Rochelle Community Consolidated School District #231 Final Planned Unit Development

Agenda Item #6 - Resolution Establishing Utility Services Price Schedule for Electric

Agenda Item #7 - Resolution Authorizing Acceptance of Waste Generated Outside the Service Area at Rochelle Muncipal Landfill #2

Agenda Item #8 - Agreement for EDA Grant Engineering and Grant Administration

Agenda Item #9 - Agreements with TLC (Ryder) and Coated Sand Solutions – City Rail Expansion

City of Rochelle Illinois