I. CALL TO ORDER:
• Pledge to the Flag
• Prayer
II. ROLL CALL:
III. PROCLAMATIONS, COMMENDATIONS, ETC:
IV. REPORTS AND COMMUNICATIONS:
• Mayor
• Council Members
• default Financial Statements September 2012
V. PUBLIC COMMENTARY:
VI. BUSINESS ITEMS:
1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) default Approve Minutes of City Council Meeting – October 9, 2012
b) Approve Bills – default 09/28/12-10/04/12 , default 10/05/12-10/11/12
c) Approve Payroll – default 09/17/12-09/30/12
3) Engineering Services Agreement –Second Avenue Water Main Project
4) Second Amendment to the Amended and Restated Land Lease Agreement - Sky Team
5) Reduction in Letters of Credit – Prologis Park
6) Selection of Health Insurance Plan and Provider
VII. DISCUSSION ITEMS:
VIII. EXECUTIVE SESSION
IX. ADJOURNMENT
Agenda Item #2 - Ordinance Amending Chapter 94 (Traffic and Vehicles) to Provide for Permitting of Overweight Trucks and to Establish Permit Fees
References:
default Ordinance Amending Chapter 94
Recommended Action:
Consider an Ordinance Amending Chapter 94
History and Fact:
A number of local industries, grain elevators and the intermodal facility consider overweight transports to be important for their businesses' continued success. However, the Rochelle Municipal Code currently prohibits trucks weighing more than 80,000 pounds from using city streets, including designated truck routes. With the City's May 1st acceptance from Ogle County of a portion of Steward Road, the overweight trucks using Steward Road (primarily between the Illinois River Energy facility and the Global Crossing III intermodal facility) would be illegal and have always been illegal on other city truck routes. To allow time for staff and the trucking community to discuss changes to Code that would allow the overweight transports, the City has issued a moratorium since May 1st on the enforcement of the Code's weight restrictions under certain conditions.
Discussion: Since last Spring, City staff has solicited advice from truckers and other stakeholders on proposed changes to City Code. At the truckers' suggestion, the City also commissioned a study by Willett-Hofman Engineers to determine the cost impact of overweight transports on Steward Road and Intermodal Drive which could provide guidance on setting an appropriate fee for overweight permits. The Willett-Hofman report determined that each overweight trip involving a shipping container reduces the life of pavement at a cost to the City of approximately $5.08.
The truckers provided valuable information regarding the costs associated with trucking, the volume and nature of overweight trucks using Steward Road, Intermodal Drive and other city truck routes and the need for a solution that is not harmful to their businesses. City staff suggested that the optimum ordinance would facilitate a balance between the needs of the trucking industry while creating a source of new funds to support future road maintenance projects. Since that time, City staff and representatives of local industries and trucking companies have met on a number of occasions in a cooperative effort to work out a solution. City staff has incorporated many of the truckers' suggestions into the proposed ordinance. Unfortunately, the truckers and staff could not reach a full agreement over the proposed ordinance, particularly the permit fee amounts.
On August 27, 2012 a draft ordinance was presented to the Mayor and Council. Following further discussion a consensus was reached to refer the topic to the Public Works Committee. Council members Berg and Rice have had subsequent meetings with stakeholders from the trucking industry and have developed a mutually agreeable solution which provides for the City issuing daily overweight permits at $25.00 per day. The ordinance also provides the option for truckers to get an annual permit at a fee $350.00. In addition, the City Attorney has proposed changes to the ordinance to conform to the Illinois Vehicle Code, which sets the weight limit for all roads in the state at 80,000 pounds and includes penalties for violations.
Finally, it is important to note that these changes will become effective on May 1, 2013, when the City accepts the remaining section of Steward Road; until that time the City will continue the moratorium.
Recommendation:
Approve an Ordinance Amending Chapter 94 (Traffic and Vehicles) to Provide for Permitting of Overweight Trucks and to Establish Permit Fees
Agenda Item #3 - Engineering Services Agreement – Second Avenue Water Main Project
References:
default Memo from Water/Water Reclamation Superintendent Kathy Cooper
default Agreement between the City and Willett-Hofmann & Associates
Recommended Action:
Consider an agreement between the City of Rochelle and Willett Hofmann &
Associates for engineering services related to the Second Avenue Water Main Project
History and Fact:
Over the past eight years, water personnel have repaired eight water main breaks in the 100 and 200 blocks of Second Avenue, three of which occurred in 2011-12. The breaks have revealed visible pitting and corrosion in this section of the main.
Discussion:
The engineering firm of Willett Hofmann & Associates was asked to provide an agreement associated with the Second Avenue Water Main Project. They have since submitted a proposal for the design, bidding and award, and construction observation of the project for a fee of $42,000. Approval of this agreement will facilitate completion of the engineering design by February, bid letting in March and a goal of construction in mid to late April 2013. This water main upgrade project was not included in the 2012-13 Water Division budget due to funds required for the drilling of a new well and associated water main work. The new well has since been delayed and Superintendent Kathy Cooper recommends proceeding with an upgrade to the existing system at this time.
Recommendation:
Authorize the City Manager to sign an agreement between the City of Rochelle and
Willett Hofmann & Associates for engineering services related to the Second Avenue Water Main Projec
Agenda Item #4 - Second Amended and Restated Land Lease Agreement between the City and Sky Team
References:
default Request from Chicagoland Skydiving Center
default Second Amended and Restated Land Lease Agreement
default Ordinance Approving the Second Amendment
Recommended Action:
Consider a Second Amended and Restated Land Lease Agreement between the City and Sky Team, Inc.
History and Fact:
On March 21, 2011 the Mayor and Council approved a Land Lease Agreement between the City and Sky Team, Inc for a term of 20 years with two additional 10 year renewal options. The purpose of the lease was to make it possible to operate a skydiving business on seven acres of property at the Rochelle Municipal Airport. The lease was subsequently amended in June of 2011 to facilitate the financing of the Chicagoland Skydiving Center construction.
Discussion:
Doug Smith, President of Sky Team, Inc., recently submitted a request for additional amendments to the agreement. Due to demand they have procured a Cessna 206 aircraft which will allow the skydiving business to operate during the winter months as weather permits. In addition, they have identified an opportunity to host third party events in the Chicagoland Skydiving Center hangar in association with the Flight Deck Bar & Grill restaurant. Sky Team is also requesting that the RVs be allowed to stay in the RV parking spaces year round, both for staff accommodations and storage. Finally, a consent to subleases with Sky Team Aviation for aviation services and Guodraw Entertainment Team for operation of a bar and grill have been incorporated into the amendment and the PROskydiving references have been deleted.
Recommendation:
Approve a Second Amended and Restated Land Lease Agreement between the City and Sky Team, Inc
Agenda Item #5 - Reduction in Letters of Credit – Prologis Park
References:
default Memo from City Engineer Sam Tesreau
Recommended Action:
Consider approving reduction in letters of credit with conditions as outlined.
History and Fact:
Five performance bonds totaling $1,949,475.27 were submitted to the City of Rochelle on behalf of ProLogis to secure their obligations related to public land improvements for Prologis Park Rochelle – Unit One. Due to the completion of a majority of the required improvements, Prologis has requested a reduction in the associated surety.
Discussion:
City Engineer Sam Tesreau has reviewed the request for a reduction in the letters of credit. Given that there are additional items to be completed, a new letter of credit for 10% of the total estimated cost of improvements ($194,948) plus an additional $15,500 for the incomplete items is required by the City. If approved, the new irrevocable letter of credit of $210,448 will be held for a period of not less than 24 months as guarantee of satisfactory completion of the land improvements. A letter outlining the remaining conditions necessary for the release of the letters of credit has been sent to Prologis.
Recommendation:
Approve reduction in letters of credit with conditions as outlined in letter to Prologis dated October 16, 2012.
Agenda Item #6 - Selection of Health Insurance Plan and Provider
References:
Memo from HR/Risk Manager Lynette Fischer
Markets Available through Broker Agencies
Comparison of Health Insurance Proposals
Recommended Action:
Consider health insurance plans and providers.
History and Fact:
Due to the rising cost of health insurance, staff solicited proposals from multiple agencies for the City's health insurance plan. The City of Rochelle currently has a self-insured health plan with the plan year ending annually on October 31. Six broker agencies expressed an interest in submitting proposals, and staff provided the same data, including past claims histories, deductible and out-of-pocket structures and current plan design, to all firms. Staff encouraged all of the agencies to seek out proposals for both fully-insured and self-insured options with any vendor they felt would serve the City's needs of quality care and customer service at a reasonable cost.
Discussion:
Four agencies subsequently submitted proposals which included thirteen unique options. HR/Risk Manager Lynette Fischer reviewed all of the proposals and evaluated them based on cost, networks accessed, services provided by the Third-Party Administrator, services provided by the broker agencies and additional stand-alone coverage. As a result of the analysis, the consensus of management is to recommend renewing the health insurance plan with Cypress Benefit Administrators through the Cottingham & Butler firm. This option will provide the same reliable customer service, stability in our provider network and a lower fixed cost. In addition staff is recommending purchasing the AIG $60,000 specific deductible with a $50,000 aggregating specific feature and remaining with the ECOH/HFN network. This choice will limit the City's maximum funding on any one person to $60,000 and the addition of the aggregating specific feature offers lower guaranteed fixed costs.
This recommendation using the Cottingham firm represents a savings of approximately $67,000 over a similar quote from our current agent, Query Insurance, for the same insurance product.
The last couple of years the City of Rochelle's health insurance plan has experienced some large, costly claims. This, coupled with an era where double digit health insurance increases are not unusual, made it difficult to get competitive bids. The recommended plan includes a total potential maximum funding increase of 7.7% for the 2012-2013 plan year.
Recommendation:
Renew our health insurance plan with Cypress Benefit Administrators through the Cottingham & Butler firm beginning November 1, 2012.
