In 2006 the Occupational Safety and Health Administration (OSHA) issued regulations which required a study of all electrical panels to determine the potential for an arc flash explosion. The City subsequently hired Siemens to perform the studies for the Water and Water Reclamation Divisions and Engel Electric to install the required hazard and personal protective equipment (PPE) labeling. As a follow up to the labeling, Engel Electric recommended that disconnects be installed in advance of the panels to make them safer to work on.

Discussion:

Siemens evaluated the panels and concluded that the installation of isolation breakers at each of the wells and ahead of the main breaker at the treatment plan would significantly improve the safety for employees working on the panels. The Siemen's study was provided to three electrical contractors, Mascal Electric, Morse Electric and Engel Electric, and they were asked to submit a proposal to install the breakers. Mascal Electric provided a proposal of $38,672 for the wells and $50, 768 for the Treatment Plant, Morse Electric did not respond to the request, and Engel Electric provided a proposal of $33,200 for the wells and $43,639 for the Treatment Plan. As a result Superintendent Kathy Cooper recommends accepting the proposal from Engel Electric. The 2012-13 Capital Outlay Budget for Water/Water Reclamation includes a total amount of $86,000 for this project.

Recommendation:

Accept the proposal for the installation of isolation breakers at the water wells and water reclamation plant from Engel Electric for a total amount of $76,839.

Agenda Item #3 -Audit Report Fiscal Year 2011/2012

References:

default City of Rochelle Annual Financial Report - April 30, 2012

default Rochelle Municipal Utilities Annual Financial Report - April 30, 2012

default Audit Presentation - Chris Frye, Finance Manager

Recommended Action:

Consider Audit Report

History and Fact:

On March 8, 2010 the Mayor and City Council approved a contract with Sikich, LLP to perform an audit of the City's financial operations for fiscal years ending April 30, 2010, 2011 and 2012. This is the third year Sikich has completed our annual audit.

Discussion: Sikich planned and performed the audit in order to verify that the financial statements are free of material misstatements. This included examining, on a test basis, evidence supporting the amounts reported in the financial statements. The audit also assessed the accounting principles applied, significant estimates made by management and evaluated the overall financial statement presentation.

The auditor's opinion, as noted on page 1 of the Auditor's Report, indicates that the financial statements "present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Rochelle, Illinois, as of April 30, 2012, and the respective changes in financial position and, where applicable cash flows thereof for the year ended in conformity with accounting principles generally accepted in the United States of America."

Fred Lantz, Partner-in-Charge of Government Services for Sikich, will attend the meeting to provide an overview of the City's Financial Statement and respond to questions from the Mayor and Council members. Finance Manager Chris Frye will also provide a presentation comparing the actual General Fund revenues, expenditures and fund balances for years 2008 through 2012.

Recommendation:

Accept and place on file the Audit Report for FY 2011/2012 as prepared and presented by Sikich, LLP.

Agenda Item #4 -Minimum/Maximum Additional Billing for Contract Year 12/31/2009-12/31/2010 – Illinois Municipal League Risk Management Association

References:

default Memo from HR/Risk Manager Lynette Fischer

default 2012 Minimum/Maximum Additional Billing

Recommended Action:

Consider Additional Billing for Contract Year 12/31/2009-12/31/2010

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. This insurance program covers worker's compensation, auto liability, commercial general liability, portable mobile equipment, and the physical damage to auto and property. In addition, the City has taken advantage of the IMLRMA's "Minimum/Maximum Premium Program" for the past several years in order to reduce our premium costs by accepting some risk of loss. To date, the City has realized significant savings through the Min/Max Program due to our loss experience.

Discussion:

In November of 2009 the Mayor and Council approved an Ordinance Authorizing the Execution of the Minimum/Maximum Contribution Agreement for the period December 31, 2009 to December 31, 2010. At that time it was noted that "selecting the minimum payment option subjects the City to additional premiums of approximately $127,000 if our claims exceed program limits." The IMLRMA agreement includes a provision for billing on a yearly basis when paid claim dollars are in excess of the Minimum Loss Fund until such time as the Maximum Loss Fund limit is attained or all claims initiated during the coverage period are closed. Due to some large worker compensation and general liability claims the City has received an additional billing of $98,591.98. Of the 31 claims initiated during this time period only three remain open. In addition, the City is seeking damages from a third party related to the one of the open claims; the largest claim incurred during the period.

Recommendation:

Authorize the City Manager to pay the additional billing of $98,591.98 for contract year 12/31/2009-12/31/2010 to the IMLRMA.

Agenda Item #5 -Engineering Agreement with Fehr Graham – Wiscold Drive Improvement Project

References:

default Memo from City Engineer Sam Tesreau

default Agreement between the City and Fehr Graham Engineering and Environmental

Recommended Action:

Consider an agreement between the City of Rochelle and Fehr Graham for engineering services related to the Wiscold Drive Improvement Project

History and Fact:

In 2009, in association with the expansion of Sara Lee Corporation, the City of Rochelle submitted a grant application to the Illinois Department of Transportation (IDOT) for Economic Development Program (EDP) funds to assist with 3,000 feet of roadway upgrades along Wiscold Drive. On January 8, 2010 the City received an award letter from IDOT committing EDP funding of up to 50% of the Wiscold Drive improvements and associated expenses in an amount not to exceed $1,123,860. The Mayor and Council subsequently approved a State/Local Joint Agreement and a Local Agency/Company Agreement related to the EDP funding and a resolution establishing Wiscold Drive as a Class II Designated Truck Route. The State has since approved the joint agreement, which secured the EDP funds, and given the City until December 31, 2013 to award the construction portion of the project.

Discussion:

Fehr Graham Engineering and Environmental has provided a scope services for the preliminary engineering associated with the project for a fee of $156,800 and construction observation services not to exceed $104,500. Approval of this agreement will allow the necessary construction plans, specifications and other supporting information to be developed and submitted to the applicable agencies for review with a goal of construction in late summer of 2013. This is a multi-year project and the 2012-2013 Capital Projects Fund includes $450,000 for the engineering and preliminary work required for this improvement project.

Recommendation:

Authorize the City Manager to sign an agreement between the City of Rochelle and Fehr Graham Engineering and Environmental for engineering services related to the Wiscold Drive Improvement Project

City Council Agenda September 24, 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

BUSINESS ITEMS:

Agenda Item #2 - Installation of Isolation Breakers – Water Wells and Water Reclamation Plant

Agenda Item #3 -Audit Report Fiscal Year 2011/2012

Agenda Item #4 -Minimum/Maximum Additional Billing for Contract Year 12/31/2009-12/31/2010 – Illinois Municipal League Risk Management Association

Agenda Item #5 -Engineering Agreement with Fehr Graham – Wiscold Drive Improvement Project

City of Rochelle Illinois