MONDAY, December 9, 2013 at 7:00 p.m.
City of Rochelle Council Chambers
420 N 6th Street, Rochelle, IL 61068
I. CALL TO ORDER:
• Pledge to the Flag
• Prayer
II. ROLL CALL:
III. PROCLAMATIONS, COMMENDATIONS, ETC:
IV. REPORTS AND COMMUNICATIONS:
• Mayor
• Council Members
V. PUBLIC COMMENTARY:
VI. BUSINESS ITEMS:
1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) Approve Minutes of City Council Meeting – default November 25, 2013
b) Accept and Place on File Minutes of Trucking Advisory Commission – default August 6, 2013
c) Accept and Place on File Minutes of Trucking Advisory Commission – default September 25, 2013
d) Accept and Place on File Minutes of Airport Advisory Board – default August 26, 2013
e) Accept and Place on File Minutes of Railroad Advisory Board – default September 26, 2013
f) Approve Bills – default 111513-112813
g) Approve Payroll – default 111113-112413
h) Approve City of Rochelle default Meeting Dates for 2014
i) Approve City of Rochelle default Legal Holidays for 2014
2) Ordinance Adopting 2013 Tax Levy (Public Hearing and Action)
3) Ordinance Abating the Taxes Levied for 2013 - Taxable General Obligation Bonds
4) Selection of Risk Insurance
5) Illinois Clean Energy Community Foundation Grant - Solar Plant at Water Reclamation Plant
6) American Public Power Association Demonstration of Energy Efficiency Development Grant – Rochelle Municipal Utilities Internship
VII. DISCUSSION ITEMS:
VIII. EXECUTIVE SESSION
IX. ADJOURNMENT
Agenda Item #2 Ordinance Adopting 2013 Tax Levy (Public Hearing and Action)
References:
default Memo from Finance Manager Chris Frye
default Real Estate Tax Rate Extension
default Ordinance Levying Taxes for the City of Rochelle
Recommended Action:
Consider an Ordinance Levying Taxes for the City of Rochelle
History and Fact:
The State of Illinois requires the City annually to adopt and file a Property Tax Levy Ordinance on or before the last Tuesday in December. Last year, the City's Equalized Assessed Valuation (EAV) was $214,164,805 and its property tax rate was $0.876630 per $100 of EAV, which allowed the city to collect $2,017,989.28 in property taxes. For the coming year, Ogle County has estimated the City's EAV at $216,878,407.
Discussion:
The City Council discussed the 2013 Tax Levy at their November 25th meeting.
The Fire and Police Pension Boards requested that council fully fund their recommendations based on actuarial studies. The Fire Pension Board is seeking a contribution from property taxes of $237,565. The Police Pension Board is seeking a contribution of $236,189. In addition, a deficit balance exists in the City's Social Security and IMRF funds as noted on the Audit Report for Fiscal Year 2012-2013.
A property tax levy notice for 2013 was published in the November 19th issue of the Rochelle News Leader which included a maximum increase of 7.98% over the previous year. The proposed levy calculations include fully funding the pension boards' recommendations and recovering 2/3 of the negative fund balances in both the Social Security and IMRF funds. However, the City will need to find alternative sources, through the budget process, to fund a shortfall in the insurance fund. The property tax rates for general corporate, fire protection, police protection, crossing guard and street lighting will remain the same as compared to last year since they are already at the maximum rate allowable.
Recommendation:
Conduct the Public Hearing
Approve an Ordinance Levying Property Taxes for the City of Rochelle for the Fiscal Year May 1, 2013 through April 30, 2014
Agenda Item #3 Ordinance Abating the Taxes Levied for 2013 – Taxable General Obligation Bonds
References:
default Ordinance Abating the Taxes Levied for 2013- Taxable General Obligation Bonds
Recommended Action:
Consider an Ordinance Abating the Taxes Levied for 2013 to Pay Debt Service on Taxable General Obligation Bonds
History and Fact:
In 2010 the Mayor and Council approved an ordinance providing for the issuance of bonds to finance offsite improvements related to the Lighthouse Pointe Subdivision and Route 38 corridor. The City subsequently issued Taxable General Obligation Bonds, Series 2010 (Recovery Zone Economic Development Bonds) in the amount of $2,940,000. In April of this year, due to federal budget cuts which affected the subsidy available through the Recovery Zone Bond program, the council approved the issuance of General Obligation Refunding Bonds in an amount not to exceed $3,125,000, which included interest and bond issuance costs.
Discussion:
The annual debt service related to these bonds will be paid through TIF revenues, instead of property taxes, when sufficient funds are available. In order to abate the property taxes, the proposed ordinance must be approved annually and forwarded to Lee and Ogle County.
Recommendation:
Approve an Ordinance Abating the Taxes Levied for 2013 to Pay Debt Service on Taxable General Obligation Bonds
Agenda Item #4 Selection of Risk Insurance
References:
default Memo from Human Resources/Risk Manager Lynette Fischer with attachments
Recommended Action:
Consider Selection of Risk Insurance
History and Fact:
The City of Rochelle's Risk Insurance Plan Year expires annually on December 31. Since 1997, the City has participated in the Illinois Municipal League Risk Management Association (IMLRMA) property and liability insurance program which covers the following: worker's compensation, auto liability, general liability, portable mobile equipment, and physical damage to auto and property.
Similar to last year, staff solicited proposals for providing risk insurance from an alternate broker for the 2014 plan year. This year, Query Insurance Agency partnered with Insurance Program Managers Group (IPMG) to present a proposal using Illinois Counties Risk Management Trust Insurance Program (ICRMT) as the carrier. Staff encouraged both IMLRMA and Query Insurance Agency to provide any recommendations that they felt would help keep the City's risk insurance costs down including deductible changes, claims investigation, regulatory awareness, etc.
Discussion:
ILRMA submitted two renewal options: the "standard" renewal option and the option to continue in the Minimum/Maximum Program. In addition, a $5,000 deductible level option was added to both the standard and min/max programs which would apply to all types of claims except for Workers Compensation.
ICRMT presented a proposal where deductibles vary by coverage as follows: $1,000 for Crime and General Liability claims (except for Police Liability where a $10,000 deductible applies), $1,000 for Portable Mobile Equipment and Auto Physical Damage, $5,000 for Property Damage and no deductible for Auto Liability.
After reviewing the various plans in terms of cost and other policy differences, staff believes that it is in the City's best interest to stay with IMLRMA and move to the Standard Option with a $500 deductible. In addition, IMLRMA has committed to honoring the early pay discount of 1.5%, which equates to $8,993, despite the payment deadline of November 30th.
Recommendation:
Approve participation in the IMLRMA Standard Option with a $500 deductible.
Agenda Item #5 Illinois Clean Energy Community Foundation Grant – Solar Plant at the Water Reclamation Plant
References:
default Memo from Business and Financial Analyst Dan Westin
default Illinois Clean Energy Community Foundation Grant Agreement
default Resolution Accepting a Grant from the Clean Energy Foundation
Recommended Action:
Consider Illinois Clean Energy Community Foundation Grant
History and Fact:
In March of this year the Mayor and Council voted to support an application to the Community Solar and Wind Grant Program. This program provides grant funds which support the development and implementation of larger-scale distributed solar energy systems in Illinois. Unfortunately the City was not successful in obtaining a grant through this program.
Discussion: Rochelle Municipal Utilities subsequently applied for a grant through the Illinois Clean Energy Community Foundation to fund up to 60% of the proposed 26 kW solar plant. On November 1st, Business and Financial Analyst Dan Westin was notified that Rochelle was awarded $63,600 for the solar plant project.
According to the United States Environmental Protection Agency, approximately one-third of a municipality's electrical budget is for the wastewater treatment plant. The Rochelle Treatment Plant has an average electric bill of $15,500 per month and staff is constantly looking at ways to reduce that amount. With that in mind, the treatment plant property has been selected as the location for construction of the solar plant. The solar plant will provide lower costs of purchasing power for the treatment plant, capacity savings in electrical demand and educational opportunities for our community.
With notice of the grant, Rochelle Municipal Utilities (RMU) may move forward with the required bid process. The total cost to construct a 26 kW solar plant project is estimated to be approximately $105,000 with a payback on the City's investment of approximately 73% within the first 10 years.
RMU staff recommends that council approve acceptance of the grant.
Recommendation:
Approve a Resolution Accepting a Grant from the Clean Energy Foundation for the Installation of a Solar Plant at the Water Reclamation Plant
Agenda Item #6 American Public Power Association Demonstration of Energy Efficiency Development Grant – Rochelle Municipal Utilities Internship
References:
default Memo from Business and Financial Analyst Dan Westin
default Overview of the Demonstration of Energy and Efficiency Developments Program
Recommended Action:
Consider American Public Power Association Demonstration of Energy Efficiency Development Grant
History and Fact:
Rochelle Municipal Utilities (RMU) is currently pursuing a certification through the American Public Power Association's (APPA's) RP3 program. The RP3 program recognizes utilities that demonstrate high proficiency in reliability, safety, work force development and system improvement. In order to accomplish this goal, RMU has joined the APPA's Demonstration of Energy & Efficiency Development (DEED) Research Section.
Discussion:
As a benefit of the DEED membership, RMU applied for a scholarship grant to fund a student internship. On November 26th, Business and Financial Analyst Dan Westin was notified that RMU was awarded the requested $4,000.
The grant will be used for GIS implementation in RMU Customer Service. The intern will work with the Customer Service and Engineering departments in the area of GIS mapping and attribute management to optimize meter replacement tactics and meter reading route efficiency.
RMU staff recommends that council approve acceptance of the grant. Dan Westin has been in contact with Northern Illinois University's Geographic Information Systems Department and he believes they have several candidates that would be a fit for this internship.
Recommendation:
Accept a grant from the American Public Power Association Demonstration of Energy Efficiency Development Program for an internship to deploy new technologies in utilities.
