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 February 24, 2014
b) Approve Bills – default 021414-022114 , default 022214-022714
c) Approve Payroll – default 020314-021614
d) Approve default Resolution Regarding the Release of Executive Session Minutes
e) Approve default Cinco de Mayo Planning Committee Request – May 3, 2014
f) Approve default Request from Illinois Medical Emergency Response Team - April 4-5, 2014
2) 2014 Sidewalk Project
3) 2014 Building Improvements Project – Electric Division
4) Simplified Municipal Telecommunications Tax Rate
5) 230 kW Solar Plant Grant Application
6) Amendment to Preliminary Engineering Services Agreement - Wiscold Drive Improvement Project
VII. DISCUSSION ITEMS:
VIII. EXECUTIVE SESSION
IX. ADJOURNMENT
Agenda Item #2 2014 Sidewalk Project
References:
default Memo from City Engineer Sam Tesreau
default Map of 2014 Sidewalk Maintenance Locations
default Recommended Action:
Consider bids for the 2014 Sidewalk Project
History and Fact:
Several years ago the condition of existing sidewalks in the City were inspected and rated by Street Department personnel. The sidewalks were then organized into a maintenance program based on their condition. The 2014 Sidewalk Project includes the replacement of approximately 47,000 square feet of sidewalk and installation of several accessibility ramps on Linder Lane and Drake Avenue as well as sections of Woolf Court, North 10th and North 12th Streets.
Discussion:
Subsequent to the required public notice, the City Clerk opened seven bids for the project on February 27, 2014. City Engineer, Sam Tesreau reviewed the bids and recommends the acceptance of the apparent low bidder, Bruns Construction, Inc. with a bid of $264,169.32. The City of Rochelle will purchase the detectable warning plates for use on the accessibility ramps and the contractor will provide curb replacement around the handicap ramp locations. The 2014-15 Sidewalk Project will be funded through the Capital Improvements Fund.
Recommendation:
Accept the bid from Bruns Construction, Inc. in the amount of $264,169.32 and reject all other bids.
Agenda Item #3 2014 Building Improvements Project – Electric Division
References:
default Memo from Electric Division Superintendent Joe Orlikowski
default Recommendation from Willett Hofmann & Associates
Recommended Action:
Consider bids for the 2014 Building Improvements Project – Electric Division
History and Fact:
The engineering firm of Willett Hofmann & Associates evaluated the buildings in the Electric Division complex and designed an improvement project to address concerns based on their findings. The resulting project includes the removal of asphalt and metal roofs, installation of new membrane and metal roof systems, repair of damaged masonry and other associated work on buildings 3, 12 and 15 at the 9th Street Facility. The 2013-14 Electric Fund Capital Outlay Budget includes a total of $114,750 for these building improvements.
Discussion:
Subsequent to the required public notice, the City Clerk opened two bids for the 2014 Building Improvements Project on February 25, 2014. Staff and our consultant, Willett Hofmann & Associates, have reviewed the bids and recommend the acceptance of the apparent low bidder, Bruns Construction Inc., with a base bid of $85,430. In addition, staff recommends proceeding with alternate bids 2, 3 and 4 to maximize the improvements for a total project cost of $109,180.
Recommendation:
Approve the base bid and Alternate Bids 2, 3 and 4 from Bruns Construction, Inc. in the amount of $109,180 for the Electric Division 2014 Building Improvements Project and reject all other bids.
Agenda Item #4 Consider an Ordinance Amending the Telecommunications Tax Rate
References:
default Memo from Finance Manager Chris Frye
default Memo from City Clerk Bruce McKinney
default Fiscal Year Comparison
default Ordinance Simplified Municipal Telecommunications Tax Rate Change
History and Fact:
The maximum Simplified Municipal Telecommunications tax rate that can be assessed by municipalities with populations less than 500,000, as established by the State of Illinois, is 6%. The City's current tax rate of 5% was approved by the Mayor and Council in September of 2007.
Discussion:
Finance Manager Chris Frye provided the following information on the state of the General Fund:
• In FY 13, the General Fund used reserves of $28,026.
• At the end of FY 13 the insurance, IMRF, and social security funds all had negative fund balances.
• In FY 14, transfers were budgeted from Electric, Water, Water Reclamation, Solid Waste, Railroad, Ambulance and the Sales Tax Funds which equated to 31% of the budgeted revenues. There are limited resources in these funds for future transfers and our goal for FY 2015 is to reduce the transfers by at least 5%.
• Three of the four union contracts which expire on April 30th are paid out of the General Fund.
City Clerk Bruce McKinney compiled telecommunications tax rate information for communities in Ogle County and several larger municipalities in our area. Of the 26 communities included in the comparison, 21 of them are at the maximum tax rate of 13% (including the State's 7%).
In order for a new tax rate to be effective July 1, 2014 the City would need to file the appropriate documentation with the Illinois Department of Revenue no later than March 20th. Based on historical telecommunications tax revenues, a 1% increase is estimated to generate $75,000 in additional revenue annually.
Recommendation:
Consider an Ordinance Amending the Simplified Municipal Telecommunications Tax Rate
Agenda Item #5 230 kW Solar Plant Grant Application
References:
default Memo from Business and Financial Analyst Dan Westin
default Letter from Illinois Clean Energy Community Foundation
Recommended Action:
Consider proceeding with a grant application to fund a 230 kW Solar Plant
History and Fact:
Last year Rochelle Municipal Utilities (RMU) applied for a grant through the Illinois Clean Energy Community Foundation (ICECF) to fund a large, 230 kW, solar plant. If successful, the grant will provide up to $2 per watt or 60% of the system and its installation cost, whichever is less.
Discussion:
ICECF recently notified RMU that it has passed the first phase of the two part approval process. The Foundation would like RMU to proceed in the second and final phase by submitting an electronic proposal and letter of commitment by March 14th for a grant of up to $460,000. This is still a competitive process and the application needs to have a strong case to have a chance of final approval.
Business and Financial Analyst Dan Westin has created the following business case for the solar plant:
• Cost to construct a 230 kW system after the $460,000 grant - $307,000
• Value of energy produced per year - $24,578
• Value of energy credits sold into Pennsylvania market per year - $16,365
• Demand value PJM capacity charge - $11,417
• RMU Grid value per year - $21,390
Based on this analysis, the plant will pay for itself in 4.2 years. This would mean, based on a life expectancy of twenty years, that the plant would produce essentially free energy for more than fifteen years. ROI 3% 10 years is 205 %.
Recommendation:
Approve proceeding with the ICECF Solar Plant Grant second phase
Application and letter of commitment
Agenda Item #6 Amendment to Preliminary Engineering Services Agreement – Wiscold Drive Improvement Project
References:
default Memo from City Engineer Sam Tesreau
default Amendment to Preliminary Engineering Services Agreement
Recommended Action:
Consider an Amendment to Preliminary Engineering Services Agreement
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 roadway upgrades along Wiscold Drive. The City subsequently 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 have since approved several agreements to facilitate this project including a Preliminary Engineering Services Agreement (PESA) with Fehr Graham Engineering & Environmental in September of 2012.
Discussion:
The original PESA covered the existing alignment along Wiscold Drive from Caron Road to Americold Drive. After several months of discussion, BP has determined that this alignment will require the relocation and lowering of the existing BP pipeline at a cost to the City of nearly $700,000.
Therefore, staff has evaluated the situation and proposed a new alignment through property owned by the City south of the existing Wiscold Drive. Although this alignment will add additional length to the project, it will be far less costly than the improvements required by BP at the intersection of Caron Road and Wiscold Drive. Since this new section of roadway was not part of the original scope of services provided under the PESA, Fehr Graham has provided a scope of services for the redesign of approximately 900 lineal feet at a cost of $39,500. Per our agreement with IDOT, the contract award for this project must take place prior to December 31, 2014 to meet the requirements for EDP funding.
Recommendation:
Authorize the City Manager to sign an agreement between the City of Rochelle and Fehr Graham Engineering and Environmental for additional professional services for alternate alignment related to the Wiscold Drive Improvement Project
