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
• Employee Introduction – pdf Chris Cox (164 KB)
• pdf Recognition of Employee Years of Service (40 KB)
V. PUBLIC COMMENTARY:
VI. BUSINESS ITEMS:
1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) Approve Minutes of City Council Meeting – pdf October 24, 2016 (102 KB)
b) Approve Minutes of the City Council Committee of the Whole Meeting – pdf October 24, 2016 (736 KB)
c) Accept and Place on File Airport Advisory Board Minutes – pdf August 15, 2016 (209 KB)
d) Accept and Place on File Planning and Zoning Commission Minutes – pdf October 3, 2016 (137 KB)
e) Accept and Place on File Golf Course Advisory Board Minutes – pdf September 26, 2016 (83 KB)
f) Approve Bills – pdf 101416-102016 (109 KB) , pdf 102116-102716 (88 KB) , pdf 102816-110316 (89 KB)
g) Approve Payroll – pdf 101016-102316 (56 KB)
h) Accept and Place on File Municipal Compliance Report – pdf Fire Pension Fund (122 KB)
i) Accept and Place on File Municipal Compliance Report – pdf Police Pension Fund (56 KB)
j) Approve Downtown Rochelle Association’s Request for the pdf Christmas Walk December 2, 2016 (398 KB)
k) Authorize Lighted Christmas Parade – pdf December 2, 2016 (230 KB)
l) Authorize Use of Rochelle Municipal Airport for Rochelle Area Chamber of Commerce Summer Country Jam Concert – pdf August 5, 2017 (96 KB)
2) Ordinance Authorizing Loan Agreement between the City and IEPA – Well 11 Radium Removal Plant
3) Resolutions Establishing City Water and Water Reclamation Rates Effective 2017
4) Risk Insurance Renewal
VII. DISCUSSION ITEMS:
1) Tax Levy 2016-17
2) RMU Electric Cost of Service Study
VIII. EXECUTIVE SESSION
IX. ADJOURNMENT
Agenda Item #2 Ordinance Authorizing Loan Agreement between the City and IEPA – Well 11 Radium Removal Plant
References:
pdf Memo from Water/Water Reclamation Superintendent Adam Lanning (50 KB)
pdf Ordinance Authorizing Loan Agreement between the City and IEPA (128 KB)
Recommended Action:
Consider an Ordinance Authorizing Loan Agreement between the City of Rochelle and the Illinois Environmental Protection Agency
History and Fact:
In April the Illinois Environmental Protection Agency (IEPA) notified Rochelle Municipal Utilities (RMU) that the level of radium sampled at Well 11, near the high school, exceeded the maximum contaminant level. As a result, RMU staff took the well offline. To stay within the state statutes, the City subsequently entered into a compliance commitment agreement with the IEPA and adopted a timeline of events to return the well to compliance.
In August the council approved an engineering agreement with Willett Hofmann & Associates for services related to a radium removal plant at Well 11 which included design, construction services, preparation of a water rate report and the preparation of IEPA loan application documents.
Discussion:
The IEPA has loan funds available for qualifying water system improvements through the Public Water Supply Loan Program, typically at a rate of 1.5-2%. In order to fund the radium removal plant, a project plan was submitted to the IEPA and approved. The proposed ordinance authorizes the City Manager to proceed with an application to borrow up to $4,500,000 from the Water Supply Loan Program to finance the majority of the project plan. Section 5 of the proposed ordinance states that “repayment of the loan…pursuant to this Ordinance is to be solely from the revenue derived from the revenues of the System” and therefore does not constitute a general obligation of the City.
Construction on the radium removal plant is expected to begin in the Spring of 2017 with completion in February of 2018.
Recommendation:
Approve an Ordinance Authorizing Loan Agreement between the City of Rochelle and the Illinois Environmental Protection Agency. Once approved, RMU will publish the approved ordinance, within 10 days, giving electors the right to file a petition opposing the provisions of the ordinance.
Agenda Item #3 Resolutions Establishing Water and Water Reclamation Rates Effective 2017
References:
pdf Memo from Water/Water Reclamation Superintendent Adam Lanning (131 KB)
pdf Water Rate Analysis Report (1.77 MB)
pdf Water Reclamation Rate Analysis Report (606 KB)
pdf Resolution Establishing Water Reclamation Rates Effective January 1, 2017 (117 KB)
pdf Resolution Establishing Water Rates Effective July 1, 2017 (163 KB)
Recommended Action:
Consider Approving Resolutions Establishing Water and Water Reclamation Rates Effective 2017
History and Fact:
The current water and water reclamation rates were established in 2014 following a rate analysis by Willett Hofmann & Associates. Due to the recent requirement to construct a radium removal plant and the need to invest in replacing underground utility lines on an accelerated schedule, Rochelle Municipal Utilities once again hired the firm to perform a rate analysis of the two divisions.
Discussion:
The analysis included evaluating the current revenues and expenses, developing a budget based on future needs and developing a debt service schedule for the construction of a radium reduction water treatment plant. The rate modifications recommended as a result of the analysis will provide the divisions with the revenue necessary to be self-sufficient.
On October 19th, Matt Hansen of Willett Hofmann presented the findings of the study to the Utility Advisory Board and again on October 24th to the Council. The findings for both divisions result in a proposed residential rate increase of 10.7% and would result in an average increase of $7.14 per month on a typical residential user. The average combined water and sewer bill in this area is $70.55 per month and the proposed increase would put RMU at $81.62 per month. Water/Water Reclamation Superintendent Adam Lanning recommends that council approve a resolution authorizing a water reclamation rate increase effective January 1, 2017 and a resolution authorizing a water rate increase effetive July 1, 2017.
Recommendation:
Approve a Resolution Establishing Water Reclamation Rates Effective January 1, 2017
Approve a Resolution Establishing Water Rates Effective July 1, 2017
Agenda Item #4 Risk Insurance Renewal
References:
pdf Memo from Human Resources Coordinator Nancy Bingham (26 KB)
pdf Standard and Minimum-Maximum Renewal Options (170 KB)
pdf 2017 IMLRMA Renewal Comparison (21 KB)
Recommended Action:
Consider Renewal of Risk Insurance
History and Fact:
The City of Rochelle’s risk insurance plan year expires annually on December 31st. Since 1997, the City has participated in the Illinois Municipal League Risk Management Association (IMLRMA) property and liability insurance program. This insurance covers worker’s compensation, auto liability, general liability, portable equipment and physical damage to auto and property.
Discussion:
IMLRMA submitted two renewal options, the Standard renewal option and the Minimum-Maximum Program option. The Min-Max Program includes an incentive for members to control and reduce losses which may result in an overall savings. However, if losses and claim costs are greater than anticipated, penalties and contributions of approximately 36% extra could occur.
Staff solicited risk insurance proposals from other agencies in recent years and chose to remain with IMLRMA for 2017. Staff believes that it is in the City’s best interest to stay with the IMLRMA Standard Option. If the premium is paid before November 23rd, the City can take advantage of the early pay discount of 1% for a total premium of $668,988.54. This premium is an increase of 3.36% over the 2016 premium.
Recommendation:
Approve participation in the IMLRMA Standard Option at a cost of $668,988.54.
Discussion Item #1 Tax Levy 2016-17
The Mayor and City Council are required to adopt a Tax Levy Ordinance annually and file it with the County Clerks on or before the last Tuesday in December. The Ordinance Levying Taxes for the City of Rochelle 2016-17 will be included as a business item on the November 28th City Council Meeting. Finance Director Chris Cardott will provide information on the various components and discuss options related to the levy. In addition, Rochelle Police and Fire Pension Fund representatives will attend the meeting to discuss their respective recommendations and respond to questions from the Mayor and Council.
References:
pdf Rochelle Police Pension Fund Recommendation – Rochelle Police Pension Board (897 KB)
pdf Rochelle Police Pension Fund Recommendation – Lauterbach & Amen, LLP (368 KB)
pdf Rochelle Fire Pension Fund Recommendation – Rochelle Fire Pension Board (987 KB)
pdf Rochelle Fire Pension Fund Recommendation - Lauterbach & Amen, LLP (356 KB)
Discussion Item #2 RMU Cost of Service Study
On July 11th the City Council authorized a Cost of Service and Rate Design Study Proposal with Utility Financial Solutions, LLC which includes the following deliverables: an executive summary for management and the City Council, rate design for one year, detailed report for management, and a presentation to management and the City Council.
Mark Beauchamp, President of UFS, will attend the meeting to provide an overview of the Cost of Service and Rate Design Study and respond to questions from the Mayor and City Council.
