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
• pdf Financial Statement September 2015 (847 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 13, 2015 (110 KB)
b) Approve Bills – pdf 10/02/15-10/08/15 (80 KB) , pdf 10/09/15-10/15/15 (78 KB)
c) Approve Payroll – pdf 09/28/15-10/11/15 (49 KB)
d) Approve Downtown Rochelle Association’s Request for the Christmas Walk pdf December 4, 2015 (55 KB)
e) Authorize Lighted Christmas Parade – pdf December 4, 2015 (221 KB)
2) 6 MW Skid Load Generators Phase II Project
3) Ordinance Authorizing Lease of Property – 8764 South Highway 251
VII. DISCUSSION ITEMS:
VIII. EXECUTIVE SESSION
IX. ADJOURNMENT
Agenda Item #2 6 MW Skid Load Generators Phase II Project
References:
pdf Memo from Director Utilities Business Management and Energy Production Dan Westin (178 KB)
Recommended Action:
Consider project commitment on additional 6 MW Skid Load Generators
History and Fact:
RMU generator sets go back to vintages of 1947 and the maintainability of these units has gone down drastically. In addition these units were designed for continuous running – not peak shaving. Overall generator set availability has been down to as low as 40 % which does not provide enough capacity to drive down the summer capacity charges.
RMU’s ability to generate capacity is very important for peak shaving, the ability to reduce our demand on the grid when market prices for energy are exceptionally high, especially during the hot summer. Peak shaving is critical for RMU given the capacity cost increases in PJM (which is the Energy region RMU participates in). The capacity costs are measured in $/MWDay and are charged for the full planning year starting June 1st (energy costs of $/kWh is a completely different measure).
The capacity charges for Planning Year 2018/2019 were identified in the PJM August auction as
$ 215/MWDay. That is $ 43,800 per MW per year.
Discussion:
RMU staff and BHMG have created a project for an additional 6MW of highly reliable capacity to be operational by June 1, 2016. The project includes an efficient integration into RMU’s distribution network with a large amount of reuse of the initial skid load project.
The total project is estimated to be $ 3,353,000 and includes the following:
General Site Work/Fuel System - $450,000
Electrical/Controls - $1,084,000
Permitting/Startup - $70,000
Generator Purchase - $1,749,000
This also includes the Rice-Neshap equipment as well as the automation of the units.
The return on this investment is expected to be 184%.
The UAB formally recommended approval of the investment in these units at its meeting in September.
Funds for the units are in the budget as part of the transmission line upgrade which has been delayed with the remainder coming from the Depreciation, Improvement and Extension account. As to timing of these investments, the capacity charges are already defined for the next three planning seasons so any delay will create more rate increases due to the charges that RMU would incur.
Recommendation:
Approve proceeding with 6 MW Skid Load Generator Phase II Project
Agenda Item #3 Ordinance Authorizing Lease of Property at 8764 South Highway 251
References:
pdf Memo from Airport Manager Daniel Keller (37 KB)
pdf Ordinance Authorizing Lease of Property (69 KB)
Recommended Action:
Consider an Ordinance Authorizing Lease of Property at 8764 South Highway 251
History and Fact:
In 2009 the City Council authorized staff to move forward with the purchase of a 0.52 acre parcel of property, including a residential dwelling, located north of the airport at 8764 South Highway 251. This parcel was identified in the Airport Layout Plan as property the City needed to either purchase or acquire an avigation easement over in order to extend the runway to 5,000 feet. The property was subsequently purchased in December of 2009 and has since been annexed into the City with a zoning classification of I-2.
Discussion:
In the past City staff members have rented the residential dwelling on a month to month basis. Attorney Cooper has advised that, per statute, the City Council may authorize a municipal officer to sign leases with a term of less than two years. The proposed ordinance would allow the City Manager to sign a new lease and future leases for this property.
The City has negotiated a month to month lease beginning on November 1st with a monthly rental payment of $650. In addition the lease specifies that the tenants will pay all utilities including gas, electricity, telephone, water, sewer and garbage pickup.
Recommendation:
Approve an Ordinance Authorizing Lease of Property at 8764 South Highway 251
