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:
• Constitution Week – pdf September 17- 23, 2016 (54 KB)
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 – pdf August 22, 2016 (165 KB)
b) Accept and Place on File Minutes of Golf Course Advisory Committee – pdf July 25, 2016 (40 KB)
c) Approve Bills – pdf 081916-082516 (94 KB) , pdf 082616-090116 (88 KB)
d) Approve Payroll – pdf 080116-081416 (52 KB) , pdf 081516-082816 (56 KB)
e) Authorize Rochelle Township High School Homecoming Parade – pdf September 29, 2016 (407 KB)
2) Track Use Agreement between Ryder Integrated Logistics, LLC and the City of Rochelle – City Industrial Railroad
VII. DISCUSSION ITEMS:
VIII. EXECUTIVE SESSION
IX. ADJOURNMENT
Agenda Item #2 Track Use Agreement between Ryder Integrated Logistics, LLC and the City of Rochelle – City Industrial Railroad
References:
pdf Memo from Economic Development Director Jason Anderson (36 KB)
pdf Track Use Agreement (799 KB)
Recommended Action:
Consider a Track Use Agreement between Ryder Integrated Logistics, LLC and the City of Rochelle
History and Fact:
The City and Ryder had an operating agreement for many years which governed the switching and maintenance of the City Industrial Railroad (CIR). During that time Ryder subcontracted the switching operations to the Burlington Junction Railway (BJRY). In early 2015 the City’s agreement with Ryder expired and the council approved a five year agreement with the BJRY for the switching and maintenance services.
Since the time in which Ryder handled the CIR's switching needs, volumes of railcars have increased from 3,200 railcars per year (of which 2,800 cars were bound for the Ryder facility) to more than 10,000 railcars per year. The increase is due to non-Ryder traffic. Expansion of the CIR has not been able to keep up with the increasing demand for space to switch and store the increasing volume of railcars.
Discussion:
A temporary solution has been to continue to utilize the Ryder yard for storing and switching non-Ryder railcars bound for other industries. The City and the Ryder Company have come to an agreement that would allow the CIR to continue to operate within the Ryder yard for the purposes of switching non-Ryder railcars. The CIR will compensate Ryder by designating $90 per Ryder railcar from the switch absorption fees which are paid to the CIR from the Class I- Railroads. The term of the proposed three year agreement is April 16, 2015 through April 15, 2018. Compensation for the rail cars that have been switched through the CIR to Ryder from April 16, 2015 to the present has been calculated and will be paid upon approval of this contact. Going forward the CIR will compensate Ryder on a monthly basis. The long term solution for additional space is being addressed through the expansion of the CIR to the south.
Economic Development Director Jason Anderson recommends that the City Council approve the Track Use Agreement.
Recommendation:
Approve a Track Use Agreement between Ryder Integrated Logistics, LLC and the City of Rochelle
