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 Statements July 2016 (805 KB)
V. PUBLIC COMMENTARY:
VI. BUSINESS ITEMS:
1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) Approve Minutes of City Council Meeting – pdf August 8, 2016 (139 KB)
b) Accept and Place on File Minutes of Airport Advisory Board – pdf April 25 (325 KB) , pdf June 9 (199 KB) and pdf June 20, 2016 (202 KB)
c) Approve Bills – pdf 072916-080416 (88 KB) , pdf 080516-081116 (86 KB) , pdf 081216-081816 (111 KB)
2) Community Development Block Grant – Sanitary Sewer Lining Project Meadowbrook Subdivision (Public Hearing and Action)
3) Engineering Agreement - Radium Removal Plant at Well #11
4) Resolution in Support of an Application to the Economic Development Administration Public Works and Economic Adjustment Assistance Program for Project Co-op
5) Minimum/Maximum Additional Billing for Contract Year 2011– Illinois Municipal League Risk Management Association
VII. DISCUSSION ITEMS:
1) Financial Review of the Rochelle Municipal Utilities Electric Department
VIII. EXECUTIVE SESSION
IX. ADJOURNMENT
Agenda Item #2 Community Development Block Grant – Sanitary Sewer Lining Project Meadowbrook Subdivision (Public Hearing and Action)
References:
pdf Project Description (89 KB)
pdf Map of Project Area (4.19 MB)
pdf Resolution of Support for a Community Development Block Grant (21 KB)
Recommended Action:
Conduct the Public Hearing
History and Fact:
Each year the State of Illinois receives an appropriation of funds from the U.S. Department of Housing and Urban Development’s Small Cities Community Development Block Grant (CDBG) program. Those funds are distributed through a grant program administered by the Illinois Department of Commerce and Economic Opportunity (DCEO), the Community Development Block Grant program (CDBG). Among other activities, CDBG funds may be used by local government for acquisition, construction, reconstruction, rehabilitation or installation of public facilities and improvements.
Discussion:
The City of Rochelle plans to submit a CDBG Public Infrastructure grant application to DCEO that will request $284,652 in grant funds to be used to line approximately 4,000 lineal feet of sanitary sewer on Springdale Drive, Sunnymeade Drive, Short Court, and Fairview Drive in the Meadowbrook subdivision. This area is low-lying, and its sewers experience increased flows during wet weather events.
RMU has televised these sanitary sewer segments and found structural issues with the sewer and deficiencies where the sections of clay sewer are joined, both of which allow ground water to infiltrate the system. When appropriate, RMU monitors the wastewater level in the manholes in this area and bypass pumps the wastewater into the storm sewer system to prevent backups into residential basements. Over the past twenty years, Rochelle has had to bypass pump numerous times in this area.
To reduce the amount of water entering the sewer system, the City proposes to install a liner system inside the existing sanitary sewer lines in this area. The cost of lining the sewer included in this request is estimated to be $354,710 (including engineering costs). Funds will also be requested for grant administration services bringing the total project cost to $376,710, $284,652 of which is proposed to come from DCEO’s CDBG program and $92,058 will be provided by RMU’s Water Reclamation Capital Outlay account. The CDBG funds will pay construction and grant administration costs, and the City’s funding will pay construction, engineering, and some grant administration costs.
A door-to-door income survey done in the target area showed that 85% of its residents are low-to-moderate income so 85% of the total project cost, or $320,203, will benefit low-to-moderate income persons. Of the $284,652 in CDBG funds to be requested, $243,320 will benefit low-to-moderate income persons.
Recommendation:
Conduct the Required Public Hearing
Approve Resolution of Support for a Community Development Block Grant and Commitment of Local Funds for a Sanitary Sewer Lining Project in Meadowbrook Subdivision
Agenda Item #3 Engineering Agreement - Radium Removal Plant at Well #11
References:
pdf Memo from Superintendent of Water/Water Reclamation Adam Lanning (120 KB)
pdf Engineering Agreement (362 KB)
Recommended Action:
Consider an Engineering Agreement with Willett Hofmann & Associates for Services related to a Radium Removal Plant at Well #11.
History and Fact:
On April 13th the Illinois Environmental Protection Agency (IEPA) notified Rochelle Municipal Utilities (RMU) that the level of radium sampled at one of the City’s four wells, Well 11 near the high school, exceeded the maximum contaminant level (MCL). As a result, RMU staff took Well 11 offline.
According to state statute, RMU is required to respond in writing to the IEPA outlining the actions that will be taken to return the well back to compliance and whether we are willing to enter into a Compliance Commitment Agreement (CCA) with the state. Superintendent Lanning had a series of conversations with IEPA representatives and they agreed to resolve this violation with one of two options. RMU will move forward with the planning and design of a radium removal plant at Well 11 and continue quarterly sampling and testing for radium over the next year. If we are able to lower the running average for radium below the MCL for 4 consecutive quarters then we will be in compliance and have no reason to proceed with the construction of a treatment plant. If the continued sampling does not yield results below the MCL, we will need to construct the treatment plant as outlined in the CCA at an approximate cost of $3.4 million. On June 27th the City Council approved a CCA with these provisions.
Discussion:
At the request of RMU staff, Willett Hofmann & Associates has submitted an engineering agreement for services related to a radium removal plant at Well #11 including the design, construction services, preparation of a water rate report and preparation of IEPA loan application documents. The total cost of these services is estimated to be $453,000 and will not be exceeded without prior authorization from the City.
Superintendent of Water/Water Reclamation Adam Lanning recommends proceeding with the scope of work as outlined. Since this issue was discovered in mid-April, the funding was not included in the 2016-17 budget.
Recommendation:
Authorize the Mayor to sign an Engineering Agreement with Willett Hofmann & Associates for Services related to a Radium Removal Plant at Well #11.
Agenda Item #4 Resolution in Support of an Application to the Economic Development Administration Public Works and Economic Adjustment Assistance Program for Project Co-Op
References:
pdf Memo from Economic Development Director Jason Anderson (35 KB)
pdf Resolution in Support of an Application to the Economic Development Administration (131 KB)
Recommended Action:
Consider Resolution in Support of an Application to the Economic Development Administration
History and Fact:
On August 8th the Mayor and City Council approved a Resolution in Support of an Application to the Economic Development Administration (EDA) Public Work and Economic Adjustment Assistance Program for Project Co-Op. This grant will cover up to 40% (and possibly more) of a $7.0M project known as “Project Co-Op” to extend two tracks east and south of the current City of Rochelle Railroad (CIR) terminus.
Discussion:
The EDA has requested, as part of the application for the $2.8M Public Works and Economic Adjustment Assistance Grant for Project Co-Op, a second resolution which states that the City Council would approve to bond up to $3.5M of the $4.2M match for the construction of Project Co-Op. The City's bond counsel will provide a letter to verify that the City of Rochelle is eligible to borrow up to $3.5M for the purposes of constructing rail to expand the CIR. The passing of this resolution is critical to the grant application's approval. Furthermore, applications for other infrastructure grants are being sought after to further offset the City's match.
Recommendation:
Approve a Resolution in Support of an Application to the Economic Development Administration Public Works and Economic Adjustment Assistance Program for Project Co-Op
Agenda Item #5 Minimum/Maximum Additional Billing for Contract Year 2011– Illinois Municipal League Risk Management Association
References:
pdf Memo from HR Coordinator Nancy Bingham (27 KB)
pdf Minimum/Maximum Additional Billing (149 KB)
Recommended Action:
Consider Additional Billing for Contract Year 2011
History and Fact:
The City of Rochelle has participated in the Illinois Municipal League Risk Management Association (IMLRMA) property and liability insurance program since 1997. This insurance program covers worker’s compensation, auto liability, commercial general liability, portable mobile equipment, and the physical damage to auto and property. In addition, the City took advantage of the IMLRMA’s “Minimum/Maximum Premium Program” for several years in order to reduce our premium costs by accepting some risk of loss.
Discussion:
In December of 2010 the Mayor and Council approved an Ordinance Authorizing the Execution of the Minimum/Maximum Contribution Agreement for the period December 31, 2010 to December 31, 2011. At that time it was noted that “selecting the minimum payment option subjects the City to additional premiums of approximately $159,794 if our claims exceed program limits.” The IMLRMA agreement includes a provision for billing on a yearly basis when paid claim dollars are in excess of the Minimum Loss Fund until such time as the Maximum Loss Fund limit is attained or all claims initiated during the coverage period are closed. Due to some large worker compensation and general liability claims the City has received an additional billing of $60,167.64.
There is one large worker’s compensation claim (death) that is still open, with a death benefit to the widow for 25 years.
Recommendation:
Authorize the City Manager to pay the additional billing of $60,167.64 for contract year 2011 to the IMLRMA.
Discussion Item #1
Earlier this year the City Manager engaged Utility Financial Solutions (UFS) to perform a financial review of the Rochelle Municipal Utilities Electric Department. UFS has completed its review and Mark Beauchamp, President of UFS, will attend the council meeting to provide information on the recommended debt coverage ratios, minimum cash reserves and target operating income.
