City Council Meeting Agenda - October 23, 2017

I. CALL TO ORDER:
• Pledge to the Flag
• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

IV. REPORTS AND COMMUNICATIONS:
• Mayor
• Council Members
• Good News – Officer Ryan Beery and K9 Axel
                        Tim Isley
                        Sue Messer

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:
1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) Approve Minutes of City Council Meeting – pdf 10/10/17 (200 KB)
b) Approve Exceptions – pdf 10/04/17-10/16/17 (68 KB)
c) Approve Bills – pdf 10/17/17 (206 KB)
d) Approve Payroll – pdf 09/25/17-10/8/17 (52 KB)
e) pdf Accept and Place on File Budget Summary Month Ending 9/30/17 (810 KB)
2) Resolution Approving an Administrative Policy for Mitigating Energy Transaction Risks
3) Ordinance Authorizing the Acquisition of the Property Commonly known as 122 South 9th Street by Deed in Lieu of Foreclosure
4) Extension of Loan Guaranty for Rail Right of Way
5) Ordinances Approving Utility Easement Agreements – Steward Road Transmission Line

VII. DISCUSSION ITEMS:
1) Solar Rate

VIII. EXECUTIVE SESSION
2) Pending or imminent litigation. Section (c) (11)
3) Purchase or lease of real property for City’s use. Section (c) (5)

IX. ADJOURNMENT


Agenda Item #2 - Administrative Policy for Mitigating Energy Transaction Risk

Staff Contact: Jason Bird, Superintendent of Electric Operations

Summary: The City of Rochelle, through Rochelle Municipal Utilities, owns and operates an electric distribution system in accordance with Illinois law for the purpose of providing and delivering low cost, reliable power to its residents. The City is dedicated to keeping the cost of electricity stable and competitive through a variety of means, including ownership of generation, participation in power projects through its membership in the Northern Illinois Municipal Power Agency and entry into power and energy purchase transactions with wholesale providers.

This administrative policy for mitigating energy transaction risks (Policy) details the essential components of a prudent risk management process for its energy procurement activities. The Policy is intended to provide an overarching framework and control structure specifically for the City's participation in deregulated wholesale energy markets. The Policy recognizes that there are certain risks inherent in such transactions. The City is responsible for minimizing those risks in order to meet its mandate of maintaining low and stable electric rates for its retail customers, as well as to maintain its strong financial standing more generally.

Recommendation: Adopt a Resolution Approving an Administrative Policy for Mitigating Energy Transaction Risks

Supporting Documents:
pdf Administrative Policy for Mitigating Energy Transaction Risks (47 KB)
pdf Resolution for the Administrative Policy for Mitigating Energy Transaction Risks (68 KB)


 Agenda Item #3 - Ordinance Authorizing the Acquisition of the Property at 122 South 9th Street by Deed in Lieu of Foreclosure

Staff Contact: Michelle Pease, Community Development Director

Summary: The current owner of the property at 122 South 9th Street, Cheryl Barnes, has agreed to convey the property to the City through the deed in lieu of foreclosure process. In 2016 an order was entered in Ogle County finding the home at the property to be structurally unsound, dangerous, and beyond reasonable repair and authorizing its demolition. The structure was subsequently demolished at the City’s expense and a Municipal Lien was recorded in the amount of $11,722.94 against the owner for the costs associated with the demolition.

In view of the lack of equity in the property and to avoid further time-consuming, expensive and needless litigation, the owner has agreed to accept a settlement in which the City would pay the owner $500 in exchange for the property being transferred to the City by deed in lieu of foreclosure. If the City chose to foreclose instead of accepting a deed in lieu, the costs of foreclosing would be approximately $1,500 and the foreclosure process would take a minimum of 10 months.

City staff believes it is in the community’s best interests to take ownership of the property in order to minimize the blighting influence on the neighborhood and allow the property to be put to a productive use. The transfer of the property, without the necessity of litigation, is of direct benefit to the City, and a one-time lump sum payment of $500 to the owner is fair and adequate consideration for the City’s entry into this transaction. There are currently taxes owed on the property, but back taxes will be extinguished when the property is in public ownership.

 

Funding Sources:    
Source: Budgeted Amount: Proposed Expenditure:
Community Development $4,000 $500

 

Recommendation: Approve an ordinance authorizing the acquisition of a property at 122 South 9th Street by Deed in Lieu of Foreclosure.

Supporting Documents:
pdf Ordinance (81 KB)
pdf Deed in Lieu of Foreclosure (144 KB)
pdf GIS parcel (403 KB)


Agenda Item #4 - Consider an extension of Loan Guaranty for Rail Right of Way

Staff Contact: Jason Anderson, Economic Development Director

Summary: In 2016 the City of Rochelle applied for and received a $3.42M EDA grant for the purpose of extending the City of Rochelle Railroad (Project Co-Op). Since this grant was awarded the City has been informed of a matching grant that is available from the IDOT Freight Rail Program in the amount of $2.58M. The total estimated cost for Project Co-Op is $7M. The project required additional rail right of way be purchased so that the project could move forward. In December of 2016 the City Council authorized the City Manager to sign a loan guaranty which allowed GREDCO to borrow $697,095 for one year for the purchase of the rail right of way on behalf of the City. Interest on the loan is covered through the City of Rochelle Railroad revenues.

While GREDCO continues to work on future rail right of way acquisitions and the City continues to seek additional funding sources for rail expansions, staff recommends extending the loan through December 31, 2018.

 

Funding Sources:    
Source: Budgeted Amount: Propsed Expenditure:
Rail Revenue  $21,000 $21,000

Recommendation:

Approve GREDCO’s request to extend the Loan Guaranty for another year; which will allow GREDCO to continue the advancement of the project to further develop the City of Rochelle Industrial Rail.

Supporting Documents:

pdf Original Loan Document (246 KB)


Agenda Item #5 - Ordinances Approving Utility Easement Agreements - Steward Road Transmission Line

Staff Contact: Jason Bird, RMU Electric Superintendent

Summary: The City has been working for several months to obtain utility easements for the Steward Road Reconductoring project. Through negotiation and design, we have been able to reduce the size and cost of the easements. Including these two proposed agreements, a total of ten easement agreements have been finalized and two more are anticipated in the next month.

Funding Sources:     
Source Budgeted Amount: Proposed Expenditure:
Capital Project Steward Line $2.5million (Expect to complete project within budget)
    $15,750 - Herrmann
    $28,110 - Brossman

Recommendation:

Authorize an Ordinance Approving a Utility Easement Agreement with Linda Herrmann

Authorize an Ordinance Approving a Utility Easement Agreement with Brossman Marital Trust

Supporting Documents:
pdf Ordinance Approving a Utility Easement Agreement with Linda Herrmann (84 KB)
pdf Easement Agreement (1.15 MB)
pdf Legal description (702 KB)
pdf Ordinance Approving a Utility Easement Agreement Brossman Marital Trust (84 KB)
pdf Easement Agreement (1.15 MB)
pdf Legal description (761 KB)


Discussion Item #1 - Solar Rate

Staff Contact: Barbara Bell, RMU Customer Service Supervisor

Summary: RMU retained Utility Financial Solutions LLC to conduct an avoided cost determination for the value of solar. The study was conducted using RMU’s system load and class load data. Mark Beauchamp from UFS will present the results of the study and respond to questions from the Mayor and City Council.