City of Rochelle City Council met July 12.
Here are the minutes provided by the council:
I. CALL TO ORDER:
1. Pledge to the Flag led by Mayor Bearrows
2. Prayer by Pastor Doug Cowan.
II. ROLL CALL: PRESENT Councilor T. Tom McDermott, Bil Hayes, D. Dan McDermott, John Gruben, Kate Shaw Dickey, Rosie Arteaga, and Mayor Bearrows. Also, present City Manager Jeff Fiegenschuh and City Clerk Sue Messer. Absent: None. A quorum of seven was present.
III. PROCLAMATIONS, COMMENDATIONS, ETC: None.
IV. REPORTS AND COMMUNICATIONS:
1. Mayor's Report – Thanked everyone for the 7/3 & 7/4 celebrations.
2. Council Members
3. Good News - Water Meter Installation Jay Mulholland and Wastewater Dept. The Fire Department, Jason Anderson, Mike Hudetz and Blake Toliver were recognized for their contributions to the Independence Day Celebrations. Street Department was recognized for the downtown cleanup in preparation for Governor Pritkzer. Mayor Bearrows was recognized for his community outreach to a 9-year-old boy.
4. Employee Introduction - Carmen Carr
5. Motion made by Councilor T. McDermott, Seconded by Councilor Shaw-Dickey, “I make a motion to appoint Jacob Becker as a Voting Member of the Planning and Zoning Commission with a Term to Expire 7/1/2026.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Motion passed 7-0.
6. Motion made by Councilor D. McDermott, Seconded by Councilor Gruben, “I move the Council Accept the Resignation of Matthew Booble from the Utility Advisory Board Effective Immediately.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Motion passed 7-0.
V. PUBLIC COMMENTARY: None.
VI. BUSINESS ITEMS:
1. CONSENT AGENDA ITEMS BY OMNIUS VOTE with Recommendations:
1) Approve Minutes of City Council Meeting - 6/28/21
2) Accept and Place on File Minutes of Golf Course Advisory Committee - 04/26/21
3) Accept and Place on File Minutes of Railroad Advisory Board - 02/27/20
3) Approve Exceptions - 06/22/21-06/28/21, 6/29/2021-7/6/2021
4) Approve Payroll – 06/14/2021 – 06/27/2021
5) Accept and Place on File Minutes of Planning & Zoning Commission Meetings - 4/5/21 and 4/19/21
6) Approve Special Event Request - Fiesta Hispaña 9/18/2021.
Motion made by Councilor D. McDermott, Seconded by Councilor Hayes, “I move consent agenda items (1) through (6) be approved by Omnibus vote as recommended.” Voting Yea: Councilors T. McDermott, Gruben, D. McDermott, Shaw-Dickey, Arteaga, and Mayor Bearrows. Nays: None. Motion passed. 7-0.
2. Consideration and action on an ordinance authorizing the issuance of Electric Revenue Bonds of the City in an amount not to exceed $18,000,000, or in lieu thereof, General Obligation Bonds (Electric System Alternate Revenue Source) in an amount not to exceed $18,000,000, for the purpose of paying the costs of improving the City’s electric system. Conditional Amended and Restated Host Agreement and Agreement for the Operation and Development of City of Rochelle Landfill No. 2. This Agreement is conditioned upon the IEPA granting a final and non-appealable order to eliminate the need to exhume Cell Number 1 of the Rochelle Landfill. If the need to eliminate the exhumation of Cell Number 1 is eliminated, the City will not have to expend $850,000 for its portion of the of the exhumation costs. In addition, this agreement would eliminate the City’s responsibility to pay $750,000 towards the Mulford Road improvements. Lastly, the Operator will make a payment of $1,460,000 to the City of Rochelle and a donation of $40,000 to the Rochelle Area Community Foundation. The City’s annual free waste tonnage will increase to over 17,000 tons and increase annually thereafter. This is a significant benefit to the City because the construction waste landfill will be closing shortly. Pursuant to this agreement, the landfill will be closed by December 31, 2040 or until there is no remaining capacity, whichever occurs first. In order to ensure that there is no remaining capacity, the annual limit for waste that can be disposed of at the landfill will increase to 650,000 tons per year. Next, the City will receive compensation for a new category of wasted that is received at the landfill. Previously, the City did not receive compensation for dirt, gravel, or other materials used as ground cover or used to construct internal roads. With the new agreement, the City will be compensated for all waste received at the landfill, for which the operator is compensated. This will ensure that the City receives the maximum compensation for the waste that is received at the landfill. Lastly, the staff and city attorney engaged an expert to review the annual IEPA reports and reports from Creston’s experts to determine the need for the exhumation. After a review of the documentation, Eric Peterson, Professor at Illinois State University, concluded that there is currently no leakage from the landfill, nor would the benefits of exhuming the waste and placing it into a landfill cell with a membrane liner, ensure that there would be no contamination or environmental impact. This is especially true given the lack of any environmental issues reported. Cell Number 1 currently has monitoring wells and there is no evidence that the clay liner has failed or is likely to fail in the future. Thus, the recommendation from the expert is that the exhumation is not needed. A Resolution Authorizing the City Manager to Execute an Intergovernmental Agreement with the Village Of Creston. This particular Intergovernmental Agreement (IGA) memorializes the agreement to cooperate between the City of Rochelle and the Village of Creston to ensure that both municipalities take the necessary steps to bring the Conditional Amended and Restated Host Agreement and Agreement for the Operation and Development of City of Rochelle Landfill No. 2 to fruition. Further, the cooperation extends to taking actions that will ensure that the requirements for the boundary agreement (the third related agenda item) have been satisfied. The terms of the IGA restate the terms of the agreement with the Landfill Operator, as well as the terms identified in the boundary agreement. Jurisdictional Boundary Line and Intergovernmental Cooperation Agreement. For approximately the last 15 years there have been discussions between the City of Rochelle and the Village of Creston regarding a boundary line agreement between the municipalities. There were some previous discussions as to whether I-39 should be the boundary line; however, no such agreements were reached. Recently, the City annexed property into its jurisdiction to develop the Pilot Travel Plaza. The City expanded its utilities and now the area between I-39 and Mulford Road on Route 38 is developable. In order to stave off any disputes in the future and in conjunction with the revised landfill agreements, staff determined that it was prudent to enter into a boundary line agreement with the Village of Creston. Pursuant to the proposed agreement the following boundaries would be established for future annexations:
A) The WEST jurisdictional boundary line between Creston and Rochelle shall commence on THE EASTERN MOST NORTH/SOUTH RIGHT OF WAY OF MULFORD ROAD and Rochelle will have jurisdiction of all property West of that line.
B) The NORTH boundary line of the City’s jurisdictional area will be the south right of way of Lind /Gillis Rd. And the south boundary line will be the Ogle/Lee County Line.
Pursuant to this boundary agreement there will be a shared revenue area to the East of I-39 to Mulford Road with the North and the South boundaries described above.
In that shared revenue area, Creston will receive the following:
For the Pilot Travel Plaza:
a) The City of Rochelle shall pay to the Village of Creston after the City of Rochelle has been reimbursed in the amount of $500,000 as and for the amount of its infrastructure costs from all revenue derived therefrom, but in any event no later than 5 years from the date of this Agreement, to the Village of Creston 25% of all revenue for as identified for Future Development. For Future Developments in the Shared Revenue Area the City will pay Creston:
a) 25% of the Non -Home Rule sales tax as long as both municipalities have a Non-Home Rule Sales Tax at the time of any development subject to this Agreement.
b) 25% of the Hotel/Motel tax as long as both municipalities have a Hotel/Motel Tax at the time of any development subject to this Agreement.
c) 25% of the Illinois Retailers Tax/occupational tax paid to or rebated back to the municipality, as long as both municipalities have adopted such a tax at the time of any development subject to this Agreement. This tax specifically excludes any Utility Taxes and Excise Taxes.
d) 25% of the future Home Rule Sales Tax whether for general merchandise, special merchandise or fuel, so long as both municipalities are home rule. If either one of the municipalities is not home rule, then it shall not be able to share in any Home Rule Sales Tax.
e) 25% of all gaming revenue derived in the SHARED REVENUE AREA.
The above payments shall be made based upon net revenues calculated after the deduction of any and all tax rebates or tax incentive, including tax increment financing districts, development incentive provided to any developer, or any infrastructure improvement costs incurred by the City of Rochelle. Motion made by Councilor Shaw-Dickey, Seconded by Councilor Arteaga, “I move the Council recess into a Public Hearing for a Jurisdictional Boundary Line and Intergovernmental Cooperation Agreement.” Voting Yea: Councilors T. McDermott, Hays, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Nay: None. Motion passed 7-0. City Manager Fiegenschuh available to answer questions. There were no comments. Motion made by Councilor T. McDermott, Seconded by Councilor D. McDermott, “I move the Council return to open session.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw Dickey, Arteaga, and Mayor Bearrows. Nay. None. Motion passed 7-0. Motion made by Councilor T. McDermott, Seconded by Councilor D. McDermott, “I move Ordinance 21-5265, an Ordinance Approving a Conditional Amended and Restated Host Agreement and Agreement for the Operation and Development of City of Rochelle Landfill No. 2, be approved.” Voting Yea: Councilors T. McDermott, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Nay: Councilor Hayes. Motion passed 6- 1. City Manager Fiegenschuh, Creston Attorney Dave Tess, Lacy Ballard from Waste Connections, City Attorney Dominick Lanzito, Eric Peterson Professor at Illinois State University and Tom Hilbert from Rochelle Waste Disposal responded to questions. Motion made by Councilor T. McDermott, Seconded by Councilor Arteaga, “I move Ordinance 21-5266, an Ordinance Approving a Jurisdictional Boundary line and Intergovernmental Cooperation Agreement, be approved.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Nay: None. Motion passed 7-0. Motion made by Councilor T. McDermott, Seconded by Councilor Shaw-Dickey, “I move Resolution 21-31, a Resolution Authorizing the City Manager to Execute an Intergovernmental Agreement with the Village of Creston, be approved.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw Dickey, Arteaga, and Mayor Bearrows. Nay: None. Motion passed 7-0.
3. Consideration and action on an ordinance authorizing the issuance of Electric Revenue Bonds of the City in an amount not to exceed $18,000,000, or in lieu thereof, General Obligation Bonds (Electric System Alternate Revenue Source) in an amount not to exceed $18,000,000, for the purpose of paying the costs of improving the City’s electric system. Staff has identified several infrastructure projects (transformer, substation, solar, 5kV, etc) that will be necessary in the next few years in the electric department. Rather than deplete the cash reserves, staff recommends taking advantage of the low interest rate environment and issue bonds. The debt service payments will be paid out of operating revenues and a rate increase is not anticipated. The authorizing ordinance is the first step in the process of determining if this option is feasible for the City of Rochelle. The City’s financial advisors anticipate rates in the 1.6% range and the debt service will only run 15 years to coincide with the possible forced closed of the Prairie State Generating Campus. The anticipated annual debt service payments will be approximately $1.457 million annually. The City is considering two separate issuances of $9,000,000 each to allow local banks to bid on the bonds. If approved, the City will continue to the next step in the process by holding a public hearing (BINA) on July 26. Stephan Roberts from Baird Public Finance will be in attendance to answer questions. City Manager Fiegenschuh and Blake Toliver available to answer questions. Motion made by Councilor T. McDermott, Seconded by Councilor D. McDermott, “I move Ordinance 21-5260, an Ordinance authorizing the issuance of Electric Revenue Bonds of the City in an amount not to exceed $18,000,000, or in lieu thereof, General Obligation Bonds (Electric System Alternate Revenue Source) in an amount not to exceed $18,000,000, for the purpose of paying the costs of improving the City’s electric system, be approved.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Nays: None. Motion passed 7-0.
4. Ordinance Waiving the Competitive Bidding Requirements and Authorizing the City Manager to Enter into an Agreement for GIS Locating Services with Cultivate Geospatial Solutions, LLC. City Council approved purchase of an Enterprise Asset Management (EAM) system in November 2020. In conjunction with the EAM, an analysis was done on the City’s use of the Geographic Information System (GIS). GIS is a system of computer hardware, software, data, and personnel to manage, analyze, and present information about a location. GIS links maps to databases and creates a visualization of data and allows interactivity between the map and the data in the database. The study found that the City operated in silos and departments inefficiently used more than one system. More than $60,000 is spent each year on consultants for the various GIS programs the City currently uses that don’t meet the needs of staff. In addition to that fixed expense, the City also pays engineers as much as $40,000 each year during construction projects for GIS work. Staff is proposing a single solution for GIS that integrates with the EAM, eliminates data redundancy, bridges all departments together, and provides transparency of GIS data across the City. Having one solution provides efficiency with City staff, better asset tracking, and improved citizen response times. The proposed contract with Cultivate Geospatial Solution will provide the technical resources the City needs to implement a City-wide GIS program. They will commit a ½ time full time equivalent dedicated resource person as the GIS Manager for the City with expertise in the EAM. This person will work directly with a City staff member to ensure all data is complete for the strategic plan. Every City Department will have the ability to have specific components on the GIS map. By partnering a City staff member and a GIS Manager with Cultivate Geospatial Solution, the City will more effectively use the EAM and provide better service to the community. Doug Lynch from Cultivate Geospatial Solution will be present at the meeting to discuss the proposed contract. City Manager Fiegenschuh and Pat Brust available to answer questions. Doug Lynch from Geospatial Solutions provided a presentation. Motion made by Councilor Hayes, Seconded by Councilor T. McDermott, “I move Ordinance 21-5261, an Ordinance Waiving the Competitive Bidding Requirements and Authorizing the City Manager to Enter into an Agreement for GIS Locating Services with Cultivate Geospatial Solutions, LLC, be approved.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Nay: None. Motion passed 7-0.
5. Creation of GIS Position. In conjunction with the recommendation of approving the contract with Cultivate Geospatial Solutions, staff recommends adding a full time GIS Position. Currently there are three employees who collect GIS data when time allows. The City will need a dedicated employee to work directly with Cultivate to identify and maximize the GIS information for the City. Staff has met and believes that a full-time employee is needed due to the amount of work that will need to be done. There are several gaps in the data that need to be filled in plus several departments such as IT, Police, Fire, Economic Development, and Community Development that will need to start from scratch. Job responsibilities would include collect and analyze GIS data need tickets submitted daily, utilize information from various sources (MS Access databases, MS Excel spreadsheets and documents such as deeds, field notes, etc.) to create GIS maps to support field personnel, perform digital feature extraction from multiple data sources via digitalization, and support GIS system needs and requirements to implement improved work methods. This position would receive training directly from CGS with the goal to manage GIS within the City after the three-year contract with CGS expires. Over the past few years, several positions across the City have not been filled due to early separations. The GIS position would be a new position that is critical to our future growth and infrastructure management. The position will report to the City Manager in the short-term and will be budgeted for through Administrative Services and funded by all departments including the rail and utilities. City Manager Fiegenschuh available to answer questions. Motion made by Councilor D. McDermott, Seconded by Councilor Shaw-Dickey, “I move Council approve the creation of a new, fulltime GIS position.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Nay: None. Motion passed 7-0.
6. Resolution Approving a Redevelopment Agreement for the Real Estate Located at 1600 Ritchie Road, Rochelle, IL with 1600 Ritchie Court, LLC and a Resolution Establishing Utility Service Price Schedule for Rate Class 168. : 1600 Ritchie Court, LLC (“Jackpot”) is an Illinois limited liability company and the owner of 1600 Ritchie Court, the former Nippon Sharyo east building. Jackpot is redeveloping this building to serve as a manufacturing building for its metal and steel products. In order to modify the building to serve its manufacturing needs, Jackpot will need to make several infrastructure upgrades to the building, including a larger electric feeder cable and related equipment. The proposed improvements and installation of new manufacturing equipment in the Building by Jackpot will require the RMU to enhance and upsize its distribution facilities and substation to be constructed near the East building in order to accommodate the additional electrical load that will be needed for the operations of Jackpot in the Building. As a result, the RMU is installing two 34.5kV transformers at the new Ritchie Road distribution substation. These transformers will serve Jackpot and other electric customers located in the southern portion of Rochelle. The total cost of the substation improvements and reimbursement to Jackpot will be approximately $5,100,000 and will be recovered over the term of the redevelopment agreement. Next, not only will Jackpot be a significant user of electricity, City Staff believes that Jackpot will create between 100-125 jobs paying approximately $52,000, plus benefits. Pursuant to the redevelopment agreement, Jackpot will have to purchase its electricity exclusively from the RMU for a period of up to eight years. After year one, Jackpot will have to purchase a minimum of 14MW of electricity for the final seven years. Further, if Jackpot uses 15MW on average for the first seven years, then the contractual obligations will be satisfied and Jackpot can use other sources of electricity, such as wind and solar generation. The City will reimburse Jackpot up to $2,000,000 for its electric infrastructure costs. The reimbursement to Jackpot will be paid in two installments as follows: (i) the first installment shall be equal to 75% of the $2,000,000 shall be payable within one hundred eighty (180) days after the first month in which Jackpot purchases the Minimum Monthly Amount and pays the electricity invoice and (ii) the second installment for the remaining 25% of the City’s reimbursement and shall be payable on the first anniversary of the first payment. City Manager Fiegenschuh available to answer questions. Motion made by Councilor T. McDermott, Seconded by Councilor D. McDermott, “I move Resolution 21-27, a Resolution Approving a Redevelopment Agreement for the Real Estate Located at 1600 Ritchie Road, Rochelle, IL with 1600 Ritchie Court, LLC, be approved.” Voting Yea: Councilor T. McDermott, Hayes, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Attorney Lanzito available to answer questions. Motion made by Councilor Hayes, Seconded by Councilor Arteaga, “I move Resolution 21-28, a Resolution Establishing Utility Service Price Schedule for Rate Class 168, be approved.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Nays. None. Motion passed 7- 0.
7. Ordinance Further Continuing the Temporary Suspension of Late Fees as Identified in Chapter 98 Article I of the Rochelle Municipal Code. Due to the ongoing economic effects of the pandemic and the implementation of our new utility billing software staff feels it make sense to extend the moratorium on utility late fees through August 31, 2022. This will help reduce staff time calculating late fees while the implementation process is taking place. This is another great benefit of owning our own utility systems. The city has not charged late fees or penalties since the pandemic started in early 2020. City Manager Fiegenschuh available to answer questions. Motion made by Councilor D. McDermott, Seconded by Councilor Hayes, “I move Ordinance 21-5262, an Ordinance Further Continuing the Temporary Suspension of Late Fees as Identified in Chapter 98 Article I of the Rochelle Municipal Code, be approved.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Nays: None. Motion passed 7-0.
8. Resolution Approving a Redevelopment Agreement for the Real Estate Located at 430 Lincoln Highway, Rochelle, IL with E's Corner Deli, LTD. E’s Corner Deli is the lessee of a commercial property located at 430 Lincoln Highway. E’s Corner Deli intends to redevelop the property by modifying the building and developing the space into a deli/restaurant. The term of the lease commenced on August 1, 2020 and terminates on July 31, 2025. The City wishes to reimburse E’s CORNER DELI up to $40,000.00. The grant may only be used to reimburse any expenditures for the installation of a larger water service from the City’s water main to the building and for the installation of a new sanitary sewer line to the building. The grant is conditioned upon E’s Corner Deli commencing business operations by January 1, 2022. City Manager Fiegenschuh asked to have this item removed from the agenda as E's Corner Deli, LTD is no longer interested.
9. Ordinance Approving the Preliminary and Final Plat of Subdivision for 101 Cherry Avenue and 144 Fourth Avenue; and an Ordinance Granting Variation Relating to Setbacks. Benjamin and Patricia Burch have petitioned to subdivide the property located at 101 Cherry Ave. and 144 Fourth Ave., Parcel # 24-24-457- 015; 24-24-457-002 and 24-24-457-013. The property is zoned I- 2 General Industry and is 2.88 acres. The purpose of subdividing is to restructure the existing three lots to a cleaner three lot subdivision. The proposed subdivision meets the minimum lot requirements found in Section 110-141 of the Rochelle Municipal Code. The intent is to give the building at 144 Fourth Ave. a proper commercial footprint, separate the commercial and residential properties and to adjust lot lines so that they do not pass-through existing structures. Currently the subdivision is known as “Palmer’s Third Addition.” The proposed name is “Burch Subdivision.” Fehr Graham developed a preliminary and final plat of subdivision on behalf of the Burch’s for a three-lot subdivision with easements. On July 6, 2021, the Planning and Zoning Commission voted 6 to 0 to approve the proposed Preliminary and Final Plat of Subdivision for 101 Cherry Avenue and 144 Fourth Avenue. Michelle Pease available to answer questions. Motion made by Councilor D. McDermott, Seconded by Councilor Shaw-Dickey, “I move Ordinance 21-5263, an Ordinance Approving the Preliminary and Final Plat of Subdivision for 101 Cherry Avenue and 144 Fourth Avenue, be approved.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Nay: None. Motion made by Councilor D. McDermott, Seconded by Councilor T. McDermott, “I move Ordinance 21-5264, an Ordinance Granting Variation Relating to Setbacks, be approved.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Nay: None. Motion passed 7-0.
10. Resolution Approving a Redevelopment Agreement with Glenwood Equities, LLC. The City has been working with the developer of one and possibly two new retail locations in Rochelle (one on the north side of town and on the south side, not convenience stores). For the north side location, they are considering property located at East Flagg Road west of Highway 251. The development of the property will require and extension and upgrade to electrical service, extending water service to the west lot line of subject property and extending and upsizing the sanitary sewer/wastewater service to the west lot line of the subject property. Staff has been negotiating a development agreement with said developer due to the possibility of increased economic activity brought on by the one possibly two projects. The developer is requesting assistance with a portion of the water and sewer line extensions. Staff is recommending the City fund the agreement up to a total of $150,000 for these infrastructure improvements. The payments will be made in three payments the first occurring 180 days after the completion of the project. The final two payments will occur annually thereafter on the anniversary of the initial payment. This is like our agreements with Love’s and Pilot. The funds will be paid from the water and water reclamation funds. Michelle Pease available to answer questions. Motion made by Councilor Shaw Dickey, Seconded by Councilor Arteaga, “I move Resolution 21-30, a Resolution Approving a Redevelopment Agreement with Glenwood Equities, LLC, be approved.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows. Nay: None. Motion passed 7-0.
VII. DISCUSSION ITEMS:
VIII. EXECUTIVE SESSION:
IX. ADJOURNMENT:
Meeting adjourned at 8:34. Motion made by Councilor D. McDermott, Seconded by Councilor Hayes, “I move the Council adjourn.” Voting Yea: Councilors T. McDermott, Hayes, D. McDermott, Gruben, Shaw-Dickey, Arteaga, and Mayor Bearrows
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