City Council

MINUTES SPECIAL MEETING OF CITY COUNCIL CITY OF DEKALB January 24, 2012 The City Council of DeKalb, Illinois, held a Special meeting on Tuesday, January 24, 2012 at 6:00 p.m. in the Large Conference Room (212) of the DeKalb Municipal Building, 200 South 4th Street, DeKalb, Illinois. Notice was given and the meeting was called pursuant to the provisions of Chapter 2, Section 2.05 of the Municipal Code of the City of DeKalb, Illinois. City Clerk Kapitan called the meeting to order at 6:00 p.m. A. ROLL CALL: City Clerk Kapitan called the roll and the following members of City Council were present: Alderman David Jacobson (arrived at 6:10 p.m.), Alderman Tom Teresinski, Alderman Kristen Lash, Alderman Ronald Naylor, Alderman David Baker and Alderman Monica O’Leary. Absent was Mayor Kris Povlsen. Also present were: Mark Biernacki, City Manager; T.J. Moore, Public Works Director, Steve Kapitan, City Clerk and Diane Wright, Deputy City Clerk. City Clerk Kapitan asked for a motion to appoint a temporary chair. MOTION Ald. Naylor moved to appoint David Baker as Temporary Chair; seconded by Ald. Teresinski. Motion carried on voice vote. City Clerk Kapitan declared the motion passed. B. CONSIDERATION ITEM: Mr. Biernacki advised Council that they would be interviewing the two candidates that have been forwarded from the selection committee for the lobbyist. 1. EVALUATION OF LOBBYIST CANDIDATES ● The Normandy Group – Largent Government Solutions, LLC Ms. Christine Pellerin of the Normandy Group and Mr. Phillippe Largent of Largent Government Solutions arrived at the meeting. Ms. Pellerin thanked Council for the opportunity to address them and gave her background with The Normandy Group. She stated that she is a founding partner of a nine-person firm based in Washington D.C. with some former members of Congress on staff. She advised that she would be the principal contact for the City and full access would be provided by her staff. Ms. Pellerin Special Meeting January 24, 2012 Page 2 of 8 stated that some of the firm's clients include Cuyahoga County, Ohio, City of San Marcos, Texas and the City of Pensacola, Florida. Mr. Largent thanked Council for the opportunity. He stated that he is a Principal of Largent Government Solutions, which was established in last year.; prior to that he was Vice President of Government Affairs for a trade association. His duties during that period included developing and executing federal lobbying efforts for the trade association, he said. He stated that he has worked with Senators Durbin, Kirk, Congressman Jackson and Department of Transportation Secretary LaHood. Additionally, he said, he has worked for Illinois House Speaker Madigan as a Staff Analyst. Mr. Biernacki proceeded with questions for Ms. Pellerin and Mr. Largent. He asked if they have the capacity to take on the City as a new client. Mr. Largent replied that they are small enough to take on more clients, and the City would be able to work with the two principal officers of the companies. Ald. Jacobson arrived at 6:10 p.m. Ms. Pellerin added that she is responsible for five clients and works with the entire staff. Her firm, she said, has forty-fifty clients. Also, she said, if they are hired, they would return soon to do an assessment and help the City identify areas for funding efforts. Additionally she stated that the dynamics in Washington have changed dramatically and cities need to have multiple campaigns for projects. Mr. Largent added that the environment is incredibly competitive and cities must compete with other municipalities for a scarce amount of resources. Also, he said, his commitment is to insure the City is represented even if they must engage at the state level to make sure the most opportunities are available. Mr. Biernacki asked that given the new climate in Washington, how have they altered their approach. Ms. Pellerin replied that it is important to identify as many avenues as possible to approach. She added that the City could partner with community colleges to take advantage of grants for local training from the Department of Labor and Education. Also, she said, they would look for opportunities for police, fire and the airport. There is money outside of Washington, she said, and they would look for prospects at the local level. She added that public schools need to be stronger and suggested looking at charter or magnet schools to attract businesses to DeKalb. Mr. Biernacki asked the candidates to describe their past and recent successes for funding for road improvements and airports. Ms. Pellerin replied they have been successful through the ear mark process, and most recently through positioning clients. She referred to her packet regarding transportation projects. Additionally she said she has experience with private developers who partner with cities for roads. Most recently, she said, she has been successful in the last few months attaining Veteran funding for employment and training. Mr. Biernacki asked the candidates to describe their successes with revitalization and public safety projects. Ms. Pellerin replied that she was able to get funding for Violence Against Law Enforcement Office Resilience and Survivability Initiative program (VALOR). Mr. Biernacki  Special Meeting January 24, 2012 Page 3 of 8 asked about revitalization and redevelopment funding. Ms. Pellerin replied she worked with a small city and partnered with a university for a grant. Mr. Biernacki stated that the City previously contracted with the Daley Policy Group for fifteen years. He asked the candidates how would they build on the success the City has realized while bringing in a new approach. Ms. Pellerin replied that it would be difficult to compare since most of the successes were as a result of the ear mark process. However, she said they she would look for opportunities to partner and collaborate with other entities for funding. Mr. Largent agreed that it is a different climate in Washington and the state level. He stated that the City must look for different opportunities and collaborate when needed and escort the proposals through the process. Ms. Pellerin added that the new process offers an opportunity to build programs that are much larger in scope. Mr. Biernacki stated that this contract will be for federal-level lobbying and added that having connections to state-level agencies would be another opportunity. He asked the candidates to describe their experiences and contacts in the state. Mr. Largent replied there could be funds or opportunities at the federal level that are pass-throughs to state agencies. He stated that having someone in Springfield is a huge benefit, and added that it isn’t an uncommon strategy to include support from local state officials. Ms. Pellerin stated that much of what they do is decided at the local level and funding is being competed at the state level. Ald. Lash asked the candidates if their answers indicate they will be lobbying the state for funding for the City. Mr. Largent replied that the proposal didn’t address include that effort, but it can be considered. He added that if there will be high level communications with state officials, they will need to address that. Ms. Pellerin stated that if the City wanted them to work with the state, they would be willing to do so. Ald. Lash inquired if that would be an additional charge to their proposal. Ald. Baker stated that the candidates may have gotten this far in the selection process because of their state connections. He added that the City needs both Springfield and Washington connections and asked if there would be an additional charge for Illinois lobbying. Mr. Largent responded there would not be; he was simply stating that lobbying in Springfield wasn’t part of the RFP. Ms. Pellerin added that she and Mr. Largent would split the retainer equally so that the City would have full charge of both of their firms. Additionally she said there would not be an additional charge for expenses for them to come to DeKalb. She stated that they would tour the facilities which is part of insuring they will get the job done. Mr. Biernacki asked if there would be separate billing from each of the companies. Ms. Pellerin stated there would be one bill. Mr. Biernacki asked for confirmation that all extras are embedded in their price; Ms. Pellerin replied affirmatively. Mr. Biernacki stated that one of the issues with the former lobbyist was the lack of accountability. He asked how the candidates would report their progress to Council. Ms. Pellerin replied that it depends on the client; some require monthly updates; some require weekly conference calls. She stated that they are adaptable and they will provide the progress in whatever form and regularity that Council requests. She added they could appear at Council meetings. Special Meeting January 24, 2012 Page 4 of 8 Ald. Gallagher asked the candidates if they represent municipalities in Illinois. Ms. Pellerin responded they do not represent any in Illinois. Ald. Gallagher asked for the differences in funding secured in fiscal years 2010 and 2011. Ms. Pellerin stated she didn’t have the figures available, but it was down in 2011 due to the cessation of ear marked funding. She added that Congress doesn’t have the control it did with ear marks. However, she said, that ear marks may return in another form. Ald. Lash asked why the City needs a lobbyist. Ms. Pellerin replied that the federal government is granting more funding and being abler to maneuver through the federal agencies is essential but very difficult. She added that the lobbyist can tailor the City’s requests to the funding available. Ald. Gallagher left the room at 7:41 p.m. Ms. Pellerin stated that the lobbyist can assist with the Army Corps of Engineers and can work with the FAA to get the airport prioritized on their list. Also, she said, they would perform a community assessment, talking with the project managers and assisting them through the federal agency process. Ald. Gallagher returned at 7:44 p.m. Ald. Teresinski asked who would be writing the grants on behalf of the City. Ms. Pellerin replied that staff would write the grant, having knowledge of the technicalities, and her efforts would be to assist in positioning the request. She added that her role would be finding different opportunities for the City. Ald. Teresinski inquired what portion of their clients are municipalities; Ms. Pellerin replied they do quite a bit of work with municipalities and added it is probably 10% of their client base. Temporary Chair Baker thanked Ms. Pellerin and Mr. Largent for coming in to meet Council. Ms. Pellerin and Mr. Largent left the meeting at 6:55 p.m. Temporary Chair Baker called a five-minute break at 7:55 p.m. Council resumed at 7:00 p.m. ● mCapitol Management Mr. Biernacki asked the representatives to introduce themselves and provide a view of their experience and qualifications, focusing on their experience with municipalities. Mr. Gary LaPaille stated as the President of mCapitol Management, he started the company in 1995. The office is based in Washington D.C. with offices in Chicago and California, he added. He introduced Lee Janger, a member of the lobby team and Ann Wius who manages the Illinois office. Mr. LaPaille stated that they are a bi-partisan government relations firm with approximately thirty-five (35) clients. Their services include, he said, administrative and regulatory assistance, research and intelligence, and development of action plans. He noted that their firm is strong in communicating with the clients; some receive monthly reports, and some request bi-weekly  Special Meeting January 24, 2012 Page 5 of 8 reports. He pointed out that with their three offices they are able to call upon a variety of expertise and experience and all offices work to assist their clients. Their clients range from Fortune 100 companies, municipalities, smaller villages, health care and manufacturing, he said. Strategy meetings are held weekly, he said, where mCapitol staff discusses each client and their needs. Mr. LaPaille advised that his career includes Chief of Staff to Speaker Madigan in the Illinois House. Additionally he served in the State Senate from 1991-1995. While in the Senate, he said, he was a ranking member of the local government committee where he met regularly with Mayors and Council Members of municipalities in Illinois. Mr. LaPaille provided a summary of the Vice Presidents of the firm and noted that many firm contacts with both sides of the political arena, both in Illinois and in Washington. Also, he said, Mr. Janger began his career on the staff of the Speaker of the House; he has been with mCapitol for over three years. Mr. Janger stated that there were questions regarding communication from the lobbyist at their initial interview. He advised that included in the packet are examples of their monthly reports. He added that they will prepare reports specifically directed to the client's needs and accommodate the client with the regularity of the reporting. Mr. Biernacki asked who would be the principal contact. Mr. LaPaille stated that Mr. Janger, but he also considers every client of the firm as his client and believes in a "hands-on" approach. He emphasized that mCapitol works as a team and there are twenty (20) staff members available. Mr. Biernacki asked if mCapitol has altered their approach with their lobbying efforts given the different climate in Washington regarding funding requests. Mr. Janger replied they have adjusted; typically the funding requests are at the committee level. He noted that members do not formally request funding; there must be some communication by the committees. Mr. LaPaille added they can utilize grant writers; mCapitol advocates the requests to the Illinois delegation on behalf of DeKalb. Ald. Lash asked if mCapitol would be writing the grant requests for the City. Mr. LaPaille replied that it would vary; if the City has the staff to write the grant; mCapitol would review it and insure everything is included in the request. Mr. Janger added that mCapitol would not have all the specific data and expertise that City staff may have on the specific request, but assists in these cases on a structural basis. He noted that mCapitol would do the actual writing in some matters depending on the nature of the request. Mr. Biernacki asked for recent successes regarding municipalities, specifically road improvements and airports. Mr. Janger replied mCapitol has had success with federal funding for roads in San Diego. Additionally, he said, they achieved funds to expand the Kalamazoo airport. Mr. LaPaille suggested that if hired, they would meet with NIU to partner in lobbying efforts and stressed that everyone who has a "stake" in insuring DeKalb prospers should be part of the City's endeavors. He noted that they were successful in receiving funding to build a "green" building for Jackson Hospital. They have worked for Hoffman Estates, he said, and are in the process of lobbying to free up highway funds there. Special Meeting January 24, 2012 Page 6 of 8 Mr. Biernacki asked about mCapitol's contacts at the state level. Mr. LaPaille replied that he is very open to call upon the Illinois Speaker of the House and many in the firm have positive relations with state government officials. Mr. Biernacki stated that the City had great success with the Daley Policy Group; however, Council decided to take a different approach this year. He asked how would mCapitol build on those successes and provide something new for the City. Mr. LaPaille replied that mCapitol enjoys many networks throughout both the House and Senate. He added that the combined experience of Mr. Janger's and his in Springfield are very valuable. Mr. Janger added that because of that, they are able to expand the City's relationship with key committee chairmen. Mr. LaPaille pointed out that they have never lost a client due to changes in the Senate or House, either at the state or local level and stressed they are a bi-partisan firm. Also, he said, they are extremely pro-active in researching every opportunity possible for their clients and will look for discretionary funds where there is a surplus. Mr. Biernacki asked for a review of their proposed fees and charges. Mr. LaPaille stated that the average fee for lobbyist services in Washington is $10,000 per month, but recognizes that governments are stressed financially. He said that they proposed $8,500 monthly, but are more than willing to come back with a "best" offer and are willing to meet with Council individually regarding all aspects of the contract. He stressed that mCapitol is willing to accommodate the City's budget. Temporary Chair Baker asked if they would be willing to drop to $6,000 plus expenses. Mr. LaPaille replied if the Council requests that, he could sign off on that. Ald. Naylor asked what their approach would be to seek funding for the completion of Annie Glidden. Mr. Janger replied an outline would be drafted including estimated cost, assessments, any outstanding issues. This would be presented and discussed with staff and mCapitol would then look for any funding opportunities that may be available. He added they would seek support with the Illinois delegation, including, possibly the Governor and develop a campaign for DeKalb. Ald. Gallagher stated that any public safety funding would be a primary focus for the City and noted that there are some fire stations that may need to be rehabbed. He added that the City was paying $72,000 annually to the Daley Policy Group and discussed reducing the monies spent on lobbying efforts. He stated that he is interested that mCapitol would consider reducing their initial bid. Mr. LaPaille said he could consider $66,000. Ald. Teresinski stated that working with NIU for funding is important to the City. He asked if there is any potential funding for housing redevelopment, including apartments and restructuring. Mr. LaPaille noted that he and his wife are very close to Kathy Buettner at NIU and it would be easy for him to work together. Mr. Biernacki thanked mCapitol for meeting with Council. The mCapitol Management group left the meeting at 7:55 p.m. Temporary Chair Baker called for a five-minute break at 7:55 p.m. The meeting resumed at 8:00 p.m. with the absence of Ald. Jacobson.  Special Meeting January 24, 2012 Page 7 of 8 Mr. Biernacki asked Council for direction on proceeding. Ald. Lash said she would like to hear what other Council Members' thoughts, but would prefer to wait for the Committee of the Whole to make a decision. Ald. Teresinski said the need for a lobbyist remains. Ald. Jacobson returned at 8:02 p.m. Ald. Teresinski stated that The Normandy Group doesn't have much experience at the municipal level and was less impressed with them. He added that mCapitol has an experienced staff with high-end contacts. He noted that the NIU aspect is very important to the City. Additionally, he said, he believes mCapitol may have more capabilities to influence at the state level, and Normandy's contacts there appear to be weak. He said that he would support mCapitol Management. Ald. Gallagher stated that mCapitol is much more in touch with what the City wants to accomplish. He noted that he does not support lobbying, but it is needed to receive funding. He added that mCapitol is the stronger group and have deep-seated ties to Illinois. He added that Normandy's experience appears to be in Texas, and stated he supports mCapitol. Ald. Naylor stated he had no issues with the Daley Policy Group and the cost now appears to be basically the same. Much effort has been spent on the issue, he said, but recognizes the decision of the majority. He added that mCapitol has stronger contacts at the state level even though major funding is through the federal government. Ald. Naylor stated he supports mCapitol. Ald. O'Leary said she prefers The Normandy Group and added that mCapitol has many contacts, but they irritated her. Also, she said, The Normandy Group appeared more open and honest. Ald. Jacobson noted he is not a fan of lobbying. He said that regionalization of the airport has been discussed and that should be part of the lobbying efforts, but he would be more comfortable sharing these costs. He is concerned that mCapitol's price could escalate after one year. He added that he would lean toward The Normandy Group for DeKalb. He said he is worried DeKalb would get lost "in the shuffle" with mCapitol. Finally, he said, he would support either group, but would lean toward The Normandy Group. Temporary Chair Baker said the City should consider options to renew the contract with possible two and three year options. He noted he would have been content with The Normandy Group if mCapitol hadn't made its presentation. He added mCapitol has many contacts and would be able to involve sub-contractors, if necessary. Ald. Lash said that initially five firms were interviewed by the sub-committee and they were ranked by the members. She noted that The Normandy Group was the first choice at that time. She also said she was concerned about being "lost in the shuffle" with mCapitol. She pointed out that The Normandy Group did not interview today as well as they did during the initial interview. She said she would support The Normandy Group if she had to make a choice. However, she said, she is still not convinced the City needs a lobbyist. Also, she asked if there should be a vote on whether to even hire a lobbyist. Special Meeting January 24, 2012 Page 8 of 8 Temporary Chair Baker said Council needs to consider whether it wants to hire a lobbyist and if approved, ask the two firms if they will guarantee a "not to exceed price" after the initial contract. Ald. Lash said that the vote originally was 4-3 against a lobbyist. Ald. O'Leary clarified that the issue of funding was brought back and her vote was to put the $72,000 back in the budget for a lobbyist. Discussion ensued regarding the budget for the lobbyist. Ald. Teresinski summarized that the process has been completed to insure that the funding is in place in the budget for a lobbyist. Temporary Chair Baker asked if there is any Council Member besides Ald. Lash who doesn't want to spend the $72,000 that is in the budget for a lobbyist. Ald. Lash, Gallagher and Jacobson indicated their preference to bring the item to a vote at the next meeting. Mr. Biernacki said that his direction is to place the item for discussion on the February 13 Committee of the Whole meeting along with renewals and limits. Ald. Gallagher clarified that items that need to be voted are: 1) does Council want a lobbyist, and 2) which firm to select. Mr. Biernacki stated that the item placed on the COW would be to direct staff to negotiate final terms of a contract. MOTION Ald. Gallagher moved to adjourn the meeting; seconded by Ald. Teresinski. Motion carried on voice vote. Temporary Chair Baker declared the meeting adjourned at 8:35 p.m. DIANE WRIGHT, Deputy City Clerk Approved by City Council February 27, 2012