City Council

MINUTES CITY OF DEKALB REGULAR CITY COUNCIL MEETING NOVEMBER 26, 2018 The City Council of DeKalb, Illinois held a Regular City Council meeting on November 26, 2018 in the City Council Chambers of the DeKalb Municipal Building, 200 South Fourth Street, DeKalb, Illinois. Mayor Smith called the meeting to order at 6:23 p.m. A. ROLL CALL City Clerk Lynn Fazekas called the roll, and the following members of City Council were present: Alderman Bill Finucane, Alderman Michael Marquardt, Alderman Pat Fagan, Alderman Kate Noreiko, Alderman Mike Verbic, Alderman Tony Faivre, and Mayor Jerry Smith. Also present were: Interim City Manager Ray Munch, Economic Development Planner Jason Michnick, Transit Manager Marcus Cox, City Engineer Zac Gill, Public Works Director Tim Holdeman, Fire Chief Eric Hicks, Police Chief Gene Lowery, and City Attorney Dean Frieders. B. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES Fire Chief Hicks led the Pledge. C. APPROVAL OF THE AGENDA – ADDITIONS/DELETIONS Interim City Manager Munch suggested Council move Item G5 (Ordinance 2018-085, “Tax Increment Financing Regulations”) up to the G2 position so that it could precede the other TIF-related agenda items. MOTION Alderman Noreiko moved to approve the agenda as recommended. Alderman Marquardt seconded. VOTE Motion to amend the agenda was approved by 7-0-1 roll call vote. Aye: Marquardt, Fagan, Noreiko, Verbic, Faivre, Finucane, Smith. Nay: none. Absent: Jacobson. Mayor Smith declared the agenda approved as amended. D. PUBLIC HEARINGS Regular Meeting Minutes November 26, 2018 Page 2 of 12 1. 2018 Annual Property Tax Levy Mayor Smith opened the Public Hearing at 6:29 p.m. Interim City Manager Munch presented “not to exceed” levy and abatement amounts. Mark Charvat urged the Council to keep the levy at the same amount for each household as previously discussed, and to capture new construction growth only. After ascertaining that no one else wished to speak on this item, Mayor Smith closed the public hearing at 6:31 p.m. E. SPECIAL ITEMS OR PRESENTATIONS AND CITIZENS’ COMMENTS 1. Special Items a. Recognizing and Congratulating Fire Chief Eric Hicks for Over 29 Years of Service to the City of DeKalb on the Occasion of His Retirement. Interim City Manager Munch and Mayor Smith thanked the Chief for his years of service and dedication to the City. b. Proudly DeKalb  Operation Warm Presented by City of DeKalb Firefighter Noah Millard and Amy Fontana of the DeKalb Classroom Teacher’s Association. Mr. Millard reported on this program that collects and distributes coats to children. 2. Presentations a. Elder Care Services FY2018 Human Services Funding Annual Report by Executive Director Tara Russo. Ms. Russo reported on growth of programs, particularly in helping people who have self-neglect and related issues. b. DeKalb County Convention and Visitor’s Bureau Annual Report. DCCVB Executive Director Debbie Armstrong gave a presentation of programs and financial impacts. She said the report is also available on the organization’s website.  Regular Meeting Minutes November 26, 2018 Page 3 of 12 3. Approval of the Mayor's Appointments No appointments were made during this meeting. 4. Public Participation Dwayne Brown commented on the impact of high sales taxes, pension burden, and bond ratings in DeKalb. Mark Charvat commented on leaf collection being canceled due to the snowfall and urged Council to arrange one more collection for the season. He also commented that the roads were bumpy from snow. Steve Kapitan said a portion of cable franchise fees historically have gone toward General Fund expenses instead of the costs to fund a public access channel. He urged Council to examine how these fees are used. Brad Hoey complimented the executive director of DeKalb County Convention and Visitors’ Bureau. He discussed upcoming events and pointed out the return on investment arising from state matches of local dollars. F. CONSENT AGENDA 1. Approval of City Council Minutes No meeting minutes were presented for approval at this meeting. 2. Receive & File a. Accounts Payable and Payroll through November 26, 2018, in the Amount of $1,957,343.44. b. Investment and Bank Balance Summary through September 2018. c. Year-to-Date Revenues and Expenditures for the General Fund and Water Fund through September 2018. Mayor Smith read the title of each item of the Consent Agenda. MOTION Alderman Noreiko moved to approve the Consent Agenda. Alderman Faivre seconded. VOTE Regular Meeting Minutes November 26, 2018 Page 4 of 12 Motion was approved on 7-0-1 roll call vote. Aye: Fagan, Noreiko, Verbic, Faivre, Finucane, Marquardt, Smith. Nay: none. Absent: Jacobson. Mayor Smith declared the Consent Agenda approved. G. ITEMS FOR SEPARATE ACTION 1. Ordinance 2018-069 Amending Chapter 38 “Intoxicating Liquors”, Section 38.25 “Hours for Sale of Alcohol”, as it Pertains to Altering the Hours of Sale for Alcoholic Beverages at Grocery Stores. (Second Reading) Mayor Smith read the ordinance by title only. The Mayor also noted that Alderman Fagan was recusing himself from voting due to conflict of interest. MOTION Alderman Finucane moved to approve the ordinance. Alderman Noreiko seconded. City Attorney Frieders answered questions about license fees in the context of store size. VOTE Motion was approved by 6-0-2 roll call vote. Aye: Noreiko, Verbic, Faivre, Finucane, Marquardt, Smith. Nay: none. Absent: Fagan (recusal), Jacobson. Mayor Smith declared the ordinance passed. 2. Ordinance 2018-085 Adopting Chapter 37 "Tax Increment Financing Regulations". (First Reading) Mayor Smith read the ordinance by title only. MOTION Alderman Verbic moved to approve first reading. Alderman Finucane seconded. Economic Development Planner Michnick gave an overview of proposed provisions to be added to the city’s Municipal Code. Council members desired better review and documentation of projects such as return on investment (ROI), inclusion of public input into projects, and tracking of staff hours. Alderman Faivre said he would like to see a provision for regular review of projects for ROI. Council directed staff to add this to the ordinance in advance of second reading.  Regular Meeting Minutes November 26, 2018 Page 5 of 12 VOTE Motion was approved on 6-1-1 roll call vote. Aye: Faivre, Finucane, Marquardt, Fagan, Noreiko, Smith. Nay: Verbic. Absent: Jacobson. 3. Creating the Central Business District Tax Increment Financing and Omnibus Approval of the Following Ordinances: a. Ordinance 2018-070 Adopting Tax Increment Allocation Financing for the DeKalb Central Business District Redevelopment Project Area. (Second Reading) b. Ordinance 2018-071 Approving the City of DeKalb, IL DeKalb Central Business District Redevelopment Project Area Tax Increment Financing District Eligibility Study and Redevelopment Plan and Project. (Second Reading) c. Ordinance 2018-072 Ordinance 2018-072 Designating the Proposed DeKalb Central Business District Redevelopment Project Area Pursuant to the Tax Increment Allocation Redevelopment Act. (Second Reading) d. Ordinance 2018-073 Adopting an Amendment to the City of DeKalb Central Area Tax Increment Financing District. (Second Reading) e. Ordinance 2018-074 Ordinance 2018-074 Adopting an Amendment to the City of DeKalb Tax Increment Financing District No. 2. (Second Reading) Mayor Smith read each ordinance of the omnibus package by title only. MOTION Alderman Noreiko moved to pass the ordinance. Alderman Faivre seconded. Economic Development Planner Michnick explained the impacts of a new TIF if it should pass, including projected surplus distributions. Council discussed the implications of passing these ordinances in the context of not having passed a related intergovernmental agreement (IGA), including the impact to the projected surplus of TIF funds. Steve Kapitan pointed out that TIF districts don’t automatically run for 23 years, that it’s a statutory maximum and that the County Home TIF didn’t last 23 years. He warned against very large TIF districts with vague goals. He also suggested sales tax could be disclosed in aggregate in a TIF district. Regular Meeting Minutes November 26, 2018 Page 6 of 12 Mark Charvat said the vote could be delayed if opinions diverge, and to allow Alderman Jacobson to attend (saying another Alderman had been so accommodated). He gave reasons for delaying establishment of a new TIF district until the air is cleared. Alderman Fagan asserted an obligation to work with other entities and for the City not to go it alone. He said he’s not against a new TIF but would like to see it tabled for now. MOTION Alderman Verbic moved to table the TIF ordinances until there is consensus among the taxing body partners and a better grasp of the budgetary situation. Following further discussion, Alderman Finucane pointed out that Alderman Verbic’s motion had not been seconded. MOTION Alderman Verbic moved again to table the discussion. Alderman Fagan seconded. Following further discussion, about TIF-related timelines and whether to table or postpone, Alderman Verbic withdrew his motion to table and Alderman Fagan withdrew his second. MOTION Alderman Verbic moved to postpone the vote on the TIF ordinances to after the first of the year, or as Mayor and staff see fit to bring it back to Council. Alderman Fagan seconded. VOTE Motion was approved on 7-0-1 roll call vote. Aye: Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: none. Absent: Jacobson. Mayor Smith declared as passed the motion to postpone. 4. Ordinance 2018-075 Amending the Fiscal Year-End December 31, 2018 Budget of the City of DeKalb, Illinois and Authorizing an Intergovernmental Agreement Relating to Tax Increment Financing. (Second Reading) Mayor Smith read the ordinance by title only. MOTION  Regular Meeting Minutes November 26, 2018 Page 7 of 12 Alderman Noreiko moved to approve the ordinance. Alderman Faivre seconded. Mayor Smith read part of a recent letter from the DeKalb County State’s Attorney and said recent developments have changed his mind about his “aye” vote since the November 13 first reading of this ordinance. VOTE Motion failed on 0-7-1 roll call vote. Aye: none. Nay: Marquardt, Fagan, Noreiko, Verbic, Faivre, Finucane, Smith. Absent: Jacobson. Mayor Smith declared the ordinance failed. 5. Ordinance 2018-084 Amending the Fiscal Year-End December 31, 2018 Budget and Authorizing a Declaration of Surplus from Tax Increment Financing District 2. (First Reading) Mayor Smith read the ordinance by title only. MOTION Alderman Noreiko moved to approve first reading. Alderman Faivre seconded. Economic Development Planner Michnick and Attorney Frieders explained Council’s options and answered questions about the tracking of administrative expenses out of the TIFs. Council members discussed use of undesignated funds. VOTE Motion failed on 0-7-1 roll call vote. Aye: none. Nay: Marquardt, Fagan, Noreiko, Verbic, Faivre, Finucane, Smith. Absent: Jacobson. Mayor Smith declared the motion failed. 6. Ordinance 2018-086 Authorizing the 2018 Levy and 2019 Collection of Taxes In and For the Corporate and Municipal Purposes and Special Service Areas of the City of DeKalb for the Fiscal Year 2019. (First Reading) Mayor Smith read the ordinance by title only. MOTION Alderman Verbic moved to approve first reading. Alderman Marquardt seconded. Interim City Manager Munch presented two levy options. Regular Meeting Minutes November 26, 2018 Page 8 of 12 Aldermen discussed the City’s policy to fund pensions with property taxes only, versus holding the line on property taxes for residents by using other general funds to make up the difference between contributions from property taxes and the pension obligations. MOTION Alderman Finucane moved to amend the ordinance to reflect Option 2, to capture full EAV growth of 4% (the original language of the ordinance being Option 1, of capturing only new construction growth of .2%). Alderman Noreiko seconded. VOTE Motion to amend failed by 3-4-1 roll call vote. Aye: Noreiko, Finucane, Marquardt. Nay: Fagan, Verbic, Faivre, Smith. Absent: Jacobson. Mayor Smith declared the motion failed. VOTE Motion to adopt Option 1 (original motion) passed on 7-0-1 roll call vote. Aye: Verbic, Faivre, Finucane, Marquardt, Fagan, Noreiko, Smith. 7. Ordinance 2018-087 Abating Taxes Levied for Corporate Purposes of the City of DeKalb for the Tax Levy Year 2018 (Bonds). (First Reading) Mayor Smith read the ordinance by title only. MOTION Alderman Faivre moved to approve first reading of the ordinance. Alderman Finucane seconded. Interim City Manager Munch explained that, although the City’s debt numbers do not match what the County has, the City will nevertheless abate its full debt service (City’s only, not the library’s) and corrections will be made by the time of second reading. VOTE Motion was approved on 7-0-1 roll call vote. Aye: Faivre, Finucane, Marquardt, Fagan, Noreiko, Verbic, Smith. Nay: none. Absent: Jacobson. Mayor Smith declared the motion passed. 8. Ordinance 2018-088 Amending Chapter 38 “Intoxicating Liquors”, Section 38.24 “Powers of the Liquor Commissioner”, as it Pertains to Providing a  Regular Meeting Minutes November 26, 2018 Page 9 of 12 Process for Granting Deviations from Otherwise Applicable Distance Setback Requirements. (First Reading) Mayor Smith read the ordinance by title only. MOTION Alderman Verbic moved to approve first reading. Alderman Marquardt seconded. Attorney Frieders explained the new option of a waiver, which is based on a change in state law. Council members discussed when and how the City might use this measure. VOTE Motion was approved on 6-1-1 roll call vote. Aye: Finucane, Marquardt, Noreiko, Verbic, Faivre, Smith. Nay: Fagan. Absent: Jacobson. Mayor Smith declared approval of first reading. 9. Ordinance 2018-089 Amending Chapter 30 “Official Comprehensive Plan", Section 30.01 “Adoption”, by Adopting the Annie Glidden North Revitalization Plan. (First Reading) Mayor Smith read the ordinance by title only. MOTION Alderman Finucane moved to approve first reading. Alderman Marquardt seconded. Economic Development Planner Michnick said the plan document has been changed, based on input from the Task Force, to help avoid displacement of residents via redevelopment projects. Council members briefly discussed funding preferences and the need to monitor progress, and how the “no displacement” policy would work. Steve Kapitan said he found the plan well thought out and inclusive of community involvement and wants a community development organization to work the same way. VOTE Regular Meeting Minutes November 26, 2018 Page 10 of 12 Motion was approved on 7-0-1 roll call vote. Aye: Marquardt, Fagan, Noreiko, Verbic, Faivre, Finucane, Smith. Nay: none. Absent: Jacobson. Mayor Smith declared the motion passed. MOTION Alderman Finucane moved to waive second reading and approve the ordinance. Alderman Verbic seconded. VOTE Motion was approved by 7-0-1 roll call vote. Aye: Fagan, Noreiko, Verbic, Faivre, Finucane, Marquardt, Smith. Nay: none. Absent: Jacobson. Mayor Smith declared the motion passed. 10. Resolution 2018-154 Authorizing the Finance Department to Extend a Line-of- Credit to the Voluntary Action Center of DeKalb County from September 1, 2018, through September 30, 2018, via the City General Fund Until Grant Funds are Received, for an Additional $168,222.60, for a Total Line-of-Credit Not to Exceed $542,826.82. Mayor Smith read the resolution by title only. MOTION Alderman Noreiko moved to approve the resolution. Alderman Finucane seconded. Transit Manager Cox explained the hurdles in getting timely reimbursement from the state and the steps City staff have taken in response. VOTE Motion was approved on 7-0-1 roll call vote. Aye: Noreiko, Verbic, Faivre, Finucane, Marquardt, Fagan, Smith. Nay: none. Absent: Jacobson. Mayor Smith declared the resolution passed. 11. Resolution 2018-155 Resolution Authorizing an Amended Cooperative Agreement for the DeKalb-Sycamore Area Transportation Study, Changing the Lead Agency from the City of DeKalb to DeKalb County. Mayor Smith read the resolution by title only. MOTION Alderman Finucane moved to pass the resolution. Alderman Faivre seconded.  Regular Meeting Minutes November 26, 2018 Page 11 of 12 Public Works Director Holdeman explained the amendment, which changes the lead DSATs agency from City of DeKalb to DeKalb County. VOTE Motion was approved on 7-0-1 roll call vote. Aye: Verbic, Faivre, Finucane, Marquardt, Fagan, Noreiko, Smith. Nay: none. Absent: Jacobson. Mayor Smith declared the resolution passed. H. NEW OR UNFINISHED BUSINESS 1. Proposed FY2019 Budget. Interim City Manager Munch related last summer’s discovery of a funding gap for this year. He said the 2019 budget is essentially balanced but errors in revenue projections for 2018 will affect fund balances. He reviewed budget-balancing measures that already have consensus for 2019 and previewed items for upcoming discussions. 2. 2019 Street Maintenance Program. City Engineer Gill discussed plans for streets, sidewalks and bridges, and answered questions about bonding requirements. 3. RFPs for 2019-2021 Street Maintenance Projects. Engineer Gill reported the latest on the Requests for Proposals for a three-year plan. I. REPORTS – COMMUNICATIONS Alderman Finucane announced the Salvation Army’s upcoming “Freezing for Food” drive. Alderman Fagan, City Attorney Frieders, and Police Chief Lowery individually offered Fire Chief Hicks their compliments and thanks for his 30 years of service to the City. Alderman Noreiko reminded residents and businesses to clean sidewalks of snow. Alderman Verbic thanked Sixth Ward residents for reporting “red bike litter” and said he will keep an eye on the handling of the situation. Alderman Faivre thanked Public Works for their hard work on snow removal. Mayor Smith announced Gary Mullis’ upcoming 49th annual “Toys for Tots” toy drive. He also gave an update on the city manager search. Regular Meeting Minutes November 26, 2018 Page 12 of 12 Clerk Fazekas noted upcoming dates for local candidates on the election calendar. Interim City Manager Munch complimented snow removal efforts and responses to emergency calls during the blizzard. Fire Chief Hicks announced warming center locations and said there are great internal candidates for next fire chief. Public Works Director Holdeman explained salting and plowing decisions during snow emergencies and said his department will return for one more cycle of leaf collection if the weather allows. J. RECESS FOR EXECUTIVE SESSION OF CITY COUNCIL No executive session was held during this meeting of Council. K. ADJOURNMENT MOTION Alderman Noreiko moved to adjourn the Regular Council Meeting at 10:43 p.m. Alderman Faivre seconded. VOTE Motion was approved on majority voice vote. Mayor Smith declared the meeting adjourned at 10:43 p.m. _____________________________________ LYNN A. FAZEKAS, City Clerk Approved by City Council: January 14, 2019.