City Council Regular Meeting

COMMITTEE OF THE WHOLE MINUTES DATE: Tuesday, November 12, 2019 TIME: 7:00pm PLACE: Urbana City Council Chambers, 400 S. Vine St., Urbana, IL 61801 The City Council Committee of The Whole of the City of Urbana, Illinois, met in regular session Tuesday, November 12, 2019, at 7:00pm in the Council Chambers of the Urbana City Building. ELECTED OFFICIALS PHYSICALLY PRESENT: Bill Brown; Shirese Hursey; Eric Jakobsson; Jared Miller; Dennis Roberts; Diane Wolfe Marlin, Mayor ELECTED OFFICIALS PRESENT VIA TELECONFERENCE: None ELECTED OFFICIALS ABSENT: Dean Hazen; Maryalice Wu; STAFF PRESENT: Brandon Boys; Kris Francisco; Kevin Garcia; Elizabeth Hannan; Sanford Hess; Don Ho; Jason Liggett; Kay Meharry; Carol Mitten; James Simon; Justin Swinford; OTHERS PRESENT: Tom Delaney; Catie Gregg; Wes Jarrell; Kimberly Hansen; Jeff Knable; Connie Lamberes; Matt Riggs; Chris Warwick; Members of the Media Chair: Bill Brown, Ward 4 1. Call to Order and Roll Call With a quorum present, Chair Bill Brown called the meeting of the Committee of the Whole to order at 7:03pm, following a public hearing. 2. Approval of Minutes of Previous Meeting CM Dennis Roberts made a correction to the minutes from the October 28, 2019 meeting and then moved to approve them. Motion seconded by CM Jared Miller and carried by voice vote. 3. Additions to the Agenda There were none. 4. Presentations and Public Input Matt Riggs from Riggs Beer Company spoke about the increase in the food and beverage tax, stating it was the third increase in three years. He said the increase would take an almost $10,000 more from his business’ bottom line and the possibility of further increases over coming years makes it difficult to plan ahead financially. Mr. Riggs suggested that the City could spend less money by reducing the Tax Increment Financing (TIF) program and said a 2016 City review of TIF funds that went to help businesses between 2006 and 2012 showed only 26% of those businesses still open in 2016. He added that this increase might be easier for businesses to take if the City would put a freeze on the food and beverage tax increases for a period of time. Tom Delaney also spoke about the increase in the food and beverage tax, and said he thought the increase might have a negative effect on the viability of businesses in Urbana. 5. Staff Report Planner Kevin Garcia announced an open house on Tuesday, November 13, from 6:30 to 8:30 pm at Martin Luther King Elementary School, 1108 Fairview Drive, for a proposed plasma collection facility at 907 North Lincoln Avenue. Economic Development Manager Brandon Boys introduced the Stepheny McMahon as the new Economic Development Coordinator. 6. Ordinance No. 2019-11-062: An Ordinance Authorizing the Lease of Parcels with PINs 25-15- 29-400-023, 25-15-29-400-024 to Prairie Fruits Farm, LLC Economic Development Manager Brandon Boys presented this ordinance. The proposed lease agreement is between the City of Urbana and Prairie Fruits Farm LLC, and will allow the farm to Committee of the Whole Minutes Tuesday, November 12, 2019 Page 2 of 3 continue to use the north parcel for parking for its agritourism customers during the season. He said production of food crops such as small grains, food-grade corn varieties and vegetables would be added to the crops. The tenant would be responsible for all taxes and fees for the use of the property. The lease payment would be $350 a year for five years, totaling $1,750 that would go into the General Fund. Wes Jarrell, with Prairie Fruit Farms and Catie Gregg, with Temperance and Thyme Farm spoke about their experience and future plans for the ground they will lease. After questions from committee members and discussion, CM Miller made a motion to send Ordinance No. 2019-11-062 to council with recommendation for approval. Motion seconded by CM Roberts and carried by voice vote. 7. Resolution No. 2019-11-044R: A Resolution Authorizing a Small Cell License Agreement with AT&T Civil Engineer Justin Swinford introduced this resolution. He said this is a license agreement with AT&T for the installation of small cell technology at six existing streetlight poles and AT&T provided plans for the six locations. They will remove the existing light pole at each location and replace it with a new pole and fixture with AT&T’s small cell equipment mounted on it. AT&T will pay for any work associated with removal and replacement of the existing streetlight poles and will be responsible for maintenance of the small cell equipment as well as the electrical costs associated with the equipment. The City will be responsible for the maintenance of the light fixture and streetlight pole. AT&T will pay $2,100 in permit fees and $1,200 annually for the small cell sites. Chris Warwick, Director of External Affairs and Connie Lamberes, Project Manager for AT&T were present. They explained small cell technology and answered questions from committee members. CM Roberts made a motion to send Resolution No. 2019-11-044R to council with recommendation for approval. Motion seconded by CM Hursey and carried by voice vote. 8. Resolution No. 2019-11-045R: A Resolution Approving an Intergovernmental Agreement with Champaign County Regional Planning Commission for Media Production Services UPTV Manager Jason Liggett and Information Technology Director Sanford Hess presented this resolution. Mr. Liggett explained this is to recover any costs incurred by the City when producing videos of the Regional Planning Commission. CM Roberts moved to send Resolution No. 2019-11-045R to council with recommendation for approval. Motion seconded by CM Hursey and carried by voice vote. 9. Resolution No. 2019-11-046R: A Resolution Estimating the Tax Levy (Fiscal Year 2019-2020) Financial Analyst Don Ho and Finance Director Elizabeth Hannan presented this resolution. Mr. Ho explained that the City is one of several taxing districts that levies taxes, and its portion of property taxes is about 13% of the total tax. He said the Mayor is recommending a tax rate of $1.3499, which is the current rate, because planned revenue increases will help close the budget gap. Mr. Ho said the taxes levied by the City are for four purposes: police pensions; firefighter pensions; library operations; and corporate purposes, to pay for basic City services, such as police protection. After discussion, CM Miller moved to send Resolution No. 2019-11-046R to council with recommendation for approval. Motion seconded by CM Jakobsson and carried by voice vote. 10. Ordinance No. 2019-11-063: An Ordinance Amending Urbana City Code Chapter Twenty-two, Article VII, Section 22-91(a) (Amendment to the Food and Beverage Tax Ordinance) Financial Services Manager Kris Francisco and Finance Director Elizabeth Hannan presented this ordinance. Ms. Francisco said this tax will apply to foods and beverages prepared for immediate Committee of the Whole Minutes Tuesday, November 12, 2019 Page 3 of 3 consumption, which applies to meals and beverages served or carried out from a restaurant. The increase in the tax will go from 1.5% to 2.0% and is expected to generate $400,000 annually to the General Operating Fund. This will aid in the effort to produce a balanced budget. After public comment by Matt Riggs and Tom Delaney on the tax increase, CM Eric Jakobsson made a motion to send Ordinance No. 2019-11-063 to council. Motion was seconded by Shirese Hursey. Discussion ensued. Mayor Marlin said this increase would help the City decrease the structural deficit, and if it is not approved, there would have to be more cuts made in expenditures, which could include further cuts in staffing and services. After further discussion the motion to send Ordinance No. 2019-11-063 with recommendation for approval was carried by voice vote. 11. Ordinance No. 2019-11-064: An Ordinance Amending Urbana City Code Chapter 22, Article V, Section 22-60 Through Section 22-65 (Amendment to Hotel/Motel Use Tax) Finance Director Elizabeth Hannan presented this ordinance. She said the City had been working with Airbnb to enter into Voluntary Collection Agreement (VCA), to have Airbnb collect the 7% hotel/motel use tax for properties in the City of Urbana. Airbnb said they would not be able to enter into an agreement because they have to prioritize VCAs for larger governments. It was decided to change City Code to require Airbnb and other companies like it to collect the hotel/motel use tax. There were other minor revisions made to City Code within this ordinance. After further discussion and clarification, CM Miller made a motion to send Ordinance No. 2019- 11-064 to council with recommendation for approval. Motion seconded by CM Jakobsson and carried by voice vote. 12. Ordinance No. 2019-11-065: An Ordinance Approving the extension of Final Plat Approval (Union Gardens Subdivision – Plan Case No. 2364-S-18) Planner Kevin Garcia presented this ordinance. He explained that Trinitas Development is asking for a one year extension to record the Union Gardens Subdivision Final Plat. He explained that they cannot record the plat until they have closed on the property and they do not want to close on the property before they are ready to begin construction. Jeff Knable, Project Executive and Kimberly Hensen, Project Manager from Trinitas were present to answer questions and concerns from committee members. Council had approved an extension until February 2020, and Mr. Knable explained they would want to begin construction later in the year when the weather is warmer. In addition, they said their investors are tracking other large residential projects in the area, and the extension gives them time to further analyze the housing market and make certain there is a demand for their product before closing on the property. Mr. Knable reassured committee members that there has been approval from their internal investment committee to continue to fund the Union Gardens Subdivision project. After discussion, CM Jakobsson made a motion to send Ordinance No. 2019-11-065 to council with recommendation for approval. Motion seconded by CM Roberts and carried by voice vote. 13. Adjournment With no further business before the committee, Chair Brown adjourned the meeting at 9:11pm. Kay Meharry Assistant City Clerk This meeting was video recorded and is viewable on-demand. Minutes approved: November 25, 2019