City of Sycamore City Council met March 18.
Here is the minutes provided by the council:
ROLL CALL
Alderman Bauer called the meeting to order at 7:00 p.m. and City Clerk Mary Kalk called the roll. Those Alderpersons present were: Chuck Stowe, Alan Bauer, Steve Braser, Nancy Copple, Josh Huseman, Pete Paulsen, and Virginia Sherrod. Mayor Lang and Aldermen Rick Kramer were absent. City Attorney Jess Harrill was also present.
PLEDGE OF ALLEGIANCE – Led Alderman Bauer
APPROVAL OF AGENDA
MOTION
Alderperson Braser motioned to approve the agenda and Alderperson Copple seconded the motion.
VOICE VOTE
Alderman Bauer called for a voice vote to approve the motion. All Alderpersons voted aye. Motion carried 7-0.
APPOINTMENTS
AUDIENCE TO VISITORS
1. Jeff Patton 12470 North Grove Road, Sycamore, expressed his concerns about the Rental Registry Consideration and that he is against it.
2. Jim Mason 120 Annie Glidden Road, DeKalb, expressed that the program in DeKalb has not worked and said that the information is already available.
3. Adam Lundeen, Lundeen Liquors, 1760 DeKalb Avenue, Sycamore, spoke in favor of having a tasting room at their establishment and passed out a floor plan.
4. Ryan Cardinali, 345 Eli Barnes, Sycamore, expressed his concerns about the Rental Registry Consideration and said this would be a wrong step and one that is not needed.
CONSENT AGENDA
A. Approval of the Minutes for the Regular City Council Meeting of March 2, 2020. B. Payment of the Bills for March 16, 2020 in the amount of $1,551,635.98.
MOTION
Alderperson Stowe moved to approve the Consent Agenda and Alderperson Paulsen seconded the motion.
ROLL CALL VOTE
Alderman Bauer called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Paulsen, and Sherrod voted aye. Motion carried 7-0.
PRESENTATION OF PETITIONS, COMMUNICATIONS, AND BILLS
Alderman Paulsen said that he completed the census online and it took six and a half minutes and encouraged everyone to take advantage of that opportunity.
A. Census 2020 Proclamation: A Complete Count!
REPORT OF OFFICERS
City Manager – Brian Gregory said in regards to the COVID-19 virus, to reduce person to person contact, the City is encouraging anyone that can do business with the city electronically, by phone or by mail to discourage people from making unnecessary trips. With the Governor’s Executive Order to close all bars and restaurants except for curbside pick-up or delivery, he encouraged everyone to think about the local businesses and use them any way you can. They will be reviewing the Governor’s Executive Order and the revisions regarding the Open Meetings Act during this time and what it means for April meetings which may involve the opportunity to teleconference in. It is a fluid situation and they will continue to monitor it with the help of the DeKalb County Health Department (DCHD) and follow advice by the Center for Disease Control (CDC).
Police Chief – Jim Winters said their officers have been issued additional Personal Protective Equipment (PPE) and there’s been a lot of communication in the department on balancing how to protect themselves and not reduce the service or opportunity to respond to calls. He reported that the first portion of the grant from the Department of Justice for the bullet proof vests came in last month.
Fire Chief – Pete Polarek said there is a lot of behind-the-scenes activity with public safety with review of equipment and procedures as well as meetings with staff and the County Health Department to continue to monitor the situation. They are as prepared as they can be. They are praying that their activity will be low in regards to the coronavirus, but they are prepared.
Director of Public Works – Fred Busse said that the new sweeper has been delivered and staff will be training on it this week. KLM will be inspecting Tower #1 this Friday. They will do an inside inspection with a robotic vehicle which will be disinfected with a liquid bleach prior to entry to the tank. It will be able to be done without having to take Tower #1 out of service and then a full report will follow. He added that they are looking to get that tower painted within the next year.
Treasurer/Asst. to the City Manager – Adam Orton said the February Treasurer’s Report has a benchmark of 83%. For major revenue sources, the State and Home Rule Sales Tax continue to trend above their benchmarks. The Restaurant & Bar Tax is at 84% and the Income Tax is at 96%. Total Revenues are shy of 92% but are at 90% when weighted with property taxes. The General Fund Expenditures are at 82%. Since we are getting to the end of the fiscal year, they will continue to monitor these numbers on a modified accrual basis. The volatility of the market in February has continued into March and so the pension funds have seen decreases in balances so they will continue to monitor that. In order to get the Census information out, a reminder is on the water bills and each customer service department is giving handouts to get the information in as many hands as possible.
Building & Engineering Director – John Sauter said that it is business as usual at the Community Development Department as they can do a lot of their work via email and phone. The only change is that they will not be doing any non- essential inspections within homes. They are prepared and are being cautious. He reported that the City’s 2020 Zoning Map has been updated. It can be viewed on the City’s website or can be purchased in the City Clerk’s office.
Director of Human and Administrative Resources (DHAR) – Maggie Peck – No report. City Engineer – Mark Bushnell absent
REPORTS OF STANDING COMMITTEES
Finance – Alan Bauer - no report
Public Safety – Pete Paulsen - no report
Public Works – Chuck Stowe - no report
PUBLIC HEARINGS - None
ORDINANCES
A. Ordinance 2019.52 – An Ordinance Amending Title 5, “Police Regulations,” Chapter 4, “Miscellaneous Offenses,” Section 3-1, “Video Gaming,” of the City Code of the City of Sycamore, Illinois. Second Reading.
City Manager Brian Gregory said this is here on second reading as this was talked about in January with the General Fund Budget Consideration. The administration of the video gaming licensing program have exceeded the revenue of the fees that are brought in. Currently, the City charges $100 per terminal on an annual basis and this ordinance would increase that to $250 per terminal per year. Alderman Braser suggested doing the increase in two bites with half the increase this year and half the increase next year and the ordinance could be modified if the Council is interested in that.
Alderman Bauer asked if anybody received any feedback to share. Hearing none, he asked for a motion.
MOTION
Alderperson Stowe motioned to adopt Ordinance 2019.52 and Alderperson Braser seconded the motion.
ROLL CALL VOTE.
Alderman Bauer called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Paulsen, and Sherrod voted aye. Motion carried 7-0.
RESOLUTIONS
A. Resolution No. 814—A Resolution for Improvement by Municipality Under the Illinois Highway Code in the City of Sycamore, Illinois.
City Manager Brian Gregory said that the summer’s 2020 street maintenance program was presented to the Council which included the streets and a budget allocation of $575,000 out of the motor fuel tax funds which are funds from the State of Illinois to be put back into the roads. This resolution is an IDOT requirement in order to spend those funds so it includes $575,000 and $63,250 in eligible engineering services.
MOTION
Alderperson Braser motioned to approve Resolution 814 and Alderperson Sherrod seconded the motion.
ROLL CALL VOTE.
Alderman Bauer called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Paulsen, and Sherrod voted aye. Motion carried 7-0.
B. Resolution No. 815—A Resolution Approving a Preliminary Engineering and Construction Guidance Agreement with Testing Services Corporation for Motor Fuel Tax Funds in FY21 for the City of Sycamore, Illinois.
City Manager Brian Gregory said this is another IDOT requirement. This resolution enters into an agreement with Testing Services Corporation for engineering services as referenced in the previous resolution with an allocation of $63,250.
MOTION
Alderperson Braser motioned to approve Resolution 815 and Alderperson Stowe seconded the motion.
ROLL CALL VOTE.
Alderman Bauer called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Paulsen, and Sherrod voted aye. Motion carried 7-0.
C. Resolution No. 816—A Resolution Approving a Preliminary Engineering and Construction Guidance Agreement with Municipal Engineering Corporation for Motor Fuel Tax Funds in FY21 for the City of Sycamore, Illinois.
City Manager Brian Gregory said this is a companion resolution that would take part of that engineering services allocation and enter into an agreement with Municipal Engineering Corporation, who has assisted the City with the street maintenance program since 2008.
MOTION
Alderperson Stowe motioned to approve Resolution 816 and Alderperson Paulsen seconded the motion.
ROLL CALL VOTE.
Alderman Bauer called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Paulsen, and Sherrod voted aye. Motion carried 7-0.
D. Resolution No. 817—A Resolution for Maintenance of Streets and Highways by the City of Sycamore Under the Illinois Highway Code from May 1, 2020 to April 30, 2021.
City Manager Brian Gregory said this is the last of the resolutions that IDOT requires for expenditure of the $320,000 funds committed from the Motor Fuel Tax funds in FY21. This is for maintenance and includes:
The breakdown is shown below:
a) Snow and ice control (salt purchases): $150,000;
b) A portion of salaries related to ongoing street maintenance and repair by the Public Works Department: $100,000; and
c) Electrical costs for street light and signal maintenance: $70,000.
MOTION
Alderperson Copple motioned to approve Resolution 817 and Alderperson Sherrod seconded the motion.
ROLL CALL VOTE.
Alderman Bauer called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Paulsen, and Sherrod voted aye. Motion carried 7-0.
E. Resolution No. 818—A Resolution Approving a Supplemental Memorandum of Understanding between the City of Sycamore and the County of DeKalb Regarding the Consolidation of Dispatching Services in DeKalb County.
City Manager Brian Gregory the County has provided dispatching services for Fire and Police since the 2002. The agreement was extended in July 2016 through a five-year supplemental Memorandum of Understanding. That agreement was set to expire in in 2021 and called for the City to pay $795,000 in FY21. They worked with the County to see where there could be a shared savings and was able to achieve some savings. The Agreement shall be for an initial term of five (5) years, effective as of July 1, 2020. This Agreement shall automatically renew for additional five (5) year terms after the initial term. Either party may terminate their participation in the Agreement after notifying the other of their intent to do so at least one (1) year in advance.
The parties agree to the following fee for service during the initial term of this agreement:
July 1, 2020-June 30, 2021: $700,000
July 1, 2021-June 30, 2022: $725,000
July 1, 2022-June 30, 2023: $750,000
July 1, 2023-June 30, 2024: $776,000
July 1, 2024-June 30, 2025: $803,000
July 1, 2025-June 30, 2026: $831,000
They will continue to look for ways to save money for both the County and City and also look for ways that they can improve services. This agreement allows either party to opt out with a year’s notice and would represent savings of $95,000 in the first year. The savings carry year to year compared to the previous agreement.
Alderman Huseman asked how the price is determined.
City Manager Brian Gregory said there have been different ways that pricing has been looked at like per event. The issue is how you use your system and so it may not be apples to apples if communities aren’t using the system the same.
Alderman Braser said he has a problem that it increases $131,000 over six years and asked where that comes from.
City Manager Brian Gregory said it is a three percent per year increase and what it was in the prior agreement. When you look at where we were supposed to start at $795,000 and now we won’t get back to that until FY25, so we are at a good starting point. If we ever find a deal that is more favorable to us, we can do that with the one- year opt out option. It would be a considerable process to move to a new dispatch but it is something that they have looked at in the past and there haven’t been very many viable alternatives.
Alderman Braser asked the Chiefs if they are happy with the service.
Chief Winters said yes, especially with the new 800 digital system they turned on recently. It has enhanced our officer’s ability to communicate. As far as the service, there are no issues.
Alderman Braser said that safety is the most important thing, so if they are happy with it we have to go on their word as they are the primary user.
City Manager Brian Gregory said the Police Department is on the digital system and there is a transition period for Fire to get on the system. The radios are currently analog as the cost of radios are close to $250,000 so that is where we see the opportunity with this savings to put into the radio infrastructure to bring Fire onto the digital side as well.
MOTION
Alderperson Braser motioned to approve Resolution 818 and Alderperson Huseman seconded the motion.
ROLL CALL VOTE.
Alderman Bauer called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Paulsen, and Sherrod voted aye. Motion carried 7-0.
F. Resolution No. 819—A Resolution Approving and Accepting Certain Public Improvements in the Sycamore Crossings Development and Meijer Improvements.
City Manager Brian Gregory said that the Unified Development Ordinance (UDO) requires that the City accepts public improvements. This comes with a recommendation from the City Engineer, Mark Bushnell. The Public Works team has reviewed the sewer and water main improvements that are part of the Meijer project so the city accepts the public improvements and the developer is required to guarantee the improvements for a period of one year from being accepted.
MOTION
Alderperson Braser motioned to approve Resolution 819 and Alderperson Stowe seconded the motion.
ROLL CALL VOTE.
Alderman Bauer called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Paulsen, and Sherrod voted aye. Motion carried 7-0.
CONSIDERATIONS
A. Consideration to Award a Contract for the Remediation and Demolition of Raised Platform at 370 South Street to Stiles Incorporated of Loves Park, Illinois in the Amount of $137,370.00.
City Manager Brian Gregory said the platform at the former Harvester Square site (now the home of Blumen Gardens) is one of the last projects identified in the City’s Tax Increment Financing (TIF) district as reviewed in the agenda.
The last piece is to remove the raised platform between Blumen Gardens and Blackhawk, remediate it with GEOTHINK, LLC, and install a new asphalt surface which could then be sold as the City still owns it. They have been working on this for the last two years and so the project was put out to bid in February. Bids were opened on March 11th at 10 a.m. with a total of eight bids submitted:
| Contractor | Total Bid Price | Supplemental Unit Price/L.F for Sawcut and Removal of 12” Conc. Foundation Wall |
| AQS Services | $177,177.60 | $12.50 |
| Fowler Enterprises | $242,861.00 | $40.00 |
| Elliot and Wood | $323,000.00 | $100.00 |
| Martin and Company | $285,736.50 | $67.00 |
| O6 Environmental | $162,579.92 | $20.00 |
| Berger Excavating | $299,792.00 | $50.00 |
| Northern Illinois Services | $355,516.49 | $60.00 |
| Stiles Inc. | $137,370.00 | $20.00 |
MOTION
Alderperson Paulsen motioned to award the contract to Stiles Inc. for $137,370 and Alderperson Huseman seconded the motion.
ROLL CALL VOTE.
Alderman Bauer called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Paulsen, and Sherrod voted aye. Motion carried 7-0.
B. Consideration to Award a Contract for the Purchase of a Skid Loader
City Manager Brian Gregory said the FY20 budget included an allocation from the Public Works Department for a toolcat but after review of future needs, they decided the funds would be better spent buying a skid loader and utility task vehicle (UTV) instead. On March 9, 2020, there were two bid openings for this consideration and the next. There were two bidders for the skid loader shown below:
| COMPANY NAME | MODEL | BID AMOUNT |
| CSR Bobcat Inc., DeKalb Illinois | 2020 Bobcat S76 | $48,825.56 |
| AHW John Deere, Elburn, Illinois | 2020 John Deere 330G | $58,799.00 |
Alderperson Braser motioned to award the bid to CSR Bobcat for $48,8253.56 and Alderperson Stowe seconded the motion.
ROLL CALL VOTE.
Alderman Bauer called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Paulsen, and Sherrod voted aye. Motion carried 7-0.
C. Consideration to Award a Contract for the Purchase of a Utility Task Vehicle (UTV)
City Manager Brian Gregory said this is an all-seasons vehicle that includes a cab. One bid was received as shown below:
| COMPANY NAME | MODEL | BID AMOUNT |
| CSR Bobcat Inc., DeKalb Illinois | 2019 Bobcat 3400 | $18,991.61 |
Public Works Director said heat only.
MOTION
Alderperson Braser motioned to award the bid to CSR Bobcat for $18,991.61 and Alderperson Stowe seconded the motion.
ROLL CALL VOTE.
Alderman Bauer called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Paulsen, and Sherrod voted aye. Motion carried 7-0.
D. Consideration to Award a Contract to DACRA Technologies, LLC for Subscription to Municipal Enforcement System.
City Manager Brian Gregory said the City has contracted with DACRA for IT services since 2016 to provide software of ticketing and the City’s Administrative Adjudication Program. It has been on a flat-rate fee of $21,200. DACRA is converting to a Software as a Subscription (SaaS) model as a “more you use it, the more you pay”. This platform is based on volume and incorporates a tiered pricing model. Applying the SaaS model to adjudication enforcement volume for FY18 and FY19 would have resulted in fees of approximately $18,000 and $22,036, respectively. A full credit of $2,500 already paid on the current contract would be applied to the new contract which would begin May 1, 2020. This agreement is effective for a two-year term with the cost for FY21 estimated to be $22,232.00. He said that this an important tool the officers use day in and day out and also on the backend and is necessary to comply with due process.
Alderman Braser said he imagines it would be helpful in the audit season.
City Manager Brian Gregory said not the financial audit as much but for the accreditation for the Police Department.
MOTION
Alderperson Braser motioned to approve the consideration and Alderperson Copple seconded the motion.
ROLL CALL VOTE.
Alderman Bauer called for a roll call vote to approve the motion. Alderpersons Stowe, Bauer, Braser, Copple, Huseman, Paulsen, and Sherrod voted aye. Motion carried 7-0.
E. Consideration of a Proposed Rental Property Registry Program.
City Manager Brian Gregory said the next three items are for discussion only and that no action will be taken on them tonight.
The consideration for a proposed rental registry program comes about after a few years of discussion with the City seeing an uptick in additional multi-family housing. They saw that during the boom in the 2000’s. Although, there was a planned disproportionate amount of single family residences (SFR) permitted versus multi-family homes, it was a 50/50 mix of what was constructed at that time. He said that landlords have asked him how we know the number of rentals or the number of SFR that are converted to rentals. It’s a question of what we have and what the needs are going forward as the City is in the process of updating the Comprehensive Plan and Land Use Map. This is a public process that involves the question of where could those types of uses be put, is it something that we need, and are we meeting a certain demand. For the emergency management side, for example, there was a fire in a six-unit recently and there was a question on who lives there and is everyone out. If we had a database that would be accessible with not only the landlord information but also tenant information, it would help first responders by 1). Making sure they know who is in the building and that residents are safe and 2). To make sure our first responders aren’t going into buildings looking for people that potentially may not be in there. The registry gives us information and information is power. This is proposed only as a registration program as he doesn’t think anyone on staff is interested in taking it to any additional layers but this is the first time the Council will discuss this. They worked with Net Assets of Eugene, Oregon to make the program simple and streamlined. The proposed program would simply be a registration program and not require any other actions by landlords. Proposed fees for the annual registry are $20 per address with an additional $2 per unit at the registered address. However, upon inception of the proposed program on May 1, 2020, initial registration fees would be waived for the first 90 days for all registrants. Various platforms will be utilized to facilitate advanced notice for registration and throughout the 90-day grace period. He added that where they would get rigid is if people do not register, he thinks we need to have a relatively significant penalty. Again, this is an attempt to gather information and protect what we all have.
Alderman Bauer confirmed that it would be $30 per year for that six-unit example.
Alderman Stowe said that he is not a big fan it. There are a lot less of the larger complexes than the “onsies, twosies”. He thinks a lot of them will end up being in the enforcement phase because they are not going to think that they need to get in it. There might be a better way to find out what the rentals are but he thinks maybe a survey, although it wouldn’t be up to date year to year. He’s just not sure this is the way to go.
Alderman Huseman said he would say what Alderman Stowe said and that he likes the idea of knowing how many rental and multi-family units we have from a planning standpoint and what is the ideal mix for Sycamore for the Comprehensive Plan and work collaboratively with the landlords on what the market will support. He said in terms of a registry program, he would not support it as presented.
Alderman Braser said he would support it more as a safety issue as if there is a fire, we don’t know who is in there.
Ryan Cardinali asked how do you know how many people are in my SFR house. It could be two or 10 and we could have 15 people in the basement.
Alderman Braser said he sees their opposition to it but he also sees it as a safety issue and said we have a better shot at knowing how many people are in a SFR. He would only want it for the safety issue and thinks the landlords would too.
City Manager Brian Gregory interjected that if Fire or Police comes to Mr. Cardinali’s house, they could ask if everyone is accounted for. They go to a six-unit and they or the neighbors don’t know who all is in the building, they are chasing down the information trying to ensure that everyone is accounted for. They did run into that this summer and a month ago.
Ryan Cardinali said for every property he owns, everybody has each other’s numbers and it’s literally a family. Everyone is looking out for everybody.
Alderman Braser said he appreciates that and that it is a very good point. He asked how much it would cost to put a Knox box on a six-unit.
Ryan Cardinali said $400 for the main door.
Alderman Huseman said that we might be missing the point a bit as they are not asking for the tenants to register.
Jeff Patton said they actually already have Knox boxes on some of their units so allowing the Fire Department that accessibility. He said everyone in his buildings knows each other, too.
Alderman Huseman asked if there was an emergency situation, all the first responders are going to know is the owner’s information. Unless we have the tenant information, the emergency piece of that is neutralized.
City Manager Brian Gregory said the landlord would enter the tenant information if they have it. It’s encouraged in the software itself. It would be a database at your fingertips if something happens, we could see the cell phone numbers. There are a lot of people that own one or two SFR’s that are rentals. The owner may live in Florida and that is where part of the problem is.
Jeff Patton asked how realistic is it when the Fire Department rushes to a building that’s on fire and they pause to look up who owns the building to call the landlord to see how many people are in the building. That is not going to happen.
Alderman Braser said they are not talking about getting information first, they are talking if there is one more person in the building after they already got four people out.
City Manager Brian Gregory said that many times the Police Department is handling that side of it. There is an emergency response but also an informational piece as well.
Alderman Braser said he would really like to get a feasible program to supply these landlords with lockboxes. It would show that we care about it as a City. It could be a long term goal.
Scott Carlson, 1823 Dovetail Point, said 1,000 of Sycamore residents rent from them as they are the largest rental property owner in Sycamore. We always err on the side of safety and a plan for safety that will better everybody is the most important. But, we are missing the point as they need to get a handle on the number of rentals in this town versus addressing the people now that we already know own rental units. There are 300 more units in town that can be built for multi-family. We are currently around the 4,000 mark that we know of. He said that people will not participate if they are not a big property owner. He and all the landlords present are transparent and are here for the betterment. Putting stipulations on landlords saying they need to register their tenants is 1). A possible privacy issue, 2). Tenants change all the time without notifying the landlord. Older children move out and they constantly have break-leases. Knox boxes get them in and said there is one Knox box for their 400 units. It may not be efficient but it’s effective because it’s in a time of need, the first responders know it’s there, the very first call after dispatch goes to his cell phone. His phone is updated weekly with every tenant and their contact numbers. He doesn’t think the registry would be updated weekly. He thinks all this tonight should be tabled and form a committee for discussion on what direction it should go. He said he would be happy to be part of that committee with any information he may have.
Alderman Bauer asked that his concern is less about the $20 and $2 and more about the ongoing upkeep of his database and having to continually provide that to the city.
Scott Carlson said no, it is the cost, initially. Secondly, the information changes so often. He doesn’t know how it’s ever going to be possible to keep up. He said that he appreciates what Alderman Braser said about it being safety concern, but he echoes what Ryan Cardinali said in that for a three bedroom SFR that had a mom and dad and kids five years ago, may only have the mom and dad living there today.
City Manager Brian Gregory said we are trying to figure out what kind of rentals we have. The program will help with the ones that we don’t know. It may be that five, or ten, or 15% that we don’t know. From the planning side, this program may help getting a handle on what our rentals look like or how many of the homes on the older streets have converted to rentals.
Scott Carlson said yes, he thinks that is important to know which are rentals and which are not. Chances are, if there is no homestead exemption, it’s a rental and this information is readily available. For the 2020 Comprehensive Plan, some of these statistics have to be provided before we make a decision on what we are doing.
Alderman Braser said that he appreciates the landlords coming in and hopes that they all can sit down and have a discussion this to make it better for everybody. This is why this is a consideration to discuss as the City Manager previously stated.
Scott Carlson said he appreciates all the Council does too.
Robert Carlson, 3 Wedgwood Cove, DeKalb, Retired owner of Carlson Appraisal Services for 42 years and currently owner of 302 units in DeKalb and Sycamore. He follows Scott Carlson’s comments (no relation) and said that registration can be a nightmare as people are moving in and out all the time. He would not be pleased with it. He referenced 9,000 apartment units in DeKalb, of which he has valued 70%-80% of them, and said right after DeKalb passed their program, there was a property- owner that sold 192 units, another sold 31 units, and that they would never buy in DeKalb again. The people that had a lot of confidence in multi-family started selling. Some of the out-of-area people started investing and “the problems really started dramatically”. He has a lot of experience and said if the Council steps forward, you have to be careful with it.
Alderperson Copple asked what the initial cost of the program is.
City Manager Brian Gregory said that the fee is paid for in the registration. They appreciate that the landlords take care of their properties in town as they are well-maintained. As we look at this from the planning standpoint, we are trying to get a grasp on what we have for the decisions coming up.
F. Consideration of Potential Modifications to the City’s Liquor Code.
City Manager Brian Gregory said this is just for discussion tonight and that petitioners have contacted the Liquor Commissioner regarding these four liquor-related issues. He walked through each as presented in the agenda;
1. Class B License, Optional Annual Catered Events Permit
Class B license holders have the option to receive an annual permit for indoor catered events for an additional annual fee of one hundred dollars ($100.00). This additional license holder would receive an annual permit and would waive the requirement to obtain a permit for each indoor catered event.
City Manager Brian Gregory said they could have the option of doing a single permit at $25 or an annual one at $100.
Alderman Stowe asked how many are we seeing and is one person doing a lot of them.
City Manager Brian Gregory said there are two or three that do the majority of the indoor catering and asked the Clerk.
City Clerk Mary Kalk said that there is one licensee that is doing catered events about twice a month and another licensee that is doing a catered event about every other month for a wedding.
City Manager Brian Gregory said that this is meant to streamline the process.
2. Banquet Hall Liquor License
"Banquet Hall" shall mean a business conducted on premises at which the exclusive activity is the catering of private parties where there is service for consumption at tables of a full multiple course meal at a prearranged fixed unit price, or hors d'oeuvres, buffet or smorgasbord, and at which alcoholic liquor may be served or sold as an incident to such food services; provided that each of such private parties is prearranged under the sponsorship of a particular person or organization.
Class “L” License (Banquet Hall) shall authorize the serving and retail sale of alcoholic liquor for consumption on the premises designated therein in establishments containing banquet hall facilities and authorized for banquets as a principal use; provided that alcoholic liquor under this license may be served and sold only to invited guests. The annual fee for Class L licenses shall be two thousand dollars ($2,000.00).
Alderman Braser asked if the banquet hall language should state a ceiling on the number of guests or if there should be two tiers for under 50 guests and over 50 guests. He asked if this would also include party tents that may put up on the property.
City Manager Brian Gregory said each hall would be based on the safety codes and said it’s based on square footage. He said it would have to meet the definition of the brick and mortar banquet hall. If they were to expand, it would carry to their property but said we wouldn’t want a stand-alone.
Alderman Stowe said we may want to put some language in the ordinance about a permanent building or brick and mortar, then a petitioner would have to come to the Council to ask for an exception and decide from there.
Tasting Room
Language such as the following (presented to help facilitate the discussion) would need to be added to Chapter 2: Liquor Control:
Class M, which shall authorize the holder of a Class D liquor license from the City to operate a tasting room for the sale of craft beers only for consumption on the premises. It is the intention of a Class M liquor license that the craft beer tasting room shall be an amenity and an accessory use to the primary business (Class D liquor license sales) operated by the applicant on the premises. The tasting room must be physically separated from the Class D licenses premises by walls with access through a door from the Class D licensed area. A Class M liquor license shall be subject to the following conditions and restrictions:
a. The tasting room shall only sell craft beers for consumption on the premises. No macro beers or other alcoholic liquors shall be sold for consumption on the premises from the tasting room. Craft beers for consumption on the premises may only be sold from the tasting room and not from the primary Class D licensed premises.
b. The primary Class D licensed premises may sell craft beer as a packaged item for off-site consumption. The sale of packaged goods from the tasting room is prohibited.
c. Customers may only consume the craft beers purchased in the tasting room on premises. No customer may leave the licensed premises with open alcohol.
d. The tasting room shall be limited in size to no more than 50 square feet. The tasting room must have a continuous, unobstructed passage and view to the primary Class D licensed premises.
e. No seating will be allowed in the tasting room area.
f. The tasting room shall be limited to no more than eight operational craft beer taps at one time.
g. The hours of operation of the tasting room shall be limited to 3:00 p.m. to 10:00 p.m. on all days, unless specific permission for additional hours of operation are granted by the liquor commissioner.
h. The license holder must inform the local liquor commissioner at least 48 hours in advance of any special events where larger than normal crowds are expected. Special events may include, but are not limited to, the release of rare, specialty craft beers. The license holder shall obtain a special event permit.
Tasting sizes for sale are limited to the following quantities:
i. By the glass, having a capacity of not more than 4 ounces.
ii. By the flight, having not more than three glasses with each glass containing a capacity of not more than four ounces.
i. All persons serving craft beers in the tasting room for consumption on the premises must be BASSET certified.
j. The tasting room shall comply with all building, fire and other codes of the city.
The annual fee for Class M licenses shall be two hundred and fifty dollars ($250.00).
Brian Gregory said that Alderperson Copple and he went to Lundeen Liquors to learn more on craft beers and the process of selling the sealed jugs per the State law. They borrowed some language for tasting rooms from Westmont and from the petitioner regarding seating and hours of operation. (A diagram of the tasting room area was handed out and an example of a four ounce glass was shown). This is a new concept and needs some discussion or input.
Alderman Huseman asked if this would only allow craft beer.
City Manager Brian Gregory said yes, that is how we show it. They could look further at the State law, but he thinks the big change was for craft beer and wine. We don’t want to get into blending a bar license and a packaged goods license.
Alderman Paulsen said he likes the idea of being able to taste these craft beers as the descriptions may mean something different from one person to another.
Alderman Braser asked Adam Lundeen if it would be beneficial for them to have wine and bourbon too.
Adam Lundeen said it’s just for tasting the craft beer with a sample or a flight. He said they could use the counter for more but said this is not for serving. There could be tastings but they don’t intend on selling the hard spirits to people. This will be to engage their customers through their store. People don’t want to pay the price for the craft beer if they don’t know if they will like it. This will give The Forge and others a chance to compete with the bigger breweries.
Video Gaming Café
3-2-1. Net Income from Vendors: money put into a video gaming terminal or any other vendor operating/owned machine, minus credits paid out to players.
3-2-6-A-3. Class B; Bar: Class B licenses authorize the retail sale of alcoholic liquors where the primary purpose of the establishment is for the on-site consumption of such alcoholic liquors on the premises, where food service may or may not be included. This license shall apply to establishments where the sale of alcoholic beverages for consumption on premises constitutes at least eighty percent (80%) of the gross annual receipts for alcoholic beverages. Bars may also sell package liquors, but under no circumstances may a bar be converted to a package goods store unless the location is in conformance with the provisions of this Code and by the licensing authority of the Illinois Liquor Control Commission. The annual fee for Class B licenses shall be two thousand dollars ($2,000.00). Bars that sell package goods shall pay an additional annual fee of two hundred fifty dollars ($250.00). Bars with State video gaming licenses must generate at least fifty one percent (51%) of its income from beverage and food sales and dedicate no more than twenty five percent (25%) of floor space to video gaming in order to maintain eligibility for a Class B license. For purposes of calculating “income,” the City will use the actual profit derived from beverage and food sales and the net income from vendors of video gaming terminals or any other machine owned or operated by a vendor. Therefore, the actual profit derived from beverage and food sales must be at least fifty one percent (51%) percent of the total economic activity entering the licensed establishment, including any vendor operated devices. The purpose of this calculation is to ensure that any licensee with a Class B license maintains the sale of alcoholic liquor as its primary business function and source of revenue.
City Manager Brian Gregory said that the language further clarifies the calculation by adding a definition of net income from vendors of video gaming terminals. Net income is now defined as the money put into a video gaming terminal or any other vendor operating/owned machine, minus credits paid out to players. In order to maintain a Class B license, gross receipts from food and beverage sales must be at least 51% of the total of food and beverage gross receipts plus the net income from the video gaming terminals.
G. Consideration of the Preliminary FY21 Budget.
City Manager Brian Gregory said they are presenting a balanced budget. They have circulated the pdf document to the Council, there is a link on the City’s website, and there is one at the Sycamore Public Library. A public hearing on the proposed budget, which may be revised following discussion, will be held on Monday, April 6th and action on the budget will be recommended on Monday, April 20, 2020. , if we cannot meet conventionally, depending on the COVID -19, it will be held on First Reading and have the Second Reading at the second Council Meeting in April. He encourages everyone to review it. The goal is to have two more opportunities for input as the process is for transparency.
Alderman Bauer said there have been pretty thorough discussions over the last few meetings. He said it looks good.
H. Consideration of an Administrative Request for a Closed Session to Discuss Collective Bargaining under 5 ILCS 120/2(c)(5) and the Purchase or Lease of Real Property under 5ILCS 120/2(c)(5).
MOTION
Alderperson Huseman motioned to enter into Closed Session at 8:32 pm and Alderperson Paulsen seconded the motion.
VOICE VOTE
Alderman Bauer called for a voice vote to approve the motion. All Alderpersons voted aye. Motion carried 7-0.
MOTION
Alderperson Huseman motioned to enter back into Open Session at 8:51 pm and Alderperson Braser seconded the motion.
VOICE VOTE
Alderman Bauer called for a voice vote to approve the motion. All Alderpersons voted aye. Motion carried 7-0.
OTHER NEW BUSINESS
ADJOURNMENT
MOTION
Alderperson Stowe moved to adjourn the meeting at 8:52 p.m. and Alderperson Paulsen seconded the motion.
VOICE VOTE
Alderman Bauer called for a voice vote to approve the motion. All Alderpersons voted aye. Motion carried 7-0.
https://cityofsycamore.com/wp-content/uploads/2020/03/cc20200316m.pdf
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