City of Dekalb City Council met April 24.
Here is the agenda provided by the council:
A. CALL TO ORDER AND ROLL CALL
B. PLEDGE OF ALLEGIANCE
C. APPROVAL OF THE AGENDA
D. PRESENTATIONS
1. Honoring Elected Officials Leaving Service in 2023 – Alderman Tony Faivre.
City Manager’s Summary: Alderman Faivre has served as Seventh Ward Alderman since December 2015 – almost seven and a half years. On December 14, 2015, he was appointed by former Mayor John Rey to replace former Seventh Ward Council member Monica O’Leary upon her resignation. On April 4, 2017, he was elected to complete the term of the former Council member. On April 2, 2019, he was re-elected to serve a full, four-year term to May 2023. Alderman Faivre has served through recession and pandemic, and has been very instrumental in promoting fiscal responsibility, responsive government, public safety, transformative economic development, and family-centered entertainment in the City of DeKalb. As much as anything, his kind nature and innovative thinking have brought much value to the Council’s regular discourse on a wide range of projects and topics. He has served ably and well.
E. PUBLIC PARTICIPATION
F. APPOINTMENTS
None.
G. CONSENT AGENDA
1. Minutes of the Regular City Council Meeting of April 10, 2023.
2. Accounts Payable and Payroll through April 24, 2023, in the Amount of $2,177,375.98.
3. Freedom of Information Act (FOIA) Report – March 2023.
4. Resolution 2023-046 Authorizing a Workers’ Compensation Lump Sum Petition and Order in the Amount of $35,986.04 (David Delille).
City Manager’s Summary: On March 12, 2020, David DeLille was injured while working as a Firefighter/Paramedic with the City’s Fire Department. Mr. DeLille underwent medical treatment for his injury.
The City has reached a tentative agreement on a proposed settlement of the Workers’ Compensation claim, which is subject to approval by the City Council, and also subject to approval by the Illinois Workers’ Compensation Commission Arbitrator.
The proposed settlement contemplates all future medical treatment would be closed and the City would pay a full and final settlement payment in the amount of $35,986.04. In the absence of settling this claim, the matter will likely proceed to a contested hearing, with an uncertain outcome and further defense costs.
City Council approval is recommended. (click here for additional information)
H. PUBLIC HEARINGS
None.
I. CONSIDERATIONS
1. Consideration of a Draft Five-Year Program for Annual Street Maintenance for the Years 2024-2028.
City Manager’s Summary: The City’s five-year street maintenance plan expires at the end of 2022. In advance of the preparation of a draft plan for the next five years (2023-2028), the City participated with DeKalb County and the City of Sycamore in a pavement rating study in 2022 that was funded by DeKalb County’s metropolitan planning organization, DSATS (DeKalb-Sycamore Area Transportation Study), which also includes Cortland, Northern Illinois University, and IDOT District #3. The DSATS-funded field work was done in 2022 and the findings have been released for local engineers to plan priority projects subject to the review of their corporate authorities.
Background
From the middle of the nineteenth century through the middle of the twentieth century, America excelled in the creation of infrastructure, beginning with canals and post roads then roaring through a railroad-building surge that linked major cities and the Atlantic and Pacific coasts, and finishing with an interstate highway system that tied every corner of the country together with high-speed vehicular traffic. However, overall public investment in transportation declined from 2.3 percent of Gross Domestic Product (GDP) in the 1960s to about 1.7 percent in 2018. A 2017 report card from the American Society of Civil Engineers estimated that American cities experienced 240,000 water main breaks a year (DeKalb has an average of 50-60) wasting more than 2 trillion gallons of treated water. Four in ten of the country’s 625,000 bridges are more than fifty years old and one in nine is structurally deficient.
In the City of DeKalb, the report card has slightly improved in terms of street maintenance since the bold and controversial increase in home rule motor fuel taxes on November 25, 2019 (Ordinance 2019-077). In March 2008 the City of DeKalb established a local motor fuel tax on gallons of fuel pumped at motor fuel retailers within the City’s corporate limits for the purpose of funding road maintenance. In late 2019, the rate was increased from five and one-half cents ($0.055) per gallon or fraction thereof to nine and one-half cents per gallon ($0.095). At that time, the City Council and Finance Advisory Committee jointly agreed that additional annual dedicated revenue was necessary to address serious deficiencies in the condition of the City’s streets and alleys, as well as the declining and critical condition of much of the City’s fleet of Police, Fire and Public Works vehicles, in particular. Since 2019, the local fuel tax rate has been split between road expenditures (7 cents), airport expenditures (1.5 cents), and vehicle replacement (1 cent). For street maintenance purposes, the local fuel tax is not the only source of revenue, but it is the largest recurring source of general revenue. IDOT grant support has been critical in upgrading streets and intersections in prime development areas since 2019 and will be critical in the reconstruction of the North First Street and Lucinda Avenue bridges in the current fiscal year, but such state grants are by no means guaranteed going forward.
Local motor fuel tax is augmented by a share of the state motor fuel tax. The 19-cent increase in the state motor fuel tax revenue that took place in 2020 is restricted by state statute for road and bridge repairs, and such ancillary costs as salt and street lighting. This funding increase has also helped in building the City’s annual street maintenance war chest. In 2017-2018, the annual street maintenance allocation was stuck on about $750,000. According to the research in the City’s 2018-2022 Plan, the funding for street maintenance had averaged $860,000 for the previous 25 years. The annual war chest for street maintenance is now about $2.2 million in combined state MFT (Fund 210) and local MFT (Fund 400) monies, but the average annual street maintenance budget needed to address pavement surfaces in the “poor” range is $2.6 million over the next five years. The glossary below illustrates the various rating thresholds:
Despite the more aggressive and strategic allocation of street maintenance funding for the upgrade of key City arterials and residential collector streets (e.g., North and South First Street, North and South Seventh Street, West Taylor Street, N. 13th and N. 14th) in 2019, 2020, 2021, and 2022 the City’s many residential road miles continue to steadily deteriorate. Additionally, street-related costs such as sidewalk repairs and alley improvements often get less than desired attention as limited funds are spread further on the more compelling distressed road surfaces.
Upon the completion of the City’s bridge projects in 2023, the City’s average annual capacity for street maintenance will be about $2.5 million (State MFT: $1,650,000; Local MFT: $850,000). Of that $2.5 million, over $500,000 will be needed annually for de-icing materials, electrical costs for street lighting, and traffic signal parts and repairs. The remaining $2 million would drop over $1.5 million below the optimal annual funding level of $3.8 million determined in 2018.
The Proposed Five-Year Plan
The Five-Year Plan drafted by City Engineer Zac Gill is presented in full in the background to this Agenda item. The following summary graphically portrays the annual components of that draft Plan. It should be noted that the Plan does not include expenditures for streets that are part of larger development projects eligible for Surface Transportation Urban (“STU”) funds administered through the Illinois Department of Transportation, legislative earmarks, competitive grants, or public/private partnerships with developers through development agreements. It should also be noted that the proposed annual hot-mix-asphalt resurfacing program does not sufficiently address actual annual need. Over the next five years, the Plan cannot be funded with available resources to provide a path to a “satisfactory” or even a “fair” pavement condition rating for most City streets. In fact, the program is designed to target those streets needing immediate attention (“failing” or “poor”).
On April 10, the 2023 street maintenance allocation of $2,560,000 was approved by the City Council. The proposed 2024-2028 programs are highlighted below. As always, the City staff will review annual street conditions that may require some changes in the annual allocations, but the streets noted below are all in need of urgent attention:
The proposed Five-Year Plan allocates approximately $12 million to service about 26 miles (centerline) of local streets.
City Council direction is recommended. (click here for additional information)
J. RESOLUTIONS
1. Resolution 2023-047 Authorizing a Six-Month Extension through September 19, 2023, of the Strong Communities Grant from the Illinois Housing Development Authority in the Amount of $100,000 for Reimbursement of City Expenditures Related to the Demolition of Three Condemned Residential Properties.
City Manager’s Summary: On February 8, 2021, the City Council authorized the Mayor to sign a program funding agreement with the Illinois Housing Development Authority (IHDA to enable the City to receive up to $100,000 in grant funding from the IHDA Strong Communities Program (Resolution 2021-014). The program is designed to provide funds to reimburse City expenditures associated with the demolition of condemned residential properties. The clearing of such sites removes blight that diminishes property values in neighborhoods and also eliminates structures that are “attractive nuisances” for persons bent on mischief. Several structures have been razed over the past two years; about $63,000 remains to be spent.
More often than not, legal permission to raze abandoned structures requires lengthy negotiations with third parties – often financial institutions – that do not want to maintain the structures but also want to find a way to realize some return on their “asset” before a demolition action is enforced by the City. By approval of the attached resolution, the Council provides a six-month extension for the City to legally pursue demolition of at least two of the structures on the Building Department’s short list of failed and vacant houses.
City Council approval is recommended. (click here for additional information)
2. Resolution 2023-048 Authorizing an Agreement for Construction Engineering Services with Fehr Graham & Associates, LLC for the 2023 General Street Maintenance Program, with a Fee Not to Exceed $163,600.
City Manager’s Summary: On April 10, the Council awarded the 2023 Street Surfacing contract to Curran Construction for up to $2,560,000 including a 5% contingency and two alternates. The City will also need construction inspection and contract management services as in years past. Typically, fees for such engineering services are 6% of the construction costs plus testing fees, per state MFT parameters.
Fehr-Graham previously performed well during the 2018 through 2022 Street Maintenance Program with a high level of satisfaction expressed by residents of numerous neighborhoods. The firm also did well as the engineering project manager for the 2022 Downtown streetscape reconfiguration. In addition, Fehr-Graham project managers typically complete their contractual services under budget.
The City Engineer had estimated $175,000 for construction engineering services from the City’s MFT Fund to cover these professional service costs. The proposed $163,600 will cover observation, testing, and administrative services for approximately $2.56 million in street maintenance work.
City Council approval is recommended. (click here for additional information)
3. Resolution 2023-049 Approving a Supplemental Sum of $398,600 of Motor Fuel Tax Funds for Maintaining Various Streets and Highways Under the Applicable Provisions of the Illinois Highway Code (Section 23-00000-00-GM) from January 1, 2023, through December 31, 2023.
City Manager’s Summary: As City Engineer Zac Gill explains in his background memorandum, the Illinois Department of Transportation (IDOT) requires municipalities to pass a resolution estimating total expenditures of state Motor Fuel Tax (MFT) funds for general street maintenance for the upcoming fiscal year. The City staff originally projected this value at $3,149,000 for road salt, engineering services, electricity for streetlights and traffic signals, and street resurfacing. The decision to award a larger than anticipated contract to Curran Construction for an expanded Street Maintenance scope on April 10 requires that the Council authorize an additional $398,600 in appropriated Motor Fuel Tax funds (Fund 210) to cover the additional construction costs ($360,000) and construction engineering fees ($38,600) associated with the higher value of the 2023 program. The following table summarizes the new total anticipated MFT expenditures for 2023:
| Operation | Estimated Costs |
| Road Salt | $283,000 |
| Engineering Services | $238,600 |
| Electricity – Street Lights and Traffic Signals | $333,000 |
| Street Supplies | $133,000 |
| Street Resurfacing | $2,560,000 |
| Total | $3,547,600 |
4. Resolution 2023-050 Approving a Hospitality Liquor License for Volume Services, Inc., d/b/a Sodexo Live!, for the Northern Illinois University Convocation Center Located at 1525 W. Lincoln Highway.
City Manager’s Summary: Volume Services is replacing Sodexo America as the liquor license holder for the Northern Illinois University Convocation Center and will be doing business as Sodexo Live!
Since liquor licenses aren’t transferable under City ordinance, Volume Services has submitted an application for a Hospitality liquor license, along with a supplemental Catering permit. If approved, the liquor license will be considered “conditional” until the requirements laid out in the resolution are met, which include receipt of the State of Illinois liquor license and a City of DeKalb Fire Life Safety license. The City will receive an initial issuance fee of $5,659 along with $377 for the permit. Non-refundable fees for the liquor license application, Fire Life Safety application, and background investigations in the amount of $888 have been paid.
Background investigations for all owners and managers have been approved by the DeKalb Police Department.
The licensing term for a Hospitality liquor license begins on September 1 and ends on August 31 with an annual renewal fee of $3,735. In accordance with Chapter 38 of the City’s Municipal Code, since the initial license is being issued within the last six months of the current licensing term, the 2023 renewal fee for the liquor license will be prorated by 50%.
City Council approval is recommended. (click here for additional information)
5. Resolution 2023-051 Approving a Hospitality Liquor License for Volume Services, Inc., d/b/a Sodexo Live!, for the Northern Illinois University Stadium Located at 1245 Stadium Drive.
City Manager’s Summary: Volume Services is replacing Sodexo America as the liquor license holder for the Northern Illinois University Stadium and will be doing business as Sodexo Live!
Since liquor licenses aren’t transferable under City ordinance, Volume Services has submitted an application for a Hospitality liquor license. If approved, the license will be considered “conditional” until the requirements laid out in the resolution are met, which includes receipt of the State of Illinois liquor license and a City of DeKalb issued Fire Life Safety license. The
City will receive an initial issuance fee of $5,659 upon approval. Non-refundable fees for the liquor license application and Fire Life Safety application in the amount of $638 have been paid. Background investigations for all owners and managers have been approved by the DeKalb Police Department.
The licensing term for a Hospitality liquor license begins on September 1 and ends on August 31 with an annual renewal fee of $3,735. In accordance with Chapter 38 of the City’s Municipal Code, since the initial license is being issued within the last six months of the current licensing term, the 2023 renewal fee for the liquor license will be prorated by 50%.
City Council approval is recommended. (click here for additional information)
6. Resolution 2023-052 Approving a Restaurant/Low Alcohol by Volume Liquor License for Redjepi LLC, d/b/a Zana’s Woodfired Pizza, Located at 1406 Sycamore Road, Suite A.
City Manager’s Summary: Redjepi LLC has submitted an application for a Restaurant/Low Alcohol by Volume (ABV) liquor license. A Low ABV liquor license allows the business to sell alcoholic beverages with a 20% or less alcohol content. If approved, the license will be considered “conditional” until the requirements laid out in the resolution are met, which includes receipt of their State of Illinois liquor license and approval of the required background investigations for both owners by the DeKalb Police Department. The City will receive an initial issuance fee of $3,962 upon approval. Non-refundable fees for the liquor license application and background investigations in the amount of $638 have already been paid and the business currently holds a valid Fire Life Safety license.
The licensing term for a Restaurant/Low ABV liquor license begins on May 1 and ends on April 30 with an annual renewal fee of $2,547. Zana’s will need to apply and be approved for a State of Illinois liquor license before the City can issue an “unconditional” liquor license. It can take two weeks or more to receive the state’s approval, which will most likely be sometime in the month of May. Therefore, it is recommended that this initial license be allowed to have an expiration date of April 30, 2024.
City Council approval is recommended. (click here for additional information)
7. Resolution 2023-053 Approving a Retail Tobacco Store License for The Smoke Shop NIU 818, Inc., d/b/a The Smoke Shop, Located at 818 W. Lincoln Highway, Suite 3.
City Manager’s Summary: The Smoke Shop at 818 W. Lincoln Highway has a new owner, Mohammad Abdul-Majid, as well as a new corporation name – The Smoke Shop NIU 818, Inc. Accordingly, an application for a Retail Tobacco Store (RTS) license has been submitted. Retail tobacco stores are defined as a business that either has 30% or more of its revenue or more than 25% of its floor area devoted to tobacco products and accessories. If the license is approved, the City will receive an initial issuance fee of $3,735 and annual renewal fees of $350. Non-refundable fees for the RTS license application, background investigation for the new owner, and the required Fire Life Safety license in the amount of $688 have been paid.
The licensing term for tobacco licenses begins on July 1 and ends on June 30. Since the initial license is being issued within the last six months of the current licensing term, the City staff recommend that the 2023 renewal fee for the license be prorated by 50%.
City Council approval is recommended. (click here for additional information)
K. ORDINANCES – SECOND READING
None.
L. ORDINANCES – FIRST READING
1. Ordinance 2023-018 Amending the Fiscal Year-End December 31, 2022, Budget.
City Manager’s Summary: As a result of some projects unknown at the time the original FY2022 budget was adopted, several amendments to the budget for the fiscal year that ended December 31, 2022, are recommended.
As Finance Director Carrie Dittman writes in her background memorandum, the city’s legal level of budgetary authority is at the fund level, meaning that the budget officer may transfer amounts between departments within a fund, but transfers between funds must be approved by the City Council. Expenditures may not legally exceed budgeted appropriations at the fund level.
In this context, the following revisions are proposed for the Council’s consideration and action:
▪ Item #1 impacts the Capital Projects Fund and relates to the construction of the new salt storage dome on the Public Works property. On April 11, 2022, the City Council approved Resolution 2022-035, authorizing an access and remediation agreement with Nicor Gas and ComEd. The terms of the agreement called for environmental remediation which necessitated the demolition, relocation, and replacement of the City’s salt storage dome. The expenditure and revenue (reimbursement) from Nicor Gas was not part of the adopted
2022 budget; but the total project cost was just under $450,000. Additionally, funds that are borrowed to finance capital acquisitions (e.g., License Plate Reader Cameras) must be shown as both loan proceeds (revenue) and equipment (expense). The $129,033 transaction offsets itself. There is no net effect from these transactions.
▪ Item #2 relates to the Foreign Fire Insurance Tax (FFIT) Fund. The FFIT Board develops a budget for the fund which it forwards to the city to be included in the city’s overall budget. In Fiscal Year 2022, about $4,500 more in foreign fire insurance tax was received over the budget, so a corresponding revenue amendment is proposed. Additionally, several expenditure line items exceeded the budget, totaling about $12,000, and amendments are recommended for the line item of firefighting supplies/equipment. This is a net increase in expenditures of $7,500, which will be drawn down from the built-up fund reserves.
▪ Item #3 resulted from the Council Resolution 2021-103 passed in December 2021 approving a development agreement with Clear Investment Group. The agreement specified a $1.0 million economic incentive to the developer to be used to repair and rehabilitate the former Hunter properties of 808 Ridge Dr., 832 Ridge Dr. and 835 Edgebrook. The expenditure is more than offset by home rule sales taxes received in excess of the revenue budget. There is no net effect to the General Fund.
▪ Item #4 – within the ARPA Fund, various transfers out to other Funds were included in the budget, but the street improvement creating the Edgebrook Drive cul-de-sac, Annie Glidden sidewalks, Fairview Drive calming project and Grove Street bike path extension were all contemplated after the 2022 budget was adopted. A budget reclassification from “transfers out” to “street improvements” of $1.0 million is proposed, which has no net effect on the ARPA Fund.
▪ Item #5 – the Heritage Ridge Special Service Area #3 overspent the ground maintenance budget by an extremely minor amount, but as the fund cannot spend over budget a minor $100 addition to the expenditure is necessary.
▪ Item #6 – as noted above in item #1, the borrowing of funds for equipment must be shown as both revenue and expenditure. An addition of $150,000 to both loan proceeds and vehicle expenditure is necessary to reflect the City’s dump truck purchase. There is no net effect to the Capital Equipment Replacement Fund.
▪ Item #7 affects operations of the DeKalb Taylor Municipal Airport. The airport’s fuel sales exceeded expectations and were offset by a corresponding increase in fuel purchased for resale of $225,000. In addition, two significant federal grant projects occurred in 2022: the rehabilitation of Taxiway C, and the relocation and replacement of navigation units on runways 2, 20 and 27. This resulted in increased capital spending offset by an increase in grant revenue of about $300,000. There is no net effect to the Airport Fund.
▪ Item #8 is a reclassification of $80,000 between refuse removal expense and transfers out to cover the additional leaf pick up cost incurred during 2022. There is no net effect to the Refuse & Recycling Fund.
City Council approval of the proposed FY2022 Budget amendments is recommended. (click here for additional information)
M. REPORTS AND COMMUNICATIONS
1. Council Member Reports.
2. City Manager Report.
N. EXECUTIVE SESSION
1. Approval to Hold an Executive Session in Order to Discuss the Sale or Lease of Real Property as Provided for in 5 ILCS 120/2(c)(6).
O. ADJOURNMENT
https://www.cityofdekalb.com/AgendaCenter/ViewFile/Agenda/_04242023-2352
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