City Council

MINUTES CITY OF DEKALB CITY COUNCIL COMMITTEE OF THE WHOLE MEETING OCTOBER 24, 2016 The City Council of DeKalb, Illinois held a Committee of the Whole meeting on October 24, 2016, in the City Council Chambers of the DeKalb Municipal Building, 200 South Fourth Street, DeKalb, Illinois. Mayor Rey called the meeting to order at 5:01 p.m. A. ROLL CALL City Clerk Jennifer Jeep Johnson called the roll, and the following members of the City Council were present: Alderman David Jacobson, Alderman Bill Finucane, Alderman Michael Marquardt, Alderman Bob Snow, Alderman Kate Noreiko, Alderman Tony Faivre, and Mayor John Rey. Alderman Dave Baker arrived at 5:05 p.m. Also present were: City Manager Anne Marie Gaura, City Attorney Dean Frieders, Finance Director Cathy Haley, Police Chief Gene Lowery, Fire Chief Eric Hicks, Acting Community Development Director Jo Ellen Charlton, Public Works Director Tim Holdeman, City Engineer John Laskowski, Information & Technology Technician Jeff Birtell, and City Clerk Jennifer Jeep Johnson. B. ITEMS ALSO ON THE REGULAR AGENDA There were none. C. CONSIDERATIONS 1. Presentation of the DeKalb Taylor Municipal Airport Organizational and Governance Study by Sixel Consulting Group, Inc. Executive Director, Strategy and Development, Jack Penning. Public Works Director Holdeman provided background on the issue, explaining that the purpose of the study is to examine whether there are areas that can be improved for efficiency. Public Works Director Holdeman introduced Jack Penning, Executive Director of Strategy and Development for Sixel, and direct overseer of the study. Public Works Director Holdeman provided background information on Mr. Penning. Mr. Penning provided an overview of the goals of the study, including economic impact. He explained the types of economic impact the study contemplated, including: direct impact, indirect impact (spending by those who collect the direct impact money) and induced impact (multiplier of indirect impact). Mr. Penning Committee of the Whole Minutes October 24, 2016 Page 2 of 5 explained that the City’s investment in the airport is good for the City as a whole, as can be seen by the impacts outlined. To further highlight his point, Mr. Penning provided a list of businesses that chose to locate in the area partially as a result of the availability of the airport. Mr. Penning explained that the main goal of the study was to be able to recommend the most efficient and responsive structure for the future. He also detailed key governance advantages and disadvantages. Mr. Penning provided an overview of all of the airports around Illinois as the City of DeKalb considers authority models, highlighting the pros and cons of each. Mr. Penning then made his recommendations, including: 1) Re-Structuring of the Airport Advisory Board; 2) Incorporating regularly scheduled meetings for leadership; 3) Enhance Direct Airport Outreach; 4) Develop a Strategic Vision and Business Plan; and 5) Re-Visit the Airport Authority Option. Mr. Penning provided Council with the changes that would need to be made in order to successfully implement the recommendations. He highlighted the dedication of the current board, and their aviation expertise. In closing, Mr. Penning stated that the airport is a tremendous asset to the community, and that it will play a bigger role in Northern Illinois as Chicago expands westward. He highlighted the tremendous opportunity for growth, and that it is imperative to ensure the proper structure for the future. Alderman Noreiko thanked Mr. Penning for his hard work and expressed that she has an increased appreciation for the value of the airport. She expressed favor for restructuring the board as a first step, and reiterated Mr. Penning’s sentiments on the current board’s dedication. Alderman Noreiko asked whether Mr. Penning had an impression of when the City might see some financial benefits as a result of implementing the recommended changes. Mr. Penning explained that increasing visibility would help immediately, as one jet adds $100,000 in revenue per year. He added that business recruitment will also play an important role, and that the Strategic Plan will help lay out what the future will look like. Alderman Jacobson asked how many of the current users ultimate destinations are DeKalb. Airport Manager Tom Cleveland responded that roughly 50% of users are going other places than DeKalb. Alderman Jacobson asked whether the City could implement fees on certain users, namely those users whose final destination is a place other than DeKalb. Mr. Penning said there isn’t enough staff to monitor where everyone is going, and Committee of the Whole Minutes October 24, 2016 Page 3 of 5 if the City does implement a landing fee, be sure to ensure it is competitive so as not to drive traffic away. He offered that a fee structure tiered for weight across the board would be best. Alderman Jacobson inquired as to whether lowered fuel prices would generate more traffic. Mr. Penning answered that he does not have a formal recommendation, but it seems like a worthwhile experiment. There is not concrete data to suggest that lowered fuel prices would increase traffic, but the inverse has proven true. He expressed belief that it would increase traffic, but couldn’t speak to whether it will increase revenue. Public Works Director Holdeman stated they are currently exploring the proposal mentioned, and while it seems very attractive, there are some risks. He expects to be able to make a decision on this matter by the end of the first quarter. The experiment would have certain risks and rewards that would need to be clearer. City Manager Gaura stated that this point is scheduled for further discussion at the upcoming Joint City Council and Finance Advisory Commission budget meeting. Alderman Baker wondered whether the Federal Government still provides funding. He also wanted to ensure that the businesses attracted to the airport are incentivized to locate in DeKalb. Airport Manager Cleveland stated that the Federal Government is still toying with the idea of funding per plane, but haven’t yet implemented it. Alderman Faivre inquired as to what the funding shortfall of the airport was in the prior fiscal year. Finance Director Haley stated it was less than $30,000, but the upcoming budget has it as over $200,000. Alderman Jacobson asked how much the study cost, with the response being there was authorization for up to $20,000. Alderman Noreiko asked whether there is anything that can be done physically at the airport to improve it, other than adding hangars. Mr. Penning responded that the physical plant is excellent for the size, and that maybe the business area could potentially be spruced up. Public Works Director Holdeman stated there are plans to improve the site in some ways, such as including automatic doors. Brief discussion ensued as to what the runways can accommodate. Airport Manager Cleveland stated that the City is close to needing to do an overlay ($3- $4 million), and suggested increasing the load capacity to attract bigger planes. Brief discussion ensued as to the current funding models. Committee of the Whole Minutes October 24, 2016 Page 4 of 5 Mayor Rey asked for an assessment of the leadership sessions. Public Works Director Holdeman stated he has become much more familiar with the airport as an organization, and has become more familiar with the operations. City Manager Gaura added that it has been invaluable having more open communications. Airport Manager Cleveland seconded the sentiments of City Manager Gaura, saying it has improved operations via improved communication. Alderman Marquardt wondered why it was necessary to increase the budget for promoting the airport, as the City is already paying money for promotions. Mr. Penning stated that monthly meetings with leadership, the DeKalb Chamber of Commerce, and economic development groups that are mandated increases their buy in as stakeholders. City Manager Gaura stated that the airport is not marketed enough through the DeKalb County Economic Development Corporation (DCEDC), so having them at the table every month will help them to better market the community. She categorized their inclusion as a “win-win.” Public Works Director Holdeman stated that staff will do research into the inquiries of Council, and develop a strategy and recommendation to be presented for their consideration. Alderman Jacobson stated that the limitation of the airport is that it benefits surrounding areas without them contributing to the cost to own and operate it. He stated that the City has to remain where its leverage points are with other communities to bring them to the table to address the benefits they receive at the expense of the taxpayers of DeKalb. Alderman Baker stated his belief that the City needs to try the idea of lowering the price of fuel. If it works, the City wouldn’t want to include other communities so that we can keep all of the increased revenue. D. PUBLIC PARTICIPATION Jim Mason expressed support for the project. He also stated that DeKalb should maintain control over it. He stated that he will support the project in any way he can. E. RECESS FOR EXECUTIVE SESSION OF THE CITY COUNCIL 1. Approval to Hold an Executive Session to Discuss Personnel as Provided for in 5 ILCS 120/2(c)(1). MOTION Alderman Jacobson moved to hold an Executive Session to Discuss Personnel as Provided for in 5 ILCS 120/2 (c)(1); seconded by Alderman Faivre. Committee of the Whole Minutes October 24, 2016 Page 5 of 5 VOTE Motion carried on an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Snow, Noreiko, Baker, Faivre, Rey. Mayor Rey declared the motion passed. Mayor Rey closed the meeting to the public at 6:01 p.m. Mayor Rey opened the meeting to the public at 6:36 p.m. F. ADJOURNMENT MOTION Alderman Jacobson moved to adjourn; seconded by Alderman. VOTE Motion carried on an 8-0 voice vote. Mayor Rey declared the motion passed and concluded the meeting at 6:36 p.m. _____________________________________ JENNIFER JEEP JOHNSON, City Clerk Approved by City Council November 28, 2016.