City Council

DEKALB CITY COUNCIL AGENDA REGULAR MEETING OCTOBER 23, 2023 6:00 P.M. DeKalb Public Library Yusunas Meeting Room 309 Oak Street DeKalb, Illinois 60115 Pursuant to Chapter 2 “City Council”, Section 2.04 “Council Meetings”, persons wishing to address the City Council during this meeting are required to register with the Recording Secretary by filling out and submitting a Speaker Request form, copies of which are located on the table just outside the meeting room, along with copies of the agenda. Comments will be limited to three (3) minutes. Further information for addressing the City Council can be found on the Speaker Request form. A. CALL TO ORDER AND ROLL CALL B. PLEDGE OF ALLEGIANCE C. APPROVAL OF THE AGENDA D. PRESENTATIONS None. E. PUBLIC PARTICIPATION F. APPOINTMENTS 1. Appointment of Susan Hauman, Director of Financial Services, to the Foreign Fire Insurance Tax Board, the Fire Pension Board, and the Police Pension Board. G. CONSENT AGENDA 1. Minutes of the Regular City Council Meeting of October 9, 2023. 2. Accounts Payable and Payroll through October 23, 2023, in the Amount of $2,648,645.28. 3. Freedom of Information Act (FOIA) Report – September 2023. 4. FY2023 Human Services Funding 3rd Quarter Report. H. PUBLIC HEARINGS 1. Public Hearing Regarding a Proposed Annexation Agreement for Property Located at 2023 Sycamore Road (Robert Wessels). City Manager’s Summary: The applicant, Robert Wessels, has submitted a petition to annex and rezone a 0.6-acre parcel at 2023 Sycamore Road (the corner of Sycamore Road and Greenwood Acres Drive). The site currently contains the Wessels Family Farm Market. The applicant is requesting rezoning, upon annexation, from the “SFR1” Single-Family Residential Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 2 of 16 District to the “PD-C” Planned Development Commercial District. The site is currently unincorporated, but contiguous to the City to the west (Kishwaukee Country Club) and east (FNBO Bank). The petitioner also seeks approval of a concept plan along with the approval of permitted uses and development standards. The building on the subject site is approximately 6,300 square feet and housed a restaurant in the late 1950’s, followed by the former Harley Davidson dealership for many years up to the mid-to-late 1990’s. The Wessels family have been renting the site for seasonal sales since 2001 and purchased the property in February of 2022. They use the site for the sale of agricultural products including produce, potted plants, Christmas trees, pumpkins and other farm products. The site is zoned “RC-2” Residential Conservation District under DeKalb County regulations. Some improvements were made to the building earlier this year including new siding, windows, and doors, which significantly upgraded the overall appearance. The County has not allowed the owner to occupy the building or continue the work until the non-conforming status of the building is resolved. Since the property is contiguous to the City, the County has encouraged the owner to annex. City staff have worked with the owner and his attorney regarding provisions of an annexation agreement and the acceptance of development standards, which would serve the owner’s interest in commercial sales without requiring, in effect, removing the building and building a new structure entirely up to code. The owner would like to get the property annexed and zoned in order to legally occupy a portion of the building. The owner wishes to occupy 2,700 square feet (36’ x 75’) at the front portion of the building or about 42% of the total building space. The owner wants to have an area inside the building for employees and customers to go over the colder months and have space for the sale of various products as well as storage. The City’s approach regarding the occupancy of the building is to require some basic improvements including the installation of a heating system, and review of the structural design of the walls and ceiling and electrical improvements. City inspectors have walked through the building with the owner and the list of required improvements to the building will be included in the annexation and development agreement (see attached). In relation to the outside of the building, improvements to the parking area and the installation of a six foot-high privacy fence along the west property line within one year is recommended. Currently, there is no water service or sanitary service to the property. Further development of the property with additional uses or expansion within the building may require the extension of water and sanitary services to the property. A 10” water line is located along Greenwood Acres Drive and an 8” sanitary sewer is north of the commercial bank across the road. The property is already annexed to the Kishwaukee Water Reclamation District. However, the connection of the low impact building to public sewer and water would conservatively cost over $20,000. Given the use which is akin to roadside farmstands in the area where there are no public facilities, the KWRD and City reviewers concluded that in the near term a primarily farm produce business could be tolerated with portable toilets with handwash features of the type that one sees at the Sandwich Fair. It is recommended that the location and screening of any portable toilet be approved by the City staff in consultation with the residential owner to the west prior to occupancy of the building. The current parking area adjoins Greenwood Acres Drive with no defined entry in relation to the corner with Sycamore Road. The current parking area covers about 160 feet, and the surface is a mixture of gravel, broken asphalt or grass. One of the recommended development standards is to establish a more defined parking area within one year of the approval of the annexation and rezoning. The City staff and petitioner have worked out a compromise Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 3 of 16 whereby no parking will be allowed within 65 feet of the right of way of Sycamore Road, except for one handicap space. In addition, a total of eight parking spaces will be provided according to the paving and striping requirements of the UDO. Vehicles will be allowed to continue to back onto Greenwood Acres Drive according to the recommendation of the City Engineer. The current business is not an overly intense commercial use and has a small parking demand with a quick turnover of customers. Finally, a Preliminary and Final Development Plan to be reviewed by the City’s Planning and Zoning Commission (PZC) and City Council is recommended if the owner occupies more than 2,700 square feet of the building. (click here for additional information) I. CONSIDERATIONS 1. Annual Property Tax Levy in the City of DeKalb. City Manager’s Summary: The property tax is the most stable source of general revenue for local taxing bodies. What is levied is typically applied and generally distributed, assuming property owners pay their obligations. Over the past decade, what DeKalb taxpayers have contributed to their local taxing bodies has, in the aggregate, exceeded what taxpayers in other northern Illinois cities have paid per $100 of EAV by a significant amount. This circumstance has diminished DeKalb’s competitive economic position. In 2019, the City’s aggregate rate was $11.73467 per $100 EAV. In 2020 the aggregate rate was $11.49927 per $100 EAV. At that time, DeKalb’s aggregate property tax rate was 20% higher than that of the City’s nearest geographical competitors (e.g., Geneva, St. Charles, Batavia, North Aurora, South Elgin, and East Dundee) whose aggregate rates were on average about $9.00 per $100 EAV. The 2021 aggregate rate in DeKalb was reduced to $11.06394 per $100 EAV owing in large part to the termination of TIF #1 and a substantial increase in local equalized assessed valuation tied to the Ferrara industrial development on the Gurler Road corridor: In 2022 (for taxes payable in 2023), the aggregate rate declined from $11.06394 per $100 EAV to $10.10837 per $100 EAV. The table below shows the rising community wealth that has been achieved owing to the extraordinary EAV growth from Meta (DeKalb Data Center), Ferrara Candy Company, Wehrli Custom Fabrication, and Amazon. The commitment of Kraft-Heinz in the late spring of 2023 promises continuing growth along the Gurler Road corridor. Year Rate-Setting EAV: City City Levy City Rate 2014 464,966,381 4,270,540 1.0245 2015 468,077,742 5,094,730 1.1942 2016 503,861,829 5,565,384 1.2021 2017 529,629,464 6,004,594 1.2268 2018 547,947,687 6,017,140 1.1883 2019 585,726,839 6,269,649 1.1541 2020 610,333,062 6,522,507 1.06868 2021 694,171,673 6,845,317 0.98612 2022 794,561,930 7,119,130 0.89599 2023* 998,000,000 8,123,459 0.81397 *Estimated In late November 2022, Mayor Barnes invited all local taxing bodies to join him in a summit consisting of the chief elected and administrative officers from each taxing body to jointly define targeted aggregate tax rates that would reduce the community’s aggregate rate to less than $9.00 per $100 EAV in 2-3 tax years. The first summit was convened on March 9, 2023, Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 4 of 16 and a follow-on summit meeting was convened on August 17. At the August meeting, it was agreed that a third summit meeting would be convened once all the local taxing bodies had approved their annual levies, keeping in mind the possibility that four industrial companies (Meta, Ferrara, Wehrli and Amazon) will contribute an estimated $150 million in new EAV in 2023, not including the impact of the DeKalb Township equalization factor of 9.53% on all types of properties. Although only the DeKalb Library and Park District have EAVs similar to the City of DeKalb, since DeKalb’s 2023 EAV is tentatively pegged at $998,000,000 it is clear that all local taxing bodies will have an opportunity to levy more actual dollars and still assure a solid decline in their tax rate. The tax rate of a local taxing body is found by dividing its approved levy by its EAV, times 100. Numerator_ = Quotient or Levy x 100 = Tax Rate Denominator EAV The following table was shared with representatives at the recent Mayoral summit meetings to portray the actual tax rates of local taxing bodies and some rate scenarios that might yield a sub-9% aggregate rate within three levy seasons: 2021 Rate 2022 Rate % Diff. 2023 2024 2025 Taxing Body Actual Actual -5.00% -4.00% -3.00% County (blended) 1.03149 0.96761 -6.19% 0.91923 0.88246 0.85599 Forest Preserve (blended) 0.07355 0.06915 -5.98% 0.06569 0.06306 0.06117 DeKalb Township 0.14864 0.14107 -5.09% 0.13402 0.12866 0.12480 DeKalb Road & Bridge 0.17298 0.17052 -1.42% 0.16199 0.15551 0.15085 City of DeKalb 0.00000 0.00000 0.00% 0.00000 0.00000 0.00000 DeKalb Pension Funds 0.98612 0.89599 -9.14% 0.85119 0.81714 0.79263 DeKalb Library 0.38546 0.37454 -2.83% 0.35581 0.34158 0.33133 DeKalb Park District (blended) 0.69631 0.67796 -2.64% 0.64406 0.61830 0.59975 School District 428 (blended) 6.80841 6.09342 -10.50% 5.78875 5.55720 5.39048 Kishwaukee College 0.64100 0.60874 -5.03% 0.57830 0.55517 0.53852 KWRD 0.11998 0.10937 -8.84% 0.10390 0.09975 0.09675 Aggregate Rate: 11.06394 10.10837 -8.64% 9.60295 9.21883 8.94227 The table below illustrates the trend in actual property tax dollars paid to the City alone by a household living in a home with a market value of approximately $300,000 in recent years: Base Twp New Final DeKalb DeKalb Year EAV Multiplier EAV Homestead EAV Rate Tax 2019 $97,906 1.0351 $101,343 -$6,000 $95,343 1.1549 $1,101.11 2020 $101,343 1.0409 $105,488 -$6,000 $99,488 1.06868 $1,063.21 2021 $105,488 1.0162 $107,197 -$6,000 $101,197 0.98612 $997.92 2022 $107,197 1.0662 $114,293 -$6,000 $108,293 0.89599 $970.30 State Pensions and the Annual Property Tax Levy In approaching its annual levy, the City Council has had to contend with the downstate pension crisis as well as its annual operating needs in recent decades. The Downstate Fire and Police Pensions are part of a unique, closed amortization system. Under the Illinois Pension Code, the Illinois Department of Insurance annually defines actuarial required contributions, Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 5 of 16 which include a “normal” cost (based on mortality tables, investment returns, beneficiary longevity, etc.) plus an amount sufficient to steadily bring the total assets of a pension fund up to 90% of the total actuarial liabilities of the fund by the end of the 2040 fiscal year, even though the fund will obviously be needed indefinitely into the future. As the arbitrary 90% funding date of 2040 approaches, the annual funding obligation increases independent of normal cost calculations. The downstate pension funding method is akin to paying the minimum amount of one’s credit card (i.e., an increasing interest cost plus the dollars one can afford). In this system, a municipality absorbing routine payroll increases resulting from cost- of-living adjustments or staffing increases is hard-pressed to keep pace with the ever- increasing annual dollar impact to reach the 90% threshold at the arbitrary due date. For DeKalb’s Police officers, the City will contribute a fixed dollar amount of $4,130,481 in 2024. This is based on the demographics of 65 active officers and an uneven investment performance over the past year. On a percentage of salary basis, the City’s contribution works out to 67% of the total wage and salary costs for active sworn officers (including Commanders who contribute to the Police Pension Fund). For DeKalb’s Firefighters, the City will contribute a fixed dollar amount of $5,343,974 in 2024. This is based on demographics of 58 active Firefighters and an uneven investment performance over the past year. On a percentage of salary basis, the City’s contribution equates to 94.4% of the total wage and salary costs of active firefighters (including Fire management who contribute to the Fire Pension Fund). The City’s contributions to the Fire Pension and Police Pension Funds continue to rise each year based on the results of the annual actuarial valuation. The chart below shows the recent experience: Actuarial Fiscal Required City's Adopted Shortfall Shortfall Year Contribution Tax Levy $ % Fire Pension $4,415,632 $3,720,878 $694,754 15.73% 2022 Police Pension $3,707,827 $3,124,439 $583,388 15.73% Total $8,123,459 $6,845,317 $1,278,142 15.73% increase over PY 2.87% 4.95% Fire Pension $4,933,015 $3,869,713 $1,063,302 21.55% 2023 Police Pension $3,901,382 $3,249,417 $651,965 16.71% Total $8,834,397 $7,119,130 $1,715,267 19.42% increase over PY 8.75% 4.00% Fire Pension $5,343,974 $4,415,632 $928,342 17.37% 2024 Police Pension $4,130,481 $3,707,827 $422,654 10.23% Total $9,474,455 $8,123,459 $1,350,996 13.80% increase over PY 7.25% 14.11% The total annual state Fire and Police pension obligation has exceeded the totality of the City’s annual property tax levy for decades. As depicted in the chart above, the total 2024 obligation is $9,474,455. Proposed Levy The ultimate resolution of the downstate pension crisis is possibly three to five years away and will require the State Legislature’s shift to an “open amortization” model like that employed by the Illinois Municipal Retirement Fund (IMRF). In the near term, the City has been able to Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 6 of 16 find some relief owing to the extraordinary EAV increases attending the continuing industrial development south of I-88. The evidence is found in the difference between the required pension contributions established each year by the City’s actuary and the actual City debt levies (the yellow-highlighted “shortfall” in the previous table, above). In FY2024, for the first time in many years, a smaller “shortfall” can be achieved. This is the singular result of being able to levy for a higher proportion of the entire City obligation ($8,123,459 or 85.7% in 2024 vs 80.6% in 2023) while reducing the City’s tax rate. Nevertheless, the fact is that every property tax dollar raised by the City government in 2023 (payable in 2024) will go toward the payment of unfunded Police and Fire pension obligations, and an additional $1,350,996 from other General Fund revenues (e.g., sales and use taxes) will be needed to meet the 2024 pension obligations. No City property tax revenues will be available for other general operating needs. The proposed levy is $8,123,458. The impact on a theoretical householder with a home carrying a present market value of approximately $375,000, including a DeKalb Township equalization factor (“multiplier”) of 1.0953, is illustrated in the table below: City of DeKalb Equalization Year Base EAV Factor New EAV Homestead Final EAV DeKalb Rate DeKalb Tax 2019 $97,906 1.0351 $101,343 -$6,000 $95,343 1.1549 $1,101.11 2020 $101,343 1.0409 $105,488 -$6,000 $99,488 1.06868 $1,063.21 2021 $105,488 1.0162 $107,197 -$6,000 $101,197 0.98612 $997.92 2022 $107,197 1.0662 $114,293 -$6,000 $108,293 0.89599 $970.30 2023 $114,293 1.0953 $125,185 -$6,000 $119,185 0.81397 $970.13 On October 16, the Finance Advisory Committee supported this recommendation. City Council concurrence with the FAC recommendation is requested. J. RESOLUTIONS 1. Resolution 2023-095 Amending Resolution 2023-067 to Extend the Deadlines for Northern Illinois University Foundation’s Option to Enter into a Redevelopment Agreement for the Development of the Northern Illinois University Center for Greek Life at W. Hillcrest Drive and Blackhawk Road. City Manager’s Summary: The attached resolution grows out of the Council discussion of September 25. At that meeting, Northern Illinois University (NIU) Chief of Staff, Matt Streb, explained the progress made with respect to the hiring of qualified architectural and engineering services to assist with the siting and design of the proposed Greek Life Center, as well as assistance with the significant philanthropic campaign on behalf of the project. As purchaser of a portion of the City property at the intersection of W. Hillcrest Drive and Blackhawk Road, the NIU Foundation requested and was verbally granted an extension until March 31, 2024, to accomplish the following:  Exercise its option by giving written notice to the City;  Enter into a purchase and sale agreement for the redevelopment of a defined portion of the City’s property;  Cooperate with the City in the preparation of a plat of subdivision that describes the real property to be conveyed, subject to the final approval of the City Council; Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 7 of 16  Cooperate with the City in the preparation of a conceptual building and site plan for the redevelopment project. Once these steps are accomplished, the City will sell the property to the NIU Foundation for a mutually agreeable price. Subsequently, the NIU Foundation will obtain all required building permits, the cost of which shall be waived by the City. Such permits shall be obtained within 90 days of the effective date of the purchase and sale agreement. It is understood that the final occupancy permit for the redevelopment will be obtained by December 31, 2025. City Council approval is recommended. (click here for additional information) 2. Resolution 2023-096 Authorizing a Fund 400 Architectural Improvement Program (AIP) Economic Incentive for 1600 E. Lincoln Highway in the Amount of $13,935 (Proven Winners – 815 Property Management). City Manager’s Summary: In the 2023 City Budget, the Council approved a modest architectural improvement program (AIP) for areas outside the City’s TIF #3 boundaries, in order to spur owner interest in façade and life safety improvements in other neighborhoods of the City. The program has the same essential requirements as the City’s TIF-funded AIP program. Property owners whose properties fall outside the TIF #3 district boundaries may apply for limited incentives up to a maximum of $25,000 based on a three-tiered list of reimbursable expenses. The tiers are shown in the following table: Major Capital Improvements – 50% Reimbursement ADA Compliance Façade Renovations Life Safety Equipment Electrical, Mechanical, and Restoration of Historic Architectural Design Fees Plumbing Upgrades Architectural Features Fire Alarm and Suppression Tuckpointing Systems Minor Capital Improvements – 25% Reimbursement Window & Door Exterior Lighting Exterior Painting Replacement Screening of Unsightly Utilities Deferred Maintenance – 10% Reimbursement Stair and Handrail Roof Repair or Replacement Gutter Replacement Replacement Floor Surface Repair Water Damage Repair According to the terms of the non-TIF AIP program, the City “forgives” 20% of the value of the matching funds each year for five years. In FY2023, the budget is $70,000 for qualified projects on a first-come, first-served basis and is found in the Capital Projects Fund (400-00- 00-69199). To date, $25,000 has been expended. If approved, the attached funding request from Brad Rubeck, representing Proven Winners (housed in the former Farm & Fleet building), would facilitate further upgrades to the properties at Industrial Drive and W. Lincoln Highway. The improvements will include a fresh coat of paint for the exterior of the main building, vestibule awnings, additional exterior lighting, and an AED device. City Council approval is recommended. (click here for additional information) Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 8 of 16 3. Resolution 2023-097 Approving a Full-Restaurant Liquor License for Floga LLC, d/b/a The Flame, 209 E. Lincoln Highway. City Manager’s Summary: Floga LLC, d/b/a The Flame, has submitted an application for a “Restaurant-Full” liquor license, which means they could serve a full variety of alcoholic liquors. 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, receipt of a City of DeKalb Fire Life Safety license, and approval of the required background investigation for the owner by the DeKalb Police Department. The City will receive an initial issuance fee of $5,659 upon approval. Non-refundable fees for the liquor license application, background investigation, and the Fire Life Safety application in the amount of $716 have already been paid. The licensing term for a Restaurant-Full liquor license begins on May 1 and ends on April 30 with an annual renewal fee of $3,735. City Council approval is recommended. (click here for additional information) 4. Resolution 2023-098 Authorizing an Engineering Services Agreement with Baxter & Woodman to Prepare a Comprehensive Strategic Water Model and Water Master Plan Assessment for the City of DeKalb’s Public Water Supply System in an Amount Not to Exceed $154,800. City Manager’s Summary: As Bryan Faivre, Director of Utilities and Transportation, writes in his background memorandum, the City has requested a proposal from Baxter & Woodman (B&W) for preparation of a comprehensive Strategic Water Model and Water Master Plan for the City’s public water supply system. The purpose of the Assessment is to assist the City in preparing a “roadmap” that identifies needed improvements to the existing water supply, treatment, distribution, and storage infrastructure for future growth. The assessment will outline estimated timelines, milestones, and probable cost for identified improvements, summarized in a prioritized list, allowing the City to navigate an uncertain timeline of growth over the next decade. Baxter & Woodman has extensive knowledge and experience with the City’s public water supply system. The firm successfully completed a similar study back in 2006 and served as the lead design and construction engineer during construction of the City’s five water treatment facilities, B&W would be in a strong position to jump into their assessment immediately, while other firms would need to familiarize themselves with every detailed facet of our water system and would need to include such an assessment in their price proposal. It is anticipated that the project may take a year to a year-and-a-half to complete. Why Now? The City of DeKalb has seen an astounding amount of new development over the past several years, increasing the City’s EAV by over $400 million since 2018. The positive impact this has had on our community cannot be overstated, and it is hard to imagine the position we would be in without it. One of the key elements in attracting this new development is the condition and readiness of the City’s public water supply. Companies such as Meta, Ferrara, Kraft-Heinz, 3M, Target, Nestle and others would not have considered DeKalb if they had any doubt about the City’s ability to meet their domestic water and fire suppression requirements. Credit must be given to past generations of Council Members, City staff, and DeKalb residents, who have supported Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 9 of 16 and maintained the City’s water system, placing it in a strong position to serve future growth at a moment’s notice. To ensure DeKalb’s water system maintains this position, the City Manager joins Mr. Faivre in requesting Council approval to employ the services of B&W to perform a comprehensive Strategic Water Model and Water Master Plan Assessment of the City’s public water supply system. Focus of the Study There are a number of key elements to such a study: 1. Updating the Water Model. As noted above, the City’s current water model was last updated in 2006. In the period 2006 to 2019, limited growth in DeKalb demanded only limited changes to the water system and did not warrant an update to the existing water model. The recent dramatic increase in growth, coupled with projections of future development, will require an up-to-date water model for planning purposes and water system expansion. B&W will update the City’s existing Water Model using WaterGems software and establish a link to incorporate the new model with the City’s existing GIS system. This will be critical for future planning and development and to evaluate water system capabilities and design. An up-to-date water model is also a particular focus of the Insurance Services Agency (ISO) which annually examines the City’s infrastructure and staffing in relation to local fire insurance rates. 2. SCADA System Recommendations and Improvements. The current SCADA (Supervisory Control and Data Acquisition) system was last updated in 2014. The system provides oversight and functional guidance to all aspects of the water system, turning on and off wells and treatment plants, monitoring pressures and flows, and alerting staff during off-hours should something go awry. The current system is working well; however, much of the software and some of the hardware is out-of-date and in need of upgrading (i.e., it runs on Windows 7 which is not supported, current I-Fix software version is out-of- date, the computer server is over nine years old, Programmable Logic Computer (PLC’s) need updating, security improvements are needed, etc.) B&W will review the current SCADA system and offer recommendations for improvements that would be incorporated into an RFP for bid purposes. 3. Facilities Assessment Including Analysis of Existing Water Pumping Capacity, Storage Capabilities, and Recommendations for Water Distribution System Improvements. Detailed analysis and recommendations to improve the condition of the City’s current water system facilities and its capabilities will be conducted, focusing on current water demands, water system production, storage capacities, and water distribution system improvements. 4. Proposals for New Water System Facilities and Improvements. B&W will provide proposals and recommendations for new water system facilities and improvements including new wells, water treatment plants (WTP’s), and water towers. An analysis of potential future water demands will be conducted, and possible locations for siting new wells, water treatment plants, and storage tanks will be explored along with estimated timelines for completion and probable costs. The information outlined above is further elaborated in the attached scope of work (Exhibit A) and will be incorporated in a single Strategic Water Master Planning Report. B&W provided an “al a cart” fee proposal as requested, so that the cost of each section of the Master Plan Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 10 of 16 Assessment could be evaluated, allowing the Council to potentially choose to proceed with certain aspects of the proposal, while excluding others. The cost of completing each section of work is provided on the attached Water System Master Plan Fee document (Exhibit B), which includes a total not-to-exceed price of $154,800 for completing all aspects of the work. If approved, the FY2023 Water Fund budget has funding available under GL# 600-00-00-62300 (Architect/Engineering Services) to begin work on this project in 2023. The remaining funding will be identified in the Water Fund’s FY2024 Budget. City Council approval of the Baxter & Woodman contract is recommended. (click here for additional information) 5. Resolution 2023-099 Authorizing a Purchase Agreement with Alexander Company for the Purchase of Chlorine for a Period of One Year from January 1, 2024, through December 31, 2024, for the Purpose of Treating the City's Drinking Water. City Manager’s Summary: The Utility Division asks the Council to award a bid for the supply and delivery of chlorine to the lowest responsive bidder, Alexander Company, for a one-year period beginning January 1, 2024, and ending December 31, 2024. Alexander Chemical is the current supplier of chlorine to the City and was the only bidder. The low bid received was $1.69 per pound, which is $0.30 per pound lower than the current price. Alexander, however, indicated on their bid that the price is only valid for the first months of the contract (January 1, 2024 – March 31, 2024) after which time it may be adjusted based on economic conditions. Awarding the bid to Alexander will result in a savings of approximately $10,500 annually when compared with the current cost of chlorine, assuming the price remains firm through the course of the year. The Council’s strategy in resisting a multi-year contract in the face of last year’s inflationary surge was successful. City Council approval is recommended. (click here for additional information) 6. Resolution 2023-100 Authorizing a Purchase Agreement with Water Solutions Unlimited for the Purchase of Fluoride for a Period of One Year from January 1, 2024, through December 31, 2024, for the Purpose of Treating the City's Drinking Water. City Manager’s Summary: Water fluoridation is a safe and effective means of improving oral health in a community. The Center for Disease Control and Prevention (CDC) recognized water fluoridation as one of the major public health achievements of the 20th century. Currently, the provider of the City’s fluoride (Hydrofluosilicic Acid) is Water Solutions Unlimited and the current price is $0.48 per pound. The City uses about 8,000 pounds per year. On October 3, the City of DeKalb publicly opened and read aloud the bids received for the purchase and delivery of fluoride for the City’s five water treatment plants. Bids were requested for both a one-year and two-year term. Two bids were received: Bid Tabulation One Year Term Two Year Term Company Name (price per pound) (price per pound) Water Solutions Unlimited $0.39 No Bid Alexander Company $0.469 No Bid Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 11 of 16 Accepting the low bid from Water Solutions Unlimited in the amount of $0.39 per pound will result in a savings of approximately $720 annually when compared to the current price of fluoride. City Council approval is recommended. (click here for additional information) 7. Resolution 2023-101 Authorizing a Purchase Agreement with Carus Corporation for the Purchase of Phosphate for a Period of Two Years from January 1, 2024, through December 31, 2025, for the Purpose of Treating the City's Drinking Water. City Manager’s Summary: Ortho/Poly-blended phosphates are used at the City’s five water treatment plants for treating potable drinking water. Phosphate improves water quality by sequestering iron and preventing rusty water complaints. In addition, phosphates produce a microscopic coating on the interior surface of water pipes to prevent metals from leaching into the water supply. This is one of the main reasons why DeKalb has been successful in complying with the EPA’s Lead and Copper Rule. The City’s current supplier of Ortho/Poly-Blended Phosphate is Carus, and the current price is $1.30 per pound. The City projects it will use 70,000 pounds of phosphate by the end of 2023. On October 3, the City of DeKalb publicly opened and read aloud the bids received for the purchase and delivery of phosphate for the City’s five water treatment plants. Bids were requested for both a one-year and two-year term. Bid Tabulation One Year Term Two Year Term Company Name (price per pound) (price per pound) Carus $0.92 $0.95 Water Solutions Unlimited $1.05 No bid Chemrite Inc. $1.087 $1.16 Shannon Chemical $1.37 $1.47 As Carus’s blended phosphate is proprietary and the firm has offered favorable pricing for both a one-year and two-year contract, Mr. Faivre has requested Council approval of a two- year contract agreement with Carus for the supply and delivery of ortho/poly blended phosphates. Accepting the low two-year bid from Carus in the amount of $0.95 per pound will result in a savings of approximately $24,500 annually when compared to the current price of phosphate. City Council approval is recommended. (click here for additional information) 8. Resolution 2023-102 Authorizing a Purchase Agreement with Midwest Salt Company for the Purchase of Water Conditioning Bulk Softener Salt for a Period of One Year from January 1, 2024, through December 31, 2024, for the Purpose of Treating the City's Drinking Water. City Manager’s Summary: Water conditioning rock salt is used for softening the City’s potable water supply to ensure compliance with state and federal drinking water standards. It is a purer form of salt than regular road salt and is specifically designed for the treatment of drinking water. The present vendor is Compass Mineral, and their price is $140.58 per ton. The City expects to use about 1,450 tons of water conditioning rock salt in 2023. Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 12 of 16 On October 3, the City of DeKalb publicly opened and read aloud the bids received for the purchase and delivery of water conditioning bulk softener salt for the City’s five water treatment plants. Bids were asked for both a one-year and two-year term (see table below): Two bids were received: Bid Tabulation One Year Term Two Year Term Company Name (price per ton) (price per ton) Midwest Salt Company $144.50 No bid Compass Mineral $156.48 No bid Accepting the low bid from Midwest Salt Company in the amount of $144.50 per ton will result in an increase of approximately $5,684 annually when compared to the current price of salt. City Council approval is recommended. (click here for additional information) 9. Resolution 2023-103 Authorizing a Strong Communities Program Grant from the Illinois Housing Development Authority in the Amount of $109,000. City Manager’s Summary: Each year, the City of DeKalb identifies several very distressed or condemned properties that have been abandoned by their owners, or re-possessed by financial institutions that may be distant and unresponsive to property maintenance complaints and the concerns of nearby property owners. The City’s participation in the Strong Communities Program (SCP) of the Illinois Housing Development Authority has established the local means to negotiate the demolition of the abandoned properties and the acquisition of the properties for re-sale, through a deed in lieu of foreclosure. In 2023, the City has successfully demolished three properties for a combined cost of $71,220. The approval of the attached resolution makes SCP funds available for another three or more demolitions over the next 12 months or so. City Council approval is recommended. (click here for additional information) K. ORDINANCES – SECOND READING None. L. ORDINANCES – FIRST READING 1. Ordinance 2023-047 Authorizing an Annexation Agreement with Robert Wessels for the Property Located at 2023 Sycamore Road. City Manager’s Summary: The Public Hearing at the top of this Agenda briefly describes the petitioner’s request to annex and rezone a 0.6-acre parcel at 2023 Sycamore Road (the corner of Sycamore Road and Greenwood Acres Drive). The site currently contains Wessels Family Farm Market. The applicant is requesting rezoning, upon annexation, from the “SFR1” Single- Family Residential District to the “PD-C” Planned Development Commercial District. The site is currently unincorporated, but contiguous to the City to the west (Kishwaukee Country Club) and east (FNBO Bank). The petitioner also seeks approval of a concept plan along with the approval of permitted uses and development standards. The building on the subject site is approximately 6,300 square feet and housed a restaurant in the late 1950’s, followed by the former Harley Davidson dealership for many years up to the mid-to-late 1990’s. The Wessels family have been renting the site for seasonal sales since Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 13 of 16 2001 and purchased the property in February of 2022. They use the site for the sale of agricultural products including produce, plants, Christmas trees and other farm products. The attached annexation and development agreement identifies the following terms and conditions: a. installation of a six (6) foot high privacy fence along the west property line within one year. b. There currently is no water or sanitary service to the property. Further development of the property with additional uses or expansion within the building will require the extension of water and sanitary service to the property. A 10” water line is located along Greenwood Acres Drive and an 8” sanitary sewer is north of the commercial bank across the road. The property is already annexed to the Kishwaukee Water Reclamation District. c. In the near term, the use of portable toilets with handwash features will be acceptable. There is a portable toilet on the side of the building facing Greenwood Acres Drive. The location and screening of the portable toilet will be approved by the City staff in conjunction with the owner prior to occupancy of the building. d. The current parking area adjoins Greenwood Acres Drive with no defined entry in relation to the corner with Sycamore Road. The current parking area covers about 160 feet, and the surface is a mixture of gravel, broken asphalt or grass. One of the recommended development standards is to establish a more defined parking area within one year of the approval of the annexation and rezoning. The City staff and petitioner have worked out a compromise whereby no parking will be allowed within 65 feet of the right of way of Sycamore Road, except for one handicap space. In addition, a total of eight parking spaces will be provided according to the paving and striping requirements of the UDO. Vehicles will be allowed to continue to back onto Greenwood Acres Drive according to the recommendation of the City Engineer. e. A Preliminary and Final Development Plan will be reviewed by the City’s PZC and City Council if the owner occupies more than 2,700 square feet of the building. City Council approval is recommended. (click here for additional information) 2. Ordinance 2023-048 Approving the Annexation of Certain Property Located at 2023 Sycamore Road (Robert Wessels). City Manager’s Summary: If the Council approves the foregoing annexation and development agreement for the Wessels property, then according to the terms of that agreement the act of annexation shall not be unreasonably denied. City Council approval is recommended. (click here for additional information) 3. Ordinance 2023-049 Approving the Zoning Petition of Robert Wessels to Rezone Certain Property Located at 2023 Sycamore Road to the “PD-C” Planned Development Commercial District and to Approve a Concept Plan to Allow for the Continued Use of a Farmer’s Market and Accessory Uses. City Manager’s Summary: Once annexed, the Wessels property would default to “SFR1,” Single Family Residential zoning under state statute. This result would not satisfy the intent of the petitioner or the Council. The attached rezoning ordinance would rezone the parcel, upon annexation, to the “PD-C,” Planned Development Commercial zoning district. Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 14 of 16 The Planning & Zoning Commission held a public hearing regarding the rezoning petition at their meeting on October 16, 2023. By a vote of 7 to 0 the Commission recommended City Council approval of the of the rezoning, upon annexation, from the “SFR1“ Single-Family Residential District to the “PD-C” Planned Development Commercial District for the property located at 2023 Sycamore Road in keeping with the Concept Plan listed in Exhibit A of the staff report (attached) and subject to the Planned Development Standards listed in Exhibit B of the staff report that are listed below: Permitted Uses: The outdoor and indoor sale of agricultural products including produce, plants, Christmas trees and other accessory products. Bulk Regulations / Landscaping / Parking / Open Space: Setbacks, building lines, site coverage, building dimension limitations, height restrictions, parking, landscaping and other similar restrictions for any improvements to the site shall meet those standards set forth in the “LC” Light Commercial District of the UDO, except as listed below. Article 5.13.06 - Planned Development under 2 acres. Article 7.05 - Screening Requirements – A six (6) foot high privacy fence shall be placed along the northwest property line adjacent to 105 Greenwood Acres Drive within one year of the effective date of this Ordinance. Article 12 Off-Street Parking, Loading and Storage Requirements – The parking area shall comply with the requirements detailed in the UDO within one year of the effective date of this Ordinance. No parking shall be within 65 feet of the right-of-way of Sycamore Road, except for one handicap space. A total of eight parking spaces shall be provided including one handicap space in conformance with the paving and striping requirements of the UDO. Vehicles shall be allowed to back onto Greenwood Acres Drive. Portable Toilet Location and Screening - The location and screening of any portable toilets shall be approved by the City staff in conjunction with the owner prior to occupancy of the building. Preliminary and Final Development Plan Review: A Preliminary and Final Development Plan shall be submitted and reviewed by the City’s PZC and City Council pursuant to the procedures in the Unified Development Ordinance (UDO) if the owner occupies more than 2,700 sq. ft. of the building. City Council approval of the Planning & Zoning Commission recommendation is requested. (click here for additional information) 4. Ordinance 2023-050 Amending Chapter 23 “Unified Development Ordinance”, Article 13 “Signs”, as it Pertains to Electronic Changeable Copy Signs and Wall Signs. City Manager’s Summary: As Planning Director Dan Olson explains in his background memorandum, several textual changes in the UDO have been recommended by the City staff to accommodate local businesses. The changes are as follows: a. To allow electronic changeable copy ground signs in the “CBD,” Central Business District if the overall sign size is 25 sq. ft. or less and the site is not along E. Lincoln Highway. Four Square Church at 210 Grove Street applied for an electronic changeable copy sign (digital display sign) to replace their existing ground sign. The church is in the "CBD" Central Business District where electronic changeable copy signs are prohibited. The Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 15 of 16 proposed amendment is to Article 13.06.04 of the UDO to allow electronic changeable copy ground signs in the “CBD” if the overall sign size is 25 square feet or less and the site is not along E. Lincoln Highway. The “CBD” extends along E. Lincoln Highway generally from First Street to Seventh Street and roughly one to two blocks north and south of E. Lincoln Highway. There are some other properties in the “CBD” that have existing ground signs or yards that are large enough to accommodate a sign. Allowing electronic changeable copy ground signs in the “CBD”, except along E. Lincoln Highway, at half the size of other permitted ground signs seems reasonable and respects the purpose and intent of the district as described in the UDO. Electronic changeable copy wall signs in the “CBD” will remain prohibited. b. The second amendment is to Article 13.05.01, which would remove the 300 square foot wall sign maximum size standard in the NC, LC, GC, PD-C, ORI, LI, HI, and PD-I Zoning Districts, and allow wall signs on buildings 500,000 square feet or larger between Fairview Drive and Gurler Road to display up to two square feet of signage for each lineal foot of building frontage, instead of the current 1.5 square feet. The Kraft-Heinz building will be about 775,000 square feet in area and is under construction at Gurler and Peace Roads. The company has reasonably requested a wall sign area that is not dwarfed by the size of its distribution center but remains in proportion to the site and the signs on neighboring structures. The signs would be installed on the north, east and west elevations of the building (see attachment). Kraft-Heinz has an Automated Storage and Retrieval System (ASRS) covering one-third of the building. This high bay portion of the facility will be located at the northern portion of the building and up to a height of 135 feet. The north, east and west elevations of the building will have a large surface area and warrant a sign over 300 square feet. It should be noted that the City currently permits wall signs at two square feet for each lineal foot of building frontage for the “CBD” Central Business District and for the building furthest away from Sycamore Road in the Northland Plaza Shopping Center Planned Development. The Planning & Zoning Commission held a public hearing regarding the proposed text amendments at their meeting on October 16, 2023. By a vote of 7 to 0 the Commission recommended City Council approval of the aforementioned text amendments to the UDO regarding electronic changeable copy sign and wall signs. City Council approval of the Planning & Zoning Commission recommendation is requested. (click here for additional information) 5. Ordinance 2023-051 Amending the Fiscal Year-End December 31, 2023, Budget. City Manager’s Summary: It’s typical for the City staff to present some budget amendments near the end of the fiscal year to “true up” the budget prior to the annual audit. On occasion, budgeted expenditures on approved City infrastructure projects involving state funds need to be revised to reflect the timing of invoices or reimbursements that require revisions in individual line items. The following revisions are presented for Council approval: 1. Fund 210 (Motor Fuel Tax). Increase Revenue Line Item 210-00-00-38100 from $1,090,000 to $1,530,000. Increase Expenditure Line item 210-00-00-62300 from $650,000 to $1,090,000. Net Change to Fund: $0.00. Engineering services for the two Assistive services, including hearing assistance devices, available upon request. Regular Meeting Agenda October 23, 2023 Page 16 of 16 bridge projects are largely funded from state MFT funds over and above the annual, per capital DeKalb allocation. State reimbursements “pass through” the DeKalb accounts. 2. Fund 400 (Capital Projects Fund). Increase Revenue Line Item 400-00-00-38200 from $0.00 to $21,581. Increase Expenditure Line Item 400-00-00-62300 from $50,000 to $80,000. Net Change to Fund: -$8,419. These changes relate to the close-out of the traffic signal project at Illinois Route 23 and Gurler Road. A last installment of the Ferrara reimbursement for the signalization project partially offsets an additional payout to the engineer of record, Jacob & Hefner. While the net differences are minor, the amount of the larger reimbursements and payouts in the several line items exceed the budgeted amounts and the spending authority of the City Manager. City Council approval is recommended. (click here for additional information) M. REPORTS AND COMMUNICATIONS 1. Council Member Reports. 2. City Manager Report. N. EXECUTIVE SESSION None. O. ADJOURNMENT REGULAR AGENDA PACKET OCTOBER 23, 2023 Assistive services, including hearing assistance devices, available upon request.