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AGENDA - City of DeKalb

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AGENDA Committee of the Whole July 25, 2016 5:00 p.m. Roll Call Items Also on the Regular Agenda Considerations Emerald Ash Borer Management Program Update. EAB Management Update.pdf Location Quotient and Employment Statistics. LQ Staff Memo.pdf Discussion Regarding City Council Voting Requirements. Minimum Vote Requirements.pdf Public Participation Recess for Executive Session of the City Council Approval to Hold an Executive Session to Discuss Collective Bargaining as Provided for in 5 ILCS 120/2(c)(2). Approval to Hold an Executive Session to Discuss Pending or Imminent Litigation as Provided for in 5 ILCS 120/2(c)(11). Adjournment Assistive services available upon request. A. B. C. C.1. Documents: C.2. Documents: C.3. Documents: D. E. E.1. E.2. F.
Transcript

AGENDACommittee of the Whole

July 25, 20165:00 p.m.

Roll Call

Items Also on the Regular Agenda

Considerations

Emerald Ash Borer Management Program Update.

EAB Management Update.pdf

Location Quotient and Employment Statistics.

LQ Staff Memo.pdf

Discussion Regarding City Council Voting Requirements.

Minimum Vote Requirements.pdf

Public Participation

Recess for Executive Session of the City Council

Approval to Hold an Executive Session to Discuss Collective Bargaining as Provided for in 5 ILCS 120/2(c)(2).

Approval to Hold an Executive Session to Discuss Pending or Imminent Litigation as Provided for in 5 ILCS 120/2(c)(11).

Adjournment

Assistive services available upon request.

A.

B.

C.

C.1.

Documents:

C.2.

Documents:

C.3.

Documents:

D.

E.

E.1.

E.2.

F.

DATE: July 20, 2016 TO: Honorable Mayor John Rey City Council FROM: Anne Marie Gaura, City Manager Tim Holdeman, Public Works Director Mark Espy, Streets Superintendent SUBJECT: Emerald Ash Borer Management Program Update.

I. Summary The City has proactively managed the infestation of the Emerald Ash Borer (EAB) for over six years. During that period, 556 ash trees (of the 1,294 total ash trees) were removed. These removals were performed primarily by contractors at a cost of $100,192. In addition, the City has paid contractors $84,049 for treating infested ash trees to slow their demise. Currently, there are 610 ash trees being treated. Another 128 ash trees, not being treated because they are beyond saving, will need to be removed as they decline. The current level of spending to manage the decline of ash trees is approximately $25,000 per year for removals and $25,000 per year for treatment. Planning for this level of spending is recommended for the next three years.

II. Background There are approximately 8,000 trees located in City parkways and on City-owned property. The maintenance of these trees is the responsibility of the City. In 2011, there were 1,294 ash trees representing approximately 16% of all City trees (see attached map labeled “All Trees with Ash Trees, 2011”). The presence of the EAB in DeKalb was confirmed in June 2011 by the Illinois Department of Agriculture. Unfortunately, there is no effective means of stopping the EAB infestation. Recognizing the devastating effect that losing the entire ash tree population in a short amount of time would have on our community, the City developed an EAB Management Plan in August 2012. The plan outlines the City’s commitment to treat ash trees in a manner to prolong their life. It also sets forth a policy of actively removing ash trees that are dead or heavily infested with the EAB.

P a g e | 2

In April, 2013 the City hired a contractor to begin ash tree treatments for EAB. Unusually dry soil conditions likely contributed to the limited effectiveness of the program during the first year. In recent years the decline of treated ash tress has been dramatically reduced with the health of many trees improving as the result of treatment. The following table summarizes the activities conducted by the City to treat and remove ash trees since 2011. 2011: 1,294 Ash Trees Inventoried

Number of Trees Expenses (Contractors) Remove Remain Treat No-Treat Remove Treat

FY2011 187 1,107 - 1,107 FY2012 91 1,016 - 1,016 FY2013 20 996 932 64 $27,274 $11,801 FY2014 116 880 865 15 $27,005 $9,780 FY2015 56 824 610 214 $21,560 $24,968 FY2016 86 738 610 128 $24,353 $25,000 FY2016.5 $12,500 TOTALS 556 $100,192 $84,049

Presently, there are 610 ash trees being treated. All of the trees are responding well to treatment, which is being applied every two to three years depending on the condition of the tree. To date, approximately 556 ash trees have been removed by the City. There are 128 ash trees currently not being treated because they are beyond saving. These trees will need to be removed in the near future (see attached map labeled “Ash Trees: Treated, Untreated, Removed”).

III. Community Groups/Interested Parties Contacted The EAB will be an ongoing issue for residents with ash trees in the City. The State of Illinois Department of Agriculture monitors the infestation and will likely continue participating in the City’s response to the EAB. During a recent visit by representatives of the Illinois Department of Agriculture, compliments were extended to City staff on the effectiveness of the EAB management efforts being undertaken by the City.

IV. Legal Impact Dead and hazardous trees are a safety and liability concern not only for the City, but also for residents with ash trees on their property. Municipal Code Chapter 6.20 “Trees and Shrubs on Public and Private Property” mandates that all dead and hazardous trees be removed in a timely manner.

V. Financial Impact Annual costs of approximately $25,000 for treatment and $25,000 for removal are anticipated for the next three years.

P a g e | 3

VI. Options 1. Continue to support systematic treatment and removal of ash tree to minimize impact

to the community at the current funding level of $25,000 for treatment and $25,000 for removals.

2. Reduce treatment for the EAB and perform more tree removals. 3. Do not treat ash trees, monitor and remove trees as they become problematic due

to the EAB.

VII. Recommendation Staff recommends that Council continue to support systematic treatment and removal of ash tree to minimize impact to the community at the current funding level of $25,000 for treatment and $25,000 for removals.

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GURLER RDS 1ST

ST

RICH RD

I88 EASTBOUNDI88 WESTBOUND

S 4TH

ST

N PEACE RD

N 1S

T ST

S 7TH

ST

SYCAMORE RD

E FAIRVIEW DR

BETHANY RD

S PEA

CE R

D

NORM

AL R

D

E LINCOLN HWY

JOHN

HUB

ER PK

WY

N ANN

IE G

LIDDE

N RD

FAIRVIEW DR

W DRESSER RD

STATE STN

7TH

ST

SOUTH MALTA RD

CREG

O RD

N 14

TH ST

E TAYLOR ST

COUNTY FARM RD

W HILLCREST DR

TWOMBLY RD

W BETHANY RD

W LINCOLN HWY

N 4T

H STLUCINDA AV

STATE RTE 38

W TAYLOR ST

HARVESTORE DR

PEAC

E RD

DEKA

LB AV

GLID

DEN

RDS A

NNIE

GLID

DEN

RD

MILLER AV

PLEASANT ST

BARBER GREENE RD

DEKA

LB AV

S ANN

IE G

LIDDE

N RD

N 1ST

ST

W LINCOLN HWY

FAIRVIEW DR

RICH RD

BETHANY RD

0 0.5 1 1.5 20.25MilesI

File: \PW-Street\EAB_Treatment_20130812.mxdCreated: 6/10/2016 DJE

All Trees with Ash Tress, 2011

nm All Treesnm Ash Trees

tim.holdeman
Stamp
tim.holdeman
Stamp
tim.holdeman
Stamp

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File: \PW-Street\EAB_Treatment_20130812.mxdCreated: 6/10/2016 DJE

Ash Trees: Treated, Untreated, Removed

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DATE: July 6, 2016 TO: Honorable Mayor John Rey City Council FROM: Anne Marie Gaura, City Manager Ellen Divita, Community Development Director Jason Michnick, Economic Development Planner SUBJECT: Location Quotient and Employment Statistics for the City of DeKalb.

I. Background The purpose of conducting a location quotient (LQ) is to better understand and confirm the industry clusters that exist in the City in order to guide recruitment and retention efforts, as well as future policy-making decisions. An LQ is a ratio of the percentage of workers in a specific industry within the City, compared to the percentage of workers in that same industry within a larger region (e.g. county, state, etc.).

LQ ratios of one indicate that the employment in that sector is even with the benchmark. Concentration is given to industries with scores above 1.25 or less than 0.75. Higher scores indicate industry clusters and local specialization, while low scores indicate industries where sufficient goods or services for the local economy are not being produced internally. Using this data, policy and procedures can be investigated that would incentivize further growth in concentrated or complementary industries, but also in low scoring industries that show potential local demand. In addition to benchmarking the industries within the City, data is also provided in regards to industry trends, the inflow/outflow of workers in the City, worker source and destination locations, and general incomes. Information has also been collected from Northern Illinois University (NIU) in order to compare the output of graduates to industry strengths and trends of the City. The source of the data for the City, County, and State is taken from the U.S. Census’ On the Map tool and abides by the Bureau’s 2013 Statistical Quality Standards. National level data was collected from the Bureau of Labor Statistic’s website. The industries used for comparison in the LQ were the 20 sectors identified in the North American Industrial Classification System (NAICS), which are indicated in “Exhibit A.”

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II. Analysis The employment within the City indicates a heavy concentration in five specific industries, with 76% of jobs being within those sectors. The highest employing industry in the City is Educational Services (Education), which accounts for 31% of the total jobs in the City. NIU lists its total faculty and staff at 3,303 (5,342 total in City) as of September 2015. The remaining top industries in the City in regards to total number of jobs are Retail Trade (Retail), Health Care and Social Assistance (Health Care), Accommodations and Food Services (Food), and Administration and Support (Administration).

Education, Retail, and Admininistration, all have LQ scores (see “Exhibit A” for scoring tables) above one, indicating that the concentration of employment in those industries is above the regional amount. The Health Care industry scored at or below County, State, and National levels. Though the Kishwaukee Hospital is located adjacent to the City, those employment figures are calculated towards County employment and not the City, though citizens may work there. Sub-sector data indicated that the majority of the employed in the City within Health Care were in the Social Services area. This would indicate a potential demand for medical office space within the City. Within the Health Care industry, regional hospitals tend to be an anchor institution with smaller offices in the immediate area where practitioners have their practice. Also, NIU data indicates a recent growth in the number of graduates in the nursing field, which could act as a labor supply. Although employment statistics indicate a below average LQ for the Food industry, further market analysis would need to be conducted to determine if recruitment is advisable. The 2013 City Center plan by SB Friedman indicated the supply of eating and drinking places being higher than local demand, though it used 2010 data and would need to be updated.

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The citizens of the City show a more diversified workforce compared to those employed within the City. Education, Health Care, and Retail are still the top three industries for employment, but only comprise 41% of the total jobs that citizens fill. The total number of Education jobs in the City is 5,432, and City residents represent 2,889 of those working in that sector. Job flow data is unavailable for specific sectors, however, the ratio of those living in the City and employed in the Education sector would be 54% of the total number of individuals employed in that sector within the City. Observing the LQ scores for the City’s citizens also indicates a more balanced workforce, with Education being the only industry standing out against all three benchmarks. The Utilities industry was even with the County benchmark, and scored above the State and National percentages. Manufacturing also scored above State and National benchmarks, but was below that of the County. The LQ scores of both the City’s total employed, and those who hold jobs and live in the City show one concerning trend, which is the reliance on low-skilled jobs and industries. The University graduated 5,331 total students in 2014, with 1,626 being advanced degrees. This would indicate that graduates are not funneling into local jobs, and therefore, the economic impact of most students is temporary. A missed opportunity is present, in that stronger partnerships with NIU and the City’s employers are possible. Additionally, the student population could also be used as a marketing tool for business attraction, so long as there is an alignment with program strengths and business attraction efforts of the City. Moving forward, discussion with NIU stakeholders will need to occur in order to ensure this message alignment.

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Overall, the total number of jobs in the City has increased since its post-recession low in 2011. However, only 397 of the 960 lost have been regained. Comparing the average annual growth rate for 2011-2014, the City (0.7%) has underperformed against the Nation (2.2%), is even with the State (0.8%), and above the County (-2.6%).

Individual industry trends (see “Exhibit B”) for employment in the City indicate that the strongest areas of growth are in the Administration industry, and also in the Health Care industry, with the number of jobs in 2014 being higher than over anytime in the previous 12 years. Educational services has also increased historically, though growth has flattened following the recession. Retail trade has made some recovery, but has yet to approach 2008 figures. Transportation and Logistics has also made small gains over the 12 year period. Two industries that have declined are Food, and Manufacturing. The trend in Food followed that of Retail, with a peak in 2008, but no recovery has taken hold in the Food industry. The downward trend in the Manufacturing sector is long term, with 747 jobs being lost over 12 years. Moving forward, the City can work with the DCEDC and Kishwaukee Community College (KCC) to develop a strategy to begin to reverse this trend and rebuild the Manufacturing industry. Two other long term trends to consider are those choosing to live and work in the City. Since 2002, the number of individuals that both live and work in the City has been declining. During this same period, the number of individuals working in DeKalb, but

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residing in another location has climbed. There could be several factors at play that are driving these trends, such as quality of life, tax rates, or the rise of two-income households needing to be centrally located between work-places. Further investigation is needed in order to better understand the cause of these trends, or if they are correlated to trends in specific industries. The third category, those living in the City and working outside is more volatile. The volatility could be due to the large number of rental units in the City leading to large changes year over year. Graduate flight could also be a driving factor. Recent graduates could find employment in other areas and leaving the City following leasing terms, though this cannot be confirmed without more data.

When evaluating job flow, it is also important to observe the incomes for each category. Comparing the incomes for the City’s imported (Inflow) and exported (Outflow) workers, the income breakdown shows a higher

percentage of low income jobs going to imported workers. With 24% of the City’s employed working in Retail and Food, both industries with historically low, or minimum wages, could explain this. Also, many of these jobs could be part-time jobs being held by University students. In 2014, the poverty threshold for an individual was $11,670. An annual income for someone making $1,250 a month is $15,000. Based on the figures given for interior and exported jobs, 4,271 jobs that citizens hold pay 130% of the poverty threshold for an individual. The threshold for a household of two is $15,730. For single earner households of two or more in this category, they would be below the poverty line. Without further data on which specific households have multiple income streams, these would only be working assumptions without credible statistical support. It should be noted that according to the 2010 Census, 32.3% of the City was living in poverty, more than twice the national rate. Using the same job flow calculations for that year, income streams are within 0.1% of 2014 rates, indicating potentially no change in poverty levels within the City over the four year period. However, it is important to consider that the on-campus student body at NIU factors into census data for the City. With many of those students working part-time or only seasonally, it could be causing the City’s poverty rate to be artificially high, and the median income to be lower. Further research is needed to determine the impact the student body has on both statistics. Jobs with wages that pay more than $40,000 annually account for the highest share in both outflow and inflow categories in both Outflow and Interior jobs account for the highest share in those categories. Based on the percentages for these categories, 5,850 jobs held by citizens pay this amount or more. The remaining 5,255 jobs held by citizens of the City would fall in the middle category of $15,000 - $40,000 annual income.

Outflow Inflow Interior$1,250 or less 27.6% 33.4% 28.2%

$1,251 to $3,333 34.3% 33.6% 34.1%

$3,333 or more 38.2% 33.0% 37.7%

Monthly Income

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Using the State as a benchmark for incomes, the City is 4.7% below in the highest income category, and 3.3% above in the lowest income category. The number of lowing paying jobs in the City, and held by those living in the City has an impact in retail recruitment and

advertising the City as a viable market with strong purchasing power. The need to recruit higher paying jobs into the City should be a priority, though significant change will take time. Another area of observation in regards to job flow is the location of where workers are coming from and where citizens are going to work. More than one third (39%) of the workers in the City are local (i.e. DeKalb, Sycamore, Cortland). Though Chicago accounts for 4% of employment force, this number may be skewed by NIU students working at local businesses but being reported as living in Chicago on the Census. According to NIU, in 2014, there were 1,667 students enrolled from the City of Chicago. Outside of the City and Sycamore, the largest share of those working in the City are coming from locations along Interstate 88 (i.e. Aurora, Naperville, Rochelle), accounting for 3.7% of the workforce.

The destination of the City’s outflow workers shows that many are heading for larger cities such as Chicago, Rockford, Aurora, Elgin, and Schaumburg. However, cities located along the Fox River between Elgin and Aurora are another common location for citizens to work. This would make sense as it is the nearest industrial, commercial, and population concentration to the east of the City.

$1,250 or less 24.3%$1,251 to $3,333 32.7%$3,333 or more 42.9%

State Monthly Incomes

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III. Conclusion Based on the LQ scores, employment breakdown by industry, and job flow data, there are some major trends and conclusions that can be drawn. The first is the differentiation between the sector strengths within the City and the skillsets of the local workforce. Though industry clusters are traditionally a tool used in business recruitment, the industries present in the City are mostly low-skill, low-wage jobs. A large number of skilled citizens are having to leave the City to work, which is also an overall long-term trend. Since 2002, the number of those working and living in the City has been in steady decline. There is a major need to recruit higher-paid and higher-skilled jobs. This of course is the general goal of economic development everywhere. In order to make this happen, several factors and efforts will have to converge. From the City’s perspective, targeted recruitment efforts need to be made to specific sectors and sub-sectors that align with the strengths of both the local workforce’s skillsets, and also skillsets of graduates coming out of the University. There is limited to no measurable amount of technology transfer from NIU, and no student-to-job-to-home pipeline occurring. The City needs to work with both NIU and KCC to investigate how an environment can be fostered for the development of students to succeed here, not just during school, but also after. This can include further development of internship programs with local employers and students at NIU, as well as job training and workforce development programs through KCC. Efforts and discussions are already taking place to build stronger relationships, but tangible projects and goals need to be established and realized before incremental gains can be made. Several potential programs and policy recommendations will be brought forward in the near future that will focus on the different elements and factors that are acting as obstacles and barriers to growth in the City. These include focused incentives to build on the City’s strengths and weaknesses, employ sponsored housing to increase the number of individuals that both work and live in the City, detailed recruitment strategies that include unified messages with the appropriate stakeholders, and streamlining the development process to encourage new development in the City. In order for staff to focus on the appropriate projects and recommendations, Council and Staff should engage in conversations to identify the appropriate next steps.

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Exhibit A – LQ Tables

LQ Scores in this chart are an average of the benchmark scores (County, State, & National)

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LQ Scores in this chart are an average of the benchmark scores (County, State,& National)

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2014 2013 2012 2011 2010Agriculture, Forestry, Fishing and Hunting 0.00 0.00 0.00 0.00 0.00Mining, Quarrying, and Oil and Gas Extraction 0.00 0.00 0.00 0.09 0.00Utilities 0.08 0.16 0.15 0.11 1.14Construction 0.25 0.28 0.24 0.24 0.35Manufacturing 0.45 0.49 0.49 0.49 0.56Wholesale Trade 0.49 0.46 0.45 0.47 0.61Retail Trade 1.75 1.80 1.72 2.04 2.11Transportation and Warehousing 0.72 0.70 0.83 0.73 0.62Information 2.22 2.54 2.49 3.06 3.01Finance and Insurance 0.51 0.55 0.49 0.58 0.43Real Estate and Rental and Leasing 3.16 2.13 2.48 3.15 5.54Professional, Scientific, and Technical Services 0.32 0.26 0.31 0.35 0.35Management of Companies and Enterprises 0.28 0.44 0.41 0.46 0.40Administration & Support 2.16 1.43 1.72 1.30 1.33Educational Services 1.82 1.86 1.84 1.83 1.51Health Care and Social Assistance 1.03 1.13 1.15 0.97 1.13Arts, Entertainment, and Recreation 0.74 0.90 0.84 0.75 0.69Accommodation and Food Services 1.19 1.25 1.18 1.36 1.13Other Services (excluding Public Administration) 0.91 0.86 0.95 1.03 1.13Public Administration 0.25 0.24 0.22 0.26 0.26

LQ (Jobs in DeKalb vs. Jobs in County)

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2014 2013 2012 2011 2010Agriculture, Forestry, Fishing and Hunting 0.04 0.02 0.02 0.02 0.06Mining, Quarrying, and Oil and Gas Extraction 0.00 0.00 0.00 0.04 0.00Utilities 0.22 0.49 0.47 0.48 0.35Construction 0.41 0.50 0.44 0.38 0.48Manufacturing 0.63 0.73 0.70 0.74 0.76Wholesale Trade 0.35 0.33 0.32 0.36 0.41Retail Trade 1.48 1.43 1.43 1.47 1.46Transportation and Warehousing 0.56 0.55 0.57 0.55 0.45Information 1.07 1.22 1.18 1.28 1.24Finance and Insurance 0.34 0.33 0.30 0.31 0.31Real Estate and Rental and Leasing 1.21 1.02 1.10 1.15 1.16Professional, Scientific, and Technical Services 0.15 0.13 0.16 0.18 0.18Management of Companies and Enterprises 0.11 0.20 0.19 0.24 0.24Administration & Support 1.08 0.79 0.90 0.56 0.68Educational Services 3.14 3.18 3.07 3.12 2.93Health Care and Social Assistance 0.99 1.03 1.00 0.89 0.98Arts, Entertainment, and Recreation 0.46 0.53 0.56 0.55 0.57Accommodation and Food Services 0.99 1.06 1.12 1.26 1.15Other Services (excluding Public Administration) 0.81 0.73 0.74 0.86 0.87Public Administration 0.34 0.33 0.30 0.34 0.35

LQ (Jobs in DeKalb vs. Illinois)

2014 2013 2012 2011 2010Agriculture, Forestry, Fishing and Hunting 2.46 2.56 2.82 2.28 2.08Mining, Quarrying, and Oil and Gas Extraction 0.34 0.17 0.25 0.18 0.27Utilities 1.67 1.39 1.62 1.75 1.06Construction 0.89 0.93 0.88 0.95 0.81Manufacturing 1.04 1.14 1.06 1.03 1.03Wholesale Trade 0.94 0.96 0.86 0.87 0.96Retail Trade 1.11 1.08 1.06 1.03 1.12Transportation and Warehousing 0.83 0.75 0.77 0.70 0.84Information 0.83 0.73 0.91 0.89 0.84Finance and Insurance 0.59 0.55 0.49 0.54 0.60Real Estate and Rental and Leasing 0.87 1.09 0.95 1.02 0.82Professional, Scientific, and Technical Services 0.57 0.46 0.48 0.53 0.51Management of Companies and Enterprises 0.56 0.70 0.66 0.65 0.67Administration & Support, Waste Management and 0.94 0.82 0.84 0.78 0.82Educational Services 1.89 2.06 2.04 2.14 1.96Health Care and Social Assistance 0.91 0.91 0.91 0.89 0.86Arts, Entertainment, and Recreation 0.91 0.84 0.82 0.84 0.79Accommodation and Food Services 0.91 0.92 1.02 0.98 1.04Other Services (excluding Public Administration) 0.84 0.78 0.81 0.80 0.79Public Administration 0.95 0.85 0.92 0.88 0.92

LQ (DeKalb Citizens vs. Illinois)

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2014 2013 2012 2011 2010Agriculture, Forestry, Fishing and Hunting 0.01 0.01 0.01 0.01 0.02Mining, Quarrying, and Oil and Gas Extraction 0.00 0.00 0.00 0.01 0.00Utilities 0.22 0.49 0.45 0.47 0.34Construction 0.26 0.31 0.28 0.26 0.32Manufacturing 0.61 0.70 0.68 0.71 0.73Wholesale Trade 0.37 0.35 0.34 0.37 0.42Retail Trade 1.17 1.15 1.14 1.18 1.16Transportation and Warehousing 0.62 0.62 0.64 0.61 0.50Information 0.90 1.03 1.00 1.06 1.03Finance and Insurance 0.35 0.34 0.30 0.32 0.32Real Estate and Rental and Leasing 0.89 0.75 0.80 0.83 0.84Professional, Scientific, and Technical Services 0.15 0.13 0.15 0.16 0.16Management of Companies and Enterprises 0.11 0.20 0.20 0.24 0.24Administration & Support 1.03 0.74 0.85 0.52 0.61Educational Services 13.51 13.60 13.22 13.61 13.33Health Care and Social Assistance 0.87 0.89 0.89 0.79 0.86Arts, Entertainment, and Recreation 0.46 0.53 0.58 0.55 0.57Accommodation and Food Services 0.75 0.80 0.84 0.94 0.86Other Services (excluding Public Administration) 0.80 0.72 0.65 0.77 0.77

LQ (Jobs in DeKalb vs. National)

2014 2013 2012 2011 2010Agriculture, Forestry, Fishing and Hunting 0.66 0.65 0.73 0.56 0.54Mining, Quarrying, and Oil and Gas Extraction 0.08 0.04 0.06 0.04 0.07Utilities 1.66 1.38 1.57 1.72 1.03Construction 0.56 0.57 0.56 0.64 0.54Manufacturing 1.02 1.11 1.03 0.99 0.99Wholesale Trade 1.00 1.01 0.89 0.90 0.98Retail Trade 0.88 0.87 0.84 0.83 0.90Transportation and Warehousing 0.91 0.84 0.86 0.79 0.93Information 0.70 0.61 0.77 0.73 0.70Finance and Insurance 0.60 0.56 0.50 0.54 0.63Real Estate and Rental and Leasing 0.64 0.80 0.69 0.74 0.59Professional, Scientific, and Technical Services 0.54 0.44 0.44 0.48 0.46Management of Companies and Enterprises 0.54 0.73 0.69 0.66 0.68Administration & Support, Waste Management and 0.90 0.77 0.80 0.73 0.74Educational Services 8.14 8.81 8.77 9.32 8.95Health Care and Social Assistance 0.81 0.79 0.81 0.79 0.76Arts, Entertainment, and Recreation 0.91 0.84 0.84 0.84 0.79Accommodation and Food Services 0.69 0.69 0.76 0.73 0.78Other Services (excluding Public Administration) 0.83 0.77 0.71 0.72 0.69

LQ (DeKalb Citizens vs. National)

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2014 2013 2012 2011 2010Agriculture, Forestry, Fishing and Hunting 11.33 11.51 11.28 12.39 13.93Mining, Quarrying, and Oil and Gas Extraction 0.49 0.43 0.49 0.41 0.70Utilities 2.93 2.97 3.14 4.18 0.31Construction 1.67 1.82 1.86 1.60 1.35Manufacturing 1.41 1.47 1.45 1.49 1.36Wholesale Trade 0.72 0.72 0.71 0.75 0.67Retail Trade 0.84 0.80 0.83 0.72 0.69Transportation and Warehousing 0.79 0.79 0.69 0.75 0.73Information 0.48 0.48 0.47 0.42 0.41Finance and Insurance 0.67 0.59 0.61 0.54 0.72Real Estate and Rental and Leasing 0.38 0.48 0.44 0.37 0.21Professional, Scientific, and Technical Services 0.48 0.50 0.51 0.51 0.50Management of Companies and Enterprises 0.38 0.44 0.46 0.51 0.60Administration & Support, Waste Management and 0.50 0.56 0.52 0.43 0.51Educational Services 1.73 1.71 1.67 1.70 1.93Health Care and Social Assistance 0.95 0.91 0.87 0.92 0.86Arts, Entertainment, and Recreation 0.62 0.59 0.67 0.74 0.84Accommodation and Food Services 0.83 0.85 0.95 0.92 1.02Other Services (excluding Public Administration) 0.89 0.84 0.79 0.83 0.77Public Administration 1.33 1.35 1.33 1.34 1.34

LQ (County less DeKalb vs. Illinois)

2014 2013 2012 2011 2010Agriculture, Forestry, Fishing and Hunting 5.83 5.90 5.80 6.32 6.95Mining, Quarrying, and Oil and Gas Extraction 0.25 0.22 0.25 0.23 0.35Utilities 1.61 1.76 1.84 2.36 0.33Construction 1.05 1.18 1.17 1.00 0.91Manufacturing 1.03 1.11 1.08 1.12 1.06Wholesale Trade 0.54 0.53 0.52 0.56 0.54Retail Trade 1.15 1.11 1.12 1.09 1.08Transportation and Warehousing 0.68 0.67 0.63 0.65 0.59Information 0.77 0.84 0.82 0.84 0.83Finance and Insurance 0.51 0.46 0.46 0.43 0.51Real Estate and Rental and Leasing 0.79 0.74 0.76 0.75 0.69Professional, Scientific, and Technical Services 0.32 0.32 0.34 0.34 0.34Management of Companies and Enterprises 0.25 0.32 0.33 0.37 0.42Administration & Support, Waste Management and 0.78 0.67 0.70 0.49 0.59Educational Services 2.42 2.43 2.35 2.40 2.43Health Care and Social Assistance 0.97 0.97 0.93 0.90 0.92Arts, Entertainment, and Recreation 0.54 0.56 0.62 0.65 0.71Accommodation and Food Services 0.91 0.95 1.04 1.09 1.08Other Services (excluding Public Administration) 0.85 0.79 0.77 0.84 0.82Public Administration 0.85 0.85 0.83 0.85 0.84

LQ (Whole County vs. Illinois)

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Exhibit B – Industry Trend Lines This chart shows the top 8 employment industries in the City.

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Exhibit C – Additional Maps and Charts

Left: This map shows the density of employment in the City. The University is the largest employer and represents the darkest cluster on the western edge of the City. Other hot spots are the Sycamore Rd. retail corridor, Park 88 industrial, and the downtown area of the City. Below: The two tables below are the number of degrees awarded by the six colleges at the University. The average rate of decline in graduating students is higher than the rate of decline for students with declared majors in specific programs.

Employer Heat Map

2010 2011 2012 2013 2014Business School 858 734 720 648 614Education 460 392 423 373 293Engineering 197 174 198 197 226Health & Human Sciences 739 771 769 856 822Liberal Arts 1806 1738 1678 1605 1544Visual & Performing Arts 244 170 184 212 206TOTAL 4304 3979 3972 3891 3705

Degrees Awarded by College (Undergraduate)

2010 2011 2012 2013 2014Business School 393 360 398 394 415Education 566 517 475 358 382Engineering 78 118 97 59 80Health & Human Sciences 159 182 187 157 133Liberal Arts 336 311 310 280 281Visual & Performing Arts 103 70 83 110 72TOTAL 1635 1558 1550 1358 1363

Degrees Awarded by College (Masters/Advanced)

10 -11 %Δ 11 -12 %Δ 12 -13 %Δ 13 -14 %Δ Avg. RateUndergraduate -7.55% -0.18% -2.04% -4.78% -3.64%Advanced -4.71% -0.51% -12.39% 0.37% -4.31%Planned Majors -2.66% -3.68% -4.42% -2.21% -3.24%

Year Over Year Change

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Right: This radar chart shows the general direction and distance that those employed in the city are coming from. 45.4% of employees in the City are coming from within 10 miles of the city. Below: The Source table lists specific places where workers of the City are living.

Bottom Left: This radar chart shows where the citizens of the City are going to work. The majority (54.9%) are traveling less than 24 miles to work. 15.4% are traveling more than 50 miles to work. Bottom Right: Destination table lists specific places where citizens of the City go to work.

Source Count ShareDeKalb, IL 4,575 26.7%Sycamore, IL 1,695 9.9%Chicago, IL 680 4.0%Cortland, IL 413 2.4%Aurora, IL 259 1.5%Rochelle, IL 223 1.3%Rockford, IL 218 1.3%Genoa, IL 199 1.2%Joliet, IL 157 0.9%Naperville, IL 156 0.9%Batavia, IL 109 0.6%Bolingbrook, IL 101 0.6%St. Charles, IL 101 0.6%

Destination Count ShareDeKalb, IL 4,575 29.8%Sycamore, IL 1,313 8.5%Chicago, IL 629 4.1%Rockford, IL 537 3.5%Aurora, IL 507 3.3%Elgin, IL 288 1.9%St. Charles, IL 194 1.3%Naperville, IL 189 1.2%Geneva, IL 180 1.2%Rochelle, IL 158 1.0%Batavia, IL 149 1.0%Schaumburg, IL 143 0.9%Springfield, IL 129 0.8%

DATE: July 20, 2016 TO: Honorable Mayor John Rey City Council FROM: Jennifer Jeep Johnson, City Clerk Anne Marie Gaura, City Manager Dean Frieders, City Attorney SUBJECT: Discussion Regarding City Council Voting Requirements I. Summary From time to time, the minimum vote requirements applicable to various City Council actions are called into question based upon the application of State law, the City’s home-rule authority, and the City Code of Ordinances. In the past few months, there have been important developments in the law regarding the ability of home-rule communities to alter applicable minimum vote requirements, and these developments have to be considered for their impact upon the City’s practices. City staff has worked with the City Clerk to review current voting procedures and minimum vote requirements. Based upon those discussions, the City Clerk and staff have worked jointly to develop this memorandum to submit for the City Council’s consideration, to initiate informed discussion of the applicable legal standards. It is hoped that this discussion will lead to the development of an ordinance that will clarify the City’s voting standards. II. Background

On December 23, 2015, the Illinois Second District Appellate Court released its opinion in WKS Crystal Lake, LLC, et.al. v. LeFew and City of Crystal Lake, 2015 IL App.(2d) 150544, relating to the City of Crystal Lake and its 2013 tax levy ordinance. By way of background, Crystal Lake is a home-rule City with a seven member City Council (six aldermen and a mayor). Crystal Lake has a city ordinance that adopts Robert’s Rules of Order as their parliamentary procedure. The Crystal Lake ordinance states:

“[t]he rules of parliamentary practice comprised in the latest published edition of Roberts [sic] Rules of Order Revised shall govern all general or special meetings of the City Council to the extent that they are not inconsistent with rules of procedure specified in ordinances of the City or in the Illinois Compiled Statutes.”

By way of comparison, DeKalb’s City Code adopts Robert’s Rules of order as the City’s parliamentary procedure with the following, nearly identical ordinance:

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Adoption of Robert's "Rules of Order Revised". The rules of parliamentary practice comprised in the latest published edition of Robert's "Rules of Order Revised" shall govern the Council in all cases to which they are applicable and in which they are not inconsistent with the rules of this Council set forth in this Chapter or the Statutes or law of the State.

Crystal Lake also has an ordinance specifying what constitutes a quorum, and what the minimum vote requirements are for ordinances and measures for the expenditure of money:

“[a] majority of the elected members of the Council shall constitute a quorum thereof, but no ordinance or measure for the expenditure or [sic] money shall be passed without the affirmative vote of the elected members, pursuant to the provisions of the Illinois Compiled Statutes.”

In comparison, DeKalb’s City Code only specifies what constitutes a quorum and does not impose a minimum requirement for passage of measures involving expenditures:

“A majority of the corporate authorities shall constitute a quorum to do business. The Mayor is to be counted.”

In December of 2013, the Crystal Lake City Council convened a meeting with a quorum present. At that meeting, four aldermen and the mayor attended the meeting and two aldermen were absent. Three aldermen voted in favor of adopting the City’s annual tax levy and one alderman voted against. As there was no tie, the mayor did not vote on the proposition. The resulting vote was 3-1, which means that only three of the seven members of their City Council voted in favor of the ordinance levying taxes for 2013. Unlike the City of DeKalb, Crystal Lake does not have a two-part process for passing ordinances. They simply vote to pass an ordinance, rather than receiving and filing and then passing an ordinance. A taxpayer challenge was filed, asserting that the ordinance was invalid because of the application of the Illinois Municipal Code addressing passage of ordinances, and appearing to require the concurrence of a majority of the members then holding office. The taxpayers asserted that three aldermen voting in favor of the tax levy did not constitute the concurrence of a majority of all members then holding office on the City Council, and thus the vote was invalid. The Second District Appellate Court, which is also the Appellate Court that has jurisdiction over the City of DeKalb, disagreed with this assertion and upheld the Crystal Lake tax levy as being properly passed with a 3-1 vote. The Court noted that a majority of the members of the council constituted a quorum under the Crystal Lake city code. “As the total number of city council members is seven, that body may transact official business at any meeting where at least four members are present. On December 17, 2013, five members were present, and thus there was a quorum.”

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The Court went on to note that Crystal Lake, like the City, had adopted Robert’s Rules of Order, “and those rules permit the transaction of business by a concurrence of the majority of the members who are present…Thus [under city code adopting Robert’s Rules], the affirmative vote of three members—the majority of those city council members who were present on December 17, 1993—was sufficient to pass the Ordinance.” The Court’s ruling was based upon Illinois Supreme Court cases holding that home rule municipalities may adopt voting procedures that differ from those required by state law. This is brought forward to the Council so that the Council may consider, as a home rule community, how it seeks to regulate the voting requirements applicable to the passage of considerations before the Council. Prior to the decision in the Crystal Lake case, the City followed a conservative approach that a vote by a majority of a quorum was adequate unless the vote was on an issue addressed under the Illlinois Municipal Code in 65 ILCS 5/3.1-40-40:

The passage of all ordinances for whatever purpose, and of any resolution or motion (i) to create any liability against a city or (ii) for the expenditure or appropriation of its money shall require the concurrence of a majority of all members then holding office on the city council, including the mayor, unless otherwise expressly provided by this Code or any other Act governing the passage of any ordinance, resolution, or motion. Where the council consists of an odd number of aldermen, however, the vote of the majority of the aldermen shall be sufficient to pass an ordinance.

Under that statute the following items require either four aldermen or a majority of the members of the Council then holding office: 1) all ordinances; 2) all actions creating liabilities against the City; and, 3) all actions for expenditure or appropriation of monies. The City also utilizes City Code Section 2.13, which indicates that the following actions require a 3/4 supermajority vote of the corporate authorities then holding office (i.e. six of eight members of City Council): 1) the vacating of any street or alley; and, 2) the conveyancing, leasing, mortgaging or encumbering of property (other than leases under two years, leases authorized under other City Code sections, or property acquired under a TIF District). (Also of note, under City Code Section 2.04(e), waiver of second reading requires a 2/3 supermajority vote of the members City Council present at a meeting. Under City Code Section 54.06(d), major amendments to the City’s budget require a 2/3 vote of the members of City Council then holding office). However, under the holding of the Crystal Lake case, a home rule ordinance adopting Robert’s Rules supersedes this state statute, and that a vote of a majority of a quorum is adequate to take any action. Accordingly, at the present time, the legal result of the Crystal Lake case would be that a greater vote is required for any items expressly listed specific City Code sections, but a majority of a quorum would be adequate for nearly any other vote.

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As the Crystal Lake case recognizes the authority of a home-rule community to establish the voting requirements applicable to its actions, it is recommended to clarify this matter in the City Code with a clear definition of the Council’s policy. Even though the result of Crystal Lake is that a majority of a quorum may pass an ordinance, based on a review of the City of DeKalb’s procedure from past actions, it is not believed that this is an intended result for the City. This matter is brought forward for policy consideration by the Council. III. Community Groups/Interested Parties Contacted This item is anticipated to be discussed at a Committee of the Whole meeting, to allow an opportunity for public input. IV. Legal Impact At present, the City operates under the requirements of the City Code and the applicable requirements of the Illinois Municipal Code, as interpreted by the Illinois Court system. V. Financial Impact The direct consideration of the voting requirements is not anticipated to have any financial impact. However, the implications of the minimum voting requirements could have considerable impact. For example, in the Crystal Lake case, had the voting requirements been interpreted in a different fashion, it could have invalidated the City’s entire 2013 property tax levy. VI. Options The staff recommendation on this item does not include a recommendation on the minimum vote requirements applicable to any given action. However, staff does strongly recommend that the Council establish such direction and codify the same in City Code so as to eliminate any ambiguity between City Code and state law, and so as to eliminate any unintended consequences from the Crystal Lake case. Options for consideration by the City Council could include: 1. Follow the Crystal Lake rule and Robert’s Rules of Order, meaning that a

majority of a quorum is adequate to pass any measure unless a state statute expressly supersedes or limits this principle. (In the case of the eight person City Council, five is a quorum. If a meeting occurred with only five members of the Council present, a vote of three members of the Council would be effective, even in passing ordinances).

2. Include express voting requirements in City Code that mirror state statutes applicable to minimum voting requirements.

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3. Include express voting requirements in City Code that implement alternate voting requirements.

VII. Recommendation

While staff does not have a reason to recommend imposing standards different from those that would otherwise be applicable under State law, this is a policy question for the Council to consider. It is recommended to consolidate the voting requirements into a single section of Chapter 2, clearly written so as to provide the public and the Council with clear information as to the standards applicable to any given vote. Such an ordinance could also clarify the vote requirements for procedural votes taken by the City that are not required by state law, such as the vote to receive and file ordinances.


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