Raymond Munch, Interim City Manager Marc Thorson, Information Technology Director

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1 DATE: December 12, 2018 TO: FROM: SUBJECT: Honorable Mayor Jerry Smith City Council Raymond Munch, Interim City Manager Marc Thorson, Information Technology Director Authorizing the Design and Construction of a Fiber-Optic Network System and Related Public Safety Camera System for the Central Business District. I. Summary This item relates to a potential TIF 2 project designation. The City remains actively engaged with its partner taxing districts regarding a number of TIF-related items, including the disposition of TIF 2 proceeds and the projects or surplus payments that should be undertaken. This agenda item has been included based upon previous Council discussions regarding appropriate TIF funding utilization. However, the City looks forward to participation in the TIF discussions to occur on Monday, December 17 (prior to the December 18 Special City Council meeting), and to further collaboration with its community partners, which discussion may influence the Council determinations on this item. As part of the overall goals for the City, economic development is a key driver to increased revenue and population growth. Tax Increment Financing (TIF) is a tool available for use by the City to help facilitate this in the Central Business District (CBD) through the procurement of infrastructure items. Since 2017, staff has been researching the feasibility of a more complete fiber optic infrastructure in the CBD to facilitate an improved wireless Internet network, public safety camera systems, and other technologies. The implementation of this fiber optic infrastructure and related camera systems would dissuade potential illegal behavior and potentially increase foot traffic as the environment would feel safer. In early 2018, an initial wireless Internet implementation was completed. This project will provide the ability to improve that service by implementing more physical Internet connections to increase bandwidth and speeds during high-utilization periods. This will also provide the capability to expand the network to include more wireless access points.

2 The original estimated pricing was based on knowing that the existing fiber optic cabling in the CBD required replacing as there were freezing events that caused the cable to freeze and bend beyond tolerances, breaking strands of cable. There is not enough slack in the existing cable to facilitate repairs, so replacement of fiber optic cables is required. Staff is proposing a new route would be necessary to ease installation (the original fiber optic cable was installed in much smaller traffic conduit designed for more malleable copper cable) with larger conduit and more fiber-friendly hand-holes to allow for splice cases. This project presents an opportunity for a public/private partnership where companies have existing duct available. By purchasing this excess capacity, the City can expand even further than originally anticipated due to much lower construction costs. The total project is expected to extend from the Police Department along Lincoln Highway to Seventh Street at its Eastern-most point. The plan also works to extend fiber optic cable as far North as Locust Street in one location. As part of this project, there are several wireless access points included to replace existing, non-hardwired access points to provide better wireless Internet performance and allow more technology to be used. The replaced existing access points will be relocated to expand the coverage. With the new fiber locations, there will be equipment needed where fiber will be converted to copper connections needed by the devices, and boxes for power needed. There are seven cameras provided in this project that are high-definition and have 360- degree capabilities with zoom and night vision. Staff has also considered extended warranties at the time of purchase to offset future maintenance costs. The costs will need to include licenses for the cameras to work with the recording system and additional storage to accommodate more videos to retain. The total cost of this project is estimated to be $395,000, which includes contingency costs for almost all sections of 20% each (cameras and associated costs did not include a contingency). Based on a conservative budget, the $500,000 estimate should allow for complete and responsible implementation of the proposed project. Staff worked with a few vendors to come up with a solution that provides a more effective footprint and more effective use of funds. II. Background Since early 2017, the Information Technology Department has been investigating ways to provide a significant infrastructure in the CBD. The goal was to provide an extensive wireless Internet service and other technology to improve the CBD by making it safer and providing additional incentives to increase visitors. The goal was to expand on the existing fiber optic infrastructure and provide a camera system. Current pricing is based on preliminary estimates and is subject to confirmation through a full competitive process. Should Council approve this project to move forward, staff will follow purchasing policy and provide final costs for Council to consider. Page 2

3 Fiber Optic Staff coordinated with several vendors to provide an initial project scope and pricing. As shown in Attachment A, the fiber infrastructure would start at City Hall and extend on both the North and South easements along Lincoln Highway. A segment would also extend North into Van Buer Plaza and North along First Street to Locust Street. Staff also anticipates the fiber optic cable to extend West along Lincoln Highway and, in working with Northern Illinois University, have the cable terminate at the Police Department. There are expected to be at least seven light poles connected to the fiber optic cable. Please note that the number and location of the light poles used may change based on final construction costs. The original estimated pricing for this project assumed all new construction in the Downtown area to replace existing traffic ducts used by the original fiber optic cable. However, staff worked with Syndeo/DeKalb Fiber Optics to map out a new design allowing the City to purchase space in the existing ducts that significantly reduced construction costs. The estimated pricing for the fiber optic cabling and installation, use of existing ducts and hand-holes, lateral fiber optic installations to the light poles, and some construction work is preliminarily quoted at $292,000. Connections and Converters This project requires equipment to be installed to allow connections for wireless access points and cameras using the fiber in an efficient way. A separate engineer has provided estimates for fiber optic converters and six additional wireless access points for expanded wireless Internet coverage. The additional wireless access points as part of this project are designed to plug into a physical connection and will replace six existing installed wireless access points that will be relocated to expand the wireless Internet coverage. The costs for the equipment and installation is preliminarily quoted at $35,000, including a 20% contingency for unexpected costs. Public Safety Cameras and Accessories This portion of the project includes budgetary pricing for cameras, installation equipment, extended warranties, recording licenses, and additional storage. The extended warranties will provide coverage for the cameras beyond the initial three-year manufacturer warranty. The maximum extended warranty provided by the manufacturer is two years beyond the initial warranty (the manufacturer will not warranty beyond five years total). These cameras all provide high-definition picture and have 360-degree point-tilt-zoom and night vision. These cameras all work with the existing video management and recording. The additional cameras will require additional licensing to work with the recording system and additional storage will need to be considered to house the videos for the required amount of time. The total estimated cost for this portion of the project is $68,000. III. Community Groups/Interested Parties Contacted This item is anticipated to be presented at the December 18, 2018 Special City Council meeting in order to permit public discussion and consideration. Page 3

4 IV. Legal Impact Approval of this resolution would designate funds for the purpose of completing this project from funds available in TIF 2, in compliance with the requirements of the TIF Act. V. Financial Impact Should Council approve this project to move forward, the funding for this project would come from the appropriate TIF fund or transfer. The total cost of this project is anticipated not to exceed $500,000. VI. Options 1. Approve the resolution allowing this fiber optic cable and public safety camera project to move forward using the appropriate TIF fund or transfer. 2. Do not approve the resolution to allow this project to move forward. VII. Recommendation Staff believes this fiber optic project will provide a positive benefit to the CBD by increasing the safety of the area through public safety cameras and providing a more expansive service to the community by building the infrastructure for free wireless Internet and other potential technologies. Providing these benefits to the CBD is in keeping with the intent of TIF Districts and will contribute to a better experience in the Downtown, making the Downtown more appealing to businesses and consumers. It will also work to address conditions of blight that remain in the CBD and work to improve property values within the area. Page 4

5 RESOLUTION AUTHORIZING THE DESIGN AND CONSTRUCTION OF A FIBER-OPTIC NETWORK SYSTEM AND RELATED PUBLIC SAFETY CAMERA SYSTEM FOR THE CENTRAL BUSINESS DISTRICT. WHEREAS, the City of DeKalb is a home-rule municipal corporation with the power and authority conferred thereupon by the Illinois Constitution, the Illinois Municipal Code and the City Code of the City of DeKalb; and WHEREAS, the City of DeKalb presently operates multiple tax increment financing ( TIF ) districts within its corporate limits, pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/ , et. seq., ( the TIF Act ); and WHEREAS, within the boundaries of the City of DeKalb Central Area TIF, commonly referred to as TIF 1, the City has identified conditions of blight, of deteriorating property and diminishing property values, and other conditions that contribute to a decline in the area. The City has also identified that the absence of modern telecommunications infrastructure, infrastructure necessary to provide public wireless internet, and related communications modes, has diminished public interest in the area, has harmed the viability of businesses therein, and has contributed to a decline in traffic to the area that further contributes to neighborhood blight. Further, the City has determined that there is crime and unlawful activity in the area that further generates deterioration in property values, growth in delinquency and crime, diminution in traffic to the area, and related adverse impacts to the community, all of which constitute elements of blight that the City seeks to abate consistent with the terms of the TIF Act; and WHEREAS, the City seeks to undertake transformative development projects that will generate public and private benefit, will improve safety, protect public health, welfare and morals, eradicate blight, and generate an increase in the property tax assessment base in accordance with the TIF Act; and WHEREAS, the City finds that the design and installation of a fiber-optic network as a public improvement, along with the installation of public safety cameras and related wireless and wired telecommunications equipment, generates public and private benefit, is narrowly targeted to address conditions that are identified in the TIF Act as generating and contributing to blight, and constitutes elements of costs which are eligible for payment through the use of TIF proceeds pursuant to the TIF Act; and WHEREAS, the City finds that the presence of public safety cameras contributes directly to the improvement of neighborhood conditions and elimination of blight, and based on discrete review of actual examples of such installations, finds that public safety cameras aide in the elimination of delinquency, the prevention of crime and the solving of crimes that are committed; and

6 Resolution Page 2 of 3 WHEREAS, the City finds that the construction of a fiber optic network presents the most effective and reliable means to ensure that public safety cameras are operational and functional when required, and further provides benefits in supporting the expansion of telecommunication infrastructure within a blighted area, while also supporting the promulgation of more effective wireless internet access; and WHEREAS, the City finds that such costs constitute public works, and the costs of designing such systems constitute costs of study, design, development of plans and specifications and related costs, all of which are eligible for reimbursement under the TIF Act; and WHEREAS, the City finds that there is an urgent need to undertake the foregoing improvements to address conditions of blight within the City s Central Business District; and WHEREAS, the City finds that, notwithstanding the existence of TIF Districts in the area for multiple years, there are many properties within the Central Business District that have declined in equalized assessed valuation because of the perpetuation of conditions of blight, including but not limited to the perpetuation of crime and delinquency; and WHEREAS, the City finds that, but for the utilization of TIF funds to cover the costs of the improvements contemplated herein, the City lacks the funding to undertake the improvements, which would result in the area continuing to decline in value; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF DEKALB, ILLINOIS: SECTION 1: The City Council of the City of DeKalb hereby approves of the plan for design and installation of a fiber-optic network and public safety camera system as more fully described in the attached Exhibit A ( the Project ). A. The City Council approves of the Project and authorizes and directs that staff take the efforts described herein to initiate the Project, immediately. The City Council approves of the allocation of funds in the amount of $500,000 towards completion of the Project and reserves such funding for such purpose. The City Council finds that, based upon projections for fiscal year 2019 ( FY19 ), the Central Area TIF District, or TIF 1, will not have adequate fund balance or increment to cover the costs contemplated herein. Accordingly, the City Council directs the transfer or porting of funds from TIF 2 to TIF 1 to cover the costs of the Project. By and through approval of this Resolution, the City Council approves of the Project, and allocates and obligates funds necessary for its completion. The City Council s intention through approval of this Agreement is to obligate those funds for completion of this Project, in the same fashion as the City would obligate funds for a private redevelopment project through a development incentive agreement. B. Based upon the urgent need described in the findings, the City Council directs that the

7 Resolution Page 3 of 3 Project be initiated immediately and completed within FY2019. C. The City s staff is authorized and directed to immediately solicit competitive bids and pricing necessary for completion of all aspects of the Project, and to return such bids and pricing to the City Council for approval of appropriate agreements necessary to initiate construction of the Project as soon as possible. The City Council reserves authorization and approval of the actual agreement(s) for future action, following presentation of pricing and bids. D. The City Council finds that the sum of $500,000 is the estimated project completion cost for the Project, based upon a diligent study of estimated costs completed to date. The City Council directs staff, in the procurement of bids and pricing, to adjust the scope of the Project as described in Exhibit A to make full utilization of the available funding, so as to expand the scope of the Project to the greatest portion of the Central Business District and TIF 1 as shall be possible to cover, so as to maximize the impact on addressing and preventing blight therein. E. The City Council acknowledges that the City is presently contemplating the creation of a new TIF, commonly referred to as TIF 3. Should the City approve of TIF 3, the City shall pass a supplemental Resolution to amend this Resolution and designate the Project for completion within TIF 3, with the funding contemplated herein being then transferred to TIF 3. The City acknowledges that, should TIF 3 be created, the increment anticipated to be generated therein in FY2019 is not adequate to support the completion of the Project. Accordingly, with the TIF 1 proceeds being depleted in FY2019, and the TIF 3 increment not being adequate to support the costs of the Project, the City finds that the transfer contemplated herein is necessary in order to address the blight described above. SECTION 2: That the City Clerk of the City of DeKalb, Illinois be authorized and directed to attest the Mayor s Signature and shall be effective thereupon. PASSED BY THE CITY COUNCIL of the City of DeKalb, Illinois, at a Special meeting thereof held on the day of, 2018, and approved by me as Mayor on the same day. ATTEST: LYNN A. FAZEKAS, City Clerk JERRY SMITH, Mayor

8 Attachment A