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HomeMy WebLinkAboutPacket - 06/03/2019 - City CouncilThe City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in a customer-oriented, efficient, and fiscally responsible manner. AGENDA REGULAR CITY COUNCIL MEETING City Council Chambers, 333 S Green Street Monday, June 3, 2019 1.Call to Order. 2.Roll Call. 3.Pledge of Allegiance. 4.Proclamation: Declaring June 21-28 as Bicycle Week in the City of McHenry 5.Public Comments: Any member of the public wishing to address the Council is invited to do so by signing in at the meeting entrance and, when recognized, stepping to the podium. Opportunities for Public Comment are also provided under each Individual Action Item. 6.Consent Agenda: Motion to Approve the Following Consent Agenda Items : A.Simplified Municipal Telecommunications Tax Ordinance; B.Block Party Request for St. Patrick Church, 3500 Washington Street, on Sunday, June 23, 2019 between 7:00am and 5:00pm.; C.Appointments to City Council Committees; D.Parks & Recreation Facilities Alcohol and Special Use Permit Requests; E.May 20, 2019 City Council Meeting Minutes; F.Issuance of Checks in the amount of $114,707.38. 7.Individual Action Item Agenda. A.Motion to approve a Conditional Use Permit to allow the outside storage of vehicles in conjunction with a towing operation at 4564 Bull Valley Road. B.Motion to approve the issuance of a Class A Liquor License to Whiskey Straight LLC, located at 3932 Main Street, McHenry, Illinois. C.Motion to approve and authorize the execution of a Development Agreement and Release of Letter of Credit and Annexation Agreement Obligations between the City of McHenry and Thelan Sand & Gravel, Inc. D. Motion to approve and authorize the execution of a Letter of Intent with Leopardo Companies, Inc. for the Completion of a Capital Program Audit to identify cost savings for reinvestment to address the City’s capital improvement and equipment needs. 8. Discussion Only Items. 9. Executive Session. A. Pending Litigation B. Property Disposition C. Review of Executive Session Minutes 10. Individual Action Item Agenda Continued E. Motion to a) pass a Resolution approving Executive Session meeting minutes as presented; b) authorize the release of Executive Session meeting minutes as presented; and c) the destruction of any Executive Session recordings that have existed for more than 18 months and for which the minutes of that meeting have been approved. (this item is not to be passed unt il after Executive Session) 11. Staff Reports. 12. Mayor’s Report 13. City Council Comments. 14. Adjourn. The complete City Council packet is available for review online via the City website at www.ci.mchenry.il.us. For further information, please contact the Office of the City Administrator at 815-363-2108. The proceedings of the City Council meeting are being video -recorded and every attempt is made to ensure that they are posted on the City of McHenry, IL “YouTube” channel within twenty -four (24) hours of the meeting adjournment. NOTICE: In compliance with the Americans with Disabilities Act (ADA), this and all other City Council meetings are located in facilities that are physically accessible to those who have disabilities. If additional accommodations are needed, please call the Office of the City Administrator at 815-363-2108 at least 72 hours prior to any meeting so that accommodations can be made. PROCLAMATION PROCLAMATION DECLARING JUNE 21-28, 2019, AS CITY OF MCHERNY BICYCLE WEEK WHEREAS, the bicycle is an environmentally-sound, economical, and effective means of personal transportation, recreation, and exercise; and WHEREAS, use of the bicycle for personal transportation benefits residents of the City of McHenry by reducing traffic, reducing carbon emissions, improving air quality, and decreasing dependence on finite fossil fuel energy sources; and WHEREAS, use of the bicycle for recreation encourages families and friends to spend time together outdoors enjoying city parks, McHenry County Conservation District properties, trails, and quiet residential neighborhoods; and WHEREAS, use of the bicycle for exercise provides adults and children can have positive health benefits including decreasing body fat levels, increasing cardiovascular fitness, increasing muscle strength, and decreasing stress levels; and WHEREAS, the City of McHenry endeavors to promote safe and responsible bicycling; and WHEREAS, there is a need for all motor vehicle drivers and bicyclists to be better educated regarding traffic laws and bicycle safety. NOW, THEREFORE BE IT PROCLAIMED, by this City Council of the City of McHenry, Illinois that the week of June 21 to June 28, 2019, is hereby designated City of McHenry Bicycle Week and all residents are encouraged to enjoy riding bicycle in a safe and responsible manner. BE IT FURTHER PROCLAIMED, that all motor vehicle drivers and bicyclists are encouraged to participate in the Illinois Bicycle Safety Quiz Challenge available at www.bikesafetyquiz.com. BE IT FURTHER PROCLAIMED, that the City Clerk of the City of McHenry is hereby authorized to spread a copy of this proclamation upon the records of the City of McHenry. DATED at the City of McHenry, Illinois, this 3rd day of June, A.D., 2019. _______________________________ Mayor, Wayne Jett _________________________________ Deputy City Clerk, Monte Johnson Administration Clerk’s Office 333 S Green St McHenry, Illinois 60050 Phone: (815) 363-2108 Fax: (815) 363-2128 www.ci.mchenry.il.us The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest quality of programs and services in a customer-oriented, efficient and fiscally responsible manner. CONSENT AGENDA SUPPLEMENT DATE: June 3, 2019 TO: Mayor and City Council FROM: Monte Johnson, Deputy City Clerk RE: Passage of Simplified Municipal Telecommunications Tax ATT: Proposed Ordinance ______________________________________________________________________________ AGENDA ITEM SUMMARY: The purpose of this consent agenda item is to pass and repeal a telecommunications tax. BACKGROUND/ANALYSIS: The Council passed Ordinance No MC-19-1185 on January 21, 2019. After submitting this ordinance to the Illinois Department of Revenue, one of their attorneys wanted to change some wording to the ordinance that was presented to and passed by the City of McHenry. This new ordinance does not change anything that was passed (other than technical wording), and the intent of the ordinance has stayed the same. The attorney for the Department of Revenue suggested the changes and advised the City of McHenry to repeal the old ordinance and pass this ordinance as presented. RECOMMENDATION: Therefore, if Council concurs, it is recommended that a motion be made to pass the Ordinance as attached. Ordinance No. MC-19-XXXX An Ordinance Amending Chapter 23 “Taxation” Article VI “Simplified Municipal Telecommunications Tax” of McHenry Municipal Code, within the City of McHenry, Illinois WHEREAS, this municipality desires to change the rate of its Simplified Municipal Telecommunications Tax pursuant to the Simplified Municipal Telecommunications Tax Act (35 ILCS 636/5-1 et seq.); NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of McHenry, McHenry County, Illinois that: Section 1. Tax imposed. A simplified municipal telecommunications tax is hereby imposed upon the act or privilege of originating in the municipality or receiving in the municipality intrastate or interstate telecommunications by a person at the rate of 3% of the gross charges for such telecommunications purchased at retail from a retailer, in accordance with and subject to the provisions of the Simplified Municipal Telecommunications Tax Act (5 ILCS 636/5-1 et seq.). Section 2. Illinois Department of Revenue to administer. The tax hereby imposed shall be collected and enforced by the Department of Revenue of the State of Illinois. The Illinois Department of Revenue shall have full power to administer and enforce the provisions of the Ordinance. Section 3. Clerk to file Ordinance with Illinois Department of Revenue. The Municipal Clerk is hereby directed to file a certified copy of this Ordinance with the Illinois Department of Revenue prior to March 20, 2019. Section 4. Effective date. The Ordinance shall be in full force and effect from and after its passage and approval and publication in pamphlet form as required by law, provided, however, that Section 1 of this Ordinance shall take effect for all gross charges billed by telecommunications retailers on (i) the first day of July next following the adoption and filing of this Ordinance with the Department of Revenue, if filed on or before the preceding March 20 th or (ii) the first day of January next following the adoption and filing of this Ordinance with the Department of Revenue, if filed on or before the preceding September 20 th. Section 5. Repeal of conflicting provisions. All ordinances and resolutions, or parts thereof, in conflict with the provisions of this Ordinance are, to the extent of the conflict, expressly repealed on the effective date of Section 1 of this Ordinance. Section 6. Publication. This ordinance shall be published in pamphlet form by and under authority of the City of McHenry, McHenry County, Illinois. Passed this 3rd day of June, 2019. Ayes Nays Absent Abstain Alderwoman Baehne ____ _____ _____ _____ Alderman Devine ____ _____ _____ _____ Alderman Glab ____ _____ _____ _____ Alderman Mihevc _____ _____ _____ _____ Alderwoman Miller _____ _____ _____ _____ Alderman Santi _____ _____ _____ _____ Alderman Schaefer _____ _____ _____ _____ APPROVED: Mayor Wayne Jett (SEAL) ATTEST: Deputy Clerk Monte Johnson Passed: Monte Johnson Deputy City Clerk 333 S Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 www.ci.mchenry.il.us The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in a customer-oriented, efficient, and fiscally responsible manner. CONSENT AGENDA ITEM DATE: June 3, 2019 TO: Mayor and City Council FROM: Monte Johnson RE: Block Party Request ATT: Application AGENDA ITEM SUMMARY: The following Block Party application has been submitted for consideration by Council: Washington Street: An application has been submitted by St. Patrick Church, located at 3500 Washington St, for the purpose of holding a block party on Sunday, June 23rd, between 7:00 a.m. and 5:00 p.m. They are requesting temporary closure of Washington Street from Court Street to Green Street. The Public Works Department and Police Department have reviewed the application and have no issues with the request. BACKGROUND/ANALYSIS: The City of McHenry allows block parties on all residential streets providing that they do not block intersections, cul-de-sacs or other roadways. To schedule a block party, city residents obtain a permit application online or at the Municipal Center and return it to the City Administrator’s office. There is no fee for the permit. Once approved, only moveable barriers (sawhorses) that are dropped off and picked up by Public Works can be used to control traffic. Blocking streets with vehicles is prohibited. RECOMMENDATION: Therefore, if Council concurs, then it is recommended a motion be made to approve the block party request as presented. Public Works will provide barricades and the McHenry Township Fire Protection District and Police Department will be notified of the event. May.13, 2019 4:05PM No, 6488 P. 2 Application submitted Street Address: bate Submitted Block Parly Permit Application Revised 01119 °ri�Ia Adn►rnc� I Gil NOTE: PLEA$P, $UPkIIT}'pUR.1PPL[CAT(ON TO 7aEA0511N151RAT[ON pFFICE AT LEAST 50AA1'S PRIOR 1Q ll,i7•E 011 PROPOSIDIiLOCKPAMY Date ofBlookParty; 7unt a3`� 20� Hours ofPlaposed Street Closure; % : 00 � a.n ,/p,tn, until �5 : o Q�a.m.( ,m Subdivision Name: Specific Location of Proposed Stt'eet Closure (i.e. from what intersectiolL to .what intel'seetion): Caltact Persou(s); URCH Contact Persou(s) Address: Sab W i{5Y11Y1 Email: '(�Qt� T hereby ceilify of l persons in my ne hborilod impacted by the closure of this street have been ,J notified of sane / /I UPON COMPLETION, PLEASE SUBMIT APPLICATIpN TO; CITY OF1YIcIIENRY ADIIIINISTRATION ORRICE 333 SOUTH GREEN STREET MCHENRY IL 60050 OR FAX: 815.363.2119 ORE -MAIL (linen dows@a ci,Imclionlq,iLas QRIiICE USE ONLY COUNCII,APPROVALON; / / 1�OTIFICATIONMADETO: ❑ MCIIENRYPOLICSDEPT, Q MCHENRY PUBLIC WORKS STREET DIVISION ❑ MCHTOwNSHIPFIRE PROTECTION DISTRICT 11 APPLICANT McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 www.ci.mchenry.il.us CONSENT AGENDA ITEM DATE: June 3, 2019 TO: City Council FROM: Wayne Jett, Mayor RE: City Council Committee Appointments for Consent Approval The purpose of this agenda item is for Council consideration and consent of City Council Committee appointments for the period June 3, 2019 through April 30, 2020 as follows: Public Works Committee (Staff Liaison - Troy Strange) Alderman Vic Santi, Chair Alderman Andy Glab Aldeman Chad Mihevc Parks and Recreation Committee (Staff Liaison - Bill Hobson) Alderman Jeff Schaefer, Chair Alderwoman Bobbi Baehne Alderman Pat Devine Community Development Committee (Staff Liaison – Ross Polerecky) Alderman Pat Devine, Chair Alderwoman Bobbi Baehne Alderwoman Sue Miller Finance and Personnel Committee (Staff Liaison – Carolyn Lynch) Alderman Chad Mihevc, Chair Alderwoman Sue Miller Alderman Jeff Schaefer As discussed and agreed by Council, the purpose of committees will be to meet upon referral of a specific topic by City Council, or upon request based on an identified need for input and direction by City Staff. If Council concurs, then it is recommended that the list of City Council Committee appointments be approved by consent of the City Council. Bill Hobson, Director of Parks and Recreation McHenry Recreation Center 3636 Municipal Drive McHenry, Illinois 60050 Phone: (815) 363-2160 Fax: (815) 363-3119 www.ci.mchenry.il.us/park_recreation The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in a customer-oriented, efficient, and fiscally responsible manner. CONSENT AGENDA SUPPLEMENT DATE: June 3, 2019 TO: Mayor and City Council FROM: Bill Hobson, Director of Parks and Recreation RE: McHenry Parks & Recreation Facilities Alcohol & Special Use permit requests ATT: Permit List and Applications All fees and documentation have been satisfactorily submitted for the attached McHenry Parks & Recreation Facilities Alcohol & Special Use permit requests. If Council concurs, then it is recommended a motion is considered to approve the attached McHenry Parks & Recreation Facilities Alcohol & Special Use permit requests. FOR COUNCIL MEETING ON JUNE 3, 2019 Shelter Rental Alcohol Permits These are alcohol permit requests associated with shelter rentals Date Applicant Address Park Purpose 06-15-19 Susan Dorwaldt 4702 W Northfox Ln #3 PP A Class Reunion Special Use Permits These are special use permit requests associated with shelter rentals Date Applicant Address Park Special Use 06-30-19 Danielle Rehberg 1609 Castlebar Rd Vets Park Bounce House Recreation Center Room Rental Alcohol Permits These are alcohol permit requests associated with Recreation Center room rentals or programs. Date Applicant Address Rec Center Purpose McHenry Parks & Recreation ( • • Shelter, Alcohol & Special.Use Permit Application MICH�nry Application Date: 5— 01 19 n 7 Rental Date: Sf}} rU R.i%��/ 7U/J� 1 S � t7 19 Rental Time: / �Od — n Q "^ Name of Applicant: S<rsflA) Date of Birth: / Group(Organization(ffapplicable):SM%-(,; Q. �HOOC C(Aa CU,Vu:pN Address: L(�pa W AxeFF W : City/State/Zip: MrYE,✓J2Y L� /oWSO Home Phone: Event Title/Activity: MASS 2fdd/1OFrdj Attendance: a5=•S�. List all activities to be hel& L/OL[E/ %SQLC— 3A640:5 - SHELTER: ❑Knox ShelterA I�'Petersen ShelterA ❑Petersen Shelter C ❑Veterans Shelter ❑ Knox Shelter B ❑ Petersen Shelter B ❑ Veterans Gazebo ❑ Other WEDDING: ❑ Rails removed at Veterans Memorial Park ($25 fee) BEERIWINE: (at least 4 weeks notice needed) Type of Alcohol to be Served: ❑ None � Wine :4beer NO OTHER ALCOHOL ALLOWED i Amount of Alcohol: WlneBottles# Beer Cases# Z Beer Kegs# SPECIAL USE: (at [east 4 weeks notice needed) —Equipment provided by renter ❑ Tent ❑Bounce House Location: Applicant to call JULIE (1-800-892-0123) for staking of Tents and Bounce Houses ❑ Tables # ❑ Chairs # ❑Benches# ❑Wedding Arch ❑ Performer ❑ Music: o DJ o Band ❑ Carnival Rides ❑ Animals ❑ Catered Pig Roast ❑ Other OTHER: Groups cr DAMAGE PEP: Credit Cal Signature Approval will be based on the Items listed above. Any other requests aresubjectto further approvah If applicable, health permits are required by Iawfor concessions and catering. Please make armngementrto obtain permitr.McHenry County bepartment of Health: 815-334-4585 I agree all alcohol containers will be removed by applicant or placed in proper containers on site on the rental date and that no underage or intoxicated person will be allowed to consume any alcohol brought into City of McHenry property underthis permit. I agree that none of the alcohol allowed in City of McHenry property, pursuant to this application will be sold, it being understood that the sale of alcohol underthis permit issued pursuant to this application is expressly prohibited. I also understand that notcomplyingwith the rules will result In loss of deposit. I agree to hold the City of McHenry, its employees and agents harmless, and indemnify same from any and all liability of injuryto person or property occurring as a result of the activity sponsored by penorittee and said person shall be liable to the City of McHenryfor any and all damage to parks, recreationfacilitles and equipment owned by same, which resultsfrom or duringthe activity of permittee or is caused by participant in said activity. All persons agree to comply with the City of McHenry Municipal Code and all Parks & Recreation regulations. I have read and fully understand the McHenry Recreation Shelter Guidelines. McHenry Parks & Recreation Shelter, Alcohol & Special. Use Permit Application MCH ax +Y;Vr, - �y, Application Date: J Rental Date: �,Q_1. \C\ Rental Time: � Group/Organization (if applicable): Home Phone: �� l List all activities to be held:�� SHELTER: ❑ Knox ShelterA ❑Petersen ShelterA ❑Petersen Shelter C 2Neterans Shelter ❑ Knox Shelter B ❑Petersen Shelter B ❑Veterans Gazebo WEDDfNG: ❑Rails removed at Veterans Memorial Park 0$25 fee) BEERIWINER. (at least 4 weeks notice needYine Type of Alcohol to be Served: one ❑Wjne ❑Beer NO OTHER ALCOHOL ALLOWED Amount of Alcohol: Bottles# Beer Cases# Beer Kegs# SPECIAL USE: (at feast 4 weeks notice needed)- Equipment provided by renter ❑ Tent Bounce House Location: Applicant to call JULIE (t-Boo-892-o723) for staking of Tents and Bounce Houses ❑ Tables # LiPerformer ❑ Catered Pig Roast ❑ other OTHER: Grout DAMAGE DEP: Credi Signa ❑ Chairs # ❑ Music: ❑ DJ o Band Ioiiat'L$.f,J ❑ Carnival Rides Li Wed Arch ❑ Animals Approval Will be based on the Items listed above.Any other requests are subJedto further approval. If appliable, health pennitr are required by lawfor roncessions and catering. Please make arrangementrto obtain permits. McHenry County Department of Health: St5334-4585 I agree all alcohol cordainerswll be removed byapplicant or placed in proper containers on sfte on the rental date and that no underage or intoxicated person will be allowed to consume any alcohol brought Into City of McHenry property underthis permit. I agree that none of the alcohol allowed In City of McHenry property, pursuantto this application will be sold, it being understood that the sale of alcohol underthis permit issued pursuant to this application Is expressly prohibited. I also understand that not complying with the rules will result in loss of deposit. I agree to hold the City of McHenry, Its employees and agents harmless, and Indemnify same from any and all liability of injury to person or property occurring as a result of the activity sponsored by permittee and said person shall be liable to the City of McH enry for any and all damage to parks, recreation facilities and equipment owned by same, which results from or during the activity of permittee or is caused by participant in said activity. All persons agree to comply with the City of McHenry Municipal Code and all Parks & Recreation regulations. I have read and fully understand the McHenry Recreatlo Shelter Guidelines. City Council Meeting Minutes May 20, 2019 Page 1 City Council Meeting May 20, 2019 Call to Order The City Council of the City of McHenry, Illinois, met in regular session on Monday, May 20, 2019, at 7:00 p.m. in the McHenry City Council Chambers, 333 S. Green Street, McHenry, IL. Roll Call Deputy Clerk Johnson called the roll. Roll call: Members present: Alderman Santi, Alderman Glab, Alderman Schaefer, Alderwoman Baehne, Alderman Mihevc, Alderman Devine, Alderw oman Miller, and Mayor Jett. Others present: Attorney McArdle, Administrator Morefield, Interim Director of Public Works Strange, Director of Community Development Polerecky, Finance Director Lynch, and Chief of Police Birk. Pledge of Allegiance Mayor Jett proceeded to lead those present in the Pledge of Allegiance . Proclamation Mayor Jett read a prepared proclamation proclaiming June 12, 2019, as William Pondel Day. Recognition Chief of Police Birk recognized the accomplishments of McHenry Police Officer Larry Popp and the retirement of Canine Officer Duke. Handlers and canine officers of other entities were on hand as well to show their support and recognition of Officer Popp and Duke. Public Comment Mayor Jett asked if there were any comments from the public in attendance, and there were none. Consent Agenda: Motion to Approve the Following Consent Agenda Items: A. An Ordinance Prohibiting the Use of Groundwater as a Potable Water Supply by the Installation or Use of Potable Water or by Any Other Method Within a Certain Area in the City of McHenry; B. A Resolution and Bill of Sale Approving a Transfer of Ownership of Canine Officer Duke from the City of McHenry to Officer Larry Popp; C. Approval of a Three (3) Year Professional Services Contract for Auditing Services with Eder, Casella and Company in the amount of $130,875; City Council Meeting Minutes May 20, 2019 Page 2 D. Award of Bid for the 2019 Crack Sealing Maintenance Program to SKC Construction, Inc. in the amount of $24,700; E. Waiving of Competitive Bids and Award of Bid for 2019 Street Sweeping Services to Lakeshore Recycling Systems in the amount of $79,695; F. May 6, 2019 City Council Meeting Minutes; G. Issuance of Checks in the amount of $1,291,250.38; H. As Needed Checks in the amount of $151,376.94. No members of the Council wished to remove any items from the consent agenda for separate consideration. A motion was made by Alderman Schaefer and seconded by Alderman Santi to approve consent agenda items A-H as presented. There being no further discussion on the motion Deputy Clerk Johnson called the roll. Roll Call: Vote: 7-ayes: Alderman Schaefer, Alderman Santi, Alderman Glab, Alderwoman Baehne; Alderman Mihevc, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. Individual Action Item Agenda Motion to approve an Ordinance Amending Chapter 14, Section 14-36 Alcoholic Beverages, and Chapter 4 Alcoholic Liquor, to allow for the creation of a “Bring Your Own Alcohol” Liquor License. Alderman Santi questioned if they would be able to obtain a gaming license since this is not a full license or a pour license. Chief Burke stated that they are not eligible for gaming. Alderman Glab asked if there would be a limit to the number of licenses, and Chief Burke explained that only two would be issued each year. The Chief also explained that currently there is no way to enforce this through the City’s code, and there is a need to regulate businesses allowing patrons to bring alcohol on site. This type of license would be similar to the special events license in that the Mayor would have the ability to approve licenses without bringing them to Council for approval. It was debated if the licenses would come before the Council at renewal time each year, and it is believed that they would. Alderman Schaefer stated that he would like the issuance of licenses become a public record, and it was agreed that if a license is issued it would be identified in the Mayor & Council Report section of the agenda. Although there was some discussion that the wording of the o rdinance may need to be changed, it was decided that the ordinance could be passed as presented and amended later if needed. A motion was made by Alderwoman Baehne and seconded by Alderwoman Miller to approve the ordinance Amending Chapter 14, Section 14-26 Alcoholic Beverages, and Chapter 4 Alcoholic Liquor, to allow for the creation of a “Bring Your Own Alcohol” Liquor License. Roll Call: Vote: 7-ayes: Alderwoman Baehne, Alderwoman Miller, Alderman Devine, Alderman Mihevc, Alderman Schaefer, Alderman Glab, Alderman Santi. 0-nays, 0-abstained. Motion carried. Ordinance Amending the FY19/20 Budget, Account 100.22.8300, in the Amount of $27,109.88 City Council Meeting Minutes May 20, 2019 Page 3 for the Purchase of a Replacement Police Vehicle and Related Equip ment; and, Authorization to Purchase One 2019 Ford Interceptor Utility from Buss Ford in an amount not to exceed $32,165.00 and the Purchase and Installation of Vehicle Equipment from Ultrastrobe, Inc. at a cost not to exceed $8,621.36. Chief Burke explained that a marked patrol vehicle was damaged beyond repair, and there is a need to replace it. Because the vehicle is being purchased through the State’s joint purchase program, this meets the requirements of the bidding process. A motion was made by Alderman Santi and seconded by Alderman Schaefer to pass the Ordinance Amending the FY19/20 Budget, Account 100.22.8300, in the Amount of $27,109.88 for the Purchase of a Replacement Police Vehicle and Related Equipment; and, Authorization to Purchase One 2019 Ford Interceptor Utility from Buss Ford in an amount not to exceed $32,165.00 and the Purchase and Installation of Vehicle Equipment from Ultrastrobe, Inc. at a cost not to exceed $8,621.36. Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Schaefer, Alderman Glab, Alderwoman Baehne, Alderman Mihevc, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. Motion to approve a Revocable License Agreement between the City of McHenry and Pedal and Pour, Inc. Alderman Santi asked if this agreement was just for one pedal boat . It was explained that this does authorize one pedal boat and it would be necessary to come back to Council to add a second pedal boat. A motion was made by Alderman Santi and seconded by Alderman Glab to approve a Revocable License Agreement between the City of McHenry and Pedal and Pour, Inc. Roll call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderwoman Miller, Alderman Devine, Alderman Mihevc, Alderwoman Baehne, Alderman Schaefer. 0-nays, 0-abstained. Motion carried. Conditional Use Permit for an Assembly Use and Variances for the property located at 4724 and 4716 W. Crystal Lake Road (McHenry High School, West Campus). City Administrator Morefield explained that this topic calls for a conditional use permit and three variances. This went before the Planning and Zoning Commission with unanimous approval. In addition to the information in the meeting packet, the Council received responses to concerns brought up by some Council members on various topics. A consulting team from Gewalt Hamilton Associates was present on behalf of District 156 to answer questions. Many issues were discussed at length including the salt dome structure, the plants and landscaping, the drainage area by the pond, a drainage ditch agreement between the school and the City, the size of the retention pond, a tree with a safety issue, the location of the tennis courts, a drainage easement with 39 lots, the possibility of adding a traffic light, and driving issues on Crystal Lake Road and the surrounding subdivisions. City Council Meeting Minutes May 20, 2019 Page 4 Alderwoman Miller thanked the representatives from Gewalt Hamilton Associates for their presentation. She also sat in on the presentation with Planning and Zoning. She expressed desire to change to direction and tone of the meeting and thanked the consultants for their work. In regards to the traffic light, Alderman Glab stated that IDOT should be contacted and should help determine if a light is needed. He said he has been in touch with State Senator Wilcox and would like to have a meeting set up between the City, IDOT, and the School District. Lynn Means of Gewalt Hamilton Associates said that the criteria for installing the light fall from the federal levels, and IDOT would not approve an installation of street lights until those criteria are warranted. The school district previously stated that they would pay for the installation of a light if and when the light is warranted. During the discussion about the water runoff and the drainage easements, Director of Community Development Polerecky stated that there would be no more runoff coming from the school property as there is now. He is willing to identify issues with the easeme nts for the 39 lots near the school property. School Superintendent Ryan McTague was present and expressed is commitment to work with the City. He feels there is a great relationship with the school, the City, and the Police Department. Although things are difficult with one ingress/egress during the 15 minute windows before and after school, efforts are being made to minimize the impact on driving. He stated that school gets out in a week and a half and school needs to open in the fall. Things need to move forward to make improvements. He is willing to meet with whomever is necessary to get things worked out. Alderwoman Miller believes things need to move forward so that the project is not held up. Alderwoman Baehne stated that this is an exciting time for the school district and the kids, and wishes her kids had these opportunities when they were in school. City Attorney McArdle suggested a motion be made but with stipulations stated in the motion to help ease some of the concerns by Council members. A motion was made by Alderwoman Miller and seconded by Alderwoman Baehne to approve the Conditional Use Permit for an Assembly Use and Variances for the property located at 4724 and 4716 W Crystal Lake Road (McHenry High School, West Campus), subject to the following conditions to be satisfied within 60 days: 1) the execution of an intergovernmental agreement regarding the timing and payment of costs for a future installation of a traffic light on Crystal Lake Road; 2) Confirmation to the satisfaction of the City Council of the adequacy of the storm drainage easement along Kensington to the south of the school; 3) the site constructed in substantial compliance with the site plans presented tonight with a revised date of May 20, 2019; 4) presentation of information by City staff relative to the northwest drainage agreement and a staff review of the west drainage agreement, pertaining to lots 1-39. Roll Call: Vote: 7-ayes: Alderwoman Miller, Alderwoman Baehne, Alderman Santi, Alderman Glab, Alderman Schaefer, Alderman Mihevc, Alderman Devine. 0-nays, 0-abstained. Motion carried. City Council Meeting Minutes May 20, 2019 Page 5 Discussion Only Items Jessup Manufacturing Tax Abatement City Administrator Morefield explained that Jessup Manufacturing wants to raise buildings and undergo a major expansion to their operations in McHenry. They are looking at a $6 million investment and increasing jobs. Part of the challenge is the costs to complete the project. A packet of information has been submitted along with a preliminary application for the tax abatement program. Mr. Jessup was present to discuss the scope of the project and answer any questions regarding the preliminary request. Mr. Jessup stated that the company has been in the community for a long time. They are located on Route 120 and also have a facility in Lake Bluff. A packet of information was handed out to Council members, and Mr. Jessup reviewed the materials. The business in McHenry is strong but running out of space. They are looking at options for expanding and would like to do something similar to what was done in Lake Bluff. One big hurdle towards expansion is the need for a water line extended to their location. When they were annexed by the City decades ago, a wate r line was never extended to their property. They are working on obtaining easements but the estimated cost for the water line alone is $223,000. There would be a lot of benefits to the community by expanding, including the redevelopment of that area, an increased water supply, reduction in truck congestion on Route 120, and the addition of jobs. It is estimated that property taxes would increase $172,000 per year. Jessup Manufacturing is asking for a five year abatement of 100% to help finance the investment. The taxes for the City of McHenry would account for about $7,000 of that $172,000 increase. If there is enough interest, the issue would be formally brought back before the Council for formal approval and before engaging other taxing bodies of the tax abatement request. Mayor Jett stated that Jessup would clean up the property in the area, fix the façade of the building, and make a nice entrance to the City of McHenry on the east side. The Council came to a consensus that a tax abatement agreement could be brought back to a meeting for consideration. Thelan Dredging Material Agreement City Attorney McArdle explained that the City has an agreement with Thelan for the disposal of the Fox waterway using City or contracted trucks. New pricing has been worked out in exchange for releasing Thelan from their letters of credit for improvements on R oute 31. An agreement with the details will be brought to the Council at the June 3rd meeting. Full Service Personal Care Establishment Liquor Licenses Chief Burke reported that there has been interest in personal care businesses in town to serve alcohol as part of a package for a service that customers are buying. Research has been done and shows that other towns have been issuing licenses similar to the one requested in McHenry. City Council Meeting Minutes May 20, 2019 Page 6 There was a discussion about the benefits of empowering and helping local businesses versus the possibility of more video gaming. Because the establishment would be serving the alcohol, the business has the opportunity and right to apply for video gaming. Although it was discussed that this is not the intent of a personal care establishment, some Council members feared that this could open the door to more video gaming. Chief Burke was instructed to do more research on the topic and come back to the Council with more information at a later date. Executive Session City Attorney McArdle did not want to adjourn into executive session, although he did say there were pending litigation issues at the Water Treatment Plant that would need to be discussed at the June 3rd Council meeting. Staff Reports City Administrator Morefield explained that Council members should be getting an email explaining how Dropbox will no longer be used for Council packets. Instructions will be forwarded on about how that information can be retrieved from the City’s Sharepoint intranet. Chief Burke reported that Sergeant Cox has announced his retirement for June 25th, which opens up a vacancy in the sergeant pool. The Council is invited to attend a small retirement ceremony. Mayor and City Council Comments Mayor Jett reported that committee assignments will be brought before the Council at the June 3rd meeting. Interest has also been received for the City Clerk position, and Mayor Jett and City Administrator Morefield will interview candidates in the near future. Alderman Glab reported that the State Senator has nothing submitted from McHenry for capital improvement projects that need funding. Interim Public Works Director Strange stated that a request went to the McHenry Council of Governments about a possible lift station project. He will sit down with Senator Wilcox and see if that is a funding possibility. Adjournment There being no further public business to discuss, a Motion was made by Alderman Santi and seconded by Alderwoman Miller to adjourn from the public meeting at 10:01 p.m. Roll call: Vote: 7-ayes: Alderman Santi, Alderwoman Miller, Alderman Glab, Alderman Schaefer, Alderwoman Baehne, Alderman Mihevc, Alderman Devine. 0-nays, 0-abstained. Motion carried. Respectfully submitted, Monte Johnson, Deputy Clerk City Council Meeting Minutes May 20, 2019 Page 7 Mayor Wayne Jett Deputy Clerk Monte Johnson _________________________________ _________________________________ McHenry, IL Expense Approval Register List of Bills Council Meeting &3-19 Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: AALTO, BRIAN AALTO, BRIAN INV0008129 06/03/2019 FUEL REIMB 100-22-5420 71,89 Vendor AALTO, BRIAN Total: 71.89 Vendor: ADAMS, KELSEY ADAMS, KELSEY KAMCH 06/03/2019 COUNCIL PHOTO 100-02-6940 140,00 Vendor ADAMS, KELSEY Total: 140.00 Vendor: BAKER & SON CO, PETER BAKER & SON CO, PETER 24405 06/03/2019 HMA SURF 100-33-6110 92,25 BAKER & SON CO, PETER 24532 06/03/2019 HMA SURF 100-33-6110 277698 Vendor BAKER & SON CO, PETER Total: 370623 Vendor: BANWART, NATE BANWART, NATE INV0008130 06/03/2019 UNIFORM REIMB 100-33-4510 94.83 Vendor BANWART, NATE Total: 94.83 Vendor: BENSON, GRAHAM BENSON, GRAHAM INV0008131 06/03/2019 IDROP WITHHELD TWICE 100-2200 20250 Vendor BENSON, GRAHAM Total: 202.50 Vendor: CENTEGRA OCCUPATIONAL HEALTH CENTEGRA OCCUPATIONAL 225481 06/03/2019 E BEIDELMAN, A DUCY, T 100-05-5110 127,00 CENTEGRA OCCUPATIONAL 225481 06/03/2019 E BEIDELMAN, A DUCY, T 100-05-5110 35,00 CENTEGRA OCCUPATIONAL 225481 06/03/2019 E BEIDELMAN, A DUCY, T 610-00-6940 65,00 CENTEGRA OCCUPATIONAL 225680 06/03/2019 BENITEZ-GARCIA, 100-05-5110 275,00 CENTEGRA OCCUPATIONAL 225680 06/03/2019 BENITEZ-GARCIA, 610-00-6940 260,00 Vendor CENTEGRA OCCUPATIONAL HEALTH Total: 762.00 Vendor: CONSTELLATION NEWENERGY INC CONSTELLATION NEWENERGY INV0008150 04/30/2019 UTIL 100-33-5520 417,75 CONSTELLATION NEWENERGY INV0008150 04/30/2019 UTIL 100-33-5520 47.25 Vendor CONSTELLATION NEWENERGY INC Total: 465.00 Vendor: CURRAN CONTRACTING COMPANY CURRAN CONTRACTING 16362 06/03/2019 SURF MIX 100-33-6110 16491 Vendor CURRAN CONTRACTING COMPANYTotal: 16.91 Vendor: FOX VALLEY FIRE & SAFETY FOX VALLEY FIRE & SAFETY IN00263460 04/30/2019 MUN RADIO 3/16/19-4/15/19 225-00-5110 1,339.00 Vendor FOX VALLEY FIRE & SAFETY Total: 1,339.00 Vendor: GALLS LLC GALLS LLC 012706195 04/30/2019 R LUMBER UNIFORM 100-22-4510 33,40 GALLS LLC 12370754 04/30/2019 E SEXTON UNIFORM 100-22-4510 85,53 GALLS LLC 12624549 04/30/2019 C NOYES UNIFORM 100-22-4510 40,54 GALLS LLC 12648904 04/30/2019 J ADAMS UNIFORM 100-22-4510 85,59 GALLS LLC 12649652 04/30/2019 R BEAUDOIN UNIFORM 100-22-4510 148.54 GALLS LLC 12681460 06/03/2019 R REWIAKO UNIFORM 100-22-4510 85,22 Vendor GALLS LLC Total: 47832 Vendor: HARPER, MICHAEL HARPER, MICHAEL INV0008132 06/03/2019 UNIFORM REIMB 100-33-4510 171,94 Vendor HARPER, MICHAEL Total: 171.94 Vendor: HLR HLR 20190736 04/30/2019 BV BIKE PATH PHASE 1 440-00-8900 11939,50 Vendor HLR Total: 1,939.50 Vendor: KINNEY, BRETT KINNEY, BRETT INV0008133 06/03/2019 MEAL REIMB 100-22-5420 16.00 Vendor KINNEY, BRETT Total: 16.00 5/29/2019 1:10:Z6 PM Expense Approval Register Packet: APPKTO1507 - 6-349 AP CKS Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: LACE, INC LACE, INC P19-04-127 06/03/2019 TEMP SIGN REFUND 100-00-3410 30,00 LACE, INC P19-04-128 06/03/2019 TEMP SIGN REF 100-00-3410 30.00 Vendor LACE, INC Total: 60.00 Vendor: LECHNER, TIM LECHNER, TIM INV0008134 06/03/2019 UNIFORM REIMB 510-35-4510 26.86 Vendor LECHNER, TIM Total: 26.86 Vendor: MARTIN, DOUG MARTIN, DOUG INV0008135 06/03/2019 TRAVEL/MEAL REIMB 100-06-5420 44.02 MARTIN, DOUG INV0008135 06/03/2019 TRAVEL/MEAL REIMB 100-06-5420 1.50 Vendor MARTIN, DOUG Total: 45.52 Vendor: MCANDREWS PC, THE LAW OFFICE OF PATRICK MCANDREWS PC, THE LAW INV0008136 06/03/2019 MAY 2019 100-01-5330 41000,00 Vendor MCANDREWS PC, THE LAW OFFICE OF PATRICK Total: 4,000.00 Vendor: MCHENRY COUNTY RECORDER OF DEEDS MCHENRY COUNTY RECORDER 2019521-14 06/03/2019 LAREDO 3RD QTR 620-00-5110 275.00 Vendor MCHENRY COUNTY RECORDER OF DEEDS Total: 275.00 Vendor: MCHENRY COUNTY MCHENRYCOUNTY INV0008137 05/28/2019 FEEGERS SUB SNOW PLOW 100-2200 11426,00 Vendor MCHENRY COUNTY Total: 1,426.00 Vendor: MICHEL, CHIP MICHEL, CHIP INV0008138 06/03/2019 MAILBOX DESCRIPTION 100-01-5110 73.94 Vendor MICHEL, CHIP Total: 73.94 Vendor: MUNICIPAL COLLECTION SERVICES INC MUNICIPAL COLLECTION 014293 06/03/2019 S HUMPHREY/E MEHANOVIC 100-04-5110 54.69 Vendor MUNICIPAL COLLECTION SERVICES INC Total: 54.69 Vendor: NICOR GAS NICOR GAS INV0008145 06/03/2019 UTIL 100-42-5510 975.07 NICOR GAS INV0008145 06/03/2019 UTIL 100-43-5510 144.37 NICOR GAS INV0008145 06/03/2019 UTIL 100-45-5510 11779,49 NICOR GAS INV0008145 06/03/2019 UTIL 100-46-5510 43.37 NICOR GAS INV0008145 06/03/2019 UTIL 400-00-5510 11584,69 NICOR GAS INV0008146 06/03/2019 UTIL 510-31-5510 1,924.56 NICOR GAS INV0008146 06/03/2019 UTIL 510-32-5510 41883,57 Vendor NICOR GAS Total: 11,335.12 Vendor: PLACEK, KASIA PLACEK, KASIA 237545 06/03/2019 PGM CXL 100-41-3637 60.00 Vendor PLACEK, KASIA Total: 60.00 Vendor: PRATHER, JAIMIE PRATHER, JAIMIE INV0008139 06/03/2019 MEAL REIMB 100-22-5420 16.00 Vendor PRATHER, JAIMIE Total: 16.00 Vendor: QUALLS, DYLAN QUALLS, DYLAN INV0008148 06/03/2019 BACKGROUND SEARCH REIMB 100-47-5430 38.00 Vendor QUALLS, DYLAN Total: 38.00 Vendor: RAQUEL, ELISE RAQUEL, ELISE INV0008140 06/03/2019 USA COACH CERT 100-47-5430 63,00 Vendor RAQUEL, ELISE Total: 63.00 Vendor: REICH, NIKKI REICH, NIKKI INV0008141 06/03/2019 RE ISSUE CKS 766408,767913 100-23-5420 37.40 Vendor REICH, NIKKI Total: 37.40 Vendor: SCHWEDA, SCOTT SCHWEDA, SCOTT INV0008144 06/03/2019 UNIFORM REIMB 100-33-4510 103.30 SCHWEDA, SCOTT INV0008147 06/03/2019 UNIFORM REIMB 100-33-4510 106.63 Vendor SCHWEDA, SCOTT Total: 209.93 5/Z9/2019 1;10:26 PM Expense Approval Register Packet: APPKTO1507 - 6-3-19 AP CKS Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: SEMROW JR, HARRY H SEMROW JR, HARRY H APRIL2019 04/30/2019 LGLSVS ADJ MTHLY 100-03-5110 56.25 SEMROW JR, HARRY H APRIL2019 04/30/2019 LGLSVS ADJ MTHLY 100-22-5110 506o25 Vendor SEMROW JR, HARRY H Total: 562.50 Vendor: SYNCB/AMAZON SYNCB/AMAZON INV0008142 04/30/2019 AMAZON MTHLY 100-01-6110 86.22 SYNCB/AMAZON INV0008142 04/30/2019 AMAZON MTHLY 100-44-6110 8188 SYNCB/AMAZON INV0008142 04/30/2019 AMAZON MTHLY 100-45-6110 -12,98 SYNCB/AMAZON INV0008142 04/30/2019 AMAZON MTHLY 100-46-6110 106,58 SYNCB/AMAZON INV0008142 04/30/2019 AMAZON MTHLY 100-47-6110 28687 SYNCB/AMAZON INV0008142 04/30/2019 AMAZON MTHLY 400-00-6110 315.56 SYNCB/AMAZON INV0008142 04/30/2019 AMAZON MTHLY 400-00-6210 54,31 SYNCB/AMAZON INV0008143 04/30/2019 PDAMAZON MTHLY 100-22-5370 39,99 SYNCB/AMAZON INV0008143 04/30/2019 PDAMAZON MTHLY 100-22-6210 100.88 SYNCB/AMAZON INV0008143 04/30/2019 PDAMAZON MTHLY 100-22-6270 44126 Vendor SYNCB/AMAZON Total: 1,245.57 Vendor: TECHNOLOGY MANAGEMENT REV FUND TECHNOLOGY MANAGEMENT T1930927 06/03/2019 MTHLY 620-00-5110 10.00 Vendor TECHNOLOGY MANAGEMENT REV FUND Total: 10.00 Vendor: THEODORE POLYGRAPH SERV THEODORE POLYGRAPH SERV 6610 04/30/2019 J STAINES, T SCHOENY 100-21-5110 350.00 Vendor THEODORE POLYGRAPH SERV Total: 350.00 Vendor: TONY'S FAMILY TAILOR SHOP TONY'S FAMILY TAILOR SHOP 047800 04/30/2019 RPARDUE 100-22-4510 29,00 TONY'S FAMILY TAILOR SHOP 056592 04/30/2019 J FOLEY UNIFORM 100-22-4510 9.50 Vendor TONY'S FAMILY TAILOR SHOP Total: 38.50 Vendor: UMB BANK NA UMB BANK NA 655774 06/03/2019 FEES 300-00-7300 318,00 Vendor UMB BANK NA Total: 318.00 Vendor: UPS UPS 60X485209 06/03/2019 SHIPPING 100-22-5310 21,06 Vendor UPS Total: 21.06 Vendor: ZUKOWSKI ROGERS FLOOD & WARDLE ZUKOWSKI ROGERS FLOOD& 137250 04/30/2019 APRIL 2019 TRAFFIC 100-01-5230 6,334.00 Vendor ZUKOWSKI ROGERS FLOOD & WARDLE Total: 6,334.00 Vendor: ZUNKEL, SANDY ZUNKEL, SANDY INV0008149 06/03/2019 100475430 100-47-5430 63,00 Vendor ZUNKEL, SANDY Total: 63.00 Grand Total: 32,732.71 5/29/2019 1:10:26 PM Expense Approval Register Packet: APIP 01507 - 6-3-19 AP CKS Fund Summary Fund Expense Amount 100 - GENERAL FUND 19,736,66 225-ALARM BOARD FUND 11339,00 300 - DEBT SERVICE-1997A FUND 318.00 400- RECREATION CENTER FUND 11954,56 440 -CAPITAL IMPROVEMENTS FUND 11939,50 510- WATER/SEWER FUND 6,834.99 610 - RISK MANAGEMENT FUND 325,00 620 - INFORMATION TECHNOLOGY FUND 285,00 Grand Total: 32,73231 McHenry, IL Vendor Name Payable Number Post Date Vendor: ADAMS ENTERPRISES INC, R A ADAMS ENTERPRISES INC, RA S011012 06/03/2019 Vendor: ADAMS STEEL SERVICE &SUPPLY, INC ADAMS STEEL SERVICE & 356429 06/03/2019 Vendor: AQUA PURE ENTERPRISES INC AQUA PURE ENTERPRISES INC 118988 06/03/2019 Vendor: ASSOCIATED ELECTRICAL CONTRACTORS ASSOCIATED ELECTRICAL 35006474 04/30/2019 Vendor: AT&T LONG DISTANCE AT&T LONG DISTANCE 6201920030 06/03/2019 Vendor: AT&T AT&T 6201920023 06/03/2019 Vendor: AT&T AT&T 6201920022 06/03/2019 Vendor: BARTER &WOODMAN BARTER &WOODMAN 0206200 06/03/2019 Vendor: BUSS FORD SALES BUSS FORD SALES 5034194 06/03/2019 Vendor: CABAY &COMPANY INC CABAY &COMPANY INC 61028 06/03/2019 CABAY & COMPANY INC 61028 06/03/2019 Vendor: CDW GOVERNMENT INC CDW GOVERNMENT INC SGH4901 COW GOVERNMENT INC SKW6120 Expense Approval Register #2 List of Bills Council Meeting &3-19 Description (Item) Account Number Amount 478 100-33-5370 764.44 Vendor ADAMS ENTERPRISES INC, R A Total: 764.44 oxygen tank shop 100-33-6110 40.65 Vendor ADAMS STEEL SERVICE & SUPPLY, INC Total: 40.65 Chlorine 100-42-6110 31153,31 Vendor AQUA PURE ENTERPRISES INC Total: 3,153.31 Contractual Electrical Repairs 100-45-5110 21682,99 Vendor ASSOCIATED ELECTRICAL CONTRACTORS Total: 2,682.99 LONG DIST 620-00-5320 4.83 Vendor AT&T LONG DISTANCE Total: 4.83 8150385-9652 652 6 620-00-5320 215.84 Vendor AT&T Total: 215.84 8310006572828 620-00-5110 2,246.90 Vendor AT&T Total: 2,24&90 Storm GIS ]voice 0206200 100-33-5110 762.50 Vendor BAXTER & WOODMAN Total: 762.50 brake light 510-31-5370 130.94 Vendor BUSS FORD SALES Total: 130.94 custodial supplies 400-00-6111 517.12 custodial supplies 400-40-6110 348.00 Vendor CABAY & COMPANY INC Total: 865.12 06/03/2019 Microsoft 0365 Licenses 620-00-5110 458.99 06/03/2019 Laptop, docking station, 620-00-6270 1,565.42 Vendor CDW GOVERNMENT INC Total: 2,024.41 Vendor: CINTAS CINTAS 5013728050 06/03/2019 Vendor: CONSERV FS CONSERV FS 65075945 06/03/2019 CONSERV FS 65076402 06/03/2019 Vendor: GOONEY COMPANY, FRANK COONEYCOMPANY, FRANK 69560 04/30/2019 Vendor: CURRAN CONTRACTING COMPANY CURRAN CONTRACTING 16415 06/03/2019 CURRAN CONTRACTING 16415A 06/03/2019 First Aid Kit 100-45-5110 98.30 Vendor CINTAS Total: 98.30 SportsField Vendor: CURRAN CONTRACTING COMPANY CURRAN CONTRACTING 16415 06/03/2019 CURRAN CONTRACTING 16415A 06/03/2019 First Aid Kit 100-45-5110 98.30 Vendor CINTAS Total: 98.30 SportsField Supplies 100-45-6110 257.25 SportsField Supplies inn -45-6110 695.20 Vendor CONSERV FS Total: 952.45 replacement gides for banquet 400-00-6141 60.00 Vendor GOONEY COMPANY, FRANK Total: 60.00 N50 surface. vendor ticket # 100-33-6110 28.93 27.15 5/29/2019 1:17:38 PM Expense Approval Register Packet: APPKT01508 - 6-349 RE Ci INV Vendor Name Payable Number Post Date Description (Item) Account Number Amount CURRAN CONTRACTING 16415B 06/03/2019 commercial surface-C-Rap. 100-33-6110 50.29 Vendor CURRAN CONTRACTING COMPANYTotal: 106.37 Vendor: DIRECT FITNESS SOLUTIONS DIRECT FITNESS SOLUTIONS 0544541-IN 06/03/2019 tube for precor guide rods 400-40-6110 56.48 Vendor DIRECT FITNESS SOLUTIONS Total: 56.48 Vendor: DOCUMENT IMAGING SERVICES, LLC DOCUMENT IMAGING 1414 06/03/2019 TONER 620-00-6210 332.99 Vendor DOCUMENT IMAGING SERVICES, LLC Total: 332.99 Vendor: DREISILKER ELECTRIC MOTORS INC DREISILKER ELECTRIC MOTORS 1121159 06/03/2019 Transformer Oil 510-32-5380 474.00 Vendor DREISILKER ELECTRIC MOTORS INC Total: 474.00 Vendor: DURA WAX COMPANY INC, THE DURA WAX COMPANY INC, THE 400557 06/03/2019 CITYWIDE CLEANING SUPPLIES 100-01-6110 336.38 Vendor DURA WAX COMPANY INC, THE Total: 336.38 Vendor: ED'S RENTAL & SALES INC ED'S RENTAL & SALES INC 260336-1 06/03/2019 propane 100-33-5370 55.82 Vendor ED'S RENTAL & SALES INC Total: 55.82 Vendor: ENVIRONMENTAL RESOURCE ASSOCIATES ENVIRONMENTAL RESOURCE 1-6ZP1MU 06/03/2019 Quality control test 510-32-6110 160.52 Vendor ENVIRONMENTAL RESOURCE ASSOCIATES Total: 160.52 Vendor: FINIS, INC FINIS, INC 1219-353NT 06/03/2019 Swim Team Equipment 100-42-6110 1,056AI Vendor FINIS, INC Total: 1,056.41 Vendor: FISCHER BROS FRESH FISCHER BROS FRESH 11467 06/03/2019 concrete wall at 3200 CMR 510-35-6110 370.75 Vendor FISCHER BROS FRESH Total: 370.75 Vendor: GALLS LLC GALLS LLC 12625477 06/03/2019 UNIFORM ORDER - FOLEY 100-22-4510 29.61 GALLS LLC 12637355 06/03/2019 UNIFORM ORDER -CRUZ 100-22-4510 50A0 GALLS LLC 12637510 06/03/2019 UNIFORM ORDER - CRUZ 100-22-4510 115.07 GALLS LLC 12646229 06/03/2019 UNIFORM ORDER -CRUZ 100-22-4510 142.19 Vendor GALLS LLC Total: 337.27 Vendor: GLOBAL EQUIPMENT COMPANY GLOBAL EQUIPMENT 114355565 06/03/2019 Blue Marking Paint- 510-31-6110 154.17 Vendor GLOBAL EQUIPMENT COMPANY Total: 154.17 Vendor: GOLD MEDAL PRODUCTS GOLD MEDAL PRODUCTS 354754 06/03/2019 Conc - Food 100-44-6110 350A8 Vendor GOLD MEDAL PRODUCTS Total: 350.18 Vendor: GOPHER GOPHER 9603435 06/03/2019 Tube Cart for Pool 100-42-6110 267.93 Vendor GOPHER Total: 267.93 Vendor: HALOGEN SUPPLY COMPANY HALOGEN SUPPLY COMPANY 533877 06/03/2019 DE & Pool Filters 100-42-6110 1,708.00 HALOGEN SUPPLY COMPANY 534267 06/03/2019 Pool Chemical Testing Kit 100-42-6110 539.02 Vendor HALOGEN SUPPLY COMPANY Total: 2,247.02 Vendor: HAWKINS INC HAWKINS INC 4494228 06/03/2019 Chemical Delivery 5/7/19 510-32-6110 6,199.80 HAWKINS INC 4495118 06/03/2019 Chemical Delivery05/06/19 510-31-6110 51553,51 HAWKINS INC 4495310 06/03/2019 Chemical Delivery 510-32-6110 11465,20 HAWKINS INC 4497744 06/03/2019 Chemical Delivery 510-32-6110 5,128.20 Vendor HAWKINS INC Total: 18,346.71 Vendor: HOT SHOTS SPORTS HOT SHOTS SPORTS 1231 06/03/2019 Hot Shots Sports Spring 1 100-47-5110 1/326450 Vendor HOT SHOTS SPORTS Total: 1/326950 5/29/2019 1:17:38 PM Expense Approval Register Packet: APPKT01508 - 6-3-19 RE CT INV Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: IWPIPE TECHNOLOGY COMPANY INC IN -PIPE TECHNOLOGY 1522 06/03/2019 Monthly service fee 510-32-5110 7,750.00 Vendor IN -PIPE TECHNOLOGY COMPANY INC Total: 7,750.00 Vendor: INTERSTATE BILLING SERVICE INC INTERSTATE BILLING SERVICE 3014974154 06/03/2019 exhaust parts 100-33-5370 97.88 INTERSTATE BILLING SERVICE 3014974170 06/03/2019 802 510-35-5370 166.80 INTERSTATE BILLING SERVICE 3014991824 06/03/2019 414 100-33-5370 281.32 Vendor INTERSTATE BILLING SERVICE INC Total: 546.00 Vendor: JENSEN, TED JENSEN, TED 03482 06/03/2019 Boone Lagoon Lift -New Pump 510-32-5380 11505,71 Vendor JENSEN, TED Total: 11505.71 Vendor: KIMBALL MIDWEST KIMBALL MIDWEST 7133618 06/03/2019 stock 100-33-6115 221.59 Vendor KIMBALL MIDWESTTotal: 221.59 Vendor: LAFARGE NORTH AMERICA LAFARGE NORTH AMERICA 710472414 06/03/2019 CM-11 Wash Stone 167547040 510-35-6110 131.52 LAFARGE NORTH AMERICA 710472414A 06/03/2019 027 FM-2 SAND 510-35-6110 61.76 LAFARGE NORTH AMERICA 710472414B 06/03/2019 CM-6 virgin grade 9 167547093 510-35-6110 109.35 LAFARGE NORTH AMERICA 710478916 06/03/2019 CM-11 wash stone 167547354 510-35-6110 119.68 LAFARGE NORTH AMERICA 710478916A 06/03/2019 FM-2 sand 167547425 510-35-6110 63.36 LAFARGE NORTH AMERICA 710485696 06/03/2019 Masonry Sand 510-32-6110 32.55 LAFARGE NORTH AMERICA 710520320 06/03/2019 CM-11 wash stone 167548932 510-35-6110 118.88 LAFARGE NORTH AMERICA 710520320A 06/03/2019 CM-11 wash stone 167548965 510-35-6110 112.00 LAFARGE NORTH AMERICA 710526735 06/03/2019 CM-6 virgin grade 9167549342 100-33-6110 135.81 LAFARGE NORTH AMERICA 710526735A 06/03/2019 CM-6 virgin grade 9167549344 100-33-6110 136.89 Vendor LAFARGE NORTH AMERICA Total: 1,021080 Vendor: LAI LTD LAI LTD 19-16390 06/03/2019 Kaeser Blower Belts -Post 510-32-5375 282.96 Vendor LAI LTD Total: 282.96 Vendor: LANDSCAPES BY GARY WEISS, INC LANDSCAPES BY GARY WEISS, 2222 06/03/2019 Dredging Silt Fence Order 1 100-01-8900 31531.00 Vendor LANDSCAPES BY GARY WEISS, INC Total: 3,531.00 Vendor: LOU'S GLOVES, INC LOU'S GLOVES, INC 028595 06/03/2019 Rubber Gloves 510-32-6110 228.00 Vendor LOU'S GLOVES, INC Total: 228.00 Vendor: MARKS TREE SERVICE & SNOW PLOWING CORP MARKS TREE SERVICE & SNOW STSMH147 06/03/2019 Tree Removals under power 100-33-6950 41500.00 MARKS TREE SERVICE & SNOW STSMH148 06/03/2019 Tree Removal 100-33-6950 21600.00 Vendor MARKS TREE SERVICE & SNOW PLOWING CORP Total: 7,100.00 Vendor: MCCANN INDUSTRIES INC MCCANN INDUSTRIES INC P02522 06/03/2019 Concrete Supplies 100-33-6110 548.74 Vendor MCCANN INDUSTRIES INC Total: 548.74 Vendor: MID AMERICAN WATER OF WAUCONDA INC MID AMERICAN WATER OF 208714W 06/03/2019 SDR35 45sBend 510-35-6110 148.00 Vendor MID AMERICAN WATER OF WAUCONDA INC Total: 148.00 Vendor: MIDWEST HOSE AND FITTINGS INC MIDWEST HOSE AND FITTINGS M25662 06/03/2019 Jack hammer hose 510-35-6110 148.98 Vendor MIDWEST HOSE AND FITTINGS INC Total: 148.98 Vendor: MINUTEMAN PRESS OF MCH MINUTEMAN PRESS OF MCH 92382 06/03/2019 REDO ANNUAL REPORT 100-22-6210 20.80 Vendor MINUTEMAN PRESS OF MCH Total: 20.80 Vendor: MOTOROLA SOLUTIONS - STARCOM21 NETWORK MOTOROLA SOLUTIONS - 42174412019 06/03/2019 STARCOM21 MONTHLY 100-22-5320 21453,00 MOTOROLA SOLUTIONS - 8280747265 06/03/2019 BATTERIES 100-22-6210 492.75 Vendor MOTOROLA SOLUTIONS - STARCOM21 NETWORK Total: 2,945.75 5/29/2019 1:17:3H PM Expense Approval Register Packet: APPKTO1508 - 6-349 RE Ci INV Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: NORTH EAST MULTI -REGIONAL TRAINING INC NORTHEAST MULTI -REGIONAL 251802 06/03/2019 ANNUAL MEMBERSHIP 100-23-5430 11995,00 Vendor NORTH EAST MULTI -REGIONAL TRAINING INCTotal: 17995000 Vendor: NORTHERN ILLINOIS POLICE ALARM SYSTEM NORTHERN ILLINOIS POLICE 13008 06/03/2019 ANNUAL NIPAS MEETING 100-22-5110 81.00 Vendor NORTHERN ILLINOIS POLICE ALARM SYSTEM Total: 81.00 Vendor: NORTHWEST TRUCKS INC NORTHWESTTRUCKS INC 0113539916.02 06/03/2019 802 510-35-5370 800.86 Vendor NORTHWEST TRUCKS INC Total: 800.86 Vendor: OLSEN SAFETY EQUIPMENT CORP OLSEN SAFETY EQUIPMENT 0365830-IN 06/03/2019 rain suites 100-33-6290 592.50 Vendor OLSEN SAFETY EQUIPMENT CORP Total: 592.50 Vendor: PETROCHOICE LLC PETROCHOICE LLC 10929098 06/03/2019 FUEL BILL 100-03-6250 128.25 PETROCHOICE LLC 10935323 06/03/2019 FUEL BILL 100-03-6250 42.28 PETROCHOICE LLC 10935328 06/03/2019 FUEL 10935328 100-22-6250 11559.24 PETROCHOICE LLC 10943166 06/03/2019 FUEL-10943166 510-35-6250 209.11 PETROCHOICE LLC 10943180 06/03/2019 FUEL BILL 100-03-6250 133.21 PETROCHOICE LLC 10943181 06/03/2019 FUEL-10943181 510-32-6250 708.55 PETROCHOICE LLC 10943182 06/03/2019 FUEL- 10943182 510-31-6250 176.07 PETROCHOICE LLC 10943184 06/03/2019 FUEL-10943184 100-33-6250 577.20 PETROCHOICE LLC 10952535 06/03/2019 fuel 10952535 510-35-6250 71.94 PETROCHOICE LLC 10952551 06/03/2019 fuel 10952551 510-32-6250 409.64 PETROCHOICE LLC 10952552 06/03/2019 fuel 10952552 510-31-6250 132.05 PETROCHOICE LLC 10952554 06/03/2019 fuel 10952554 100-33-6250 568.52 Vendor PETROCHOICE LLC Total: 4,716.06 Vendor: PORTER LEE CORPORATION PORTER LEE CORPORATION 22204 06/03/2019 EVIDENCE SUPPLIES 100-22-6210 269.35 Vendor PORTER LEE CORPORATION Total: 269.35 Vendor: PRECISION PAVEMENT MARKINGS, INC PRECISION PAVEMENT 2928 06/03/2019 road paint striping 100-33-5110 21092.03 Vendor PRECISION PAVEMENT MARKINGS, INCTotal: 2,092.03 Vendor: PROSHRED SECURITY PROSHRED SECURITY 990040690 06/03/2019 MONTHLY SHREDDING 100-22-5110 53.00 Vendor PROSHRED SECURITY Total: 53.00 Vendor: QUALITY TIRE SERVICE QUALITY TIRE SERVICE 54119 06/03/2019 tire repair 446 100-33-5370 81.31 QUALITY TIRE SERVICE 54200 06/03/2019 635 510-32-5370 40.08 Vendor QUALITY TIRE SERVICE Total: 121.39 Vendor: RADAR MAN INC RADAR MAN INC 4231 06/03/2019 RADAR REPAIRS 100-22-6110 590.21 Vendor RADAR MAN INCTotal: 590.21 Vendor: REICHE'S PLUMBING SEWER RODDING CORP REICHE'S PLUMBING SEWER PWANM576 06/03/2019 urinal drain repair PW building 100-33-5115 175.00 REICHE'S PLUMBING SEWER WTRMP782 06/03/2019 1733 Pine Dr- Plumbing repairs 510-31-5110 350.00 Vendor REICHE'S PLUMBING SEWER RODDING CORP Total: 525.00 Vendor: SENCOMMUNICATIONS INC SENCOMMUNICATIONS INC IN0944797 06/03/2019 HEADSETS - DISPATCH 100-23-6110 122.00 Vendor SENCOMM U N [CATIONS INCTotal: 122.00 Vendor: THERMA-STOR LLC THERMA-STOR LLC WTRMP783 Vendor: TONY'S FAMILY TAILOR SHOP TONY'S FAMILY TAILOR SHOP 34357 TONY'SFAMILYTAILORSHOP 34359 06/03/2019 WTP Dehunidifier- 510-31-6110 06/03/2019 UNIFORM ALTERATIONS- 100-22-4510 06/03/2019 UNIFORM ALTERATIONS - POPP 100-22-4510 VendorTONY'S FAMILYTAILOR SHOP Total: 31618.04 9.50 9.50 19.00 5/29/Z019 1:17:38 PM Expense Approval Register Packet: APPKTO1508 - 6-3.19 RECT INV Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: US BANK US BANK 385411806 06/03/2019 PW PRINTER 620-00-6210 397.72 Vendor US BANK Total: 397.72 Grand Total: 81,974.67 5/29/2019 1:17:3H PM Expense Approval Register Packet: APPIC1701508 - 6-349 RE CT INV Fund Summary Fund 100-GENERAL FUND 400 - RECREATION CENTER FUND 510- WATER/SEWER FUND 620- INFORMATION TECHNOLOGY FUND 5/29/2019 1;17:38 PM Grand Total Expense Amount 38,637,40 981,60 37,132*98 51222*69 81,974.67 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.ci.mchenry.il.us AGENDA SUPPLEMENT TO: Mayor and City Council FOR: June 3, 2019 Regular City Council Meeting FROM: Douglas Martin, Director of Economic Development RE: Conditional Use Permit to allow outside storage of vehicles in conjunction with a towing operation at 4564 Bull Valley Road ATT: 1. Location Map 2. Planning and Zoning Commission Minutes dated April 17, 2019 3. Ordinance approving a conditional use permit to allow outside storage of vehicles in conjunction with a towing operation at 4564 Bull Valley Road 4. Application Packet AGENDA ITEM SUMMARY: Council is being asked to consider a Conditional Use Permit to allow outside storage of vehicles in conjunction with a towing operation at 4564 Bull Valley Road. BACKGROUND: In 2002, the City Council unanimously approved a request for a conditional use permit to allow outside storage of vehicles and trailers, as well as a variance to the minimum lot width required in the I-1 zoning district for the property located at 4172 Bull Valley Road, immediately to the east of the subject property. In September 2008, Cornerstone requested an expansion to the existing conditional use permit to include 4564 Bull Valley Road, subject property, and permission to allow a recycling/handling center with outside storage of recycling materials contained in bins or box containers. The City Council approved the request (6-1) to allow the expansion of the existing conditional use permit and approval for a recycling center including outside storage of bin containers and roll-off boxes for a five-year term. Since that time, Cornerstone Material has vacated the site. The Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.ci.mchenry.il.us conditional use permit approved in 2008 has automatically expired due to inactivity; however, the lot width variance is not automatically revoked and remains with the property. In 2017, the owner of the subject property received a conditional use permit for the outside storage of recreational vehicles and boats in conjunction with a contractor’s office. The current applicant is requesting a conditional use permit to allow outside storage of vehicles in conjunction with a towing operation at 4564 Bull Valley Road. ANALYSIS: In accordance with the zoning ordinance, a conditional use permit is required for outside storage associated with any permitted or conditional use allowed in the I-1 Industrial zoning district. In this case, the applicant is proposing an office and outdoor storage of vehicles, other than just recreational vehicles and boats. The proposed location of the outdoor storage is far from view of Bull Valley Road and is unlikely to detract from the surrounding area. All of the surrounding properties are zoned industrial with the exception of Northwestern-Centegra Hospital south of Bull Valley Road. With that being said the outside storage must be kept somewhat neat and orderly. Boats and other vehicles cannot be stored anywhere on the property. There must be designated areas on the site for which they are stored. In 2002 and 2008 a conditional use permit approved for Cornerstone Material Recovery was approved with seven and five-year time limitations respectively. While Cornerstone substantially cleaned-up the property, the property has since become a dumping ground. The applicant has done quite a bit to clean up the site since purchasing it. Staff is aware there are long-range plans for this general area included in the comprehensive plan, which go beyond the scope of this proposal. With the hospital being across the road and vacant land to the north, west, and east, there are many development and redevelopment alternatives possible in the future. The time limitation placed on the conditional use permit, for Cornerstone Material Recovery, was in anticipation of redevelopment of this property along with the surrounding properties potentially for commercial and/or residential uses. This has not come to fruition as of yet. Staff is not proposing a time limitation associated with the approval of the applicant’s request. Economic conditions remain uncertain and staff believes a time constraint would be unfair and the property may remain vacant indefinitely. The applicant has a viable business and when the property does redevelop in the future market forces will dictate whether the applicant remains on the subject property or decides to relocate. Staff believes the proposed use will provide a number of benefits to the City including: Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.ci.mchenry.il.us x An additional viable business locating in the City of McHenry; x Cleaning and removal of trash and debris on subject property, as well as ongoing maintenance; x Potential increase in assessed valuation, along with surrounding properties, which may at some point encourage developers to assess development/redevelopment options. Unless a new business locates on the subject property staff believes the area will remain stagnant and an eyesore. The applicant owns a significant piece of property and in the future, this could play a key role in redevelopment of this area. Due to the isolated location of the site and the greater portion of the property is not visible to the public. Future roadway improvements are planned along Bull Valley Road west of Illinois Route 31 at some point in the future, including consolidation of access points and roadway widening, which will alter the dynamics of the area. At that time, it may be more plausible for new development/redevelopment to occur. Staff does not believe that this area will necessarily remain industrial in nature but at the same time does not want to prevent a viable business from locating there. PLANNING AND ZONING COMMISSION: The Planning and Zoning Commission unanimously recommended approval of a conditional use permit to allow outside storage of vehicles in conjunction with a towing operation for the property located at 4564 Bull Valley Road, subject to the following conditions: x The property shall be cleared of all debris, including any inoperable vehicles, trailers, etc. and anything unrelated to the request being considered; x The property keeps a neat and orderly appearance; x Boats and recreational vehicles must be stored in one area of property-not all over the property; x Vehicles must be stored in the area indicated on the site plan; x Applicant work with City Staff in locating signage for business off of Bull Valley Road, not impeding access or site lines to other businesses, customers or vehicles traversing the roadway; x Provide minimal security lighting/cameras on-site. Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.ci.mchenry.il.us RECOMMENDATION: Therefore, if the City Council concurs, it is recommended that a motion be made to approve the attached ordinance granting a conditional use permit to allow outside storage of vehicles in conjunction with a towing operation for the property located at 4564 Bull Valley Road, subject to the following conditions: x The property shall be cleared of all debris, including any inoperable vehicles, trailers, etc. and anything unrelated to the request being considered; x The property keeps a neat and orderly appearance; x Boats and recreational vehicles must be stored in one area of property-not all over the property; x Vehicles must be stored in the area indicated on the site plan; x Applicant work with City Staff in locating signage for business off of Bull Valley Road, not impeding access or site lines to other businesses, customers or vehicles traversing the roadway; x Provide minimal security lighting/cameras on-site. Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.ci.mchenry.il.us Location Map: Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.ci.mchenry.il.us Public Hearing: DN N DIRTY LLC File No. Z-945 4564 Bull Valley Road Conditional use permit to allow outside storage of vehicles in conjunction with a towing operation Chairman Strach called the Public Hearing to order at 7:33 p.m. regarding File No. Z-945 an application for a conditional use permit to allow outside storage of vehicles in conjunction with a towing operation for the property located at 4564 Bull Valley Road. Chairman Strach stated Notice of the Public Hearing was published in the Northwest Herald on March 26, 2019. Notices were mailed to all abutting property owners of record as required by ordinance. The subject property was posted. A Certificate of Publication and Affidavit of Compliance with notice requirements are on file in the City Clerk’s Office. In attendance were Krzysztof Lenart, 1524 River Terrace Dr. Johnsburg IL 60051 and Brandon Lenart, of the same address, who were sworn in by Chairman Strach. Krzysztof Lenart stated they are seeking to establish a tow yard in McHenry at 4564 Bull Valley Road with outside storage. They currently tow for McHenry County Sheriff’s Department and would like to establish a relationship for towing with the McHenry Police Department. They need to get approval for storing vehicles outside in conjunction with a small towing office that will be operated out of one of the buildings at 4564 Bull Valley Road. Mr. Lenart further stated they will not operate as a junk yard or repair shop but will strictly be doing towing. Director of Economic Development stated in 2017 the owner of the subject property received a conditional use permit for the outside storage of recreational vehicles and boats in conjunction with a contractor’s office. The current applicant is requesting a conditional use permit to allow outside storage of vehicles in conjunction with a towing operation at 4564 Bull Valley Road. A conditional use permit is required for outside storage associated with any permitted or conditional use allowed in the I-1 Industrial zoning district. In this case, the applicant is proposing an office and outdoor storage of vehicles, other than just recreational vehicles and boats. The proposed location of the outdoor storage is far from view of Bull Valley Road and is Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.ci.mchenry.il.us unlikely to detract from the surrounding area. All of the surrounding properties are zoned industrial with the exception of Northwestern-Centegra Hospital south of Bull Valley Road. Director Martin stated Staff is aware there are long-range plans for this general area included in the comprehensive plan, which go beyond the scope of this proposal. With the hospital being across the road and vacant land to the north, west, and east, there are many development and redevelopment alternatives possible in the future. The time limitation placed on the previous conditional use permit was in anticipation of redevelopment of this property along with the surrounding properties, potentially, for commercial and/or residential uses. This has not come to fruition as of yet. Staff is not proposing a time limitation associated with the approval of the applicant’s request. Economic conditions remain uncertain and staff believes a time constraint would be unfair and the property may remain vacant indefinitely. Staff believes the proposed use will provide benefits to the City including an additional viable business locating in the City of McHenry; Cleaning and removal of trash and debris on subject property, as well as ongoing maintenance; and potential increase in assessed valuation, along with surrounding properties, which may at some point encourage developers to assess development/redevelopment options. Unless a new business locates on the subject property, staff believes the area will remain stagnant and an eyesore. The applicant owns a significant piece of property and in the future this could play a key role in redevelopment of this area. Due to the isolated location of the site the greater portion of the property is not visible to the public. Future roadway improvements are planned along Bull Valley Road west of Illinois Route 31 at some point in the future, including consolidation of access points and roadway widening, which will alter the dynamics of the area. At that time, it may be more plausible for new development/redevelopment to occur. Staff does not believe that this area will necessarily remain industrial in nature but at the same time does not want to prevent a viable business from locating there. Director of Economic Development Martin stated Staff recommends approval of a conditional use permit to allow the outdoor storage of vehicles on the subject property, in conjunction with a towing operation subject to the conditions presented and Staff believes that the criteria in table 31 of the zoning ordinance have been met. Chairman Strach invited questions and/or comments from the Commission. Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.ci.mchenry.il.us Commissioner Gurda recused himself from the hearing. Commissioner Walsh asked what type of security will be in place for the tow yard. Mr. Lenart stated there are gates and chain link fence as well as cameras. Mr. Brian Blanchard, 6008 Tomlinson Dr., McHenry, IL was sworn in by Chairman Strach. Mr. Blanchard stated he is the property owner and he confirmed there are already cameras on the property. In response to a question posed by the commission, Mr. Blanchard stated there is gas in the boats at times but the majority of the time they are stored they are winterized and have no gas in them. In the summer there will be some RV’s and other recreational vehicles stored that may have gas in them but they are kept clean and monitored for leakage. Commissioner Miller inquired what type of vehicles will be stored. Mr. Lenart responded it is mostly crash cars and cars to be impounded. In response to Commissioner Miller’s concern about the vehicles leaking on the property, Mr. Lenart added they use oil dry and fabrics to absorb all leaking liquids. Commissioner Sobotta asked what the typical length of time is for vehicle storage. Mr. Brandon Lenart stated it depends upon the vehicle but should never be longer than 3-4 months. Mr. Krzysztof Lenart stated it is typically no longer than 30 days. Chairman Strach opened the floor to questions and comments from the audience. There was nobody in attendance who wished to address the Commission regarding this matter. Chairman Strach closed the public comment portion of the hearing 7:42 pm. Motion by Doherty seconded by Mi ller to recommend to the City Council with regard to File No. Z-945 an application for a conditional use permit to allow outs ide storage of vehicles in conjunction with a towing operation for the property located at 4564 Bull Valley Road, subject to the following conditions, as presented: x The property shall be cleared of all debris, including any inoperable vehicles, trailers, etc. and anything unrelated to the request being considered; x The property keeps a neat and orderly appearance; x Boats and recreational vehicles must be stored in one area of property-not all over the property; x Vehicles must be stored in the area indicated on the site plan; Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.ci.mchenry.il.us x Applicant work with City Staff in locating signage for business off of Bull Valley Road, not impeding access or site lines to other businesses, customers or vehicles traversing the roadway; x Provide minimal security lighting/cameras on-site. And Staff finds that the criteria in table 31 of the zoning ordinance have been met. Voting Aye: Doherty, Miller, Sobotta, Strach, and Walsh. Voting Nay: None. Not Voting: None. Abstaining: None. Absent: Thacker. Motion carried 5-0 Chairman Strach closed the Public Hearing regarding File No. Z-945 at 7:45 pm. Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.ci.mchenry.il.us ORDINANCE NO 19- AN ORDINANCE GRANTING A CONDITIONAL USE PERMIT TO ALLOW OUTSIDE STORAGE OF VEHICLES IN CONJUNCTION WITH A TOWING OPERATION FOR THE PROPERTY LOCATED AT 4564 BULL VALLEY ROAD IN THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City’s home rule powers and functions as granted in the Constitution of the State of Illinois; and WHEREAS, a petition has been filed by DN N DRTY, LLC, 4564 Bull Valley Road, McHenry, IL 60050 (“Applicant”), requesting a Conditional Use Permit to allow outside storage of vehicles in conjunction with a towing operation at 4564 Bull Valley Road . The property is legally described on Exhibit “A” attached hereto and incorporated herein, the “SUBJECT PROPERTY”; and WHEREAS, a public hearing on said petition was held before the Planning and Zoning Commission on April 17, 2019 in the manner prescribed by ordinance and statute, and as a result of said hearing, the Planning and Zoning Commission did recommend to the City Council the granting of the requested Conditional Use Permit; and WHEREAS, the City Council has considered the evidence and recommendations from the Planning and Zoning Commission and finds that the approval of the requested Conditional Use Permit is consistent with the objectives of the City of McHenry Zoning Ordinance to protect the public health, safety, morals and general welfare of its residents. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS, AS FOLLOWS: Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.ci.mchenry.il.us SECTION 1: That the SUBJECT PROPERTY is hereby granted a Conditional Use Permit to allow outside storage of vehicles in conjunction with a towing operation subject to the following conditions: x The property shall be cleared of all debris, including any inoperable vehicles, trailers, etc. and anything unrelated to the request being considered; x The property keeps a neat and orderly appearance; x Boats and recreational vehicles must be stored in one area of property-not all over the property; x Vehicles must be stored in the area indicated on the site plan; x Applicant work with City Staff in locating signage for business off of Bull Valley Road, not impeding access or site lines to other businesses, customers or vehicles traversing the roadway; x Provide minimal security lighting/cameras on-site. SECTION 2: In granting said Conditional Use Permit, the City Council finds that the requirements of Table 31 of the Zoning Ordinance have been met in that: 1. Any adverse impact of types or volumes of traffic flow not otherwise typical in the zoning district has been minimized. 2. Any adverse effects of noise, glare, odor, dust, waste disposal, blockage of light or air, or other adverse environmental effects of a type or degree not characteristic of permitted uses in the zoning district, have been appropriately controlled. 3. The proposed use will fit harmoniously with the existing natural or man-made character of its surroundings, and with permitted uses in the zoning district. The use will not have undue deleterious effect on the environmental quality, property values, or neighborhood character already existing in the area or normally associated with permitted uses in the district. 4. The proposed use will not require existing community facilities or services to a degree disproportionate to that normally expected of permitted uses in the district, nor generate disproportionate demand for new services or facilities, in such a way as to place undue burdens upon existing development in the area. 5. The proposed use will not be detrimental to the safety or health of the employees, patrons, or visitors associated with the use nor of the general public in the vicinity. Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.ci.mchenry.il.us 6. The proposed use is in harmony with all other elements of compatibility pertinent to the Conditional Use and its particular location. SECTION 3: All Ordinances or parts thereof in conflict with the terms and provisions hereof are hereby repealed to the extent of such conflict. SECTION 4: This Ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, McHenry County, Illinois. SECTION 5: This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pam phlet form as provided by law. PASSED THIS DAY OF , 2019 AYES: NAYS: ABSTAINED: ABSENT: NOT VOTING: APPROVED THIS DAY OF , 2019 MAYOR CITY CLERK Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 www.ci.mchenry.il.us Exhibit A Legal Description of the Subject Property Applying fora conditional use permit for DN N DRTY, LLC at the location of 4564 Bull Valley Rd. McHenry, IL 60050.Our use of this property would be storage for recreational vehicles. As the use of this property happens we would be considering the following factors, to not adverse any impacts of volumes of traffic flow not otherwise typical in the zoning district. Also would not be impacting the environment by any which way. As we are surrounded by similar uses of property, we would be sure to keep everything up to par with the rules and regulations with the zoning district. DN N DRTY, LLC will be supplying a Plot of survey, in reason of wanting to put a sign up along Bull Valley Rd. at the entrance of the property. It will be facing the way traffic flows east to west. Also being 4'x8' in size and red and black in color. It would be clean and professional. To complete the following DN N DRTY, LLC would need approval of this. FORM A PUBLIC HEARING APPLICATION Planning and Zoning Commission City of McHenry File Number `� `15 333 South Green Sheet � McHenry, IL 60050 � Tel: (815) 363-2170 � Fax: (815) 363-2173 1. Name of Applicant 12 N N V it!j LLL Tel . c`S 15 s:�Q% sntL�5y Address Fax 2. Name of Property Owner —1 r i cXfA Tel oal k:�y 1 (35 (If other thaJApplicant) Address t'O \�oX %� Mcg6vlq Fax 3. Name of Engineer (If represented) Address 4. Name of Attorney (If represented) Address 5. Common Address or Location of Prope�Ty 6. Requested Actions) (check all that apply) �ng Map Amendment (Rezoning) _Conditional Use Permit Zoning Variance 'SIa Tel Tel Fax 1sti // ve //e y ;P�j aJ Zoning Vuiance -Minor Zoning Text Amendment Other Provide a brief description of the Requested Action(s). For example, the operation that requires a Conditional Use Permit, the specific Zoning Variance needed, or the new zoning classification that is requested: 5 FORMA Page 1 of 3 7. Current Use of Property 8. Curent Zoning Classification of Property, Including Variances or Conditional Uses 9. Curent Zoning Classification and Land Use of Adjoining Properties North: S South: T �— East: T West: 10. Required. Attachments (check all items submitted) Please refer to the Public Hearing Requhements Checklist to determine the requhed attachments. 1. Application Fee (amount) $ - Narrative Description of Request �/ 3. FORM A — Public Hearing Application FORM B — Zoning Map Amendment (Rezoning) Application 5. FORM C — Conditional Use Application 6. FORM D — Zoning Variance Application 7. FORME —Use Variance Application 8. Proof of Ownership and/or Written Consent from Property Owner in the Form of an Affidavit 9. Plat of Survey with Legal Description 10. List of Owners of all Adjoining Properties 11. Public Hearing Notice 12. Sign (Provided by the City, to be posted by the Applicant) 13, Site Plan 14. Landscape Plan 15. Architectural Rendering of Building Elevations 16. Performance Standards Certification 17. Traffic Analysis 18. School Impact Analysis FORMA Page 2 of 3 11. Disclosure of Interest The party signing the application shall be considered the Applicant. Inc Applicant must be the owner or trustee of record, hest beneficiary, lessee, contract purchaser, or option holder of the subject property or his or her agent or nominee. Anulicant is Not Owner If the Applicant is not the owner of record of the subject property, the application shall disclose the legal capacity of the Applicant and the full name, address, and telephone number of the owner(s). In addition, an affidavit of the owners(s) shall be filed with the application stating that the Applicant has the authority from the owners(s) to make the application. Applicant or Owner is Corporation or Parhrership If the Applicant, owner, contract purchaser, option holder, or any beneficiary of a land trust is a corporation or partnership, the application shall disclose the name and address of the corporation's officers, directors, and registered agents, or the partnership's general partners and those shareholders or limited partners owning in excess of five percent of the outstanding stock or interest in the corporation or interest shared by the limited partners. Applicant or Owner is a land Trust If the Applicant or owner is a land trust or other trust or trustee thereof, the full name, address, telephone number, and extent of interest of each beneficiary shall be disclosed in the application. 12. Certification I hereby certify that I am aware of all code requirements of the City of McHeruy that relate to this property and that the proposed use or development described in this application shall comply with all such codes. I hereby request that a public hearing to consider this application be held before the Planning and Zoning Commission, and thereafter that a recommendation be forwarded to the City Council for the adoption of an ordinance(s) granting the requested action(s), including any modifications to this application or conditions of approval recommended by the Zoning Board of Appeals or City Council. icant(s) FORMA Page 3 of 3 FORM C File Number z RY5 CONDITIONAL USE PERMIT Planning and Zoning Commission City of McHenry 333 South Green Street � McHeruy, II, 60050 � Tel: (815) 363-2170 � Fax: (815) 363-2173 Table 31 of the City of McHenry Zoning Ordinance provides that in recommending approval or conditional approval of a Conditional Use Permit, the Planning and Zoning Commission shall transmit to the City Council written findings that all of the conditions listed below apply to the requested action. Please respond to each of these conditions as it relates to your request 1. Traffic Any adverse impact of types or volumes of traffic flow not otherwise typical in the zoning district has been minimized. 2. Environmental Nuisance Any adverse effects of noise, glare, odor, dust, waste disposal, blockage of light or air, or other adverse environmental effects of a type or degree not characteristic of permitted uses in the zoning district have been appropriately controlled. 3. Neighborhood Character The proposed use will fit harmoniously with the existing natural or man-made character of its surroundings and with permitted uses in the zoning district. The use will not have undue deleterious effect on the environmental quality, property values, or neighborhood character existing in the area or normally associated with permitted uses in the district. FORM C Page 1 of 2 4. Public Services and Facilities The proposed use will not require existing community facilities or services to a degree disproportionate to that normally expected of permitted uses in the district, nor generate disproportionate demand for new services or facilities, in such a way as to place undue burdens upon existing development in the area. LJOU 5. Public Safety and Health The proposed use will not be detrimental to the safety or health of the employees, patrons, or visitors associated with the use nor of the general public in the vicinity. lo`Q �' f��ti�C► �`a '� v�r�QCx.C,`i' ti � �tw�/ Wct,�/ 6. Other Factors The proposed use is in harmony with all other elements of compatibility pertinent to the Conditional Use and its particular location, r i.3 ;a C o rrvZC u: ��? (A I ct/// Zr �2'18 fvv'aff FORM C Page 2 of 2 L PROP POLE BARN a ff786,06 . ISO 201 mp 9A' ....PROP . . . G"VEL i6W 4v titz L��(tt'jVV" GRAPHIC SCALE_ J < IN FEET ) IY h= W ft. y � i�'lc Yen ry , .7Z McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 www.ci.mchenry.il.us REGULAR AGENDA ITEM DATE: June 3, 2019 TO: City Council FROM: Wayne Jett, Mayor RE: Issuance of Class A Liquor License to Whiskey Straight LLC dba Whiskey Straight, located at 3932 Main Street, McHenry, Illinois ATT: Letter from Dan Hart to Council Explaining Business Concept Liquor License Application AGENDA ITEM SUMMARY: The purpose of this agenda item is for Council’s consideration for the issuance of a Class A Liquor License to Whiskey Straight, located at 3932 Main Street. BACKGROUND/ANALYSIS: Two already successful business owners – Dan Hart (DC Cobbs McHenry and Smith’s Central Garage) and Kevin Slimko (Slim’s Barber Shop, Crystal Lake) – are seeking to partner to bring a unique, destination-oriented business to 3932 Main Street – Whiskey Straight. While the primary business at this location will be as an upscale men’s barbershop, their business plan also includes offering other amenities such as shoe shines/shoe repairs and barber -training classes, as well as being able to offer a small (6-8 seat) bar area where customers will be able to purchase and consume upscale whiskeys and scotches. The concept, as discussed in the attached letter, will be “1920’s speakeasy themed” and will result in extensive improvements to the existing building. Also identified in the letter, video gaming will be offered as an amenity at the location. Conscious of the recent discussions by Council regarding video gaming, Dan has identified that no video gaming signage (interior or exterior) will be visible from the street and that gaming will be located in a separately enclosed room, also not visible from the street. As Mayor and Liquor Commissioner, I am supportive of this project on many levels. First, Dan and Kevin bring proven business success. They each own existing businesses (in Dan’s case, many businesses) with a built-in following that will no doubt bring instant interest in this new venture. Second, this concept is unique not only to McHenry and McHenry County, but to this region . While similar concepts can be found around the United States, this will be a “one of a kind” destination specific to McHenry. Third, Dan is already well-versed in what is required to obtain and maintain a liquor license. With this background and knowledge, he will be able to ensure that staff is appropriately trained and that local and state liquor laws are maintained. This knowledge makes this proposed business different than others that may come before Council seeking liquor licenses as an amenity to the primary business. Finally, and most important to me, Dan holds a vision for what McHenry could become and has already shown a willingness to invest in the community (DC Cobbs and Smith’s Central Garage). With this concept, he is willing to invest in an area of McHenry that is often overlooked and overshadowed by Green Street and Riverside Drive, and he understands that Main Street has great potential. He is interested in being part of the solution to revitalize Main Street. In my opinion, this is exactly the type of private investment that is needed to kick-start more redevelopment on Main Street. If you have any knowledge of Dan’s businesses, you know that he is not going to cut corners and that this will be a first-class establishment. In short, Dan and Kevin are willing to take a chance on investing in McHenry and, as such, we should support them in this venture . Most certainly, this is more appealing than seeing vacant and neglected buildings. I understand from discussions with Dan and some Council Members on this issue that the presence of video gaming may be a negative for this project. As you know, I am not the biggest fan of video gaming and believe that we need to continue to address this topic as a Council. However, we need to remember that video gaming revenues contribute approximately $600,000 to General Fund Revenues and, despite our personal opinions of video gaming, its existence does not place additional burden on public services in return for these revenues. Next, I believe that we truly have to consider requests for liquor licenses (with or without the potential for video gaming) on a case-by-case basis on the merits of the overall business concept. Finally, as it relates to this project, Dan is an existing business owner in the community (one of which offers video gaming) and, unlike “video gaming cafes”, video gaming will be offered only as an amenity at the location and will not be advertised at the facility per his letter. As additional information, unlike the discussion that Council had on May 20th regarding full service personal care liquor licenses, in the case of this request, the plan includes the location of a bar for the sale of alcohol as a separate service – in other words the alcohol is not offered as part of a “package” - therefore a Class A Liquor License has been requested and is the most appropriate for this request. RECOMMENDATION: Therefore, if Council concurs, I recommend that a motion be made to approve the issuance of a Class A Liquor License to Whiskey Straight LLC dba Whiskey Straight , located at 3932 Main Street, McHenry, Illinois pending the successful completion of the required background check. McHenry City Council, I am writing to you to share an exciting new concept that I would like to bring to McHenry and to ask for your support. The continued revitalization of McHenry’s downtown business districts is important to me. As an investor, property owner, and business owner in McHenry, I want to continue to work with you to bring great opportunities to the community. As you probably know, I am an investor in The Hub Market; now own Smith’s Garage; and brought my own branded dining concept, D.C. Cobbs, to McHenry. The transformation of Green Street over the last 18 months has been amazing and the support of the City, its staff, and residents is incredible. This support is what has made me continue to invest in the community, as an investor in The Hub Market on Green Street, and most recently as owner of Smith’s Garage on Pearl Street, where I hope to make a positive impact in the Riverside Drive area. I believe that as a result of what we have been able to do with the McHenry Downtown Theatre and D.C. Cobbs, we have opened the door for more investors to come into the area. This is proven with The Hub Market, Jexals, and even Buddyz who chose to undertake a remodel and expansion. I understand that Buddyz is actually up a significant amount in sales since the opening of D.C. Cobbs, meaning more people are coming to Green Street as a destination. The improvements to Walsh Park, the Green Street Bridge, Riverwalk expansion at Miller Point, and creek dredging project are creating a positive buzz that we hear about every day. Personally, the revitalization of Green Street has been exciting to watch, as well as be a part of, and I think over the next several years we will see it continue to flourish. I also believe that Riverside Drive offers many exciting opportunities with its access to the Fox River. I strongly believe that the next area of the downtown to focus on is Main Street. I have heard that Main Street is the “forgotten downtown” of McHenry and avoided by many because of its rougher character and supposedly undesirable people that hang around the area. As someone who makes business decisions based the potential for return, I have conducted a great deal of research on the Main Street area. In general, I found the buildings to be in sound structural condition, needing mostly some love and care. The area is easily accessible from Route 120, Route 31 and Crystal Lake Road and includes ample parking with the existing commuter parking lot just west of the railroad tracks. There are already some great local businesses in the area such as Plum Garden, Moe’s on Main, and Main Street Station, creating a good base from which to grow. What is needed is a spark to ignite additional activity and investment in this area. I am looking to spark revitalization on Main Street through a business concept that, while not new, is new to McHenry County and the surrounding region. I recently purchased the building at 3932 Main Street as an investment opportunity. This is a mixed use building that has previously been home to various businesses and most recently a tattoo shop. After purchasing the building I decided to ask through Facebook what residents wanted to see developed in the area. Many great ideas were tossed around. Everything from restaurants to organic grocery stores. Some ideas came up multiple times and received positive feedback. One of these was the concept of an upscale barbershop with bar service. Interested, I began to do some research on this concept. I found quite a few places that exist around the country, and world, that do this. I then began to brainstorm and reach out to professional contacts for guidance and advice. One of the first people that I approached was a close friend of mine, Kevin Slimko, known as “Slim The Barber”, to see if he had any advice or would be interested in being involved. Kevin has owned “Slim’s Barber Shop” In Crystal Lake for 14 years. Many of Kevin’s clients commute from as far away as Chicago to get a haircut at Slim’s. Kevin also has a very large social media following and produces training videos for barbers. Once I started explaining the concept Kevin immediately said that he was interested, thought that this could be a successful concept, and one that would draw people from some distances to McHenry. In addition, Kevin is already interested in opening a second location. This is what pushed me to really be interested in investing in this unique concept and bringing it to McHenry. With Kevin as the head barber and co-owner, this business would be able to draw a great deal of traffic from surrounding communities. These customers would in turn frequent other local businesses in McHenry. Increased customers on Main Street, along with the significant investment that I am willing to make in rehabilitating the building, would result in other people being willing to step up to invest in the Main Street area, just as they have done with Green Street. Kevin and I have come up with a concept for the new business as well as having met with contractors to get bids and the rough cost of opening. If you have visited any of the projects that I am involved with, I do not cut corners and demand only the best workmanship and details. The name of the new business would be “Whiskey Straight”, an upscale men’s barbershop featuring dark woods and leather in the decor. With a primary business of being a barbershop, “Whiskey Straight” will include the following: ● A small bar with 6-8 seats and a selection of upscale whiskeys and scotches that are not commonly available. ● Feature shoeshines as well as the outsourcing of shoe repairs. ● Several small tables for customers to converse and socialize. ● Allow food to be delivered and consumed on site from any of our local restaurants. ● Feature wine tastings and small group events. ● Barber classes, upscale men’s hair care and beard products and select apparel. ● “Whiskey Straight” will be open at 9am, 6 days a week. ● Extensive remodeling of the interior and exterior of the building, including façade and awning improvements. We would also like to discuss the possibility of an outside mural with the City of McHenry. Finally, wanting to be completing forthcoming, “Whiskey Straight” will offer video gaming. I understand that this has become a debated topic in McHenry and I want to be able to include video gaming as discretely as possible. Our concept is to build a small, enclosed room in the back of the facility with the feel of a 1920’s “speakeasy” in which the gaming machines would be located. In addition, there will be no advertisement of video gaming will exist visible from the outside. As proposed, the gaming would be offered only as an additional amenity to the primary focus of the business, a barbershop. We are excited about bringing the concept of “Whiskey Straight” to McHenry and bringing it to Main Street in particular. We firmly believe that if you decide to support our vision, we will be able to kickstart the revitalization of the Main Street area. I do not enter into business opportunities lightly, and would not propose this concept if I did not believe that it would bring something unique and successful to the community. Please contact me directly at 630.854.8881 if you would like to discuss this concept with me further or if you have any questions or concerns. We would like to move quickly and appear before the city council for our liquor license request in order to begin renovations and open this summer. I hope that we will be able to count on your support. Cheers, Dan Hart Conceptual Ideas: The picture can't be displayed. Nance; All t,iquor License Appticattone are to b®plod with the Ciitce ut tl�e Mayor. Ail lioenoea expire on April awe toliowind wo data of leeuanae. ALL SECTIONS OF THIS APPLICATION MUST BE FILLED OUT TRUTHFULLY AND IN THEIR ENTIRETY, IF A SECTION DOES NOT APPLY TO YOU MARK "NIA". ALL REQUIRED ATTACHMENTS MUST BE SUBMITTED WITH THIS APPLICATION. iyp��Oie3 Se f ' J rh dler�t.e#or, a A '��ll l�' Attoc fiasinessF wi Sidtt~ Ntlntpallie ofdsltlessr I* bnei'®ar; restautal; r�etalJ o el.rttctuunar� pds, stotlo arttrr' r�bi'''altt / Do Lou Intend to *p01V for tWns machInjoa throe h the $lat* a} illInaiafi,ftes or N+ I.lstgtatevtfiling tort Cdt ot'ariah' Pa�taiettht • Soft lgra datori Ht3w loy� h>s� tie sets pilFoprletbr;.Clii�� Pahly�tllliip� Carpot�tloti or t!G �►�iarl'iq th�.buslrMss o! ` W of0holl Alit DO Uul� rzdnln Ct $104 Of- ls.NOWito ?.ts 111 a toAi .... a .' li property flames Ls t e etotion of •ppttant's uslness for which Ftcense Is sought w1thM ane hundred feet of any church, scheoi except Institutions of higher educotlonl, hospltai,lunerai horns, home for oged or lndtgent persons or for veterans �D and their tan�illes or any military or naval I<tation? IYes or Not Airentt An Agent Is the represhttative of the Licensee Homo sup®rvisary atithotity over tn+rner. erne ®► 1 ua� date A puce er Has any ownar(t) orm mlrer(s; oib Partne►ship been Issued a federal g'arnino devise stamp or a) wkaperingstamp by.theled+errii gavemniehl for the current taKpolladi bpi corpar.6 flag t+p�;pl�`YI mandder, ordlrertor thereali cis, anystocklYc/derownlnsi In the agpregate mare than tw�ilty �2¢j sh ck been Issued aledemlWgpeiing devise stamp or dlederol waperlriu stamp Gy ttsn ja J�rri% the current tax asriod? Ives arNai Nave you, or any parth�r, or Iranylndlviduai i�F1it7 ctirmare orindlnrtiy ahr a� l4ratian ar appti�nt's place ir►rei ever had a �uslrss, d law�eirj�trld a/Iola c+ommlttee or tibitrdl `tYns ati or 0 Nave you ever been convicted Of pambling o/fense `1/a partnersh/p orcprparat/on,Ynclude all paffner.4 owners 0 SM or mare shares o the � `oration dnd the local nrana err es orlVa AO If' ves" provlde the name of the Individual and the date 116cai tlon of the ti/lense. ' Name I Date and Laratiori of Offense f] c PROPRIETOR, Prat Name i'ARTNEFtBHlP: �Authori�ed Agent of tho Psrinetatttp)ff s coRPoRAYioN: �Auli B! :• ! S! v �! m i :. f 1 SOLE , s• t e• , wa a t �C40RDFCERTIFICATE OF LIABILITY I D"ATE �..- INSURANCE GHT$ UPON THE CERTIFICATE HOLDE5/22/2019 ,_ TH18 CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIR. -THIS CERTIFICATE 00E$ NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER($), AUTHORIZED REPRE$ENTATVL OR PRODUCER, AND THE CERTIFICATE HOLDER. tMPORTANT: Ell* CArtiticate holder lion ADDITIONAL INSURED, the Policy(les) must have ADDITIONAL INSURED provisions or be endorsed. if SUBROGATION IS WANED, subject to the tarns and conditions of the policy, certain policies may require an endorsement A statement on thIs certificate does not confer rights to the certificate holder In lieu of such anderearnentrel. rRoaucEl Lemb, Lima b Co 1101 Perimeter Drive Suits $00 Schgumburg IL 60173 N�uRFo Whiskey Straight LLC 3932 Main St McHemy IL 60050 01 COVERAGES CERT�IGATE NUMBER:52874413Q REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY RECUiREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POUCIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. IJAMTS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. P Am U1I1R TYPEOPIN$URANCE DL iwvn t8 UCYNUittBER PO EiP PO C EJtP Lirltr8 A X co1AWERC1ALOENFRALLiABILlTY BP17023304 8/3/201e 8/3/2019 FAc OCCURRENCE�$110004000 T C W MS -MADE OCCUR "V" I MED EXP am rson 151000 PERSONAL d ADV INJURY 1110004000 GEltLAGGR$GATE LIMIT APPLIES PER: GENERAL AGGREGATE S 2 000,000 POLICY JECT LOC PRODUCTS • COMP OP AGG S 2,000 0D0 OTriEN: � A AVTOMOBILILIABILrTY CA17023305 813/2016 twoi9 P COMBINEDW LIMIT $1,000,000 ANY AUTO BODILY ►WURY (Per peroon) 6 DULED uTQS QNLY AUTOS BODILY INJURY (Par emilent) x HIRED NON4WME0 OPE Q >i AUTOS ONLY AUTOS ONLY A X UMDRELLAUAs X OCCUR UM17023307 8/3/2018 8/312019 EACH OCCURRENCE ;2,DOO,D00 ExCBe& LL#9 !� ClAINSatAbE AGGREGATE $ 2,0001000 OED )( RE T4 NTTQN 1; e WORKERS COMPENSATION 93WECABSBLR 81312018 8Pd/2019 X f AND EMPLDVOW ULIBILrrY Y ANYPROPR"TOWPAR1NERnECUt1VE OfnCERIMEAMEREXCLUDE)? ►� NIA SL EACH ACCIDENT $ 500,000 _ (1LarWatortdasa to un EL DISEASE • EA EMPLOYEE $ 540 000 It rySasd doealOo Of O -- - DESCRIPt10N Of OPERATIONS Detaw E.L. DISEASE POLICY UMtT S 500000 A Liquor Leh BP1IT0233D4 81312018 OW019 Agg"aU 1,000,000 tucriP1toNOPOPE"nONSILOCATIONSIVEHICLE$(ACORD101,AddUtWRamarkaSchodulo,mayboariechodHmom Sperobrequhad) City of McHenry 33 S. Green Street McFlenty IL 60050 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CATiCELLEO BEFORE THE EICPiRA'fTWt DATE THEREOF, NOTICE WILL t3te DELIVERED IN ACCORDAJ�CE WITH TILE POLICY PROVIStONB. AUTHGR¢ED REPRE E!'NTATNE +3 � ar a-o ♦ , McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 www.ci.mchenry.il.us REGULAR AGENDA ITEM DATE: June 3, 2019 TO: City Council FROM: Derik Morefield, City Administrator RE: Consideration to approve and authorize the execution of a Development Agreement and Release of Letter of Credit and Annexation Obligations between the City of McHenry and Thelan Sand & Gravel ATT: Development Agreement and Release As identified by Attorney McArdle during the May 20, 2019 City Council Meeting, Staff has been working with representatives of Thelan Sand & Gravel to coordinate the disposal of Boone Creek dredged materials directly to their existing operation on Route 120 just east of McHenry. In summary, this would reduce the City’s cost of having to move the material twice (first, to the South Wastewater Treatment Plant site for drying, and second, offsite for final disposal). Additionally, the disposal fee is significantly less than what the City would otherwise pay. In exchange for this, the City would agree to release existing Letters of Credit (LOC) for improvements identified in a 2003 Annexation Agreement between the City and Concord Homes, assumed by Thelan as successor to Concord in 2015. It is important to note that the responsibility for improvements remains with Thelan, or a future developer of the site, and that this agreement simply releases the existing LOCs. New LOCs would be put into place upon develo pment of the property. Attorney McArdle will provide additional detail at the Council Meeting. Therefore, if Council concurs, it is recommended that a motion be made to approve and authorize the execution of a Development Agreement and Release of Letter of Credit and Annexation Obligations between the City of McHenry and Thelan Sand & Gravel. Development Agreement and Release Letter of Credit and Annexation Agreement Obligations This Agreement is entered into by and between the City of McHenry ("City") and Prairie Pointe Land Development Corp., an Illinois Corporation ("Developer") and Thelen Sand & Gravel, Inc. ("TSG"), this day of June, 2019. Recitals A. WHEREAS, the City and Concord Homes, Inc. entered into an Annexation Agreement dated February 17, 2003 ("Annexation Agreement") relative to the territory described in the attached Exhibit A ("Annexed Land"). A copy of the Annexation Agreement, without exhibits, is attached hereto as Exhibit B B. WHEREAS, within the Annexation Agreement, section 20 provided, in part, the following obligations on behalf of the OWNER: a. OWNER agrees to construct... (a) public sidewalk on one side (of Veterans' Parkway) and (a) 8'wide asphalt bike path on the other... c. At the request by the CITY, the OWNERS shall be responsible for and pay the cost of the construction and installation of a traffic control .signal at the intersection of State Route 31 and the proposed Collector Road on the subject property (Veterans Parkway), as depicted on the Concept Plan. These funds shall be secured by a letter of credit prior to the CITY's approval of the OWNERS' final plat of the last phase of the SUBJECT PROPERTY, or sooner in the event the traffic warrants have been met. In the event the traffic signal is warranted prior to OWNERS' final plat of approval, no permits or plats shall be issued or approved until the required letters of credit are posted.... (parentheticals added.) Collectively, these obligations relating to construction of the bike path, sidewalk and traffic control signal shall be referred to as "Annexation Agreement Obligations". C. WHEREAS, on or about December 18, 2015, the Developer, as successor in interest to the Annexed Land, signed an Agreement to Assume Developer Obligations, a copy of which is attached hereto as "Exhibit C" ("Assumption Agreement"). D. WHEREAS, in the Assumption Agreement, Developer assumed the Annexation Agreement Obligations, secured by a letter of credit issued by American Community Bank & Trust on December 18, 2015, with an assigned number of 15-230 and in the sum of $418,000, a copy of which is attached as "Exhibit D" ("Assumption LOC"). E. WHEREAS, as successor in interest to the Annexed Land, the Developer also secured its obligation to install certain on -site public improvements (including public infrastructure improvements including sewer, water and other public improvements) at the Prairie Pointe Business Park by a letter of credit issued by American Community Bank & Trust on December 19, 2003, with an assigned number of 03-061 and in the initial sum of $1,255,662.50, subsequently reduced, by amendment, to $501,811,000.00 on or about December 30, 2006, a copy of which is attached as "Exhibit E" ("On Site Improvement LOC"). F. WHEREAS, the City is currently in the process of hauling dredged material from Boone Creek, in conjunction with dredging operations of the Fox Waterway Agency ("Dredge Project"), and desires to coordinate disposal of the dredged material with TSG. TSG is the guarantor of the Assumption LOC and its President, Steve Thelen, is the President of Developer. NOW, THEREFORE, in consideration of the agreements and promises made herein, the adequacy and sufficiency of which is acknowledged by the parties hereto is agreed as follows: 1. Upon execution of this Agreement by all of the parties hereto, the Assumption LOC and On Site Improvement LOC shall be considered released by the City and may be cancelled by the issuer, American Community Bank & Trust. 2. In consideration of the release of the Assumption LOC and On Site Improvement LOC and thus, the release of TSG as guarantor of the Assumption LOC, TSG agrees to permit the City to dispose of all 2019 dredge material on the Dredge Project at the TSG disposal site in Lakemoor, Illinois at the following cost: $10.00 per truckload for the first 500 trucks and $20.00 per truckload thereafter, not to exceed a total of 20,000 cubic yards of Dredge Project material. These prices only apply to the Dredge Project. 3. Developer hereby assumes the obligation for, and guarantees timely completion of, all of the Annexation Agreement Obligations secured within Exhibit D (bike path, sidewalk and traffic signal) and the full installation of certain remaining on -site public improvements secured within Exhibit E (including public infrastructure improvements including sanitary sewer, potable water and other public improvements), in compliance with the Annexation Agreement and City Subdivision Control Ordinance, at the Prairie Pointe Business Park (collectively, "Improvement Obligations"). To secure this Agreement to install the referenced improvements and Improvement Obligations, Developer agrees that no building permits shall be issued on that certain 38 acres of land (approximately), within the Annexed Land of the Annexation Agreement, legally described as follows: Lots I through 15 inclusive and lot 17 in Prairie Pointe Business Park being a subdivision of part of the Southeast Quarter of Section 10, all in Township 44 north, Range 8, East of the Third Principal Meridian, according to the plat thereof Recorded January 6, 2004 as Document 2004R0001227, in McHenry County, Illinois. depicted and designated Developer 38 Acres, on the drawing attached as "Exhibit F" ("Developer 38 Acre Parcel") until the Improvement Obligations are fully met ("Building Permit Hold"). Provided, however, this Building Permit Hold shall be released by the City upon the Developer 4 filing with the City, as beneficiary, new letters of credit as described in Exhibits D and E, in the same amounts and on similar forms and issued by a bank reasonably acceptable to the City. 4. In the event traffic warrants are met at the intersection of Illinois Rt. 31 and Veterans' Parkway prior to any building permits being requested from the City relative to the Developer 38 Acre Parcel, the Developer fails to honor its agreements herein by failing to pay for the traffic light installation cost as set forth herein and in the Annexation Agreement Obligations ("Traffic Light Installation Cost"), and the City ends up paying for any of these costs, Developer further agrees that all costs incurred by the City shall be fully repaid by the Developer prior to any building permits being requested from the City relative to the Developer 38 Acre Parcel. To secure this agreement by the Developer, at such time as warrants are met, the Developer further agrees to file with the City Letters of Credit described and in amounts stated in Exhibits D and E, on forms and issued by a bank reasonably approved by the City. The Letters of Credit shall provide for its draw by the City upon any request for issuance of any building permits relative to the Developer 38 Acre Parcel. In the event said Letters of Credit are not timely filed by Developer, the City may, at its discretion, file a recapture ordinance against the Developer 38 Acre Parcel, imposing the Traffic Light Installation Cost incurred by the City. 5. The agreements and promises herein shall burden and run with the Developer 38 Acre Parcel, described below, shall be binding on the successors and assigns of the Developer, and a copy of this Agreement shall be filed in the Office of the Recorder of Deeds, McHenry County: Legal Description-38 Acres Lots 1 through 15 inclusive and lot 17 in Prairie Pointe Business Park being a subdivision ofpart of the Southeast Quarter of Section 10, all in Township 44 north, Range 8, East of the Third Principal Meridian, according to the plat thereof Recorded January 6, 2004 as Document 2004R0001227, in McHenry County, Illinois. City of McHenry :A Its Mayor Date Prairie Pointe Land Development Corp. Its President Date Thelen Sand & Gravel, Inc. Its President Date Z:\M\McHenryCityoflTbelan\ReleaseLOC&Obligations. doex 3 Exhibit A Legal Description of the SUBJECT PROPERTY Petrel I That part of the Southeast Quarter of Section I0, Township 44 North, Mange 8, East of the Third principal Meridian commencing at East Quarter Corner of said Section 10;. . thence South 89 degrees 20 minutes 17 seconds West along the North line of the cw1way mm Northeast Quarter of said Southeast Quarter, a distance of 84g.97 feet to the point of ol,irtd beginning-, thence South 00 degines 31 minutes 38 seconds last, a distance of 385.22 -feet; thence South 19 degrees 14 minutes 10 seconds Fast, a distance of 100.30 feet; thence South 00 degrees 31 minutes 38 seconds East, a distance of 403.01 feet; thence Sou11i 26 degrees 29 minutes 53 seconds West, a distance bf 423.96 feet; thence South 11 degrees 02 minutes 43 seconds West, a distance of 80.00 feet; thence North 78.degrees 57 minutes 17 seconds West, a distance of 55.79 feet to a point of curvature; thence westerly 226.55 feet along a curve to the right having a radius of 840.00 feet, the cho-rd of said curve bears North 71 degrees 13 rltinutes 42 seconds West 225.86 feet to a point of tangency; thence North 63 degrees 30 minutes 07 seconds West, a distance of 1$1.90 feet; thence South 26 degrees 29 minutes 53 seconds West, a distance of 169.64 feet to the South line of the Northwest Quarter of the said Southeast Quarter, thence South 89 degrees 30 minutes 45 seconds West along said South line, a distance of 403.99 feet to a line lying 20 feet easterly of and parallel with the easterly Right -of -Way of Illinois Statd Route 31; thence North 26 degrees 29 minutes 53 seconds East alonngg said parallelline, a distance of 148153 feet to the North line of the NortheastQuartrr of the said Southeast Quarter; thence North 89 degrees 20 minutes 17 seconds East'nlong said North line, a . distance of 413.81 feet to the point of beginning, containing 21.�5 acres more or less. sP•9uslmw • TtC� act p of the Southeast Quarter of Section 10, Township 44 North, Range 8, East of the Third principal Meridian beginning at the East Quarter Comer of said Section 10; tfitnce South 00 degrees 31 minutes 39 seconds East alor4,,gg the East line of the Northtast Quarter of the said Southeast Quarter, a distance of 1324.0,7 feet to the Northeast comer - ofthe Southeast Quarter oftlic said Southeast Quarter, thence South 00 degrees 32 minutes 32 seconds East along the East line of the Southeast Quarter ofthe said Southeast Quarter, a distance of 432.17 feet, thence North 89 degrees 57 minutes 56 seconds West, -- - a distance of 50.30 feet to a point of curvature; thence westerly 569.31 feet along a curve to the right having a radius of 840.00 fee; the chord of said curve bears North 70 degrees 35 minutes 01 seconds West 557.53 feet to a point of tangency; thence North 51 degrees 12 minutes 06 seconds West, a distance of 161.69 feet to a potat of curvature; th enob northwesterly 343.91 feet along a carve to the left having a radius of 710.00 feet, the chord of said curve bears North 65 degrees 04 minutes 42 seconds West 340.56 feet to a point of tangency; theism North 78 degrees 57 minutes 17 seconds West, a distance pf 67.40 feet; thence North 11 dogree3.02 minutes 43 seconds East, a distance of 80.00 feet; thence North 26 degrees 29 minutia 53 seconds East, a distance of 423.96 feet, thence North 00 degrees 31 minutes 38 seconds West, a distance of403.01 feet; thence North 19 degrees 14 minutes 10 seconds West, adisiaace of 100.30 feet; thence North 00 degrees 31 minutes 38 seconds West, adistsace of 385.22 feet to the North line of the Northeast Quarter of said Southeast Quarter; thence North 89 degrees 20 minutes 17 seconds Fast along sand North line, a distance of 849.97 feet to the point of beginning, containing 32.27 acres more or less. POOR QUALITY Fn4IMAGING 3 03-029-5282 a EXHIBIT J J Pomd 3 Z uy, That part of the Southeast Quarter of Section 10, Township 44 North, Range S. East of nnr M�a the Third Principal Meridian commencing at the East Quarter Comer of said Section 10; thence South 00 degrees 31 minutes 39 seconds East along the East line of the Northeast o�euta Quarter of the said Southeast Quarter, a distance of 1324.07 feet to the Northeast corner of the Southeast Quarter of the said Southeast Quarter, thence South 00 degrees 32 minutes 32 seconds East along the East lice of toe Southeast Quarter of the said Southeast Quarter, a distance of 432.17 feet to the pointof b aning; thence continuing South 00 degrees 32 minutes 32 seconds East along the said line, a distance of 889.74 feet to the Southeast•comer ofsaid Southeast Quarto ounce South 89 degrees 37 minutes 52 seconds West along the South tine ofthe Southeast Quarter of the said Southeast Qualm,. a distance of 1333-88 feetto the Southwest comer of the said Southeast Quarter; thence North 00 degrees 21 minutes 03 seconds West along the West line of the Southeast _ Quarter of the said Southeast Quarter, a distance of 13I9.16 feet to the Northwest comer of the Southeast Quarter of the aaid Southeast Quarter; thence South 89 degrees 30 minutes 45 sccdnds West along the South line of the Northwest Quarter of the said Southeast Quarter, a distance of 20351 feet; thence North 26 degrees 29 minutes 53 seconds East a distance of 168.64 feet; thence.South 63 degrees 30 minutes 07 seconds East a distance of 181.90 feet to a point of eurvature• thence easterly 22635 feet along a curve to the"Ieft baVing a radim of 340.00 feet, the chord of said curve bears South 71 degrees 13 minutes 42 seconds East 225.86 feet to a point of tangency; thence South 78 degrees 57 minutes 17 seconds East, a distance of 123.19 feet to apoint of curvature, thence southeasterly 343.91 feet along a curve to the right having a radius of 710.00 feet, the chord of said curve bears South 65 degrees 04 minutes 42 seconds East 340.56 feet to l ppoint of tangency; thence South31 degrees 12 minutes 06 seconds East, a distance of 01.69 feet to a point of curvahue; theoco easterly 568:31 feet along a curve to the left having a ius of 840.00 feet, the chord of said curve bears South 70 degrees 35 minutes 01 seconds Fast 557.53 feet to a point of tangency- theme South 89 degrees 57 minutes 56 seconds East a distance of 50.30 feet to the the point of beginning, containing 35.01 acres more or less. 4 03-029.-S283 CONCORD ANNEXATION AGREEMENT This Agreement made and entered into this 17" day of February, 2003, by and between the CITY OF McHENRY, an Illinois municipal corporation (hereinafter referred to as "CITY"), CONCORD HOMES, INC. ("OWNER"), and CONCORD HOMES, INC. ('CONTRACT PURCHASER") RECITALS A. The OWNER holds fee simple title to the real estate legally described on Exhibit A, attached hereto and made x part of this Agreement by reference, hereinafter referred to as the "SUBJECT PROPERTY" and was CONTRACT PURCHASER thereof. B. The OWNER has filed with the City Clerk a Petition for Annexation of the SUBJECT PROPERTY to the CITY, contingent upon the terms and provisions ofthis Agreement which Petition has been filed in accordance with 65 iLCS 5/7-1-9, and the ordinances of the CITY. C. The SUBJECT PROPERTY is currently improved with a single-family residence and farm buildings on th east side of State Route 31, and is zoned A-1, Agricultural, pursuant to the McHenry County Zoning Ordinance, D. The SUBJECT PROPERTY has no electors residing thereon. E. The SUBJECT PROPERTY consists of one contiguous tract of land which is not within the corporate boundaries of any municipality or subject to an Annexation Agreement with any other municipality, and is presently contiguous to and may be annexed to the CITY in accordance with 65 ILCS 5/7-1-1, et seq. F. The OWNER desires to annex the SUBJECT PROPERTY to the CITY in accordance with the terms of this Agreement. G. The CITY has determined that the annexation of the SUBJECT PROPERTY in accordance with the terms of this Agreement is in the best interest of the CITY, will promote sound planning and growth of the CITY, and otherwise enhance and promote the general welfare of the CITY and its residents. H. Notice to the Fire Protection District, Public Library District or Township of the annexation of the SUBJECT PROPERTY is not required. EXHIBIT 7ro A-0 4t-p 03-029-5268 a L This Agreement is made pursuant to and in accordance with the provisions of 65 ILCS 5111-15.1-1, at seq. J. Prior to the date of this Agreement, all public hearings were held upon proper notice and publications as are required for the CITY to effect the terms of this Agreement. NOW THEREFORE, in consideration of their respective agreements set out herein, the CITY and OWNER HEREBY AGREE AS FOLLOWS: 1 _ Annexation. Upon execution of this Agreement, as allowable bylaw, the CITY shall enact an ordinance annexing the SUBJECT PROPERTY. A copy of said ordinance, together with an accurate plat of the SUBJECT PROPERTY, shall be filed with the, County Clerk of McHenry County and recorded with the Recorder of Deeds of McHenryCounty. This Agreement in lts entirety, togetherwith the aforesatd Petition for Annexation, shall be null, void and of no force and effect unless the SUBJECT PROPERTY is zoned and classified as provided in this Agreement by the adoption of ordinances by the CITY immediately following the execution of this Agreement 2. Zonina. Immediately following the annexation of the SUBJECT PROPERTY, the CITY shall adopt an ordinance granting a zoning map amendment to RM-2, High - Density Multi -Family Residential District, C-5, Highway Commercial District, and BP, Business Paris District, for the SUBJECT PROPERTY in substantial conformance with the zoning district boundaries depicted on Exhibit B, entitled `Zoning Exhibit', prepared by Smith Engineering Consultants, dated 9/19102, attached hereto and made a part of this Agreement by reference, 3. yariance. Immediately following the annexation and zoning of the SUBJECT PROPERTY, the CITY shah adopt an orctnance granting a variance to allow multiple buildings on a zoning lot for that portion of the property zoned RM-2, with the condition that no more than twelve (12) units shag be constructed within a single building. 4_ Concept Plan ARpMval. The Concept Plan. prepared by JEN Land Design, dated December 19, 2002, attached hereto as Exhibit C and made a part of tlusAgreement by reference (hereinafter referred to as 'Concept Plan`), is hereby approved. It is understood that the representations on the Concept Plan regarding land uses, maximum number of units, the public dgtrts-of-way, open space layout, stomrwater management facilitles and the configuration of lots is preGndnary in nature and the final road and lot layout will be determined at the time of final plaiting for the SUBJECT PROPERTY. OWNER agrees, however, that representations regarding the location of proposed zoning designations, the provision of a collector road, and landscaping buffer along Route 31 shag be binding and any amendments to such representations, except as otherwise provided herein, shall require an amendment to this Agreement 2 03-029-5269 S. MaxiMy n Number of Residential Units. OWNER shall be entitled to construct 244 new residential dwelling units on that portion of the SUBJECT PROPERTY zoned RM-2. 6. J irtnitabon on Number of Units Allowed Per Year. Upon application by the OWNER and review by the CITY, the CITY shall Issue permits for the construction of no more than sixty (60) residential units per calendar year. The first calendar year shall begin on the date of final plat approval by the City Council for the RM-2 portion of the SUBJECT PROPERTY. If, during the course of a calendar year, the OWNER has received building permits for less than 60 units and the issuance by the CITY of a building permit for one (1) additional residential building would cause the total number of units to exceed 60, CITY Staff shall, at its discretion, issue said building permit However, no further building permits for residential units shall be issued in the same calendar year. Building Elevations. a. RM-2Zonintt. OWNER agrees that multi -family units constructed on that portion of the SUBJECT' PROPERTY zoned RM-2 shag have an appearance in' substantial accordance with Exhibit D entitled 'Building Elevations', prepared by Bloodgood Sharp Buster, undated, attached hereto and made a part of this. Agreement by reference (hereinafter referred to as "Building Elevations'). b. BP Zoninq. OWNER agrees that appearance of all buildings constructed on that portion of the SUBJECT PROPERTY zoned BP shall comply with the CITY's Zoning Ordinance requirement for BP uses. c. C-5 Zoning. OWNER agrees that all buildings constructed on that portion of the SUBJECT PROPERTY zoned C-5 shall have a finished appearance on all sides of such buildings having frontage on a public street 8. Landscape Plans. Prior to issuance of any Occupancy Permits by the CITY, OWNER shall Install and maintain landscaping, berming, fencing and other improvements In accordance with Exibit E entitled "McHenry Site PrelimInar_y Landscape Plan", prepared by Pugsley & Lahaia Ltd., dated42/20/02, attached hereto and made a part of this Agreement by reference (hereinafter referred to as 'Landscape Mans), in all areas of the SUBJECT PROPERTY that have been final platted, unless weather prevents the installation of said landscaping, berming and fencing, and in that event, temporary occupancy pem*s may be issued to the OWNER. OWNER shall implement install, enforce, and maintain the Landscape Plans within the SUBJECT PROPERTY, and shag incorporate the Landscape Plans into the covenants and restrictions placed on the SUBJECT PROPERTY prior to CITY approval of the first final platof subdivision within the SUBJECT PROPERTY. 9. Covenants and Maintenance. OWNER agrees to prWde for Implementation, enforcement, and maintenance of all Landscape Plans, private paths, open space, 03-029-52.70 gas pipeline easements, private recreational facilities, storm water and drainage systems, including detention basins and retention ponds, wetlands, and conservation areas, as provided on Exhibit C, Exhibit D and Exhibit E by creating one or more 'homeowners' association" or appropriate organizations. The provisions of each homeowners' association corporate charter and bylaws and any covenants used in its enforcement shal be submitted to the CITY with each final plat of subdivision. it is acknowledged and agreed that the CITY shall have the Fight, but not the obligation, to enforce all provisions of the homeowners' association charters, bylaws, and covenants, as they relate to stormwater management, and that all such documents shall so provide. It is furtheracknowledged and agreed that ail homeowners' associations bylaws and covenants will specifically provide that these shall not be amended as they relate to such implementation, enforcement, and maintenance, and the means for providing funds therefore, without the prior approval of the CITY_ 10, Back -Up Special Service Area. Prior to CITY approval of the first final plat of subdivision within the SUBJECT PROPERTY, OWNER and CITY agree to establish a Special Service Area over that portion of the SUBJECT PROPERTY zoned RM-2 to finance special municipal services as a back-up measure to the private 'homeowners' association" and assessment to ensure the continued maintenance of the private subdivision improvements, including open space, landscaping, and other amehities. as provided in this Agreement. 11. Tree Survev and Preservation Plan. OWNER shag provide a tree survey and preservation plan for review and approval by the CITY priorto CITY approval of the first final plat of subdivision within the SUBJECT PROPERTY, in accordance with the CITY's Tree Preservation ordinance. 12, Curb Gutter and Sidewalks. OWNER shag instal public sidewalks on at least one side of the street, concrete curb and gutter, and an enclosed storm sewersystem, designed and constructed in accordance with the ordinances of the CITY, in the areas of the SUBJECT PROPERTY zoned BP and C-5. Public sidewalks on both sides of the street, curb and gutter, and an enclosed storm sewer system shall be Installed in all other areas of the SUBJECT PROPERTY, in compliance with the ordinances of the CITY. 13. Sanitary Sewer and Water, a. The SUBJECT PROPERTY shall be developed with municipal sanitary sewer and water. OWNER will be allowed to extend the municipal water and sewer lines to service the SUBJECT PROPERTY, and the CITY will service the development with water and sanitary sewer treatment facilities. Water and sanitary treatment plant and main capacity will be made available to the development on the same basis as it is made available to other developments_ 03-029-5271 b. The CITY acknowledges that there is currently sanitary sewer treatment plant capacity available from the CITYto servicethe SUBJECT PROPERTY however, the CITY does not agree to reserve any capacity for the SUBJECT PROPERTY. No action of the CITY regarding application to the Illinois or U-S. Environmental Protection Agency for permission to construct sanitary sewer lines on any part of the SUBJECT PROPERTY shall be construed to constitute any representation, warranty, or reservation by the CITY to OWNER that municipal sanitary sewer treatment plant or sanitary sewer main capacity or municipal water wIR be available to service the SUBJECT PROPERTY when OWNER apprres to the CITY for connection permits. c. The CITY shall exercise its power of eminent domain, if necessary, to assist OWNER in obtaining all necessary easements, not already in existence, to enable the installation of the aforesaid sanitary sewerand water Improvements. OWNER shall pay all eminent domain costs and expenses incurred by the CITY, including but not rimited to attorneys fees, title charges, appraisals, surveying cost, deposition cost, witness fees, litigation enx mses and judgments in the acquisition of any easement. 14. Interim Sanitary Sewer Connection, CITY agrees to allow connection of the SUBJECT PROPERTY to the existing sanitary sewer line located on theeast sideof Route 31 north of the property on an Interim basis. OWNER acknowledges that the City's Master Plan for Sewer and Water indicates that the SUBJECT PROPERTY will be served by a future sanitary sewer line extending east to Barrevile Road. OWNER agrees that when said sanitary sewer line is installed and operational, the CITY will require that the interim connection will be abandoned and the SUBJECT PROPERTY he connected to the new fine, at OWNER'S sole cost and expense. 15_ Existing Rempture Agreement. OWNER acknowledges that the SUBJECT 3 PROPERTY is subject to an existing sanitary sewer and water reimbursement or "recapture" agreement between the CITY and McHenry State Bank, as Trustee under Trust Agreement No. 619, dated August 31,1994 ('Pintozzi Agreement'). The sanitary sewer and water connections being made to the SUBJECT PROPERTY will not be made in any respect to the Improvements made under Me Pintozzi Agreement relating to 'Lot 4 in Highpoint Subdivision" and on that basis, the CITY will riot be requiring the OWNER to pay reimbursement pursuant to the Piniaai Agreement. OWNER hereby agrees to hold the CITY harmless from any liability the CITY may have under the Pintoza Agreement for failure to collect monetary reimbursement from the OWNER, pursuantto the Pintozzi Agreement, in the event it is determined by any court of law in the future or by agreement of the CITY and the Pintozzi representatives that the Pintozzi Agreement should apply to the SUBJECT PROPERTY. In such event, the OWNER shall either reimburse the CITY for any and all liability to the beneficiaries to the Pintozzi Agreement, including reasonable attorneys fees incurred by the CITY in defending its position, or pay the beneficiaries under the Pintozzi Agreement directly. 5 43-029-5272 i6. Reimbursement Proviclnn Upon development of any portion of the SUBJECT PROPERTY, the CITY reserves the right to request OWNERS to construct additional. expanded or oversized municipal public improvements onsite which benefit not only the SUBJECT PROPERTY, but also other properties being orto be i developed in the relevant service areas for such improvements_ In the event j OWNERS make such improvements, the following provisions shall apply and be included In a subsequent reimbursement agreement: a. The properties which may reasonably be expected to benefit directly or indirectly from the construction and Installation of such additional onsite expanded or oversized improvements ("Benefited Property") will be determined by the CITYs Consulting Engineer. b. OWNERS shall be affovmd rakrrbursement for expanded or oversized improvements as Mows- 1- 100% for improvements made offsite of the SUBJECT PROPERTY; and 2. Proportionately on a per acreage basis for improvements made onsits of the SUBJECT PROPERTY. c. The CITY shag endeavor to collect a pro rate Burn of money from the owners of the Benefited Property upon connection. The total sum subject to reimbursement to the OWNER, as wet] as the pro rate sum to be collected from the Benefited Properly owners shaft be determined by the Cf1Y's Consulting Engineer taking into account the following factors_ construction and easemerrt oosts; professional fees; testing and analysis fees; and legal and administrative expenses. In addition, interest shall be collected from the commencement date of this reimbursement provision, calculated annually at one percent (1 %) over the last July 1, five-year treasury bill rate. The sum collected shag be paid to OWNERS after deduction of two percent (2%) for administrative charges due CITY. In the event that any State statute shall determine an interest rate otherthan set forth in this paragraph tfi_e., the State -Requirement shall prevail. d. Subject to a nonappealable final court order, directing Crty to act otherwise, the CITY shall not issue any connection permits until the Benefited Property owner pays the reimbursement charge set forth In this paragraph, e. The CITY will use its best effort to Collect the cost provided herein from the Benefited Property owners but shall not be liable to OWNERS if the CITY is, for any reason, unable to collect said cost The CrlYs lability to reimburse OWNERS shag be limited to payment from fiords actually collected from Benefited Property OWNERS. f_ The CITY and OWNERS reserve the right to, at any time during the term of this Annexation Agreement, file the Reimbursement Agreement with the McHenry County Recorder of Deeds and notify the owners of the Benefited Property of the terms of this reimbursement provision. 6 03-029-5273 g- OWNERS shall reimburse and indemnify CITY for all costs, engineering and attorney's fees and liability incurred by the CITY in attempting to collect the reimbursement amount subject to this reimbursement provision. h. This reimbursement provision shaft have a commencement date when the CITY Engineer issues a letter indicating substantial completion of the public improvements which are the subject of the Reimbursement Agreement end" terminate upon the earlier of ten years thereafter or upon reimbursement by the benefited property owners of the charges referred to in this reimbursement provision. IT TTem"ary Si, age. a. Advertising ions_ The CITY agrees to issue permits, following receipt of proper applications and fees, for a maximum of three (3) temporary subdivision advertising signs (one each for the residential, commercial and business park portions of the development) on the SUBJECT PROPERTY, at locations selected by the OWNER The signs shall be two-sided or v-shaped, a madnnmm of sixty-four (64) square feet in area per side, twelve (12) feet in height, and set back a minimum of ten (10) feet from the property line. The signs shall be removed when the SUBJECT PROPERTY has reached ninety (90) percent occupancy of the total number of residential units proposed, based upon issuance of Certificates of Occupancy. b. On -Site Directtonat Signs, On -site directional signs identifying the sales office(s) and models) shall be allowed subject to approval by the Community Development Department of the CITY, upon payment of a one-time permit fee, with said signs to be removed on or before termination of sales otfice(s). c_ Ternorary Marketing Signs. Upon payment of required permit fees to the CITY, temporary marketing signs shall be permitted to the OWNER for participation in the Festival of Homes sponsored by the Chicago Tribune. These temporary marketing signs shall not exceed four (4) feet by nine (9) feet and shall be posed for five (5) consecutive weeks at a time, not more than four (4) times a year. 18. Modpl Homes- Construction Trailers a. Model Homes. Upon the annexation of the SUBJECT PROPERTY and in advance of any final pint of subdivision or engineering approval, the OWNER shall be permitted, at the OWNER'S sole risk, to construct, maintain and occupy model units in one or more product litres being offered by the OWNER and to construct and maintain otherappurtenantfaaifities forsaid model units, including temporary sanitary facilities and systems (when a permit is received from the McHenry County Health Departrnent) in advance of the construction of sanitary, storm sewer, stone water detention facilities and water mains; provided, however, no such construction shall prejudice the power and right of the CITY to review, approve and disapprove final plats of subdivision and engineering plans for any parcel containing said models. OWNER shall have the to right to use 03-029-5274 said models, as well as their garages, for sales, safes promotions and offices for sales personnel, all as may be desirable or in any way connected with the sales of dwellings on the SUBJECT PROPERTY. The CITY agrees to allow the { OWNER to construct temporary parking facilities paved to the sidewalk with curb depressed or other appurtenances to the model units and sales offices subject to the approval of the Community Development Department of the CITY and compliance with all applicable codes of the CITY. b. Construction. Imilers. Construction storage trat7ers used to build dwelling units shall be allowed at locations to be approved by the Community Development Department of the CITY. Upon the occupancy of 80% of the units in each phase, all construction storage trailers shall be removed from that phase of development At all times during development of the SUBJECT PROPERTY, construction storage trailers shall be parked no closer than 300 feet from the nearest occupied home. 19. Underground, Utilities. OWNER shall install underground, at OWNER's cost, all new electricity, gas, telephone lines and any other utility or cable devices, lines, or conduits necessary to service the development of the SUBJECT PROPERTY. 20. Road Improvements and Contributions. A. Collector Road. OWNER agrees to construct the east -west road as depicted on the Concept Plan, with a landscaped center median, and public sidewalk on one Side and 8' wide asphalt bike path on the other. CITY and OWNER acknowledge that the utdmate design of the road w€ l have two through lanes in each direction and left and right turn lanes at street intersections. CITY agrees to allow OWNER to Install one lane in each direction, required turn lanes, sidewalk, bike path and the landscaped center median, with the understanding that additional lanes will be constructed as part of future development in the areas. Said construction by the OWNER shall ensure that the future road expansion can occur without undue disruption of the existing improvements. b. Reservation of Land for Future, Roadway Connections. OWNER agrees to reserve right-of-way necessary for the future road connections as depicted on the Concept Plan_ 1j North to the Tonyan Industrial Park. and 2) South to the property owned by William and Sylvia Lid, 2002 S. Route 31, PIN 14-1Q-432-001, as depicted on ExhrM F attached hereto. c. i-rzAaSkinall. At the request by the CITY, the OWNERS shall betesponsiblefor and pay the cost of the construction and installation of a traffic control signal at the intersec ion of State Route 31 and the proposed Collector Road on the SUBJECT PROPERTY, as depicted on the Concept Plan. These funds shall be a 03-029-5275 secured by a letter of credit prior to the CiTY's approval of OWNERS' final plat of the last phase of the SUBJECT PROPERTY, or sooner in the event the traffic warrants have been met. In the event the traffic signal is warranted prior to OWNERS' final plat of approval, no pemkts or plats shall be issued orapproved until the required letters of credit are posted. Subsequent to the OWNER'S construction of the traffic signal, the CITY shall, upon OWNER'S request, commission a traffic study at OWNERSs expense to determine whether or not other parcels have benefited from the construction and installation of a traffic control signal. If the traffic study determines that other parcels have benefited from the construction and installation of said traffic control signal, then 'in that event, the CITY will allow feimbursement to OWNER consistent with Paragraph 16 of this Agreement set forth hereinabove. 21. Limitation on C-5 Zoned Pmerty. Ali portions of the SUBJECT PROPERTY zoned C-5 Highway Commercial District shag maintain a minimum parking setback of twenty-five (25) feet and a minimum building setback offifty (so) feet, both measured from the Illinois Route 31 property lime. in addition, the uses allowed on those portions of the SUBJECT PROPERTY zoned C-5 Highway Commercial District shag . be limited to those listed in Exhibit G attached hereto. 22. Donations Contributions and Fees. OWNER adknowladgesthatthe developmentof the SUBJECT PROPERTY virg impact on schools, parks, the library and fire protection districts and other public services within the CITY. To reduce the effects of this impact, and as a condition of this Agreement, OWNER shag be obligated to pay and/or donate, orcause to be donated to the CITY, or provide improvements for the benefit of the CITY as follows: a. Annexation Fees, I. OWNER shall pay to the CITY the lump sum of $45,825 (representing $1.000 per acre zoned residential, and $500 per acre zoned commercial) within ninety (90) days foaawing City Council approval of the annexation of the SUBJECT PROPERTY to the CITY. ii. OWNER shag pay to the CITY the sum of SSso per residential unit, including single-family and multi -family units, constructed on the SUBJECT PROPERTY upon issuance of each building permit. iii. OWNER shag pay to the CITY the sum of $1,888 perresidential unitsi,056 to School District Na. 15, $769 to School District No. 156 and $61 to the Library District) constructed on the SUBJECT PROPERTY upon issuance of each Certificate of Occupancy. b. Cash Donations. 1. OWNER shall pay to the CITY certain Cash Donations per residential unit constructed on the SUBJECT PROPERTY upon issuance of each building 9 03-029-5276 permit The Cash Donations payable by the OWNER to the CITY shall be calculated as follows: ow UM( om taplow 1 Bsdroam $0 3D St, i?a5 S2ES � 8adraoma 51,784 $624 51,106 5$%, Mg MS $5,475 36xdrpome 54020 5707 it 3 i�78g !•26p 5265 i$348 4l3adr0om8 54.- S7,702 53,100 E4,685 5285 f10,385 The Cash Donations referred to in this ctrart shall collectively be referenced to as "Minimum Cash Contribution Amounts'. it. In the event the Minimum Cash Contribution Amounts, as calculated above, are less than the cash donation amounts set forth In the GITY's ordinances, as amended from time to time, an amount equal to the amounts specified in the CITY's ordinances, after adjustments as calculated above for land donations, shall be paid, ratherthan the Minimum Cash Contribution Amount provided In this Agreement. Gi. In the event the Mrs cash contftutiGn ordinance, or any otherordlrrance of the CITY relating to cash contributions for schools, parks, library and fire Protection districts, is repeated or declared by a court of law to be found unenforceable and all appeals have been exhausted, OWNER agrees to pay, subsequerti to such final court aeon, the Minimum Cash Contribution Amounts set forth In this Agreement. In the event such final court order requires the CITY or School Districts to return or refund monies paid by the OWNER pursuant to the CITY's ordinances, OWNER expressly agrees to allow the CITY or School Districts to retain the Kn#mum Cash Contribution Amounts previously paid by the OWNER It Is the express intent of the OWNER to release the CITY and Scroot Dis`icts from any IaNity or obligation to refund the Minimum Cash Contribution Amount paid pursuant to this paragraph under any citcwnsfances. c. Release. OWNER hereby releases the CITY, School Districts 15 and 156, Library District, and Fire Protection District from any and an Liability or damage to OWNER and waives the right to dtaltenge, by lawsuit or otherwise, the validity, legality or enforceability of the donations and fees set forth in thisAgreement, or the Purpose for which the money is spent OWNER agrees not to pay any fees under protest 10 03-029-5277 d. Donations DistingWL¢ d from Feet. Other than the donations specified in the f0regoing paragraphs, during theterm of this Agreement, and irrespective of any existing, new or revised donation ordinances of the CITY, OWNER shaft not be required to donate any land or money to the CITY, or by action of the CITY, to any other governmental body. Building permit fees, water and sewer connection and capital development fees, and other similar fees which are charged for specific services provided by the CITY, shall be payable in accordance with the CITY ordinances in existence and as amended from time to time, except as specifically provided in this Agreement. 1_ 's 'b ' . That portion of these fees to be distributed to the schools, as determined exclusively by the CITY, may be distributed for the benefit of some or all schools within School Districts 15 and 156, at the discretion of the City Council. To the extent any of these funds are distributed to said School Districts, they may be used for operating expenses at those schools within School Districts 15 and 156, as directed by the City Council, at the time of distribution. In the event a distribution agreement in a fonts approved by the CITY is not executed by the School Districts prior to distribution of said funds to the School Districts, the CITY may retain the entire amount paid pursuant to this paragraph for CITY use. Nothing.herein is Intended to create third patty beneficiary tights in School Districts 15 and 156 or the Library District. 2. [lnnual Adiustment. A_ t the end of each one-year period, with the first adjustment occurring May 1, 2oa3, the fees referenced in the preceding paragraphs a) ii, a) ui, and b) i, shall be adjusted upward by the percent that the Chicago Area Consumer Price index has moved upwards since December 31,toot, and every December 3l'rthereafter- Forthe purpose of this paragraph, the prig index to be used for comparative purposes shall be that index for the annual average Chicago area CPI-U, as published by the United States Department of Labor. Bureau of Labor Statistics. 23. Aoridailturaf Uses. The CITY agrees that those portions of the SUBJECT PROPERTY that have not been final platted may be used for agricultural purposes, including crop farming overthe entire parcel, and that such use may be continued as a legal nonconforming use in accordance with the ordinances of the CITY. 24. Binding Effect and Term This Agreement shall be binding upon and inure to the benefit of the parties hereto, successor owners of record and their heirs, assigns, and lessees, and upon successor mwsicipal authorities of the CITY and successor municipalities for a period of twenty (20) years from the date of execution hereof, and any extended time agreed to by amendment to this Agreement. 25. Amendment_ ThisAgreement may only be amended by written instrument executed by all parties hereto. Provided, however, in the event title to the SUBJECT PROPERTY, in whole or part, is transferred to successors In interest. future 11 03-029-5278 amendments relating to the SUBJECT PROPERTY may be made by and between the CITY and the title holders to the parcel specifically requesting the amendment without consent requited by other record owners of the SUBJECT PROPERTY. 26. Notice pftJDefault. Before any failure of any party to this Agreement to perform its obligations under this Agreement shall be deemed lobe a breach of thisAgr, the party alleging the breach shaft provide notice to the party alleged to be in default specifying the nature of said default, and thirty (30) days elapses from the receipt of said default notice without the default being cured. Notice shall be in writing and delivered via certified mail, addressed as follows. CITY City Administrator Douglas K. Maxeiner 333 S. Green Street McHenry, IL 60050 Alfred F_ Krumholz. Jr. 1000 Barton Court Glenview, IL 60025-4426 (;O-neam Homes Inc 1540 East Dundee Road, #350 Palatine, IL 60074 27, Stop Orders. The CITY will issue no stop orders directing work stoppage on buildings or parts of the development without setting forth the section of CITY ordinances of of this Agreement allegedly violated by OWNER, and OWNER may forthwith proceed to correct such vbWons as may exist provided, however, that the C" shall give notice in advance to the OWNER of its intention to issue stop orders at least twenty -flour (24) hours in advance ofthe actual issuance of such stop orders, except in the event a health, 'rife or safety emergency Is deemed to exist by the CITY. 28, 2rdinance ghgaM. Except as otherwise specified herein, all ordinances of the CITY and other applicable jurisdclions shall apply to the SUBJECT PROPERTY, OWNER and all successors and assigns in tilde. If during the term of this Agreement, the provisions of the e)dstmg ordinances and regulations which my relate to the development, subdivision, construction of improvements, buildings, appurtenances and all other development of the SUBJECT PROPERTY, are amended or modified in any manner so as to Impose more restrictive requirements, such more restrictive requirements shall be enfo ceade as applied to the SUBJECT PROPERTY, so long as such amendments or moderations are rron-disairrdnatpry in their application and effect throughout the CITY or other applicable jurisdictions. 12 03--029-5279 29_ Obligations. Ali obligations of the OWNER in this Agreement, including monetary obligations In existence now and in the future, as a result of this Agreement, shall constitute covenants running with the land and such monetary obligations shall also be liens upon the land. OWNER hereby consents to the filing of a lien on the SUBJECT PROPERTY or parts thereof for which obligations are owed when any obligations are more than ninety (90) days overdue. 30, Enforceability. It is agreed that the parties to this Agreement may enforce and compel performance, whether by law or in equity, by suit, mandamus, injunction, declaratory judgment, or othercourt procedure, only in courts of the State of Jllinois; no such action may be brought In any Federal court In the eventthat either party to the Agreement files suit to compel performance by the other, the prevailing party shall be entitled to recover, as part of the costs otherwise allowed, its reasonable attorneys fees Incurred therein. 31. Waiver. The failure of the CITY to insist, in any one or more Instances, upon performance of any terms or conditions of thisAgreement, shall not be construed as a waiver of future strict performance of any such term, covenant or condition and the obligations of the OWNER shall continue in full force and effect. ! 32. Severability. If any provision of this Agreement, other than the provisions relating to ! the requested zoning changes and Preliminary Piat described herein and the ordinances adopted In connection therewith, is held invalid by any court of ! competent jurisdiction, such provision shall be deemed to be excised hear from and the invalidity thereof shall not affect any of the other provisions contained herein. 13 03-029-5280 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date indicated above. I P McHENRX Mayor Pam a 3. Althoff Attest: . Ci Jerk 7a .]oncs OWNER AND FORMER CONTRACT PURCHASER CONCO I10 ES, INC. By: Its: 14 03-029-5281 E AEECl adttoAssumeTleyeio a ObR aft() In oouslderatioa o£ilte promises end agrcemeztis arcade i reitr, tine adegowy and suMczeazay of NAM is wUo vledged as baing r=ivad by the, ondersigoed and of the City of RofIemq 9%A8 the attachW -12dme o ZenrtAY Chicago, hm fr&ire Leffe7.OffCx a*t0b7iRaitT om that artalr; Aneyattotz Aateemerrtdated Febrxury I7, Z003 betMe); Con 0Drd Horner, A rued the C o McH—m-r- (`gtetaaso Agreement") daateti DeMOM 21, 2015 and seaeptauc@ by fibs City ofldeMnry of th'3ReplacementIOU OforeciitraferoWOdItho ROOM Agmoment;theuiuterslgnedl'rairiopotnt 7TAnd Development Corp- dDes horeby agree fo assuaare the 1) Uvaioper Obligations uaclo r the Annsxatim t Agreemeat referenced irnthe ReleaseAgrc-oment Iituitedto fat dovelolamont orthe hik oath and sldesvalk regaired pur;uantto Soodon 20(a) ofthe Annoxatton.,gre=ont and hufalt IUM Of the -ftao signal requited pu=mt to Seotion20(o) of tho AnAexatfon Agreementwbloh shalt ali bo oonsh-aotod and lbstallcd imraedlatalyfoAotvingttaffto signal Warrants being met as Sattforth in SCONG1120(a) oftho Annaxaf m Agw meat. Tho C1€y of MoHeatry attd Corp. acknowledge that tho ab ng-tvto (2) lane eolieotor road known as is enmplete as cauxently built and is notxtOred to bo w1donod to fouy (4) lanes and nothing in this Agreement shall oxCUse tho DovDloper fronp cotnpfylzigivithflbs terms ofthaAnnexatiau Agraemsut 3vithxagflrd to porttons of thapmpet-tyit ' otans wlalah is fate subject of fire Anuex�tion A�eemszit. A copy ofthls Asmmption Agreement shall be filed bytbe City of Ivlc�etztry vrirtz the MaHetiry CoagtyRecorder ofAeecEs as affectipgtba PmP�y legallydesorr"bed ou the ati�liad Fxiaiblf A. r - . Pta6ic Palate beveloputout (3orp. - r� _.--------------------------------------__--__:___------r --__-=gay;--- - -- - •--- -------------- --- praldb6t L Data fRl�12lr EXHIBrr W-7-P r McHenry County Ramder PF7..IFsK W Ows f 2Dt8 MW7M 1 C d to Aft to Assmie PnTLqReE C§49atioDz Parcal 1. That part of the Southeast Quarter of Seetloji 10, Town!-ilitp 44 North, Range 8, Emt of Meridian conimenting at East Quad of 8 eeflun 10; the. Third Priivipal �AerIex CDrnqr o thence South 89 degrees iO rairnaes 17 seconds West along the North line of the �Vla Northe�t Quartet` of said . Southeast Quarter,, a distance of 949.97 ket to the point of beginning; thence South 00 66gmes 31 u7iinutes.38seconds East, ndistance of3g5-22 -feet; thence South 19-degrees- Orninutes 10 seconds East, -a distance of 100.310fbet; flieuc e - South. 00 -degrees � 11 Mimin tes 38 seconds East, a distance of 4 M, 0 1 feet,, thence h South 26 degrees 29 minutes 53 seconds West, a distance 'o f 423,96 feet; 4ealc e South 11. degrees 02 minutes 43 seconds W6st.,---a distance of 8-0.00 feet; thence North 78 Afgrees 57 minii es 17 secoacis Weft, a distance of55.79T feet to apoiat of curvalum; the-neaweaerly - 226.55 feet aloag a i,-trveto the right having a radfus of 840.00 feet, the c6dof said curve bears North 71 degrees 13 numtes, P-. seconds West 225.0 'fot to a point oj' tangency; thence North 63 degrees 30 xnluutcs 07secands West, a distance of 181.-0 0 feet; thence South 26 degree* 29- minutes 53 seconds West" a Aistance of 169,64 feet to the South line of the Northwest Quarter of the said Southeast Quarter; theneq Scuffi 89 South line, a distana of 403 99 feet degrees.30 minutes 45 seconds West along said So M to a Wa lina tal Hw lying 20 feet easterly of and parallel viffi the eastexiy Right -of- YOM is'S e Fnute 31; theme NoiM 26 degmes, 29 minutes 53 seconds East alOag said parallel- 1*, a distance of 148 I.S3- feet to `the NoAh tim of the Notfficast-Quafter of the said 9Wfhb,-LSt Quarter; thezt;PNnrth RR domes 20 mha�ites 17 seconds East q.1on-, said North ilac, a distanw of4b.91 feet to 66 p7dmt of begim Ing, V - -atres 6re, r IeM -Ont tag '0 hTd -Offhe, Southeast Qua-rter of Se6tian 10, Township 44 Noxtb, Ranga 8, East of Park Quarter Coraprof said Section 10; ttdnce South 00,6ejVees31 m5Autes 39 secon& East aOT19 the Est lien Of the Northeast. 1he, Ater of sdid S 04east Quarter, etto the Northeast corFser 6f the SDlathead Quarter; 12*ce -SMI&OD -1st Quarter said: O?tbLf� Southeast minutes 02 seconds Fast long the East line oi the Southeast Quartertf the said SD'affi6gst Q11Mt04 a dWsnoe- of 432-17 feet;. fheaqt lqo.-& 99 �degr= $7 enutes 56 seconds West - - - • a distance of 50.3fl feet to a paid of ctzr t�'dture; thence Neste rly 568.31 feet oag. a curve to- the 34ght having a 41 $ 40.00 feet the Ghord'of said curve bears Noi#li 70 degxeas 3s Mkltes0114&rCst557.53 feet to a POW -of 7ta'6RenPY; thtace Nor& 51 degrees 06 ssuoads -Wcst, u distance pf 101.69 faet to a polnt of cumtmc; thenctr feet OMMIO thC left bR'VilLg a T.aclius of 710.06 feet' the lJorthweEaerly 343.91 along a chord of said =vebears )4QA65. degrees 04 mjuutes 42 s=ozds.'Wost340.56 fed to a point of tamgear,)�, &eiict North 4 degrees 57 MWAes 17 sM011165 West,a dis4m= of . North u Aegrees.02 ni�mutes .43 4 distance of 80.00.,feet; 6-T40 :bet; th* 0 tlsenoe NGdh 26 den em 29 mijiutes 53 seconds East: a. dj5taneo of 42196 %=-t fimcp North 00 de-trre&z 31 minutes R seconds West a &stanw of 403,01�eq thr!=North 19 10 seconds aZishmm of 101�0 feet; thmm N 400degrees d0!ZrCeSl4 MiUAeS xthNortheast west, line of the ' 31 minutes3g seconds Quarter of said 8 oufhwt Quarter; -ftnCe It 89 degrees 20 minutes 17 seconds; East along sa3d North Rae, a &stame of 849,97 feet.to the piat tof beglnnin�, Cont 321.27 aOreA mote or less. POOR QUALITY FnR IMAQ04G 3 03-029-5282 I i t Parml 3 That, part of the Southeast Quador of Szcf qa I 0,'Townsbip 44 North, Range 8, Hastof C Third Mac, I al M. I all Oordnienci h e'ldl U,- at the -t ast Qgartcr -Co r�tr 6-f s aid S e cHoia I i% thence South Widr-grees, 31 A-dautes 3 9 secoads East along the East Anit, Df1he NortheaA Quaver of the said Southeast Quarter, a distance of 13M.07 feet to the Na.rtheast earner of the Southeast Quarter Ofthe'said Southeast Quarter; ffievze South 00 degms 32 minutes 32 s(-,wnd-q Easy Quarter, ftdistance -of 432.17 f,* to the poirit-of bergimndng; tldcace.cLntIhuhig South On degrees 32 minutes 32 seconds pb-,;t ajoj% the sand Bastjin6, EL distatice of 8,99--74 feet to the SoLuthmt-omnei•of said Southeast Quarter; thence South 39 d6gkees 37 minutes 52' $eco,#ds Wca alOnq the Bbuih line tithe Southeast-Quartor qf- the. sald Satithdast Quarter, a distance of 1-333-89 feet to the Southwest corner of the Sp:jjj Southeast. Quarter, thence North 00 degrees 21 minutes 03 seconds West ajolig th-,',yes-t line of Southeast Quarter of the said Southeast Qua'16T, a diSUMe of 1319. f 6 feet to. the Northwest comer 0f fE C'- S otfflAeast Quarter of the said Southeast Qiia-rlex , thence South 89 degrees 30 mirVes -45 seconds West tIong the South We of the, Northurest Quart�r of the. said Sc�utlieast Quarter, a distance af2Q351 feet; Thence I�Io 26 degrees 279 idumtes 53 80 miautoz 07 s=.qds thence. easttrly 226.55 feet kot� f said -curvy bdars S014th 71 oftangencr, thmcesouth7a distance bf 23r1 fed to a point of aurvataw" right having a Md!155 of 7 10-00 Ie:64 the, chord 6f sald ourve bears South 65'deg=s- 04 minutes 42.s=nds East 34M6 fWto alcoirit of tangency; thence South-31 dues .12 minutes 06 s=n& East,a &big= -of 1., .69 feet to a point of mmatum; *mw eastarty 568,'3 1 fod along ourve to the left having a iodine of 840.00 feet, the chord. of sext CU M­boars'South 70. 6;gmeg 35 Mkutcs 01. seconds -Last 557.53 feet to m p6int of tangency;theme South 89 degrees 57 whin te. s 56 SecotL& East: -a disvmcc of 5-0430 feet to the fne ipoint of beginnin& omitaki4g 35,ol acres ni-ara of I=. NOR 4 03-029-S283 F*VvTierican COMML-fliv)/ BANK &TRUST December 18, 2015 IRREVOCABLE LETTER OF CREDIT f40. 15-230 BENEFICIARY: CITY OF MCHENRY, I,LUNOIS AN ILLNOIS MUNICIPAL CORPORATION 3.33 SOUTH GREEN 9fRF= M,CI•IENR.Y, ILLINOiS 60050 APPLICANT- PRAIRIE POINTE LAND DEVELOPM0IT CORP. 28955 W. ROUTE 173 ' ANTI:OCH, .ILLINOIS 60002 AMOUNT: USD $418,OQ0'.00 (FOUR HUNDRED EIGHTEEN THOUSAND AND 0,0/100 US DOLLARS) EXPIRATION: DECEMBER 18, 301b, SUBJECT TO TERMS BEWW GENTLE, MtN: WE HI;RPBY ESTABLISH OUR IRREVOCABLE LETTER -OF CREDIT NO. 15 230 IN YOUR FAVOR. FOR THE ACCOUNT OF PRAIRIE POINTE LAND DEVEIAPNNT CORP. FOR A SUM NOT TO EXCEED FOUR HUNDRED EIGHTEEN THOUSAND AND. 001100 US DOLLARS `f$4l &,WQ.00) AVAILABLE BY YOUR DRAFTS AT SIGHT IN FORM ATTACHED HERETO AS I~3QH;.BIT A, ACCOMPANIED BY THE FOLLOWING DOCUMENTS- CERTIFICATE- IN THE FORM ATTACHED HERETO AS EXHIBIT B, EXECUTED BY AN AGENT OR OFFICIAL OF THE CITY OF MCHENRY. FORTY-FIVE (45) DAYS PRIOR TO THE EXPIRATION OF THIS IRREVOCABLE LETTER OF CREDIT, WE-VdILLNOTIFY THE CITY OF MCHENRY, MCHENRY 1ViUNICLPA.[, FENCER, 333 SOUTLI GREEN STREET, MCHENRY, ILLINOIS 60050,. ATTENTION: CITY' CLERK, BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OF THE IMPENDING EXPIRATION DATE, IN NO kVENT SHALL THIS IRREVOCABLE LETTER OF CREDIT OR THE COMMITMENT EVIDEKCE1) BY IT EXPIRE WITHOUT SUCH 45 DAYS -NOTICE. THE WDRK OR IMPROVEMENTS. COVERED BY THIS IRREVOCABLE LETTER OF .CREDIT ARE: 'THE PUBLIC IMPROVEMENTS FOR CITY OF MCU NIIY, MCHENRY, I T INOIS CONSISTING SPECIFICALLY OF THE SITE IMPROVEMENTS SET FORTH IN THE AGREEMENT TO ASSUME DEVELOPER OBLIGATIONS SET FORTH ON EXHIBIT C ATTACKED HERETO AND INCORPORATED -HEREIN BY REFERENCE. WE EXPRESSLY A.GRLE THAT OUR OBLIGATIONS UNDER THIS IRREVOCABLE LETTER OF CREDIT WILL NOT BE -IMPAIRED, MODIFIED OR AFFECTED BY ANY EXTENSION OF TIME WITH RESPECT TO, M ALTERATION IN THE WORM OR IMPROVEMENTS COVERED BY THIS TRUVOCAI3LE LETTER OF CREDIT, AS DESCRIBED ABOVE. WE HEREBY WAIVE NOTICE OF .ANYAAID ALL SUCH EXTENSIOA4S OF TIME AND ALTERATIONS. EXHI IT 1290 Lake AV6nUC * POSt Office BOX 1720 * %Voodstock, 1.111n6is 60098 Phone 815-338-2300 * Fax 338-9289 * email q amcflmbank.com I WE FIEREBY AGREE WITH THE DRAWERS, ENDORSERS AND BONA FIDE HOLD'En OF ALL DRAFT'S DRAWN AND DOCUMENTS PRESENTED UNDER AN IN COMPLIANCE WITH THE TERMS OF THIS IRREVOCABLE LETTER OF• CREDIT, THAT SUCH DRAFTS WILL., BG DULY HONORED UPON PRESENTATION TO US, W, W ITRIN 5 DAYS OF THE DATE ANY DRAFT DRAWN IN CONFORMITY WITH THIS IRREVOCABLE LETTER OF CREDIT, IS PRESENTED, WE FAIL TO HONOR SAME., WE AGREE TO PAY ALL ATTORNEYS FEES, COURT COSTS AND OTHER EXPENSES INCURRED BY.T[TE CITYOF MCHENRY INENFORCING THE TERMS. OF THIS LETTER'O'F CREDIT. TIRS LETTER OF CREDIT SHALL BE DEEMED A CONTRACT MADE UNDER THE LAWS OF TFIE STATE OF ILLINOJS AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH SUCH LAWS. THE UNDERSIGNED AGREES. THAT VENUE FOR ANY ACTIONS BROLJGT-IT WITH RESPECT TO THIS LETTER OF CREDIT SHALL BE IN THE TWENTY SECOND JUDICIAL COURT, MCHERRY COUNTY, ILLINOIS_ THE UNDERSIGNED REPRESENTS AND WARRANTS THAT THE MDERSIGNED-HAS FULL POWER AND AUTHORITY TO ISSUE TEAS LETTER OF CREDIT, AND THAT ALL CONDITIONS PRECEDENT TO THE ISSUANCE OF THE LETTER -OF +CREDIT HAVE BEEN SATISFIED. VERY TRULY YOURS, ,A,.MERLCAN CO IV `LAITY BAND & TRUST ANDY HARTLIEB,'PRESTDENT SIGHT DRAFT EXF IBIT.A TO WERICAN COMMUNITY BANK& TRUST IRREVOCABLE LETTER OF CREDIT NO. 1 23Q DATE TO: AWRICAN.COMMUNITY 13ANK & TRUST 129.0 LAKE AVENUR WOODSTOCK, ILLINOIS 50099 AT SIGHT, PAY TO THE ORDER OF THE CITY OF MCHUNRY, THE SUM OF $ US DOLLARS (USD VERY TRULY YOURS, CITY OF MCHENRY BY. TITLE: DRAFTNO. DRAWN UNDER Af,9 RICAN COMMUNITY BANK & TRUST IRREVOCABLE LETTER OF CREDIT NO. 15-230 DATED DECEMBER 18, 2015 FORM OF'SIGHT DRAFT APPROVED ON 1211812015. AMERIG ANK & TRUST BY,, AN Y 1 L1 , PRE$IDB'NT E)GHB IT 'B TO AMERICAN CO'MMUN [TY BAND & TRUST IRREVOCABLE LETTER OF CREDIT NO.15-230 CERTIFICATE DEFECTIVE MATERIAL OX WORKMANSHIP THE CITY OF MCHE110,Y, AN ILLINOIS MUNICIPAL CORPORATION, HEREBY CERTWI-98 AS FOLLOWS-, I. THIS STATEMENT IS EXECUTED BY , WHOSEPOSITION ! T OR TITLE IS , AND WHO IS DULY AUTHORIZED TO l_-- MCUTE TIJIS STATEMENT ON BEHALF OF THE CITY OFMCBENRY. { r 2. THIS STATEMENT IS MADE AND DELIVERED TO OBTAIN PAYMENT AGAINST' .AMERICAN COMMUNITY BANK & TRUST LETTER OF CREDIT NO,15-230, DATED DEC Eh BEIR 18, 2DI5. 3. THS WORK OR IMPROVEMENTS COVERED I3Y THE AFORESAID IRREVOCABLE LETTER OF CREDIT ARE: COMPLIANCE WITH THAT CERTAIN ASSUWTION OF CERTAIN DEVELOPER OBLIGAT10N9 SIGNED BY PRAIRIE POINTS LAND `i i DEVELOPMBNT CORPORA'nON AND DATED DECEMBER 18, 201.5; A 4- ;. THAT ALL OR ANY PORTION OF THE SAID WORK OR IMPROVEMENTS HAS NOT BEEN COMPLETED OR DOES CONFORM TO THE PLANS AND,$PECIF'ICAT[ONS } .NOT APPROVED BY THE CITY OF MGHENRY ORTO THE APPLICABLE ORDINANCES AND J REGULATIONS OF THE CITY DF Mf�HENRY, QR 5. t THAT AMERICAN COMMUNITY.' BANK & TRUST LETTER OF CREDIT NO. 15 230, DATED DECEMBER 18, 22015 IS ABOUT TO EXPIRE AND HAS NOT BEEN .RENEWED. DATED: CITY OF MC14ENRY BY: TITLE: FORM OF CERTIFICATE APPROVED ON DECEMBER 18, 2015. AMEItICAN C �' A TK & TR1 TS3` BY: A Y I B, PRESIDENT Aveementto Assume Developer Obligations In consideration of the Promises and agrocnaents made herein, the adequacy and sufficiency of which is acb owledged as, being rooejWd J)y to pud ersigned and la hither consideration of the City of McHe=y Signing to attached Release of f4emur Chkago, Jhc. from Letter of Credit Obligations from that Certain Anne=dan Agreement ckdadFebruzuy I Z 20013 between Con4ord Homes, hw. and the City of3ficRenry C'Rdlea-se Agreement) dated DwembQr 21,2015 and acceptande by the City of McRenryof the Replacement letter of etedit referenced In theRelme Agmemmit the undersigned Prairie Pointe Und Development Corp. does hereby agree to assume the Developer Obligations under the Annexation Agreement referenced ire the Release Agreement limited to further development afihe bike. path and sidewalk reqWjrd pursuant to Section 20(a) of the Annexation Agreement and installation of the traffic signal required pursuant to Section 20(c) of -the Annexation Agreement which shall all be constructed and installed immediately following tnffc signal warrants being 43 satfbithingection20(6)ofthe Annexation .Agreement. T4e, City of MqRemy and Prairie Point Developmekt Corp. admowledge -that the existing two (2) lane collector- roadknown as Veteran's Parkway is complete as currently built and is ncvtrequirrdtobavvioenedt3four (4)lapMand nothing intMs.kgTeeinentshall excuse Teveloper :&Oun CQmpIyjn&'!A% the'terim of the Annexation Agrement with regard to pardons of the property it avais Yibich is the subject of the Annexatioft Agreemgut_ Aoopy of this Assumption Agreement shall be Medty the City of mcamny Withthr.McHenr CmyintRecorder of Deeds as affecting the properly legally described on the attached Exhibit A. y Prairie Pointe Developmegt Corp. President Date Parcel That part of the Southeast Quarter of Section -10, Townsb1p 44North, Range 8, EPA of the 'Third Principal Mcr4,'m con=,eiidqz at East QuarterCiDm§r of§aidSectlron 10; thence South'39'degrws20 rruautcs 17 seconds West along tbiWorffilifte of the Northeast Quarter of said SoutheastQtwtti, a distaace of 09,0 feet Wtbd point of begluixting;lhtaccSouth GO degrees 31 minints.38 seconds East, a distance of 395.2Z -feet; thence South 19 depxr= 14 minutes 10 seconds East, a distance of 100.30.feet; ihence South 00 dpgyees3l fninutes38 seconds Easi, a & ice of 403.01 recttht:nop Souil-L 26 degrees 29 minutes 53 seconds Nest, adistance bf 423.96 fW4 thence go-tith, I I degrees 02 raioutes 43 seconds Wbsf,-a distance of 80,00 feet; thence North 78,degrees 57 'mini tes 17 secon4s. Ww- adistance of 55.7.9 feet to apqiat of curvature; thcawweg tarly 226.55 feet aloag'a. turve to the right bavipga radius of 840.0DRet, the c6M ofsaid cuv5 bears North 71 degrees 13 miwte* 42 seconds West 22-5.86 'foot to a poirit of tangency; thence North 63 ilegree* 30 wiinUteS 07 seconds _W;ssj, -a ffistaade of 19 L-9 D feet; thence S ouffi 26degr= 29, minutes 53 seconds West a Aistar ce of 168,6.4 feet to the south line of the Northwest Queer ofthe said Saifflieni Quarter; thence South 80 degre,es 30 mikiutes 45 seconds West alma said .South line, a. distance of 403.99 feet to a jine..Ving.20 feet easterly of and parallel w&-fhe easterly Right-of-Vayof is o Hb.' �. i, ' .State Route 3l; them North 26 degrees 29 rallmt ss53 seqiDnds East along Wd par4leljim, a distameof 148I.53 feet tothe Noith liru,- of the Nofffiewt-Qparter of tie said soufhbast Qtmrter, thente, North 89 degrees 20 minutes 17 seconds Fast-*nck said 144orth haze, a distance- of413.81 feet to the fcAnt of beg."g, cantaiiiiagg 21,65 IOMS more or less. Thal part of the SOU±heast, QLmi-tOr Of Sz6fim iojoymship 44 Northi Range 9, East of thehe East QLarter Corner of said section 10; Third principal me�jdj= beimning.at t tgeb= Soua,00 degree$ 31 Mjunte$ I.SF sewnds.East Gong the East line d the NbAiaRt Quadez of the, said Southeast Quarter, a ffistaw& of 1324V to the, Northeast t,, omar - of the Southeast Quarter ef the said So utheast- Quadw, IIL6nta -.8outh 00 &gra ei'39 IniUUtCS 3Z seconds Bastd:ongft Fast Ji4a o:ftbip Southeast Qudevofffie said soutl6ast a distance of 50.30 feet tar a point of tuxv/aturc; theme westerly 5683.1 fbet AlOn"ag. a dulve to the right having . ing a -radius of 840.00 fcet, the chord*of said- ouvo b1=,%XoPdi 70 6e9=9 35 njinites 01 seeonW61557-53 feet to a point-ofUnFn1,y; %exicel-qorat 51 degree & 12 minutes 06 swwds Wes, a distance, of 101.69 feet to apciiat &jt`cumaiwe�;.thend.� _ELd,rfhwcstvHy 343,91 fact Eaonga cuvdto the -left hav a radius of 71100 feet, the ohorsl dif said curve bears North 5 d�grees 44 aninutes 2 secrwds Wst 340,56 feet to a poi"T 67A) feet, ffieD�e North I I d egreis.02n;mutes 43 seconds East, a �dlr tance of 8100 feet; 6enze North 26 d6gr= 29 -miuuCm 53 secuads East, a distance of 423,96,feet, thence, s -a �;ecqads,West, a distance- -of 403, 01 �eel 'thehce_ . NO& 19 North 00 degrees 31 minutes 3 degreas 14 mirrutes I a seconds West, a-ffigance of 100.30 fee4: ihencr, 3 orth 00 dt5grees 31 minute$ 3 8.oecconds West a:distaace of385,22 feet t0lhc North line of the Northeast carter of said southeast Quarter; then= North 89 degrees 20 minutes 17 seconds Bast arig said North line containing l 32.27 acres more or IM, P'OORQUALRY FMR_ IMAGING 8 03-029-5282 Parcel 3 z That part of the Southeast Quarter of Sect on 10,Township 44'NoEth, Raqge 3, East of r $ v t the Third Mncipal &I Meridian commencing at Fast Q� Iarter Ccarb-tr of said Section 1 a;. Faa►rly thence degrees 3 � ztunt�tes 39 sect�rids Fast along South 00 d b the East line of the Northeast R,es4dEn�aF r; Quarter of the said. Southeast Qualier, a dL_twce of 1 s24.07feet to !he Northeast carer of the Soutth=t QUEeter of the said So�eagt Quarter; thence South Ot? den ees 3 ` - rnizxuees 32 seconds East IAng the,st'line of t4.e Southeas Quarter of e said St 104l a.st QuUztcr, a distance of 431.17 feet to the poj:at•ofbegiruu-ag; theum rontinuing .South 00 degrees 32 Minutes 32 seconds East along the said line' a distance of 889.74 feef to ` the Sc4theast,corner•of said Southeast Quarter; thence SC-11 �.$9 degrees 37 minutes 52 seCcocls West along th✓ St�utltluie of Svutheag Quarter of the. said Sohtheast Quarter, a distance of 1333,$8 feel i the l ortti west cvrrrer of the said Southeast Qirart,-r; thtnce Norilx deices 21 Minute 43 setocds WCSt slang the WeA M-le of the Southeast . Quarter of the said Southeast Quarter, a distome of 1319.16 feet to 11W Northwest corner .of the S oirfheast Q tefi Of .€he said Southeast Quarter;;hence South 89 degrees 0 minjites 45 serunds West along, file South line of thcNorffiwest Quarti�3r Df the.said Southeast Qijerter, a distance ofW S1 feet; theaM 1Tmth 26 d;V=s 29 minutes 53 s�conc3-s � adistanceof 1&S.64feet; fl�ence.Sozs1h.63 deb ees3:0.zninutes tt7.secorEds - Fast, a distance of 191.90 feet to 8 point of cur Wituret .tbeace easterly 226.55 ft�,__t along n curve to the1eft ha ing a radata of M.00 felt, the chord of said curse b6gs South 71 degrees 13 xu m#zs 42 seconds East 225.86 feet to a point oftatic-ency; tbtace• South 78 dexcee& 57 min?.ztes 17 s=nds Fast; a distance of 123.19 feet to. a point of out�rattlr..; thence soufheasterly 343_91 t;a qr a mrye to the right having a nadir s of 71 Q.00 feet, the chord 6f said u=e bears South. 65 deg=s 04 minutes 42 seconds East 3��56 feet i a a pow of bmg�, icy; thence Sauff r 5}. degrees 12 minutes 06 seconds Easfi a distan��f 101.£9 Doet to a polgt ofcur`Yature; tbeace easterly 568:31. feet along a cum to the.left having a taiuis of MOO feet., tie chord cif said 6u ve bears South 70 .degrees 35 mtautps 01 seconds fast 557.53 feet to ap61nt of'tangeucy; tlier�re South 89 de,�ees 57 rr„nutes �6 seconds Bata distance �f 5 d-,30 feet tG the tha po t of begffird Ctlutah�izrg 35"01 acres m6te or less. 4 03`029~-5283 ' � o 7AMerican COMMM10ty i BANK & TRUST I AMENDMENT TO IRREVOCABLE LETTER OF CREDIT TO: City of McHenry 333 S Green Street McHenry IL 60050 RE: LETTER OF CREDIT NO.03-061 Prairie Pointe Land Development Copp. 420 N Front Street Mc$einry1160050 Please be advised that our Letter of Credit No. 03-061, dated Decemmber 19, 2003 in the amount of $1,255,662.50—and subsequently reduced to $501,811.00— issued to you is hereby amended as follaws: The Letter of Credit is hereby extended until December 30, 2007 All other terms and conditions remain unchanged. ` 11iYJ.J.i1111.t11V V1Y11Y11 BY: Andrew T.: artiieb, T DATE: December 30, 2006 ' EXHIBIT 1500 South Route 31 *Post OffiCO BOX 970 Mcl-tenry, lilinOis 60051.0970 Phone 81 s-38s-sss6 * FaX 815-385-5557 email g amcombank-com December 19, 2003 City of McHemy 333 South Green Street McHenry, .111inois 60050 GUARANTLA E OF MATERIAL AND WORKMANSHIP YRRE'VOC.A13LE LETTER. OF CREDIT NO.03-061 Beneficiary: City ofMcHeivy, Illinois an Illinois Municipal Corporation Applicant: Prairie Point Land Development Corp. 420 North Front Street McHenry, IL 60050 Amount- $1,255,662.50 Expiration: December 31, 2004 Gentlemen: We hereby establish our Irrevocable Letter of Credit No. 03-061 in your favor for the account of Prairie Point Land Development Corp. for a sure or stuns not to exceed ONE MILLION TWO HUNDRED FIFTY FIVE THOUSAND SIX HUNDRED SIXTY TWO AND 501100 DOLLARS (U.S.$I,255,662.50) available by your drafts at sight in form attached hereto as Exhibit A, accompanied by the following documents: Certificate in the form attached hereto as Exhibit B, executed by an agent or official of the City of McHenry. Forty-five (45) days prior to the expiration of this irrevocable Letter of Credit, we will notify the City of McHenry, McHenry Municipal Center, 333 South Green Street, McHenry, Illinois 60050, ATTENTION: City Clerk, by Certified Mail, Return Receipt Requested, of the impending expiration. date. In no event shall this Irrevocable Letter of Credit or the commitment evidenced by it expire without such 45 days notice. The work or improvements covered by this Irrevocable Letter of Credit are: the public improvements for the Prairie Point Business Park, McHenry, Illinois, consisting specifically of the public infrastt'ucture improvements including sewer, water and the improvements at the Prairie Point Business Park. This Irrevocable Letter of Credit is established to insure against defective materials and workmanship in the construction of the above described improvements. 1290 Lake Avenue * Post Office Box 1720 * Woodstock, Illinois 6009a Phol-w- 815 338-2300 * Fax 338-9289 * email Q ameonibank.com Page Two We expressly agree that our obligations under this Irrevocable Letter of Credit will not be impaired, modified or affected by any extension of tine with respect to, or alteration in the work or improvements covered by this Irrevocable Letter of Credit, as described above. We hereby waive notice of any and all such extensions of time and alterations. We hereby agree with the drawers, endorsers and bona fide holders of all drafts drawn and documents presented under and in compliance with the terms of this Irrevocable Letter of Credit, that such drafts will be duly honored upon presentation to us. If, within 5 days of the date any draft drawn in conformity with this Irrevocable Letter of Credit, is presented, we fail to honor same, we agree to pay all attorneys fees, court costs and other expenses incurred by the City of McHenry in enforcing the terns of this Letter of Credit. This Letter of Credit shall be deemed a contract made under the laws of the State of Illinois acid shall be governed by and construed in accordance with such laws. The undersigned agrees that venue for any actions brought with respect to this Letter of Credit shall be in the Nineteenth Judiaral Circuit, McHenry County, Illinois. The undersigned represents and warrants that the undersigned has full power and authority to issue this Letter of Credit, and that all conditions precedent to the issuance of the Letter of Credit have been satisfied. This Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (1993 Revision), International Chamber of Commerce, Publication No. 500. American nil Banc & Trust And ew T Hartlieb President Exhibit A to American Community Bank & Trust Irrevocable Letter of Credit No. 03-061 SIGHT DRA)i T Dare: , 20 TO: American Community Bank & Trust At sight, pay to the order of the City of McHenry, die sum of Dollars ( ) CITY OF MCE ENRY Bar Title Draft No. drawn under American Community I3auk & Trost Irrevocable Letter of Credit Nro. 03-061, dated December 19, 2003 FonnOfSi htDraftA roved on e_cGvsr bP.t' / 9 , 20 D� Exhibit B to American Community Bank & Trust Irrevocable Letter of Credit No. 03-061 CERTIFICATE PE1ECTIVE MATERIAL OR ��'ORKtM1AhTSFIIP The City of McHenry, an. Minois. municipal corporation, hereby cedi&es as follows: 1• This statement is executed by whose position or title is and -who is duly authorized to execute this statement on bchalf of the .City of McHenry. 2. This statement is made and delivered to obtabi payracut against,(inscrt Ba' nk's"name) Irrevocable Letter of Credit No. dated .20 3. The NvorL or improvements covered by the aforesaid irrevocable Letter of Credit are: as shown on the followingylaos or specifications submitted to the City of eHenry 4. That all or any portion of the said work or improvements has not been completed or does riot conform to the plans and specifications approved by the City of McHenry or to the applicable ordinances and regulations of the City of1vIcHeory. Dated- , 20 CITY OF WHENRY Title Form of Certificate Approved on- �C 200:3. sawn ads' s 1 l _J iON PW L of .FfB 1 0+ FIVE- PLAT #9�� i � OF PRATE POW MESS PACK BPJAt A b49G1 IN or P1J8 QT TA► sp OI sfClNlff IV. 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Ah�r Yir��atf�trr Grdrr+aWfrwr rrrd virlr*Irx[ rr�r►af.daa. ;;Y/r 7b- O rrr r� aM� af�.• ka.k a�wMr M+arolir4P'w ,,/tart tr#aW.J grYfrarafr.wr IrrrrY "a • :rYr•rAYpwM1+'br aAWAAI emit-f amleara.r a+AelaraafellIKaMP'ze +nieanaao-AaA agleDsm aarrear �mfa• oiAfoa surety tuno A�W1{y�lr MOMAT Merue j '99ra►WO W rgM.trr.i m.KwMaalrrr !ry'.dlofdl k.�6fkr7aY9t�4Y tan, a/�Iae.rrgaaarar,r IIOrY�da4MMW�rRW r�Urla r di awl r��iaia`.tlrr'lewdri�«i��r��r YMAf Y.wY4.rire�Spimr arq.M4f [It;� bw.li idtia•e tat aa7rrf rrrrrr ay.6Wa. r•1+ trait Yrrtra+•Mat ari rrwArre rwrr our /pr �MY Y W Lr+OpM la. ly/ r0oer� tM.at 7!M[fAYMYrirdlw t[ rgfr 6N+r�;ftr1�/4t■4 Ya�alfi Jhr K rpl.taaa°�gr.� �Y C� Yr�gAyaOr 371 m�ol nva[cAae OF (� {tA� IFl FM FgfYtE' aam A CRY CP dldM, LM HK fw MI Derik Morefield, City Administrator McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 dmorefield@ci.mchenry.il.us The City of McHenry is dedicated to providing the citizens, businesses and visitors of McHenry with the highest quality of programs and services in a customer-oriented, efficient and fiscally responsible manner. REGULAR AGENDA ITEM DATE: June 3, 2019 TO: Mayor and City Council FROM: Derik Morefield, City Administrator Ross Polerecky, Community Development Director John Birk, Chief of Police Troy Strange, Interim Public Works Director Carolyn Lynch, Finance Director Bill Hobson, Parks & Recreation Director RE: Authorization for the Mayor to Execute a Letter of Intent with Leopardo Companies, Inc. for the Completion of a Capital Program Audit to identify cost savings for reinvestment to address the City’s capital improvement and equipment needs. ATT: Presentation Material Letter of Intent AGENDA ITEM SUMMARY: The purpose of this agenda item is for the City Council to consider authorizing the execution of a Letter of Intent with Leopardo Companies, Inc. for the completion of a Capital Program Investment Grade Audit to identify opportunities for cost reductions, costs savings and reinvestment as an opportunity to address the city’s capital improvement and capital equipment needs. Two items of importance should be noted. First, that the completion of the audit itself is of no cost to the City of McHenry. Leopardo guarantees that they will develop a budget that is cost neutral or better for implementation. If the City chooses not to implement the developed program, only then is the city obligated to pay Leopardo $50,000 for reimbursement of services. If however, the program is implemented Leopardo will serve as the City’s “general contractor” for the implementation of identified improvements through a Guaranteed Performance Contract. BACKGROUND: On December 3, 2018 Leopard Companies, Inc. presented a strategy to the City Council that is being implemented by public bodies across the country as a means to analyze energy and operational cost savings that can then be reinvested to address public facility and public equipment needs. In summary, the city is able to draw upon the breadth of expertise and knowledge of Leopardo to conduct an investment grade audit of specific municipal expenditures to determine opportunities to realize costs reductions/savings that can then be redirected to meet existing and future needs related to public facilities (e.g., municipal center/parks garage roofs, various facility HVAC and maintenance issues, etc.) and a realistic replacement program to address vehicle/equipment replacement needs. Three primary issues were brought up by Council as concerns at the December 3, 20 18 meeting – 1) Why can’t city staff conduct this analysis and develop a program of costs savings, including a vehicle/equipment leasing and replacement program, and why can’t the city just bond for these improvements; 2) Why should the city use Leopardo C ompanies, Inc. and not go through a Request for Qualifications (RFQ) selection process for services; and, 3) If the investment grade audit is no cost to the city, how does Leopardo profit from the project? These are addressed as follows: 1. Simply, City Staff does not have the expertise or time to conduct the level of assessment that is required. Leopardo’s 40+ years of experience and nationwide contacts ensures that the city is able to leverage the most competitive pricing to realize cost savings and undertake building improvements and vehicle/equipment leasing costs. Bonding for the improvements identified by Leopardo would cost more than what has been proposed by Leopardo. 2. While the city could choose to complete an RFQ process, the result would be the identification of a list of qualified firms that we would then negotiate a pricing contract with. It would not guarantee a lower cost. In addition, there is no requirement for the city to conduct an RFQ process for the selection of a firm for these services. This is a professional service. Given the depth and quality of Leopardo’s feasibility study and the breadth of Leopardo’s expertise to address multiple areas of our opera tions, City Staff recommends entering into an LOI with Leopardo without expending the additional time and City resources to conduct an RFQ. This will allow the City to realize savings and capture the value of this program right away. 3. Leopardo will make money by serving as the General Contractor for identified public facility improvement projects. This cost will be factored in to the analysis and be paid through realized cost reductions/savings. The city benefits from this relationship because Leopardo will be able to manage and implement the overall program on behalf of the municipality. Think of it as building a house, Leopardo will manage all of the individual contractors to ensure that the improvements are coordinated. Now that these questions have been addressed, the item is coming back before Council for consideration, with a Staff recommendation to approve moving forward. ANALYSIS: As Council is aware, the City of McHenry is facing a significant financial dilemma regarding our ability to fund current and future capital improvements. In fact, at this point the City has kicked the proverbial can down the road for so long on some items that catastrophic failures on vehicles and equipment is imminent. One example of this over the past two years has been the rooftop units (RTUs) on the Municipal Center. Two of the four units have now been replaced due to complete failure. Each year, staff and Council must choose how to spend limited funding between many competing needs – roads, vehicles, equipment, municipal facility improvements/maintenance. In an attempt to address these needs, in FY18/19 Council chose to increase the Telecommunications and Local Sales taxes to generate additional revenues. Unfortunately, needs far outweigh the funding mechanisms currently in place and without thinking “outside of the box” the city will continue to edge towards the virtual edge of the cliff on being able to address most of these issues. The opportunity presented by Leopardo Companies, Inc. provides the city with a way to redirect existing funding and/or costs savings/reductions to finance improvements to public facilities and a way to implement a realistic vehicle and equipment re placement program. Further, by addressing these needs through this program, items related to public facility maintenance/improvements and vehicle/equipment replacement will no longer have to compete with other capital improvements such as the Local Street Program. While staff understands that this is a concept that is new to Council, and that there may still be questions about its functionality, staff believes that the potential benefits of moving forward outweigh the risk of continuing to delay public facility maintenance projects and vehicle/equipment replacement. We are basically “kicking the can down the road.” In short, Leopardo Companies, Inc. will either develop a plan that is cost neutral or better for addressing needs, or they will not. Neither of these will cost the city unless we choose not to implement a feasible plan that is presented. Doing nothing provides us with no alternatives. On an additional and related note, the previous presentation by Leopardo included the potential for the installation of solar energy facility on the Petersen Farm property that would be able to be utilized to sell energy as well as provided energy for municipal facilities. Due to a variety of factors this facility is now off of the table as an option. However, Leopardo believes that solar energy could be installed on existing municipal facilities to realize costs savings. Representatives from Leopardo Companies, Inc. will be in attendance at the June 3, 2019 City Council Meeting to provide additional information and to answer any questions that Council may have. RECOMMENDATION: Therefore, if Council concurs, it is recommended that a motion be made to authorize the execution of a Letter of Intent for professional services between the City of McHenry and Leopardo Companies, Inc. Capital Creation Strategies 2 Agenda •Leopardo Team •Capital Creation Strategies •Feasibility Study Findings •Financial Overview •Traditional Plan, Bid, Spec vs. Capital Creation •Cost of Delay •M&V Profile •Next Steps 3 Leopardo Team Rob Vollrath Chief Business Officer Anthony J.Leopardo Director, Strategic Relations Chris Knosp Director, Fleet Solutions Justin Jezierski Project Consultant Joe Frankini, P.E., LEED AP Senior V.P. of Operations Drake Wahlers, P.E.,CEM V.P. of Engineering Mike Mrachek Senior Project Manager 4 Capital Creation Strategies •Guaranteed utility savings •Guaranteed operational savings •Verification of annual savings through a monitoring program •Project cost –no c hange orders •Guaranteed equipment p erformance •Ongoing operational s upport •Single point of accountability Promotes Operational Conservation Projects/Infrastructure Improvements 5 Feasibility Study Findings Major Infrastructure Needs Facilities •Roof Replacements at City Hall and Merkel Aquatic Center •Window Replacements at Public Works •Failing HVAC Equipment at Various Facilities •Conversion of Lighting Systems to LED Operations •Half of City’s Fleet (54 Vehicles) is over 10 Years Old •Estimated Replacement Cost of Old Fleet is $4,086,073 •Current Fleet Maintenance Spend is $414,387 Cost-Savings Opportunities Utility Savings •Facility Upgrades •Solar Power Purchase Agreements •IT Upgrades •Utility Procurement •Demand Response Fleet Maintenance & Fuel Savings •Fleet Alternative Fuel •Fleet Leasing Program 6 Feasibility Study Findings Overall Fleet Qty: Over 10 Years Old 54 5 -10 Years Old 26 Under 5 Years 27 Total 107 Fleet Overview •107 Total Vehicles •$6,719,410 Total Replacement Cost •$414,387 Annual Maintenance Spend 51% 24% 25% Overall Fleet Over 10 Years Old 5 -10 Years Old Under 5 Years 7 Feasibility Study Findings Requested vs. Budgeted Project 14/15 15/16 16/17 17/18 18/19 19/20 6-Year Total Requested General Fund $504,661 $636,405 $626,157 $740,500 $1,020,000 $2,149,920 $5,677,643 Budgeted General Fund $58,000 $200,500 $190,800 $132,500 $0 $0 $581,800 Percent Approved General Fund 11.5%31.5%30.5%17.9%0.0%0.0%10.2% Requested Enterprise Fund $540,000 $680,000 $300,000 $0 $732,000 $175,000 $2,427,000 Budgeted Enterprise Fund $0 $360,000 $300,000 $305,000 $110,000 $0 $1,075,000 Percent Approved Enterprise Fund 0.0%52.9%100.0%N/A 15.0%0.0%44.3% Percent Approved Overall 5.6%42.6%53.0%59.1%6.3%0.0%20.4% Fleet Overview •Fleet requests have only been 20.4%funded over past 6 years. •Significant portion of McHenry’s fleet is over 10 years old. •Fleet maintenance costs significantly higher than average. •Risk of catastrophic failure and use of emergency funds. 8 Feasibility Study Findings Fleet Overview Replacement Costs For Fleet 10 Years and Older Department Number of Vehicles Replacement Cost Fund Police 7 $246,324 General Street 20 $2,723,017 General Parks 10 $323,475 General Administration 5 $175,290 General Total 42 $3,468,106 General Fund Total Water 2 $68,465 Enterprise Wastewater 4 $152,630 Enterprise Utilities 6 $396,872 Enterprise Total 12 $617,967 Enterprise Fund Total Total 54 $4,086,073 •Substantial Increases in Maintenance Costs •Increased Risk of Catastrophic Failures •Use of Emergency Funds Without Replacing Older Vehicles: 9 Financial Overview Before Project During Project After Project Operational Costs ($1,537,799)Reduced Operational Costs ($1,263,809) Reduced Operational Costs ($1,263,809) Project Payment ($188,448) Savings ($85,542) Guaranteed Savings ($273,990)Project ImplementationOperational SavingsReduce Operating Budget Fund Capital Improvements from the Savings Utilize Positive Cash Flow as Needed 10 Traditional Plan, Bid, Spec vs. Capital Creation Plan/Bid/Spec Capital Creation Strategies FINANCIAL CAPITAL/BOND/CASH TAX BURDEN (LEVY IMPACT) BURDEN ON BUDGET MONEY YOU ARE ALREADY BUDGETING IN OPERATING BUDGET ON-GOING SUPPORT NO SUPPORT AFTER WARRANTY PERIOD CONTINUOUS PARTNERSHIP OVER LIFE OF CONTRACT UPFRONT FEES YES PAY AS YOU GO NONE FIRST PAYMENT AFTER CONSTRUCTION COMPLETE COST TYPICALLY 20% HIGHER LOWER, UP FRONT AND LIFE CYCLE CHANGE ORDERS YES, ALMOST ALWAYS NO, ONLY CUSTOMER DRIVEN TIMELINE LONGER PROCESS STREAMLINED, SHORTER PROJECT SCHEDULE SAVINGS NO, SAVINGS NOT CAPTURED YES, SAVINGS GUARANTEE RISK CITY LEOPARDO 11 Cost of Delay Each Month Project is Delayed Monthly Loss or Cost Month 1 ($22,832) Month 2 ($22,832) Month 3 ($22,832) Month 4 ($22,832) Month 5 ($22,832) Month 6 ($22,832) Month 7 ($22,832) Month 8 ($22,832) Month 9 ($22,832) Month 10 ($22,832) Month 11 ($22,832) Month 12 ($22,832) Total ($273,990) Risk of Catastrophic Failures, Use of Emergency Funds and Less Funding for Roads 12 M&V Profile 41 0 178% Total Projects with Measured + Verified Savings Number of Missed Guarantees Percent Actual Total Savings Guarantee Delivered 13 Next Steps 1. LOI 2. IGA ❑Kick-Off meeting with City and contractor to develop scope options and project goals ❑Contractor performs energy and design analysis ❑Contractor to pre -qualify sub-contractors ❑Contractor coordinates sub -contractor walk- throughs with local contractors ❑Contractor works with city to secure preliminary project financing ❑Contractor develops proposal to city with firm fixed pricing and guaranteed savings ❑City decides what items inside of the proposal to move forward with and finalize contract ❑City assigns a committee to work with contractor to develop scope options ❑LOI Parameters ❑Scope ❑Financial Term ❑Schedule ❑Development Cost ❑Self-Funding ❑Council approves and executes LOI 14 Next Steps Project Development Timeline •City Council Approves & Executes LOI 6/3/2019 •Investment-Grade Audit Process 60 Days Benefits of LOI •No upfront cost for Investment -Grade Audit. •Breakage Fee of $50k only assessed if City chooses not to move forward with a self-funding program. •If Contractor cannot provide a self -funding project, then the breakage fee is waived. Letter of Intent June 3rd, 2019 Mayor Wayne Jett City of McHenry 333 S. Green Street McHenry, IL 60050 RE: Letter of Intent Dear Mayor Jett: Leopardo Companies, Inc. ("Contractor") presented a feasibility study, dated September 6th, 2018, to the City of McHenry ("Owner"). The Owner has reviewed the study and has chosen Contractor as the provider for services. The intent of the project offering is to provide modernization and upgrades to the current infrastructure. The finalized scope of work, installation cost, and savings are to be determined under the negotiated final design. It is the intent to negotiate in good faith and enter into an agreement with Contractor. The execution of a final Guaranteed Performance Contract will be contingent upon the following items: • Contractor will perform a detailed engineering assessment, systematic pre -measurement, and the necessary engineering services to properly design the systems, savings, and renovations that the Owner chooses to implement. • The Owner shall have input into the design and selections of the systems and the scope of the renovation work to best meet the intended outcome. • Provided that the Contractor presents a budget neutral or better project to the Owner, in the event that the Owner chooses not to move forward with any Guaranteed Performance Contract, it is agreed that Contractor will be reimbursed for all costs incurred including technical, engineering, planning, measurement, and preparation of the agreement. • The reimbursement rate will be calculated at a cost of $50,000.00 plus any hard costs that Contractor incurs. Both parties agree that an agreement will be entered into within ninety (90) days of the date of this letter. City of McHenry By: Title: Date: Leopardo Companies, Inc. By: Title: Date: Office of the City Clerk McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2108 Fax: (815) 363-2119 www.ci.mchenry.il.us The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in a customer-oriented, efficient, and fiscally responsible manner. REGULAR AGENDA ITEM DATE: June 3, 2019 TO: Mayor and City Council FROM: Monte Johnson, Deputy City Clerk RE: Semi-Annual Review of Executive Session Meeting Minutes ATT: Resolution _____________________________________________________________________________ AGENDA ITEM SUMMARY: Pursuant to the Illinois Open Meetings Act, a semi-annual review of minutes and recordings of all closed executive sessions that have not yet been released for public review must be conducted semi-annually. BACKGROUND: The determination of which minutes, if any that may be released is based on the advice of legal counsel. The Act also permits the destruction of executive session recordings that exists more than 18 months after the date the meeting was recorded. Executive Session minutes presented for approval and release: 12/03/18 5 ILCS 120/2(c)(21) Review of Executive Session Minutes 02/18/19 5 ILCS 120/2(c)(2) Collective Bargaining Matters 03/18/19 5/ILCS 120/2(c) (11) Litigation to Acquire Real Estate ANALYSIS: Upon approval of the attached Resolution in Open Session, all Executive Session minutes prior to March 19, 2019, will be released. Recommendation: If Council concurs, then it is recommended a motion is made in Open Session to pass the attached Resolution approving a) Executive Session meeting minutes as presented; b) authorizing the release of Executive Session meeting minutes as presented No; and c) destruction of any executive session recordings that exist more than 18 months and the minutes for that meeting have been approved. R-19-xxx RESOLUTION WHEREAS, the Illinois Open Meetings Act specifies that Executive Session minutes be reviewed at least once every six months; WHEREAS, upon advice from Counsel, the McHenry City Council recommends approval of the following Executive Session Minutes; 12/03/18 5/ILCS 120/2(c) (21) Semi-Annual Review of Executive Session Minutes 02/18/19 5/ILCS 120/2(c) (2) Collective Bargaining 03/18/19 5 ILCS 120/2(c) (11) Potential Litigation WHEREAS, upon advice from Counsel, the McHenry City Council recommends release of all of the above referenced Executive Session Minutes, as the need for confidentiality no longer exists. NOW THEREFORE, BE IT RESOLVED as specified in the Illinois Open Meetings Act that authorization is hereby granted to approve the substance of and release of the above referenced executive session minutes and destruction of all Executive Session recordings that exists more than 18 months prior to the date of this Resolution. BE IT FURTHER RESOLVED that a copy of this Resolution shall be made a permanent part of the City Council minutes. Passed and approved this 3rd day of June, 2019 Ayes Nays Absent Abstain Alderwoman Baehne ____ _____ _____ _____ Alderman Devine ____ _____ _____ _____ Alderman Glab ____ _____ _____ _____ Alderman Mihevc _____ _____ _____ _____ Alderwoman Miller _____ _____ _____ _____ Alderman Santi _____ _____ _____ _____ Alderman Schaefer _____ _____ _____ _____ ______________________ ________________________ Wayne Jett, Mayor Monte Johnson, Deputy Clerk