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HomeMy WebLinkAboutPacket - 8/21/2023 - 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 Monday, August 21, 2023, 7:00 p.m. City Council Chambers, 333 S Green St, McHenry, IL 60050 1.Call to Order. 2.Roll Call. 3.Pledge of Allegiance 4.Public Comment 5.Consent Agenda. Motion to Approve the following Consent Agenda Items as presented: A.Pass a Resolution formally adopting the new McHenry City Emergency Operations Plan dated August 1, 2023. (Police Chief Birk) B.Authorize the execution of a Biller Agreement with Invoice Cloud, Inc. for online payment processing for Utility Billing. (Finance Director Lynch) C.Authorization to waive the competitive bidding process in lieu of three written quotes and authorize the purchase of fifty-seven (57) ballistic helmets from Hard Head Veterans, in an amount not to exceed $28,414.50. (Police Chief Birk) D.Authorize the execution of a Lease Agreement for the South Harbor Piers, property and buildings between the City of McHenry and All Marine Service, Inc. through October 31, 2024. (Parks and Recreation Director Hobson). E.Authorize a First Amendment to the Amended Economic Incentive Agreement between the City of McHenry and 1325 Riverside, Inc. dba Whiskey Diablo to extend the terms until February 28, 2024. (Economic Development Director Martin) F.Approve an Ordinance adding three (3) new restricted roads to Title 7, Chapter 8 and approving new language under Title 7, Chapter 8, Section 3: Penalty and under Title 15, Chapter 1, setting the fine at $750.00. (Police Chief Birk) G.Approve the closure of the alley west of Riverside Drive on Sunday, September 10th, from 11:00am until 7:00pm for the American Legion “Party Out Back” event. (Deputy City Clerk Johnson) 1 H.Approve a Special Use Permit to allow food trucks, vendor tents and live music at 1202 Riverside Drive (Miller Point Park) on September 17th from 4pm to 10pm; to allow alcohol in the park outside of the designated areas adjacent to All Marine Retro Rentals on September 17th from 4pm to 10pm; and to allow an approximate 10-minute fireworks display at 9:45pm for the “Light the Night” event. (Parks and Recreation Director H obson) I.Approve a Special Use Permit to allow multiple tents at 1202 Riverside Drive (Miller Point Park) with live music on October 7th from 3pm to 7pm and to allow alcohol in the park outside of the designated areas adjacent to All Marine Retro Rentals on October 7th from 3pm to 8pm for the “Full Moon Market” event. (Parks and Recreation Director Hobson) J.Reject all submitted bids for the McHenry County Sheriff Marine Unit Building at Miller Riverfront Park, update engineering, and rebid the project for future City Council consideration. (Parks and Recreation Director Hobson) K.August 7, 2023 City Council Meeting Minutes; L.Issuance of Checks in the amount of $683,776.86; M.As Needed Checks in the amount of $165,415.00. 6.Individual Action Item Agenda A.Class A Liquor License – Lighthouse Wines, 1402 Riverside Drive, Unit 101 Motion to approve a Class A Liquor License to Lighthouse Wines, located at 1402 Riverside Drive, Unit 101, and, if approved, pass an Ordinance Amending Title 4, Chapter 2, Alcoholic Liquor, Section 6, Limitation on Number of Licenses. (Deputy City Clerk Johnson) B.Class C Liquor License – Ami Hotels, LLC dba Hampton Inn, 1555 S. Illinois Route 31 Motion to approve a Class C Liquor License to Ami Hotels, LLC dba Ham pton Inn, located at 1555 S. Illinois Route 31 and, if approved, pass an Ordinance Amending Title 4, Chapter 2, Alcoholic Liquor, Section 6, License Classification and Fees; Approval Authority; Limitation on Number of Licenses. (Deputy City Clerk Johnson) C.Commercial Tenant Incentive Grant – Rita’s Italian Ice and Custard, 3319 W. Elm Street Motion to approve a Commercial Tenant Incentive Grant in the amount of $10,000 for Rita’s Italian Ice and Custard, located at 3319 W. Elm Street . (Economic Development Director Martin) D.Vacant Building Incentive Program Request – Delight Enterprises, LLC, 3319 W. Elm Street Motion to approve a Vacant Building Incentive Program Agreement and direct staff to draft an Ordinance approving a tax abatement on the increase in taxes for five years, following the issuance of a certificate of occupancy and for all approving taxing bodies for the property at 3319 W. Elm Street. (Economic Development Director Martin) E.Revocable and Non-Exclusive License Agreement Motion to pass an Ordinance authorizing the Mayor’s execution of a Revocable and Non - Exclusive License Agreement between the City of McHenry and 3918 Main, LLC and 2 Kusniewski Holdings, LLC. (Economic Development Director Martin) F.Amendments to the Façade Grant Program Motion to adopt recommended amendments to the McHenry Façade Grant Program based on input from the June 19, 2023 City Council Meeting. (Economic Development Director Martin) G.Economic Incentive Agreement with Graham Enterprise, Inc. Motion to pass and Ordinance authorizing the Mayor’s execution of an Economic Incentive Agreement between the City of McHenry and Graham Enterprise, Inc. in the form of a 50% sales tax rebate not to exceed a total of $500,000 or 10 years, whichever comes first. (Economic Development Director Martin) 7.Discussion Item Agenda A.Public Works Operations Policy Discussion Regarding Draft Snow and Ice Control and Sidewalk Maintenance. (Field Operations Manager Wirch) 8.Staff Reports. 9.Mayor’s Report. 10.City Council Comments. 11.Executive Session as needed. 12.Adjourn. The complete City Council packet is available for review online via the City website at www.cityofmchenry.org. For further information, please contact the Office of the City Administrator at 815-363-2108. This meeting will be live streamed with a quorum of the City Council physically present. Public comments may only be heard by members of the public physically present at the meeting. Remote public comments will not be heard. The public can listen and view the meeting from the following link: https://cityofmchenry.zoom.us/j/81551022991 3 Chief of Police John R. Birk McHenry Municipal Center 333 Green Stre et McHenry, Illinois 60050 Phone: (815) 363-2200 Fax: (815) 363-2149 www.ci.mchenry.il.us CONSENT AGENDA SUPPLEMENT TO: Mayor and City Council FROM: John R. Birk, Chief of Police FOR: August 21, 2023, Regular City Council meeting RE: Adopt ion of a new City Emergency Operations Plan Attachment s: (1) Resolution (2) McHenry County EMA Plan Review Letter Agenda Item Summary: Staff is seeking Council’s authorization the pass a Reso lution formally adopting a new City Emergency Operations Plan. Background: The City currently is operating off of a 2002 version of our Emergency Operatio ns Plan. The purpose of the Em ergency Operatio ns Plan is to provide a framework for City staff to respond to significant incidents (natural or man -made) that have the potential to overwhelm local resources. Th e proposed new Emergency Operations Plan provid es a roadmap for foreseeable disa sters that co uld occur with in McHenry. Analysis: Due to changes in our organizational operations, industry best practices and legal requirements our Emergency Operations required a re-write. Over a period of several months staff from the Police Department drafted a new Emergency Operations Plan for the City. Through multiple staff and stakeholder interviews the plan was updated to reflect current organizational standards and best practices. The plan was submitted to the McHenry Co unty Emergency Management Agency for review, feedback and approval to ensure that we have met all the legal requirements of the plan. Attached is a letter highlighting the results of the review. Recommendation: Staf f requests City Council a uthorization to pass the attached Resolution f ormally adopting the new McHenry City Emergency Operations P lan dated Au gust 1, 2023. 4 CITY OF MCHENRY RESOLUTION: 23 – _____ A Resolution, Adopting an Emergency Operation Plan for the City of McHenry WHEREAS, the Illinois Emergency Management Agency Act (20 ILCS 3305/1 et. seq.) authorizes each political subdivision within the State to establish by ordinance, an Emergency Services and Disaster Agency (ESDA) responsible for emergency management programs; and WHEREAS, the Illinois Emergency Management Agency Act (20 ILCS 3305/10 – Emergency Services and Disaster Agencies, sub-section (g)) requires each ESDA to prepare an emergency operations plan for its geographic boundaries; and WHEREAS, The City of McHenry is a political subdivision within the State of Illinois and established an ESDA by enacting Ordinance O-76-81and subsequent amending ordinances; and WHEREAS, a responsibility of the City of McHenry ESDA is to develop an Emergency Operations Plan to provide a framework for emergency response and emergency management in the City during a disaster; and WHEREAS, the prior approved Emergency Operations Plan for the City of McHenry was adopted in 2002 and requires a re-write based on organizational changes and changes in industry best practices. WHEREAS, a new Emergency Operations Plan has been developed for the City of McHenry and reviewed by the McHenry County Emergency Management Agency, which complies with the planning, review and approvals standards promulgated by the Illinois Emergency Management Agency. WHEREAS, through this new plan and through this Resolution, the City of McHenry herby agrees to follow Homeland Security Presidential Directive 5 (HSPD -5), using the National Incident Management System (NIMS) and Incident Command System (ICS) structure fo r all field command and management functions in all emergency operations within the City (NIMS 11-A-1- b). NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City of McHenry, McHenry County, Illinois, as follows: SECTION 1: The new Emergency Operations Plan for the City of McHenry dated August 1, 2023 is hereby adopted. This adopted Emergency Operations Plan will be submitted to the McHenry County Emergency Management Agency. SECTION 2: That the above recitals are incorporated as if fully set forth herein. EXHIBIT A SECTION 3: If any part of this Resolution shall be invalid for any reason such finding shall not affect the validity of the remaining portion of this Resolution. SECTION 4: This Resolution shall be in full force and effect from and after its passage and approval as provided by law. Passed and Approved this 21st day of January 2022. 5 Voting Aye: Voting Nay: Absent: Abstain: APPROVED: Mayor Wayne Jett (SEAL) ATTEST: Deputy City Clerk Monte Johnson 6 Office of Finance & Accounting Carolyn Lynch, Director McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 www.cityofmchenry.org 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 DATE: August 21, 2023 TO: Mayor and City Council FROM: Carolyn Lynch, Finance Director RE: New Utility Billing Payment Company ATT: Invoice Cloud Biller Agreement; Invoice Cloud Statement of Work; Biller Order Form ______________________________________________________________________________ AGENDA ITEM SUMMARY: Council is being asked to consider the attached agreement with Invoice Cloud to become the new payment site for Utility Billing payments. BACKGROUND: The City has been in an agreement with Paymentus to provide a Utility Billing site for residents to be able to pay and view their utility bill since 2016. When this agreement was entered the Utility Billing software had just been updated to Tyler Technology Incode and staff investigated ways to allow residents to be able to view and pay their bills electronically. Tyler Technology has this capability but was cost prohibitive. Paymentus quickly became the next best option as their pricing was better and they could provide similar service. Unfortunately, during our implementation time Paymentus had a falling out with Tyler Technologies and was not able to provide the complete product that was requested. City staff worked with Paymentus and was able to get the site up and running to where it is today and customers can view and pay their bills. There are some issues with the site and that is why a new p ayment site is being recommended. ANALYSIS: City staff began investigating a new company to provide payment services because the current site cannot provide up to date billing information to the residents. This is an issue because customers who login see their current bill amount as due even after it is paid. Many residents pay their bill more than once each billing period. Also, this billing site cannot update with second 7 and final notices which does not allow residents to get a true billing picture or the correct amount due. City staff had multiple meetings and product demonstrations with Invoice Cloud and are recommending moving forward with a new agreement once termination has been reached with Paymentus and Invoice Cloud is up and running with City data. Invoice Cloud is the only other payment processing site that can use Tyler Incode data and provide updated billing information live for residents to view and make payment. Invoice Cloud will cost approximately $12,000 more annually than Paymentus, but the time it will save staff in addressing payment issues will be well worth the cost. This $12,000 additional cost will be paid by the Water/Sewer fund. It is also anticipated that Paymentus will continue to raise their pricing as the City just received a 10% rate increase while our Invoice Cloud pricing is locked for the three year agreement. Invoice Cloud also provides marketing materials to provide to customers to encourage signing up for auto-pay and paperless billing which will help save on costs of printing, mailing, and turn-offs. RECOMMENDATION: Therefore, if Council concurs, it is recommended that a motion be made to authorize the Mayor’s execution of the attached Biller Agreement with Invoice Cloud, Inc. for Online Payment processing for Utility Billing. 8 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 1 1. License Grant & Restrictions. Subject to execution by Biller of the Invoice Cloud Biller Order Form incorporating this Agreement, Invoice Cloud hereby grants Biller a non-exclusive, non-transferable, worldwide right to use the Service described on the Biller Order Form until termination as provided herein, solely for the following purposes, and specifically to bill and receive payment from Biller’s own customers, for Services that are referenced in the Biller Order Form. Notwithstanding anything in this Agreement to the contrary, the parties hereto agree that no Services shall be provided by Invoice Cloud hereunder, and the Go Live Date shall not occur, until after Biller has terminated all contracts presently in force with its preexisting payment processing vendor(s) or such contracts have expired under their own terms. All rights not expressly granted to Biller are reserved by Invoice Cloud and its licensors. Biller will provide to Invoice Cloud all Biller Data generated for Biller’s Customers. Unless otherwise expressly agreed to in writing by Invoice Cloud to the contrary, Invoice Cloud will process all of Biller’s Customers’ Payment Instrument Transactions requirements related to the Biller Data and will do so via electronic data transmission according to our formats and procedures for each electronic payment type selected in the Biller Order Form. In addition, Biller will execute all third-party applications and enter into all agreements required for the Service without unreasonable delay, including without limitation Payment Processing Agreements and merchant agreements that may be required upon implementation, or later at such time as the Service operates with different or multiple payment processors. Throughout the Term of this Agreement, for “Invoice Types” listed on the Biller Order Form (e.g., real estate taxes, utility bills, parking tickets, insurance premium, loans, etc.), Biller will not use the credit card processing, ACH or check processing of any bank, payment processor, entity, or person, other than Invoice Cloud via electronic data transmission or the authorization for processing of Biller’s Customers’ Payment Instrument Transactions, for each electronic payment method selected in the Biller Order Form. The exclusivity requirements set forth in the immediately preceding sentence shall not apply where, and shall be suspended only for so long as, a claim or cause of action is filed against Biller that obligates or requires Biller to concurrently utilize the payment processing services of its preexisting payment processing vendor(s). Biller shall not knowingly or negligently: (i) license, sublicense, sell, resell, transfer, assign, distribute or otherwise commercially exploit or make available to any third party the Service in any way; (ii) modify or make derivative works based upon the Service; (iii) recreate, "frame" or "mirror" any portion of the Service on any other server or wireless or Internet-based device; (iv) reverse engineer or access the Service; or (v) copy any features, functions or graphics of the Service. 2. Privacy & Security. Invoice Cloud's privacy and security policies may be viewed at http://www.invoicecloud.com/privacy.html. Invoice Cloud reserves the right to modify its privacy and security policies in its reasonable discretion from time to time which modification shall not materially adversely impact such policies. Invoice Cloud will maintain compliance with current required Payment Card Industry (PCI) standards and Cardholder Information Security standards. 3. Account Information and Data. Invoice Cloud does not and will not own any Customer Data, in the course of providing the Service. Biller, not Invoice Cloud, shall have sole responsibility for the accuracy, quality, integrity, legality, and reliability of, and obtaining the intellectual property rights to use and process all Customer Data. In the event this Agreement is terminated, Invoice Cloud will make available to Biller a file of the Customer Data (to the extent that Invoice Cloud is permitted to provide pursuant to applicable law and PCI-DSS standards), within 30 days of termination of this Agreement (or at a later time if required by applicable law), if Biller so requests at the time of termination. Invoice Cloud will retain Customer Data for a period from its creation for the time frame that is listed in the Biller Order under “Data Retention”, and reserves the right to remove and/or delete remaining Customer Data no less than 60 days after termination or expiration except as prohibited by applicable law or in the event of exigent circumstances. 4.Confidentiality / Intellectual Property Ownership. Invoice Cloud agrees that it may be furnished with or otherwise have access to Customer Data that the Biller’s customers consider confidential. Invoice Cloud agrees to secure and protect the Customer Data in a manner consistent with the maintenance of Invoice Cloud’s own Confidential Information, using at least as great a degree of care as it uses to maintain the confidentiality of its own confidential information, but in no event use less than commercially reasonable measures. Invoice Cloud will not sell, transfer, publish, disclose, or otherwise make available any portion of the Customer Data to third parties, except as permitted under this Agreement or required to perform the Service or otherwise required by applicable law. Invoice Cloud (and its licensors, where applicable) owns all right, title and interest, including all related Intellectual Property Rights, in and to the Invoice Cloud Technology, the Content and the Service and any enhancement requests, feedback, integration components, suggestions, ideas, and application programming interfaces, recommendations or other information provided by Biller or any other party relating to the Service. In the event any such intellectual property rights in the Invoice Cloud Technology, the Content or the Service do not fall within the specifically enumerated works that constitute works made for hire under applicable copyright laws or are deemed to be owned by Invoice Cloud, Biller hereby irrevocably, expressly and automatically assigns all right, title and interest worldwide in and to such intellectual property rights to Invoice Cloud. The Invoice Cloud name, the Invoice Cloud logo, and the product names associated with the Service are trademarks of Invoice Cloud or third parties, and no right or license is granted to use them. Biller agrees that during the course of using or gaining access to the Service (or components thereof) it may be furnished with or otherwise have access to information that Invoice Cloud considers to be confidential including but not limited to Invoice Cloud Technology, the Agreement, customer and/or prospective customer information, product features and plans, the marketing/sales collateral, pricing and financial 9 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 2 information of the parties which are hereby deemed to be Invoice Cloud Confidential Information, or any other information that by its very nature constitutes information of a type that any reasonable business person would conclude was intended by Invoice Cloud to be treated as proprietary, confidential, or private (the “Confidential Information”). Biller agrees to use best efforts to secure and protect the Confidential Information in a manner consistent with the maintenance of Invoice Cloud’s rights therein, using at least as great a degree of care as it uses to maintain the confidentiality of its own confidential information, but in no event use less than reasonable efforts. Biller will not sell, transfer, publish, disclose, or otherwise make available any portion of the Confidential Information of the other party to third parties (and will ensure that its employee and agents abide by the requirements hereof), except as expressly authorized in this Agreement or otherwise required by applicable law. 5. Billing. Invoice Cloud fees for the Service are provided on the Biller Order Form. Invoice Cloud's fees are exclusive of all taxes, levies, or duties imposed by taxing authorities. Invoice Cloud may assess and/or collect such taxes, levies, or duties against Biller and Biller shall be responsible for payment of all such taxes, levies, or duties, excluding only United States (federal or state) taxes based solely on Invoice Cloud's income. All payment obligations are either auto debited from the Biller Bank Account or payable on receipt of invoice from Invoice Cloud, and are non-cancellable, and all amounts or fees paid are non-refundable. Unless Invoice Cloud in its discretion determines otherwise, all fees will be billed in U.S. dollars. If Biller believes Biller’s bill or payment is incorrect, Biller must provide written notice to Invoice Cloud within 60 days of the earlier of the invoice date, or the date of payment, with respect to the amount in question to be eligible to receive an adjustment or credit; otherwise such bill or payment is deemed correct. Invoice Cloud reserves the right to modify pricing with respect to applicable fees to be paid under this Agreement, at any time upon thirty days written notice to Biller: a) based on increases incurred by Invoice Cloud on Network Fees from credit card processers, bank card issuers, payment associations, ACH and check processers; or b) if, during the Term, the average credit card payment processed by Invoice Cloud for any three (3) consecutive month period exceeds 110% of the Average Credit Card Transaction $ specified on the corresponding Invoice Parameter Sheet(s), to the extent that Invoice Cloud incurs increases in Network Fees. Invoice Cloud, on at least 30 days written notice to Biller, may also increase any or all fees referenced in the Biller Order Form (including any Invoice Parameter Sheets), by no more than the greater of CPI for the preceding period or 5%, provided, however, that such increase may not apply during the first year after the execution date of the Biller Order Form and may not occur more than once per year thereafter. 6. Term and Termination. The initial term of this Agreement shall commence as of the execution date of the Biller Order Form and continue for a period of three (3) years after the Go Live Date (“Initial Term”), and will automatically renew for each of additional successive one (1) year terms (“Renewal Term”) unless terminated as set forth herein. “Term” as used herein shall mean the Initial Term and any Renewal Term. This Agreement may be terminated by either party effective at the end of the Initial Term or any Renewal Term by such party providing written notice to the other party of its intent not to renew no less than ninety (90) days prior to the expiration of the then-current term. Additionally, this Agreement may be terminated by either party with cause in the event of a material breach of the terms of this Agreement by the other party and the breach remains uncured for a period of 30 days following receipt of written notice by the breaching party. Upon any early termination of this Agreement by Invoice Cloud as a result of breach, Biller shall remain liable for all fees and charges incurred, and all periodic fees owed through the end of the calendar month following the effective date of termination. Upon any termination or expiration of this Agreement, Biller’s password and access will be disabled and Biller will be obligated to pay the balance due on Biller’s account. Biller agrees that Invoice Cloud may charge such unpaid fees to Biller’s Debit Account or credit card or otherwise invoice Biller for such unpaid fees. 7. Invoice Cloud Responsibilities. Invoice Cloud represents and warrants that it has the legal power and authority to enter into this Agreement. Invoice Cloud warrants that the Service will materially perform the functions that the Biller has selected on the Biller Order Form and the Statement of Work, attached hereto and incorporated herein by reference (the “Statement of Work”), under normal use and circumstances, and that Invoice Cloud shall use commercially reasonable measures with respect to Customer Data to the extent that it retains such, in the operation of the Service; provided, that the Biller shall maintain immediately accessible backups of the Customer Data (to the extent that Biller is permitted pursuant to applicable law and PCI-DSS standards). In addition, Invoice Cloud will, at its own expense, as the sole and exclusive remedy with respect to performance of the Service, correct any Transaction Data to the extent that such errors have been caused by Invoice Cloud or by malfunctions of Invoice Cloud’s processing systems. 8. Limited Warranty. EXCEPT AS PROVIDED IN SECTION 7, THE SERVICE AND ALL CONTENT AND TRANSACTION DATA IS PROVIDED WITHOUT ANY EXPRESS, OR IMPLIED WARRANTY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND ALL OTHER WARRANTIES ARE HEREBY DISCLAIMED TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW BY INVOICE CLOUD AND ITS LICENSORS AND PAYMENT PROCESSORS. INVOICE CLOUD AND ITS LICENSORS AND PAYMENT PROCESSORS DO NOT REPRESENT OR WARRANT THAT (A) THE USE OF THE SERVICE WILL BE UNINTERRUPTED OR ERROR-FREE, OR OPERATE IN COMBINATION WITH ANY OTHER HARDWARE, SOFTWARE, SYSTEM OR DATA, (B) THAT THE SERVICE WILL NOT EXPERIENCE DELAYS IN PROCESSING OR PAYING, OR (C) THE SERVICE WILL MEET REQUIREMENTS WITH RESPECT TO SIZE OR VOLUME. Invoice Cloud's service may be subject to limitations, delays, and other problems inherent in the use of the internet and electronic communications. Invoice cloud is not responsible for any delays, delivery failures, or other damage resulting from such problems. 9. Biller’s Responsibilities. Biller represents and warrants that it has the legal power and authority to enter into this Agreement. Biller is responsible for all activity occurring under Biller’s accounts and shall abide by all applicable laws, and regulations in connection with Biller’s and/or its customers’ and/or any payers’ use of the Service, including those related to data privacy, communications, export or import of data and the transmission of technical, personal or other data. Biller represents and warrants that Biller has not falsely identified itself nor provided 10 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 3 any false information to gain access to the Service and that Biller’s billing information is correct. Biller shall: (i) notify Invoice Cloud of any unauthorized use of any password or account or any other known or suspected breach of security as soon as possible; (ii) report to Invoice Cloud and stop any copying or distribution of Content that is known or suspected to be unauthorized by Biller or Biller’s Users as soon as possible; and (iii) obtain consent from Biller’s customers and payers to receive notifications and invoices from Invoice Cloud. Invoice Cloud is not responsible for any Biller postings in error due to delayed notification from credit card processors, ACH, bank and other related circumstances. Biller agrees and acknowledges that in the event that Biller has access to, receives from, creates, or receives protected health information, or Biller has access to, creates, receives, maintains or transmits on behalf of electronic protected health information (as those terms are defined under the privacy or security regulations issued pursuant to the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) and Subtitle D of the Health Information Technology for Economic and Clinical Health Act provisions of the American Recovery and Reinvestment Act of 2009 (“ARRA”), during the performance under this Agreement, it will comply with all such law, regulations and rules related thereto. Biller is required to ensure that it maintains a fair policy with regard to the refund, return or cancellation of payment for services and adjustment of Transactions. Biller is also required to disclose all refund, return and cancellation policies to Invoice Cloud and any applicable payment processors and Biller’s Customers, as requested. Any change in a return/cancellation policy must be submitted to Invoice Cloud, in writing, not less than 21 days prior to the effective date of such change. If Biller allows or is required to provide a price adjustment, or cancellation of services in connection with a Transaction previously processed, Biller will prepare and deliver to Invoice Cloud Transaction Data reflecting such refund/adjustment within 2 days of resolution of the request resulting in such refund/adjustment. The amount of the refund/adjustment cannot exceed the amount shown as the total on the original Transaction Data. Biller may not accept cash or any other payment or consideration from a Customer in return for preparing a refund to be deposited to the Customer’s account; nor may Biller give cash/check refunds to a Customer in connection with a Transaction previously processed by credit card, debit card, ACH, or other electronic payment method, unless required by applicable law. Biller shall cooperate with Invoice Cloud to effect a timely Implementation by Biller allocating sufficient and properly trained personnel to support the implementation process and fully cooperating with Invoice Cloud and by securing the cooperation of Biller’s software and service providers and providing to Invoice Cloud the information required to integrate with Biller’s billing, CIS and other applicable systems. 10. Indemnification. Invoice Cloud shall indemnify and hold Biller and Biller’s employees, attorneys, and agents, harmless from any losses, liabilities, and damages (including, without limitation, Biller’s costs, and reasonable attorneys’ fees) arising out of: (i) failure by Invoice Cloud to implement commercially reasonable measures against the theft of Customer Data; or (ii) its total failure to deliver funds processed by Invoice Cloud as required hereunder (which relates to payments due from Invoice Cloud for Transaction data). This indemnification does not apply to any claim or complaint relating to Biller’s failure to resolve a payment dispute concerning debts owed to Biller or Biller’s negligence or willful misconduct or violation of any applicable agreement or law. 11. Fees. Invoice Cloud will charge the Biller and/or payer, payment transaction and other fees as provided in the Biller Order Form. In addition, Invoice Cloud will charge the fees set forth on the Biller Order Form for the initial platform setup, configuration, implementation and integration with Biller system(s) of its standard Service as set forth in the Statement of Work (the “Implementation”). Invoice Cloud reserves the right to also charge for changes and additions to the Implementation, and for any requests by Biller following the implementation which are agreed in writing by the parties, including without limitation for the following services, at its then standard rates: •Custom development and features which are not stated in the Statement of Work and Biller Order Form, and change requests and modifications to existing platform functionality not stated in the Statement of Work and Biller Order Form; •Additional integrations or integration modifications after the Go Live Date that are not provided for in the Biller Order Form or Statement of Work; •Changes to bill presentment (web and PDF templates), billing system integrations, and other Service components coded or configured to Biller’s specifications after Biller has signed off on the relevant specification or Service is live; •Custom data extracts and file requests that are not part of the Implementation signed off on by both parties; and •Data conversion not listed in the Statement of Work, or repetitive re-loading of data due to Biller error. 12. Limitation of Liability. INVOICE CLOUD’S AGGREGATE LIABILITY SHALL BE UP TO AND NOT EXCEED THE AMOUNTS ACTUALLY PAID BY AND/OR DUE FROM BILLER IN THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO SUCH CLAIM. IN NO EVENT SHALL INVOICE CLOUD AND/OR ITS LICENSORS BE LIABLE TO ANYONE FOR ANY INDIRECT, PUNITIVE, SPECIAL, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL (INCLUDING LOSS OF DATA, REVENUE, PROFITS, USE OR OTHER ECONOMIC ADVANTAGE) DAMAGES ARISING OUT OF, OR IN ANY WAY CONNECTED WITH THE SERVICE, EVEN IF THE PARTY FROM WHICH SUCH DAMAGES ARE BEING SOUGHT OR SUCH PARTY'S LICENSORS HAVE BEEN PREVIOUSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. Certain states and/or jurisdictions do not allow the exclusion of implied warranties or limitation of liability for incidental, consequential or certain other types of damages, so the exclusions set forth above may not apply to Biller. 11 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 4 13. Export Control. The Biller agrees to comply with United States export controls administered by the U.S. Department of Commerce, the United States Department of Treasury Office of Foreign Assets Control, and other U.S. agencies. 14. Notice. Either party may give notice by electronic mail to the other party’s email address (for Biller, that address on record on the Biller Order Form) or by written communication sent by first class mail or pre-paid post to the other party’s address on record in Invoice Cloud’s account information for Biller, and for Invoice Cloud, to Invoice Cloud, Inc., 30 Braintree Hill Office Park, Suite 101, Braintree, MA 02184 Attention: Client Services or helpdesk@invoicecloud.com. Such notice shall be deemed to have been given upon the expiration of 48 hours after mailing or posting (if sent by first class mail or pre-paid post) or 12 hours after sending (if sent by email). 15. Assignment. This Agreement may not be assigned by either party without the prior written approval of the other party, but may be assigned without such party’s consent to (i) a parent or subsidiary, (ii) an acquirer of assets, or (iii) a successor by merger. Any purported assignment in violation of this section shall be void. 16. Insurance. Invoice Cloud agrees to maintain in full force and effect during the Term of the Agreement, at its own cost, the following coverages: a. Commercial General or Business Liability Insurance with minimum combined single limits of One Million ($1,000,000) each occurrence and Two Million ($2,000,000) general aggregate. b. Umbrella Liability Insurance with minimum combined single limits of Five Million ($5,000,000) each occurrence and Five Million ($5,000,000) general aggregate. c. Automobile Liability Insurance with minimum combined single limits for bodily injury and property damage of not less than One Million ($1,000,000) for any one occurrence, with respect to each of the Invoice Cloud’s owned, hired or non-owned vehicles assigned to or used in performance of the Services. d. Errors and Omissions Insurance (Professional Liability and Cyber Insurance) with limits of liability of at least One Million Dollars ($1,000,000) per claim and in the aggregate. 17. Immigration Laws. Invoice Cloud represents and warrants that it has complied and will comply with all applicable immigration laws with respect to the personnel assigned to the Biller. 18. Beta Products. In the event that there is any functionality labelled “Beta” on the Biller Order Form, such functionality is provided “AS IS” WITHOUT ANY EXPRESS, OR IMPLIED WARRANTY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND ALL OTHER WARRANTIES ARE HEREBY DISCLAIMED TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW BY INVOICE CLOUD AND ITS LICENSORS AND PAYMENT PROCESSORS. INVOICE CLOUD’S AGGREGATE LIABILITY WITH RESPECT TO SUCH FUNCTIONALITY SHALL BE UP TO AND NOT EXCEED $10. 19. General. (a) This Agreement shall be governed by the law of the State of Illinois, without regard to the choice or conflicts of law provisions of any jurisdiction. Any dispute arising out of this Agreement shall be heard in a court of competent jurisdiction over cases and controversies arising in the City of McHenry, Illinois. No text or information set forth on any other purchase order, preprinted form or document (other than a Biller Order Form and any add on Biller Order Form, if applicable), and no documentation (including any implementation planning documents) except as specifically referenced in this Biller Agreement, shall modify, add to or vary the terms and conditions of this Agreement. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then such provision(s) shall be construed, as nearly as possible, to reflect the intentions of the invalid or unenforceable provision(s), with all other provisions remaining in full force and effect. No joint venture, partnership, employment, or agency relationship exists between Biller and Invoice Cloud as a result of this agreement or use of the Service. The failure of either party to enforce any right or provision in this Agreement shall not constitute a waiver of such right or provision unless acknowledged and agreed to by Invoice Cloud in writing. All rights and obligations of the parties in Sections 4, 6, 10, 12, 14, 18 and 19(a) and (b) shall survive termination of this Agreement. This Agreement, together with any applicable Biller Order Form, comprises the entire agreement between Biller and Invoice Cloud and supersedes all prior or contemporaneous negotiations, discussions or agreements, whether written or oral between the parties regarding the subject matter contained herein. Biller agrees that Invoice Cloud can disclose the fact that Biller is a paying customer and the version of the Service that Biller is using. Where this Agreement is incorporated into, embedded in or otherwise made a part of a separate agreement between Invoice Cloud, Biller and a third party service provider (“Third Party Agreement”), and such Third Party Agreement is terminated or expires, Biller and Invoice Cloud agree that the terms and conditions of this Agreement shall survive and remain in effect as between Biller and Invoice Cloud until this Agreement expires or is otherwise terminated by either Biller or Invoice Cloud in accordance with the terms herein. 12 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 5 (b)Additional terms and conditions and definitions applicable to this Agreement and the Biller Order Form are attached hereto as Exhibit A and are agreed to by Invoice Cloud and Biller (the “Biller T+C”). The terms and conditions and definitions set forth in Exhibit A are incorporated herein and made a part hereof by this reference. 13 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 6 EXHIBIT A TO THE BILLER AGREEMENT BILLER TERMS AND CONDITIONS 1.Definitions. The following definitions apply as used in the Agreement and in any Biller Order Form and add on Biller Order Form, now or hereafter: "Agreement" or “Biller Agreement” means these terms and conditions, the Biller Agreement, any Biller Order Form, add on Biller Order Form, whether written or submitted online and any materials available on the Invoice Cloud website specifically incorporated by reference herein; “Biller”, “you”, or “your” means the Invoice Cloud customer that has executed or agreed to the Biller Agreement, Biller Order Form and Billers Terms and Conditions whether written or submitted online; “Biller Data” means invoices and bills of the Biller as well as the Content of such invoices and bills; “Biller Order Form” means the order form referencing the service to be performed by Invoice Cloud and any add on services under any add on Biller Order Form; “Chargeback” is a reversal of a Transaction initiated by a credit card company, processor, bank or other financial institution including chargebacks, ACH rejects or reversals, disputes and other refunds or credits, that Biller previously presented to Invoice Cloud under this Agreement and includes, but is not limited to: (i) failure to issue a refund to a Customer as required; (ii) Invoice Cloud did not receive Biller’s response to a Retrieval Request within 7 days or any shorter time period required by the Payment Brand Rules; (iii) a Customer disputes the Transaction or claims that the Transaction is subject to a set-off, defense or counterclaim, or (iv) the Biller Bank Account designated by the Customer for an ACH transaction is invalid, or has insufficient funds to complete a Transaction; "Content" means the information and documents contained or made available to Biller by Invoice Cloud in the course of using the Service; “Customer” shall include customers, payers, taxpayers and users of services of Biller; "Customer Data" means name, address and contact information of Customers and associated credit card numbers and bank account numbers, excluding any data that Invoice Cloud acquired other than from the Biller or Customers; "Effective Date" means the date this Agreement is accepted by executing a Biller Order Form; “Go Live Date” means the date on which those invoice types listed on the Biller Order Form are publicly available to Customers for online payment; "Intellectual Property Rights" means unpatented inventions, patent applications, patents, design rights, copyrights, trademarks, service marks, trade names, domain name rights, mask work rights, know-how and other trade secret rights, and all other intellectual property rights, derivatives, integration components and application programming interfaces thereof, and forms of protection of a similar nature anywhere in the world; “Integration Components” means software, which integrates the Service with third party software, and any updates or revisions thereto; "Invoice Cloud" or “we” means Invoice Cloud, Inc., a Delaware corporation; "Invoice Cloud Technology" means all of Invoice Cloud's proprietary technology (including software, hardware, products, processes, algorithms, user interfaces, know-how, techniques, designs and other tangible or intangible technical material or information) made available to Biller or otherwise developed by Invoice Cloud in providing the Service; “IVR” means the software as a service which provides interactive voice and communication response functionality, automated payments by voice and text, text (SMS) messaging, and related functionality, including inbound and outbound communications; “Network” is any Payment Method provider whose payment method is accepted by Biller from Customers and which is accepted by Invoice Cloud for processing, including, but not limited to, Visa, Inc., MasterCard International, Inc., American Express, PayPal (including Pay Pal, Venmo, Pay In 4 and PayPal Credit), Discover Financial Services, LLC, and any other Payment Methods, digital 14 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 7 wallets, credit and debit card providers, debit network providers. Network also includes the National Automated Clearing House Association (''NACHA"), with respect to Transactions involving any credit or debit entry processed over the ACH network, and any other network or clearinghouse over which any electronic check processing Transactions may be processed; “Network Fees” means all pass-through costs including interchange, PayPal brand fees, dues, assessment fees, processing fees, and similar fees, assessed by any Network, credit card or payment processers, bank card issuers, payment associations, ACH and check processers; “Network Liabilities” means any and all fines, fees, penalties, liabilities, charges and other amounts which may be imposed or assessed by the Networks or payment processors as a result of Biller’s actions, omissions, , Transactions or Chargebacks, including without limitation, Biller’s failure to comply with the Network Rules, or this Agreement and/or any agreement with any payment processor; "Order Form" or “Biller Order Form” means the form evidencing the initial subscription for the Service and any subsequent Biller Order Form, specifying, among other things, the services contracted for, the applicable Biller Pricing fees and Transactional Fees and Service Fees by Invoice Type (as listed on one or more Invoice Parameter Sheets which are part of the Biller Order Form), the billing period, and other charges, terms and conditions as agreed to between the parties, each such Biller Order Form to be incorporated into and to become a part of this Agreement; “Payment Instrument Transaction(s)” or “Transaction(s)” means a transaction conducted between Biller and its Customers with respect to an account, or evidence of an account, utilizing Payment Methods for payment in connection with the sale, lease, financing or provision of goods and/or services by Biller and/or payment of taxes (either directly or through Invoice Cloud). “Payment Instrument Transaction(s)” or “Transaction(s)” may also be used to refer to the written or electronic record of such a transaction, including, without limitation, an authorization code, settlement record, ECP file, or a credit or debit entry pursuant to and consistent with NACHA Rules or card association rules which is submitted to a processor to initiate or evidence a Transaction; “Payment Processing Agreements” means the payment and card processing agreements and merchant agreements which Invoice Cloud has directed the Biller to enter into to enable Invoice Cloud to provide the Service; “Payment Methods” means credit and debit cards, ACH, EFT and Check 21 transactions, digital wallets including but not limited to Visa, MasterCard, Amex and Discover, PayPal, Venmo, Apple Pay, Google Pay, credit instruments including PayPal Credit and PayPal Pay in 4, stored value cards, loyalty cards, electronic gift cards, authorized account or access numbers, paper certificates and credit accounts that are used for Payment Instrument Transactions and listed on the Biller Order Form. From time to time Invoice Cloud may offer Biller new Payment Methods, and, in such event, Invoice Cloud will provide Biller with notice by email disclosing the pricing under which the added Payment Methods are made available. Biller will have at least thirty (30) days after the date of the notice to opt-out of the additional Payment Methods in the manner provided in the notice. If Biller does not opt-out in such time frame, then on introduction of the additional Payment Methods, Biller will be bound by the additional terms as disclosed in the notice, and the Biller Order Form will be deemed amended to reflect the changes; “Reserve Account” means a Biller account which is maintained in order to protect Invoice Cloud against the risk of, among other things, existing, potential, or anticipated Chargebacks and to satisfy the other obligations under the Agreement; "Service(s)" means Invoice Cloud's billing and payment service, the Content, the Invoice Cloud Technology and other services identified on the Biller Order Form, developed, operated, provided, and/or maintained by Invoice Cloud, accessible via www.invoicecloud.com or another designated website or IP address, or ancillary online and/or offline products and services provided to Biller by Invoice Cloud, to which Biller is being granted access under this Agreement. 2.Biller’s Responsibilities. (a)Biller is responsible for all activity occurring under Biller’s account(s) and shall abide by all applicable laws and regulations as well as card association rules, NACHA rules and Payment Processing Agreements, in connection with Biller’s and/or its customers’ use of the Service, including those related to data privacy, communications, export or import of data and the transmission of technical, personal or other data. Biller shall: (i) notify Invoice Cloud as soon as possible in writing of any unauthorized use of any password or account or any other known or suspected breach of security; (ii) report to Invoice Cloud and stop any copying or distribution of Content that is known or suspected to be unauthorized by Biller or Customers as soon as possible; and (iii) not knowingly or negligently impersonate another Invoice Cloud user or provide false identity information to gain access to or use the Service. Biller shall not knowingly or negligently: (i) send or store material containing software viruses, worms, Trojan horses or other harmful computer code, files, scripts, agents or programs; (ii) interfere with or disrupt the integrity or performance of the Service or the data contained therein; (iii) attempt to gain unauthorized access to the Service or its related systems or networks; (iv) license, sublicense, sell, resell, transfer, assign, distribute or otherwise commercially exploit or make available to any third party the Service in any way; (v) modify or make derivative works based upon the Service; (vi) recreate, "frame" or "mirror" any portion of the Service on any other server or wireless or Internet-based device; (vii) reverse engineer or access the Service; or (viii) copy any features, functions or graphics of the Service. 15 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 8 (b) Biller must designate on the Biller Order Form (and/or subsequent to execution of the Biller Order Form as requested by Invoice Cloud), at least one bank account for the deposit and settlement of funds and the debit of any Chargebacks, fees and costs, including, but not limited to Network Fees and Network liabilities, associated with the Service or the Transactions (all such designated bank accounts and all bank accounts substituted for accounts listed on the Biller Order Form shall be collectively referred to herein as the "Biller Bank Account"). You authorize Invoice Cloud to instruct its processors to initiate electronic credit entries, debit entries, and adjustments to a Biller Bank Account for amounts due to or from you in connection with this Agreement. Invoice Cloud will not be liable for any delays in receipt of funds or errors in Biller Bank Account entries caused by third parties, including but not limited to delays or errors by the Networks, payment processors, merchant acquirors or the bank. (c) The dollar amount payable to Biller for Biller’s Transactions will be equal to the amount submitted by Biller in connection with your sale Transactions, minus the sum of amounts due from Biller or debited from a Biller Bank Account, including Chargebacks, Network Fees, Network Liabilities, other fees and charges referenced on the Biller Order Form and all applicable charges and adjustments. If, however, Invoice Cloud or the processor fails to withhold Chargebacks, Network Fees or other charges or amounts due from the proceeds payable to a Biller Bank Account (including where such proceeds are insufficient to cover such obligations), or if a Biller Bank Account does not have a sufficient balance to pay amounts due from Biller under these guidelines, Invoice Cloud may pursue one or more of the following options: (i) demand and receive immediate payment from Biller for such amounts; (ii) debit the Biller Bank Account for the amount of the negative balance; (iii) reduce future settlement payments by the amount owed, (iv) withhold settlement payments to the Biller Bank Account until all amounts are paid, (v) delay presentation of refunds until a payment is made to Invoice Cloud of a sufficient amount to cover the negative balance; and (vi) pursue any remedies we may have at law or in equity. (d) To enable Invoice Cloud to process transactions for the Biller, Biller authorizes and directs Invoice Cloud, its affiliates, the Payment Method providers, and the payment processors: (1) that, with respect to any Payment Instrument Transactions processed by the payment processor, the payment processor will disburse funds to and collect funds from the Biller in accordance with instructions provided to the payment processor by Invoice Cloud, and as otherwise permitted pursuant to any applicable Payment Processing Agreement that Biller has entered into; (2) that outstanding sums due and owing to Invoice Cloud, including, but not limited to Chargebacks and Network Fees, will automatically be debited from the Biller Bank Account for such purpose on a daily or monthly basis at Invoice Cloud’s sole discretion. Biller shall maintain sufficient funds in the Biller Bank Accounts to pay all periodic fees, Chargebacks, Network Fees and other fees due hereunder; and non-sufficient funds for these debits, or blocking or otherwise rendering inaccessible any Biller Bank Account, are grounds for an increase in fees, suspension of the Service, and/or termination of this Agreement. (e) Invoice Cloud is not responsible for any Biller postings in error due to delayed notification from credit card processor, ACH bank, and/or other related circumstances. Biller agrees to provide Invoice Cloud with timely, complete, and accurate billing and contact information. This information includes Biller’s legal company name, street address, e-mail address, and name and telephone number of an authorized billing contact and License Administrator. Biller agrees to update this information within 30 days of any change to it. (f) Biller is required to ensure that it maintains a fair policy in compliance with applicable laws, regulations, and all Network rules with regard to the refund, return or cancellation of services and adjustment of Transactions. Biller is also required to disclose any refund, return or cancellation policies to Invoice Cloud and any applicable payment processors and Biller’s Customers, as requested. Any change in a return or cancellation policy for the transactions underlying the Payment Instrument Transactions must be submitted to Invoice Cloud, in writing, not less than 21 days prior to the effective date of such change. If Biller allows or is required to provide a price adjustment, or cancellation of services in connection with a Transaction previously processed, Biller will prepare and deliver to Invoice Cloud, Transactions reflecting such refund/adjustment within 2 days of resolution of the request resulting in such refund/adjustment. The amount of the refund/adjustment with respect to Transactions under the Service cannot exceed the amount shown as the total on the original Transaction. Biller may not accept cash or any other payment or consideration from a Customer in return for preparing a refund to be deposited to the Customer’s account; nor, with respect to credit card transactions, may Biller give cash/check refunds to a Customer in connection with a Transaction previously processed, unless required by applicable law. Individual users, when they initially log in, may be asked whether or not they wish to receive marketing and other non-critical Service- related communications from Invoice Cloud from time to time. They may opt out of receiving such communications at that time or at any subsequent time by changing their preference at http://www.invoicecloud.com/privacy.html. Note that because the Service is a hosted, online application, Invoice Cloud occasionally may need to notify all users of the Service (whether or not they have opted out as described above) of important announcements regarding the operation of the Service. (g) As to all Transactions that Biller submits to Invoice Cloud for processing, Biller represents and warrants that, to the best of its knowledge: (1) The Transactions represent payment or refund of payment, for a bona fide transaction. 16 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 9 (2) The Transactions represent an obligation of the Customer for the amount of the Transaction, and that the Transaction is valid and accurate. (3)The Transactions do not involve any element of credit for payment of a previously dishonored payment or for any other purpose than payment for a current transaction and future payments as agreed upon by the Customer. (4) The Transactions are free from any material alteration not authorized by the Customer. (5) The amount charged for the Transaction is not subject to any dispute, setoff, or counterclaim. (6) Neither Biller nor its employees has advanced any cash to the Customer in connection with the Transaction, nor have you accepted payment for effecting credits to a Customer. (7) Biller has made no representation or agreement for the issuance of refunds except as it states in your return/cancellation policy, which has been previously submitted to Invoice Cloud in writing, and which is available to the Customer. (8) Any Transaction submitted to Invoice Cloud to credit a Customer’s account represents a valid refund or adjustment to a Transaction previously submitted to Invoice Cloud. (9) Biller has no knowledge or notice of information that would lead it to believe that the enforceability or collectability of the subject Transaction is in any manner impaired. The Transactions, including but not limited to total due fields, are complete, accurate and in compliance with all Network rules, applicable laws, ordinances, and regulations. The Transactions are originated in compliance with this Agreement and any applicable agreements. (10)For a Transaction in which the Customer pays in installments or on a deferred payment plan, a Transaction record has been prepared separately for each installment transaction or deferred payment on the date(s) the Customer agreed to be charged. All installments and deferred payments, whether or not they have been submitted to Invoice Cloud for processing, shall be deemed to be a part of the original Transaction. (11)Biller has not submitted any Transaction that it knows or should have known to be unauthorized, fraudulent, illegal, or otherwise in violation of any provision of this Agreement or other applicable agreements. (h)Communications with Customers and Biller Website. Biller hereby grants to Invoice Cloud and its providers a worldwide, non-exclusive, assignable, perpetual, and royalty-free license and right to copy, use, publish and distribute Customer names, physical addresses, and email addresses as well as obtain email addresses of Biller’s Customers by using data Biller has provided or made accessible to Invoice Cloud or any of its affiliates, solely for the purposes of: (i) communicating or sending to Customers (and/or their agents) information designed to inform, promote, and encourage Customers (and/or their agents) to use the Service including, without limitation, paying bills online, enrolling in autopay, and enrolling in paperless billing, and (ii) in conjunction with information relating to feedback and response regarding such communications, creating and using aggregated and anonymized data and analysis for purposes of improving the Service. Biller hereby grants to Invoice Cloud and its providers a worldwide, non-exclusive, assignable, and royalty-free license and right during the Term, to copy, use, modify, and publish the Biller’s name, logos, trade dress, photographs, website materials, and other works of authorship for the purpose of implementing and providing the Service and performing their obligations under this Agreement. Biller represents and warrants it has all necessary rights, permissions, and licenses to grant and provide to Invoice Cloud and its service providers the license, rights, and permissions described in this Section and will comply with all applicable laws and regulations with respect to any personal information of any of its Customers. For purposes of clarity, the license, rights, and permission grants described in this Section are part of the “Service” under the Biller Agreement. (i)American Express Compliance only. (1)Biller agrees to comply with all applicable laws, rules and regulations, including the American Express Merchant Operating Guide requirements, which are incorporated into this Agreement by reference as if they were fully set forth in the Agreement. The American Express Merchant Operating Guide may be viewed at: www.americanexpress.com/merchantopguide. (2)Processing Restrictions. Biller is prohibited from processing Transactions or receiving payments on behalf of, or (unless required by law) re-directing payments to any other party. (3)Third Party Beneficiary Rights. •Biller confers on American Express the third-party beneficiary rights, but not obligations, to the Biller Agreement and subsequent addenda (collectively the “Agreement”) between Biller and Invoice Cloud and, as such, American Express has the express right to enforce the terms of the Agreement against the Biller. 17 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 10 •Biller agrees and warrants that it does not hold third party beneficiary rights to any agreements between Invoice Cloud and American Express and at no time will attempt to enforce any such agreements against American Express. (4)American Express Limitation of Liability. BILLER ACKNOWLEDGES AND AGREES THAT IN NO EVENT SHALL AMERICAN EXPRESS, ITS AFFILIATES, AGENTS, SUCCESSORS, OR ASSIGNS BE LIABLE TO BILLER FOR ANY DAMAGES, LOSSES, OR COSTS INCURRED, INCLUDING INCIDENTAL, INDIRECT, SPECULATIVE, CONSEQUENTIAL, SPECIAL, PUNITIVE, OR EXEMPLARY DAMAGES OF ANY KIND (WHETHER BASED ON CONTRACT, TORT, INCLUDING NEGLIGENCE, STRICT LIABILITY, FRAUD, OR OTHERWISE, OR STATUTES, REGULATIONS, OR ANY OTHER THEORY), ARISING OUT OF OR IN CONNECTION WITH THE AGREEMENT. 3.Chargebacks, Fees, Reserve Account, Etc. If Biller incurs excessive Chargebacks, in Invoice Cloud’s sole determination, or otherwise fails to pay fees or charges, or there are insufficient funds for Invoice Cloud to debit amounts for which Biller is responsible hereunder, in addition to other remedies under this Agreement, Invoice Cloud (or the payment processor) may take the following actions: (i) notify Biller of a new rate that will be charged to process Chargebacks; (ii) collect from Biller an amount reasonably determined by Invoice Cloud (or the payment processor) to be sufficient to cover anticipated Chargebacks and all related fees, penalties, expenses, and fines, or increase a reserve amount; (iii) require Biller to promptly establish a Reserve Account as determined by Invoice Cloud, or (iv) terminate the Agreement. Biller shall be responsible to Invoice Cloud for and shall promptly pay to Invoice Cloud such charges required to be paid by Biller; and any Chargebacks, by any party, including without limitation Chargebacks claimed by any payment and credit card processors, bank, or other financial services organization. To the extent permitted by applicable law, Biller shall indemnify, defend, and hold Invoice Cloud, its licensors and Invoice Cloud’s subsidiaries, affiliates, officers, directors, employees, attorneys, agents, and payment processors harmless from and against any and all claims, costs, damages, losses, liabilities and expenses (including attorneys' fees and costs) arising out of or in connection with any claim, cause of action, lawsuit, administrative or criminal investigation, charge, action or claim alleging: (i) any charge against any reserves required by payment or credit card processors; (ii) Chargebacks, Network Fees and insufficiency of funds in any Biller Bank Account, by any party, including without limitation Chargebacks claimed by any payment and credit card processors, bank, or other financial services organization; (iii) that use of any Customer Data infringes the rights of a third party; (iv) a violation by Biller of Biller’s representations and warranties or the breach by Biller or Biller’s users or Customers of this Agreement including without limitation incomplete or inaccurate Transactions; (v) Biller’s violation of any third party payment and credit card processing agreement and merchant agreement, or (vi) relating directly or indirectly to Biller’s or its authorized users’ use of the Service. Biller represents and warrants that the Biller Bank Account(s) will contain sufficient funds to cover any estimated financial exposure based on reasonable criteria for Chargebacks, ACH rejects or reversals, credits, returns, and all additional liabilities anticipated under this Agreement, including, but not limited to Chargebacks, fines, fees and penalties. Invoice Cloud may, at its sole discretion, collect fees related to Chargebacks and ACH rejects and reversals, or other refunds or credits from Biller’s customers. 4.[Intentionally Omitted]. 5.Encrypted Card Readers (Applicable where Card Readers as designated on the Biller Order Form). Encrypted Card Readers (or Card Readers as described in the Biller Order Form) are provided to the Biller for their use under license fees provided in the Biller Order Form. Invoice Cloud provides to Biller all products on a license basis. Biller will be fully responsible for all products including without limitation all risk of loss and damage to products while in its possession or control, save normal wear and tear. Where Invoice Cloud provides encrypted card readers, the following additional terms apply (with “products” or “device” in this Section 5 referring to the encrypted card readers): a.Invoice Cloud and the manufacturer warrants that the products provided pursuant to this Agreement will perform in accordance with the manufacturer’s published specifications. Should a product fail to conform to applicable manufacturer’s specifications, repair parts and replacement products will be furnished on an exchange basis and will be either reconditioned or new as specified below. This limited warranty does not include service to repair damage to the product resulting from accident, disaster, unreasonable use, misuse, abuse, customer’s, Reseller’s, or any other third party’s negligence, or non-manufacturer modification of the product. Invoice Cloud reserves the right to examine the alleged defective product to determine whether the warranty is applicable. Without limiting the generality of the foregoing, Invoice Cloud and the product manufacturer specifically disclaim any liability or warranty for any product resold in other than manufacturer’s original packages, and for products modified, altered, repaired, maintained, or treated by Biller, its customers, and/or any third party. Service on a defective product may be obtained by delivering the product during the warranty period as instructed by Invoice Cloud. b.The following is the repair and replacement policy for a defective product: Replacement Requests – Biller shall promptly notify Invoice Cloud that the device is not working, via email, phone call or help desk ticket. Invoice Cloud will update and/or open a new help desk ticket for the product swap replacement request. 18 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 11 Biller must provide the serial number of the device that is not working. Replacement device will be shipped to the Biller as noted on the help desk ticket issued by Invoice Cloud. Shipping Method: Replacement devices will be shipped via a commercial shipping service at no charge to the Biller. If Biller needs the device sent via overnight shipping there is an additional cost of $35.00 per device. Biller has 14 business days to return a device that is not working to an address specified by Invoice Cloud on the return help desk ticket, delivery or postage pre-paid. Failure to return the non-working device may result in additional fees and charges to Biller. Invoice Cloud shall use reasonable efforts to provide the encrypted card reader service in an uninterrupted, continuous manner. Biller understands and agrees that services may be periodically offline or otherwise inoperable in order for Invoice Cloud to perform maintenance, install or test software, or for other commercially reasonable business purposes and that during such time card reader service services may not be provided. Biller further understands and agrees that from time to time card reader service services may be off line or otherwise inoperable as a result of the failure of equipment or services provided to the manufacturer by third parties (for example, public or private telecommunications services or internet nodes or facilities, overall Internet congestion, unavailability of internet services, such as DNS services), and that during such time Services may not be provided. Furthermore, Biller understands and agrees that the provisions of any services and other performances hereunder will be excused for any of the reasons set forth herein. In the event of unforeseen network or equipment failure, manufacturer will use commercially reasonable efforts to restore the Services in a reasonability prompt fashion. Manufacturer may from time to time, in its sole discretion, modify the manner in which it provides services, and modify its software and systems, all of which may result in a change in the manner in which manufacturer provides the software and systems provided, however, that such modifications and/or changes do not degrade the level of, or have a material adverse impact upon the features and functionality of the Services. c. EXCEPT AS PROVIDED IN THIS SECTION 5, INVOICE CLOUD AND THE DEVICE MANUFACTURER MAKE NO OTHER WARRANTY, EXPRESS OR IMPLIED, AND INVOICE CLOUD AND THE DEVICE MANUFACTURER DISCLAIM ANY WARRANTY OF ANY OTHER KIND INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. BILLER AGREES AND ACKNOWLEDGES THAT ALL PRODUCTS AND DEVICES ARE OFFERED AND PROVIDED ON AN “AS IS” BASIS. d. Responsibilities of Biller. Biller is responsible for the following: (i) providing Invoice Cloud with a static IP address or a specific range of static IP addresses, (ii) confidentiality of each End User’s Data. Biller is solely responsible for ensuring the secure transmission of any data that Biller transmits to Invoice Cloud (“Biller Transmitted Information”), and Invoice Cloud and the manufacturer will have no liability therefore (provided that the manufacturer will use Biller Information only for purposes of this Agreement). Biller is solely responsible for adopting, implementing, and maintaining appropriate and effective security measures, procedures, policies, and standards and any other best practices available to protect the confidentiality of Biller Data, (iii) protecting the confidentiality of any information stored on Biller’s servers, and (iv) using the Services in the manner instructed by Invoice Cloud and the manufacturer and otherwise in the manner intended. e. Network Security. Biller shall be solely responsible for ensuring that authorized Biller employees and contractors are not security risks. Upon Invoice Cloud’s request, Biller will promptly provide Invoice Cloud with any information reasonably necessary for Invoice Cloud to evaluate security issues and/or concerns relating to any authorized Biller employee and/or contractor. Each party will be solely responsible for the selection, implementation, and maintenance of security procedures and policies that are sufficient to ensure that (a) such party’s use of any network or internet connection is secure and is used only for authorized purposes, and (b) such party’s business records and data are protected against improper access, use, loss, alteration, and/or destruction. f. Biller shall provide Invoice Cloud with physical access to the devices upon request after reasonable advance notice. Biller shall not, nor allow any Third Party to, modify, repair, replace, relocate, sell, lease, assign, encumber, or otherwise tamper with any of the devices without Invoice Cloud’s express written consent. Any change of the location of any device may warrant that Biller pay Invoice Cloud any additional installation and related charges associated with such relocation, charged by Invoice Cloud’s third-party vendors. At the end of the term, Biller shall be responsible to promptly return all devices, freight prepaid by Invoice Cloud, to Invoice Cloud at the place from which devices was shipped (or as otherwise designated by Invoice Cloud) in as good condition as exists at the commencement of the term, reasonable wear and tear, and casualty, in respect thereto excepted. Biller shall use each device at all times in a proper, diligent, and workmanlike manner and in such manner as will not damage or injure the device except by the ordinary wear and tear of such device. In the event of damage to any device, Biller shall notify Invoice Cloud who shall replace or repair the device at Biller’s expense. g. Devices and all parts and components thereof shall retain their character as personal property and all right, title and interest in and to shall not pass to Biller or any third party, but title and ownership shall remain exclusively with Invoice Cloud. Biller shall be and shall have the duties of a bailee of the devices. Biller shall not remove, conceal, or otherwise interfere with the title or ownership plate of Invoice Cloud affixed to any device until and unless such device is purchased, and full payment is made as herein 19 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 12 provided. If Biller sells, assigns, pledges, or attempts to sell or assign devices or any interest therein, or if Biller defaults in any of the covenants, conditions or provisions of this Agreement, it is agreed that Invoice Cloud may immediately and without notice take possession of the devices where found and remove and keep or dispose of the same and any unpaid fees shall at once become due and payable by Biller. If any step is taken by legal action or otherwise by Invoice Cloud to recover possession of any device(s) or otherwise enforce this Agreement or to collect moneys due hereunder, Biller shall promptly reimburse Invoice Cloud for all expenses and charges incurred by Invoice Cloud, including reasonable attorney's fees. 6.Kiosks (applicable where kiosks that are provided by Invoice Cloud as designated on the Biller Order Form). Kiosks (as described in the Biller Order Form) are provided to Biller for use by Invoice Cloud under a license fee provided in the Biller Order Form. Invoice Cloud provides to Biller the products (as defined below) on a license basis. Biller will be fully responsible for all kiosks including without limitation all risk of loss and damage to products while in its possession or control, save normal wear and tear. Where Invoice Cloud provides kiosks, the following additional terms apply (with “Products” and “kiosks” in this Section 6 referring to the kiosks and any firmware and software and applicable documentation included with the kiosks and/or Product, as the same may be upgraded, modified, and enhanced from time to time): a.License. Invoice Cloud grants to Biller a non-exclusive, non-transferrable, non-sublicensable right to use the Products for its Customers during the term of this Agreement, and subject to the terms hereof. The foregoing right includes, without limitation, the right to install and use the Products for purposes reasonably related to the subject matter of this Agreement, including, but not limited to, testing, and staging of the Products. All rights not specifically granted to Biller hereunder are reserved by Invoice Cloud and the kiosk manufacturer. Any and all intellectual property rights to the Products shall belong solely to Invoice Cloud and the manufacturer. Without limiting the generality of the foregoing, delivered Products shall not be (a) copied, distributed, modified, translated, adapted or altered, in part or in whole, in any way or (b) decompiled, disassembled or reverse engineered or unbundled from any product nor may Biller seek, in any manner, to discover, disclose or use any source code, proprietary algorithms, techniques or other Confidential Information contained therein. In addition, Biller may not produce, copy, alter, or modify any of the Products or Product packaging or labeling, or combine Products with any other product or services for sale without prior written consent of Invoice Cloud; such consent may be given or withheld in the sole discretion of Invoice Cloud. Biller shall not erase, remove, cover, deface, obscure, or alter any copyright, trademark, or patent notice, guarantee, or other statement or marking, affixed or applied by Invoice Cloud or the manufacturer on or to either the Products or any other technical or promotional material related to the Products. b.Manufacturer Limited Warranty. Where Invoice Cloud provides kiosks to Biller (as opposed to Biller contracting directly with a third party for the provision of a kiosk), the manufacturer warrants that the Products provided pursuant to this Agreement will materially perform in accordance with the manufacturer’s published specifications. Warranty service is detailed in Section 6(d) below. Should the Product fail to conform to manufacturer’s specifications, repair parts and replacement Products will be furnished on an exchange basis and will be either reconditioned or new as specified below. This limited warranty does not include service to repair damage to the Product resulting from accident, disaster, unreasonable use, misuse, abuse, the negligence of Biller or any third party, or non-manufacturer modification of the Product. Invoice Cloud and the manufacturer reserve the right to examine the alleged defective Product to determine whether the warranty is applicable. THE PRODUCTS FROM INVOICE CLOUD ARE PROVIDED STRICTLY “AS IS” AND INVOICE CLOUD AND KIOSK.COM SPECIFICALLY DISCLAIM ALL WARRANTIES AND CONDITIONS, WHETHER WRITTEN, ORAL, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, WARRANTIES WITH RESPECT TO MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, OR WARRANTIES ARISING FROM USAGE OF TRADE, COURSE OF PERFORMANCE OR DEALING. c.Term and Effect of Termination. Minimum fee charges as provided in the Biller Order Form shall apply from the earlier of four weeks from date of delivery to Biller of each applicable kiosk or the date that the kiosk is operational. Notwithstanding anything to the contrary in the Biller Agreement, and notwithstanding anything to the contrary in any limitation of liability provision in the Biller Agreement, in the event that the Biller Agreement or other agreement between Invoice Cloud and the Biller permits Biller to terminate the Agreement or any order relating to kiosks for the Biller’s convenience, Biller shall pay on the effective date of such termination: (a) all amounts due for the use of and all transaction fees due for use of the kiosks as of the effective date of termination; (b) all amounts that would have been due to Invoice Cloud through the end of the later of the term referenced in the Biller Agreement or the term of the kiosks referenced in the Biller Order Form, notwithstanding the termination, based on the minimum transaction fees on the Biller Order Form times the number of months remaining in the term in the Biller Order Form immediately prior to the effective date of termination, (c) all amounts due from Biller to the manufacturer for services or parts procured, and (d) any committed and non-cancellable amounts for equipment, Products or kiosks, purchased by Invoice Cloud as a result of Biller’s order of kiosks. d.Warranty Service. Service may be obtained as follows under the Advanced Exchange and Field Service Warranty from Kiosk.com: Advanced Exchange and Field Service Warranty provides a factory parts stocking plan with overnight shipping designed to minimize business disruption. The bundled warranty covers replacement of any failed part or workmanship, as well as the Field Service 20 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 13 Technician site visit expense to implement the replacement part swap. Expectations surrounding the scope of the Kiosk.com Advanced Exchange & Field Service Warranty are as follows: i. Advanced Exchange & Field Service Description • Phone and Warranty Parts Shipment Support. In the event that there is a warranty or support issue with any Kiosk, please contact Invoice Cloud support. The Exchange Warranty outlined below applies. • If replacement part and/or Field Service Technician is required, Invoice Cloud (through the manufacturer) arranges for overnight shipment of replacement parts and schedules the Kiosk.com Field Technician Visit to arrive (typically within 24 hours of call receipt). • Service will be provided pursuant to service level provided in the SLA addendum at www.invoicecloud.net/sla • No charge for replacement components to the extent warranted hereunder and subject to the terms and conditions herein. • Kiosk.com covers inbound and outbound shipping costs for failed/replacement parts except as provided herein. The manufacturer provides the Biller with an RMA number and a pre-paid return shipping label with each replacement component. When the Biller receives the replacement, the failed part is then returned with the Kiosk.com pre-paid label. ii. Exchange Warranty – Out of Scope Items • The warranty and support commitments include the original kiosk enclosure and all components as shipped from the manufacturer’s factory but does not include consigned components, any Biller or customer software application, network connectivity service, custom modifications, or changes made to the system, cleaning, installation, or repositioning of any system. • Returned parts with No Defect Found (following the manufacturer failure analysis) will be billed back to the Biller. No Defect Found fees include reversal of any component credit, any applicable shipping and handling fees, and an hourly RMA diagnostic fee of $125 / hour. • The most common source of No Defect Found parts is component maintenance and cleaning neglect in the field. Biller is responsible for keeping each kiosk clean through occasional wiping down with damp cloth, dusting, etc. • Warranty does not include any customer application software, drivers, or special interface equipment and configuration unless specifically noted in the purchase contract. • The warranty does not apply to expendable items (i.e., normal wear and tear of external graphics, etc.). Paint damage due to normal wear and tear is not covered under this warranty. Paint damage resulting from manufacturing defects will be covered by this warranty. • Damage caused by cleaning, neglect, vandalism, physical abuse, or environmental acts of God are not covered under this warranty. iii. Additional Exchange & Field Service Warranty Terms and Conditions • Warranty service is guaranteed for 30 days for workmanship after the service is complete. • Replacement components are not guaranteed to be new components and may come from the manufacturer refurbished and tested stock (at the discretion of the manufacturer). • The three-year warranty on part defects is not extended if replacement parts are provided in a maintenance action. • This warranty is voided by misuse, accident, modification, and unsuitable physical or operating environment, improper maintenance by Biller, a Customer or any other third party, or customer’s other service organizations, removal or alteration of part identification, or failure caused by a product or component not supplied by Invoice Cloud or manufacturer, or for which Invoice Cloud or the manufacturer is not responsible, or any modifications or changes to components or to the kiosk without Invoice Cloud’s written approval. • Requests for optional Hourly Field Service Technician service calls must be received by 1:00 pm MST, Monday through Friday (except national holidays), to be eligible for the next business day site arrival (24-hour) service metric. Technician request calls received after 1:00 pm MST will be scheduled on the following business day. Field service charge is $175 / hour. 21 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 14 • Biller will provide onsite contacts for each location. Exceptions to fulfillment of onsite service can include holidays or events that prohibit access to the location. • Keys must be on-site and available prior to the dispatch of a Field Technician. • Payment of out-of-scope service fees is due upon invoice. Invoice Cloud reserves the right to suspend service and support until delinquent account payments are settled in full. Invoice Cloud and the manufacturer shall use reasonable efforts to provide the kiosks in an uninterrupted, continuous fashion. Biller understands and agrees that services may be periodically offline or otherwise inoperable in order for Invoice Cloud or the manufacturer to perform maintenance, install or test software, or for other commercially reasonable business purposes and that during such time services may not be provided. Biller further understands and agrees that from time to time services may be off line or otherwise inoperable as a result of the failure of products, equipment or services provided to manufacturer by third parties (e.g. public or private telecommunications services or internet nodes or facilities, overall internet congestion, unavailability of internet services, such as DNS services), and that during such time Services may not be provided. Furthermore, Biller understands and agrees that the provisions of services and other performances hereunder will be excused for any of the reasons set forth herein. In the event of unforeseen network or equipment failure, the manufacturer will use commercially reasonable efforts to restore the services in a reasonably prompt fashion. The manufacturer may from time to time, in its sole discretion, modify the manner in which it provides services and modify its software and systems, all of which may result in a change in the manner in which the manufacturer provides the software and systems; provided, however, that such modifications and/or changes will not degrade the level of, or have a material adverse impact upon, the features and functionality of the product or services. e. Responsibilities of Biller. 1. Biller will be responsible for the following: (i) providing Invoice Cloud with a static IP address or a specific range of static IP addresses, and (ii) confidentiality of End User’s Data. Biller is solely responsible for ensuring the secure transmission of any data that Biller transmits to Invoice Cloud (“Biller Transmitted Information”), and Invoice Cloud and manufacturer will have no liability therefore. Biller is solely responsible for adopting, implementing, and maintaining appropriate and effective security measures, procedures, policies, and standards, and any other best practice available to protect the confidentiality of Biller Transmitted Information, (iii) protecting the confidentiality of any information stored on Biller’s servers, and (iv) using the Services in the manner instructed by Invoice Cloud and the manufacturer and otherwise in the manner intended. 2. Biller shall be solely responsible for ensuring that Biller’s employees and contractors are not security risks. Biller will be solely responsible for the selection, implementation, and maintenance of security procedures and policies that are sufficient to ensure that (a) Biller’s use of the Network Connection is secure and is used only for authorized purposes, and (b) Biller’s business records and data are protected against improper access, use, loss, alteration or destruction. 3. Biller shall provide Invoice Cloud or the manufacturer with physical access to the kiosks upon request after reasonable advance notice. Biller shall not, nor allow any third party to, modify, repair, relocate, sell, lease, assign, encumber, or otherwise tamper with any of the kiosks without Invoice Cloud’s or the manufacturer’s express written consent. Any change of the location of the kiosks may warrant that Biller pay Invoice Cloud any additional installation and related charges associated with such relocation, charged by Invoice Cloud’s third-party vendors. At the end of the term, Biller shall be responsible to de-install all kiosks, return all kiosks, freight prepaid by Biller, to Invoice Cloud at the place from which kiosks was shipped (or as otherwise designated by Invoice Cloud) in as good condition as exists at the commencement of the term, reasonable wear and tear, excepted. Biller shall use and ensure that the kiosks are at all times used in a workmanlike manner and in such manner as will not damage or injure the kiosks except by the ordinary wear and tear of such kiosks. In the event of damage to any kiosks, Biller shall promptly notify Invoice Cloud who shall replace or repair the kiosks at Biller’s expense. f. Personal Property of Invoice Cloud. Kiosks and all parts and components thereof shall retain its character as personal property and all right, title and interest thereto shall not pass to Biller, but title and ownership shall remain exclusively with Invoice Cloud. Biller shall be and shall have the duties of a bailee of the kiosks. Biller shall not remove, conceal or otherwise interfere with the title or ownership plate of Invoice Cloud affixed to kiosks. If Biller sells, assigns or attempts to sell or assign kiosks or any interest therein, or if Biller defaults in any of the covenants, conditions or provisions of this Agreement, it is agreed that Invoice Cloud may immediately and without notice take possession of kiosks where found and remove and keep or dispose of the same and any unpaid fees including all fees as provided herein and in the Biller Order Form will be due and payable. If any step is taken by legal action or otherwise by Invoice Cloud to recover possession of kiosks or otherwise enforce this Agreement or to collect moneys due hereunder, Biller shall pay Invoice Cloud the equivalent of the moneys expended or charges incurred by Invoice Cloud in such behalf, including reasonable attorney's fees. 7. Interactive Voice Response Functionality and Outbound Communications (“IVR”) a. License. For and in consideration for the payment of all fees and charges paid to Invoice Cloud, as provided in the Biller Order Form, Invoice Cloud hereby licenses to Biller, non-exclusive access to its proprietary IVR for Biller’s internal use only. 22 Biller Agreement Biller Agreement Rev 5.1.5 The complete Biller Agreement includes the Biller Order Form, the Biller T+C and this Agreement Page | 15 b. Indemnification. Biller agrees it will not use the IVR in any manner, shape or form that violates any local, state or federal law or regulation (including without limitation violations of Fair Debt Collection Practices Act, 15 U.S.C. § 1692 –1692p ) and will defend and hold Invoice Cloud and its licensor harmless from and against any and all claims and will indemnify Invoice Cloud and its licensor against any and all costs, fines, penalties, causes of action, allegations, suits, and claims, including reasonable attorney’s fees and expenses as a result of any act by Biller. Likewise, Invoice Cloud agrees it will not use the design or establish service in any manner, shape or form that results in an intellectual property rights infringement claim by any third party and will hold Biller harmless from any and all claims and will indemnify Biller from and against any and all costs and claims, including reasonable attorney's fees as a result of any third party intellectual property rights infringement claim against Invoice Cloud or its licensor. c. Legal Compliance. Biller shall comply with all applicable laws, regulations, or other requirements of any governmental authority which relate to or affect this Agreement and the Biller’s performance hereunder. Notwithstanding anything to the contrary in the Biller Agreement and these terms and conditions or other agreement between the parties, Biller shall be responsible for compliance with all applicable laws and regulations related to the call flows, content, prompts, and data flows and the Biller’s benefits and uses of the IVR, and the instructions and directions in the use of the IVR that it has provided. Although neither Invoice Cloud nor its licensor provides legal advice to Biller, Biller understands and acknowledges and shall comply with all laws, rules, and regulations regarding do not call lists, legal calling times, and dialing cellular numbers, and shall abide by all applicable laws, rules, and regulations while implementing or using IVR. d. No Warranty. NEITHER INVOICE CLOUD NOR ITS LICENSOR MAKES ANY WARRANTY OR ANY REPRESENTATION, EXPRESS OR IMPLIED WRITTEN OR ORAL, RELATING TO THE IVR UNDER THIS AGREEMENT OR OTHERWISE INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY THAT THE SERVICES ARE FIT FOR ANY PARTICULAR PURPOSES OR OF MERCHANTABILITY, AS THE IVR IS PROVIDED “AS IS”. BILLER AGREES THAT NEITHER INVOICE CLOUD NOR LICENSOR WARRANTS THE IVR OR ITS SERVICES WILL BE ERROR FREE OR OPERATED UNINTERRUPTED, AND THAT NEITHER INVOICE CLOUD NOR LICENSOR WILL BE HELD RESPONSIBLE IN ANY MANNER, SHAPE OR FORM FOR ANY FAILURE OF THE IVR OR ITS SERVICES TO PERFORM ANY PARTICULAR FUNCTION. In the event of a breach of this warranty by Invoice Cloud or any licensor, Invoice Cloud will use reasonable efforts to attempt to resume provision of the IVR. Biller acknowledges IVR or its services is provided through telephone and electronic devices and shall not hold Invoice Cloud or any licensor responsible for any failure due to technical or electronic failures. Further, neither Invoice Cloud nor licensor is responsible for any poor result as a result of judgments and choices made by Biller in using any IVR service. 8. Incorporation by Reference into Agreement, Modification. These Biller Terms and Conditions are incorporated by reference into the Agreement and may be modified by Invoice Cloud as a result of changes in applicable law, regulatory requirements, PCI-DSS requirements, card network rules, ACH requirements or card association or payment processor requirements. 9. California Consumer Privacy Act of 2018 All capitalized terms used in this Section 9, not otherwise defined, shall have the meaning established in the California Consumer Privacy Act of 2018, as amended (Cal. Civ. Code §§1798.100 to 1798.199), and any related regulations or guidance provided by the California Attorney General (“CCPA”). Regardless of Biller’s status as a Business, Invoice Cloud is a “Service Provider” pursuant to CCPA. Invoice Cloud’s obligations as a Service Provider include: a. Invoice Cloud will not Sell Personal Information. b. Invoice Cloud will not retain, use, or disclose Personal Information for any purpose other than for the specific purpose of providing the Service, as set out in the Agreement, or as otherwise permitted by CCPA. c. Invoice Cloud will not retain, use, or disclose Personal Information for any commercial purpose other than providing the Service. d. Invoice Cloud shall provide reasonable assistance to Biller in facilitating compliance with Consumer rights requests. e. Upon direction by Biller, and with a commercially reasonable amount of time, Invoice Cloud shall delete the Personal Information. f. Invoice Cloud shall not be required to delete any of the Personal Information to comply with a Consumer’s request directed by the Biller if it is necessary to maintain such information in accordance with Cal. Civ. Code §1798.105(d). Invoice Cloud shall promptly inform Biller of the exceptions relied upon under §1798.105(d) and Invoice Cloud shall not use the Personal Information retained for any other purpose than provided for by the exception or as otherwise permitted by CCPA. g. Invoice Cloud certifies it understands the prohibitions in this Section 9 and will comply with them. h. If Invoice Cloud, in its sole discretion, uses a Service Provider to provide the Service, Invoice Cloud will enter into written agreements with such Service Providers requiring the Service Provider abide by terms substantially similar to this Section 9. 23 IC Confidential - McHenry InvoiceCloud Statement of Work City of McHenry, Illinois 1 Invoice Cloud Statement of Work City of McHenry, Illinois Overview The Invoice Cloud (IC) suite of services (The Service) will give the City of McHenry, Illinois (City of McHenry, Illinois ) and its customers the ability to accept online payments for invoiced and non-invoiced items. The Service will allow the City of McHenry, Illinois to offer online payment processing in a securely hosted real-time environment. Customers will be able to locate, view and print bills or invoices and payment records online and pay using credit cards, debit cards, and electronic checks. Definitions: 1. City of McHenry, Illinois – Merchant / City of McHenry, Illinois 2. Payer – Client customer, resident, person paying a bill or invoice 3. EBPP – Electronic Bill Presentment & Payment 4. Bill – Bill and Invoice are used synonymously throughout this document 5. RTDR - Real-Time Data Refresh – collects and aggregates the data as soon as a user accesses a specific function 6. NTDR – Near-Time Data Refresh – integration that happens periodically; the data is collected immediately but it is not aggregated until later – data can be processed every day, every hour or even every few minutes 1. Security and Industry Compliance Invoice Cloud maintains full compliance with current applicable Payment Card Industry (PCI) standards, Cardholder Information Security Program (CISP) regulations and National Automated Clearinghouse Association (NACHA) rules and guidelines. Invoice Cloud will abide by such guidelines for the security of all cardholder data that Invoice Cloud possesses. a. PCI - Invoice Cloud will provide compliant storage of City of McHenry, Illinois ’s customer payment information that is certified by Visa/MasterCard. Data security measures are addressed during collection and transmission via SSL with our patent pending encryption technology. All confidential information will be treated in accordance with the PCI standards. b. Software as a Service (SaaS) Architecture – All City of McHenry, Illinois customer financial and payment information and the invoice presentment and payment processing application is housed offsite from City of McHenry, Illinois . c. Browser Compatibility - Invoice Cloud supports the most current version of the industry’s most common browsers. 2. Data Integration Invoice Cloud does maintain an integration with Tyler- Incode. The integration for the City of McHenry, Illinois will include the functionality found in Appendix B. 3. Payer Portal The Payer Portal is an electronic bill presentment and online payment portal where a City of McHenry, Illinois ’s customer (Payer) can view a bill and then proceed, within the same user interface, to make an online payment. a. Invoice Cloud will present bills electronically through a payer portal that is branded for City of McHenry, Illinois or via an email notification, if the Payer provides an email address. b. The electronic invoice presentment will simulate the paper invoice City of McHenry, Illinois uses and will be available in PDF and/or html format. 24 IC Confidential - McHenry InvoiceCloud Statement of Work City of McHenry, Illinois 2 c. The Service may provide the Payer the option of making a payment via credit card (Visa, MasterCard, American Express and Discover) or electronic check (also referred to as ACH, e-check, EFT). d. The Service provides the Payer a one-time online payment option without registration, and the capability to register to access Payer’s account history, schedule a payment, or set up AutoPay payments. e. A Payer will have the ability to choose their payment date (also known as scheduled payments). f. The system will accept partial, full, or overpayments as defined by the City of McHenry, Illinois . g. The Payer will register with the Service using the authentication method designated by City of McHenry, Illinois . h. Linking Accounts - After registering with the Service, the Payer will be able to login into their account(s). If the Payer has multiple accounts and uses the same authentication information for all accounts, the Payer will be able to link their account and view from a single registration. The Payer will then have the option to choose which account they would like to pay or view in further detail. i. The Payer will receive an email confirmation of payment after any payment process. j. The Payer will have the ability to search and access historical bills once they register with the Service. The Service will store twenty-four (24) months of rolling history from the point of City of McHenry, Illinois ’s first invoice file upload to the Service. This includes invoice history and account history. k. City of McHenry, Illinois has the option of allowing the Payer to pay via different payment methods which include online, IVR, IC City of McHenry, Illinois Portal, Pay by Text, CloudCSRConnect and CloudPOSConnect. l. Payers who have scheduled a payment or registered for AutoPay will receive email notification from the Service of pending payments. m. The Service includes shopping cart functionality. n. The Service will allow the Payer the option to elect paperless billing. o. A Payer registered for paperless billing will be automatically placed back on paper billing if their email address is undeliverable; notification of the Payer’s undeliverable email address will be sent to City of McHenry, Illinois via email. p. The Service complies with Federal E-Signature Act for paperless billing and AutoPay by providing a system in which a Payer must confirm enrollment in paperless billing and/or AutoPay by responding to an email sent after the Payer registers for paperless billing and/or AutoPay through online self-service. 4. City of McHenry, Illinois Portal The City of McHenry, Illinois Portal is an administrative portal where City of McHenry, Illinois staff will have access to reporting, search customers, search invoices, search payments, initiate payments or credits, login as a Payer, modify email templates, etc. a. City of McHenry, Illinois can log in as the Payer on either the City of McHenry, Illinois or Payer Portal and make a payment on behalf of the Payer. There is an audit trail for who made the payment, and the source of every payment (CSR, Pay by Text, AutoPay, Web, IVR, etc.). b. City of McHenry, Illinois will have the capability of blocking future payments by specific Payer and payment method type (i.e. Credit Card or E-Check (ACH). c. Permissions – The City of McHenry, Illinois Portal includes a table of role based permissions, determined by the City of McHenry, Illinois ’s System Administrator. Each permission is applied to a user ID on an individual basis to maximize flexibility. The system administrator can allow or disallow access to functions such as viewing data, creating reports, resending email notices, processing payments, credits or refunds, editing email templates and more. Since it is controlled by City of McHenry, Illinois administrator, changes can be made quickly on an as needed basis. d. Administrative Email Notifications - City of McHenry, Illinois may set up the system to send several administrative notifications and request system notifications be sent to multiple staff members. This allows different departments to get the information they need in a timely manner. The notifications include: • ACH Reject Notifications 25 IC Confidential - McHenry InvoiceCloud Statement of Work City of McHenry, Illinois 3 • Batch Close Notifications • Daily Management Report • File Processing Notifications • Month End Billing Invoice • Paperless Customer Email Bounce Daily Report • Request System Notifications (this is the ticketing system available in the Invoice Cloud payer portal). • Status Notifications (notifications of planned outages, new features, etc.) e. City of McHenry, Illinois Controlled Configuration Options – The City of McHenry, Illinois Portal includes several City of McHenry, Illinois controlled configurable options to customize the way payments and customer accounts are handled. The City of McHenry, Illinois will be able to configure for: • allowing Auto-Pay and scheduled payments • allowing customers to update their phone or mailing address through the payer portal • allowing customers to pay less than, or more than the balance due based on receivable type • updating Refund Policy description • updating customer service phone number 5. City of McHenry, Illinois Portal - Reporting City of McHenry, Illinois can access a selection of pre-configured reports. City of McHenry, Illinois can request reports for daily, monthly, or date range activity. Most reports can be exported to excel files or scheduled for download as a custom report, as indicated by asterisk (*) in the report name. All stored payment data is truncated, and this is reflected in all reports. a. Reports: b. Search Customers* c. Search Invoices d. Search Payment Transactions* e. Monthly Summary f. Registration Report* g. Autopay Report* h. Paperless Report* i. Data Synchronization History j. EFT/ACH Rejects* k. View Scheduled Payments* l. Invoice File History m. Import Errors n. Daily Payments Received* o. Total Outstanding Invoices p. Email Notification Summary q. Email Statistics r. Email Tracking s. Bounced Email Report • Email Statistics • Email Tracking • Bounced Email Report 6. Payer Email Notifications Invoice Cloud provides a set of customizable email notification templates for each invoice type that are delivered for numerous events surrounding electronic invoice presentment and payment activity. Email notifications may 26 IC Confidential - McHenry InvoiceCloud Statement of Work City of McHenry, Illinois 4 be customized through the City of McHenry, Illinois Portal using a Word style editor and options to insert secure hyperlinks to website, links to electronic documents such as newsletter or bill inserts, and/or variable fields selected from the City of McHenry, Illinois ’s data file. a. Three (3) email notifications can be scheduled. The first notification is based on the number of days from the invoice due date. Second and third notifications will only be sent to Payers with an outstanding balance, not those with a scheduled payment, or Payers who have signed up for Auto-Pay. b. At the discretion of City of McHenry, Illinois , Payer email notifications can be delivered for each of the following events. • First Invoice Email Notification • Second Invoice Email Notification • Third Invoice Email Notification • Payment Transaction Receipt • Declined Auto Pay Transaction • Late Fee Email Notification • Declined Scheduled Payment Notification • Registered Customer Welcome Email • AutoPay Registration Notification • Paperless Registration Notification • ACH Reject/Chargeback Notices (with reason codes and descriptors) • Credit Card Expiration Notification • Scheduled Payment Confirmation • AutoPay Reminder Notification • FlexPay Confirmation Notification • Scheduled Payment Reminder • Paperless Off Confirmation • Online Bank Direct Payment Receipt • Linked Accounts First Notice Notification • Linked Accounts Second Notice Notification • Linked Accounts Third Notice Notification • AutoPay Off Confirmation • Conveyed Customer Notification • Multiple Registered Customers Welcome Email • Recurring Scheduled Payment Confirmation • Recurring Scheduled Payment Canceled 7. Business Rules The Invoice Cloud solution is designed for flexibility for customers and City of McHenry, Illinois s. There are many rules currently available and we will also undertake the creation of new business rules as we both agree. Each bill type operates independently and can accept different payment types as well as other business rules. At City of McHenry, Illinois ’s option, multiple business rules can be applied to each bill type. Invoice Cloud provides flexibility regarding business rules to support specific needs, including: a. Ability to allow partial payments, over payments, full balance only, or late fees. b. Ability to allow payments beyond the due date - The service is designed to accommodate City of McHenry, Illinois specific business rules like allowing payments beyond their due date. c. Ability to allow for multiple payment types for one customer for the same bill - The service allows multiple payment types from one customer for the same bill when partial payments are allowed. Credit/debit card and e-check (ACH) can be run separately and an unlimited number of remittance types can be used. For example, a customer can pay part of a bill with a checking account, another part with a credit card and the remainder with a second credit card of a different type. 27 IC Confidential - McHenry InvoiceCloud Statement of Work City of McHenry, Illinois 5 28 IC Confidential - McHenry InvoiceCloud Statement of Work City of McHenry, Illinois 6 8. Implementation Process Invoice Cloud assigns an Implementations Manager (IM) to each City of McHenry, Illinois . The IM will be the City of McHenry, Illinois ’s primary contact during the implementation process and coordinates all necessary resources from City of McHenry, Illinois , City of McHenry, Illinois software company, Invoice Cloud, and any sub-contractors. The IM will provide the City of McHenry, Illinois with the following documents to facilitate the project: a. New City of McHenry, Illinois Questionnaire & Questionnaire Key – Documents critical information needed to setup and initiate the service including information on business rules and feature selection. b. Project Timeline – Details project schedule and milestones. c. Testing & Training Plan – This plan walks the City of McHenry, Illinois through a set of user acceptance testing criteria and facilitates training on the service. 9. Support & Training a. Business Hours – The business hours will be Monday through Friday from 8 a.m. to 8 p.m. Eastern Standard Time. Note: City of McHenry, Illinois Support hours are 8 a.m. to 8 p.m. EST. Payer Support hours are currently 8 a.m. to 4 p.m. EST. b. Help Desk - The Service will provide a helpdesk ticketing system for City of McHenry, Illinois within the City of McHenry, Illinois Portal to get help from Invoice Cloud client support team. This tool will allow City of McHenry, Illinois to track and retain resolutions for historical reference. c. Payer Support – The Payer Support is two tiered with City of McHenry, Illinois staff as the first line of support regarding account, registration and billing questions. Issues with the Invoice Cloud service operation or incorrect credit card charges will be routed to Invoice Cloud Client Support via telephone or a City of McHenry, Illinois helpdesk ticket. d. City of McHenry, Illinois Support - If City of McHenry, Illinois encounters an inquiry which they cannot resolve City of McHenry, Illinois will create a helpdesk support ticket. Invoice Cloud Customer Support will address the issue and if applicable provide training to City of McHenry, Illinois to allow the address of tickets in a timely matter; often within twenty-four (24) business hours. City of McHenry, Illinois and technical support is available during business hours. i. Routine Technical Support - Technical Support is available during business hours. City of McHenry, Illinois may call customer support directly; however, the use of the helpdesk ticketing system is encouraged as the preferred method of contact. Invoice Cloud staff views all tickets as they are submitted and routes them to the appropriate person for resolution. ii. Emergency After-Hours Support – The helpdesk service is monitored after business hours and emergency support issues are addressed within one (1) hour. An emergency support issue is defined as an issue involving the system being down and inoperable and does not include Payer payment issues. City of McHenry, Illinois may request email notification be provided in the event the system is down and inoperable. e. Service Enhancements - Most enhancements do not require action on the part of City of McHenry, Illinois . Upgrades as agreed are done at the Invoice Cloud server level, so there are no mandatory actions for City of McHenry, Illinois to take. Support levels are not affected by enhancements. f. City of McHenry, Illinois Training- City of McHenry, Illinois staff will be guided in how to use the system through in-house training, documentation, remote live sessions, and access to our client support team. • All standard training will be done remotely. Invoice Cloud’s training personnel will provide sessions for both Payer and City of McHenry, Illinois portals for City of McHenry, Illinois ’s staff. • Separate training is conducted for City of McHenry, Illinois ’s technical staff regarding the uploading of bill files and any other applicable processes. • Ongoing phone and Go-To-Meeting training will be provided during the first month of use at no additional cost to City of McHenry, Illinois . 29 IC Confidential - McHenry InvoiceCloud Statement of Work City of McHenry, Illinois 7 10. Marketing Invoice Cloud provides free marketing resources that City of McHenry, Illinois s can use to promote EBPP payment solutions to their payers. City of McHenry, Illinois s will receive a comprehensive document outlining proven marketing best practices. In addition, City of McHenry, Illinois s will be granted access to Invoice Cloud's proprietary Marketing Resource Center. This online tool allows City of McHenry, Illinois s to easily and simply download and/or customize marketing materials on demand. These materials include: • Bill inserts • Envelope teasers • Onsite posters • Counter displays and clear acrylic stands • Social media and website graphics • Content for newsletters and press releases • Pay buttons • Email content and layout suggestions • Communications plans • and more City of McHenry, Illinois s also have access to weekly live training sessions where they will learn about our recommended best practices for effectively communicating the many benefits of making payments electronically and have the ability to ask questions. We’ll outline simple steps to help improve online payment adoption among their customers. We’ll also review the Marketing Resource Center which will enable City of McHenry, Illinois s to create many of the materials mentioned above 11. CloudIVRConnect™ The IC CloudIVRConnect allows City of McHenry, Illinois s to accept payments via our interactive voice response system. It provides customers with 24-hour access to account status and billing information (total balance due, past due amount, last payment made, next billing date etc.). The following options are available: • Provides for a toll-free call and a caller ID number set by the City of McHenry, Illinois • Supports messaging in both English and Spanish • Provides for a customizable initial greeting (includes City/County/Company name) – all remaining prompts are standard • Ability to pay with credit card (Visa, MasterCard, Discover, American Express), debit card, or eCheck (ACH) • Replays information with Invoice Cloud generated confirmation # 12. CloudSMSConnect™ The IC CloudSMSConnect allows City of McHenry, Illinois s to accept payments via SMS text messaging. The following options are available: • Provides interactive registration and service sign-up confirmation • Sends notification when new bills are available for payment • Ability to pay with credit card (Visa, MasterCard, Discover, American Express), debit card, or eCheck (ACH) • Allows for payment utilizing a stored-payment method 13. AgentConnect™ The IC AgentConnect allows City of McHenry, Illinois s (Agent/CSR/Other) to login to the Customer Portal and perform actions on behalf of a specific customer/account. The following options are available: • Ability to pay with credit card (Visa, MasterCard, Discover, American Express), debit card, or eCheck (ACH) 30 IC Confidential - McHenry InvoiceCloud Statement of Work City of McHenry, Illinois 8 • Ability to enroll customer in AutoPay • Ability to enroll customer in Paperless • Ability to enroll customer in Pay by Text • Option to require authorization/disclosure statement before Customer Portal entry • Option to enable card swipe functionality at point of sale • Provides built-in auditing to track Agent/CSR activity in the City of McHenry, Illinois Portal 14. CloudStore™ The IC CloudStore allows City of McHenry, Illinois s to accept payments for non-invoiced services like books, t- shirts, etc., fire, police, building permits, or activity programs. The following options are available: • Accept electronic check and or credit/debit cards. • Customer receives immediate email confirmation of payment. • Department receives email notification of purchase event for instant fulfillment services. • Ability to apply convenience fees, if required. • Reporting by service type. • Linked to City of McHenry, Illinois branded payment portal. • Each service type can have its own online registration form. • Can be setup to accept payments over the counter. 15. Online Bank Direct™ The IC Online Bank Direct (OBD) allows City of McHenry, Illinois s to electronically import echeck (ACH) payments initiated from consumer bank bill sites. The following options are available: • Auto-matching of payments with open invoices • Email consumer a payment notification for those customers with an email address on file • Ability to apply a single payment to multiple invoices • Custom search capabilities to locate matching invoice(s) • Electronic deposit of corresponding echecks This SOW contains many products, services and payment methods. Only the specific products, services and payment methods selected by the City of McHenry, Illinois , as outlined in the City of McHenry, Illinois Order Form, are included in the delivery of products, services and payment methods. IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement. City of McHenry, Illinois Invoice Cloud, Inc. By: _______ By: _____________________________ Printed Name: _____ Printed Name: Kevin W. O’Brien ____ Title: _ ______ ___________ Title: President __________ 31 IC Confidential - McHenry InvoiceCloud Statement of Work City of McHenry, Illinois 9 Date: _ ___ Date: ______________________________ 8/9/2023 32 IC Confidential - McHenry InvoiceCloud Statement of Work City of McHenry, Illinois 10 Appendix A: System Modifications As outlined below, Invoice Cloud has agreed to make the following changes to the setup and functionality of our Tyler- Incode: NONE 33 IC Confidential - McHenry InvoiceCloud Statement of Work City of McHenry, Illinois 11 Appendix B: Integration Supported Features Modules & Features Tyler Technologies - Incode PRODUCTS   Invoice Types Utilities EBPP Supported Cloud IVR Connect Supported Pay by Text Supported Apple Pay Supported Google Pay Supported PayPal Supported DATA EXCHANGE Method  Frequency Invoices Invoice Cloud FTP As Needed Payments Lockbox/Payment File Daily AutoPay Flags Manual via Biller Portal As Needed Paperless Flags Manually via Biller Portal As Needed Account Balances Adjustment/Balance File - FTP As Needed Block Payment Method (Credit/ACH) Manually within Biller Portal As Needed INVOICE FILES   IC Translates file Supported Historical Data (2 years shown online) Supported BILL PRESENTMENT   PDF Extraction (Partial/Full) Supported Link to PDFs Preferred BATCH CLOSE   Standard or Custom Custom CUSTOM OPTIONS   Branded Biller Portal Supported Branded Payer Portal Supported 34 IC Confidential - McHenry InvoiceCloud Statement of Work City of McHenry, Illinois 12 Appendix C: Biller Deliverables Deliverable Sample Invoice File (BIF) Sample Adjustment File Sample Images of Bills Auto Pay Conversion data if applicable Paperless conversion data if applicable 35 IC Confidential - McHenry InvoiceCloud Statement of Work City of McHenry, Illinois 13 36 Biller Order Form BILLER ORDER FORM INVOICE TYPE PARAMETER SHEET Invoice Type Parameters must be completed for each invoice type Invoice Type Utility Billing Pricing Model Non-Submitter Jack Wiediejwiedie@invoicecloud.comBiller Pays Network Fees Yes CURRENT BILLING DETAILS Please indicate how many bills are sent monthly by placing the bill count for each month below: JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 3500 Avg CC Transaction $ 120.00 Max Invoice $ 125,000.00 Bill Frequency Monthly Avg. Bills Per Month 3500 PRODUCTS AND SERVICES Products and Services [EBPP] [IVR] [OBD] [Point of Sale] TRANSACTIONAL PRICING (Paid by Biller) Payment Source Description Payment Method Fee Rate % Fee Amount $ Additional Fee $ All Payment Sources Credit/Debit/PayPal 2.65% All Payment Sources ACH/EFT $0.95 IVR All Payment Methods $0.95 Online Bank Direct All Payment Methods $0.50 TRANSACTIONAL PRICING EXCEPTIONS SERVICE FEES (Paid by Payer) Payment Source Description Payment Method Fee Amount Calculation Type Min. Fee ($) per Transaction SERVICE FEE EXCEPTIONS MAX PAYMENT CAP Card and PayPal Max ($) 125,000 ACH Max ($) 125,000 BILLER BANK ACCOUNT (FOR DEPOSITS AND CHARGEBACKS) Note: must include voided business check or bank letter for each unique account Routing # Last 4 Acct # Last 4 Acct # for OBD NOTES / SPECIAL HANDLING 37 Biller Order Form SALES INFORMATION IC Sales Rep Jack Wiedie Vertical Utility Order Date 8/8/2023 jwiedie@invoicecloud.com Billing Software Tyler - Incode BILLER INFORMATION Ownership Type Government Phone 815-363-2100 Fax Legal Name City of McHenry Website URL cityofmchenry.org Address 1 333 S. Green Street Bus. Open Date Address 2 Federal Tax ID City McHenry *Federal Tax ID and Legal Name must match on all documents State IL ZIP 60050 Array BILLER CONTACT Primary Contact Name Carolyn Lynch Phone 815-363-2117 Email Address SIGNING AUTHORITY Name Wayne Jett Title Mayor Phone 815-363-2100 Fax Email Address BILLER BANK ACCOUNT (FOR INVOICE CLOUD AND NETWORK FEES, AND AS PROVIDED IN THE BILLER AGREEMENT) Note: Must include voided business check or bank letter for each unique account Billing Method Direct Debit Routing # Last 4 Acct # PAYMENT METHODS ACCEPTED Payment Methods [American Express] [VISA/Mastercard/Discover] [PayPal] [ACH/EFT] BILLER PRICING (see Invoice Type Parameter Sheet(s) for invoice-type-specific pricing)* Description Interval Cost Type Cost Credit Card - Chargeback Fee Non-Submitter Per Transaction Fixed ($) $10.00 EFT - ACH Reject Fee Non-Submitter Per Transaction Fixed ($) $10.00 Online Bank Direct - OBD Access Fee Monthly Fixed ($) $50.00 PayPal Brands - Chargeback Fee (PayPal Brands) Per Transaction Fixed ($) $10.00 Invoicing - Biller Portal Access Fee Monthly Fixed ($) $100.00 Invoicing - Invoice Presentment For Paperless Customers Per Transaction Fixed ($) $0.30 HARDWARE Card Reader Type Quantity Cost per Reader 38 Card Reader Billing Interval Monthly Shipping Address (if different than location address) DATA RETENTION Months to Keep 24 *Additional Fees apply if greater than 24 months IMPLEMENTATION CHARGES Description Interval Cost Implementation (per SOW) One-Time $0.00 (WAIVED) NOTES/SPECIAL HANDLING [signature page follows] 39 CERTIFICATION AND AGREEMENT A. By signing below, the Biller hereby ratifies its authorization for Invoice Cloud, Inc. ("Invoice Cloud") to execute debit/credit entries to the Biller Bank Account(s) indicated above at the depository financial institution(s) named above and to debit/credit the same such account(s). The Biller acknowledges that the origination of ACH transactions to its account(s) must comply with the provisions of U.S. law. This authority is to remain in full force and effect until (i) Invoice Cloud has received written notification (by electronic or U.S. mail) from the Biller of its revocation in such time and manner as to allow Invoice Cloud a reasonable opportunity to act on it, but not less than 10 business days notice; and (ii) all obligations of the Biller to Invoice Cloud that have arisen under this Agreement and all other agreements have been paid in full. The Biller must also notify Invoice Cloud, in writing, (by electronic or U.S. mail) when a change in Biller Bank Account account number(s) or bank has occurred at which time this authorization shall apply to such new/changed Biller Bank Account. This notification must be received no less than 10 business days in advance of any change. A fee will be charged for any returned or rejected ACH debits. B. By signing below, the Biller named: (1) has read, agreed to, ratifies the Biller Agreement, Biller T+Cs (referenced in the Biller Agreement) and other Order Forms previously executed by the Biller, and (2) certifies to Invoice Cloud that he/she is authorized to sign this Order Form; (3) certifies that all information and documents submitted in connection with this Order Form are true and complete; (4) authorizes Invoice Cloud or its agent to verify any of the information given, including credit references, and to obtain credit reports ; (5) agrees to pay the Monthly Access Fee through the last day of the month following the effective date of termination as provided in the Billing Agreement; (6) agrees that Biller and each transaction submitted will continue to be bound by the Order Form and the Biller Agreement in its entirety and any new agreement forms executed herewith; (7) agrees that Biller will submit transactions only in accordance with the information in this Biller Order Form and Biller Agreement and will immediately inform Invoice Cloud, by email (contracts@invoicecloud.com) if any information in this Order Form changes, and (8) In the event of non-payment of any sums due, Invoice Cloud reserves the right to withdraw such sums from the Biller Bank Account at any time to ensure payment of the same. C. Pay by Text: Standard data rates and text messaging rates may apply based on the payer's plan with their mobile phone carrier. Payer can opt out of text messaging at any time with Invoice Cloud. Partial payment or overpayment is not supported. Biller may not use the service for activities that violate any law, statute, ordinance or regulation. D. This Biller Order Form will become effective only when signed by Invoice Cloud. In WITNESS WHEREOF, the parties have executed this Agreement as of this day Accepted by Biller: Accepted by Invoice Cloud, Inc.: X X Corporate Officer/Authorized Official Corporate Officer Wayne Jett Kevin W. O'Brien Printed Name Printed Name Mayor President Title Title 40 Chief of Police John R. Birk McHenry Municipal Center 333 Green Stre et McHenry, Illinois 60050 Phone: (815) 363-2200 Fax: (815) 363-2149 www.ci.mchenry.il.us CONSENT AGENDA SUPPLEMENT TO: Mayor and City Council FROM: John R. Birk, Chief of Police FOR: August 21, 2023, Regular City Council meeting RE: Authorization to Purchase Ballistic Helmets Attachment s: Helmet Quotes Agenda Item Summary: Staff is seeking Council’s authorization the purchase 57 new ballistic helmets in the amount of $28,414.50 to replace the existing expired helmets . Staff is present to answer any questions Co uncil may have. Background: Currently each sworn police offers is issued a ballistic helmet as part of the ir police equipm ent. These helmets are fitted to each individual officers. Helmets were last issued to our officers as a full donation at no cost to the city. Helmets, just like other ballistic equipment (vests and shields) typically have a 5 -year operational life before expiring. The current helmets we have in service are over 6 years old and have been expired for just over one year. Co uncil has already approved up to $40,000 in the FY23/24 Capital Investment Plan for the replacement of these helmets. Analysis: Staff has sought out acceptable replacements for these expired helmets. Minimum expectations of the replacement helmet are; high cut helmet, NIJ Level IIIA certified, minimum 5 year life before expiration, and adjustable tension and equipment rail system mounts. Due to the order quantity of only 57 units, competitive pricing based on quantity ordered was not an option with any of the vendors we contacted. Staff sought out three competitive written quotes from reputable manufacturers based on recommendations. Th e following three manufacturers provided written quotes. Vendor High Cut Helmet Level IIIA 5 Year Life Adjustable Tension Rail System Price @ 57 Unit s USIQ Inc. Yes Yes Yes Yes Yes $18,724.50 Midwest Armor Yes Yes Yes Yes Yes $27,225.00 Hard Head Veterans Yes Yes 10 Year Life Yes Yes $28,414.50 As we reviewed all three written quotes, Hard Head Veterans stands out becaus e they offer a 10-year ballistic warranty versus a five year warranty, doubling the service life of the equipment. If we amortize the annual cost of the helmets to the City we find: USIQ at $3,744.90 , Midwest Armor at $5 ,445.00 an d Hard Head Veterans at $2,841.45. With the option of a 10-year warranty Hard Head Veterans is the most competitive quote allowing the City to double the life span of our helmets. This pricing falls well below the budgeted $40,000 for this replacement project. 41 Recommendation: Staf f requests City Council authorization to waive competitive bidding in lieu of three written quotes and authorize staff to purchase fifty -seven ballistic helmets from Hard Head Veterans , in an amount not to exceed $28,414.50. 42 43 44 45 46 47 48 49 50 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 CONSENT AGENDA SUPPLEMENT DATE: August 21, 2023 TO: Mayor and City Council FROM: Bill Hobson, Director of Parks and Recreation RE: Marina Lease Renewal ATT: Proposed Lease for the South Harbor AGENDA ITEM SUMMARY: The lease with All Marine Services, Inc. for the use of the harbor slips, property and buildings expired on October 31, 2023. The following supplement and attached lease detail and extension through November 1, 2024. BACKGROUND: The City of McHenry entered into a partnership with All Marine Services, Inc. for the leasing rights to the South Harbor boat slips, property and buildings last year. The lease was established as a guaranteed amount lease at $40,000 for the year that was not dependent on the number of slips that were rented. Staff proposes continuing with this arrangement for an additional year as the city works through the potential development of the property. The current lease expires on October 31, 2023. ANALYSIS: The proposed lease continues the relationship with the existing tenant while also retaining rights to the property to further the ultimate goal of redevelopment of the one of the most desirable locations on the Fox River and a key site within the Tax Increment Financing Dist rict. RECOMMENDATION: Therefore, if Council concurs, it is recommended that a motion be considered to approve the mayor’s authorization of the attached lease for the South Harbor piers, property and buildings with All Marine Services Inc. through October 31, 2024. 51 City of McHenry Marina Lease and Guarantee Agreement This City of McHenry Marina Lease and Guarantee Agreement (“Agreement”) is made between the City of McHenry, 333 South Green Street, McHenry, Illinois, herein called Lessor, and All Marine Services, Inc., 126 Jandus Cut Off Road, Cary, Illinois, herein called Lessee. Lessee hereby offers to lease from Lessor certain real estate situated at 3302 W. Waukegan Road, McHenry, Illinois, together with all improvements thereon, (“Premises”) except as otherwise set forth in this Agreement, upon the following Terms and Conditions: 1. Term and Rent. A. Lessor hereby leases to Lessee, in an as is condition , the above real estate and improvements (collectively the “Premises”), commencing November 1, 2023 and terminating October 31, 2024. B. Lessee shall pay Lessor the sum of $40,000 as rent, in installments, as follows: $14,000 upon execution of this Agreement; $13,000 no later than April 1, 2024 and $13,000 no later than October 1, 2024. C. Lessee shall ensure that all boats are removed from the water , slips and Premises and otherwise vacate the Premises no later than October 15, 2024. D. Lessee’s obligation to pay rent shall be an independent obligation from the rest of this Agreement, and Lessee shall have no right to withhold the payment of any rent or to set off any rent for any reason. E. Lessor shall not be liable to Lessee for any interruption of Lessee’s business or inconvenience caused Lessees or licensees or customers on the Premises on account of Lessor’s performance of any work on the Premises, or any other work therein pursuant to Lessee’s right or obligations under this Agreement. F. Lessee understands that Lessor is in the process of marketing the Leased Premises and surrounding property for sale. To accommodate the needs of Lessor to market same, Lessee acknowledges its use of the Leased Premises is not exclusive and Lessor retains the right to enter upon the Leased Premises at any time and for any reason, with or without third parties to inspect, take samples of soil as needed, and generally evaluate the Leased Premises and surrounding Property for purchase/sale purposes during the term of this Agreement. 2. Use. Lessee shall use and occupy the Premises only for winter indoor and outdoor boat storage and as a summertime boat marina business including the leasing of boat storage slips. The Premises shall be used for no other purpose. Lessee shall not, in the use and occupancy of the Premises, use, treat, store, handle or dispose of, or permit any party claiming by, through or under Lessee to use, treat, store, handle or dispose of, any Hazardous Substances on the Premises. “Hazardous Substances” shall mean and include all hazardous and toxic substances, wastes, or materials, any pollutant or contaminant, including without limitation, petroleum 52 2 substances, PCB’s and raw materials that inc lude hazardous constituents or any other similar substances or materials that are included under or regulated by any Environmental Laws. The parties agree that currently there are fifty-seven (57) boat slips at the Premises (16 smaller slips and 41 larger slips) depicted as slips 1 through 41 and 50 through 65 on the attached Exhibit A. The parties agree that slip 42 through 49 as depicted on Exhibit A are not part of this Agreement or the Premises and are being retained by the Lessor. 3. Club House. A “Club House” is located upon the Premises. The Club House has two public restroom facilities and showers, which shall be open to patrons of All Marine Marina and have a separate entrance. Lessor shall maintain the “Club House.” Lessee shall be fully responsible for maintenance of the public restroom facilities and showers. 4. Quonset Hut. Lessor shall not interfere with Lessee’s use of all sections of the Quonset Hut. 5. Care and Maintenance of Premises. Lessee acknowledges that the Premises are in good order and repair, unless otherwise indicated herein. Lessee shall, at its own expense, and at all times, maintain the Premises in good and safe condition, and shall surrender the same, at termination hereof, in as good condition as received, normal wear and tear excepted. Lessee shall be responsible for any and all repairs and maintenance required on the Premises, and of any equipment on the Premises. 6. Alterations. Lessee shall not, without first obtaining the written consent of Lessor, make any alterations, additions, or improvements, in, to or about the Premises or any structure thereon. 7. Ordinances and Statutes. Lessee shall comply with all statutes, ordinances and requirements of all municipal (including but not limited to the City of McHenry), state and federal authorities now in force, or which may hereafter be in force, including, but not limited to any applicable environmental laws or regulations, pertaining to the Premises. 8. Assignment and Subletting. Lessee shall not assign this Agreement or sublet, demise or transfer any portion of the Premises without the prior written consent of Lessor. Any such conveyance conducted without Lessor’s written consent shall be null and void and without legal effect. This restriction shall not apply to the Lessee’s leasing of boat slips to its customers. 9. Utilities. All applications and connections for necessary utility services on the demised Premises shall be made in the name of Lessee only, and Lessee shall be solely liable for utility charges as they become due, including but not limited to those for sewer, water, gas, electricity and telephone services. 10. Entry and Inspection. Lessee shall permit Lessor or Lessor’s agents to enter upon the Premises at reasonable times, during normal hours of operation, except in emergency situations determined by Lessor, and upon reasonable notice, for the purpose of inspecting the same, and will permit Lessor at any time within sixty (60) days prior to the expiration of this Agreement, to place upon the Premises any usual “To Let” or “For Lease” signs, and permit persons desiring to lease the same to inspect the Premises thereafter. 53 3 11. Possession. If Lessor is unable to deliver possession of the Premises at the commencement of this Agreement, Lessor shall not be liable for any damage caused thereby, nor shall this Agreement be void or voidable but Lessee shall not be liable for any rent until possession is delivered. 12. Liability, Indemnification and Waiver. A. Assumption of Liability. Lessee assumes liability for all injury to or death of any person or persons including employees, customers, sub-licensees, any supplier or any other person on the Premises and assumes liability for all damage to property sustained by any such person. B. Indemnification. To the fullest extent permitted by law, Lessee will defend, indemnify and hold the Lessor harmless from all claims arising from or in connection with (i) any and all operations of Lessee in connection with the operation, repair or maintenance of the Premises, including but not limited to the operation of a marina, or any other business on the Premises, or any work or thing whatsoever done, or any cond ition created on or about the Premises; (ii) any act, omission or negligence of Lessee or any of Lessor’s assignees, agents, licensees or the partners, directors, officers, agents, employees, invitees or contractors of Lessee or of Lessee’s assignees, tena nts or Lessee; (iii) any accident, injury or damage whatsoever occurring on or at the Premises; and (iv) any act or omission of Lessor, its agents, servants and employees, pursuant to this Agreement, unless such act or omission is judicially determined to constitute intentional misconduct. C. Defense of Lessor. In the event any claims shall arise, the Lessor shall tender the defense thereof to Lessee. Provided, however, the Lessor, in its sole discretion, may participate in the defense of such claims at Lessee ’s sole expense; such participation shall not relieve Lessee from its duty to defend and to pay any judgment or settlement against the Lessor in such claims. D. Waiver of Defenses. In any and all claims against the Lessor or any of its agents or employees, by any employee of Lessee, the indemnification obligation under this paragraph shall not be limited by any limitation on the amount or type of damages, compensation or benefits payable by or for Lessee under workers compensation acts, disability benefits acts or employee benefit acts, or other applicable law. Lessee waives all defenses available to Lessee as an employer, which limit the amount of Lessee’s liability to the Lessor to the amount of Lessee’s liability under any workers compensation, disability benefits or employee benefit acts. E. Indemnification of Lessee. Lessor shall indemnify and defend, to the fullest extent permitted by law, and hold Lessee harmless from all claims arising from or in connection with any leaking or leaching of a certain underground storage tank removed by Lessor from the Premises , and Lessor’s use of the slips nos. 42 through 49 by invitees of Lessor or its grantees or assigns 54 4 utilizing the Premises to access the said slips. In the event any such claim arises, Lessee shall tender the defense thereof to Lessor within fourteen (14) days. In the event any claims shall arise, the Lessee shall tender the defense thereof to Lessor. Provided, however, the Lessee, in its sole discretion, may participate in the defense of such claims at Lessor’s sole expense; such participation shall not relieve Lessor from its duty to defend and to pay any judgment or settlement against the Lessee in such claims. 13. Liability Insurance Requirements. Lessee shall during the term of this Agreement, maintain in full force and effect, at its own cost and expense, insurance of the types and in the amounts described below. A. Workers Compensation Insurance. Lessee shall maintain workers compensation and employers liability insurance, with Coverage A at statutory limits and Coverage B (commercial umbrella and/or employers liability) limits not less than $1,000,000 each accident for bodily injury by accident and $1,000,000 each employee for bodily injury by disease. This insurance shall cover Lessee’s employees in compliance with the State of Illinois and all other states having jurisdiction over each employee. B. Commercial General and Umbrella Liability Insurance. Lessee shall maintain commercial general liability (“CGL”) and, if necessary, commercial umbrella liability insurance with a limit of not less than $1,000,000 each occurrence. i. This CGL and umbrella (if any) insurance shall be written on an occurrence basis and shall cover liability arising from premises, operations, independent contractors, products-completed operations, bodily and personal injury, property damage, advertising injury, liability assumed by Lessee under this Agreement (including the tort liability of another assumed in a business contract). ii. Additional Insured. The Lessor shall be named as an insured under this CGL and umbrella (if any) insurance using an additional insured endorsement acceptable to the Lessor. This insurance shall apply as primary insurance with respect to any other insurance or self-insurance programs afforded to the Lessor. There shall be no endorsement or modification of this insurance to make it excess over other available insurance; alternatively, if the CGL and umbrella (if any) insurance states that it is excess or pro rata, it shall be endorsed to be primary with respect to the Lessor. C. Proof of Insurance. Prior to the effective date of this Agreement, Lessee shall furnish the Lessor with copies of its current certificates of insurance documenting each such policy, along with the additional insured endorsements required in this section. 55 5 D. Cancellation. All such insurance provided for herein shall be non-cancelable, except upon 30 days prior notice to the Lessor, and shall contain the following endorsement (or its equivalent): “It is hereby understood and agreed that this insurance policy may not be canceled by the surety or the intention not to renew be signed by the surety until 30 days after receipt by the Lessor by registered mail of written notice of such intention to cancel or not to renew.” This language, or its equivalent, shall appear on the policies’ respective insurance certificates. E. No Limitation on Liability. The minimum amounts set forth in this Agreement for such insurance shall not be construed as a limitation or satisfaction of Lessee’s liability, including indemnification, to the Lessor under this Agreement to the amount of such insurance. F. No Waiver. The failure or delay of the Lessor at any time to require performance by another party of any provision of this Section, even if known, shall not affect the right of such party to require performance of that provision or to exercise any right, power or remedy under this Agreement , and any waiver by any party of any breach of any provision in this Section shall not be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the provision itself, or a waiver of any right, power or remedy under this Agreement. No notice to or demand on any party in any case shall, of itself, entitle such party to any other or further notice of demand in similar or other circumstances, except as otherwise provided herein 14. Destruction of Premises. In the event of a partial or total destruction of the Premises, during the term hereof, from any cause, either party may elect to terminate this Agreement and all rent shall immediately abate until the Premises are restored. Notwithstanding any other provision of this Agreement, Lessor shall not be required to take any action or repair unless such action or repair following such destruction. 15. Attorney’s Fees. In the event Lessor files a lawsuit against Lessee or the Guarantors referenced below, for any breach of this Agreement including Forcible Entry and Detainer , or other lawsuit to enforce any provision of this Agreement, the prevailing party shall be entitled to recover from the non-prevailing parties all costs incurred in connection with such action, including its reasonable attorney’s fees incurred. 16. Heirs, Assigns, Successors. This Agreement is binding upon and inures to the benefit of the heirs, assigns and successors in interest to the parties. 17. Subordination. This Agreement is and shall be subordinated to all existing and future liens and encumbrances against the Premises. 18. Entire Agreement. The foregoing constitutes the entire agreement between the 56 6 parties and may be modified only by a writing signed by both parties. Signed this day of , 2023 Lessor: Lessee: City of McHenry By: By: Wayne Jett, Mayor Date Its: Date Guarantee of Obligations The undersigned individuals, being shareholders of the above referenced Lessee, hereby agree to jointly and severally be bound by and guarantee compliance by Lessee of each and every obligation of Lessee referenced in this Agreement. Dillon Streit Date 23212 N. Kelsey Ave Barrington Ill. 60010 Michaelle Streit Date 23212 N. Kelsey Ave Barrington Ill. 60010 Z:\M\McHenryCityof\LeaseMarina All MarineRedlined.docx 57 7 9 12 13 11 14 15 16 17 18 19 20 21 22 23 24 26 25 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 10 5 6 8 4 3 2 1 RIVER PLACE PIERS 42‐49 58 Depa rtment of Economic Development Douglas Ma rtin, Director of Economic Developme nt McHenry M u nicipal Center 333 Green Street McHenry , Illinois 60050 Phone: (815) 363 -2110 Fax: (81 5) 363-2173 dmart in@cityofmchenry.org www.cityofmch enry.org CONSENT AGENDA SUPPLEMENT TO: Mayor and City Council FROM: Douglas Martin, Director of Economic Development FOR: August 21, 2023, Regular City Council Meeting RE: Consideration of a First Amendment to the Amended Economic Incentive Agreement Between the City of McHenry and 1325 Riverside Inc. d/b/a Whiskey Diab lo ATT: 1. November 7, 2022, City Council Meeting Minutes 2. January 16, 2023, City Council Meeting Minutes 3. Amended Economic Incentive Ag reement Between the City of McHenry and 1325 Riverside Inc. d/b/a Whiskey Diablo 4. First Amendment to the Amended Economic Incentive Agreement Between the City of McHenry and 1325 Riverside Inc. d/b/a Whiskey Diablo AGENDA ITEM SUMMARY: An Amended Economic Incentive Agreement between the City of McHenry and 1325 Riverside Inc. d/b/a Whiskey Diabl o (agreement attached) required the developer of the site to obtain an occupancy permit for the subject property no late r than August 31, 2023, or the agreement would be null and void. The developer , due to the reasons specified below will not be able to obtain a certificate of occupancy by August 31, 2023, and is requesting an extension to Februa ry 28, 2024. BACKGROUND: Dan Hart, developer of Whiskey Diablo received approval of an economic incentive agreement to allow for sales tax sharing in an amount not-to-exceed $45,000 on November 7, 2022 (minutes attached), to assist in defraying the costs of r etrofitting a sprinkler system for a restaurant at 1325 N Riverside Drive. On Januar y 16, 2023 (minutes attached), the agreement was amended to reduce the capital development fees for the project. 59 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org Mr. Hart, through e-mail correspondence, has indicated that he has faced major supply chain issues, primarily with the windows that are being completed this week. In addition, he stated the masonry work was put off as the hired contractor had significant delays on other jobs that in turn pushed his job off six additional weeks. While waiting for the windows and masonr y they have completed fra ming, and most of the rough electrical and plumbing. Additionally, they have taken delivery of the hood, which was also delayed, and are in the process of installing the hood. While prepping for install ing the hood, they realized the roof wa s severely compromised and in need of replacement and the architect had incorrect dimensions and, due to this, the entire kitchen layout had to be modified. New drawings then had to be submitted to the City for review and approval. Mr. Hart is requesting the date to obtain a certificate of occ upancy be deferred to February 28, 2024, which does have some additional time built in should he require it. Staff believes this is a reasonable request given all the delays and obstac les he has had to overcome and due to the fact that work is actually being completed at the site, and would recom mend the agreement be modified to accommodate the February 28, 2024 date. Of note, Mr. Hart is currently paying monthly rent for the building and, since it is not open, no revenues are currently being generated. If the City Council concurs with staff, it is recommended that the attached First Amendment to the Amend ed Economic Incentive Agreement Between the City of McHenry and 1325 Riverside Inc. d/b/a Whiskey Diablo be approved. 60 City of McHenry Council Meeting Minutes v"v 11.07. 22 McHenr AGENDA REGULAR CITY COUNCIL MEETING Monday, November 7, 2022, 7:00 p.m. City Council Chambers, 333 S Green St, McHenry, IL 60050 Roll Call: Mayor Jett called the roll call. Members presentAlderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller, and Mayor Jett. Others present Attorney McArdle, Administrator Morefield, Director of Public Works Strange, Director of Community Development Polerecky, Finance Director Lynch, Director of Parks and Recreation Hobson, Director of Economic Development Martin, Chief of Police Birk-absent, City Planner Sheriff-absent, Deputy Clerk Johnson, and City Clerk Ramel. Pledge of Allegiance: Mayor Jett led the pledge. Public Comments: Carl and Kim Eckel — Residents having issues with parking with their business. They share around 5 parking spots for both businesses and want people to be able to shop at their stores if there is not enough parking for them, would like to implement/have enforcement to park on the streets, and came to the council for some help. Mayor Jett stated that he will be in touch with them, and asked for them to leave their number with Deputy Chief Johnson. Consent Agenda: Motion to Approve the following Consent Agenda Items as presented: A. Resolution adopting the schedule of City Council Meetings forthe period January 1, 2023, to December 31, 2023. C. Ordinance amending the FY22/23 Budget in the amount of $364,000.00; and, Ordinance authorizing the purchase, acceptance, and execution of a real estate contract for 3519 Elm Street, McHenry, Illinois. E. Ordinance amending Title 8, Chapter 8, Curbside Mailboxes, Section 6, Damaged Mailboxes, of the McHenry City Code, which will adjust the reimbursement value for damaged mailboxes from $50. 00 to $250.00. F. Parks & Recreation Facilities & Special Use Permit Requests; G. October 17, 2022, City Council Meeting Minutes; H. Issuance of Checks in the amount of$803,891.57. 1 61 City of McHenry Council Meeting Minutes 11.07.22 A motion was made by Alderman McClatchey and seconded by Alderman Santi to approve Consent Agenda Items as presented: Roll Call: Vote:7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-nays-, 0-abstained. Motion carried. Clerks note: This item was pulled for separate consideration by Alderman Glab. B.Ordinance authorizing the Mayor's execution of a Revocable License and Management Agreement between the City of McHenry and McHenry Area Chamber of Commerce for the Riverwalk Shoppes. Alderman Glab wanted to know where this whole project is going with the city his biggest concern is how much property tax will be paid on this. Per Director Hobson, they are currently looking into this at this time. Attorney McArdle did talk with the council regarding this and talked about addressing it as well. A Motion to authorize Mayor Jett to sign if there is no cost/risk to The City of McHenry if there is a potential for risk/cost to bring this back this item back. A motion was made by Alderman Strach and seconded by Alderman Glab to authorize the Mayor's execution of a Revocable License and Management Agreement between the City of McHenry and the McHenry Area Chamber of Commerce for the Riverwalk Shoppes, with the understanding that the City of McHenry should not bear the cost or liability should property taxes be assessed due to the project. Roll Call: Vote:7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. Clerks note: This item was pulled for separate consideration by Alderman Glab D. Ordinance amending the FY22/23 Budget in the amount of $85,000 for the Advance Real Estate Management, LLC Sales Tax Incentive Agreement A motion was made by Alderman Strach and seconded by Alderwoman Miller to approve Consent Agenda Items as presented: Roll Call: Vote: 6-ayes: Alderman Santi, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 1- nays- Alderman Glab, 0-abstained. Motion carried. 1 2 62 City of McHenry Council Meeting Minutes 11.07.22 Individual Action Item Agenda: A. Economic Incentive Agreement for 1325 Riverside Drive Inc, dba Whiskey Diablo. Staf Motion to approve an Economic Incentive Agreement between the City of McHenry and 1325 Riverside Drive dba Whiskey Diablo, located at 1325 Riverside Drive, in an amount not to exceed $45,000. Alderman Santi notices the address is within the TIFF district and wanted to know how much time is left in 2025, discussions have been started with Senator Wilcox per Director Hobson, doing what they can to get it extended. Alderman McClatchy asked how long the extension would be, it was confirmed as 12 years and it can only be requested for a one-time 12-year extension per Administrator Morefield. Alderman Glab likes seeing progress however would like to see more selection as to what businesses are being brought in the future. No public comment. A motion was made by Alderwoman Miller and seconded by Alderman McClatchey to approve Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. B. Video Gaming License for 1401 Riverside Drive. (Staft) Motion to grant a Video Gaming License to The Courthouse, located at 1401 Riverside Drive. A motion was made by Alderman Harding and seconded by Alderman Glab to approve Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. C. Sign Variance for 3622 Elm Street. (Polerecky) Motion to approve an Ordinance granting a Sign Variance to allow a changing electronic display and message board as a wall sign to McHenry Power Equipment, located at 3622 Elm Street. Alderman Glab would not like there to be too many electronic boards, he is against it but understands the situation here. Alderwoman Miller stated there really is no space and unfortunately, there are not any other options for them. Alderman Santi stated that things are looking nice at that facility and hopes he develops even more business. 3 63 City of McHenry Council Meeting Minutes 11.07.22 A motion was made by Alderman Strach and seconded by Alderman Santi to approve Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. D. Zoning Variance and Use Variation for 2902 W. Elm Street. (Polerecky) Motion to approve an Ordinance granting a Zoning Variance and Use Variation for Light Furniture Manufacturing with Outdoor Rental Storage for the property located at 2902 W. Elm Street. Alderman Santi stated from conversations with Director Polerecky it looks like it's a smaller area because of the restrictions it will cover up what is being stored, up against the parking lot, there is not a visual facing 120. A motion was made by Alderman Santi and seconded by Alderman McClatchey to approve Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, "" Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. E. Text Amendments regarding Adult-Use Cannabis Business District Regulations of the City of McHenry. (Polerecky) Motion to approve an Ordinance granting a Text Amendment to 11-6-18 — Adult-Use Cannabis Business District Regulations - of the City of McHenry Zoning Ordinance. Alderman McClatchey asked if there is interest there is at this time per Directory Polerecky. Alderman Santi asked if there is more than one out here besides the city, two in Crystal Lake that is all around here. A motion was made by Alderman Strach and seconded by Alderwoman Miller to approve Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. 1 4 64 City of McHenry Council Meeting Minutes 11.07.22 Discussion Items: A. Class H Liquor License for Justen Funeral Home. (Staf Mayor Jett asked if there were any questions from The Council regarding this. Erick Cook was in attendance for Mr. Justen who was not able to be here at the meeting. Would like to have options as a business to help offer other options to families. Alderwoman Miller asked if this would expand the business as of right now Mr. Cook was not able to give a certain answer regarding this. Would like to grow and expand his business to help maybe support the celebration of life process. Alderman Santi wanted to know if any families have ever catered for food/beverages in the room, but Mr. Cook was not able to answer that. Alderman Santi has some concerns. Alderman Glab thinks it is an interesting avenue and is open to hearing where this could go. Alderman McClatchey stated that he has no problem with this it is a good avenue. Alderman Harding stated that he has no problem with it, licenses were designed to help. Alderman Devine stated that people are there for grieving we have turned down hair salons, and barber shops and he is not comfortable with it. Alderman Strach is not comfortable with the license choice, open to a different style or class of license. The discussion of hours was brought up and the regulation as well. B. 2023 Road ResurFacing Program Update (Strange) Director Strange explained the supplement that was broken up into 3 sections. There was some discussion regarding projects and updates to those. This discussion went on for some time many were concerned about streets in the areas that are in dire need of repair etc. Staff Reports: Staff reports are provided at the first meeting of each month. Mayor's Report: None City Council Comments: Alderwoman Miller talked about the conference that she attended and thanked those involved. Alderman Glab wanted to talk about the leaf pick-up and stated this is a severe problem with the delays, however, wanted to know where they are at, etc. He also knows that Director Strange has been working on it. Wanted a report to give to residents etc. Per Mayor, Jett will be meeting with Director Strange to get answers for residents. Alderman Strach thanked Director Strange for all the work he is doing to help with the questions regarding this. Alderman McClatchey said the holiday lights look great in the park. s 65 City of McHenry Council Meeting Minutes 11.07.22 Executive Session for the setting of a price for the sale or lease of property owned by the public body (5 ILCS 120/2(c)(6).) A motion was made by Alderman Strach and seconded by Alderman Santi to adjourn to Executive Session at 8:30 p.m. to discuss pending litigation on the purchase or lease of real estate property for the use of the public body Mayor Jett reconvened the meeting from Executive Session at 8:48 p.m. A motion was made by Alderman Santi and seconded by Alderwoman Miller to return to the open session. Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine, Alderwoman Miller. 0-nays, 0- abstained. Motion carried. Adjourn: A motion was made by Alderman Strach and seconded by Alderman Santi to adjourn the meeting at 8:50 PM. Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-nay-, 0-abstained. Motion carried. rrX X 1 Mavor Wayne Jett Citv Clerk Trisha Ramel 1 6 66 67 68 69 70 71 Amended Economic Incentive Agreement Between the City of McHenry and 1325 Riverside Inc. d/b/a Whiskey Diab lo 16 This Amended to Economic Incentive Agreement {"Agreement") is made and entered into this day of January 2023 {''Effective Date"), by and between the City of McHenry, 333 S. Green Street, McHenry County, Illinois, an Illinois home rule municipillity ("City") and 1325 Riverside Inc. d/b/a Whiskey Diablo ("Developer"}. !Recitals A. The property which is the subject of this Agreement is commonly known as 1325 Riverside Drive, McHenry, I IHnois ("Subject Property"). B. The City is a borne rule municipality and as such has the authority, pursuant to Article VII, Section 6(a) of the Constitution of the State of Illinois of 1970, to adopt ordinances and to promulgate rules and regulations that pertain to its government and affairs. C. The parties entered into an Economic Incentive Agreement on November 7, 2022 and wish to amend the Agreement to increase the Maximum City Payment Obligation from $45,000 to $62, 149. D. In recognition of the importance to sustaining a high quality of life for businesses and residents it is the City's desin! to facilitate a successful business environment and assist in enhancing the long~term viability of existing and proposed businesses. E. The Developer desires to lease and build out the Subject Property for use as a restaurant and bar. Developer has been advised that the applicable fire code for such uses requires the Subject Property to provide fire sprinklers for life/safety purpose at a cost of $45,000 and, further, that Capital Development Fees are required due to the need for an increased domestic wc1ter service at a cost of $17,149, for a total cost of $62,149. The Developer represented to the City that, but for the commitment and agreement of the City being made herein, he is not willing to pay for the sprinkler improvements necessary to occupy the Subject Property as a restaurant and bar and that the requi.red Capital Development Fees create additional costs that were not anticipated in the project costs. F. It is essential to the ,economic and social welfare. of the City that it promote the economic vitality of the community by assuring opportunities for development and redevelopment and sound and stable commercial growth within the corporate limits of the City., G. In order to make it economlcally feasible for the Developer to move forward with the proposed buildout of the Subject Property as a restaurant and bar.1 tile City desiires to share with the Developer a portion of tile Base Sales Tax ge.nerated at the Subject Property in an amount not to exceed a total of $62,149. 72 H, Definitions. The following definitions shall apply to terms used in this Agreement: 11 Base Sales Taxes 11 means the retailers occupation taxes and service occupation taxes received by the City, generated solely at the Subject Property and by the Developer from the State of Illinois pursuant to the Service Tax Act (35 ILCS 115/1 et seq.}, the ~etailers Occupation Tax Act (35 IL.CS 120/l et seq.), and the State Finance Act (30 ILCS 105/6z--l8) (as amended), and any taxes that are enncted and imposed as replacements thereto. "Maximum City Paym,ent Obligation" means $62,149 .. "Site Improvements" means those sprinkler improvements installed within the Subject Prnperty to service the proposed tenant's restaurant and bar detailed on the proposal of Foundation Fire Protection Inc., dated October 21, 2022. 11 Event of Default.11 means a default u11der this Agreement which remains uncured. "Gross Receipts" means as defined in the Retailer's Occupc1tion Tux .Act (35 ILCS 120/1 et seq.). "IDOW' means the Illinois Department of Revenue. "Permanent Closure" shat! mean the Subject Property remains vacant or less than 100% occupied for a period of three (3) or mare consecutive months after 12/31/22 ("Permanent Closure",. "Sale.s Tax Incentive" means the payment by the City set forth in this Agreement I. The parties agree that the Base Sales Tax being shared hereunder shall only be that Base Sales Tax generated in the future by the Developer, at the Subject Property, not-to- exceed the Maximum Total Payment Obligation. Now therefore, in consideration of the promises and agreements made herein, the adequacy and sufficiency of which is acknowledged by the parties hereto, it is agreed as follows: 1.. Evidence of Equipment, Material Cost and/or Labor Expenditure. The Developer shall proviide tile City with sufficient evidence of hi,s expenditures to pay for the sprinkler Site Improvements including the following informati.on: Paid invoi.cejs), which includes an itemization of each equipment, material and/or labor e.xpenditure; company from which labor; equipment and/or mate,~ial. purchase was completed and/or purchased including name1 a.nd address a reference on the paid invoice(s) indicating the location of the Subject Property and a sworn affidavit from Developer detailing the equipment, material and/or labor costs incurred. 2. Limitation of City Responsibilities. Other than the Sales Tax Incentive agr,eed to be made pursuant to this Agreement, of which the Maximum City Payment Obligation is $62.i149, 73 the City shall have no obligation to incur any expenses or share any revenue associated with the Developer. 3. Sales Tax Incentive Payment. After the Developer receives an occupancy permit for his proposed restaurant and bar on the Subject Property, the City shall pay to the Developer 100% of the Base Sales Tax Generated. Payment shall be made on or about April 1 of euch year during the Term, not exceedi11g the Maximum City Payment Obllgation. No payment obligation shall commence until such time the Developer receives an occupancy pennit from the City for his proposed bar and restaurant facilities on the Subject Property. 4. Provisions Concerning limitation on Debt. The receipt, or anticipated receipt, of Sales Tax Revenue, either directly or indirectly, from the Drc?veloper's proposed restaurant and bar improvements on the Subject Property, shall be a condition precedent to any obligation of the City to rebate money to the Developer.. " 5. No Interest; limited Obligations. No lnterest shall be due on the obligations set forth in this Agreement. The Developer acknowledges that: (a) the City1s Payment Obligation is a limited obligation of the City payable solely out of the Base Sales Tax the City receives from the IDOR which are attributable to the gross sales generated at the Subject Property after the completion of the proposed restaurant. and bar improvements by the Developer; (c) tl1e sole source of the Developer's entitlement to any payment hereunder, shall be the aforesaid Base Sales Tax; (d) the City's Payment Obligation shall not be construed as general obligation of the City; and (e) the Developer bears all risk of non-payment resulting from the permanent closure of the Developer's business operation at the Subject Property, 6. Term. This Agreement shall be in full force and effect for a Term cornmencing after Developer receives un occupancy permit from the City for his proposed restaurant and bar on the Subject Property and ending on the earlier to occur of: (a) the City's payment to the Developer of the Maximum City's Payment Obligation; (b) the Permanent. Closure of the proposed restaurant and bar on the Subject Property prior to the City's payment to Developer of the City's Maximum Payment Obl.lgation of the City; or (c) August 31, 2023, if the City bas not issued an occupancy permit for the proposed restaurant and bar by that time. This Agreement shall remain in effect for enforcement and accounting purposes fol.lowing the expiration of the Term. 7. Mi!scellaneous. This Agreement shall be binding upon and inure to the benefit of the Parties .. Any notices required or contemplated by this Agreement shall. be. sent by certified mai.l or via a natio111ally recognized private carrier (such as Fed Ex or UPS),. as fol.lows:. If to Developer: Daniel Hart Hart Alliance 222 Main Street Woodstock, Illinois 60098 74 If to the City: City of McHenry 333 S. Green Street McHenry, IL 60050 Attention: City Administrator 8. Default. In the event of a claimed default under ·this Agreement, the 11011- defaulting party shall provide notice of default to the defaulting party. No legal action may be commenced with respect to a claimed default until thirty (30) days after said notice has passed, during which time the claimed defaulting party may cure the claimed default. This Agreement shall be governed by Illinois law without regard to its rules regarding conflicts of law. 9, Enforcement. Any action to enforce this Agreement shall only be. filed in the Twenty-Second Judicial Circuit, McHenry County, Illinois. The party who prevails in any such action shall be entitled to recover Its reasonable attorney's fees from the other party. 10. Only Agreement. This Agreement sets forth all the promises, inducements, agreements, conditions and understandings between the Developer and the City relative to the Sales Tax l.ncentive and there are no other promises, agreements, conditions or tmderstandings, oral or written, express or implied, between them relative thereto. This Agreement may only be amended by way of a written instrument that is signed by both Parties. City of McHenry 1325 Riverside Inc. d/b/a Whiskey Diablo 1116/23 By: ______________ _ Wayne S. Jett, Mayor Date Date Z·.\M\McHen ryCilyof\B ykowski, Ro n\Eco n omicl ncentiveAgrntA mended .d o~x 75 Amendment to Economic Incentive Agreement Between the City of McHenry and 1325 Riverside Inc. d/b/a Whiskey Diablo This Amendment to that certain Amended Economic Incentive Agreement dated January 16, 2023 (“Original Agreement ”) is made and entered into this day of , 2023, by and between the City of McHenry, 333 S. Green Street, McHenry County, Illinois, an Illinois home rule municipality (“City”) and 1325 Riverside Inc. d/b/a Whiskey Diablo (“Developer”). Recitals A. On or about January 16, 2023, the City and Developer signed the Original Agreement regarding redevelopment of the building at 1325 Riverside Drive, McHenry, Illinois (“Subject Property”). B. The City is a home rule municipality and as such has the authority, pursuant to Article VII, Section 6(a) of the Constitution of the State of Illinois of 1970, to adopt ordinances and to promulgate rules and regulations that pertain to its government and affairs. C. The parties desire to make one amendment to the “Term” of the Original Agreement, leaving in full force the balance of the Original Agreement. Now, therefore, in consideration of the promises and agreements made herein, the adequacy and sufficiency of which is acknowledged as received by each party hereto, it is agreed that paragraph 6, Term, of the Original Agreement shall be amended to read as follows and the remaining terms of the Original Agreement shall remain in full force: 6. Term. So long as the City issues an occupancy permit for the proposed restaurant and bar by February 28, 2024, this Agreement shall be in full force and effect for a Term commencing upon issuance of said occupancy permit and ending on the earlier to occur of: (a) the City’s payment to the Developer of the Maximum City’s Payment Obligation; or (b) the Permanent Closure of the proposed restaurant and bar on the Subject Property prior to the City’s payment to Developer of the City’s Maximum Payment Obligation. If the City has not issued said occupancy permit by February 28, 2024, this Agreement shall be deemed void. After commencement of the Term, this Agreement shall remain in effect for enforcement and accounting purposes after the expiration of the Term. City of McHenry 1325 Riverside Inc. d/b/a Whiskey Diablo By: Wayne S. Jett, Mayor Date Dan Hart, President Date 76 Office of the Chief of Police  John R. Birk  McHenry Municipal Center  333 Green Street  McHenry, Illinois 60050  Phone: (815) 363‐2200  Fax: (815) 363‐2149  www.ci.mchenry.il.us      CONSENT SUPPLEMENT    TO: Mayor and City Council FROM: John R. Birk, Chief of Police FOR: August 16, 2023 Regular City Council Meeting RE: Revision to Title 7, Chapter 8, Sections 7-8-1, 7-8-2 and 7-8-3 and Title 15: Fines, Fees and Penalties Chart ATT: Proposed Ordinance Agenda Item Summary: Staff is seeking City Council’s support to amend “Section 7-8-1 Vehicle Traffic Restricted, 7-8-2 Class 2 Truck Route Exceptions and 7-8-3 Penalty” of the Municipal Code by adding three streets to the existing list of restricted street and authorizing the Chief of Police (or designee) to institute legal proceedings in the circuit court in the name of the City against any individual, corporation, business, or entity to enjoin the violation of any provision of this Chapter. Staff will be present to answer any questions Council may have at the meeting. Background: Currently the City of McHenry restricts vehicle traffic with a single or combination registered weight of twenty-six thousand (26,000) pounds or more on specifically listed roads found within residential areas. This restriction is in place to prevent excessive wear and damage to City owned roads by commercial vehicles and to ensure roadway safety in residential areas. Over the past 24 months the City has received numerous complaints and observed increased commercial vehicle traffic traveling on Biscayne Boulevard, and Hilltop Boulevard. This increase commercial traffic is not delivering product to any residence in the area nor are the exempt vehicles as identified in Title 7, Chapter 8 of the City ordinance. Analysis: In order to; (1) ensure that the usable lifespan of our roadways (before repair is needed) are not effected by excessive commercial traffic any further and (2) ensure the safety of our residential roadways and pedestrian traffic in a residential subdivision that has no sidewalks, staff is recommended that restrictions be placed on the following roadways: 1. Biscayne Avenue from Green Street to Hilltop Boulevard 2. Hilltop Boulevard from Biscayne Avenue to Bull Valley Road 3. Bull Valley Road from Hilltop Boulevard to McHenry Avenue 77 In addition staff is recommending that under the penalty section of the existing ordinance (Tittle 15: Chapter 1) the fine amount be amended to $750 per offense and the penalty language be amended to read: Any person, corporation, or other legal entity found guilty of violating any provision of this chapter shall be subject to injunctive relief requested by the City and fined according to the Fines and Penalties found in Title 15, Chapter 1: Fines and Penalties, and be responsible to reimburse the City for all costs of prosecution, including reasonable attorney fees. Recommendation: If Council concurs, then it is recommended a motion be considered to approve the attached ordinance (1) adding three new restricted roads to Title 7, Chapter 8, (2) approving new language under Title 7, Chapter 8, Section 3: Penalty and (3) under Tittle 15, Chapter 1, setting the fine at $750.00.   78 ORDINANCE NO. 23-_____ Amending Title 7: Motor Vehicles and Traffic; Chapter 8: Restricted Road Traffic, Section 7-8-1 Vehicle Traffic Restricted, 7-8-2 Class 2 Truck Route Exceptions and 7-8-3 Penalty and Title 15: Fines, Penalties and Fees, Chapter 1: Fines and Penalties, Section 1: Fines and Penalties Table, Sub-section 7-8-1 Vehicle Traffic Restricted and Sub-section 7-8-3 General Fine for Violating Title 7, Chapter 8 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. NOW, THEREFORE BE IT ORDAINED by the City Council of the City of McHenry, McHenry County, Illinois, as follows: SECTION 1: Sections 7-8-1 Vehicle Traffic Restricted, 7-8-2 Class 2 Truck Route Exceptions and 7-8-3 Penalty, of the Municipal Code relating to Restricted Road Traffic shall be amended in their entirety as follows: 7-8-1: VEHICLE TRAFFIC RESTRICTED: Except as provided otherwise herein, the following roadways are hereby restricted to vehicle traffic with a single or combination registered weight of twenty-six thousand (26,000) pounds or more: Dartmoor Drive from Crystal Lake Road to Curran Road. Lillian Street from Front Street to Crystal Lake Road. Maple Avenue from Richmond Road to Millstream Drive. Martin Road from Illinois Route 120 to Ringwood Road. Orleans Street from McCullom Lake Road to Oak Drive. Riverside Drive from McCullom Lake Road to Washington Street. Veterans Parkway from Illinois Route 31 to Green Street. Biscayne Avenue from Green Street to Hilltop Boulevard Hilltop Boulevard from Biscayne Avenue to Bull Valley Road Bull Valley Road from Hilltop Boulevard to McHenry Avenue Exceptions: The following below exceptions are permitted on the above restricted roads in reference to vehicles with a combined registered weight of twenty-six thousand (26,000) pounds or more. 1. Vehicles of legal size and weight making deliveries on the restricted route. 2. Emergency vehicles. 3. Government owned vehicles. 4. Utility companies while conducting maintenance or repairs on or adjacent to the restricted roadway. 5. School buses. 6. City permitted garbage trucks. 7. Personal vehicles when the resident of a restricted road, or connecting road is going to or from their residence. 8. (Martin Road Only) restricted implements of husbandry shall be exempt as well as 79 farm vehicles in the course of farming land that adjoins Martin Road. 7-8-2: CLASS 2 TRUCK ROUTES; EXCEPTIONS: Specified: The following roads are classified as Class 2 truck routes pursuant to 625 Illinois Compiled Statutes 5/15-107: Adams Drive Albany Street Barney Court Belden Street Blake Boulevard Bolger Court Borden Street Bull Valley Road from Curran Road to Crystal Lake Road Century Court Commercial Drive Corporate Parkway Curran Road from Illinois Route 120 to Bull Valley Road Dayton Street Dot Street Hi Point Road Hill Street Industrial Drive Medical Center Drive Metalmaster Way Miller Parkway Oak Drive from Elm Street to Orleans Street Prime Parkway Ridgeview Drive Ringwood Road, which is under City jurisdiction from Illinois Route 120 to the northern most City limits 7-8-3: PENALTY: Any person, corporation, or other legal entity found guilty of violating any provision of this chapter shall be subject to injunctive relief requested by the City and fined according to the Fines and Penalties found in Title 15, Chapter 1: Fines and Penalties, and be responsible to reimburse the City for all costs of prosecution, including reasonable attorney fees. SECTION 2: Title 15: Fines, Penalties and Fees, Chapter 1: Fines and Penalties, Section 1: Fines and Penalties Table, Sub-section 7-8-1 Vehicle Traffic Restricted and Sub-section 7-8-3 General Fine for Violating Title 7, Chapter 8, shall be amended as follows: 7-8-1 Vehicle Traffic Restricted $750.00 $725.00 7-8-3 General Fine for Violating Title 7, Chapter 8 $750.00 $725.00 80 SECTION 3: If any section, paragraph, subdivision, clause, sentence or provision of this Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not effect, impair, invalidate or nullify the remainder thereof, which remainder shall remain and continue in full force and effect. SECTION 4: All ordinances, or parts thereof, in conflict herewith are hereby repealed to the extent of such conflict. SECTION 5: This ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, Illinois. SECTION 6: This ordinance shall be in full force and effect from and after its passage, approval and publication, as provided by law. Passed this 21st day of August, 2023. Ayes Nays Absent Abstain Alderman Koch _____ _____ _____ _____ Alderman Glab _____ _____ _____ _____ Alderman Bassi _____ _____ _____ _____ Alderman McClatchey _____ _____ _____ _____ Alderwoman Miller _____ _____ _____ _____ Alderman Santi _____ _____ _____ _____ Alderman Strach _____ _____ _____ _____ ______________________ ________________________ Wayne Jett, Mayor Monte Johnson, Deputy City Clerk 81 Monte Johnson Deputy City Clerk 333 S Gre en Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 mjohnson@cityofmchenry.org 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 res ponsible manner. CONSENT AGENDA ITEM DATE: August 21, 2023 TO: Mayor and City Council FROM: Monte Johnson RE: American Legion Request for Alley Closure ATT: Signatures, Map AGENDA ITEM SUMMARY: The American Legion has requested to close the alley behind them so that they could host an event. This event was approved and held the last two years and is being planned this year in similar fashion. A layout is attached that shows the area of the alley to be closed. Permission has been received from each business on that block that could be affected by the alley closure. The American Legion is requesting closure of the alley on Sunday, September 10th. The Legion is calling the event “Party Out Back”, which would start at noon and end at 6:00 p.m. They are requesting to close the alley at 11:00 am to set up and keep it closed until 7:00 p.m. for cleanup. They will have roasts, bands, and beverages. The event will be open to the public. RECOMMENDATION: Therefore, if Council con curs, it is recommended a motion be made to approve the closure of the alley west of Riverside Drive on Sunday, September 10th, from 11:00 a.m. until 7:00 p.m. 82 NParkStNParkStNRiversideDrNRiversideDrPe a rlSt Pe arlSt Source: Esri, Maxar, Earthstar Geographics, and the GIS User Community~ Sources: Esri, HERE, Garmin, FAO, NOAA, USGS, © OpenStreetMap contributors, and the GIS User Community µ American Legion - Party Out Back Amer i c a n L e g i o nArea to be closed83 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 CONSENT AGENDA SUPPLEMENT DATE: August 21, 2023 TO: Mayor and City Council FROM: Bill Hobson, Director of Parks and Recreation RE: McHenry Riverwalk Foundation Light the Night Event AGENDA ITEM SUMMARY: The McHenry Riverwalk Foundation has been working with the City of McHenry to coordinate the “Light the Night” event once again at Miller Point Park. They are requesting use of the space and city assistance to host an event entitled “Light the Night” on September 17, 2023 from 4pm – 10pm that would include music, food, alcohol, artisans/crafters and a brief fireworks display. BACKGROUND: The “Light the Night” event has been hosted three times in Miller Point Park so far and each has been extremely successful for the community, visitors and for the vendors. Previous events have included artisans/crafters that set-up along the Riverwalk frontage and two to three food vendors in the parking lot. The Riverwalk Foundation and the City have partnered with All Marine Retro Rentals who currently holds a liquor license for this site to provide the alcohol. There typically have been two to three music acts for the evening and last year a display by Fire dancers. This year’s event is proposed to follow the same format. The centerpiece of the event will continue be the lighting of 10 - 36” fire globes with unique designs that local businesses have sponsored. The fire globes will have wood that will be placed in them for the night and will be manned by Parks and Recreation maintenance staff. The globes will be lit at dark and will remain lit for approximately 2 hours. At the end of the evening organizers are requesting permission for a 10-minute fireworks show over the Fox River at approximately 9:45pm. All events will be completed by 10pm and the anticipated attendance for the event is 2,000 people. 84 ANALYSIS: This proposed event will be co-sponsored by the McHenry Riverwalk Foundation and the City of McHenry. It will have a very similar look and feel that that of a Thursday night City Band Concert at Veteran’s Memorial Park except it will be located on the Fox River. It is a low intensity event, yet one that takes advantage of the new space and draws notoriety to the city’s presence on the Fox River. RECOMMENDATION: Therefore, if Council concurs, it is recommended that a motion be considered to approve: 1) a Parks special use permit to allow for food trucks, vendor tents and live music, 2) to allow alcohol in the park aside from the designated areas adjacent to All Marine Retro Rentals at Miller Point Park on Saturday 9/17 from 4pm – 10pm and 3) permission for an approximately 10 minute fireworks display at 9:45pm . 85 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 CONSENT AGENDA SUPPLEMENT DATE: August 21, 2023 TO: Mayor and City Council FROM: Bill Hobson, Director of Parks and Recreation RE: Full Moon Market AGENDA ITEM SUMMARY: The organizers of the Pearl Street Market have been working with the City of McHenry to coordinate a “Full Moon Market” event at Miller Point Park. They are requesting use of the space and city assistance for minor set up items to host the event on October 7, 2023 from 3pm – 8pm. The event would include music, food, alcohol and artisans/crafters. BACKGROUND: The “Full Moon Market” event would be similar to the recently hosted “Light the Night” event. The event would be hosted in the late afternoon into the early evening culminating with the city lighting the fire globes as we normally would on a Saturday evening. The event would include approximately 25 artisans/crafters that would be set-up in the park. Three to Four food vendors would also be in the parking lot. Organizers would partner with All Marine Retro Rentals who currently holds a liquor license for this site. They would have beer and wine available for purchase and are also request participants be able to navigate the park with their drinks as opposed to being restricted to one area. There will be two music acts for the event. All events will be completed by 8pm and the anticipated attendance for the event is 1,000 people. ANALYSIS: This proposed event is a low intensity event, yet one that takes advantage of the new spa ce and continues to draw visitors downtown and notoriety to the city’s presence on the Fox River. RECOMMENDATION: Therefore, if Council concurs, it is recommended that a motion be considered to approve: 1) Parks Special use permit to allow multiple tents at 1202 Riverside Drive (Miller Point Park) with live music on Saturday 10/7 from 3pm to 7pm and 2) to allow alcohol in the park aside from the designated areas adjacent to All Marine Retro Rentals at Miller Point Park on Saturday 10/7 from 3pm – 8pm. 86 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 CONSENT AGENDA SUPPLEMENT DATE: August 21, 2023 TO: Mayor and City Council FROM: Bill Hobson, Director of Parks and Recreation RE: Rejection of the bids for the Sheriff’s Marine Unit Building Attachment: Bid Tab Sheet AGENDA ITEM SUMMARY: The city opened bids for the construction of the McHenry County Sheriff’s Marine Unit Building to be located at Miller Riverfront Park adjacent to the boat launch. Five bids were received and all were significantly over budget. Staff is re questing city council reject all the bids and re-bid the project with updated specifications. BACKGROUND: The city entered into an intergovernmental agreement with the McHenry County Sheriff’s Department in 2021 for the construction of piers and the placement of a trailer housing the Sheriff’s Marine Unit at Miller Riverfront Park. The intent of the agreement however was to further establish the Marine Unit presence with a permanent building that the city would build based on the sheriff’s specifications and that the sheriff’s department would fund. Additionally, as part of the building two single public bathrooms would be constructed. Within the agreement the city would provide the electricity and fund a portion of the water and sewer costs at 50% of the costs of the utilities, with the intention of a $50,000 cap on city exposure. The Sheriff’s Department contracted with an architect and plans were completed and released for bid. Those bids were opened two weeks ago and greatly exceeded the budget for t he project, the bid results are attached to this document. The low bid was $927,000. At this cost the project is simply not feasible, however after an analysis of the plans and a meeting with the architect, there are a number of areas for value engineering options in the hopes of shaving $200K-300K off of the cost of the building. Due to the drastic change in plans, staff is requesting to reject all the bids, re-engineer and re-bid the project with the future results being presented to city council at the first meeting in October. 87 ANALYSIS: The intergovernmental cooperation of the project and the location afford a great partnership opportunity that is already benefitting both parties. This is certainly not a concept that either party wishes to abandon but as with any project controlling costs is essential. New bids will be due on September 15th and reviewed before proposed placement on the October 2nd agenda. If City Council concurs then a motion should be considered to reject all submitted bids for the Sheriff’s Marine Unit Building at Miller Riverfront Park, update engineering and rebid the project for future city council consideration. 88 Tabulation of Bids Date:7/28/2023 Boller Construction Kandu Construction Inc.Manusos General Contracting Inc Stuckey Construction Co. Wm. Tonyan and Sons, Inc. Time:10:00 a.m.3045 West Washington Street 8055 Ridgeway Ave.91 Christopher Way 3045 West Washington Street 1400 South Route 31 Waukegan, IL 60085 Skokie, IL 60076 Fox Lake, IL 60020 Waukegan, IL 60085 McHenry, IL 60050 Bid Bond Bid Bond Bid Bond Bid Bond Bid Bond Unit Quantity Total Total Total Total Total LUMP SUM 1 $1,031,700.00 $1,134,000.00 $807,136.00 $818,900.00 $803,500.00 LUMP SUM 1 $90,000.00 $34,000.00 $68,300.00 $72,500.00 $141,000.00 LUMP SUM 1 $50,000.00 $68,000.00 $26,775.00 $16,500.00 $14,500.00 LUMP SUM 1 $23,000.00 $31,000.00 $24,789.00 $24,500.00 $24,000.00 $1,194,700.00 $1,267,000.00 $927,000.00 $932,400.00 $983,000.00 $1,194,700.00 $1,267,000.00 $927,000.00 $932,400.00 $983,000.00 LOW BIDDER Total Bid:As Read: As Calculated: 4 SITE LIGHTING RELOCATION 3 5-INCH WELL 1 BUILDING 2 LIFT STATION, FORCEMAIN, SEWER SERVICE Attended By: Item No.Item Proposal Guarantee: See Attached Attendance Sheet Terms: Estimate: Project:2023 Miller Park Sheriff Station Local Public Agency:City of McHenry Address of Bidder:County:McHenry Name of Bidder: Printed 7/28/2023 BLR 12315 (Rev. 07/16/13)89 City of McHenry Council Meeting Minutes 8.7.23 MINUTES REGULAR CITY COUNCIL MEETING Monday, August 7, 2023, 7:00 p.m. McHenry High School Upper Campus Auditorium 4724 W Crystal Lake Road, McHenry, IL 60050 Roll Call: Mayor Jett called the roll call. Members present Alderman Santi, Alderman Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Strach, Alderman Koch, Alderwoman Miller, and Mayor Jett. Others present Attorney McArdle, Administrator Morefield, Director of Community Development Polerecky, Finance Director Lynch, Director of Parks and Recreation Hobson, Director of Economic Development Martin, Chief of Police Birk, City Planner Sheriff, Deputy Clerk Johnson, and City Clerk Ramel. Pledge of Allegiance: Mayor Jett led the pledge Consent Agenda. Motion to Approve the following Consent Agenda Items as presented: A. Per the City’s Purchasing and Procurement Policy, the acceptance of a low bid proposal from Advantage Mechanical, Inc of McHenry in an amount not to exceed $17,310.00 for the emergency replacement of air conditioning equipment at the Regional Pump Station . (City Administrator Morefield) B. Block Party request on Carey Drive on August 19, 2023, from 12:00 noon to 11:00 p.m., pending the receipt of signatures from all residents af fected acknowledging their approval of the party; and a Block Party request on Jennifer Lane on August 19, 2023, from 12:00 noon to 10:00 p.m. (Deputy City Clerk Johnson) C. Parks & Recreation Facilities & Special Use Permit Requests; D. July 17, 2023, City Council Meeting Minutes; E. Issuance of Checks in the amount of $1,578,530.73 A motion was made by Alderman Santi and seconded by Alderman McClatchey t o approve Consent Agenda Item as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Strach, Alderman Koch, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. 90 City of McHenry Council Meeting Minutes 8.7.23 2 Individual Action Item Agenda A. Public Hearing - Land Reserves Annexation Agreement Hearing and Continued Public Comment Mayor Jett made a motion at 7:03 PM to enter Public Hearing. Director Polerecky spoke regarding the original meeting on June 5 th when this topic was first brought to council. Some of the following changes were revised: Elimination of primary crusher, an extension of sewer and water, withdrawal of all variance requests, new hours M-F 6 am- 6 pm (reduction of hours), paved area wash station and exit to Route 120, increased enforcement language, and increase in monitoring of the wells. Attorney McArdle asked Director Polerecky to expand on the other additions as well. These included: EOPC 125% these changes are reflected in paragraph 7 and page 147 electronically along with added language in section 2B adding in no crushing greater than 5 inches, no concrete crushing, and no recycling. These were amended to the proposed agreement. Larry Thomas from Stanley Consultants was present at the meeting. He presented a report of the findings from the hydrological study from the prior week, which not all have had the chance to review. Will summarize the three conclusions and 6 recommendations and give his qualifications for the residents to know more history regarding his expertise in his position. The materials that are used went through the Super Aggregates and were reviewed. The direction of groundwater NW to SW was the flow, but after looking more detailed the water in that site could run in any direction from that site. There was some question in the direction of the flow of that property. Several of the documents were reviewed, according to Larry Thomas as he spoke to the residents. The hydrological study was also reviewed. The water quality testing will result from determining which way the water is flowing. Groundwater containments have not been found in any of the documents per any of the McHenry current gravel pits. If not careful they can be a route to water contamination, however. Buried tanks have the most chance of contamination. Conclusions: Groundwater quantity will not be reduced in the mining operation, no matter what direction the water flows it will continue that way and will not reduce the flow of the flow. Contamination of the water is very unlikely, the management practices are important , but not a guarantee of no contamination. 91 City of McHenry Council Meeting Minutes 8.7.23 3 *Clerks Note- Below is a summary of speakers during the public hearing period, however, the full comments section can be viewed through the YouTube recording of the meeting. Public Comment: Bob Roitbalt- Talked about noise levels, which are above 85 decimals, this kind of equipment can be over that at 86 decimals. Home values within 3 mil es would be reduced by 4.9%. Wanted to deny the application for annexation. Berms and vegetation should be added to help with noise and site applications. Nick Finia- a resident of 17 years, behind the Meyer Gravel Pit, said the noise and dust are false, they lived it for 17 years. Talked about the hours of operation and how sometimes these times happen even earlier. Trucks not covered in tarp, rocks falling on vehicles b ehind them, the noises as well. Dust is out of control cannot open windows, or patio doors. Robert Hunter- Riverside Chocolate Factory, stated that he has heard many voices and it is of those from families and customers. Many voiced health concerns, water concerns, and others that they have been personally hearing at his business. Would like to support their wishes by saying “no to the gravel pit”. Stephanie Tesnegler- Talked about the dangers of the property, talked about contamination as well as the soil type as well as the effects of the mining. Kathleen Schluefer- retired attorney, resident of Lakemoor. Has valid concerns regarding the risks of the gravel pits, water supply, traffic on 120, noise, and dust will not be the same as it is today. Talked about Planning and Zoning and how they denied this , to begin with. Talked about violations by Super Aggregates that were public records. Carroll Monson-30 year resident, asking the council to vote for McHenry residents, talked about making the right choice. Terry Kappel – Democratic precinct, the public should have the right to deny gravel pits that are located near subdivisions, and the public should be able to make regulations that are not near the residential areas. He is not against gravel pits and what they provide, no sense in the middle of a residential area. Who will reclaim this site, is another issue brought to the attention. Rhianna Brown- a resident for over 30 years, talked about the concrete drivers. Her dad used to drive for Meyer and talked about the time he took the time to drive down there. Her dad had a first heart attack and was told that breathing in the silica causes and then was diagnosed with colon cancer. Remember those that will be directly impacted. 92 City of McHenry Council Meeting Minutes 8.7.23 4 Jennifer Weinberg- Talked about living across from a gravel pit for the last 15 years, Valley View is where her children attended surrounded by all three sides of the gravel pit. She is also a teacher as well, stated that she has not seen any issues with dust from the gravel pit or has heard of any issues with children getting sick. West side of the classroom with windows open facing the gravel pit the room was not dusty. John Gacek- resident over 50 years with family. Talked about groundwater contamination and what is the plan that is specific to this site if there is a disaster, and who will pay for it and take care of it. Ann O’Connell- resident of Johnsburg, Chapel Hill Road. Her husband is sick and talked about the fires and he could not go outside. The main concern is the air quality, and if he cannot go outside and the quality of life. Along with the kids that go to the schools and mentioned sports and things where kids are outside and the air quality along with the traffic. Ginger Coull- a resident who lives close to the Thielen Pit, talked about how much noise and dust she has experienced. Glen Reid- a resident, talked about how he lives 150 feet from the pit. Showed everyone the Peony Bush and how it was covered with dust. Talked about the fumes and about how the effects happened years later. Heather Woodward- resident 12 years, serious negative health effects on the people of McHenry particularly those in the schools of the surrounding area. Talked about the air quality studies and how that has not been done. Just because you do not see Silica doesn’t mean that it is not there, along with the traffic study as well. The current land owner doesn’t have the use for permitting a gravel pit. Christine Layton-37 years ago, Jack would convert the gravel pit into home sites and it has never happened. Regarding that one on the route. Talked about the noises that she experience, the dust all day five days a week, looking out her windows to see soil, dirt, concrete, and how her land now floods. She is a retired teacher from Valley View School and there is dust when she went to walk out to her car. She is speaking the truth about the dust and the noise. She recommends getting into a position where there is some control over the business owner if the pit cannot be stopped 93 City of McHenry Council Meeting Minutes 8.7.23 5 Paul Gurns- talked about the dust and the noise and stated that it is disappointing that this is still a concern for the pit. Unanimously it was voted down by Planning and Zoning and is still being concerned. Would like Jack Pease to be a good neighbor and will keep him in the word. Penny Peterson- If you build a gravel pit around people that are already existing that is one thing, but moving by one is a resident’s choice. Talked about a resident that has a disease from Silica. Chris Pry-resident and realtor. Talked about how hard it is to sell a home and that buyers are particular about where they purchase to being with. The positive spin is not a reality with buyers. Had buyers cancel contracts based on this risk level. It would be better to approve it for a housing element rather than a gravel pit. Zach Walters- Talked about how the study seems to be on the quality of the water alone. The right thing to do is say no. Tom Potts- Talked about the opportunity of McHenry and that this would be a good interest for the community. Colleen Kuraszek- the resident, talked about conditional use and if this: quoted the planning and zoning statements. Time Kuraszek – resident, gravel pits do not belong in the residential neighborhoods. Talked about the 6 am and how the noises are. Showed a map of how many homes will be affected by 470 homes within ½ mile with 1,000 people in those homes. The comprehensive plan doesn’t mention the gravel pit. Taylor Hill- resident, 5,000 petitioners that are against the gravel pit. Loss prevention program for when they sell their homes at a loss value. Is there going to be a traffic program that the 1500 trucks that will occur as well, along with the safety program regarding the schools and the crossing of the schools? How will the air quality as well as the pets and gardens ? Wanted to know who will oversee the gravel pit and keep the promises. Lexi DeWitt- resident 8 years, benefits only for Super Aggregates. Wanted to know how this will help with the town. Stated that people will die if moved forward. Luke Rose – Talked about the primary concern of health. People that live within 500 miles of the pit cannot grow crops etc. There has been a lack of communication regarding this topic. Sounded like a blueprint for best practices has been outlined but did not outline the health of those. Questionable of zoning ordinances in the history of the town. 94 City of McHenry Council Meeting Minutes 8.7.23 6 Sharon Lane- resident, also a realtor. Wanted to know if we should be digging more gravel pits, they are not economic development they are destruction and mention global warming. This should be for development. The county will get the fight of their lives if approved. Michelle Anstedt- resident, mom of 3, talked about being outside and concerned about the air. Stated that one of her children’s needs is a concern as well. The noble thing is to vote no and stand with them against the county. Mike Clark- a resident, and retired policeman, stated this was a bad deal, selling the land that will not allow any benefits for the city. Vote no. Jim Heary- a resident, would like the city council to uphold what they have been voted to do and stand with the Kelly Wagenor- the county stated that if it comes to the county for the people. Dawn R- resident, concerned about the health of the people coming here from Antioch is beyond words when it came to this pit, would have never moved here almost two years ago. Juan Q- a resident, from Chicago, moved here about two years ago. Normally to see this occur in Chicago when public parking was sold to a private company seemed like a good idea and then become a bad deal. What may look like a good deal will not look good ten years from now. Moved here stated that people would fight and want clean air and water. Hold yourself to a higher standard, you sever us. Gloria Vanhoff- County stated that they are ready for the fight on the county board, vote your concise. Kimberly Kolodzik – a resident of Dutch Creek Estates, stated that Jack Pease was not a good neighbor to her. Talked about the current state of the area and how things were left abandoned. Tom Floss- resident, of Wonder Lake for 35 years, lived in Volo for 7 years. Very familiar with the gravel industry in construction but has a construction background as well. Nothing against Jack Pease would like to talk about the West end, talked about dust and Meyer Material, and how they used to wet down the road and dust up to Valley View Road. Weigh the short-term gains for the long-term pain. Jack Pease- Aggregate- Wanted to respond to some acquisitions that were mad e and explained his stance on those. He also went over some of the benefits of having the gravel pit as well as talked about many of the concerns that the residents had from the public comments above. 95 City of McHenry Council Meeting Minutes 8.7.23 7 At 9:32 Mayor Jett close the Public Hearing portion of the meeting. B.Super Aggregates Mining – North of State Route 120 and East of Chapel Hill Road i.Motion to approve an Ordinance Authorizing The Execution Of An Annexation Agreement Between The City Of McHenry And Land Reserves, LLC Concerning 110 Acres Located North Of State Route 120 And East Of Chapel Hill Road. (Vote required for passage: 6 of 8 City Council members, including the Mayor) *Directory Polerecky amendments: Sections A – B add the word recycling asphalt concrete or related grinding activity. 7 add the language of the engineer. Alderwoman Bassi thanked the Super Aggregates regarding the work put into this. Wanted to know if there were anywhere from 50-100 trucks today. Have you had any conversation with Lakemoor, seems the trucks will be going East in their opinion. Jack Pease confirmed that there was no conversation. Alderman Santi thanked everyone for coming out and having a discussion regarding this. There is a control concern regarding this, as a whole , would much rather have the control as a smaller entity. Alderman McClatchey the biggest concerns stated the added traffic, and would like something nice to be their homes, ice rink, etc. A motion was made by Alderman Koch and seconded by Alderman Santi to approve Individual Agenda Items as presented: Roll Call: Vote: 5-ayes: Alderman Santi, Alderman Glab, Alderman Strach, Alderman Koch, Alderwoman Miller. 3-nays Alderman McClatchey, Alderwoman Bassi, Mayor Jett, 0-abstained. Motion denied. No public comment. *Clerks Note the following items were not voted on* Alderman Glab asked if withdrew he and will have to start over with the process. Attorney McArdle stated withdrawing is suggested at this time there is no agreement to move forward. Jack Pease, would like to keep intact the conditions and would like to move forward to withdrawal but would like to continue forward and bring those forward. 96 City of McHenry Council Meeting Minutes 8.7.23 8 A motion was made by Alderman Glab and seconded by Alderman Strach to approve the withdrawal of the following individual action items by Jack Pease – Super Aggregates due to the first motion being denied: Roll Call: Vote: 8-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Koch, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. ii.Motion to approve an Ordinance Annexing To The City Of McHenry 110 Acres Located North Of State Route 120 And East Of Chapel Hill Road. (Vote required for passage: 5 of 8 City Council members, including the Mayor) iii.Motion to approve an Ordinance Granting Approval of a Preliminary and Final Plat of Subdivision of McHenry Lakes Business Park Subdivision in the City of McHenry, McHenry County, Illinois (Vote required for passage: 4 of 7 City Council members) iv.Motion to approve an Ordinance Granting A Zoning Map Amendment and Conditional Use Permit For Earth Extraction, Earth Materials Process Operations, Asphalt/Concrete Recycling Operations, And Outdoor Storage Associated With The Operation Of A Gravel Pit And Construction Of A Lake. (Vote required for passage: 4 of 7 City Council members) Public Comment: Laurie Martinez – 7 years ago moved to McHenry, went into the basement stated that the water was gushing through the basement, and found out that it was raw sewage. Called 911 and had the water shut off. Stated that there was a city sewer line that was clo gged. Hired a professional to help clean. Many of the items that were damaged were mementos in boxes. Out $35,000 state many said it was the city’s fault. Needed to get the sewer line jetted. Started the jetting process and stated that the line was going to pieces. They also had to pay for the sewer line. Did go ahead and call the city because she wanted to have a meeting with the Mayor so she can explain, but the city has not been helpful. Attorney McArdle stated that the claim has been denied through the city insurance and stated that there is no liability. Mayor Jett stated that he would be happy to connect with the resident to talk further with her and the council. Staff Reports: D156 Thank you to McHenry West from Administrator Morefield, for allowing us to utilize the space and for all the help that was provided this evening. Many thanks as well from Mayor Jett to Aaron Grieves and Monte Johnson for their help tonight as well. Mayor’s Report: Mayor Jett spoke a bit about his vote and stated that many hours went into working with Super Aggregate, not as much as staff, but he had a gut feeling you have to go 97 City of McHenry Council Meeting Minutes 8.7.23 9 with your heart per his vote. City Council Comments: Alderwoman Bassi wanted to make sure that the noise volume was not as high regarding the Blues Brew and BBQ. Alderman McCathcey wanted to know about the Public Works Director. Stated that there will be an opening being posted tomorrow. Alderman Glab stated that talked with a resident regarding the barn and wanted to know about the plan regarding the use for the public and what the plans are regarding it. Would like to add this to an agenda. Alderman Santi had a tough decision tonight make your vote and move on together. Executive Session as needed: Not needed Adjourn: A motion was made by Alderman Santi and seconded by Alderman McClatchey to adjourn the meeting at 10:38. Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Strach , Alderman Koch, Alderwoman Miller. 0-nay-, 0-abstained. Motion carried. X Mayor Wayne Jett X City Clerk Trisha Ramel 98 Expense Approval Register   McHenry, IL List of Bills Council Meeting ‐ 8‐21‐23        Vendor Name    Payable Number    Post Date    Description (Item)    Account Number    Amount   Vendor: AEP ENERGY   AEP ENERGY   INV0014932  08/21/2023  UTIL  100‐33‐5520  3,815.93 AEP ENERGY     INV0014932    08/21/2023    UTIL    100‐42‐5510    1,277.44 AEP ENERGY     INV0014932    08/21/2023    UTIL    100‐45‐5510    468.16 AEP ENERGY   INV0014932  08/21/2023  UTIL  400‐00‐5510  2,845.70 AEP ENERGY   INV0014933  08/21/2023  UTIL  510‐31‐5510  13,965.88 AEP ENERGY     INV0014933    08/21/2023    UTIL    510‐32‐5510    22,884.92 Vendor AEP ENERGY  Total: 45,258.03   Vendor: AMAZON CAPITAL SERVICES  AMAZON CAPITAL SERVICES  1NJH‐666W‐KCL6  08/21/2023  CD SLEEVES  100‐22‐6210  29.40 Vendor AMAZON CAPITAL SERVICES Total:   29.40   Vendor: AMERICAN LEGAL PUBLISHING  AMERICAN LEGAL PUBLISHING    26865    08/21/2023    SUPPLEMENTAL ORDINANCE    100‐01‐5110    1,350.42 Vendor AMERICAN LEGAL PUBLISHING Total:   1,350.42   Vendor: BAKER & SON CO, PETER  BAKER & SON CO, PETER    23043.02    08/21/2023    DARTMOOR DR RESURF    100‐33‐5300    175,020.36 BAKER & SON CO, PETER    23043.02    08/21/2023    DARTMOOR DR RESURF    100‐33‐5301    71,767.70 BAKER & SON CO, PETER  42588  08/21/2023  SFC  100‐33‐6110  637.42 Vendor BAKER & SON CO, PETER Total:   247,425.48   Vendor: BAXTER & WOODMAN  BAXTER & WOODMAN    0248649    08/21/2023    SUPER AGG    740‐00‐5220    225.00 Vendor BAXTER & WOODMAN Total:   225.00   Vendor: COMED  COMED    INV0014934    08/21/2023    UTIL    100‐33‐5520    5.39 COMED    INV0014935    08/21/2023    UTIL    510‐32‐5510    1,678.00 Vendor COMED Total:   1,683.39   Vendor: CURRAN CONTRACTING COMPANY  CURRAN CONTRACTING    22046    08/21/2023    MFT STREETS 2023    270‐00‐8600    82,709.55 CURRAN CONTRACTING    28000    08/21/2023    SFC    100‐33‐6110    71.98 Vendor CURRAN CONTRACTING COMPANY Total:   82,781.53   Vendor: DAHLIN, M, PC  DAHLIN, M, PC    8‐2‐23    08/21/2023    AUGUST ADM ADJ COURT    100‐03‐5110    92.25 DAHLIN, M, PC    8‐2‐23    08/21/2023    AUGUST ADM ADJ COURT    100‐22‐5110    830.25 Vendor DAHLIN, M, PC Total:   922.50   Vendor: FOX VALLEY FIRE & SAFETY  FOX VALLEY FIRE & SAFETY    IN00615045    08/21/2023    6/16‐7/15/23 RADIO MAINT     225‐00‐5110    3,119.00 Vendor FOX VALLEY FIRE & SAFETY Total: 3,119.00   Vendor: HRGREEN  HRGREEN    1 5‐25‐23    08/21/2023    4/30/23    270‐00‐8600    8,401.71 HRGREEN    2‐164107    08/21/2023    6‐21‐23    270‐00‐8600    25,942.72 HRGREEN    3‐165209    08/21/2023    7‐25‐23    270‐00‐8600    26,456.60 Vendor HRGREEN Total:   60,801.03   Vendor: LEXISNEXIS  LEXISNEXIS    1236684‐20230731    08/21/2023    JULY 2023 SEARCHES    100‐22‐5110    130.50 Vendor LEXISNEXIS Total: 130.50   Vendor: SERPE, SAMUEL ROBERT  SERPE, SAMUEL ROBERT  INV0014936  08/21/2023  WATER POLO JULY 6‐AUG 3  100‐42‐5110  285.00 Vendor SERPE, SAMUEL ROBERT Total:   285.00       8/16/2023 2:07:11 PM   99 Expense Approval Register Packet: APPKT02764 ‐ 8‐21‐23 AP CKS   Vendor Name    Payable Number    Post Date    Description (Item)    Account Number    Amount   Vendor: US BANK EQUIPMENT FINANCE  US BANK EQUIPMENT FINANCE    508373792    08/21/2023    C H COPIERS    620‐00‐5110    598.56 Vendor US BANK EQUIPMENT FINANCE Total:   598.56   Vendor: WINNEBAGO LANDFILL CO  WINNEBAGO LANDFILL CO    12129    08/21/2023    SLUDGE    510‐32‐5580    5,727.60 Vendor WINNEBAGO LANDFILL CO Total:   5,727.60        Grand Total:   450,337.44                   8/16/2023 2:07:11 PM   100 Expense Approval Register Packet: APPKT02764 ‐ 8‐21‐23 AP CKS     Fund Summary      Fund    Expense Amount     100 ‐ GENERAL FUND    255,782.20     225 ‐ ALARM BOARD FUND  3,119.00    270 ‐ MOTOR FUEL TAX FUND    143,510.58     400 ‐ RECREATION CENTER FUND    2,845.70     510 ‐ WATER/SEWER FUND    44,256.40     620 ‐ INFORMATION TECHNOLOGY FUND    598.56     740 ‐ RETAINED PERSONNEL ESCROW  225.00   Grand Total:   450,337.44                   101 Expense Approval Register   McHenry, IL #2 List of Bills Council Meeting ‐ 8‐21‐23       Vendor Name    Payable Number    Post Date    Description (Item)    Account Number    Amount   Vendor: A FREEDOM FLAG CO  A FREEDOM FLAG CO  25104  08/21/2023  25104  100‐03‐6110  780.00 Vendor A FREEDOM FLAG CO Total:   780.00   Vendor: ADAMS STEEL SERVICE & SUPPLY, INC  ADAMS STEEL SERVICE &  384327  08/21/2023  Aerator #2 Crane Service INV#  510‐32‐5375  205.00 ADAMS STEEL SERVICE &  AUGUST2023‐8  08/21/2023  Bottle Rental ‐ Nitrogren for  510‐32‐6110  50.00 Vendor ADAMS STEEL SERVICE & SUPPLY, INC Total:   255.00   Vendor: AHW, LLC  AHW, LLC  11686536  08/21/2023  Gator‐Service Kit  INV#  510‐32‐5370  63.24 Vendor AHW, LLC Total:   63.24   Vendor: AMAZON CAPITAL SERVICES  AMAZON CAPITAL SERVICES    174V‐9CXM‐JPVH    08/21/2023    Tape Refill ‐ STS ‐ 112‐4502640‐   100‐33‐6110    28.43 AMAZON CAPITAL SERVICES    1DWR‐JWRQ‐J47T    08/21/2023    Blinds Training Room    100‐22‐6110    445.67 AMAZON CAPITAL SERVICES  1HJM‐JWW6‐HXVX  08/21/2023  Faucet, valve and lettering  100‐03‐6110  174.00 AMAZON CAPITAL SERVICES    1LCL‐HVL3‐KJ14    08/21/2023    Office Supplies / Video Cable    620‐00‐6210    78.16 AMAZON CAPITAL SERVICES    1LK9‐WMY3‐FVPY    08/21/2023    Office Supplies    100‐22‐6210    26.44 AMAZON CAPITAL SERVICES    1LK9‐WMY3‐FVPY    08/21/2023    Office Supplies    100‐22‐6210    171.80 AMAZON CAPITAL SERVICES  1LK9‐WMY3‐FVPY  08/21/2023  Office Supplies  100‐22‐6210  16.10 AMAZON CAPITAL SERVICES    1TQ1‐FDLT‐KKWL    08/21/2023    Wishy Washy for Pool    100‐42‐6110    208.75 Vendor AMAZON CAPITAL SERVICES Total: 1,149.35   Vendor: AQUALAB WATER TREATMENT, INC  AQUALAB WATER TREATMENT,    11513    08/21/2023    11513    100‐03‐5120    100.00 Vendor AQUALAB WATER TREATMENT, INC Total:   100.00   Vendor: ARAMARK REFRESHMENT SERVICES LLC  ARAMARK REFRESHMENT    06921089    08/21/2023    Coffee #06921089    100‐01‐6110    149.14 ARAMARK REFRESHMENT  06921090  08/21/2023  Coffee #06921090  100‐01‐6110  43.85 Vendor ARAMARK REFRESHMENT SERVICES LLC Total:   192.99   Vendor: AUTOMOTIVE LIFT CONSULTANT  AUTOMOTIVE LIFT    329    08/21/2023    Lift Inspections (Fleet Bay) #329    100‐33‐5370    240.00 Vendor AUTOMOTIVE LIFT CONSULTANT Total:   240.00   Vendor: BROWN EQUIPMENT  BROWN EQUIPMENT    INV21102    08/21/2023    Parts for the Aquatech    510‐32‐5370    1,959.47 Vendor BROWN EQUIPMENT Total: 1,959.47   Vendor: BS&A SOFTWARE  BS&A SOFTWARE    148750    08/21/2023    BS&A Annual Service & Support    620‐00‐5110    4,776.00 Vendor BS&A SOFTWARE Total: 4,776.00   Vendor: CABAY & COMPANY INC  CABAY & COMPANY INC  68243  08/21/2023  custodial supplies  400‐00‐6111  252.95 CABAY & COMPANY INC    68243    08/21/2023    custodial supplies    400‐40‐6110    396.52 CABAY & COMPANY INC    68258    08/21/2023    Shop Hand Soap #68258    100‐33‐6115    120.96 CABAY & COMPANY INC    68279    08/21/2023    custodial supplies    400‐00‐6111    70.60 Vendor CABAY & COMPANY INC Total:   841.03   Vendor: CASTLE AUTOMOTIVE GROUP  CASTLE AUTOMOTIVE GROUP    5106865    08/21/2023    310 (5106865)    100‐22‐5370    32.16 CASTLE AUTOMOTIVE GROUP    5107283    08/21/2023    Vehicle repair    100‐45‐5370    510.00 CASTLE AUTOMOTIVE GROUP  6428691  08/21/2023  344   6428691  100‐22‐5370  883.56 Vendor CASTLE AUTOMOTIVE GROUP Total:   1,425.72   Vendor: CDW GOVERNMENT INC  CDW GOVERNMENT INC    LC17605    08/21/2023    Logitech Meetup Video    620‐00‐6270    1,047.59 Vendor CDW GOVERNMENT INC Total:   1,047.59       8/16/2023 2:09:21 PM   102 Expense Approval Register Packet: APPKT02767 ‐ 8‐21‐23 RECT INV   Vendor Name    Payable Number    Post Date    Description (Item)    Account Number    Amount   Vendor: CINTAS CORPORATION LOC 355  CINTAS CORPORATION LOC 355    5170142716    08/21/2023    Invoice 5170142716    400‐00‐6130    165.32 Vendor CINTAS CORPORATION LOC 355 Total:   165.32   Vendor: CINTAS   CINTAS     5170309546    08/21/2023    Shop suppplies    100‐45‐5110    62.99 Vendor CINTAS  Total:   62.99   Vendor: CITYTECH USA INC  CITYTECH USA INC    4255    08/21/2023    Public Salary Membership    100‐05‐5410    390.00 Vendor CITYTECH USA INC Total: 390.00   Vendor: COMCAST CABLE  COMCAST CABLE  0291 8‐1‐23  08/21/2023  CH Cable TV  620‐00‐5110  27.40 COMCAST CABLE    7920 7‐27‐23    08/21/2023    CH Monthly Internet    620‐00‐5110    178.40 Vendor COMCAST CABLE Total: 205.80   Vendor: COMCAST ENS  COMCAST ENS  178875566  08/21/2023  Comcast Ethernet Network  620‐00‐5110  3,157.00 Vendor COMCAST ENS Total:   3,157.00   Vendor: DAHM ENTERPRISES, INC  DAHM ENTERPRISES, INC    1862    08/21/2023    July Land Application # 1862    510‐32‐5580    409.86 Vendor DAHM ENTERPRISES, INC Total:   409.86   Vendor: DELL MARKETING LP  DELL MARKETING LP    10689552621    08/21/2023    Laptop Computer and Dock    620‐00‐8300    28,619.00 Vendor DELL MARKETING LP Total:   28,619.00   Vendor: DIRECT FITNESS SOLUTIONS  DIRECT FITNESS SOLUTIONS    0572438‐IN    08/21/2023    Fitness Equipment Repair    400‐40‐5375    388.73 Vendor DIRECT FITNESS SOLUTIONS Total: 388.73   Vendor: DREISILKER ELECTRIC MOTORS INC  DREISILKER ELECTRIC MOTORS  I247123  08/21/2023  SWWTP‐SBR Pump#3 Stator  510‐32‐5375  140.00 Vendor DREISILKER ELECTRIC MOTORS INC Total:   140.00   Vendor: DRYDON / A DXP COMPANY  DRYDON / A DXP COMPANY    0000650    08/21/2023    Polymer mixing chamber seal    510‐32‐5375    167.20 Vendor DRYDON / A DXP COMPANY Total:   167.20   Vendor: EDESIGN CHICAGO  EDESIGN CHICAGO    2017071    08/21/2023    Brochure ‐ Fall Design    100‐41‐5330    478.13 Vendor EDESIGN CHICAGO Total:   478.13   Vendor: ED'S AUTOMOTIVE/JIM'S MUFFLER SHOP  ED'S AUTOMOTIVE/JIM'S    415 7‐25‐23    08/21/2023    Vehicle Safety Inspection (415)    100‐33‐5370    40.00 ED'S AUTOMOTIVE/JIM'S    634 7‐10‐23    08/21/2023    Vehicle Safety Inspection (634)    510‐32‐5370    59.50 ED'S AUTOMOTIVE/JIM'S    802 7‐25‐23    08/21/2023    Vehicle Safety Inspection (802)    510‐35‐5370    59.50 Vendor ED'S AUTOMOTIVE/JIM'S MUFFLER SHOP Total:   159.00   Vendor: ED'S RENTAL & SALES INC  ED'S RENTAL & SALES INC    398696‐1    08/21/2023    Shop supplies    100‐45‐6110    205.00 Vendor ED'S RENTAL & SALES INC Total: 205.00   Vendor: EJ USA INC  EJ USA INC    110230057843    08/21/2023    Hydrant Part 110230057843    510‐31‐6110    294.94 Vendor EJ USA INC Total: 294.94   Vendor: ELEVATOR INSPECTION SERVICE COMPANY, INC  ELEVATOR INSPECTION  116976  08/21/2023  116976  100‐03‐5120  175.00 Vendor ELEVATOR INSPECTION SERVICE COMPANY, INC Total:   175.00   Vendor: ESRI  ESRI    94533392    08/21/2023    ArcGIS Online Credit ‐ Block of    620‐00‐5110    600.00 Vendor ESRI Total:   600.00   Vendor: FIRST STUDENT, INC  FIRST STUDENT, INC    060885    08/21/2023    Camp ‐ Bus Invoice 060885    100‐46‐6112    1,351.50 FIRST STUDENT, INC    065725    08/21/2023    Camp ‐ Bus Invoice 065725    100‐46‐6112    1,155.00     8/16/2023 2:09:21 PM   103 Expense Approval Register Packet: APPKT02767 ‐ 8‐21‐23 RECT INV   Vendor Name    Payable Number    Post Date    Description (Item)    Account Number    Amount   FIRST STUDENT, INC    069545    08/21/2023    Camp ‐ Bus Invoice 069545    100‐46‐6112    1,155.00 Vendor FIRST STUDENT, INC Total:   3,661.50   Vendor: FISCHER BROS FRESH  FISCHER BROS FRESH    20581    08/21/2023    Concrete Road Program    100‐33‐6110    485.63 FISCHER BROS FRESH    20597    08/21/2023    Concrete ADAs #20597    100‐33‐6110    1,038.25 FISCHER BROS FRESH    20627    08/21/2023    ADAs/Road Program #20627    100‐33‐6110    790.50 FISCHER BROS FRESH  20636  08/21/2023  ADA Road Program #20636  100‐33‐6110  949.00 FISCHER BROS FRESH    20647    08/21/2023    ADA Road Program #20647    100‐33‐6110    1,166.75 FISCHER BROS FRESH    20663    08/21/2023    Concrete for Road Program    100‐33‐6110    726.25 FISCHER BROS FRESH    20679    08/21/2023    Road Program ADAs #20679    100‐33‐6110    949.00 FISCHER BROS FRESH  20689  08/21/2023  Road Program ADAs #20689  100‐33‐6110  889.75 FISCHER BROS FRESH  20695  08/21/2023  Concrete for Road Program  100‐33‐6110  750.00 FISCHER BROS FRESH    20708    08/21/2023    Concrete for Road Program    100‐33‐6110    1,521.75 FISCHER BROS FRESH    20719    08/21/2023    Road Program ADAs #20719    100‐33‐6110    1,161.00 FISCHER BROS FRESH    20729    08/21/2023    Concrete for Road Program    100‐33‐6110    679.13 Vendor FISCHER BROS FRESH Total:   11,107.01   Vendor: G & E GREENHOUSES INC  G & E GREENHOUSES INC    181625    08/21/2023    181625    100‐03‐6110    481.50 Vendor G & E GREENHOUSES INC Total:   481.50   Vendor: GALLS LLC  GALLS LLC    025173534    08/21/2023    Tie bars ‐ Male    100‐22‐4510    103.20 GALLS LLC    025193324    08/21/2023    Disposable Emergency Blankets    100‐22‐6110    65.66 GALLS LLC    025204239    08/21/2023    Uniform Order     100‐22‐4510    415.94 Vendor GALLS LLC Total:   584.80   Vendor: GOLD MEDAL PRODUCTS  GOLD MEDAL PRODUCTS    405520    08/21/2023    Invoice 405520    100‐44‐6110    369.65 Vendor GOLD MEDAL PRODUCTS Total:   369.65   Vendor: GOLF ACADEMY AT TERRA COTTA LLC  GOLF ACADEMY AT TERRA    1223‐463    08/21/2023    Golf Range Fee Summer    100‐47‐5110    444.00 Vendor GOLF ACADEMY AT TERRA COTTA LLC Total: 444.00   Vendor: GOVERNMENT FINANCE OFFICERS ASSOCIATION  GOVERNMENT FINANCE  2375702  08/21/2023  LYNCH GFOA MEMBERSHIP  100‐04‐5410  225.00 Vendor GOVERNMENT FINANCE OFFICERS ASSOCIATION Total:   225.00   Vendor: GRAINGER  GRAINGER    9788534460    08/21/2023    Propylene Glycol‐Sub.Pump    510‐32‐5380    980.76 Vendor GRAINGER Total:   980.76   Vendor: GUARDIAN ALLIANCE TECHNOLOGIES  GUARDIAN ALLIANCE    20636    08/21/2023    Applicant screening    100‐22‐5110    102.00 Vendor GUARDIAN ALLIANCE TECHNOLOGIES Total:   102.00   Vendor: HAWKINS INC  HAWKINS INC    6528275    08/21/2023    Chemicals    510‐31‐6110    8,662.15 HAWKINS INC    6537869    08/21/2023    Chemical Delivery #6537869    510‐32‐6110    7,101.40 HAWKINS INC    6545408    08/21/2023    Chemical Delivery #6545408    510‐32‐6110    12,452.10 Vendor HAWKINS INC Total:   28,215.65   Vendor: HDR, INC  HDR, INC    1200547522‐4    08/21/2023    2023 COMPREHENSIVE &    100‐03‐5110    16,000.00 Vendor HDR, INC Total:   16,000.00   Vendor: HEARTLAND BUSINESS SYSTEMS, LLC  HEARTLAND BUSINESS    622892‐H    08/21/2023    Milestone VMS License    620‐00‐8300    9,778.75 Vendor HEARTLAND BUSINESS SYSTEMS, LLC Total: 9,778.75   Vendor: HITCHCOCK DESIGN, INC  HITCHCOCK DESIGN, INC  30839  08/21/2023  Miller Point Construction  280‐41‐8800  732.06 HITCHCOCK DESIGN, INC  30897  08/21/2023  Parks Master Plan  280‐41‐8800  3,800.00 Vendor HITCHCOCK DESIGN, INC Total:   4,532.06       8/16/2023 2:09:21 PM   104 Expense Approval Register Packet: APPKT02767 ‐ 8‐21‐23 RECT INV   Vendor Name    Payable Number    Post Date    Description (Item)    Account Number    Amount   Vendor: HOME DEPOT PRO  HOME DEPOT PRO    51423485    08/21/2023    Cleaning Supplies    100‐03‐6110    167.37 Vendor HOME DEPOT PRO Total:   167.37   Vendor: INFOSEND, INC  INFOSEND, INC    244417    08/21/2023    JULY W‐S BILL PRINTING &    100‐04‐5310    720.98 INFOSEND, INC    244417    08/21/2023    JULY W‐S BILL PRINTING &    100‐04‐5330    304.38 Vendor INFOSEND, INC Total:   1,025.36   Vendor: INTERSTATE BILLING SERVICE INC  INTERSTATE BILLING SERVICE    3033455181    08/21/2023    416 (3033455181)    100‐33‐5370    180.00 INTERSTATE BILLING SERVICE    3033602815    08/21/2023    408 (3033602815)    100‐33‐5370    49.80 INTERSTATE BILLING SERVICE  3033637634  08/21/2023  802 (3033637634)  510‐35‐5370  800.00 INTERSTATE BILLING SERVICE  3033637635  08/21/2023  802 (3033637635)  510‐35‐5370  495.00 INTERSTATE BILLING SERVICE    3033698725    08/21/2023    414 sandblast & paint    100‐33‐5370    6,923.77 Vendor INTERSTATE BILLING SERVICE INC Total:   8,448.57   Vendor: INTOXIMETERS  INTOXIMETERS    739789    08/21/2023    Manual    100‐22‐6210    77.00 Vendor INTOXIMETERS Total:   77.00   Vendor: JENSEN, TED  JENSEN, TED  03792  08/21/2023  Micro Screen Wedge Wire  510‐32‐5375  242.00 Vendor JENSEN, TED Total:   242.00   Vendor: JG UNIFORMS INC  JG UNIFORMS INC    118924    08/21/2023    Vest Covers    100‐22‐6110    483.05 Vendor JG UNIFORMS INC Total:   483.05   Vendor: KIMBALL MIDWEST  KIMBALL MIDWEST    101301163    08/21/2023    kimball stock (101301163)    100‐33‐5370    314.07 KIMBALL MIDWEST    9101277422    08/21/2023    kimball stock( 9101277422)    100‐33‐5370    341.83 Vendor KIMBALL MIDWEST Total:   655.90   Vendor: KOMLINE‐SANDERSON  KOMLINE‐SANDERSON    42057462    08/21/2023    Vapor Power Pump Repair Kit    510‐32‐5375    7,305.17 Vendor KOMLINE‐SANDERSON Total:   7,305.17   Vendor: LOCKER'S FLOWERS  LOCKER'S FLOWERS  1202  08/21/2023  Dance ‐ Recital Flowers  100‐46‐6110  10.00 Vendor LOCKER'S FLOWERS Total:   10.00   Vendor: MAD BOMBER FIREWORKS  MAD BOMBER FIREWORKS  2888  08/21/2023  Fiesta Days Fireworks  100‐41‐6920  23,000.00 Vendor MAD BOMBER FIREWORKS Total:   23,000.00   Vendor: MAPLE CONSTRUCTION INC  MAPLE CONSTRUCTION INC    7822    08/21/2023    1311 Meadow ‐ Bore for water    510‐31‐6110    2,300.00 Vendor MAPLE CONSTRUCTION INC Total:   2,300.00   Vendor: MARENGO MATERIALS  MARENGO MATERIALS    5213M    08/21/2023    Creek Baskets #5213M    100‐33‐6110    2,548.98 Vendor MARENGO MATERIALS Total: 2,548.98   Vendor: MARKS TREE SERVICE & SNOW PLOWING CORP  MARKS TREE SERVICE & SNOW    8‐4‐23    08/21/2023    Tree removal    100‐45‐5110    1,500.00 Vendor MARKS TREE SERVICE & SNOW PLOWING CORP Total: 1,500.00   Vendor: MCCANN INDUSTRIES INC  MCCANN INDUSTRIES INC    P43854    08/21/2023    810 (p43854)    510‐35‐5370    2,703.54 MCCANN INDUSTRIES INC  P44104  08/21/2023  ADA panels, Expansion joint  100‐33‐6110  9,860.06 MCCANN INDUSTRIES INC    P44443    08/21/2023    Stakes and saw blade #P44443    100‐33‐6110    584.85 Vendor MCCANN INDUSTRIES INC Total: 13,148.45   Vendor: MCMASTER‐CARR SUPPLY CO  MCMASTER‐CARR SUPPLY CO  INV#11722693  08/21/2023  Aerator #2 Hardware   510‐32‐5375  183.82 Vendor MCMASTER‐CARR SUPPLY CO Total:   183.82       8/16/2023 2:09:21 PM   105 Expense Approval Register Packet: APPKT02767 ‐ 8‐21‐23 RECT INV   Vendor Name    Payable Number    Post Date    Description (Item)    Account Number    Amount   Vendor: MEADE INC  MEADE INC    705563    08/21/2023    Traffic Signal Locate    100‐33‐5110    92.02 Vendor MEADE INC Total:   92.02   Vendor: MENDEZ LANDSCAPING & BRICK PAVERS INC  MENDEZ LANDSCAPING &    14902    08/21/2023    Splash Pad Landscaping    280‐41‐8800    4,600.00 MENDEZ LANDSCAPING &    15293    08/21/2023    Contractual Landscaping    100‐45‐5110    3,750.00 MENDEZ LANDSCAPING &  15468  08/21/2023  Monthly landscaping  400‐00‐5110  475.00 Vendor MENDEZ LANDSCAPING & BRICK PAVERS INC Total:   8,825.00   Vendor: MIDWEST HOSE AND FITTINGS INC  MIDWEST HOSE AND FITTINGS    227961    08/21/2023    Hose for wash bay #227961    100‐33‐6115    19.99 MIDWEST HOSE AND FITTINGS  228194  08/21/2023  shop supplies  100‐45‐6110  174.39 MIDWEST HOSE AND FITTINGS  228247  08/21/2023  shop supplies  100‐45‐6110  46.87 Vendor MIDWEST HOSE AND FITTINGS INC Total: 241.25   Vendor: MOBILE HEALTH SOLUTIONS CORP  MOBILE HEALTH SOLUTIONS  29523  08/21/2023  Post Accident Drug/Alcohol  610‐00‐6940  230.00 Vendor MOBILE HEALTH SOLUTIONS CORP Total:   230.00   Vendor: NCL OF WISCONSIN INC  NCL OF WISCONSIN INC    490478    08/21/2023    Lab Supplies    510‐32‐6110    819.29 Vendor NCL OF WISCONSIN INC Total:   819.29   Vendor: NORTH EAST MULTI‐REGIONAL TRAINING INC  NORTH EAST MULTI‐REGIONAL    331558    08/21/2023    Cyber Bullying class ‐ Ellis ‐    100‐22‐5430    160.00 Vendor NORTH EAST MULTI‐REGIONAL TRAINING INC Total: 160.00   Vendor: PACE ANALYTICAL SERVICES, LLC  PACE ANALYTICAL SERVICES,    I9563325    08/21/2023    Pace Monthly    510‐31‐5110    452.80 Vendor PACE ANALYTICAL SERVICES, LLC Total: 452.80   Vendor: PETROCHOICE LLC  PETROCHOICE LLC    51267131    08/21/2023    51267131    100‐03‐6250    223.79 PETROCHOICE LLC    51272965    08/21/2023    51272965    100‐03‐6250    127.92 PETROCHOICE LLC    51275585    08/21/2023    Regionl/SWWTP Generator    510‐32‐6250    1,084.58 PETROCHOICE LLC    51275586    08/21/2023    SWWTP Bulk Storage Tank Fuel    510‐32‐6250    1,946.35 PETROCHOICE LLC  51278858  08/21/2023  Fuel ‐ UTY ‐ 51278858  510‐35‐6250  502.93 PETROCHOICE LLC  51278868  08/21/2023  Fuel ‐ WW ‐ 51278868  510‐32‐6250  505.50 PETROCHOICE LLC    51278872    08/21/2023    Fuel ‐ 51278872    100‐22‐6250    2,535.38 PETROCHOICE LLC    51283937    08/21/2023    Fuel ‐ UTY ‐ 51283937    510‐35‐6250    322.58 PETROCHOICE LLC    51283947    08/21/2023    Fuel ‐ WW ‐ 51283947    510‐32‐6250    746.78 PETROCHOICE LLC  51283948  08/21/2023  Fuel ‐ WTR ‐ 51283948  510‐31‐6250  116.15 PETROCHOICE LLC    51283950    08/21/2023    Fuel ‐ STS ‐ 51283950    100‐33‐6250    318.42 PETROCHOICE LLC    51283951    08/21/2023    Fuel ‐ 51283951    100‐22‐6250    2,018.58 PETROCHOICE LLC    51291810    08/21/2023    Fuel ‐ UTY ‐ 51291810    510‐35‐6250    352.80 PETROCHOICE LLC  51291820  08/21/2023  51291820  100‐03‐6250  227.84 PETROCHOICE LLC    51291821    08/21/2023    Fuel ‐ WW ‐ 51291821    510‐32‐6250    628.96 PETROCHOICE LLC    51291822    08/21/2023    Fuel ‐ WTR ‐ 51291822    510‐31‐6250    137.35 PETROCHOICE LLC    51291823    08/21/2023    fuel    100‐45‐6250    687.17 PETROCHOICE LLC    51291824    08/21/2023    Fuel ‐ STS ‐ 51291824    100‐33‐6250    1,757.44 Vendor PETROCHOICE LLC Total:   14,240.52   Vendor: PETTIBONE & CO, P F  PETTIBONE & CO, P F    184253    08/21/2023    Wallets    100‐22‐6210    110.75 Vendor PETTIBONE & CO, P F Total:   110.75   Vendor: PITEL SEPTIC INC  PITEL SEPTIC INC    24446    08/21/2023    Park bathroom rentals    100‐45‐5110    800.00 PITEL SEPTIC INC    24508    08/21/2023    Park bathroom rentals    100‐45‐5110    800.00 Vendor PITEL SEPTIC INC Total:   1,600.00   Vendor: PROSAFETY INC  PROSAFETY INC    #2/896720    08/21/2023    Spray paint,Hard hats, Ear plugs    100‐33‐6110    882.80 Vendor PROSAFETY INC Total: 882.80       8/16/2023 2:09:21 PM   106 Expense Approval Register Packet: APPKT02767 ‐ 8‐21‐23 RECT INV   Vendor Name    Payable Number    Post Date    Description (Item)    Account Number    Amount   Vendor: QUBIT NETWORKS  QUBIT NETWORKS    12954    08/21/2023    Extreme Network Rack Mounts    620‐00‐6270    70.40 Vendor QUBIT NETWORKS Total:   70.40   Vendor: R DOUBLE J RANCH  R DOUBLE J RANCH    1154    08/21/2023    Invoice 1154    100‐47‐5110    825.00 Vendor R DOUBLE J RANCH Total:   825.00   Vendor: ROCK 'N' KIDS INC  ROCK 'N' KIDS INC    MCHSUII23    08/21/2023    Cont ‐ Rock 'n' Kids    100‐46‐5110    578.00 Vendor ROCK 'N' KIDS INC Total: 578.00   Vendor: RUSSO POWER EQUIPMENT  RUSSO POWER EQUIPMENT  SPI20348297  08/21/2023  163   spi20348297  100‐45‐5370  119.98 Vendor RUSSO POWER EQUIPMENT Total:   119.98   Vendor: SANTO SPORT STORE  SANTO SPORT STORE    709625    08/21/2023    Softballs for adult league    100‐47‐6110    1,662.70 Vendor SANTO SPORT STORE Total:   1,662.70   Vendor: SITEONE LANDSCAPE SUPPLY, LLC  SITEONE LANDSCAPE SUPPLY,    133397226‐001    08/21/2023    sho supplies    100‐45‐6110    181.67 Vendor SITEONE LANDSCAPE SUPPLY, LLC Total:   181.67   Vendor: SNAPOLOGY OF MCHENRY  SNAPOLOGY OF MCHENRY    1237    08/21/2023    Cont ‐ Snapology Invoice 1237    100‐46‐5110    158.40 SNAPOLOGY OF MCHENRY    1238    08/21/2023    Cont ‐ Snapology Invoice 1238    100‐46‐5110    176.00 SNAPOLOGY OF MCHENRY    1240    08/21/2023    Cont ‐ Snapology Invoice 1240    100‐46‐5110    145.60 SNAPOLOGY OF MCHENRY  1241  08/21/2023  Snapology ‐ Birthday Part  400‐00‐5225  150.00 SNAPOLOGY OF MCHENRY    1242    08/21/2023    Cont ‐ Snapology Invoice 1242    400‐00‐5225    150.00 SNAPOLOGY OF MCHENRY    1252    08/21/2023    Cont ‐ Snapology Invoice 1252    100‐46‐5110    105.60 SNAPOLOGY OF MCHENRY    1253    08/21/2023    Cont ‐ Snapology Invoice 1253    100‐46‐5110    140.80 Vendor SNAPOLOGY OF MCHENRY Total:   1,026.40   Vendor: SNAP‐ON INDUSTRIAL  SNAP‐ON INDUSTRIAL    57964139    08/21/2023    shop (57964139)    100‐33‐5370    94.67 Vendor SNAP‐ON INDUSTRIAL Total:   94.67   Vendor: SUNNYSIDE COMPANY  SUNNYSIDE COMPANY  114306  08/21/2023  324 (114306)  100‐22‐5370  399.60 SUNNYSIDE COMPANY    114361    08/21/2023    324 (114361)    100‐22‐5370    35.18 Vendor SUNNYSIDE COMPANY Total: 434.78   Vendor: SZKLARZEWSKI, KAYLEE  SZKLARZEWSKI, KAYLEE    1223‐464    08/21/2023    Instructor Golf Fee Summer    100‐47‐5110    800.00 Vendor SZKLARZEWSKI, KAYLEE Total:   800.00   Vendor: THELEN MATERIALS LLC  THELEN MATERIALS LLC  33950  08/21/2023  Park Supplies: Fox Ridge Park  100‐45‐6110  1,071.70 Vendor THELEN MATERIALS LLC Total:   1,071.70   Vendor: THOMPSON ELEVATOR INSPECTION SERV INC  THOMPSON ELEVATOR    23‐1869    08/21/2023    1415 Industrial ‐ Lift Inspection    100‐33‐5115    185.00 Vendor THOMPSON ELEVATOR INSPECTION SERV INC Total:   185.00   Vendor: TODAY'S UNIFORMS  TODAY'S UNIFORMS    239817    08/16/2023    Uniform Order ‐ Klasek    100‐22‐4510    57.95 TODAY'S UNIFORMS    238491    08/21/2023    Uniform Order ‐ Carey    100‐22‐4510    7.90 TODAY'S UNIFORMS    238687    08/21/2023    Uniform Order ‐ Carey    100‐22‐4510    27.95 TODAY'S UNIFORMS    238688    08/21/2023    Uniform Order ‐ Noyes    100‐22‐4510    78.95 TODAY'S UNIFORMS    238999    08/21/2023    Uniform Order ‐ Klasek    100‐22‐4510    55.95 TODAY'S UNIFORMS    239036    08/21/2023    Uniform Order ‐ O'Herron    100‐22‐4510    161.90 TODAY'S UNIFORMS    239426    08/21/2023    Uniform Order ‐ Diebold    100‐22‐4510    205.90 TODAY'S UNIFORMS  239442  08/21/2023  Uniform Order ‐ Klasek  100‐22‐4510  225.90 TODAY'S UNIFORMS  239582  08/21/2023  Uniform Order ‐ Lincicum  100‐22‐4510  151.90 TODAY'S UNIFORMS    239610    08/21/2023    Uniform Order ‐ Martinez    100‐22‐4510    75.95 TODAY'S UNIFORMS    239690    08/21/2023    Uniform Order ‐ Voelker    100‐22‐4510    69.95 TODAY'S UNIFORMS  239691  08/21/2023  Uniform Order ‐ Clesen  100‐22‐4510  75.95     8/16/2023 2:09:21 PM   107 Expense Approval Register Packet: APPKT02767 ‐ 8‐21‐23 RECT INV   Vendor Name    Payable Number    Post Date    Description (Item)    Account Number    Amount   TODAY'S UNIFORMS    239794    08/21/2023    Uniform Order ‐ Ehardt    100‐22‐4510    113.90 TODAY'S UNIFORMS    239795    08/21/2023    Uniform Order ‐ Martinez    100‐22‐4510    56.95 TODAY'S UNIFORMS  239796  08/21/2023  Uniform Order ‐ Carey  100‐22‐4510  105.90 TODAY'S UNIFORMS    239814    08/21/2023    Uniform Order ‐ Carey    100‐22‐4510    52.95 TODAY'S UNIFORMS    239815    08/21/2023    Uniform Order ‐ Klasek    100‐22‐4510    56.95 TODAY'S UNIFORMS    239816    08/21/2023    Uniform Order ‐ Rewiako    100‐22‐4510    113.90 TODAY'S UNIFORMS    240185    08/21/2023    Uniform Order ‐ Landwehr    100‐23‐4510    29.95 TODAY'S UNIFORMS  240186  08/21/2023  Uniform Order ‐ Cvitkovic  100‐23‐4510  29.95 TODAY'S UNIFORMS    240230    08/21/2023    Uniform Order ‐ Harris    100‐22‐4510    39.95 TODAY'S UNIFORMS    240231    08/21/2023    Uniform Order ‐ Harris    100‐22‐4510    243.80 TODAY'S UNIFORMS  240306  08/21/2023  Patches  100‐22‐6110  990.00 TODAY'S UNIFORMS  240321  08/21/2023  Uniform Order ‐ Cruz  100‐22‐4510  75.95 TODAY'S UNIFORMS    240377    08/21/2023    Uniform Order ‐ Cruz    100‐22‐4510    115.90 TODAY'S UNIFORMS    240621    08/21/2023    Uniform Order ‐ Cvitkovic    100‐23‐4510    145.85 TODAY'S UNIFORMS    240622    08/21/2023    Uniform Order ‐ Landwehr    100‐23‐4510    145.85 TODAY'S UNIFORMS  240673  08/21/2023  Uniform Order ‐ Campos  100‐22‐4510  115.95 TODAY'S UNIFORMS    240734    08/21/2023    Uniform Order ‐ Aalto    100‐22‐4510    75.00 TODAY'S UNIFORMS    240796    08/21/2023    Uniform Order ‐ Cvitkovic    100‐23‐4510    462.65 TODAY'S UNIFORMS    240797    08/21/2023    Uniform Order ‐ Landwehr    100‐23‐4510    648.50 TODAY'S UNIFORMS    240798    08/21/2023    Uniform Order ‐ Pardue    100‐22‐4510    167.85 TODAY'S UNIFORMS  240841  08/21/2023  Uniform Order ‐ Pardue  100‐22‐4510  227.85 TODAY'S UNIFORMS    240842    08/21/2023    Uniform Order ‐ Harris    100‐22‐4510    151.90 TODAY'S UNIFORMS    240853    08/21/2023    Uniform Order ‐ Walsh    100‐22‐4510    139.90 TODAY'S UNIFORMS    240919    08/21/2023    Uniform Order ‐ Pardue    100‐22‐4510    55.95 TODAY'S UNIFORMS  240956  08/21/2023  Uniform Order ‐ Campos  100‐22‐4510  55.95 TODAY'S UNIFORMS    241150    08/21/2023    Uniform Order ‐ Aalto    100‐22‐4510    167.85 TODAY'S UNIFORMS    241151    08/21/2023    Uniform Order ‐ Funk    100‐22‐4510    57.95 Vendor TODAY'S UNIFORMS Total:   5,841.20   Vendor: TRAFFIC CONTROL & PROTECTION INC  TRAFFIC CONTROL &    115459    08/21/2023    Sign Post for McCullom Lake    610‐00‐5980    328.30 TRAFFIC CONTROL &    115460    08/21/2023    Sign post for Curran Road    610‐00‐5980    328.30 Vendor TRAFFIC CONTROL & PROTECTION INC Total:   656.60   Vendor: ULINE  ULINE  165845345  08/21/2023  Shop Safety Supplies   510‐32‐6110  1,883.90 Vendor ULINE Total:   1,883.90   Vendor: US JAIL SUPPLY  US JAIL SUPPLY  3755  08/21/2023  Cell pillows  100‐22‐6110  72.95 Vendor US JAIL SUPPLY Total:   72.95   Vendor: USA BLUEBOOK  USA BLUEBOOK    INV00086268    08/21/2023    Cl2 analyzer INV00086268    510‐31‐6110    2,183.55 Vendor USA BLUEBOOK Total:   2,183.55   Vendor: VERIZON CONNECT FLEET USA LLC  VERIZON CONNECT FLEET USA    609000043354    08/21/2023    GPS For PW Vehicle Fleet    620‐00‐5110    952.30 Vendor VERIZON CONNECT FLEET USA LLC Total: 952.30   Vendor: VICTOR FORD, INC  VICTOR FORD, INC    172162    08/21/2023    321 (172162)    100‐22‐5370    49.46 VICTOR FORD, INC    172189/169576CR    08/21/2023    322 (172189)    100‐22‐5370    135.18 Vendor VICTOR FORD, INC Total:   184.64   Vendor: WATER PRODUCTS ‐ AURORA  WATER PRODUCTS ‐ AURORA  0317459  08/21/2023  3/4 Curb Stops #0317459  510‐31‐6110  496.84 Vendor WATER PRODUCTS ‐ AURORA Total:   496.84   Vendor: ZARNOTH BRUSH WORKS INC  ZARNOTH BRUSH WORKS INC    194825‐IN    08/21/2023    441 (194825)    100‐33‐5370    436.00 Vendor ZARNOTH BRUSH WORKS INC Total:   436.00        Grand Total: 233,439.42     8/16/2023 2:09:21 PM   108 Expense Approval Register Packet: APPKT02767 ‐ 8‐21‐23 RECT INV     Fund Summary      Fund    Expense Amount     100 ‐ GENERAL FUND    113,271.63     280 ‐ DEVELOPER DONATION FUND  9,132.06    400 ‐ RECREATION CENTER FUND    2,049.12     510 ‐ WATER/SEWER FUND    58,815.01     610 ‐ RISK MANAGEMENT FUND    886.60     620 ‐ INFORMATION TECHNOLOGY FUND    49,285.00     Grand Total:   233,439.42                             8/16/2023 2:09:21 PM     109 AS NEEDED CHECKS CITY COUNCIL MEETING 8-21-2023 620 620-00-6270 AMAZON CAPITAL SERVICES 07/07/2023 79.18 100 100-42-6110 AMAZON CAPITAL SERVICES 07/07/2023 1545.54 100 100-43-6110 AMAZON CAPITAL SERVICES 07/07/2023 270.87 100 100-44-6110 AMAZON CAPITAL SERVICES 07/07/2023 333.93 100 100-47-6110 AMAZON CAPITAL SERVICES 07/07/2023 72.71 100 100-22-6210 AMAZON CAPITAL SERVICES 07/07/2023 43.49 100 100-22-6110 AMAZON CAPITAL SERVICES 07/07/2023 13.98 100 100-22-6210 AMAZON CAPITAL SERVICES 07/07/2023 165.33 620 620-00-6270 AMAZON CAPITAL SERVICES 07/07/2023 75.93 100 100-03-6110 AMAZON CAPITAL SERVICES 07/07/2023 91.01 100 100-42-6110 AMAZON CAPITAL SERVICES 07/07/2023 106.9 100 100-45-6110 AMAZON CAPITAL SERVICES 07/07/2023 52.98 100 100-41-6210 AMAZON CAPITAL SERVICES 07/07/2023 28.49 400 400-40-6110 AMAZON CAPITAL SERVICES 07/07/2023 49.98 620 620-00-6270 AMAZON CAPITAL SERVICES 07/07/2023 1049.87 100 100-22-6210 AMAZON CAPITAL SERVICES 07/07/2023 13.86 100 100-46-6112 AMAZON CAPITAL SERVICES 07/07/2023 467.59 100 100-46-5110 FIRESIDE THEATRE, THE 07/07/2023 2232.91 100 100-33-5115 GARAVENTA USA INC ANTIOCH 07/07/2023 885 620 620-00-5110 HEARTLAND BUSINESS SYSTEMS, LLC 07/07/2023 4372.5 100 100-2200 MEJIA-AGUILAR, RUBEN 07/07/2023 126.43 100 100-42-5110 MUNDELEIN MUSTANG SWIM CLUB 07/07/2023 30 100 100-22-5370 NAPA AUTO PARTS MPEC 07/07/2023 956 100 100-33-5370 NAPA AUTO PARTS MPEC 07/07/2023 1174.43 100 100-33-6115 NAPA AUTO PARTS MPEC 07/07/2023 382.94 100 100-45-5370 NAPA AUTO PARTS MPEC 07/07/2023 357.64 100 100-45-6110 NAPA AUTO PARTS MPEC 07/07/2023 22.19 510 510-32-5375 NAPA AUTO PARTS MPEC 07/07/2023 38.59 510 510-32-5380 NAPA AUTO PARTS MPEC 07/07/2023 59.78 510 510-32-6110 NAPA AUTO PARTS MPEC 07/07/2023 109.78 100 100-42-5510 NICOR GAS 07/07/2023 195.17 100 100-43-5510 NICOR GAS 07/07/2023 79.21 100 100-45-5510 NICOR GAS 07/07/2023 232.89 100 100-46-5510 NICOR GAS 07/07/2023 32.83 400 400-00-5510 NICOR GAS 07/07/2023 338.86 510 510-31-5510 NICOR GAS 07/07/2023 513.17 510 510-32-5510 NICOR GAS 07/07/2023 7359.96 510 510-35-4510 RED WING BUSINESS ADVANTAGE 07/07/2023 228.79 100 100-45-4510 RED WING BUSINESS ADVANTAGE 07/07/2023 219.99 100 100-45-4510 RED WING BUSINESS ADVANTAGE 07/07/2023 180 100 100-33-4510 RED WING BUSINESS ADVANTAGE 07/07/2023 246.39 510 510-32-4510 RED WING BUSINESS ADVANTAGE 07/07/2023 225 510 510-35-4510 RED WING BUSINESS ADVANTAGE 07/07/2023 219.99 510 510-35-4510 RED WING BUSINESS ADVANTAGE 07/07/2023 206.79 100 100-01-6940 SECRETARY OF STATE 07/07/2023 346 100 100-03-6210 STAPLES BUSINESS CREDIT 07/07/2023 291.26 100 100-04-6210 STAPLES BUSINESS CREDIT 07/07/2023 253.94 100 100-22-6210 STAPLES BUSINESS CREDIT 07/07/2023 192.36 100 100-01-6210 STAPLES BUSINESS CREDIT 07/07/2023 346.82 100 100-22-6210 STAPLES BUSINESS CREDIT 07/07/2023 133.47 100 100-23-5310 UPS 07/07/2023 32.8 100 100-33-6110 WELCH BROS INC 07/07/2023 846 620 620-00-5110 ZOHO CORPORATION 07/07/2023 14490 100 100-22-6210 ACE HARDWARE 07/14/2023 76.16 100 100-33-5370 ACE HARDWARE 07/14/2023 92.68 100 100-33-6110 ACE HARDWARE 07/14/2023 340.27 110 100 100-42-6110 ACE HARDWARE 07/14/2023 354.86 100 100-43-6110 ACE HARDWARE 07/14/2023 129.43 100 100-44-6110 ACE HARDWARE 07/14/2023 5.38 100 100-45-6110 ACE HARDWARE 07/14/2023 497.29 510 510-31-6110 ACE HARDWARE 07/14/2023 166.11 510 510-32-5380 ACE HARDWARE 07/14/2023 31.37 510 510-32-6110 ACE HARDWARE 07/14/2023 317.05 100 100-41-6210 AMAZON CAPITAL SERVICES 07/14/2023 26.99 400 400-00-6111 AMAZON CAPITAL SERVICES 07/14/2023 34.3 620 620-00-5110 AT&T 07/14/2023 821.9 100 100-03-5120 CABAY & COMPANY INC 07/14/2023 233.68 620 620-00-5110 COMCAST CABLE 07/14/2023 178.4 100 100-06-5110 GURDA, ART 07/14/2023 5000 100 100-03-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 1155.51 100 100-22-6210 HOME DEPOT CREDIT SERVICES 07/14/2023 12.98 100 100-33-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 66.83 100 100-41-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 691.61 100 100-42-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 418.84 100 100-45-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 1015.69 400 400-00-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 140.96 510 510-32-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 75.88 510 510-31-5110 MARK 1 LANDSCAPE, INC 07/14/2023 240.16 510 510-32-5110 MARK 1 LANDSCAPE, INC 07/14/2023 182.4 100 100-33-5110 MARK 1 LANDSCAPE, INC 07/14/2023 950.76 100 100-33-5110 MARK 1 LANDSCAPE, INC 07/14/2023 550 100 100-45-5110 MARK 1 LANDSCAPE, INC 07/14/2023 6596.42 100 100-22-5320 MOTOROLA 07/14/2023 3277 620 620-00-5110 REVIZE LLC 07/14/2023 4233 100 100-41-6110 SAM'S CLUB 07/14/2023 170.63 100 100-46-6110 SAM'S CLUB 07/14/2023 44.24 100 100-46-6112 SAM'S CLUB 07/14/2023 33.57 100 100-46-6920 SAM'S CLUB 07/14/2023 151.52 400 400-00-6110 SAM'S CLUB 07/14/2023 72.68 100 100-46-5110 SNAPOLOGY OF MCHENRY 07/14/2023 600 100 100-22-6210 ACE HARDWARE 07/14/2023 76.16 100 100-33-5370 ACE HARDWARE 07/14/2023 92.68 100 100-33-6110 ACE HARDWARE 07/14/2023 340.27 100 100-42-6110 ACE HARDWARE 07/14/2023 354.86 100 100-43-6110 ACE HARDWARE 07/14/2023 129.43 100 100-44-6110 ACE HARDWARE 07/14/2023 5.38 100 100-45-6110 ACE HARDWARE 07/14/2023 497.29 510 510-31-6110 ACE HARDWARE 07/14/2023 166.11 510 510-32-5380 ACE HARDWARE 07/14/2023 31.37 510 510-32-6110 ACE HARDWARE 07/14/2023 317.05 100 100-41-6210 AMAZON CAPITAL SERVICES 07/14/2023 26.99 400 400-00-6111 AMAZON CAPITAL SERVICES 07/14/2023 34.3 620 620-00-5110 AT&T 07/14/2023 821.9 100 100-03-5120 CABAY & COMPANY INC 07/14/2023 233.68 620 620-00-5110 COMCAST CABLE 07/14/2023 178.4 100 100-06-5110 GURDA, ART 07/14/2023 5000 100 100-03-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 1155.51 100 100-22-6210 HOME DEPOT CREDIT SERVICES 07/14/2023 12.98 100 100-33-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 66.83 100 100-41-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 691.61 100 100-42-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 418.84 100 100-45-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 1015.69 400 400-00-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 140.96 510 510-32-6110 HOME DEPOT CREDIT SERVICES 07/14/2023 75.88 111 510 510-31-5110 MARK 1 LANDSCAPE, INC 07/14/2023 240.16 510 510-32-5110 MARK 1 LANDSCAPE, INC 07/14/2023 182.4 100 100-33-5110 MARK 1 LANDSCAPE, INC 07/14/2023 950.76 100 100-33-5110 MARK 1 LANDSCAPE, INC 07/14/2023 550 100 100-45-5110 MARK 1 LANDSCAPE, INC 07/14/2023 6596.42 100 100-22-5320 MOTOROLA 07/14/2023 3277 620 620-00-5110 REVIZE LLC 07/14/2023 4233 100 100-41-6110 SAM'S CLUB 07/14/2023 170.63 100 100-46-6110 SAM'S CLUB 07/14/2023 44.24 100 100-46-6112 SAM'S CLUB 07/14/2023 33.57 100 100-46-6920 SAM'S CLUB 07/14/2023 151.52 400 400-00-6110 SAM'S CLUB 07/14/2023 72.68 100 100-46-5110 SNAPOLOGY OF MCHENRY 07/14/2023 600 100 100-01-6940 BANKCARD PROCESSING CENTER 07/24/2023 7.47 100 100-06-5110 BANKCARD PROCESSING CENTER 07/24/2023 1000 100 100-06-5420 BANKCARD PROCESSING CENTER 07/24/2023 49.61 100 100-22-5370 BANKCARD PROCESSING CENTER 07/24/2023 8 100 100-22-5420 BANKCARD PROCESSING CENTER 07/24/2023 539.86 100 100-22-6210 BANKCARD PROCESSING CENTER 07/24/2023 124.61 400 400-00-6130 CINTAS 07/24/2023 197.33 100 100-45-5110 CINTAS 07/24/2023 71.36 100 100-33-5370 ED'S AUTOMOTIVE/JIM'S MUFFLER SHOP07/24/2023 339.5 510 510-35-5370 ED'S AUTOMOTIVE/JIM'S MUFFLER SHOP07/24/2023 99.5 510 510-31-5410 FIRST BANKCARD 07/24/2023 150 100 100-03-5370 FIRST BANKCARD 07/24/2023 114.75 100 100-22-5370 FIRST BANKCARD 07/24/2023 204.8 100 100-22-5420 FIRST BANKCARD 07/24/2023 127.33 100 100-22-6210 FIRST BANKCARD 07/24/2023 14 100 100-22-6250 FIRST BANKCARD 07/24/2023 148.66 100 100-33-6110 FIRST BANKCARD 07/24/2023 3496.48 100 100-41-5330 FIRST BANKCARD 07/24/2023 80 100 100-41-6110 FIRST BANKCARD 07/24/2023 364.2 100 100-41-6250 FIRST BANKCARD 07/24/2023 170 100 100-42-5430 FIRST BANKCARD 07/24/2023 724 100 100-42-6110 FIRST BANKCARD 07/24/2023 6 100 100-43-6110 FIRST BANKCARD 07/24/2023 1086.5 100 100-44-6110 FIRST BANKCARD 07/24/2023 281.54 100 100-44-6110 FIRST BANKCARD 07/24/2023 1045.7 100 100-45-6110 FIRST BANKCARD 07/24/2023 1897.38 100 100-46-5110 FIRST BANKCARD 07/24/2023 14.76 100 100-46-5430 FIRST BANKCARD 07/24/2023 342 100 100-46-6110 FIRST BANKCARD 07/24/2023 113.09 100 100-46-6112 FIRST BANKCARD 07/24/2023 5663.55 100 100-47-5430 FIRST BANKCARD 07/24/2023 261 100 100-47-6110 FIRST BANKCARD 07/24/2023 2974.56 400 400-00-5321 FIRST BANKCARD 07/24/2023 264.78 400 400-00-5430 FIRST BANKCARD 07/24/2023 171 400 400-00-6110 FIRST BANKCARD 07/24/2023 48.28 400 400-00-6111 FIRST BANKCARD 07/24/2023 5.84 400 400-40-5110 FIRST BANKCARD 07/24/2023 718 400 400-40-6110 FIRST BANKCARD 07/24/2023 1765.99 620 620-00-5110 FIRST BANKCARD 07/24/2023 4922.98 100 100-03-6110 HOME DEPOT PRO 07/24/2023 133.03 100 100-46-6112 PURICH, CHRISTINE 07/24/2023 750 100 100-03-6110 SHERWIN-WILLIAMS CO, THE 07/24/2023 92.09 100 100-03-6110 SHERWIN-WILLIAMS CO, THE 07/24/2023 68.38 100 100-46-5110 YOUNG REMBRANDTS - MCHENRY & NO 07/24/2023 600 510 510-31-6110 BAKER & SON CO, PETER 07/28/2023 290 112 100 100-33-6110 BAKER & SON CO, PETER 07/28/2023 30.16 100 100-03-5120 C&S FABRICATION SERVICES, INC 07/28/2023 2200 610 610-00-5980 CAREY ELECTRIC 07/28/2023 15603 620 620-00-5110 DACRA TECH LLC 07/28/2023 15 100 100-03-5110 DAHLIN, M, PC 07/28/2023 99.75 100 100-22-5110 DAHLIN, M, PC 07/28/2023 897.75 620 620-00-5110 GORDON FLESCH COMPANY INC, 07/28/2023 385.8 100 100-22-5110 ILLINOIS TOLLWAY 07/28/2023 122.36 100 100-06-5110 IMPRESSIVE IMAGES 07/28/2023 193 100 100-01-6110 IMPRESSIVE IMAGES 07/28/2023 561.54 5510 510-32-5375 KOMLINE-SANDERSON 07/28/2023 5592.14 510 510-32-5375 KOMLINE-SANDERSON 07/28/2023 4815 100 100-41-5310 POSTMASTER MCHENRY IL 07/28/2023 1650 100 100-01-6940 SECRETARY OF STATE / DEPT OF POLIC07/28/2023 151 100 100-22-5310 UPS 07/28/2023 24.01 510 510-32-5580 WINNEBAGO LANDFILL CO 07/28/2023 382 100 100-00-3890 MCHENRY COUNTY CIRCUIT CLERK 07/31/2023 750 TOTAL: 165415.04 113 City of McHenry 333 S Gre en Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 www.cityofmchenry.org 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. AGENDA ITEM DATE: August 21, 2023 TO: City Council RE: Lighthouse Wines AGENDA ITEM SUMMARY: A liquor license application has been submitted by Lighthouse Wines to open a winery for tastings and to take bottles of wine to go. The business would be located in the basement of 1402 Riverside Drive, which is the former Corkscrew Pointe/Grinders Ale House location. The business would need a Class A license so that they can serve the wine and also sell it as packaged liquor. The applicant met with Ma yor Jett and Chief Birk to go over the business plans and discuss concerns that the C ity might have, and Staff is on board with this business model. Background checks have been completed and both owne rs passed and are ready for approval. RECOMMENDATION: A motion be made approve a Class A liquor license to L ighthouse Wines at 1402 Riverside Drive, Unit 101, McHenry IL; and of approved, to pass an or dinance amending Title 4, Chapter 2, Alcoholic Liquor, Section 6, Limitation on Number of Licenses 114 LighthouseWinesislocatedat1402 RiversideDriveMcHenry. It’sonthe Riverwalk. WefocusonproducingwinesmadewithMcHenryCounty fruit. Those winesarecherry, raspberry, blueberry, strawberry, peach, pear, apple, rhubarb, blackraspberry, andConcord grape. We alsomakemeadwinefromlocal honey. Wewillbeoering CaliforniavarietalsproducedfromjuicesuchasCabernet Sauvignon, Pinot Grigio, andSauvignon Blanc. Wewillproduceabout400 gallonsofwine ourrstyear, orabout2,000bo?les. Weplanonhaving visitorstoourwinery fortas?ngs, sowewillbeapplying fora packageliquor" license alongwiththeregularLiquorLicense. Wewillalsobe doingmuchofour salesandpromo?onthroughositetas?ngssuch asfarmer’s markets, winewalks, musicinthepark, etc. Weplanonhavingweekendhours, andwe willbehos?ngwinemakingclassesmid-weekonceeverytwomonths. LighthouseWinesisthe rstregisteredwineryinMcHenryCounty andwehopeto becometherstopera?ngwinerysolelywithinMcHenryCounty. We’revery proudandexcitedtohighlightMcHenryCountyasaviableareawherewinecan beproducedfrom localproduct! 115 4•-+4 McHenr License Classification Application Date* 5/21/2023 License Type* A Class"D"(Special EvenY'license has a separate application A B C E F G H License Classifications-Link to classifications list in the City Code New/Transfer* New Business Transfer of License Applicant Business Name of Business* Lighthouse Wines Name on License Name to appear on liquor license(if different than above). Lighthouse Wines LLC Address* 1402 Riverside Dr. McHenry, II. 60050 Phone* Email* Type of Business* Sole Proprietor Partnership LLC or Corporation Principal Business Type* Bar Restaurant Retail Store Hotel Gas Station Gaming Parlor Other Winery with tastings Video Gaming* Do you intend to apply for video gaming? No Yes A separate application will need to be filled out for video gaming. The issuance of a qualified liquor license in the City of McHenry does not guarantee that a video gaming license will be issued.116 State of Filing List state of filing for LLC,Corporation,Partnership and Sole Proprietor Illinois#09827234 Alcohol Sale Length How long has the business been in the business of selling alcohol?List date. No date, looking to open. Zoning What Zoning Classification is the business property? Commercial Business Location History Date Date on which the business opened or will open at the above Business Location 6/15/2023 Property Ownership Is the property at which the applicant business is located owned or lesed by the applicant? Owned Leased List the property owner information for the leased property. A copy of the property lease agreement must also be submitted. If the property is owned by a land trust,trustee must file affidavit disclosing names and addresses of all beneficial owners and percentage of interest. Person or Business Name Rob Salerno Address Phone Number Email Location Qualifications* Is the location of the applican'ts business for which the license is sought within one hundred feet of any church;schook.hospital.funeral home;home for aged or indigent persons or for veterands and their families or any military or naval station? No Yes Parking How many private property parking spaces are associated with the business location? 15-20 Business Agent An agent is the authorized representative of the Licensee who has supervisory authority over all employees of the license premises.An agent may be an owner, partner, member, or designated manager. Full Name* Kirk M. Donald Date of Birth* 117 Home Address* Street Address,City,Zip Phone* Citizenship* Birth Naturalization Email* Business History History* Have the applicant(s)(including all 5%or higher owners),corporation;LLC,or partnership ever engaged in the business or sale of alcoholic liquor at any other location? No Yes Business Licensing and Filing Identification ROT# ApplicanYs Retailer's Occupation tax(ROT)Registration Number 0982-7234 Delinquency* Has applicant been delinquent in the payment of the Retailer's Occupational Tax(Sales Tax)? No Yes Insurance List the name and address of dram shop insurance company along with the policy numbers for both the applicant business and owner of the building (if leased)in which the alcoholic liquor will be sold for the duration of the license. Insurance Company We will get this insurance through Elite Ins. Richmond, II. Insurance Company Address Policy Number Owner Insurance Company Owner Insurance Address Owner Policy Number Background Questionnaire 118 The following questions are in relation to the McHenry City Liquor Ordinance and Illinois law as it pertains to liquor licensing.All questions must be answered honestly. Failure to do so may disqualify you from the application process. Are you familiar with all the laws of the United States, State of Illinois and ordinances of the City of McHenry pertaining to the sale of alcoholic liquor;and will you abide by them? Yes No Will you maintain the entire premises in a safe,clean and sanitary manner free from conditions,which might cause accidents? Yes No Will you attempt to prevent rowdiness,fights and disorderly conduct of any kind and immediately notify the McHenry Police Department is any such events take place? Yes No Has any manufacturer, importing distributor or distributor of alcoholic liquors directly or indirectly paid or agreed to pay for this license, advanced money or anything else of value or any credit(other than merchandising credit in the ordinary course of business for a period not in excess of 90 days),or is such a person directly or indirectly interested in the ownership,conduct or operation of the place of business? Yes No Have any of the applicants, including all listed agents and partners who have a minimum of a 5%ownership in the business been convicted of any violation of any law pertaining to alcoholic liquors? Liquor Violations?* Yes No Felony/Misdemeanor?* Have any of the applicants,including all listed agents and partners who have a minimum of a 5%ownership in the business been convicted of a felony or misdemeanor? Yes No Will you and all your employees refuse to serve or sell alcoholic liquor to an intoxicated person or to a minor? Yes No Has any owner(s)or member(s)of a Partnership been issued a federal gaming devise stamp or a federal wagering stamp by the federal government for the current tax period? If a Corporation, has any officer, manager,or director thereof;or, any stockholder owning in the aggregate more than twenty(20)percent of the stock, been issued a federal wagering devise stamp or a federal wagering stamp by the federal government for the current tax period? Federal Gaming/Wagering Stamp* Yes No Have you,or any partner, or owner of 5%or more shares of the business or Agent,ever had a liquor license revoked or suspended? 119 Suspension* Yes No Liqour Suspension Information For a large number of suspensions,a separate document may be submitted in lieu of filling out the boxes below. Name Date and Location of Offense Is any individual who is directly or indirectly interested in applicanYs place of business, a law-enforcing official or elected public official(mayor,alderman,and member of any City commission,committee or board)? Official or Officer* Yes No Public Official or Officer Information Name Address Phone Have you ever been convicted of a gambling offense(if a partnership or corporation, include all partners,owners of 5%or more shares of the corporation and the local manager)? Gambling Offense Yes No Ownership Records A List of all owners, partners, stock holders and members must be listed below. In lieu of filling out multiple boxes, additional supporting paperwork may be submitted. Owner Information Name Wayne Smith Date of Birth Address Street Address,Clty,Zip Phone 120 Email Percentage of Ownership 50% Citizenship-Owner Birth Naturalization Name Kirk M. Donald Date of Birth Address Street Address,City,Zip Phone Email Percentage of Ownership 50% Citizenship-Owner Birth Naturalization File Upload Upload supporting documents,certificate of insurance,etc I,the undersigned,being first duly sworn,deposes and says that I(we), have read the above and foregoing Application,caused the answers to be provided thereto and all of the information given on said Application to be true and correct,and consent to investigation and background check by the Local Liquor Control Commissioner or his designee and agree to comply with all City Ordinances and the rules stated on this application. Signature of Authorized Agent of Corporation t r.r.rl Acknowledgement* I understand that checking this box constitutes a legal signature and confirms that I have filled out this form to the best of my ability. Date* 5/21/2023 121 ORDINANCE NO. 23- Amending Title 4, Chapter 2, Alcoholic Liquor, Section 6, License Classification and Fees; Approval Authority; Limitation on Number of Licenses 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. NOW, THEREFORE BE IT ORDAINED by the City Council of the City of McHenry, McHenry County, Illinois, as follows: SECTION 1: Section 4-2-6, subs ection D-1, of the Municipal Code relating to liquor license clas sifications , shall be amended as follows : D.1. Class A (Full Bar) License: Issuance of a Class A license shall authorize the sale of alcoholic liquor for consumption on the premises, and the retail sale of packaged liquor. The annual fee for such license s shall be one thousand five hundred dollars ($1,500.00). A Class A licensee shall be eligible to apply for a catering endorsement for an additional fee of three hundred dollars ($300.00), which shall permit the servic ing of alcoholic liquor for off -site consumption as an incidental part of food service, sold at a package price, as agreed upon under contract. Nonprofit organizations with a Class A license shall be eligible to pay a reduced fee of five hundred dollars ($500.00) per year to receive and mainta in a Class A license. No more than forty-nine (49) Class A licenses shall be in force in the City at any time. SECTION 2: If any section, paragraph, subdivision, clause, sentence or provision of this Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not effect, impair, invalidate or nullify the remainder thereof, which remainder shall remain and continue in full force and effect. SECTION 3: All ordinances, or parts thereof, in conflict herewith 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, Illinois. SECTION 5: This ordinance shall be in full force and effect from and after its passage, approval and publication, as provided by law. Passed this 21st day of August, 2023. Ayes Nays Absent Abstain Alderwoman Bassi _____ _____ _____ _____ Alderman Glab _____ _____ _____ _____ Alderman Koch _____ _____ _____ _____ Alderman McClatchey _____ _____ _____ _____ 122 Alderwoman Miller _____ _____ _____ _____ Alderman Santi _____ _____ _____ _____ Alderman Strach _____ _____ _____ _____ ______________________ ________________________ Wayne Jett, Mayor Monte Johnson, Deputy City Clerk 123 City of McHenry 333 S Gre en Street McHenry, Illinois 60050 Phone: (815) 363-2100 Fax: (815) 363-2119 www.cityofmchenry.org The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highes t quality of programs and services in a customer-oriented, efficient, and fiscally responsible manner. AGENDA ITEM DATE: August 21, 2023 TO: City Council FROM: Deputy Clerk Monte Johnson RE: Hampton Inn Liquor License AGENDA ITEM SUMMARY: Ami Hotels, LLC (Hampton Inn) has applied for a Class C liquor license at 1555 S IL Route 31. This is the current Hampton Inn that is in business. They are applying for a liquor license because Hampton Inn requires their hotels to offer beer and wine to guests in thei r small concessions area near their reception desk. They would not be pouring or serving the beer or wine. This would simply be for guests to purchase a nd take to their rooms. Background checks have been completed and cleared for all owners of the business. Staff has no issues with the liquor license being approved. RECOMMENDATION: A motion to approve a Class C Liquor License to Ami Hotels, LLC, 1555 S Route 31, McHenry, IL, and if approved, to pass an Ordinance Amending Title 4, Chapter 2, Alcoholic Liquor, Section 6, License Classification and Fees; App roval Author ity; Limitation on Number of Licenses 124 4•-+4 McHenr License Classification Application Date* 1/17/2023 License Type* A Class"D"(Special EvenY'license has a separate application A B C E F G H License Classifications-Link to classifications list in the City Code New/Transfer* New Business Transfer of License Applicant Business Name of Business* Ami Hotels, LLC Name on License Name to appear on liquor license(if different than above). Address* 1555 S. IL Route 31 Phone* 8155781900 Email* alpesh.patel2@hilton.com Type of Business* Sole Proprietor Partnership LLC or Corporation Principal Business Type* Bar Restaurant Retail Store Hotel Gas Station Gaming Parlor Other A separate application will need to be filled out for video gaming. The issuance of a qualified liquor license in the City of McHenry does not guarantee that a video gaming license will be issued. State of Filing List state of filing for LLC,Corporation,Partnership and Sole Proprietor IIl01S 125 Alcohol Sale Length How long has the business been in the business of selling alcohol?List date. Zoning What Zoning Classification is the business property? Business Location History Date Date on which the business opened or will open at the above Business Location 3/17/2003 Property Ownership Is the property at which the applicant business is located owned or lesed by the applicant? Owned Leased Location Qualifications* Is the location of the applican'ts business for which the license is sought within one hundred feet of any church;schook.hospital.funeral home;home for aged or indigent persons or for veterands and their families or any military or naval station? No Yes Parking How many private property parking spaces are associated with the business location? 130 Business Agent An agent is the authorized representative of the Licensee who has supervisory authority over all employees of the license premises.An agent may be an owner, partner, member, or designated manager. Full Name* Alpesh Patel Date of Birth* Home Address* Phone* Citizenship* Birth Naturalization Email* Business History History* Have the applicant(s)(including all 5%or higher owners),corporation;LLC,or partnership ever engaged in the business or sale of alcoholic liquor at any other location7 No Yes 126 Business Licensing and Filing Identification ROT# ApplicanYs Retailer's Occupation tax(ROT)Registration Number Delinquency* Has applicant been delinquent in the payment of the Retailer's Occupational Tax(Sales Tax)? No Yes Insurance List the name and address of dram shop insurance company along with the policy numbers for both the applicant business and owner of the building (if leased)in which the alcoholic liquor will be sold for the duration of the license. Insurance Company Insurance Company Address Policy Number Background Questionnaire The following questions are in relation to the McHenry City Liquor Ordinance and Illinois law as it pertains to liquor licensing.All questions must be answered honestly. Failure to do so may disqualify you from the application process. Are you familiar with all the laws of the United States, State of Illinois and ordinances of the City of McHenry pertaining to the sale of alcoholic liquor;and will you abide by them? Yes No Will you maintain the entire premises in a safe,clean and sanitary manner free from conditions,which might cause accidents? Yes No Will you attempt to prevent rowdiness,fights and disorderly conduct of any kind and immediately notify the McHenry Police Department is any such events take place? Yes No Has any manufacturer, importing distributor or distributor of alcoholic liquors directly or indirectly paid or agreed to pay for this license, advanced money or anything else of value or any credit(other than merchandising credit in the ordinary course of business for a period not in excess of 90 days),or is such a person directly or indirectly interested in the ownership,conduct or operation of the place of business? Yes No 127 Have any of the applicants, including all listed agents and partners who have a minimum of a 5%ownership in the business been convicted of any violation of any law pertaining to alcoholic liquors? Liquor Violations?* Yes No Felony/Misdemeanor?* Have any of the applicants.including all listed agents and partners who have a minimum of a 5%ownership in the business been convicted of a felony or misdemeanor? Yes No Will you and all your employees refuse to serve or sell alcoholic liquor to an intoxicated person or to a minor? Yes No Has any owner(s)or member(s)of a Partnership been issued a federal gaming devise stamp or a federal wagering stamp by the federal government for the current tax period? If a Corporation, has any officer, manager,or director thereof;or, any stockholder owning in the aggregate more than twenty(20)percent of the stock, been issued a federal wagering devise stamp or a federal wagering stamp by the federal government for the current tax period? Federal Gaming/Wagering Stamp* Yes No Have you,or any partner, or owner of 5%or more shares of the business or Agent,ever had a liquor license revoked or suspended? Suspension* Yes No Liqour Suspension Information For a large number of suspensions,a separate document may be submitted in lieu of filling out the boxes below. Name Date and Location of Offense Is any individual who is directly or indirectly interested in applicanYs place of business, a law-enforcing official or elected public official(mayor,alderman,and member of any City commission, committee or board)? Official or Officer* Yes No Public Official or Officer Information Name Address Phone 128 Have you ever been convicted of a gambling offense(if a partnership or corporation, include all partners,owners of 5%or more shares of the corporation and the local manager)? Gambling Offense Yes No Ownership Records A List of all owners, partners, stock holders and members must be listed below. In lieu of filling out multiple boxes, additional supporting paperwork may be submitted. Owner Information Name Date of Birth Address Phone Email Percentage of Ownership Citizenship-Owner Birth Naturalization File Upload Upload supporting documents,certificate of insurance,etc I,the undersigned,being first duly sworn,deposes and says that I(we), have read the above and foregoing Application,caused the answers to be provided thereto and all of the information given on said Application to be true and correct,and consent to investigation and background check by the Local Liquor Control Commissioner or his designee and agree to comply with all City Ordinances and the rules stated on this application. Signature of Authorized Agent of Corporation d r C- Acknowledgement* I understand that checking this box constitutes a legal signature and confirms that I have filled out this form to the best of my ability. Date* 1/17/2023 129 Ami Hotels, LLC Articles of Organization 03/01/2019 Alpesh Patel – President Mitesh Shah – Vice President Kaushik Amin – Treasurer Jyoti Mistry – Treasurer 130 ORDINANCE NO. 23- Amending Title 4, Chapter 2, Alcoholic Liquor, Section 6, License Classification and Fees; Approval Authority; Limitation on Number of Licenses 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. NOW, THEREFORE BE IT ORDAINED by the City Council of the City of McHenry, McHenry County, Illinois, as follows: SECTION 1: Section 4 -2-6, subs ection D -3, of the Municipal Code relating to liquor license classifications, shall be amended as follows: D.3 . Class C (Packaged Retail ) License: Issuance of a Class C license shall authorize the retail sale of packaged alcoholic liquor only. No consumption of alcoholic liquor shall be permitted on the premises. The annual fee for a Class C license shall be one thousand one hundred dollars ($1,100.00). No more than twenty-f ive (25) Class C licenses shall be in force in the City at any time. SECTION 2: If any section, paragraph, subdivision, clause, sente nce or provision of this Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not effect, impair, invalidate or nullify the remainder thereof, which remainder shall remain and continue in full force and effe ct. SECTION 3: All ordinances, or parts thereof, in conflict herewith 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, Illinois. SECTION 5: This ordinance shall be in full force and effect from and after its passage, approval and publication, as provided by law. Passed this 21st day of August 2023. Ayes Nays Absent Abstain Alderwoman Bassi _____ _____ _____ _____ Alderman Glab _____ _____ _____ _____ Alderman Koch _____ _____ _____ _____ Alderman McClatchey _____ _____ _____ _____ Alderwoman Miller _____ _____ _____ _____ Alderman Santi _____ _____ _____ _____ Alderman Strach _____ _____ _____ _____ ______________________ ________________________ Wayne Jett, Mayor Monte Johnson, Deputy City Clerk 131 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 www.cityofmchenry.org REGULAR AGENDA SUPPLEMENT TO: Mayor and City Council FROM: Douglas Martin, Director of Economic Development FOR: August 21, 2023, Regular City Council Meeting RE: Commercial Tenant Incentive Grant Application for Rita’s Italian Ice and Custard at 3319 W Elm ATT: 1. Pictures of Rita’s Italian Ice and Custard 2. Commercial Tenant Grant Application 3. Commercial Tenant Improvement Grant Agreement AGENDA ITEM SUMMARY: Cathy Levatino, owner of Rita’s Italian Ice and Custard, a new business located at 3319 W Elm, has submitted an application for a $10,000 Commercial Tenant Incentive Grant. ANALYSIS: Rita’s is seeking a $10,000 grant to help pay for equipment including a batch freezer and single- phase custard machine-see attached contract. She has also purchased numerous other items for her business. This is a maximum of 50% reimbursement and $10,000 of the eligible costs of the equipment which will be paid out after the first year pending the sales of the store meet a minimum threshold of $150,000. This is a binding agreement for three years upon payment of the $10,000. The property owner must also maintain annual sales of $150,000. RECOMMENDATION: If the City Council concurs it is recommended to enter into the attached agreement with the owner for a Commercial Tenant Incentive Grant in a n amount not-to-exceed $10,000. 132 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 www.cityofmchenry.org North Elevation East Elevation 133 Commercial Tenant Incentive Grant Application Tenant/Owner * Name * Mailing Address * Phone * Fax Email * Federal Tax ID#* Address * Property Identification Number(s)* Phone * * Description of furniture, fixtures, and equipment to be utilized * Use the upload buttons below for the following items that must be submitted with this application: Applicant Information Tenant Owner Cathy Levatino Address, City, State, Zip 3319 West Elm Street 8477701642 ritasofmchenry@gmail.com 92-1246022 Property Information Address for building for which grant is sought: 3319 West Elm Street, McHenry, IL 60050 09-26-457-004 8477701642 New Business occupying vacant retail space Existing retail business making improvements to my building or tenant space Rita's Italian Ice & Custard...Equipment includes, freezers, dip boxes, ice machines, custard machines, small & large refrigerators. Outside furniture, inside tables, new bathroom, new flooring, new light fixtures everywhere. New front elevation, new ADA Compliant ramp. New drwall, new ceilings, new plumbing, new electrical, new HVAC. We expect to be generating revenue a year at or above $550,000. Most shops annual revenue is about 750,000. 134 Written Estimates for the furniture, fixtures and equipment to be purchased Written Estimates for the facade or building improvements A floor plan, illustrating the locations for the furniture, fixtures, and equipment * Written description of the scope of the proposed project * Illinois Taxable sales records and/or projections * I agree to comply with the guidelines and standards of the City of McHenry Commercial Tenant Incentive Program and I understand that this is a voluntary program, under which the City has the right to approve or deny any project or proposal or portions thereof. Applicant Signature * Date * I am the building owner and agree to the application submitted by my tenant, above, and agree to comply with the guidelines and standards of the City of McHenry Commercial Tenant Incentive Program and I understand that this is a voluntary program, under which the City has the right to approve or deny any project or proposal or portions thereof. Building Owner Signature Date Mailing Address Email Phone Number Rita's McHenry #1522 Sentry Contract - signed.pdf 388.1KB Rita_s__1522_McHenry__IL (1).pdf 445.21KB Petros Construction.xlsx 293.5KB (drawings do not have to be architectural renderings, but should be to scale so that the City can understand the scope of the proposed project) Rita's (McHenry) - Permit Set - 23-27-04.pdf 16.03MB (letter to the Mayor and City Council) Letter to village.docx 12.47KB Start up & 2 year projection (1) (1).xlsx 59.9KB 7/26/2023 7/26/2023 614 Golfview Terrace, buffalo grove, IL 60089 clevatino@starckre.com 18477701642 135 To Whom it may concern, We plan on Opening a Rita’s on the corner of 120 and Riverside. We cannot wait to be a part of the community and plan events with the new Riverwalk Shoppes. We hope to bring a thriving business and revenue to McHenry! Plan events, take part in events, be a great partner for the Chamber!! I can’t express enough how excited we are to bring this business to downtown McHenry. We fixed up a building that was old and run down and brought new to the corner! I hope we can receive some grant money, we would like make a back seating area also for more people to hang out and be a part of the Riverwalk and visit the shops and events. Thank you, Cathy Levatino Owner/Operator Rita’s Italian Ice & Custard 136 Quote 03/22/2023 To:Project:From: Rita's Water Ice Headquarters Jeff Baker 1210 Northbrook Dr Suite 310 Trevose, PA 19053‐ (800)677‐7482 Rita's #1522 McHenry, IL Nordon LLC/P.K.E. Ryan Stratton 1 Cabot Blvd East Langhorne , PA 19047‐1801 800‐544‐0400 Job Reference Number: 31648 Item Qty Description Sell Total 8b 1 ea SHELVING, WALL MOUNTED $174.95 BK Resources Model No. BKWS‐1260 Premium Shelf, wall‐mounted, 60"W x 12"D, 18/304 stainless steel, 1‐ 1/2"H rear up‐turn, (2) 8" angle supports, NSF Dimensions 8(h) x 60(w) x 12(d) Class 70 Weight: 17 lbs total ITEM TOTAL:$174.95 9b 2 ea DISPLAY CASE, DIPPING, GELATO/ICE CREAM $8,589.48 C. Nelson Manufacturing Co Model No. BD6DIP‐RBW ‐ Interior stainless steel ‐ NSF & UL approved ‐ Glass canopy construction ‐ Cold wall evaporator ‐ Manual defrost ‐ Forced air tubular clog free condenser ‐ Electronic programmable temperature control ‐10 to +30 degree range ‐ Customer can racking for Rita’s tubs ‐ 5 year limited compressor warranty. DECORATED RACK SYSTEM SOLD SEPERATELY ‐ N98116 ITEM TOTAL:$8,589.48 9b.1 2 ea ICE CREAM DIPPING CABINET, PARTS & ACCESSORIES $1,068.64 C. Nelson Manufacturing Co Model No. N98116‐6DIP‐RBW DECORATED RACK SYSTEM FOR BD6DIP‐RBW ITEM TOTAL:$1,068.64 9c 1 ea ICE CREAM DIPPING CABINET $3,971.05 C. Nelson Manufacturing Co Model No. BD8‐RI‐HC ‐ Interior & Top stainless steel ‐ NSF & UL approved ‐ Cold wall evaporator ‐ Manual defrost ‐ Forced air tubular clog free condenser ‐ Electronic programmable temperature Sell $174.95 $4,294.74 $534.32 $3,971.05 Rita's #1522 McHenry, IL Rita's Water Ice Headquarters Ini al: ______ Page 1 of 6 137 Item Qty Description Sell TotalSell control ‐10 to +30 degree range ‐ 5 year limited compressor warranty ITEM TOTAL:$3,971.05 10d 1 ea CORNER SINK, (3) THREE COMPARTMENT $1,634.53 BK Resources Model No. BKCS‐3‐18‐14‐18T Corner Sink, three compartment, 57"W x 57"D x 43‐1/2"H overall size, 18 wide" x 18" front‐to‐back x 14" deep compartments, (2) left & right 18" drainboards, 9"H backsplash, (2) sets of 8" OC faucet holes, 1‐1/2" rolled edges on front & sides, includes drain baskets, 18/304 stainless steel construction, galvanized steel legs, adjustable high impact corrosion resistant feet, NSF Dimensions 43.5(h) x 57(w) x 57(d) Class 300 Weight: 101 lbs total ITEM TOTAL:$1,634.53 11 1 ea PRE‐RINSE FAUCET ASSEMBLY, WITH ADD ON FAUCET $404.84 BK Resources Model No. BKF‐SMPR‐WB‐AF12‐G OptiFlow™ Pre‐Rinse Assembly, with 12" add‐on faucet, splash‐ mounted, 8" OC, triple ply hose, 1/4 turn ceramic cartridges, integral check valves, color coded hot & cold indicators, 1/2" female inlets, 12" wall bracket, lead free, NSF, cCSAus 1 ea 3 year warranty, standard Class 60 Weight: 13.5 lbs total ITEM TOTAL:$404.84 15b 1 ea WALL / SPLASH MOUNT FAUCET $180.00 BK Resources Model No. BKF‐12‐G OptiFlow™ Heavy Duty Faucet, splash‐mounted, 8" OC, 12" swing spout, double O‐ring spout seal, 1/4 turn ceramic cartridges, integral check valve, high polished chrome finish, lead free, NSF, cCSAus, ADA Compliant 1 ea 3 year warranty, standard Class 60 Weight: 4.5 lbs total ITEM TOTAL:$180.00 16B 1 ea REACH‐IN REFRIGERATOR $3,597.77 Kelvinator Commercial Model No. KCHRI54R2DRE (738242) Reach‐In Refrigerator, two‐section, self‐contained bottom mount refrigeration, 49 cubic feet capacity, (2) stainless steel doors with locks, +33/+41°F temperature range, LED light, (6) vinyl coated steel shelves, 304 stainless steel interior, galvanized & stainless steel exterior, heavy duty casters, R290 Hydrocarbon refrigerant, 1/4 HP, 115v/60/1‐ph, 0.5kW, 4.5 amps, NEMA 5‐15P, cETLus, ETL‐Sanitation Dimensions 82.25(h) x 53.88(w) x 32.69(d) 1 ea 3 year limited warranty, standard 1 ea 5 year compressor warranty Class 150 Weight: 489 lbs total ITEM TOTAL:$3,597.77 17g 1 ea COUNTER FREEZER $1,160.26 $1,634.53 $404.84 $180.00 $3,597.77 $1,160.26 Nordon LLC/P.K.E.03/22/2023 Rita's #1522 McHenry, IL Rita's Water Ice Headquarters Ini al: ______ Page 2 of 6 138 Item Qty Description Sell TotalSell Ojeda USA Model No. CTFH 3 Countertop Freezer, 23.7" W, 3.22 cu. ft. capacity, (1) hinged double pane tempered thermal glass heated door, (3) adjustable shelves, vertical lighting, manual defrost, cold wall evaporator, skin condenser, galvanized metal cabinet, powder coated steel exterior, painted steel interior, leveling legs, R290 refrigerant, NEMA 5‐15P, 120v/60hz, 4.0 amps, 1/4 HP, cETLus, ETL‐Sanitation Dimensions 29.1(h) x 23.6(w) x 23.8(d) 1 ea 3 year parts and labor warranty, 5 year compressor parts only, standard Class 150 Weight: 185 lbs total ITEM TOTAL:$1,160.26 18A 1 ea BACK BAR CABINET, REFRIGERATED $2,394.53 Kelvinator Commercial Model No. KCHBB60S (738270) Back Bar Cooler, 60"W, self‐contained side mounted refrigeration, 16.6 cu. ft. capacity, (2) solid doors with locks, (4) vinyl‐ coated steel shelves, auto defrost, 304 stainless steel worktop, stainless steel interior, galvanized & black painted steel exterior, R290 Hydrocarbon refrigerant, 1/5 HP, 115v/60/1‐ph, 0.3kW, 3 amps, NEMA 5‐15P, cETLus, ETL‐Sanitation Dimensions 36.25(h) x 61.13(w) x 24.44(d) 1 ea 3 year limited warranty, standard 1 ea 5 year compressor warranty 1 ea CASTERS 4" caster kit $207.37 Class 150 Weight: 309 lbs total ITEM TOTAL:$2,601.90 18d 1 ea MEGA TOP SANDWICH / SALAD PREPARATION REFRIGERATOR $2,105.00 Kelvinator Commercial Model No. KCHMT29.12 (738259) Mega Top Refrigerated Sandwich/Salad Prep Table, one‐ section, 29"W, self‐contained rear mounted refrigeration, 7.0 cu. ft. capacity, accommodates (12) 1/6 GN pans, adapter bars included, (1) solid right hinged door, full depth cutting board, +33/+41°F temperature range, (1) vinyl coated steel shelf, 430 stainless steel worktop, insulated lid, stainless steel interior, galvanized, aluminum & stainless steel exterior, heavy duty casters, R290 Hydrocarbon refrigerant, 115v/60/1‐ph, 0.5kW, 5 amps, NEMA 5‐15P, cETLus, ETL‐ Sanitation Dimensions 43.25(h) x 27.88(w) x 31.88(d) 1 ea 3 year limited warranty, standard 1 ea 5 year compressor warranty Class 150 Weight: 231 lbs total ITEM TOTAL:$2,105.00 18h 1 ea REACH‐IN UNDERCOUNTER FREEZER $2,043.66 Kelvinator Commercial Model No. KCHUC27F (738265) Undercounter Freezer, reach‐in, one‐section, 27"W, self‐ contained rear mounted refrigeration, (1) solid right hinged door, ‐4/‐9°F temperature range, (1) vinyl coated steel shelf, stainless steel interior, galvanized, aluminum & stainless steel exterior, casters, R290 Hydrocarbon refrigerant, 1/5 HP, 115v/60/1‐ph, 0.2kW, 1.9 amps, NEMA 5‐15P, cETLus, ETL‐Sanitation $2,394.53 $207.37 $2,105.00 $2,043.66 Nordon LLC/P.K.E.03/22/2023 Rita's #1522 McHenry, IL Rita's Water Ice Headquarters Ini al: ______ Page 3 of 6 139 Item Qty Description Sell TotalSell Dimensions 35.5(h) x 27.81(w) x 29.94(d) 1 ea 3 year limited warranty, standard 1 ea 5 year compressor warranty Class 150 Weight: 194 lbs total ITEM TOTAL:$2,043.66 23 6 ea CUP DISPENSERS, IN‐COUNTER $348.66 Modular Corporation Model No. MESF‐2000 / 1015470 MODULAR CUP DISPENSER Fits 3.5 ‐ 44 oz. cups with rim diameters ranging from 2 1/4" ‐ 4 5/8" Works with paper, plastic, or foam cups Durable black plastic construction is easy to wipe clean Pull‐type design dispenses cups (sold separately) from the bottom Designed for wall mounting to make the best use of limited space RITA'S ITEM TOTAL:$348.66 25a 2 ea MIXER, DRINK / BAR $2,538.94 Hamilton Beach Model No. 94950 Mix 'N Chill Drink Mixer, single spindle, for hard ice cream & candy mix‐ins, variable speed, on/off switch, stainless steel agitator, splash pan & shield, 3/4 HP, 120v/60/1‐ph, 5.6 amps, UL, CSA, ECSP, NSF listed, 1 year warranty Dimensions 25.75(h) x 10(w) x 8.75(d) Weight: 64 lbs total ITEM TOTAL:$2,538.94 25b 2 ea FOOT PEDAL $284.22 LINEMASTER Switch Corporation Model No. 632‐SC3 Foot Pedal ITEM TOTAL:$284.22 25f 1 ea ICE CREAM CONE DISPENSER $70.74 General Model No. GHRCH‐01 Wall Mount Cone Dispenser 1 ea 108B Baffle needed for GH‐RCH‐01 $31.58 ITEM TOTAL:$102.32 26 1 ea BLENDER, BAR $109.89 Waring Model No. BB155 Bar Blender, 44 oz. capacity, two speed motor, polycarbonate container, 2‐piece lid, one‐piece stainless steel blade, removable blade assembly, die‐cast black zinc baked enamel base, 3/4 HP, NSF, cETLus, Made in USA Dimensions 13.63(h) x 8(w) x 9.75(d) 1 ea 2 year limited warranty, standard For Customer Care & Product Service, please contact: (800) 269‐6640 waring_service@conair.com Waring Customer Care 314 Ella T. Grasso Ave $58.11 $1,269.47 $142.11 $70.74 $31.58 $109.89 Nordon LLC/P.K.E.03/22/2023 Rita's #1522 McHenry, IL Rita's Water Ice Headquarters Ini al: ______ Page 4 of 6 140 Item Qty Description Sell TotalSell Merchandise $32,420.49 Freight $3,500.00 Total $35,920.49 Torrington, CT 06790 1 ea 120v/50/60/1‐ph, standard Class ups Weight: 7.25 lbs total ITEM TOTAL:$109.89 33 4 ea DISPENSER, DRY PRODUCTS $591.04 Server Products Model No. 86670 DPD, DRY PRODUCT DISPENSER, SINGLE 1 LITER, serves from a clear, 1 liter hopper, with 14 portion settings, 2 oz. max, 1/4 oz. minimum, adjustable in 1/8 oz. increments, single dispenser mounting bracket needs just 5" of linear vertical space, dispensing lever operation is ADA Compliant (no tight grasping or twisting rotation required), includes wide opening, lift‐off lid and removable, silicone discharge fitting, stainless steel, BPA free, NSF Dimensions 13.56(h) x 4.7(w) x 6.31(d) 4 ea 2 Year warranty Class 150 Weight: 16 lbs total ITEM TOTAL:$591.04 34 1 ea SHELVING, WALL MOUNTED $96.00 BK Resources Model No. BKWS‐1224 Premium Shelf, wall‐mounted, 24"W x 12"D, 18/304 stainless steel, 1‐ 1/2"H rear up‐turn, (2) 8" angle supports, NSF Dimensions 8(h) x 24(w) x 12(d) Class 70 Weight: 9 lbs total ITEM TOTAL:$96.00 35 1 ea FOOD TOPPING WARMER, COUNTERTOP $817.34 Server Products Model No. 85899 EZT, TWIN EZ‐TOPPER™, FUDGE & CARAMEL TOPPING WARMER, DUAL POUCH, thermostatically‐controlled, dry heat (non‐water bath), dispenses from 48 oz. fudge and caramel topping pouches with 16 mm center fitment, while warming a second of each in reserve, includes supports for occasions when pre‐heating a second pouch is not needed, stainless steel pumps, serve 1 oz., which can be reduced in 1/8 oz. increments with supplied collars, includes magnetic hot fudge and caramel merchandising signs, stainless steel, 400 watts, 120v/60/1‐ph, 3.3 amps, cord, NEMA 5‐15P, cULus, NSF Dimensions 17.38(h) x 11.88(w) x 9.63(d) 1 ea 2 Year warranty 1 ea NOTE: Contact your food distributor for special 48 oz. topping pouches with 16 mm center fitment (limited availability) prior to purchase. Weight: 26 lbs total ITEM TOTAL:$817.34 $147.76 $96.00 $817.34 Nordon LLC/P.K.E.03/22/2023 Rita's #1522 McHenry, IL Rita's Water Ice Headquarters Ini al: ______ Page 5 of 6 141 Acceptance:Date: Printed Name: PLEASE NOTE THIS IS NOT AN ORDER. ALL QUOTES MUST BE SIGNED AND RETURNED. 50% DEPOSIT DUE AT TIME OF ORDER AND THE BALANCE DUE AT DELIVERY. THIS QUOTE IS ONLY VAILD FOR 30 DAYS ‐‐>PRICES SUBJECT TO CHANGE DUE TO MARKET VOLATILITY.<‐‐ FREIGHT ESTIMATED. PLEASE CONTACT MEGAN BROOKS TO MAKE PAYMENT - PH#267-594-4013 EMAIL - meganb@NordonInc.com ALL EQUIPMENT MUST BE INSPECTED UPON DELIVERY - DAMAGES MUST BE NOTED ON THE BOL. ALL CONCEALED DAMAGE MUST BE REPORTED WITHIN 48 HOURS OF DELIVERY. Prices on this quote are valid for 30 days Project Grand Total: $35,920.49 Nordon LLC/P.K.E.03/22/2023 Rita's #1522 McHenry, IL Rita's Water Ice Headquarters Ini al: ______ Page 6 of 6 142 CITY OF McHENRY Commercial Tenant Incentive Grant Agreement THIS AGREEMENT, entered into this 21st day of August, 2023, between the City of McHenry, an Illinois Municipal Corporation (hereinafter referred to as “CITY”) and Delights Enterprises LLC dba Rita’s Italian Ice & Custard, the following designated business owner, (hereinafter referred to as “OWNER”), to witness: Business Owner’s Name: Cathy Levatino Name of Business: Rita’s Italian Ice & Custard Federal Tax ID#: 92-1246022 Address of Property where the business will be located: 3319 W. Elm St., McHenry, IL PIN Number(s): 09-26-457-004 RECITALS: WHEREAS, the City of McHenry (“the City”) has created a grant program, making certain grant funding available for new and existing retail businesses in the City (the “Grant Program”); WHEREAS, the Grant Program is administered by the City and is funded by the general fund for the purpose of enhancing economic development opportunities in the City; WHEREAS, the Grant Program was created for the purpose of reimbursing business owners who occupy vacant retail space, construct new buildings, or make improvements to their existing space within the City limits of McHenry, subject to eligibility requirements and grant parameters and limitations set forth in the Grant Program; WHEREAS, the Owner operates a new retail business within the corporate limits of the City, commonly known as Rita’s Italian Ice & Custard (the “Retail Business”) and located at 3319 W. Elm St., McHenry, Illinois (the “Property”); WHEREAS, the Owner has applied for a New Retailer Incentive Grant (the “Grant”); and WHEREAS, the City has determined that the Owner is eligible for the Grant, subject to the conditions and limitations set forth in the Grant Program and this Agreement; NOW THEREFORE, in consideration of the mutual covenants and agreements obtained herein, the CITY and the OWNER do hereby agr ee as follows: CITY OF MCHENRY – Economic Development Department, 333 S Green Street, MCHENRY, IL 60050 PH 815.363.2110 or 815.363.2175 WWW.CITYOFMCHENRY.ORG 143 Incentive Grant Agreement-Rita’s Italian Ice & Custard Page 2 CITY OF MCHENRY – Economic Development Dept. 333 S Green Street, MCHENRY, IL 60050 PH 815.363.2110 or 815.363.2175 WWW.CITYOFMCHENRY.ORG 1. The City shall reimburse the Owner at a rate of fifty percent (50%) for the cost of eligible FFE or façade or building improvement expenses incurred by the Owner for use in the Owner’s Business. The total amount of all reimbursements paid by the City pursuant to this Agreement shall not exceed $ 10,000.00. 2. The City approval of a grant shall not be construed as permission to commence construction on the subject property. No improvements or construction shall be undertaken by the Owner on the location of their business until applications for Building Permits and Occupancy have been submitted to the Community Development Department and approved by the City. Following approval, the Owner shall occupy the subject property and commence full-time business operations within one hundred eighty days (180) from the date of City Council approval. The Owner may request a ninety-day (90) extension provided there is a demonstrated hardship. 3. Upon completion of the improvements and upon their final inspection and approval by the Community Development Department, the Owner shall submit to the City proper documentation, including: receipts and cancelled checks for the purchase of the approved FFE, proof of payment for the façade or building improvements including labor and materials with wages paid and a copy of a final Certificate of Occupancy for the business. The City shall, after having received one year of sales tax data from the State of Illinois, issue a check to the Owner as reimbursement for one-half of the expenses approved by the City for reimbursement, subject to the limitations set forth above. To qualify for this matching grant Owner must generate a minimum of $150,000 annually in Illinois sales tax and sustain or exceed that amount for three years. 4. If the Owner fails to purchase furniture, fixtures, or equipment or complete the façade or building improvements consistent with the conditions of the approval by the Mayor and City Council, then upon written notice being given by the City to the Owner, by certified mail to the address listed above, this Agreement shall terminate and the financial obligation on the part of the City shall cease and become null and void. 5. Upon completion of the improvements, Owner shall be responsible for properly maintaining the FFE or façade without change or alteration thereto, as provided in this Agreement for a period of three (3) years following completion of the construction and/or business commencement. 6. This Agreement shall be binding upon the CITY and upon the OWNER and its successors, to said property for a period of three (3) years from the date the check has been issued to the applicant. It shall be the responsibility of the OWNER to inform subsequent OWNER(S) of the provisions of this Agreement. Applicant must comply with all approval criteria as stated in the Program and in this Agreement. 144 Incentive Grant Agreement-Rita’s Italian Ice & Custard Page 3 In the event that at any time, subsequent to the reimbursement payment required by this Agreement have been paid by the City, the Owner abandons, closes, transfers, sells or terminates the Retail Business Owner’s business upon the Property during the three (3) year term of this Agreement (hereinafter collectively referred to as the “Terminating Event”), the Owner shall, within thirty (30) days from the date of the Terminating Event or such later date as the City may agree to in writing (hereinafter, the “Refund Payment Due Date”), refund to the City a portion of the Grant received from the City prior to the Terminating Event, in accordance with the following schedule (hereinafter, the “Refund Payment”): Date of Terminating Event % of the Total Grant Payment to be Refunded Within one year of the agreement date 75% Within two years of the agreement date 50% Within three years of the agreement date 25% Such Refund Payment shall be paid to the City within thirty (30) days from the date of the Terminating Event (hereinafter, the “Refund Payment Due Date”). Owner agrees on its own behalf and on behalf of its heirs, successors, and assigns that the City’s right to the Refund Payment pursuant to this paragraph shall constitute both a personal obligation of the Owner and a lien against the Property and Owner agrees that the City may record this Agreement with the McHenry County Recorder of Deeds. To further secure the repayment of Reimbursement Payments pursuant to this paragraph, Owner agrees to execute and deliver to the City a UCC financing statement, in a form acceptable to the City Attorney, pledging inventory, accounts held at financial institutions, accounts receivables, and such other assets of the Owner as the parties may agree to in writing , and Owner further consents to the filing and/or recording of such financing statements as may be appropriate under the laws of the State of Illinois. Such financing statement shall be delivered to the City upon request. 7. The Owner releases the City from, and covenants and agrees that the City shall not be liable for, and covenants and agrees to indemnify and hold harmless the City and its officials, officers, employees, and agents from and against any and all losses, claims, damages, liabilities, or expenses, of every conceivable kind, character and nature whatsoever arising out of, resulting from or in any way connected directly or indirectly with the furniture, fixtures, and equipment, and/or employees hired for the Retail Business. The Owner further covenants and agrees to pay for or reimburse the City and its officials, officers, employees, and agents for any and all costs, reasonable attorney’s fees, liabilities, or expenses incurred in connection with enforcement of this Agreement, investigating, defending against or otherwise in connection with any such losses, claims, damages, liabilities, or causes of action. The City shall have the right to select legal counsel and to approve any settlement in connection with such losses, claims, damages, liabilities, or causes of action. CITY OF MCHENRY – Economic Development Dept. 333 S Green Street, MCHENRY, IL 60050 PH 815.363.2110 or 815.363.2175 WWW.CITYOFMCHENRY.ORG 145 Incentive Grant Agreement-Rita’s Italian Ice & Custard Page 4 IN WITNESS THEREOF, the parties hereto have executed this Agreement on the date first appearing above. OWNER CITY OF MCHENRY ATTEST: CITY OF MCHENRY – Economic Development Dept. 333 S Green Street, MCHENRY, IL 60050 PH 815.363.2110 or 815.363.2175 WWW.CITYOFMCHENRY.ORG 146 147 148 Department of Economic Development Douglas Martin, Director of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 dmartin@cityofmchenry.org www.cityofmchenry.org REGULAR AGENDA SUPPLEMENT TO: Mayor and City Council FROM: Douglas Martin, Director of Economic Development FOR: August 21, 2022, Regular City Council Meeting RE: Vacant Building Incentive Program Application —Delight Enterprises, LLC—3319 W Elm Street ATT: 1. Pictures Before and after Improvements to Building 2. City Council Minutes dated February 22, 2022 3. Vacant Building Incentive Program Application C & R Delights, LLC—3319 W Elm Street 4. 2022 Tax Bill 3319 W Elm Street 5. Delights Enterprises LLC Vacant Building Incentive Program Agreement AGENDA ITEM SUMMARY: The Vacant Building Incentive Program, approved by the City Council on February 22nd of last year, is an incentive program geared towards non-industrial buildings and is intended to provide a five-year tax abatement from multiple taxing bodies, much like the Underutilized Property Tax Abatement and Incentive Program. The purpose is to encourage the redevelopment/reuse of vacant buildings. The Program includes an application, which asks for basic information about the applicant’s proposed project and the property. The intent is to ensure it is a legitimate project. The abatement only applies to the increase in taxes following redevelopment similar to a tax increment financing district. Further, there are no partial abatements. This is to prevent people who own shopping centers, with one or two vacant units from utilizing this program to fill one or two units. ANALYSIS: Since the February 22nd meeting this program has been presented to other taxing bodies for consideration to adopt and support. To date it has been supported by the McHenry Township Fire Protection District, Nunda Township Road District, McHenry District 156, McHenry District 15 and McHenry Public Library District. 149 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org www.cityofmchenry.org Delights Enterprises LLC purchased, totally gutted and rehabbed the site at 3319 W Elm (former Ryan Conway Insurance Agency) for an Italian ice and custard facility. The applicant has incurred over $500,000 in expenses to start-up this business. Currently, the total tax bill is approximately $5,168.62 however the proposed base abatement with all participating taxing bodies wil l be about $3,031.55 and the City of McHenry portion is $146.30. The tax abatement from the City of McHenry would consist of any taxes over the $146.30 following the completion of the improvements and be for a five-year term. Once the improvements are complete and a certificate of occupancy is issued staff will bring forward a tax abatement ordinance for Council consideration. To be clear, the goal of the Vacant Building Program is not to provide reimbursement for 100% of rehabilitation/improvement costs, but only to help offset these costs. As you can see from the analysis above, the amount of the abatement will be minimal compared to the overall costs of improvements to the site. RECOMMENDATION: If the City Council concurs with th e proposed property tax abatement it is recommended a motion by made to approve the tax abatement agreement and direct staff to draft an ordinance approving a tax abatement on the increase in taxes at 3319 W Elm for five years following the issuance of a certificate of occupancy for all approving taxing bodies. 150 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org www.cityofmchenry.org Before 151 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org www.cityofmchenry.org After 152 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org www.cityofmchenry.org 153 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org www.cityofmchenry.org 154 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org www.cityofmchenry.org 155 City of McHenry Council Meeting Minutes 2.22. 22 LenrV AGENDA - AMENDED REGULAR CITY COUNCIL MEETING Tuesday, February 22, 2022, 7:00 p.m. City Council Chambers, 333 S Green St, McHenry, IL 60050 In light of the current COVID-19 public health emergency, this meeting will be held remotely only. The public can observe and participate by connecting online via Zoom at hftps://cilyofmchenry.zoom.us/i/83948111213 Or call 312-626-6799, Meeting ID: 839 4811 1213 Call to Order: The meeting was held remotely via Zoom due to the COVID-19 pandemic. The meeting was in compliance with the Open Meetings Act per guidelines by the Illinois Attorney General's Office. Roll Call: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller, and Mayor Jett. Others present: Attorney McArdle, Administrator Morefield, Director of Public Works Strange, Director of Community Development Polerecky, Finance Director Lynch, Director of Parks and Recreation Hobson, Director of Economic Development Martin, Chief of Police Birk, City Planner Sheriff, and City Clerk Ramel. Pledge of Allegiance: Mayor Jett led the pledge. Public Comments: None Consent Agenda: Motion to Approve the following Consent Agenda Items: A. Resolution approving the Request to the Illinois State Legislature to Extend the City's Downtown Tax Increment Finance District; - Clerk's note this item was pulled by Alderman Glab- Alderman Glab had some concerns and questions regarding this item, not agreeing on the way the money is used out of this fund. May not be the best that fits for The City and wanted to vote on it separately. A motion was made by Alderman Strach and seconded by Alderman McClatchey to approve Consent Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller, 0-nays, 0-abstained. Motion carried. 1 156 City of McHenry Council Meeting Minutes 2.22. 22 B. Resolution establishing a list of pre-qualified engineering firms to provide consulting - services for municipal engineering for the City of McHenry; (Public Works Director Strange) D_ Authorization to Execute the Renewal of Farm Lease Agreements between the City of McHenry and multiple operators for the following properties: Levy Property (w/David Laufer), Petersen Farm (w/Bauer Family), Riverside Hollow Property (w/Charles Schaefer), Petersen Ballfield Annex Property (w/Charles Schaefer), and Curran Road Property (w/Charles Schaefer); (Parks and Recreation Director Hobson) F. 10cHenry Area Chamber of Commerce Fiesta Days Event - 1) Acceptance of Fiesta Days Event Schedule covering the period July 7'r' through July 18t' 2022; 2) Use of Parks, Police and Public Works for various services related to the event at 50% reduction of costs; 3) Special Event Liquor License; 4) Permission to post temporary advertising signs in the municipal 5) Fireworks display on Sunday, July 10°; (Parks and Recreation Director Hobson) G_ McHenry Rotary Club Blues Brews and BBQs Event-1) Use of Petersen Park to setup, host and cleanup from Thursday, August 18t'through Monday, August 22nd; 2) Special Event Liquor License for the sale of beer, wine and malt liquor with drink ticket sales to cease 30-minutes prior to park closure; 3)50% reduction of charges for city services;4) Permission to post temporary advertising signs in the municipal d$,-QL-W1y5; (Parks and Recreation Director Hobson) K Ordinance amending the FY21/22 Budget in the amount of$55,298.00; authorization to waive the competitive bid process and purchase a 2021 Ford F550 from Currie Motors in the amount of $55,298.00; an L authorize the Public Works Director to enter into a purchase agreement with JX Truck Center and purchase a 2023 Peterbilt 548 Truck subject to the terms of the agreement; (Public Works Director Strange, Police Chief Birk) I. Parks & Recreation Facilities & Special Use Permit es K. Issuance of Checks in the amount of S145,592- L. Issuance of As Needed Checks in the amount of$389,459.89_ A motion was made by Alderman Santi and seconded by Alderman Strach to approve Consent Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller.- absent. 0-nays, 0-abstained. Motion carried. 157 City of McHenry Council Meeting Minutes 2.22.22 C. Authorization to Execute the Renewal of a Lease Agreement between the City of McHenry and Trey & Tom Corp d/b/a Main Street Station, located at 4005 W. Main Street; (City Administrator Morefield) Clerk's Note Alderman McClatchy Pulled this item. Noticed that the towns around were selling the Metra Stations, wanted wanted to know if we lease it do we own it. The Union Pacific owns it but it is leased. Union Pacific retains a portion of the building, was curious how it was going with The City buying outright, however this conversation had occurred at a past meeting according to Administrator Morefield. There is also an out clause in the agreement if something comes down the line with this. Alderman Glab stated that the value of the property was overpriced from the market. A motion was made by Alderman Santi and seconded by Alderman McClatchey to approve Consent Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-absent. 0-nays, 0-abstained. Motion carried. E. Authorization to Execute a Lease Agreement between the City of McHenry and All Marine Service for the South Harbor Piers, Property and Buildings through May 1, 2023; (Parks and Recreation Director Hobson) Clerk's note item pulled by Alderman Woman Miller, Alderwoman Miller had stated that she is not in agreement with this recommendation due to development interest in this area. Would like to see this opened to other opportunities. Also brought up the city staffing as well. Director Hobson did address these concerns specifically about the terms, this is something we could consider, that there is not guaranteed storage, once the drop dead date occurs. The Parks Department cannot run this organization, the manpower concerns and expertise as well. Alderman Strach also spoke with what he thought the direction this was headed in, just renting out a boat slip but would need to be a simple manor. Alderman Glab asked if research was done and where the boaters would go after October, wanted to know what other options there would be to help those out after leasing at the end of the season. Also inquiring if we had access to a portable lift, it was confirmed it does belong to The City Parks Dept. 158 City of McHenry Council Meeting Minutes 2.22.22 Mayor Jett also spoke regarding his experience figuring out where to store a boat as well. The . lease expires on the 31st. Motion for October 31st. Alderwoman Miller would like to amended all boats out of the water by the 15th. This discussion went on for some time. A motion was made by Alderman Santi and seconded by Alderman McClatchey to approve Consent Agenda Items as presented: Roll Call: Vote:5-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Devine. 0-absent. 2- nays-Alderman Strach, Alderwoman Miller, 0-abstained. Motion carried. J. February 7, 2022 City Council Meeting Minutes; Clerk's note item pulled by Aldeman McClatchey An item from last minutes needed to be revised for he had voted yes and it was recorded as a no. Will be fixed on the final minutes from the last meeting. A motion was made by Alderman McClatchey and seconded by Alderman Strach to approve Consent Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-absent. 0-nays, 0-abstained. Motion carried. Individual Action Item Agenda. A. Motion to approve an Ordinance granting a Use Variation for a 3-unit multifamily building at 1410 N. Riverside Drive. (Community Development Director Polerecky) No public comment. A motion was made by Alderman Santi and seconded by Alderman Santi to approve Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-nays-,0-abstained. Motion carried. B. Motion to approve an Ordinance granting a Sign Variance to allow a changing electronic display and message board as a wall sign for the property located at 1208 N. Green Street. (Community Development Director Polerecky) This would be a freestanding sign because there is not room for one. Alderwoman Miller had asked the question if we looked at the future in the bigger picture instead of req. variances, however there were not that many brough to The Council, per Director Polerecky. There was some discussion regarding this. No public comment. A motion was made by Alderwoman Miller and seconded by Alderman Strach to approve ,.N Individual Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 0-nays-,0-abstained. Motion carried. 159 City of McHenry Council Meeting Minutes 2.22. 22 C. Motion to adopt the Vacant Building Incentive Program as proposed. (Economic Development Director Martin) Encourage the development of vacant nonindustrial buildings, 5 year tax abatement increment on vacant for at least 3 years. The idea went over pretty well with staff and the discussions of this program. This is a community effort to get some of these areas addressed. Alderman Santi complemented Director Martin on working with this program, the more buy-in for different taxing bodies gives more potential to go all in and working with it and would like to see it move forward. Alderman Glab is not in favor of this because we have to give something and then the rest of us have to pay more taxes on those entities. Alderman McCatchey stated that this is a win for other businesses around these buildings. Alderwoman Miller explained that this is another way for Director Martin to help get others interested in McHenry. The discussion went on for some time talking about the pros and cons A motion was made by Alderman Santi and seconded by Alderman McClathey to approve Individual Agenda Items as presented: Roll Call: Vote: 6-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 1-nays- Alderman Glab, 0-abstained. Motion carried. D. Motion to adopt Ordinances amending the McHenry City Code adding a new Title 3, Chapter 8, Imposing a New Electric Use Tax and new Chapter 9, A motion was made by Alderman Strach and seconded by Alderman Miller to approve Individual Agenda Items as presented: Roll Call: Vote: 5-ayes: Alderman Santi, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller. 2-nays- Alderman McClatchey, Alderman Glab, 0-abstained. Motion carried. D. Continued: Imposing a New Gas Use Tax; and, authorizing the execution of an agreement with NICOR for the collection and distribution of the natural gas use tax; (City Administrator Morefield) This could be voted on as two separate items, per Administrator Morefield after some details regarding this item was presented. The Natural Gas Use Tax would be put away for future projects. Clerk's Note for motioning purposes this item was divided on the minutes to show the voting. A motion was made by Alderman Santi and seconded by Alderwoman Miller to approve Individual Agenda Items as presented: Roll Call: Vote: 5-ayes: Alderman Santi, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine. 2-nays-Alderman Glab, Alderman McClatchey,0-abstained. Motion carried. 160 City of McHenry Council Meeting Minutes 2.22.22 Alderman Santi wanted to know how long this has been around, not confirmed but sounds like ..1 the 1990's. Alderman McClatchey feels this is the incorrect time for this to be occurring with the state of the country with inflation etc. Alderman Glab also agrees to hold off on this as well. Alderwoman Miller wants to support the project because the money is needed here. Alderman Harding also agrees in support of this. Alderman Devine agrees with Alderman Santi in the fact that there is not a good time to have a tax raise. He is willing to support on the first half but not the second. Alderman Strach wants to provide to the residents. Public Comment: Terry, resident of McHenry commented that he agrees it is not the right time to make this choice, his is disappointed. Second half of item: June 1st 2023 & 3 cents. Per Alderman Santi and Alderwoman, would like to see the plan in play and see how it can be used. No public comment. Discussion Items: None Executive Session: A motion was made by Alderman Santi and seconded by Alderwoman McClatchey to adjourn to Executive Session at 8:42 p.m. to discuss pending litigation the purchase or - lease of real estate property for the use of the public body, including meetings held for the purpose of discussion whether a particular parcel should be acquired {5 ILCS 120/2(c)(5)}. Mayor Jett reconvened the meeting from Executive Session at 9:03 p.m. The Clerk called the roll. Roll call: Members Present: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller, Mayor Jett Staff Reports: A. Staff Report for February 22, 2022: Shamrock of the Fox coming up in two weeks, according to Director Hobson. Mayor's Report: None City Council Comments: Alderman Santi asked some questions regarding the Covid relief. Administrator Morefield explained those. Alderman Strach asked when the widening of 31, estimates were explained by director Strange. 161 City of McHenry Council Meeting Minutes 2.22.22 Adjourn: A motion was made Alderman Santi and seconded by Alderman Harding to adjourn the meeting at 9:15 PM. Roll Call: Vote:7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderman Harding, Alderman Strach, Alderman Devine, Alderwoman Miller- absent. 0-nay-, 0-abstained. Motion carried. X-+? X mp-A Mayor Wayne Jett City Clerk Trisha Ramel 162 163 164 165 166 167 Back Taxes 0 BUFFALO GROVE IL 60089- 1ST INSTALLMENT FOR 2022 *$RE09264570041$* 34623 LEVATINO C MERLAK R 614 GOLFVIEW TER **DUPLICATE** 2ND INSTALLMENT FOR 2022 $2,584.31 *$RE09264570042$* **DUPLICATE** 0926457004000025843112 0926457004000025843124 Total Due Due by 06/12/2023 Total Due Due by 09/12/2023 163,250 50,670 S/A Value 1.0738 54,410 Brd. of Review Value 54,410 1.0000 54,410 0 1.0000 54,410 0 54,410 0 0 0 54,410 $5,168.62 9.499390 S/A Multiplier X S/A Equalized Value = Brd. of Review Mulitplier X Brd. of Review EQ Value = Home Improv./Vet Exemptions - State Multiplier X State Equalized Value = Farmland and Bldgs. Value + Total Amt. Prior to Exemptions = Annual Homestead Exemptions - Sr. Freeze Abated Amount - Senior Homestead Exemption - Disabled Vet Homestead Ex - Net Taxable Amount = Local Tax Rate X Total Current Year Tax Due = Fair Cash ValueTaxing Body Tax Last YearTax This YearPercentRate 0.625255 6.58 $251.29 $264.39MCHENRY COUNTY 0.072903 0.77 $29.30 $31.59PENSIONMCHENRY COUNTY 0.212478 2.24 $85.39 $89.20MCHENRY CO CONSV 0.305922 3.22 $122.95 $132.45COLLEGE DISTRICT 528 MCC 0.000106 0.00 $0.04 $0.05PENSIONCOLLEGE DISTRICT 528 MCC 4.251192 44.75 $1,708.56 $1,738.54SCHOOL DIST 15 0.161448 1.70 $64.88 $66.02PENSIONSCHOOL DIST 15 2.151927 22.65 $864.86 $885.77SCHOOL DIST 156 0.063803 0.67 $25.64 $27.63PENSIONSCHOOL DIST 156 0.501862 5.28 $201.70 $205.21MCHENRY FIRE DIST 0.274021 2.88 $110.13 $113.98MCHENRY LIBRARY 0.000000 0.00 $1,350.82 $1,025.34MCHENRY TIF 0.103680 1.09 $41.67 $42.97MCHENRY TOWNSHIP 0.219080 2.31 $88.05 $90.86MCHENRY TWP RD & BR 0.364014 3.83 $146.30 $161.83MCHENRY CITY 0.191699 2.02 $77.04 $81.63PENSIONMCHENRY CITY Totals $4,957.46$5,168.629.499390 PENALTY PENALTY $2,584.31 Donna Kurtz - McHenry County Treasurer Make Check Payable to:McHENRY COUNTY COLLECTOR Remit payment to:P.O. Box 458, Crystal Lake, IL 60039-0458 Donna Kurtz - McHenry County Treasurer Make Check Payable to:McHENRY COUNTY COLLECTOR Remit payment to:P.O. Box 458, Crystal Lake, IL 60039-0458 34623PARCEL NUMBER / PIN 09-26-457-004 Late Payment Schedule 1ST 2ND 2,623.07 2,661.84 2,700.60 2,739.37 2,623.07 10/13 - 11/12 2,778.13 2,671.84 09/13 - 10/12 08/13 - 09/12 07/13 - 08/12 06/13 - 07/12 11/13 - 11/17 2,816.90 2,710.60 $2,584.31 MC 09T02 $2,584.31 0070 BUFFALO GROVE IL 60089- LEVATINO C MERLAK R 614 GOLFVIEW TER 1st 2 0 2 2 2nd 2 0 2 2 1 2 Parcel Number / PIN: Parcel Number / PIN: SECOND PAYMENT RECEIVEDFIRST PAYMENT RECEIVED Township Sub Lot Tax Code NO Property Class Acres or pay on-line at: treasurer.mchenrycountyil.gov or pay on-line at: treasurer.mchenrycountyil.gov $2,584.31INSTALLMENT BALANCE DUE $0.00INSTALLMENT AMOUNT PAID $2,584.31INSTALLMENT BALANCE DUE $0.00INSTALLMENT AMOUNT PAID 2022 Property Tax Bill 1st Installment 2nd Installment 06/12/2023 09/12/2023DUE BY DUE BY CHANGE OF NAME/OR ADDRESS Disabled Person Exemption - 0 Returning Veteran Exemption - 0 Assessed to: DELIGHTS ENT LLC 09-26-457-004 09-26-457-004 CHECK HERE IF CHANGING ADDRESS ON THE BACK INCLUDE THIS COUPON WITH YOUR PAYMENT INCLUDE THIS COUPON WITH YOUR PAYMENT CHECK HERE IF CHANGING ADDRESS ON THE BACK Mail to: LEVATINO C MERLAK R 614 GOLFVIEW TER BUFFALO GROVE IL 60089- Property location: 3319 W ELM ST MCHENRY, IL 60050 Legal Description: DOC 2023R0002254 SUBLT 2 LT 1 & N1/2 SUBLT 3 LT 4 /EX WLY 18.08FT/ BLK 26 MCHENRY PLAT NO 11 (WEST SIDE FOX RIVER) 168 (18) Grafton Township (16) Riley Township (13) Dorr Township (11) Marengo Township (08) Greenwood Township (06) Dunham Township (04) Richmond Township (02) Alden Township (03) Hebron Township DateSignature DateSignature CHANGE OF NAME/OR ADDRESS NEW MAILING ADDRESS STATE ZIP CODE CITY EMAIL ADDRESS PHONE NUMBER NAME NEW MAILING ADDRESS STATE ZIP CODE CITY EMAIL ADDRESS PHONE NUMBER NAME (19 & 20) Algonquin Township (14 & 15) Nunda Township (09 & 10) McHenry Township FIND YOUR TOWNSHIP ASSESSOR QUESTIONS ON YOUR ASSESSMENT? PLEASE CALL YOUR TOWNSHIP ASSESSOR. First two digits of your Parcel Number/PIN identifies your township QUESTIONS ON YOUR EXEMPTIONS OR ADDRESS CHANGES? PLEASE CALL ASSESSMENT'S OFFICE AT QUESTIONS ABOUT YOUR TAX BILL? PLEASE CALL THE COUNTY TREASURER'S OFFICE AT (815) 334-4290 (815) 334-4260 (815) 482-7964 (05) Burton Township (262) 755-8245 (07) Hartland Township (815) 338-5526 (17) Coral Township (815) 219-2430 (847) 639-2700 (815) 459-6140 (815) 923-5922 (815) 385-0175QUESTIONS ON THE TAX RATES, LEVIES, TAXES THAT HAVE BEEN SOLD? PLEASE CALL THE COUNTY CLERK'S OFFICE AT (815) 334-4242 (01) Chemung Township CHANGE OF NAME/OR ADDRESS PARCEL NUMBER/PIN PARCEL NUMBER/PIN Print Name Please be sure the box on the front is marked. Print Name Please be sure the box on the front is marked. I certify that I am the owner and authorize the above name and/or address change. I certify that I am the owner and authorize the above name and/or address change. Credit card and debit card payments are not accepted at banks. Mail:Checks can be mailed to our processing center: Phone:Call 1-877-690-3729 to access payment options above. You will be asked for Jurisdiction Code which is 2301. Banks:See our website for location of banks that accept payments. Online: treasurer.mchenrycountyil.gov E-check - FREE Visa and Master Debit Card fee - $4.00 McHenry County Collector, P.O. Box 458, Crystal Lake IL 60039-0458. In Person:Checks & Cash (no fee) or Credit & Debit Card (fees apply). Drop Box:24 Hour drop box is available outside the building. Location:2100 N Seminary Ave, Woodstock, IL 60098 Office Hours:7:30 am - 5:00 pm, Monday - Friday (12) Seneca Township Failure to receive a property tax bill does not relieve the taxpayer of penalty if payment is late. Property tax bills are mailed to the Taxpayer of Record, even if your lender is responsible for payment. According to Illinois law, all tax payments not received on or before the due date will immediately be assessed a penalty at the rate of 1.5% beginning the day after the due date. An additional 1.5% will be added each 30 days after due date. Credit Card convenience fee - 2.4% This is the only property tax bill you wil receive. HELPFUL INFORMATION CONVENIENT WAYS TO PAY (815) 943-8456 (815) 648-2720 (815) 678-2014 (815) 943-4444 (815) 648-4536 (815) 568-7120 (815) 338-0128 (815) 568-8326 (847) 669-3383 This bill includes a separate payment coupon for each installment. We do not accept partial payment. Payments returned as unpaid by your bank will be subject to $50.00 return item fee plus applicable penalties. 169 Delights Enterprises LLC Vacant Building Incentive Program This Economic Incentive Agreement (“Agreement”) is entered into by and between the City of McHenry, McHenry County, Illinois (“City”), McHenry Community Hig h School District 156, McHenry School District 15, McHenry Township Fire Protection Distri ct and the McHenry Public Library District (collectively “Taxing Bodi es”) and Delights Enterprises LLC (“Developer”). Recitals A. Whereas, the Taxing Bodies and the City have the power and authority to enter into this Agreement pursuant to the provisions of Article VII, Section 10 of the Illinois Constitution of 1970 and the Illinois Intergovernmental Cooperation Act, ILCS 220/1 et seq.; B. Whereas, 3319 W Elm Street is improved with a vacant buil ding , approximately 1,000 square foot in size; is legally described as follows, with a n assigned Property Tax Identification Number of 09-26-457-004: The Westerly Half of Lot 1 (except the Westerly 18.08 feet thereof) and the Westerly Half of the North half of Lot 4 (except the Westerly 18.08 feet thereof) in Book 26 in the Original Plat of McHenry on the West side of Fox River , a Subdivision of part of the Southeast Quarter of Section 26, Township 45 North, Range 8, East of the Third Principal Meridian, according to the Plat thereof recorded July 6, 1840 in Book B of Deeds, page 160, in McHenry County, I llinois. (“Subject Property”) C. Whereas the City of McHenry adopted the Vacant Bui lding Incentive Program for buildings which have been vacant for three or more years, to encourage their redevelopment; D. Whereas the Subject Property has been vacant for four (4) years; E. Whereas a goal of this program is to able to effectively market specifi c properties to potential investors, developers and/or businesses, which at one time contained sales and property tax producing businesses, were home to job-generating companies (but due to various circumstances have since been vacated) or have become obsolete dure to the size of the land, building or a combina tion thereof; 170 2 F. Whereas the purpose of the Vacant Building Incentive Program is to encourage reinvestment in existing improved vacant properties through a property tax abatement program instituted though multiple taxing bodies; G. Whereas the property tax abatement is for five years from receipt of Certificate of Occupancy; H. Whereas, the total 2022 Equalized Assessed Evaluation of the Subject Property is $54,410; I. Whereas, the City and Taxing Bodies desire to promote commercial growth, facilitate redevelopment and provide business retention services within the City; J. Whereas, the Taxing Bodies and the City play a vital role in achieving defendable and sustainable incentives for new development which will in turn support future tax relief for the citizens of the City; K. Whereas, the City and the Taxing Bodies mutually agree to cooperative participation with the understandi ng that either party may participate at will with any and all incentives offered to an individual business under this Agreement; L. Whereas, this Agreement is made pursuant to 35 ILCS 200/18-184; M. Whereas, the City and Taxing Bodies are taxing districts withi n Illinois; N. Whereas, the Developer proposes to rehabilitate the building on the Subject Property with all new HVAC, electric and plumbing , along with structural reinforceme nts of the existing building. O. Whereas, the City and Taxing Bodies find that Developer’s rehabilitation of the building on the Subject Property will 1) create and enhance existing and additional business opportunities within the City; 2) improve the image of the C ity; 3) increase annual property taxes of all of the Taxing Bodies; 4) create or retain job opportunities within the City; 5) further the development of adjacent area; 6) strengthen the commercial sector of the City; and 7) is generally in the best interest of each the Taxing Bodies; P. Whereas, but for the economic incentives contained in this Agreement, Developer would likely not have gone forward with the improvements to the building; and 171 3 Q. Whereas, the Taxing Bodies have worked cooperatively to promote the economic growth in the community as a whole . NOW, THEREFORE, in consi deration of the foregoing and the covenants hereinafter set forth, it is mutually agreed as follows: 1. Limitation of City Responsibilities. Other than the limited Real Estate Tax Abatement made pursuant to this Agreement, the City and the Taxing Bodies shall have no obligation to incur any expense or other liability associated with Developer . 2. Procedure for Abatement. Upon execution of this Agreement, the City shall adopt an ordinance attaching a full y executed copy of this Agreement, requesting the McHenry County Clerk to abate that portion of the real estate taxes on the Subject Property that exceed the 2022 base proportionate tax amount of the taxing bodies which totals $3,031.55. This abatement shall apply annually in each of the five years (2023-2027) after an occupancy permit is issued to Developer. (“Property Tax Abatement Term”). Thereafter, no abatement shall be applied, and the City and all Taxing Bodies shall be entitled to receive 100% of the Real Estate Tax Revenue generated by the Subject Property. 3. Clawback Provision. Developer agrees to repay all Property Tax Abatements referenced in this Agreement to the Taxing Bodies if Developer ceases its business operation in the City, at the Subject Property, during the term of this Agreement. Ceasing business operation shall be defined as the permanent closure of the building on the Subject Property for a period of six (6) or more consecutive months prior to the end of the Property Ta x Abatement Term. 4. No Other Obligations. Other than property taxes pursuant to this Agreement, the City and Taxing Bodies shall have no obligation to incur any expense or liability, share any revenue or abate any property tax associated with Developer, its business or the Subject Property. 5. Governing Law, Waiver and Notices. The laws of the County of McHenry, the State of Illinois, shall govern this Agreement and the sole and exclusive venue for any disputes arising out of this Agreement shall be the Twe nty-Second Judicial Ci rcuit, McHenry County, Illinois. Any notices required in this Agreement shall be effective when in writing and three 172 4 days after mailing by certified mail, return receipt requested, or by delivering the same in person or to any officer of such party or pri vate overnight courier, when appropriate, addressed to the party to be notified. 6. All notices to the City shall be sent to: City Administrator City of McHenry 333 S. Green Street McHenry, IL 60050 All notices to Developer shall be sent to: Cathleen Levatino C & R’s Delights, LLC 614 Golfview Terrace Buffalo Grove, IL 60089 or to such other address as a party may designate for itself by notice given from time to time to the other parties in the manner provi ded herein. 7. Remedies. In the event of a breach of any of the terms and condi tions of this Agreement, the non-breaching party shall have the right to termina te this Agreement. In addition, the non-breaching party shall have the right, by any action or pro ceeding at law or in equity, to secure the specific perf ormance of the covena nts and agreements herein contained, may be awarded damages for failure of performance, or both. The foregoing rights and remedies shall be cumulative and not exclusive. The pre vailing party in any action related to this Agreement shall be entitled to recover its reasonable attorney’s fees incurred against the non-prevailing party. 8. Entire Agreement. This instrument contains the entire agreement between the parties with respect to the transaction contemplated in this Agreement. 9. Amendment. This Agreement may not be amended, altered or revoked at any time, in whole or in part, unless such changes are agreed to in writing and signed by all of the parties to this Agreement. 173 5 10. Successors. This Agreement shall be binding on the parties, and their respective successors, assigns, heirs and legal representatives. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written. City of McHenry Developer By By Wayne Jett, Mayor Cathleen Levatino Developer By____________________________________ Richard Merlak 174 6 McHenry Township Fire Protection District Name: Signature: Title: Date: Attested: Date: 175 7 McHenry District 15 Name: Signature: Title: Date: Attested: Date: 176 8 McHenry District 156 Name: Signature: Title: Date: Attested: Date: 177 9 McHenry Public Library District Name: Signature: Title: Date: Attested: Date: 178 Depa rtment of Economic Development Douglas Ma rtin, Director of Economic Developme nt McHenry M u nicipal Center 333 Green Street McHenry , Illinois 60050 Phone: (815) 363 -2110 Fax: (81 5) 363-2173 dmartin@cityofmchenry.org www.cityofmch enry.org REGULAR AGENDA SUPPLEMENT TO: Mayor and City Council FROM: Douglas Martin, Director of Economic Development FOR: August 21, 2023, Regular City Council Meeting RE: Consideration of a Revocable and Non -Exclusive License Agreement between the City of McHenry and 3918 Main LLC and Kuzniewski Holdings LLC ATT: 1. Pictures of Surrounding Area 2. An Ordinance authorizing the Mayor ’s execution of a Revocable and Non- Exclusive License Agreement between the City of McHenry and 3918 Main LLC and Kuzniewski Holdings LLC 3. Revocable and Non-Exclusive License Agreement between the City of McHenry and 3918 Main LLC and Kuzniewski Holdings LLC 4. Permanent Easement between the Boards of Education of McH enry School Districts 15 and 156 and Hugh James Kir k. AGENDA ITEM SUMMARY: Staff has been working with the owners of the properties at 3918 Main and 3922 Main on a license agreement that would allow employees of their businesses to use the City parking lot at 3926 Main Street and cross over to 3922 Main or 3918 Main in the rear of the building and park their vehicles. The owner s of 3918 Main are proposing to open a resta urant and they are desirous of using the private all ey in between the two buildings as an outdoor seating and patio area , therefore vehicles could not pass through the alley to park in the rea r of either building at 3918 Main or 3922 Main. The alley is located to the west of 3918 Main and the east of 3922 Main. Multiple on-street spaces will be gained on Main Street as a result of the a lley being closed. ANALYSIS: The attached Revocable and Non-Exclusive License Agreement between the City of McHenry and 3918 Main and Kuzniewski Holdings LLC (owner of 3922 Main) would allow vehicles to pa ss through the City parking lot, 3926 Main, and use two dedicated parking spaces (licensed area) 179 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org to access parking in the rear of their respective buildings (where the arrow is drawn below). A dr awing attached to the agreement depicts the outdoor seating improvements that the owners of 3918 Main will be doing to their lot along with the adjacent lot at 3922 Main Street. Properties in Question The term of this Agreement is inde finite and may be terminated by either party, for any reason or no reason at all, upon 90 days written notice to the non-terminating party. Provided, however, both parties agree to only exercise their option to terminate jointly and not individually, and the City agrees not to exercise its right to terminate before October 31, 2033, unless the use by 3918 is abandoned. In researching the project staff found there is a n existing permanent easement (attached) over the west side of 3926 Main Street for the benefit of 3932 Main Street and the property at the time Hugh James Kirk owned in 1996. This was put into place preceding the sale of the 3926 Main Street school district property to the City in 1996. Staff believed since ther e was an existing permanent easement on the west side of 3926 Main Street the proposed license agreement and a ten-year provision were not unreasonable. The owners of 3918 will be 180 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org responsible for all construction costs and restoring the site /licensed area if the restaurant closes. Plans for the work will be requir ed to be submitted along with a cer tificate of insur ance. If the City Co uncil conc urs with the provisions of the attached Agreement, it is recommended that a motion be made to approve the ordinance au thorizing the Mayor ’s execution of the attached Revocab le and Non -Exclusive License Agree ment between the City of McHenry and 3918 Main LLC and Kuzniewski Holdings LLC . 181 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org Surrounding A rea View of the alley looking south towards Main Street View of back parking lot area looking southeast towards the alley 182 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org View of back parking lot area looking east 183 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org View of Licensed area looking west View of City Parking lot looking south toward Main Street 184 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org ORDINANCE NO. 23- AN ORDINANCE AUTHORIZING THE MAYOR’S EXECUTION OF A REVOCABLE AND NON -EXCLUSIVE LICENSE AGREEMENT BETWEEN THE CITY OF MCHENRY AND 3918 MAIN LLC AND KUZNIEWSKI HOLDINGS LLC 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, a nd 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 Ill inois. NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF MCHENRY, McHenry County, Illinois, as follows: SECTION 1: The Revocable and Non-Exclusive License Agreement between the C ity of McHenry and 3918 Main LLC and Kuzniewski Holdings LLC dated August 21, 2023 ,and the same is hereby approved. A complete and ac curate copy of the said license, labeled “Revocable and Non-Exclusive License Agreement between the City of McHenr y and 3918 Main LLC and Kuzniewski Holdings LLC ” is attached to this ordina nce and incorporated herein by refere nce as Exhibit “A”. SECTION 2: The Mayor and City Clerk are hereby authorized to affix their signatures as Mayor and City Clerk to said Revocable and Non-Exclusive License Agreement between the City of McHenry and 3918 Main LLC and Kuzniewski Holdings LLC for the uses and purposes therein set forth. SECTION 3: All Ordinance or parts thereof in conflict with the te rms 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. 185 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org SEC TION 5: This Ordinance shal l be in full force and effect from and a fter its passage, approval, and publication in pamphlet form as provided by law. PASSED THIS DAY OF , 2023 AYES: NAYS: ABSTAINED: ABSENT: NOT VOTING: APPROVED THIS DAY OF , 2023 MAYOR ATTEST: CITY CLERK 186 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org Exhibit “A” (Attached on Separate Document) 187 1 Revocable and Non-Exclusive License Agreement between the City of McHenry and 3918 Main LLC and Kuzniewski Holdings LLC This Revocable and Non-Exclusive License Agreement (“Agreement”) is made and entered into this June 19, 2023 (“Effective Date”), by and between the City of McHenry, 333 S. Green Street, McHenry County, Illinois, an Illinois home rule municipality (the “City”), and 3918 Main LLC (“3918”) and Kuzniewski Holdings LLC (“KH”). 3918 and KH are hereinafter collectively referred to as “Licensees”). Recitals A. 3918 owns the building located at 3918 Main Street and KH owns the building located at 3922 Main Street, both in McHenry, Illinois (collectively the “Benefitted Properties”). Private parking for the Benefitted Properties is located at the rear of the Benefitted Properties. B. The Benefitted Properties are separated by an alley which is public right-of-way. C. Pursuant to a separate agreement between the Licensees, 3918 intends to temporarily use the alley separating the Benefitted Properties as an outdoor patio, for use by patrons of 3918 (the “Patron Use”). This Patron Use will block Licensees from accessing the private parking in the rear of their buildings for their Benefitted Properties. D. The City owns the parking lot with PIN 09-26-354-019 located to the west of the Benefitted Properties (the “City Parking Lot”). The City Parking Lot abuts the private parking for the Benefitted Properties. E. To facilitate the proposed Patron Use of the alley, the Licensees desire to use a portion of the City Parking Lot consisting of two (2) public parking spaces (approximately 12 feet in width) as depicted with an arrow on Exhibit A and adjacent, on the west, to the “tie-in” reference on Exhibit B (the “Licensed Premises”) for the purpose of accessing the private parking in the rear of the Benefitted Properties area on a revocable and non-exclusive basis, pursuant to the terms outlined herein. F. The City Council has determined that execution of this Agreement is in the best interests of the City. 188 2 Now, therefore, in consideration of the promises and agreements made herein, the adequacy and sufficiency of which is acknowledged as being received by both parties, it is agreed as follows: 1. License. The City hereby issues a revocable and non-exclusive license to the Licensees to construct, maintain, and use the Licensed Premises in substantial conformance with the conceptual site plan attached hereto as Exhibit B (“Site Improvements”). No legal title or leasehold interest in the Licensed Premises shall be deemed or construed to have been created or vested in the Licensees by anything contained in this Agreement. During the term of this Agreement, the two parking spaces within the Licensed Premises will no longer be permitted to be utilized for parking and this area shall be kept open for vehicular ingress and egress to and from the Benefitted Properties through the City Parking Lot to Main Street pursuant to the terms of this Agreement. 2. Term and Termination. The term of this Agreement shall be indefinite and may be terminated by either party, for any reason or no reason at all, upon 90 days’ written notice to the non-terminating party. Provided, however, Licensees agree to only exercise their option to terminate jointly and not individually, and the City agrees not to exercise its right to terminate prior to October 31, 2033, unless the Patron Use by 3918 is abandoned. Abandonment of the Patron Area shall be deemed to occur when the alley is not used to serve patrons of 3918 for any 90 consecutive day timeframe between the months of April and November of any year as determined by the City Administrator. Written notice of termination shall be sent to the non- terminating party prior to its effective date. 3. Site Improvements. Prior to the commencement of construction of any Site Improvements on the Licensed Premises, Licensees shall provide final plans and specifications for approval by the City Administrator. All construction costs shall be paid by 3918. Any additional improvements of any kind within the Licensed Premises shall be strictly prohibited, except as otherwise approved in writing by the City Administrator. During the term of this Agreement, Licensees shall maintain the Site Improvements. 4. Removal of Site Improvements. Upon termination of this Agreement, Licensees shall, at their own cost and expense, remove all Site Improvements and fully restore the Licensed 189 3 Premises to its original condition. Licensees shall comply with all necessary building codes and all other rules, regulations and ordinances in doing so. In the event Licensees default on their obligation to fully remove the Site Improvements and restore the Licensed Premises, the City reserves the right, but not the obligation, to remove the same along with any miscellaneous property left behind and fully restore the Licensed Premises to its original condition. The Licensees shall reimburse the City for all commercially reasonable expenses incurred in removing Site Improvements and restoring the Licensed Premises. In the event the City files a lawsuit against the Licensees to recover the incurred costs of removal and restoration, the Licensees shall be further obligated to reimburse the City for all costs, including but not limited to reasonable attorneys’ fees, incurred in the prosecution of said lawsuit. 5. Indemnification. The Licensees hereby agrees to indemnify, defend, and hold harmless the City, its elected officials, its duly appointed officials, agents, employees, and representatives, from and against any and all claims, suits, settlements, actions, losses, expenses, damages, injuries, judgments, and demands arising out of this Agreement or their use of the Licensed Premises and use by their patrons, guests, licensees, or permittees. 6. Successors and Assigns. This Agreement is not assignable by Licensees and does not run with the land. 7. Public Consumption. There shall be no alcoholic beverages served and/or consumed within the Licensed Premises from the Benefitted Properties. 8. Insurance. The Licensees, or their tenants shall provide and keep in force for the benefit of the City, an insurance policy protecting the City and its employees against all claims for bodily injury or death occurring on or in the Licensed Premises for not less than $1,000,000 with respect to bodily injury, death to any one person or damage to property. Such policy of insurance shall be delivered to the City prior to any use of the Licensed Premises by the Licensees and their invitees all such policies shall contain an agreement by the insurers that the policy shall not be cancelled without at least thirty (30) days prior written notice to the City. 9. Notice. Any notices required or contemplated by this Agreement shall be sent by certified mail or via a nationally recognized private carrier (such as Fed Ex or UPS), as follows: If to 3918: Dan and Heidi Jorudd 190 4 3918 Main, LLC P.O. Box 285 McHenry, IL 60051 If to KH Denise Kuzniewski 3922 Main Street McHenry, IL 60050 If to the City: City of McHenry 333 S. Green Street McHenry, IL 60050 Attention: City Administrator With a copy to: David W. McArdle Zukowski, Rogers, Flood & McArdle 50 Virginia Street Crystal Lake, Illinois 60014 10. Conflicts of Law and Venue. This Agreement shall be governed by Illinois law without regard to its rules regarding conflicts of law. Any action to enforce this Agreement shall only be filed in the Twenty-Second Judicial Circuit, McHenry County, Illinois. 11. Entire Agreement. This Agreement sets forth all the promises, inducements, agreements, conditions and understandings between the Licensees and the City and there are no other promises, agreements, conditions, or understandings, oral or written, express or implied, between them relative thereto. This Agreement may only be amended by way of a written instrument that is signed by all Parties. City of McHenry Licensees By: By: Wayne Jett, Mayor Date 3918 Main, LLC Date By: Kuzniewski Holdings, LLC Date Z:\M\McHenryCityof\LicenseAgrmt 3918 LLC and Kuzniewski Hldgs LLC.docx 08/02/23 191 5 192 6 Exhibit B SITE IMPROVEMENTS 193 194 195 Depa rtment of Economic Dev elopment Douglas Ma rtin, Director of Economic Developme nt McHenry M u nicipal Center 333 Green Street McHenry , Illinois 60050 Phone: (815) 363 -2110 Fax: (815) 363 -2173 dmartin@cityofmch enry.o rg www.cityofmchenry.org REGULAR AGENDA SUPPLEMENT TO: Mayor and City Council FROM: Douglas Martin, Director of Economic Development FOR: August 21, 2023, Regular City Council Meeting RE: Amendments to the Façade Grant Program ATT: 1. Façade Grant Guidelines 2. June 19, 2023, City Council Meeting Minutes AGENDA ITEM SUMMARY: On October 17, 2022, the City Council adopted a new façade grant program and on June 19, 2023, the Council discussed amendments to the program . The re has been incredible interest in the program and staff wants to keep the program viable. Staff believes the program should be amended to ensure it can remain sustainable so as many businesses as possible can take advantage of the pr og ram. ANALYSIS: The new façade grant program, unlike the former grant program, is a dollar-for-dollar match, based on lineal footage of the building facing a ri ght-of-way, alley, courtyard, or the McHenry Riverwalk. The grant amounts are $10,000 (1-40 feet), $20,000 (41-80 feet), and $30,000 (81+ feet) and are meant to be an incentive for property owners to fix up their properties and make improvements to their facades, particularly along the Riverwalk. Staff is proposing to amend the program by reducing the grant amounts as follows: $10,000 (1- 40 feet), $15,000 (41-80 feet), and $20,000 (81+ feet) limiting property owners to a maximum of $20,000 every five years. Additionally, staff is proposing to focus a little more on shopping centers, including Richmond Road from Elm Street to the City’s northern boundary, and allowing funds to be utilized on an entire shopping center , such as painting and renovations but prohibiting parking lot improvements in shopping centers from being grant eligi ble. Further, staff is suggesting allowing franchise and chain businesses but only those located within a designated tax increment financing (TIF) district. To date eight grants have been approved under the new program : four on Green Street, one on Main, two on Riverside Drive, and one on Illinois Route 120. The remaining budg eted amount for FY23-FY24 is $6,573.50, based on an initial budget of $100,000 if all approved 196 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 dmartin@cityofmchenry.org grants come to fr uition. The interest level in the grant program remains high with many applications which could be submitte d at any time. RECOMMENDATION: If the City Council concu rs with staff’s analysis it is recommended the Façade Grant Guidelines be amended as stated. 197 City of McHenry Façade Grant Program Guidelines Program Objectives 1. Support the rehabilitation and renovation of exterior building facades of existing non-residential buildings in McHenry. 2. Support job creation and business development in McHenry. 3. Support the renovation of older and historic buildings in McHenry. 4. Support the improvement of exterior facades facing the McHenry Riverwalk. 5.Support the improvement and renovation of older shopping centers in the community. Program Funding Requirements Grant provides $1 of City funds for $1 of private funds for eligible expenses (100% match). Grant maximum is determined by the length of building, measured along the total linear frontage of adjacent public right of way/McHenry Riverwalk frontage, up to $20,000 per property. Building Width Maximum Grant Amount 1 to 40 feet $10,000 41 to 80 feet $15,000 81 feet + $20,000 Property owners are limited to the grant maximum amount ($20,000) every five years as of these amended program guidelines. Program Guidelines 1. Program administered through the City of McHenry Economic Development Department. 2. Grant is applicable within the following geographical areas: McHenry TIF District (see attached map); on Elm Street/Illinois Route 120 from Chapel Hill Road to Ringwood Road; on Main Street from Crystal Lake Road to Front Street; on Front Street from Illinois Route 120 to Bull Valley/Charles Miller Road and along Richmond Road from Illinois Route 120 to the City’s northern boundary . 3. Funds reviewed and distributed on a ‘first come, first serve’ basis. 4. Applications should be reviewed prior to work commencing on the project. 5. Retroactive funding requests for work completed before an application submittal will not be considered except upon staff approval. 6. Grant funds may be used for a façade which is defined as any building or structural elevation fronting a public roadway or viewable from a right-of-way (including alley and courtyard facades), for the purposes of this program. Grant funds may also be utilized for facades fronting on/facing the McHenry Riverwalk. 7. Funds are distributed only after receipts are submitted and a Cit y building inspector reviews the work. 8. National f ranchises and chains are excluded from this program except those located within a designated tax increment financing (TIF) district. 9. Funds may be utilized on an entire shopping center, which may include national franchises if the extent of the façade improvements includes the entire center façade or covers the complete frontage of the entire shopping center. 10. All labor costs paid through the Façade Grant Program must comply with the Prevailing Wage Act/Require ments. 198 Eligible Expenses * Exterior Demolition * Exterior Lighting* Exterior Construction including electric, materials, labor * Pressure Washing * Tuckpointing * Painting * Decorative Awnings *Shopping Center Façade Renovations/Painting* Permanent Exterior Site Work – Landscape, hardscape, pedestrian amenities, pergolas, etc. * Signage (if included as part of a more extensive façade renovation project) * Restoration of historical identifying features that may not be relevant to the curre nt building use (reviewed on a case -by-case basis) * Other expenses as approved by City Council • Requested expenses not specifically included in the above list will be reviewed on a case -by-case basis by the City Council Ineligible Expenses * Signage as a standalone request *Shopping Center Parking Lot Improvements * Security Cameras * Interior improvements * Design/Engineering/Professional Fees * Roof repair/replacement * Any improvement that could be removed from the building as personal property Application Submittal Process 1. Property owner to complete grant application. 2. Property owner to attach a photo of the existing façade. 3. Property owner to submit the proposed project design. Color rendering required. 4. Property owner to submit the project cost estimates by major category (design, material, labor, etc .). 5. Any other relevant information. Review Process 1. Internal Staff Review and Approval. 2. City Council Review and Approval. Payment Process 1. Applicant submits proof of payment (paid receipts) for eligible activities which will determine if appropriate match dollars have been spent. 2. A building inspection is conducted to ensure that the work has been completed according to plans submitted. 3. All labor costs paid through the Façade Grant Program must comply with the Prevailing Wage Act/Requirements. 4. Payment reimbursement request is completed and issued to applicant. 199 200 City of McHenry TIF District Boundaries 201 Main Street from Crystal Lake Road to Front Street 202 Front Street from Elm Street to Bull Valley Road 203 Elm Street from Ringwood Road to Chapel Hill Road 204 Richmond Road from Elm Street to City’s Northern Boundary 205 City of McHenry Council Meeting Minutes 6.20.23 MINUTES REGULAR CITY COUNCIL MEETING Monday, June 19, 2023, 7:00 p.m. City Council Chamber, 333 S Green St, McHenry, IL 60050 Roll Call: Mayor Jett called the roll call. Members present Alderman Santi, Alderman Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Strach, Alderman Koch, Alderwoman Miller, and Mayor Jett. Others present Attorney McArdle, Administrator Morefield, Director of Public Works Strange, Director of Community Development Polerecky, Finance Director Lynch, Director of Parks and Recreation Hobson, Director of Economic Development Martin, Chief of Police Birk, City Planner Sheriff, Deputy Clerk Johnson, and City Clerk Ramel. Pledge of Allegiance: Mayor Jett led the pledge. Proclamation: recognizing Ryan Harding’s service as Alderman of Ward 6 from January 6, 2020, through April 30, 2023. Mayor Jett read the proclamation and presented it to Ryan Harding as his family joined him for a picture in front of the council. The Council applauded his time of service. Public Comment: No public comment Consent Agenda: Motion to Approve the following Consent Agenda Items as presented: A.Ordinance Amending Title 7: Motor Vehicles and Traffic; Chapter 4: Parking Regulations, Section 7-4-9: No Parking At Any Time, of the McHenry City Code to establish “no parking” on both sides of the Front Royal Drive from Route 120 (Elm Street) to near Manchester Mall. (Police Chief Birk) C. Ordinance Amending Title 4, Business and License Regulations, Chapter 2, Alcoholic Liquor, of the McHenry City Code. (Deputy City Clerk Johnson) E.Parks & Recreation Facilities & Special Use Permit Requests; F.June 5, 2023 City Council Meeting Minutes; G.Issuance of Checks in the amount of $308,217.40; H.As Needed Checks in the amount of $369,167.83. 206 City of McHenry Council Meeting Minutes 6.20.23 2 A motion was made by Alderman Santi and seconded by Alderman McClatchey to approve Consent Agenda Item as presented: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Strach, Alderman Koch, Alderwoman Miller. 0-nays 0-abstained. Motion carried. *Clerks Note: Consent Agenda Item B. pulled by Alderman Glab. B.Ordinance Amending Title 9-4B-1 Subsection F of the McHenry Municipal Code about Wastewater Rates, increasing the sewer rate from $4.20 per 1,000 gallons to $4.37 per 1,000 gallons (residential) and $4.06 per 1,000 gallons to $4.22 per 1,000 gallons (congregate care). (Finance Director Lynch) Alderman Glab looked at the rates and thinks the rates need to be balanced one down before one goes up. Wanted to know if this item could be delayed until the next meeting. Alderwoman Bassi wanted to know the increased rates and wanted to know what they would be used for, as confirmed by Director Lynch, it would be operational with the bulk of the cost being materials and supplies including chemicals. Alderman Santi wanted to know if we pushed this item to the next meeting would Director Lynch still have time to prepare, as confirmed, the next meeting would be fine she will need them by August 1st. Alderman Koch wanted to know if the water rates had to be raised, it could be decreased to help with the increase in sewer rates per Director Lynch. Alderwoman Miller wanted to know what the average user is, about 4500 gallons. For both water and sewer, it is a .85 increase for both. Alderman Strach wanted to know what an average water main break cost could be, it would be about $5,000 + per Director Strange and then confirmed there could be up to 2-10 breaks a year possible. A motion was made by Alderman Glab and seconded by Alderman Santi to bring back Consent Agenda Item on the next Agenda/Meeting for further review: Roll Call: Vote: 5- ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Koch. 2-nays, Alderman Strach, Alderwoman Miller, 0-abstained. Motion carried. 207 City of McHenry Council Meeting Minutes 6.20.23 3 *Clerks note: Consent Agenda Item D. pulled by Alderman Glab. D. Waive the competitive bidding process and accept the low quote from AMB Roofing and Sheetmetal in the amount of $350,850 for the re-roofing of the Hickory Creek Barn. (Parks and Recreation Director Hobson) Alderman McClatchey questioned the high cost of the project, according to Director Hobson it is a huge roof and it is around the estimate that were thinking it would be. Director Hobson collected three quotes. Alderman Koch wanted to know who would be overseeing the project, and it was confirmed that staff will oversee it, per Director Hobson. Director Polerecky added it is still required to go through a permit and the building code is being followed. This conversation went on for some time and continued after the public comment. *Clerks note: There was a motion on the floor by Alderman Strach and seconded by Alderman Santi, but then the motion was withdrawn and revised per below. Public Comment: KM construction was part of the bidding process, representatives went to the podium and questioned the acceptance of bids. Victor W. spoke regarding the question that had been posed by Alderman Glab that you do not have to add plywood to the roof to comply with the manufacturer’s warranty. Next, Bridgett B. who is the tenant since last year of Hickory Hills Farm took the podium. Bridgett explained why time is a factor regarding the barn and how important it is to move forward at a quick pace, she would not want to see the barn have spontaneous combustion, especially with the 21 hours that occupy it. She asked The Council to act now. A motion was made by Alderman McClatchey and seconded by Alderwoman Miller to approve the Consent Agenda Item newly purposed: To authorize The City Staff through the City Administrators Office to provide sufficient information to the 3 bidders of Hickory Oaks Barn project, to provide new quotes by Monday, June 26th at noon. The bids are not to exceed the total amount of $350,800 with any plywood/sheeting extra provided. The lowest bidder awarded the bids must be sealed: Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Strach, Alderman Koch, Alderwoman Miller. 0-nays, 0-abstained. Motion carried. 208 City of McHenry Council Meeting Minutes 6.20.23 4 Individual Action Item Agenda: A. Motion to approve an Ordinance Annexing an Approximate 42.5-acre Unincorporated Tract of Land in McHenry County, Illinois. (Community Development Director Polerecky) Alderman McClatchey asked Director Strange about the road maintenance as well as leaf pickup. They will be incorporated with the city pick-up as well, tree trimming as well. Also asked is what the taxes would be on average for an increase in the area from Director Lynch would go up about $400 for a $200,000 home according to the 2021 stats. Alderwoman Miller explained the annexation and what happens when larger plans are halted due to those that are unincorporated. Cannot plan services when they are not part of the city. Alderman Glab wanted to know what happens to the roadways, per Director Strange there is no obligation. Per Attorney McArdle, coming up with an agreement regarding the roads will need to be reached. Alderman Glab mentioned that these comments should be revisited if the annexation appears on the agenda in the future. Would like all these comments discussed before this item comes back to The Council. *Clerks Note: Many public comments occurred during the meeting, they are also able to be viewed over the YouTube recording of the meeting. Public Comment: Pam Spain – a resident, of over 25 years is a happy Township Resident who owns her septic. Spoke about the astronomic price for them to get the pumping station if needed for the city water along with the additional taxes are also a lot for the fixed incomes of many neighbors, stating it is forced annexation. Steve Wagner- a resident that lives in a home that was occupied since 1955. He feels that this choice (annexation) is being forced and states it is not making sense to many of us that live here. This is not what they want in the neighborhood. Carol Freund- a resident, wrote a letter representing the neighborhood that was labeled and handed out to The City Council members. She had many concerns regarding the also financial challenges and wanted there to be well-informed and consider tabling the vote. John Michaels- resident echoing the statements of those above them. Very concerned about the barrier at the end of Court Street is not wanting those removed. Worried about traffic as well as children that could be injured due to the increased traffic. Shannon along with her husband- a resident as well stated that they have over 2 acres and the cost of water and sewer would cause a hardship for them as well, wanted to know what 209 City of McHenry Council Meeting Minutes 6.20.23 5 other services would be provided if annexed. Also touched upon the fact that their road is considered an alley and they are responsible for leaves and snow removal. Tad Lester- a resident, wanted to know what benefits will be offered and would like to know what those will be. Major Jett stated that questions are not answered during the public comment but there could be some discussion with staff to follow regarding those. Danielle Elward- a resident since 1957 stated that affording the water and sewer would also be a problem for her on a fixed income being retired, also asked about what will they get once this is annexed. Scott Franz –a resident, stated that the real estate value is the main concern for him, has experience in selling real estate for 30 years and knows it will affect the property value. Mona Westfall – a resident, stated that she is very angry and wanted to know how the forced annexation could even be legal, and that it would cause higher taxes. Bob Thesen- Spoke regarding being on a fixed income and owning a little house because it is what he could afford, including the taxes. Stated that additional expenses regarding this annexation could not be afforded. There are many senior citizens that are in the same situation as him. *Clerks note: A motion was made by Alderwoman Miller and there was no second the motion failed. Discussion Item Agenda: A. Conceptual Plan Presentation – Courtyards of McHenry Townhome Development. Supplement provided. (Community Development Director Polerecky) Alderman Glab asked where the visitor parking is, it is about 34 parking spaces. There are two parking spaces in the garage as well as supported by the petitioner. Asked if there could be more parking because there is only the ability to park two cars in the garage. Alderman Strach commented that the project looks great, likes that it is what we need here and also this style would be a nice addition to the town. Alderwoman Bassi wanted to know what other exits there are besides and wanted to know if the density could be lessened. There will eventually be easy access as well, as was confirmed by the petitioner. She also asked what the price point would the townhomes start at, $350,000 was confirmed to be the starting price of them. Alderwoman Miller likes the development and also thinks it is needed in town as well, not as 210 City of McHenry Council Meeting Minutes 6.20.23 6 concerned about density and would like to see more parking for guests. Alderman Santi stated that he is pretty comfortable with the project and also commented on the parking, needs those to know that access to the east will be eventually available as well. B. Proposed Reforms – City Refuse Contract Leaf Collection Service. Supplement provided. (Public Works Director Strange) Director Strange stated that Flood Brothers is proposing a bi-weekly collection, which could lead to an addendum to the contract. Flood Brothers took the podium to discuss the overview and the biggest challenge regarding the leaf collection. The equipment has doubled, for the collection. They feel that the best for the residents, the volume is not matching up as well with certain areas within the neighborhoods. They are proposing different zones with five passes in a season starting in October and then ending in the first week of December. This would also change the pick-up from every week to every other week instead. Alderman Strach wanted to know how many pieces of equipment were added, it was confirmed they added a total of 5 pieces of equipment from 2. Alderman Glab expressed his concerns with the lessening of the pick up for the leaves and feels that the promise to the residents that we would pick up each week was. Alderman Santi was reviewing the map and asking if certain days of the week where it is fanned out, just trying to understand the concept. It was confirmed it is a volume-based decision according to the map that was presented. He would like to review it over the next year. Alderwoman Miller wanted to thank Flood Brothers for their services, stating that there needs to be more communication regarding the leaves and the containers that will be taken, and unlimited yard waste is accepted. Alderwoman Bassi stated that her ward has a lot of mature trees, she talked with several residents that they are not comfortable going every other week and would like to see it go as normal and reintroduce to the contract next year instead. Alderman Koch stated that he also agrees to keep the pick-up once a week as well. Alderman McClatchey also agreed with the others regarding keeping the contract the same. C. Amendments to the Façade Grant Program. Supplement provided. (Economic Development Director Martin) Alderman Santi asked if the area that goes west on 120 is part of the program, it is confirmed 211 City of McHenry Council Meeting Minutes 6.20.23 7 by Director Martin. He also commented that this program is working and something in the budget that may be able to add more funds to it. Alderwoman Miller agrees that it has been successful and feels that there may need to be a reduction in funds for these at some point, maybe restructuring it to keep it funded. Alderman Strach thinks reducing the amounts could help us keep it stretched out a bit longer. Per the Administrator, Morefield wanted to hear the direction from the council regarding this. Staff Reports: Staff reports are provided at the first meeting of each month. Director Polerecky stated that two weeks ago Taylor Place’s constriction spring of 2024. Director Hobson Main Street Food Truck Fest this Saturday. Fiesta Days will be July 13-23 and the fireworks on the 16th at Peterson Park. The Tiny Shops will be opening the first weekend in July, and the progress is good. Alderman Santi asked about the new piers and sizing, they are 24 feet in length it was confirmed by Director Hobson, and will hopefully be completed in two weeks. Mayor’s Report: None City Council Comments: Alderwoman Bassi, a resident wanted Director Strange that the people that completed the roads over by Dartmoor stated that they were professional and had a positive experience. Executive Session as needed: A. (5 ILCS 120/2) Section 2. Open Meetings. (c) (5) Executive Session: A motion was made by Alderman Santi and seconded by Alderman McClatchey to adjourn to Executive Session at 10:13 p.m. to (5 ILCS 120/2) Section 2. Open: Meetings. (c) (5) Mayor Jett reconvened the meeting from Executive Session at 10:38 p.m. A motion was made by Alderman Glab and seconded by Alderwoman Bassi to return to an open session. Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine, Alderwoman Miller. 0-nays, 0- abstained. Motion carried. 212 City of McHenry Council Meeting Minutes 6.20.23 8 Adjourn: A motion was made by Alderman Santi and seconded by Alderwoman Bassi to adjourn the meeting at 11:24 pm. Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman McClatchey, Alderwoman Bassi, Alderman Strach, Alderman Koch, Alderwoman Miller. 0-nay-, 0-abstained. Motion carried. X Mayor Wayne Jett X City Clerk Trisha Ramel 213 Department of Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 REGULAR AGENDA SUPPLEMENT TO: Mayor and City Council FROM: Douglas Martin, Director of Economic Development FOR: August 21, 2023 Regular City Council Meeting RE: Development and Economic Incentive Agreement between the City of McHenry and Graham Enterprises, Inc., Ringwood Road Site ATT: 1. Ordinance authorizing the Mayor’s execution of an Economic Incentive to Graham Enterprise, Inc. Ringwood Road Site 2. Development and Economic Incentive Agreement between the City of McHenry and Graham Enterprise, I nc. Ringwood Road Site 3. 2018 Development and Economic Incentive Agreement bet ween the City of McHenry and Graham Enterprise, I nc. AGENDA SUPPLEMENT SUMMARY: The City Council is being asked to consider a Development and Economic Incentive Agreement between the City of McHenry and Graham Enterprise, Inc. to offset site development expenses involved in redeveloping and improving the propert y at 5520 W Elm Street. BACKGROUND: The Ringwood Road/Elm Street site has been a priority redevelopment site for t he City for numerous years and is part of its strategic redevelopment plan and is located within the West Route 120 Corridor Enhancement I nitiative. The goal of the West Route 120 Corridor Enhancement Initiative is: 214 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 1 WEST ILLINOIS ROUTE 120 CORRIDOR EN HANCEMENT INITIATIVE An economic incentive program for site development and redevelopment and infrastructure improvements to foster economic investment on West Illinois Route 120 between Meadow Lane on the east and Ringwood Road on the west! Desired goals to be achieved through this program Encourage a high-quality appearance of buildings and site design; Promote coordinated development of parcels to achieve efficient off -street parkin g and maximum utilization of land area; Stimulate private investment in upgrading existing buildings or expansion of existing bus inesses and new construction; Assemble multiple parcels f or neighborhood -oriented retail and/or service development; Make t he area more pedestrian-friendly; Provide for improvements to create safe and efficient vehicular access, minimize curb cuts, and encourage shared parking and cross-access; Establish high screening and transitional yard requirements to minimize land use conflicts between commercial and adjacent residential; Reduce blighted/conservation area attributes along the corridor; Provide for lighting or coordinated signage improvements to make t he corridor visually appealing for people wishing to patronize businesses. 2018 DEVEL OPMENT AND ECONOMIC INC ENTIVE AGREEMENT In 2018 the City Council adopted a Development and Economic Incentive Agreement with Graham Enterprise, Inc. The agreement included three properties w hich comprised the “Subject Property”: 5301 Bull Valley Road (Crystal Lake Road and Bull Valley Road); 5520 W Elm Street (Ringwood Road and Illinois Route 120); and 4410 W Elm Street (Office Building Site). In the Agreement the Ow ner was required to do the following actions by the following dates or the agreement would be null and void: 1. No later than December 31, 2020, demolish all existing buildings and structures at 5520 W Elm Street; 215 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 2 2. No later than December 31, 2019 , demolish all the buildings and structures at 4410 W Elm Street; 3. No later than D ecember 31, 2019, demolish all buildings and structures and remove all underground fuel tanks at 5301 Bull Valley Road; 4. Construct and have received a City-issued certificate of occupancy permit no later than December 31, 2020, for a new convenience st ore of not less than 4,800 square feet and fueling center at 5301 Bull Valley Rd. The owner completed all of these actions on time. As part of the agreement , the City agreed to share with the Owner a portion of the Base Sales Tax and Home Rule Sales Tax generated at the Subject Property in an amount no -to-exceed $1,000,000 or payment until December 31, 2039, whichever occurred first. There was a provision in the agreement however that the 5520 W El m site would also be included in the sales tax sharing as part of the Subject Property previously stated if a building permit had been issued and obtained by the Owner to raze the buildings and the site at 5520 W Elm reopened as a fueling station with a 4,800 minimum square foot convenience store on or before December 31, 2019. This did not happen so 5520 W Elm is now excluded in th is agreement from the definition of Subject Property to receive a sales tax incentive. As far as 5301 Bull Valley Road, the City pays the Owner three times/year 50% of the base sales tax and home rule sales tax collected by the City relating to the Subje ct Property in excess of $1,666.67/month. To date, the City has paid the Owner $279.078.66 through 4/30/23. ANALYSIS: The Owner John Graham is requesting $1,000,000 in sales tax rebates/incentives to assist in construct ing the station at 5520 W Elm St reet to mitigate his risk of building the stat ion at this time. He says he is waiting on one last it em from IDOT which he expects to receive shortly and if he does receive the incentive from the City, he will begin construction at 5520 W Elm by October of this year and build through the winter as much as practical. The site has been vacant for numerous years, formerly a fueling station, and Graham Enterprises is proposing to construct a new f ueling station with a C-Store and car wash. Staff believes $1,000,000 is an excessive amount . Alternatively, st aff is proposing a 50% base and home rule sales tax rebate over and above $2,000/month not-to-exceed a tot al of $500,000 or 10 years whichever comes first . The attached agreement for 5520 W Elm contains a provision whereby the owner must construct a new convenience store of not less than 6,057 square f eet, an auto canopy, commercial canopy, landscaping, and fueling station and a receive a Certificate of Occupancy no later than 216 Department of Community & Economic Development McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2110 Fax: (815) 363-2128 3 December 31, 2024. This is a $5 million project. The sales tax incentive agreement does not include the car wash as that was never in John Graham’s initial Phase I plan. This is an additional $5 million and t he car wash w ill most likely be constructed in a second phase in the next couple of years. The sales tax incentive would be paid to t he owner annually. This agreement of ficially removes the Ringwood Road site from the 2018 Development and Sales Tax Incentive Agreement. The City Council adopted an Economic Developmen t Strategy in 2011 and below are the evaluation criteria outlined in that policy by which requests such as sales tax rebates should be evaluated. Evaluation Criteria Each request shall be generally evaluated based on the following criteria. 1. Consist ency with the City’s Economic Development Plan and Economic Development Strategy. 2. Revenue benefit to the City. 3. Level of circumstances with the property characteristics that create ch allenges or practical difficulties regarding the development o f t he site. 4. N umber and quality of jobs produced. 5. Strong public benefit to the City. 6. The ability of the development to spur additional economic development in the area. 7. The impact of a proposed development on the existing businesses within the C ity. 8. Level of applicant’s creditworthiness and financial strength. 9. Level of compliance with approved design guidelines and development standards. Staff believes the proposed agreement is justified due to the extraordinary circumstances surrounding t he proposed redevelopment and the fact that there are many moving parts that make this a somewhat risky proposition for the developer. Revenue enhancement is certainly a large part of this development . Further, this property is a very strategic site and is located in a very key area of the City. Rebates should be considered very closely and, on a case-by-case basis which has been the policy of the Cit y Council. Staff believes the positive impacts of the redevelopment both financially, and aesthetically, and also to Cit y residents and businesses, far exceed the requested financial incentive. If the City Council concurs it is recommended the attached ordinance authorizing the Mayor’s execution of an Economic Incentive to Graham Enterprise Inc. Ringwood Road Site, be approved. 217 ORDINANCE NO. ORD- ______ AN ORDINANCE AUTHORIZING AN ECONOMIC INCENTIVE TO GRAHAM ENTERPRISE INC.—RINGWOOD RD SITE 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. NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF McHENRY, McHenry County, Illinois, as follows: SECTION 1: The City of McHenry hereby approves and authorizes the Mayor and City Clerk to sign the Development and Economic Incentive Agreement —Ringwood Rd. Site, with Graham Enterprise, Inc., a copy of which is attached hereto as Exhibit A. SECTION 2: The 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 3: This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form as provided by law. APPROVED and ADOPTED this 21st day of August , 2023. Voting Aye: Voting Nay: Absent: ATTEST: Mayor Deputy City Clerk This space reserved for Recorder’s use only. 218 1 Exhibit “A” Development and Economic Incentive Agreement Between the City of McHenry and Graham Enterprise, Inc. Ringwood Rd. Site PREPARED BY/MAIL TO: David W. McArdle Zukowski, Rogers, Flood & McArdle 50 Virginia Street Cry stal Lake, IL 60014 This Development and Economic Incentive Agreement (“2023 Graham Agreement”) is made and entered into this 21st day of August, 2023 (“Effective Date”), by and between the City of McHenry, 333 S. Green Street, McHenry County, Illin ois, an Illinois ho me rule municipality (“City”) and Graham Enterprise, Inc., an Illinois corporation, LLC, 750 Bunker Court, Suite 100, Vernon Hills, IL 60061 (“Ow ner” and such term is deemed to include Owner’s affiliate, Red Crown Investments, LLC – 138) and any successors and assigns. Recitals A. On or about April 16, 2018, the City adopted Ordinance No.18 -1867 authorizing execution of a Development and Economic Incentive Agreement last signed by the City Mayor on April 17, 2018 (“2018 Graham Agreement”). O ne of th e parcels of land referenced in the 2018 Graham Agreement related to the Ringwood Road Site described as follows: 5520 W. Elm Street, McHenry with assigned Property Tax Identification Numbers: 09-28- 251-013, 09 -28-251-015 and 09 -28-251-018, and legally described a s follows: LOTS 1 AND 2 IN AMOCO M-2 SUBDIVISION, (EXCEPT THAT PORTION OF LOT 1 TAKEN BY THE DEPARTMENT OF TRANSPORTATION IN CASE 02ED26 AND EXCEPT THAT PORTION OF LOT 2 CONVEYED TO MCHENRY COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 BY DEED RECORED AS DOCUMENT 2001R0001714) BEING A RESUBUDIVISIN OF LOTS 5 TO 9, BOTH INCLUSIVE, IN A.M. KAUFMAN SUDISIVION OF PART OF THE WEST HALF OF THE NORTHEAST ¼ OF SECTION 28, TOWNSHIP 45 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO T HE PLAT OF SAID AMOCO M-2 SUVISION RECORDED SEPTEMBER 22, 1989 AS DOCUMENT 89R031816 IN MCHENRY COUNTY, ILLINOIS. AND THAT PART OF LOT 2 IN AMOCO M-2 SUBDIVISION, BEING A SUBDIVISION OF PART OF THE WEST HALF OF NORTHEAST ¼ OF SECTION 28, TOWNSHIP 45 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED AS DOCUMENT NO. 1989R0031816, DESCRIBED AS FOLLOWS: 219 2 BEGINNING AT THE SOUTHEAST CORNER OF SAID LOT 2, THENCE NORTHWESTERLY 306.20 FEET ALONG THE SOUTHERLY LINE OF SAID LOT 2, BEING A CURVE T O THE RIGHT HAVING A RADIUS OF 3759.80 FEET, A CHORD BEARING OF NORTH 69 DEGREES 39 MINUTES 33 SECONDS WEST, A DISTANCE OF 306.12 FEET TO THE SOUTHEAST CORNER OF LANDS DESCRIBED IN DOCUMENT NO. 2009R0023311; THENCE NORTH 00 DEGREES 30 MI NUTES 47 SECONDS EAST ALONG THE EAST LINE THEREOF, 253.04 FEET TO THE NORTHEAST CORNER THEREOF; THENCE NORTH 65 DEGREES 21 MINUTES 22 SECONDS WEST ALONG THE NORTHERLY LINE THEREOF, 318.44 FEET TO THE WEST LINE OF SAID LOT 2; THENCE NORTH 00 DEGREES 33 MINU TES 56 SECOND EAST ALONG SAID WEST LINE, 46.79 FEET TO A LINE 136.14 FEET SOUTH OF AND PARALLEL WITH THE NORTH LINE OF SAID LOT 2; THENCE SOUTH 72 DEGREES 53 MINUTES 20 SECONDS EAST ALONG SAID PARALLEL LINE, 604.24 FEET TO THE EAST LINE THEREOF; THENCE SOU TH 00 DEGREES 35 MINUTES 48 SECONDS WEST ALONG SAID EAST LINE, 361.24 FEET TO THE PLACE OF BEGINNING, IN MCHENRY, ILLINOIS. (herein referenced as “Ringwood Road Site” or “Subject Property”) B. It is the intent of the parties to provide the Owner with an eco nomic incentive to develop the Ringwood Road Site pursuant to the terms of this 2023 Graham Agreement and not pursuant to the 2018 Graham Agreement. C. No later than December 31, 2024, subject to force majeure, the Owner shall construct on the Subject Property, and have receiv ed a City -issued occupancy permit, for a new convenience store of not less than 6,057 square feet, auto canopy, commercial canopy, landscaping, and fueling station (“Site Improvements”). D. It is essential to the economic and social welfare of the City that i t promotes the economic vitality of the community by assuring opportunities for development and redevelopment and sound and stable commercial growth within the corporate limits of the City. E. To make it economically feasible for the Owner to agree to success fully accomplish the Site Im provements to the Subject Property the City agrees to share with the Owner a portion of the Base Sales Tax and Home Rule Sales Tax generated by the Owner at the Subject Property in an amount not-to-exceed $500,000, in total. F. Definitions. The following definitions shall apply to terms used in this Agreement: “Base Sales Taxes” means the retailers occupation taxes and service occupation taxes received by the City, generated solely at the Subject Property and by t he Owner, from the State of Illinois pursuant to the Service Tax Act (35 ILCS 115/1 et seq.), the Retailers Occupation Tax Act (35 ILCS 120/1 et seq.), and the State Finance Act (30 ILCS 105/6z -18) (as amended), and any taxes that are enacted and imposed a s replacements ther eto. “Home Rule Sales Tax” means the home rule retailers occupation taxes received by the City, generated solely at the Subject Property and by the Owner, from the State of Illinois pursuant to the Home rule Municipal Retailers' Occupati on Tax Act (65 ILCS 5/8-11-1.1) (as said Act may be amended), and any taxes that may be enacted and imposed as replacements thereto. “City's Payment Obligation” means the City's o bligation to pay the Owner Base Sales Tax and Home Rule Sales Tax as set fort h in this Agreement . 220 3 “Commencement Date” means the first February 1 or August 1 in the year following the Owner completing all Ringwood Road Site Improvements, including receiving a Certificate of Occupanc y , and is the first date the City shall pay a Sales Tax Incentive Paym ent, as defined herein, to the Owner in accordance with the terms of this Agreement. “Event of Default” means a default under this Agreement, which remains uncured. “Gross Receipts” means as defined in the Retailer's Occupation Tax Act (35 ILCS 120/1 et seq.). “IDOR” means the Illinois Department of Revenue. “Maximum Total Payment Obligation” shall mean the total amount paid by the City hereunder as of December 31, 2033 or after the maximum total amount payable by the City hereunder if pa id, not-to-exceed $500,000, which ever event occurs first. “Sales Tax Incentive” means the payments by the City set forth in this Agreement. “Sales Tax Incentive Payment” expressed as a percentage of Base Sales Tax and Home Rule Sales Tax generated by the Owner at the Subje ct Property, during the Sales Tax Incentive years. “Sales Tax Incentive Year” means the preceding twelve -months of the calendar year. G. The parties agree that the Base Sales Tax and Home Rule Sales Tax being shared hereunder shall only be that Base Sales Tax and Home Rule Sales Tax generated in the future by the Owner not-to-exceed the Maximum Total Payment Obligation. H. The City is a home rule municipality and as such is applying that authority, pursuant to Article VII, Section 6(a) of the C onstitution of the State of Illinois of 1970, to adopt this ordinance pertaining to its government and affairs. Now therefore, in consideration of the promises and agreements made herein, the adequacy and sufficiency of which is acknowledged by the parties hereto, it is agre ed as follows: 1. Recitals Incorporated. All of the above referenced recitals are incorporated as agreement between the parties herein as if fully recited. 2. Authority . This Agreement is made and entered into pursuant to the City's home rul e powers and functions as granted in the Constitution of the State of Illinois . 3. Site Improvements. The Owner shall make the Site Improvement in the timeframe described in the Recitals to this 2023 Graham Agreement, subject to force majeure as hereinafter provided. Time is of the essence. The Owner is considering the construction of an 8,298 square foot car wash at the Subject Property and shall have the sole discretion whether to do such additional construction. 4. Removal of Ringwood Road Site from 2018 Graham Agreement. The parties hereto agree that the building structure at the Ringwood Road Site on the Subject Property was demolished and removed as required in the 2018 Graham Agreement. However, any other obligations of the City or the Owner under the 2018 Graham Agre ement relating to the Ringwood Road Site are 221 4 hereby fully amended and restated in this 2023 Graham Agreement, provided (a) the failure of the Owner to timely complete the Ringwood Road Site Improv ements or Office Building Site Improv ements as required in Section 3 of the 2018 Graham Agreement shall not terminate the 2018 Graham Agreement, and (b) the failure of the Owner to have timely caused the Ringwood Road Site to reopen as required in Section 3 of the 2018 Graham Agreement shall not terminate the 2018 Graham Agreement. Other than as provided in this Section, the 2018 Graham Agreement is unchanged. 5. Agreement to Pay/Term of Agreement/Use of Funds . Commencing on the Commencement Date, the City agrees to pay a Sales Tax In centive to the Owner in an amoun t outlined below. The City's Payment Obligation shall continue for so long as the Owner is generating, and the City is receiving, Base Sales Taxes and Home Rule Sales Taxes derived from the Subject Property . Provided, however, t he City's Payment Obligation hereunder shall expire on the earlier to occur of the following events: (a) December 31, 2033; (b) upon City’s payment of the Maximum Total Payment Obligation ; or (c) any of the Site Improvements not being timely completed in strict co mpliance with paragraph 3, above, subject to force majeure as hereinafter provided . Time is of the essence ; provided, however, in the event of any failure by the Owner to perform due to unforeseen circumstances or causes beyond such party’s reasonable control, including acts of God, war, terrorism, riot, embargoes, acts of civil or military authorities, fire, flood or accident, or inability to secure raw materials or labor based upon lack of supply, the time for performance by the Owner shall be extended by the time period of any such delay . This Agreement shall remain in effect for enforcement and accounting purposes following the expiration of the Term. The Owner also acknowledges the Sales Tax Incentive shall be utilized solely for reimbursement for act ual costs incurred for equipment, material and labor costs directly associated with the Site Improvements. After the City’s Maximum Payment Obligation is met, the City shall retain 100% of the Base Sales Taxes and Home Rule Sales Taxes generate d by the Subject Property. The Sales Tax Incentive shall be paid by the City on December 31st annually in the form of a Sales Tax Incentive Payment, to the Owner. The Sales Tax Incentive Payment shall be equal to 50% of the Base Sales Tax and Home Rule Sales Tax colle cted by the City relating to the Subject Property in excess of $2,000 per month. 6. Evidence of Equipment, Material Cost and/or Labor Expenditure . The Owner acknowledges that, prior to any Sales Tax Incentive payment distribution, the Owner shall provide the City with evidence of the Site Improvement expenditures for which reimbursement is being sought including the following information: Paid invoice(s), which includes an itemization of each equipment, material and/or labor expenditure to the extent reasonably available to the Owner; approximate dates when labor, equipment and/or material purchase was completed and/or purchased; company from which labor, equipment and/or material purchase was completed and/or purchased including name, address and federal tax identification numb er, a reference on the paid invoice(s) indicating the location of the Subject Property and a sworn affidavit from the Owner detailing the equipment, material and/or labor costs incurred. 7. Limitation of City Responsibilities . Other than the Sales Tax Incentive agreed to be made pursuant to this Agreement, the City shall have no obligation to incur any expenses or share any revenue associated with the Owner. 8. Sales Tax Reports/Accounting. The Sales Tax Incentive Payment shall be paid by the City to the Owner fo llowing the City’s calculation of the amount due for the most recently ended Sales Tax Payment Period, but not later than fifteen days (15) after the City receives the sales tax report from the IDOR (this report is generally received wit hin forty -five (45) days of the end of each Sales Tax Payment Period). This information will be used by the City in calculating the Sales Tax Incentive Payment due hereunder. The term “Gross Receipts,” as used herein, shall have the same meaning as that w hich is ascribed to it in the Retailer's Occupation Tax Act. The Owner shall maintain 222 5 and have available for inspection by the City copies of any all sales tax return, sales tax reports, amendments, proof of payment or any other Sales Tax Information filed with the State of Illinois or other appropriate governmental entity, which documents are being held available for the City for purposes of identifying Base Sales Tax and Home Rule Sales Tax Revenue collected pursuant to this Agreement. The City shall use its best efforts to promptly obtain such Sales Tax Information directly from the IDOR or the State of Illinois. 9.Confidentiality of Financial Information . To the extent permitted by law, the City shall endeavor to maintain the confidentiality of the informa tion contained in a ny financial reports submitted by the Owner and the Sales Tax information received by the City, but shall be permitted to disclose such information and documents to employees and consultants of the City as the City in its sole discretion, deems appropriate in order to monitor compliance and audit this Agreement. The Owner understands and agrees that the provisions of this Agreement and any and all payments to the Owner pursuant to this Agreement are public records. The Owner also agrees t o execute any conse nt form requested by the City and furnish such additional consent, powers of attorney or waivers as may be required by the IDOR to allow the IDOR to furnish to the City Sales Tax Information transacted by the Owner at the Subject Propert y. The City agrees to utilize Sales Tax Information obtained by it pursuant to the terms of this Agreement solely for the purpose of effectuating the provisions of this Agreement. To the extent permitted by the Illinois Freedom of Information Act and any o ther relevant laws, the City shall endeavor to keep such information confidential. The foregoing, however, shall not preclude the City from disclosing such information to the extent it is mandated to do so by court order or to the extent it makes a good fa ith determination s uch disclosure is required by law. 10.Provisions Concerning Limitation on Debt. The receipt, or anticipated receipt, of Base Sales Tax and Home Rule Sales Tax Revenue, either directly or indirectly, from the Owner's Site Improvements on the Subject Property, as provided earlier in this Agreement, shall be a condition precedent to any obligation of the City to rebate money to the Owner. 11.Prevailing Wages to be Paid. Pursuant to 820 ILCS 130/0.01 et seq., not less than the prevailing rate of wa ges as found by the City or determined by a court on review shall be paid to all laborers, workers and mechanics performing work under the contract relating to the Site Improvements on the Subject Property. Note that the prevailing rate of wages is revised by the Illinois De partment of Labor and are available on the Department's official website. 12.Special Use and Liquor Licenses . The City will support the efforts to gain a liquor license at the Ringwood Road Site. In addition, the Owner intends to apply f or a State Video Gaming License, based on the qualifications of site size and diesel island requirements. 13.No Interest; Limited Obligations . No interest shall be due on the obligations set forth in this Agreement. The Owner acknowledges that (a) the City shall not be required to make any payments of the Sales Tax Incentive to the Owner unless they have then been delivered, to the City the IDOR form Authorization to Release Sales Tax Information to Local Governments that is needed to facilitate the City's Payment Obligation; (b) the City's Payment Obligation is a limited obligation of the City payable solely out of the Base Sales Tax and Home Rule Sales Tax the City receives from the IDOR which are attributable to the gross sales generated at the Subject Pr operty after the completion of the Site Improvements by the Owner; (c) the sole source of the Owner's entitlement to payment of the Sales Tax incentive shall be the aforesaid Base Sales Tax and Home Rule Sales Tax; (d) the City's Payment Obligation shall n ot be construed as general obligation of the City; and (e) the Owner bears all risk of non -payment resulting from the permanent closure of the Owner's business operation at the Subject Property. 223 6 14. Transfer of Property; Assignment. If at any time after the Effective Date the Owner transfers the Subject Property to a third party or changes the corporate ownership/membership of the Graham Enterprise, Inc., the City shall have the right to hold any Payment Obligation due and owing in escrow until the Owner and transferee or new ow nership jointly notify the City in writing regarding who is entitled to the remaining payments and who is responsible for performing each of the Owner’s obligations in this Agreement, with sufficient documentation evidencing that the pr oposed transferee has agreed and accepted such obligations. In no other event shall the Owner assign this Agreement, in whole or in part, or any of its rights or obligations under this Agreement, without the prior express written approval of the City, which approval may be withheld in the sole and unfettered discretion of the City. 15. Notice. This Agreement shall be binding upon and inure to the benefit of the Parties. Any notices required or contemplated by this Agreement shall be sent by certified mail or via a nationally - recognized private carrier (such as Fed Ex or UPS), as follows: If to the Owner: Graham Enterprise, Inc. 750 Bunker Court, Suite 100 Vernon Hills, IL 60061 Attention: John C. Graham If to the City: City of McHenry 333 S. Green Street McHenry, IL 60050 Att ention: City Administrator 16. Default. In the event of a claimed default under this Agreement, the non -defaulting party shall provide notice of default to the defaulting party. No legal action may be commenced with respect to a claimed defa ult until thirty (30) days after said notice has passed, during which time the claimed defaulting party may cure the claimed default. This Agreement shall be governed by Illinois law without regard to its rules regarding conflicts of law. 17. Enforcement. Any action to enforce t his Agreement shall only be filed in the Twenty - Second Judicial Circuit, McHenry County, Illinois. The party who prevails in any such action shall be entitled to recover its reasonable attorney's fees from the other party. 18. Recording. The parties understan d and agree that this Agreement or a memorandum of this Agreement may be recorded with the McHenry County Recorder of Deeds. 19. Only Agreement. This Agreement sets forth all the promises, inducements, agreements, conditions and understandin gs between the Owner and the City relative to the Sales Tax Incentive and there are no other promises, agreements, conditions or understandings, oral or written, express or implied, between them relative thereto. This Agreement may only be amended by way of a written instrument that is signed by both Parties. City of McHenry Graham Enterprise, Inc. By: By: Wayne Jett, Mayor Date John Graham, President Date Z:\M\McHenryCityof\GrahamBP\Develop&IncentiveAgmtRingwood.doc 224 PREPARED BY/MAIL TO: Ryan P. Farrell ZUKOWSKI, ROGERS, FLOOD & WARDLE 50 Virginia Street Crystal Lake, IL 60014 JOSEPH J. TIRIO COUNTY, IL 2018ROO19200 06/11/2018 02:06:59 PM PAGES: 13 RECORDING FEE 33. 00 GIS FEE 15.00 ORDINANCE NO. ORD-18-1867 This document k:, being re -recorded to correct a scrivener's error to Exhibit A, Paragraph 1, Section 3 of Ordinance No. ORD-18-1867) 225 6Pu'B nlllllpllu'IIIVI JOSEPH J. TIRIO RECORD ER-MCHENRY COUNTY, IL, 201RRnn129;3 04/24/2018 10:49:53 AM PAGES: 12 RECORDING FEE 32.00 GIS FEE 15.00 This space reserved for Recorder's use only. CERTIFICATION I, Marcia M. Geraghty, do hereby certify that I am the duly appointed, acting and qualified Deputy Clerk of the City of McHenry, McHenry County, Illinois, and I do hereby further certify that the attached document is a true and correct copy of Ordinance No. ORD-18- 1867, An Ordinance Authorizing the mayor's Execution of an Economic Incentive and Development Agreement between the City of McHenry and Graham Enterprise, Inc. adopted by the City Council at its regularly scheduled meeting on April 16, 2018. I do further certify that the original, of which the attached is a true and correct copy, is entrusted to me as the Deputy Clerk of said City for safekeeping, and that I am the lawful custodian and keeper of the same. Given under my hand and corporate seal of the City of McHenry this 191h day of April 2018. Marcia M. Geraghty, Deput ity VlerkCityofMcHenry, McHenry County, Illinois Prepared by the Office of the McHenry City Clerk Mail to: Office of the Deputy City Clerk City of McHenry 333 S. Green Street 226 ORDINANCE NO.ORD-18-1867 AN ORDINANCE AUTHORIZING THE MAYOR'S EXECUTION OF AN ECONOMIC INCENTIVE AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MCHENRY AND GRAHAM ENTERPRISE INC. 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. NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF MCHENRY, McHenry County, Illinois, as follows: SECTION 1: The Development and Economic Incentive Agreement, bearing the date of April 16, 2018 between the City of McHenry and Graham Enterprise Inc. is attached to this ordinance and incorporated herein by reference as Exhibit A. SECTION 2: The Mayor and City Clerk are hereby authorized to affix their signatures as Mayor and City Clerk to said Agreement for the uses and purposes therein set forth. SECTION 3: All Ordinance 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 pamphlet form as provided by law. APPROVED and ADOPTED this 16th day of April 2018. Voting Aye: Condon, Devine, Mihevc, Schaefer Voting Nay: Curry, Glab Absent: None ATTEST: Deputy ity frk 227 Development and Economic Incentive Agreement Between the City of McHenry and Graham Enterprise, Inc. PREPARED BY/ TO: David W. McArdle Zukowski, Rogers, Flood & McArdle 50 Virginia Street Crystal Lake, IL 60014 This Economic Incentive Agreement ("Agreement") is made and entered into this day of April, 2018 ("Effective Date"), by and between the City of McHenry, 333 S. Green Street, McHenry County, Illinois, an Illinois home rule municipality ("City") and Graham Enterprise, Inc., an Illinois corporation, LLC, 750 Bunker Court, Suite 100, Vernon Hills, IL 60061 ("Owner" and such term Is deemed to include Owner's affiliates, Red Crown Investments, LLC — 137, Red Crown Investments, LLC —138, and Deep Rock Land Company, LLC-- 104) and any successors and assigns. Recitals A. The property which is the subject of this Agreement is all owned by Owner and consists of three (3) separate properties (collectively referred to herein as "Subject Property"), and Individually Identified as follows: 1. McHenry BP ("Bull Valley Rd. Site'l located at 5301 Bull Valley Road, McHenry, PIN: 14-04-401-003, legally described as follows: PARCEL 1: LOT 1 INAMOCO M-1 RESUBDIVISION, BEINGA RESUBDIVISION OFLOTS 1 AND 2INAMOCO M-1 SUBDIVISION OF PART OF THE NORTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 4, TOWNSHIP 44 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED AS DOCUMENT 95R028590, ACCORDING TO THE PLAT OF SAID AMOCO M-1 RESUBDIVISION RECORDED NOVEMBER 30, 2000 AS DOCUMENT 2000R0065740, IN MCHENRY COUNTY, ILLINOIS. PARCEL 2: EASEMENT FOR THE BENEFIT OF LOT 1 FOR INGRESS AND EGRESS AND ACCESS TO BULL VALLEY ROAD AS CREATED BY EASEMENT AGREEMENT RECORDED DECEMBER 13, 2000 AS DOCUMENT 2000R0068143, 2. Closed Gas Station & Vacant land ("Ringwood Rd. Site") located at 5520 W. Elm Street, McHenry, PINS: 09-28-251-013, 09-28-251-015 and 09-28-251-018, legally described as follows: 228 LOTS I AND 2 IN AMOCO M-2 SUBDIVISION, (EXCEPT THAT POR77ON OF LOT 1 TAKEN BY THE DEPARTMENT OF TRANSPORTATION IN CASE 02ED26 AND EXCEPT 7HAT POR770N OF LOT 2 CONVEYED TO MCHENRY COMMUNITY CONSOLIDATED SCHOOL DISTRICT 15 BY DEED RECORED AS DOCUMENT 2001R0001714) BEING A RESUBUDIVISIN OF LOTS 5 TO 9, BOTH INCLUSIVE, IN A.M. KAUFMAN SUDISIVION OF PART OF THE WEST HALF OF THE NORTHEAST % OF SECTION 28, TOWNSHIP 45 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT OF SAID AMOCO M 2 SUVISION RECORDED SEPTEMBER 22, 1989 AS DOCUMENT 89RO31816 IN MCHENRY COUNTY, ILLINOIS. AND THAT PART OF LOT 2 IN AMOCO M-2 SUBDIVISION, BEING A SUBDIVISION OF PART OF THE WEST HALF OF NORTHEAST % OF SECTION 28, TOWNSHIP 45 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED AS DOCUMENTNO, 1989R0031816, DESCRIBED AS FOLLOWS.• BEGINNINGAT 7HE SOUTHEAST CORNER OFSAID LOT 2, THENCE NORTHWESTERL Y306.20 FEET ALONG THE SOUTHERLY LINE OF SAID LOT 2, BEING A CURVE TO THE RIGHT HAVING A RADIUS OF 3759.80 FEET, A CHORD BEARING OF NORTH 69 DEGREES 39 MINUTES 33 SECONDS WEST, A DISTANCE OF 306.12 FEET TO THE SOUTHEAST CORNER OF LANDS DESCRIBED IN DOCUMENT NO. 2009ROO23311; THENCE NORTH 00 DEGREES 30 MINUTES 47 SECONDS EAST ALONG THE EAST LINE THEREOF, 253.04 FEET TO THE NORTHEAST CORNER THEREOF; THENCE NORTH 65 DEGREES 21 MINUTES 22 SECONDS WEST ALONG THE NORTHERL Y LINE THEREOF, 318.44 FEET TO THE WEST LINE OF SAID LOT 2; THENCE NORTH 00 DEGREES 33 MINUTES 56 SECOND EAST ALONG SAID WEST LINE, 46.79 FEET TO A LINE 136.14 FEET SOUTH OF AND PARALLEL WITH THE NORTH LINE OF SAID LOT 2; THENCE SOUTH 72 DEGREES 53 MINUTES 20 SECONDS EAST ALONG SAID PARALLEL LINE, 604. 24 FEET TO THE EAST LINE THEREOF; 7HENCE SOUTH 00 DEGREES 35 MINUTES 48 SECONDS WEST ALONG SAID EAST LINE, 361.24 FEET TO THE PLACE OF BEGINNING, IN MCHENRY, ILLINOIS. 3. Vacant Office Building located ("Office Building Site") located adjacent to the Elm St. Site at 4410 W. Elm Street, McHenry, PIN: 09-27-405-005, legally described as follows: LOT 3 IN BLOCK 2 IN LAKELAND SHORES UNIT NO. 2, BEING A SUBDIVISION OF LOT 'A"IN LAKELANO SHORES UNIT NO. 1, BEING A SUBDIVISION OF PART OF SECTION 27, TOWNSHIP 45PART OF 7HE SOUTHEAST QUARTER OF SEC77ON 25 AND THE NORTHEAST QUARTER OF SEC770N 36, ALL IN TOWNSHIP 45 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, CITY OF MCHENR Y, MCHENRY COUNTY, ILLINOIS. B. The City Is a home rule municipality and as such has the authority, pursuant to Article VII, Section 6(a) of the Constitution of the State of Illinois of 1970, to adopt ordinances and to promulgate rules and regulations that pertain to its government and affairs. C. In recognition of the importance to sustaining a high -quality of life for businesses and residents, it Is the City's desire to facilitate a successful business environment and assist In enhancing the long-term viability of existing and proposed businesses. D. The Owner intends to make the following improvements onto the Subject Property, collectively referred to herein as "Site Improvements": 1) no later than December 31, 2020, demolish all existing buildings and structures at the Ringwood Rd. Site; 229 2) no later than December 31, 2019, demolish all of the buildings and structures at the Office Building Site; 3) no later than December 31, 2019, demolish all the buildings and structures, and remove all underground fuel tanks at the Bull Valley Rd. Site; and 4) to construct and have received a City -issued occupancy permit, no later than December 31, 2020, for a new convenience store of not less than 4,800 square feet and fueling center at the Bull Valley Rd. Site. E. Benefits to the City include removal of dilapidated structures, added revenue and job growth, F. It is essential to the economic and social welfare of the City that it promotes the economic vitality of the community by assuring opportunities for development and redevelopment and sound and stable commercial growth within the corporate limits of the City. G. In order to make it economically feasible for the Owner to agree to successfully accomplish the Site Improvements to the Subject Property the City agrees to share with the Owner a portion of the Base Sales Tax'and Home Rule Sales Tax generated by the Owner at the Subject Property in an amount not -to -exceed $1,000,000, in total. H. Definitions, The following definitions shall apply to terms used In this Agreement: Base Sates Taxes" means the retailers occupation taxes and service occupation taxes received by the City, generated solely at the Subject Property and by the Owner, from the State of Illinois pursuant to the Service Tax Act (35 ILCS 115/1 et seq.), the Retailers Occupation Tax Act (35 ILCS 120/1 et seq.), and the State Finance Act (30 ILCS 105/6z-18) (as amended), and any taxes that are enacted and imposed as replacements thereto. Home Rule Sales Tax" means the home rule retailers occupation taxes received by the City, generated solely at the Subject Property and by the Owner, from the State of Illinois pursuant to the Home rule Municipal Retailers' Occupation Tax Act 65 ILCS 5/8-11-1.1) (as said Act may be amended), and any taxes that may be enacted and imposed as replacements thereto. City's Payment Obligation" means the City's obligation to pay the Owner Base Sales Tax and Home Rule Sales Tax as set forth in this Agreement. Commencement Date" means the first February 1 or August 1 following the Owner completing all Site Improvements, including receiving a Certificate of Occupancy for the Bull Valley Rd. Site Improvements referenced above, and is the first date the City shall pay a Sales Tax Incentive Payment, as defined herein, to the Owner in accordance with the terms of this Agreement. Event of Default" means a default under this Agreement which remains uncured. Gross Receipts" means as defined in the Retailer's Occupation Tax Act (35 ILCS 120/1 et seq.). IDOR" means the Illinois Department of Revenue. 230 Maximum Total Payment Obligation" shall mean the total amount paid by the City hereunder as of December 31, 2039 or after the maximum total amount payable by the City hereunder if paid, not -to -exceed $1,000, 000, which ever event occurs first. Sales Tax Incentive" means the payments by the City set forth in this Agreement, Sales Tax Incentive Payment" expressed as a percentage of Base Sales Tax and Home Rule Sales Tax generated by the Owner at the Subject Property, during the Sales Tax Incentive years. Sates Tax Incentive Year" means the preceding twelve -months of the calendar year I. The parties agree that the Base Sales Tax and Home Rule Sales Tax being shared hereunder shall only be that Base Sales Tax and Home Rule Sales Tax generated in the future by the Owner not -to -exceed the Maximum Total Payment Obligation. Now therefore, In consideration of the promises and agreements made herein, the adequacy and sufficiency of which is acknowledged by the parties hereto, it is agreed as follows: 1. Authority. This Agreement is made and entered into pursuant to the City's home rule powers and functions as granted in the Constitution of the State of Illinois. 2. Site Improvements. The Owner shall make the Site Improvements in the timeframes described in the Recitals of this Agreement. Time is of the essence. 3. Agreement to Pay/Term of Agreement/Use of Funds. Commencing on the Commencement Date, the City agrees to pay a Sales Tax Incentive to the Owner in an amount outlined below. The City's Payment Obligation shall continue for so long as the Owner is generating, and the City is receiving, Base Sales Taxes and Home Rule Sales Taxes derived from the Subject Property. Provided, however, the City's Payment Obligation hereunder shall expire on the earlier to occur of the following events: (a) December 31, 2039; (b) upon City's payment of the Maximum Total Payment Obligation, or c) any of the Site Improvements not being timely completed in strict compliance with paragraph 2, above. Time is of the essence; provided, however, in the event of any failure by the Owner to perform due to unforeseen circumstances or causes beyond such party's reasonable control, including acts of God, war, terrorism, riot, embargoes, acts of civil or military authorities, fire, flood or accident, or inability to secure raw materials or labor based upon lack of supply or unreasonable prices, the time for performance by the Owner shall be extended by the time period of any such delay. Notwithstanding the previously stated obligations of the City, If the Bull Valley Rd. Site Improvments are timely completed and the City commences payment of the Sales Tax. Incentive, but the Ringwood Rd. Site Improvments or Office Building Site Improvments are not timely completed, within the time frames set forth in paragraph 2, above, this Agreement shall terminate. In addition, unless a building permit has been issued by the City and obtained by the Owner to raze the buildings at the Ringwood Rd. Site and the site reopens as a fueling .station with a 4,800 minimum square -foot convenience store on or before December 31, 2019, the Ringwood Road Site shall be excluded from the definition of the Subject Property for purposes of receiving a Sales Tax Incentive hereunder. This Agreement shall remain in effect for enforcement and accounting purposes following the expiration of the Term. The Owner also acknowledges the Sales Tax Incentive shall be utilized solely for reimbursement for actual costs incurred for equipment, material and labor costs directly associated with 231 the Site Improvements. After the City's Maximum Payment Obligation is met, the City shall retain 100% of the Base Sales Taxes and Home Rule Sales Taxes generated by the Subject Property. The Sales Tax Incentive shall be paid by the City three times during each Sales Tax Incentive Year, once for the period beginning January 1st and ending April 30th, once for the period beginning May 1st and ending August 31st, and once for the period beginning September 1st and December 31" (each a "Sales Tax Payment Period"), in the form of a Sales Tax Incentive Payment, to the Owner. The Sales Tax Incentive Payment shall be equal to 50% of the Base Sales Tax and Home Rule Sales Tax collected by the City relating to the Subject Property in excess of $26,099.09 per month. I, 606.67 4. Evidence of Equipment. Material Cost and/or Labor Expenditure. The Owner acknowledges that, prior to any Sales Tax Incentive payment distribution, the Owner shall provide the City with evidence of the Site Improvement expenditures for which reimbursement is being sought including the following information: Paid invoice(s), which includes an itemization of each equipment, material and/or labor expenditure to the extent reasonably available to the Owner; approximate dates when labor, equipment and/or material purchase was completed and/or purchased; company from which labor, equipment and/or material purchase was completed and/or purchased including name, address and federal tax identification number, a reference on the paid invoice(s) indicating the location of the Subject Property and a sworn affidavit from Owner detailing the equipment, material and/or labor costs incurred. 5. limitation of City Responsibilities. Other than the Sales Tax Incentive agreed to be made pursuant to this Agreement, the City shall have no obligation to incur any expenses or share any revenue associated with the Owner. 6. Sales Tax Reports/Accounting. The Sales Tax Incentive Payment shall be paid by the City to the Owner following the City's calculation of the amount due for the the most recently ended Sales Tax Payment Period,. but not later than fifteen days (15) after the City receives the sales tax report from the IDOR (this report is generally received within forty-five (45) days of the end of each Sales Tax Payment Period). This information will be used by the City in calculating the Sales Tax Incentive Payment due hereunder. The term "Gross Receipts," as used herein, shall have the same meaning as that which is ascribed to it in the Retailer's Occupation Tax Act. The Owner shall maintain and have available for inspection by the City copies of any all sales tax return, sales tax reports, amendments, proof of payment or any other Sales Tax Information filed with the State of Illinois or other appropriate governmental entity, which documents are being held available for the City for purposes of identifying Base Sales Tax and Home Rule Sales Tax Revenue collected pursuant to this Agreement. The City shall use its best efforts to promptly obtain such Sales Tax Information directly from the IDOR or the State of Illinois. 7. Confidentiality of Financial Information. To the extent permitted by law, the City shall endeavor to maintain the confidentiality of the information contained in any financial reports submitted by the Owner and the Sales Tax information received by the City, but shall be permitted to disclose such information and documents to employees and consultants of the City as the City in its sole discretion, deems appropriate in order to monitor compliance and audit this Agreement. The Owner understands and agrees that the provisions of this Agreement and any and all payments to the Owner pursuant to this Agreement are public records. The Owner also agrees to execute any consent form requested by the City and furnish such additional consent, powers of attorney or waivers as may be required by the IDOR to allow the IDOR to furnish to the City Sales Tax Information transacted by the Owner at the Subject Property. The City agrees to utilize Sales Tax Information obtained by it pursuant to the terms of this Agreement solely for the purpose of effectuating the provisions of this Agreement. To the extent permitted by the Illinois Freedom. of Information Act and any other relevant laws, the 232 City shall endeavor to keep such information confidential. The foregoing, however, shall not preclude the City from disclosing such information to the extent it is mandated to do so by court order or to the extent it makes a good faith determination such disclosure is required by law. 8. Provisions Concerning Limitation on Debt. The receipt, or anticipated receipt, of Base Sales Tax and Home Rule Sales Tax Revenue, either directly or indirectly, from the Owner's Site Improvements on the Subject Property, as provided earlier in this Agreement, shall be a condition precedent to any obligation of the City to rebate money to the Owner. 9. Prevailing Wages to be Paid. Pursuant to 820 ILCS 130/0.01 et seq., not less than the prevailing rate of wages as found by the City or determined by a court on review shall be paid to all laborers, workers and mechanics performing work under the contract relating to the Site Improvements on the Subject Property. Note that the prevailing rate of wages is revised by the Illinois Department of Labor and are available on the Department's official website. In addition, once the project is completed Owner will provide employees who work at these locations benefits, including healthcare, 401K, profit-sharing opportunities In line with its company policy. As part of this agreement Graham Enterprise, Inc. will also pay employees a wage no lower than $10.25 per hour or minimum legal wage whichever is higher, for a term of this Agreement. 10. Special Use and Liquor Licenses. The City agrees to extend current zoning and special use permits currently granted at 4416 Elm Street to the Office Building Site which will allow expansion of the existing convenience store, fueling area and/or carwash, including vacuums and larger drive through payment center. The City will support the efforts to gain a class F3 liquor license at the Ringwood Rd. Site. In addition, the Owner intends to apply for a State Video Gaming License, based on the qualifications of site size and diesel island requirements. It is also assumed that the class F3 liquor license currently at the Bull Valley Rd. Site will remain in place after the development. The City will support these initiatives. 11. No Interest; Limited Obligations. No interest shall be due on the obligations set forth in this Agreement. The Owner acknowledges that (a) the City shall not be required to make any payments of the Sales Tax Incentive to the Owner unless they have then been delivered, to the City the IDOR form Authorization to Release Sales Tax Information to Local Governments that is needed to facilitate the City's Payment Obligation; (b) the City's Payment Obligation is a limited obligation of the City payable solely out of the Base Sales Tax and Home Rule Sales Tax the City receives from the IDOR which are attributable to the gross sales generated at the Subject Property after the completion of the Site Improvements by the Owner; (c) the sole source of the Owner's entitlement to payment of the Sales Tax incentive shall be the aforesaid Base Sales Tax and Home Rule Sales Tax; (d) the City's Payment Obligation shall not be construed as general obligation of the City; and (e) the Owner bears all risk of non-payment resulting from the permanent closure of the Owner's business operation at the Subject Property. 12. Transfer of Property: Assignment; Estoppel Certificate. If at any time after the Effective Date the Owner transfers any of the Subject Property to a third party, the City shall have the right to hold any Payment Obligation due and owing in escrow until the Owner and transferee jointly notify the City in writing regarding who is entitled to the remaining payments and who is responsible for performing each of Owner's obligations in this Agreement, with sufficient documentation evidencing that the proposed transferee has agreed and accepted such obligations. Upon such transfer and acceptance, the Owner shall have no further obligations under this Agreement, and, subject to a written request by the Owner, the City agrees to promptly deliver to a transferee and estoppel certificate with respect to certain factual matters regarding this Agreement. In no other event shall the Owner assign this Agreement, in whole or In part, or any of its rights or obligations under this Agreement without a transfer 233 of any of the Subject Property without the prior express written approval of the City, which approval may be withheld in the sole and unfettered discretion of the City. 13. Notice. This Agreement shall be binding upon and inure to the benefit of the Parties. Any notices required or contemplated by this Agreement shall be sent by certified mail or via a nationally - recognized private carrier (such as Fed Ex or UPS), as follows: If to Owner: Graham Enterprise, Inc. 750 Bunker Court, Suite 100 Vernon Hills, IL 60061 Attention: John C. Graham If to the City: City of McHenry 333 S. Green Street McHenry, IL 60050 Attention: City Administrator 14. Default. In the event of a claimed default under this Agreement, the non -defaulting party shall provide notice of default to the defaulting party. No legal action may be commenced with respect to a claimed default until thirty (30) days after said notice has passed, during which time the claimed defaulting party may cure the claimed default. This Agreement shall be governed by Illinois law without regard to its rules regarding conflicts of law. 15. Enforcement. Any action to enforce this Agreement shall only be filed in the Twenty - Second Judicial Circuit, McHenry County, Illinois, The party who prevails in any such action shall be entitled to recover its reasonable attorney's fees from the other party. 16. Recording. The parties understand and agree that this Agreement or a memorandum of this Agreement may be recorded with the McHenry County Recorder of Deeds. 17. Only Agreement. This Agreement sets forth all the promises, inducements, agreements, conditions and understandings between the Owner and the City relative to the Sales Tax Incentive and there are no other promises, agreements, conditions or understandings, oral or written, express or implied, between them relative thereto. This Agreement may only be amended by way of a written instrument that is signed by both Parties. City of McHenry By: ''fayJ , M or Date Graham Enterprise, Inc., Red Crown Investments, LLC — 137, Red Crown Investments, LLC —138, and Deep Rock Land Company, LLC — 104 By: John Gr` h , Presiden Me er Date 234 STATE OF ILLINOIS SS COUNTY OF LAKE ACKNOWLEDGEMENT a Notary Public in and for and residing in said County and State, DO HEREBY CERTIFY THAT John C. Graham, the President of GRAHAM ENTERPRISE, INC. and a Member of Red Crown Investments, LLC — 137, Red Crown Investments, LLC — 138, and Deep Rock Land Company, LLC — 104, personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that he signed and delivered said instrument as his own free and voluntary act and as the free and voluntary act of said City for the uses and purposes therein set forth. GIVEN under my hand and notarial seal this day of April, 2018. Notary Public Z:\M\McHenryCityot\Graham B P\Devetop&In centi vcAgmtGray. doc A 4' lLk& P110f)"yl--) 0-Ff=ICIAL sr/AL MELISSA QUIRKS ' NOTARY PUBLIC - STATE OF ILLINOIS MY COMMISSION EXPIRES:09t23l18 235 STATE OF ILLINOIS SS COUNTY OF MCHENRY ACKNOWLEDGEMENT i, Al E" , a Notary Public in and for and residing in said County and State, DO HEREBY CERTIFY THAT Wayne J , the Mayor of the CITY OF MCHENRY personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that he signed and delivered said instrument as his own free and voluntary act and as the free and voluntary act of said City for the uses and purposes therein set forth. GIVEN under my hand and notarial seal this / l day of April, 2018. OFFICIAL AL" Marcia M. Ge Notary Public. Stat ft&t - pb My Commission Expir s obl& public 236 Rental Housing Support Program (RHSP) State Surcharge Exemption Declaration Illinois law (55 ILCS 5/3-5018) requires that the Recorder collect a Rental Housing Support Program State surcharge for the recordation of any real estate -related document unless the entity recording the document is any State agency, any unit of local government or any school district. V4 checking this box and affixing my signature below, I hereby claim that the entity recording this document is a State agency, a unit of local government or a school district and thus claiming to be exempt from the Rental Housing Support Program State surcharge. 0 iY1-e-e nz Name of Statf agency, bnit of local government or sch of district recording this document (Please Print) CL \bj)&4 1 Name of person presenting this declaration (Please Print) Aua'_ /k e 2 /0-Z-0 Signature of person presenting this declarati Da RHSP Exemption Declaration Fonn 20170327• Ldocx 237 Department of Public Works Troy Strange, P.E., Director of Public Works 1415 Industrial Drive McHenry, Illinois 60050 Phone: (815) 363-2186 Fax: (815) 363-2214 www.cityofmchenry.org 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. DISCUSSION AGENDA SUPPLEMENT DATE: August 7, 2023 TO: Mayor and City Council FROM: Steve Wirch, Field Operations Manager RE: Operations Policy Discussion ATT: Snow and Ice Control Draft Policy Sidewalk Maintenance Draft Policy AGENDA ITEM SUMMARY: Public Works staff is bringing draft policies for Snow and Ice Control and Sidewalk Maintenance for discussion and consideration to the City Council. Upon such consideration and discussion , staff will revise the draft policies accordingly and bring the policies in front of the City Council for adoption. BACKGROUND: Since 2019, the Public Works Department has reformed its operations, structure, and budget to create resources for capital maintenance construction and put maintenance operations o n defined schedules with defined resources. These reforms have led to the creation of a reliably funded local road resurfacing program which on an annual basis is more than $2.4 million. One of the means through which these resources were generated was through staff attrition. Prior to this process , the Public Works Department performed maintenance tasks on a service request basis in which work was performed largely based upon request only and not based upon a defined standard. As the transition to this new model has occurred, staff has worked to create policies to define such standards and implement them consistently with the concurrence of the City Council. These policies are utilized to define each operation in terms of the following: 1.Operational goals 2.Implementation strategy and priorities 3.Standard of care or performance 4.Specific issues and types of services to be addressed 5.Operational resources The two operations policies which are specifically being brought forward for discussion currently are a Snow and Ice Control Policy and a Sidewalk Maintenance Policy. Each of these operations have specific topics related to the delivery of services which are covered in detail in the policy, and which 238 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. are called to the attention of the City Council as they are commonly brought to the attention of staff and the City Council during ongoing operations in the field. Snow and Ice Control Policy Items of Note: •Driveway apron requests •Prioritization of routes •Standard of care for cul-de-sacs Sidewalk Maintenance Policy Items of Note: •In-house removal and replacement capacity is limited •Funding levels for capital removal and replacement program •Maintenance policy is adapted for safety/liability and not aesthetics Based upon the feedback provided by the City Council, these draft policies will be brought back in front of the City Council for adoption. Any significant revisions requiring additional resources or types of services delivered will be included in the adopted policy only in the case that the resources for delivery of services are reflected in the City Budget. If the resources of types of services are not financially feasible at this time, then they will be reflected as such in the adopted politics. Should the decision be made in the future to provide the funding for such resources and services, the adopted policy will be revised and amendment adopted at that point in time. 239 DRAFT SNOW AND ICE CONTROL POLICY Public Works Department August 7 , 2023 240 2 Table of Contents SNOW FIGHTING PLAN .......................................................................................................................4 Weather Prediction.................................................................................................................................... 4 Alerting Snow and Ice Control Personnel .................................................................................................. 4 Plow Routes ............................................................................................................................................... 5 Plowing Policy ............................................................................................................................................ 5 Salting Policy .............................................................................................................................................. 6 Downtown Business Districts, Sidewalks, Bike Paths and Municipal Lots ................................................ 7 Desired Results .......................................................................................................................................... 7 Property Damage ....................................................................................................................................... 7 Assistance to Private Property ................................................................................................................... 8 Departure from Policy ............................................................................................................................... 8 No Duty or Right Created........................................................................................................................... 9 SNOW REMOVAL RESPONSIBILITIES ...................................................................................................9 Police and Emergency Dispatch ................................................................................................................. 9 Public Works Department ......................................................................................................................... 9 Shift Supervisors .................................................................................................................................... 9 Snow Fighters....................................................................................................................................... 10 Home and Business Owners .................................................................................................................... 10 Motorists and Pedestrians ....................................................................................................................... 11 MANPOWER AND EQUIPMENT ......................................................................................................... 12 Personnel ................................................................................................................................................. 12 Vehicles and Equipment .......................................................................................................................... 12 Spreader Calibration ................................................................................................................................ 12 Route Marking ......................................................................................................................................... 12 Contracted Services ................................................................................................................................. 13 Two-way Radios ....................................................................................................................................... 13 Driver Notification ................................................................................................................................... 13 Smart Phones ........................................................................................................................................... 13 Service Requests ...................................................................................................................................... 13 USE OF DEICING CHEMICALS............................................................................................................. 13 Spreading Chemicals ................................................................................................................................ 15 Chemical Application Guidelines ............................................................................................................. 15 Use of Abrasives....................................................................................................................................... 16 241 3 ACCIDENTS AND SAFETY ................................................................................................................... 16 Collision with Another Motor Vehicle ..................................................................................................... 17 Collision with Other Objects .................................................................................................................... 17 Requests for Reimbursement .................................................................................................................. 17 Safety ....................................................................................................................................................... 17 Drug and Alcohol Testing Procedures ..................................................................................................... 18 REFERENCES .................................................................................................................................... 18 Appendix ......................................................................................................................................... 19 242 4 SNOW FIGHTING PLAN The City of McHenry’s Public Works Department is responsible for the safe flow of traffic throughout the city’s network of streets. The City of McHenry’s current roadway system, within its corporate limits, includes about 131 center-line miles of pavement. Due to the topography of the city, these streets include many steep grades and open areas where snow accumulations caused by drifting is extensive. The se conditions present some unique obstacles and are managed primarily with three (3) snow and ice control tools: 1.Road salt may be applied before, during, and after a storm. 2.Roadway plowing is performed to remove accumulations from roadway surfaces. These three tools may be utilized in various combinations dependent upon the variables of the storm, tool effectiveness in each circumstance, and financial accountability. Weather Prediction Prediction of impending storms is imperative in the control of snow and ice. To keep staff directly aware of a storm’s impact and evolution, the Public Works Department subscribes to a live, internet-based weather radar service and a 24-hour staffed weather prediction service. In addition, local radar and weather conditions are closely monitored. These types of data access are used by the Illinois Department of Transportation (IDOT) and other local communities to provide accurate tracking of storms. Each year, the City’s storm data access potential is reviewed and adjuste d, especially as technology evolves. An impending storm warning will initiate the assignment of snow and ice control tools and tasks at the discretion of the Public Works Department’s Snow and Ice Control Supervisor. Impending storm data is also relayed to the Snow Fighters to best prepare them for deployment. Alerting Snow and Ice Control Personnel When weather conditions call for snow and ice control operations, the Public Works Department’s Field Operations Manager, his designee, or the Field Operations Supervisors will coordinate the snow fighting effort as the Snow and Ice Control Supervisor. The Snow and Ice Control Supervisor will be charged with the responsibility of keeping pertinent records of the event, responding to calls and concerns from residents, the Police Department, or NERCOM, and making all decisions related to storm management. During regular, daytime working hours, the Field Operations Manager or his designee will coordinate the snow fighting effort. Utilizing the weather prediction resources, he will track the storm as well as possible, deploy the Snow Fighters as necessary, and provide pertinent updates to field snow and ice control teams. Furthermore, an assigned Field Operations Supervisor will be deployed to the streets to appraise plowing activities and monitor progress. For those hours other than regular, daytime working hours, a designated Snow and Ice Control Supervisor will fulfill the aforementioned functions necessary to combat the winter event. More than likely, the Snow and Ice Control Supervisor will be a Field Operations Supervisor as each is assigned winter operations 243 5 responsibilities on a rotating shift basis. The Police Department can be field observers and notify the appropriate shift Field Operations Supervisor. The Snow and Ice Control Supervisor will then determine if and how many snow and ice control personnel are necessary, will contact the appropriate personnel for deployment, and will assign each Snow Fighter to designated areas or plow routes. Plow Routes To coordinate snow and ice control effectively, the Public Works Department has divided the city into eleven (11) main plow routes. Route 1 and Route 2 are considered primary routes which consist of the city’s heaviest traveled roads. The other nine (9) routes are broken up into sections that include all residential neighborhoods. Each truck is assigned a specific plowing route to maintain within the city. Plow routes are balanced according to the number of miles serviced and the time required to complete each route. This ensures that each route is completed in approximately the same amount of time. Those routes designated to, and serviced by, our largest service vehicles are between ten (10) and fifteen (15) miles long. Most all able equipment is assigned and utilized, with backup units available should units break down or the nature of the event requires additional deployment. The Illinois Department of Transportation (IDOT) generally plows and maintains the two (2) main State routes (IL Route 31 & IL Route 120) within our corporate limits. Counties and Townships that overlap our jurisdiction also manage snow and ice control routes within our corporate limits. I ntergovernmental Agreements with McHenry Township and Nunda Township are in place for certain streets for continuity of winter operations for both agencies. The downtown business districts in the City of McHenry are the responsibility of the Parks & Downtown Maintenance Department; snow and ice removal is done under the supervision of the Parks & Downtown Maintenance Superintendent or his/her designee. Plowing Policy The goal of the Public Works Department is to clear the city streets as effectively and efficiently as possible by utilizing an effective combination of snow and ice control methods. In the interest of protecting the environment and controlling costs, storm duration application of deicers will be performed sparingly , and typically only when mechanical plowing methods fail to provide desired results or when hazardous conditions exist. In order to maintain the safety of the street system that is necessary for routine travel and emergency services during a winter storm event, the following snow removal priorities have been established: • First priority is the primary snow routes. This includes arterial and main collector roadways which connect major sections of the city to provide access for emergency fire, police, medical services, schools, and commercial businesses or area bus routes. Based on the current weather prediction the two (2) primary snow routes will be given early service prior to the event to keep these roads in a passable condition for as long as possible during the onset of the event. 244 6 • Second priority is the local roadways (neighborhood and residential streets). Overnight snowplowing shifts (non-daytime hours) will be staffed in a mode which may lead to longer route intervals in neighborhood routes. • Third priority is the cul-de-sacs and dead-end streets. Cul-de-sac and dead-end street service is no longer completed with a separate shift but completed as a follow-on operation during normal business hours. Those streets most heavily traveled are the arterial and collector roadways and are therefore, considered higher on the service list of priority streets. Opening a typical street consists of making one pass with the plow in each direction. This procedure may be done on several streets before the plow returns to push back the remaining snow accumulation to the approximate curb line. If a snowstorm is extremely heavy, this procedure may be repeated many times before the streets can be cleared completely or “curb -to- curb” as it is often referred. The next order of priority is the plowing and/or deicing of the local roadways within the subdivisions. These roads are broken down into nine (9) plow routes and are generally staffed once the onset of the event occurs. In the event of minor accumulations of snow or ice that may only require the application of road salt the city will be broken into quadrants (NE, NW, SE, SW). This will allow the truck to make one pass down each city street to either center line salt or spot salt based on conditions. The final order of priority is the cul-de-sacs and dead-end streets which will be kept open by the route drivers during the storm, but due to the much smaller amount of traffic and the extended length of time necessary to clea r the cul-de-sacs and dead-end streets, final “curb-to-curb” clean-up will occur as a follow-on operation after the storm has subsided. This operation will take place during regular working hours whenever possible. In all snow removal operations, cul-de-sacs are among the greatest operational challenges and public relations issues. The amount of snow, weather conditions, and the travel time required between neighborhoods within the route may dictate the need for some modification of the plowing routines in actual practice. Salting Policy The City of McHenry’s 800-ton salt storage facility is located near the Wastewater Treatment Plant at 3200 Charles J. Miller Road. During the snow season, the Public Works Department utilizes an indoor storage area at the Public Works Facility located at 1415 Industrial Drive that can store 600 tons of road salt. This facility allows the Public Works Department the necessary reserves of salt. In the Public Works Department’s commitment to protecting the environment and controlling costs, salt is applied as sparingly as able, typically two to three hundred (200-300) pounds per lane mile as needed. With the addition of a mix of salt brine and beet heat (70% salt brine and 30% beat heat) added to the salt product, the Department has increased its ability to deal with colder temperatures, but often a combination of tire traffic and/or sunshine is needed to enhance the workability of these treatments. For this reason, cul-de-sacs are salted only in extreme cases. The increased ability to melt snow and ice is still not unlimited. Salt alone is effective to fifteen (15) degrees Fahrenheit. If street surface temperatures 245 7 drop below this temperature, salt becomes ineffective. If the salt is treated with the brine and beet heat solution, it provides the salt product the ability to be effective down to a road surface temperature of five (5) degrees Fahrenheit. For this reason, all Public Works salt capable units can apply this solution to the salt product as it is distributed upon the roadway. Finite quantities of ice control materials and/or conditions that may render ice control ineffective make for extremely difficult decisions about when, where, and how much material to apply. These decisions must ultimately rest with the Snow and Ice Control Supervisor. The Snow and Ice Control Supervisor will attempt to respond to all problem areas, but sufficient stores of material must be preserved for the more dangerous hills and more heavily traveled roadways. Downtown Business Districts, Sidewalks, Bike Paths and Municipal Lots Snow removal and/or deicing of the downtown business districts, sidewalks, bike paths, and m unicipally owned and maintained parking lots are performed by the Parks & Downtown Maintenance Department, completed at the direction of the Parks & Downtown Maintenance Superintendent or his/her designee. Future consideration may be the combination of all winter operations into one (1) operation for continuity and utilization of city assets. Desired Results All communities that publish a Snow and Ice Control Policy utilize the document to set a goal or standard for their specific winter operation. In actuality, that standard is generally a measurement of effectiveness on how quickly the roadways within the jurisdiction can be cleaned to bare pavement after all snowfall has ceased. Although the Public Works Department strives to clear all roads down to bare pavement and curb-to-curb, the Department is unable to guarantee this due to extreme conditions and limits to manpower and equipment. To that end, the Public Works Department cautiously sets the standards high but considers current limitations. The overall goal in this Snow and Ice Control Policy is to clear all roadways (from arterial to local roads) of all snow accumulation within eight (8) hours after the snow has stopped. This policy dictates curb-to-curb snow removal on all roadways with an additional standard of bare pavement on all arterial and collector roads, hills, curves, and intersections within the specified 8-hour period. Mid- block hard packed snow, bladed to a minimum thickness, is acceptable on most local roads. Ideally, this standard would be met every time. However, because of many uncontrollable variables, a truly attainable result would be to meet the standard of a 12-hour completion for 80% of the storms in any given season. Property Damage Throughout the course of operations of snow and ice removal, a certain amount of damage may occur to the parkway and City property due to the plow riding up over the curb or traveling off the pavement. The Public Works Department will repair parkway damage with the use of pulverized dirt and seed in the spring when weather permits. If the sod is rolled back in such a way that it could be restored, this repair will be done by maintenance repair crews. However, the responsibility of watering repairs will fall to the 246 8 adjacent homeowner. Damage to sod due to the inadvertent splashing of salt brine will not be treated by the City. Concerning the installation and maintenance of mailboxes, the ordinances approved by City Council are as follows: •The homeowner will be responsible for the repair and replacement of the mailbox and post if it is damaged or knocked down by the snow coming off of the plow (the windrow) and not the direct hit from the city plow. Therefore, the City of McHenry will only replace mailboxes/posts if hit directly by a city plow. (Ordinance No. MC-16-1133, Approved September 6, 2016) •The Public Works Department will assess the mailbox to determine if it was damaged by a direct hit from the city plow: o Mailboxes will be replaced or repaired with a standard rural steel mailbox unit, and posts will be replaced with a 4x4 wooden post. o The City is not responsible for any costs of repair or replacement in excess of $250.00 for damage to any mailbox. All cost reimbursements of a damaged mailbox will be made only with the presentation of sales receipts for materials used in such repair and replacement. A Check Request Form must be completed. o All labor or cost of labor to install the mailbox will be the responsibility of the owner of the mailbox. •Curbside mailboxes in the City right-of-way will be mounted on a wooden post no smaller than four (4) inches by four (4) inches and firmly secured in the ground. Use o f masonry columns and structures erected on the parkway to protect mailboxes such as large boulders, steel beams, concrete or brick structures, or similar devices are prohibited. Mailboxes and support structures will be installed within but no closer than six (6) to eight (8) inches from the edge of the street pavement or the back of the street curb if a curb exists. The bottom surface of the mailbox cannot be less than forty-one (41) inches and not more than forty-five (45) inches from the ground. Curbside mailboxes and support structures cannot be installed within ten (10) feet of the point of curvature at any street intersection. Assistance to Private Property Under no circumstances will a City employee be allowed to use a City vehicle to push, pull, or tow a private vehicle. The City employee should notify the Snow and Ice Control Supervisor if there is any possibility of a hazard. Likewise, under no circumstances should a City vehicle be used to clear snow from private or commercial property, and no employee is allowed to use privately-owned equipment during working hours. This includes the removal of snow from driveway aprons, private residential sidewalks and multi - use paths. Departure from Policy In recognition of the possibility of unusual or unexpected conditions, the City authorizes departure from these general policies. In extreme cases where conditions warrant, the Public Works Director in consultation with the City Administrator or his/her representative may order departure from these general rules. 247 9 No Duty or Right Created The purpose of this policy is to establish goals for snow and ice control. It is not to be construed to create any duty to any individual or entity. The policy does not provide or promise any special protection or service to any particular individual or group of individuals. No additional rights shall be granted to any individual or entity by adoption of strikes, equipment breakdown, weather conditions, inadequacy of equipment, state or federal regulations, shortage of personnel, and any unforeseen, u ncontrolled, or unanticipated acts. SNOW REMOVAL RESPONSIBILITIES Responsibility for snow and ice control is shared by everyone throughout the City of McHenry. The most efficient snow removal plan requires coordination of all City personnel as well as the cooperation of local businesses and residents. Police and Emergency Dispatch The Police Department and Northeast Regional Communications Center (NERCOM) perform an important and integral role in the snow fighting operation. Their critical functions include: •Notifying the Public Works Department when street conditions become slippery and dangerous (especially when this occurs after-hours) and weather conditions change unexpectedly. •Assisting in keeping streets clear of parked vehicles during snow removal. The Snow and Ice Control Policy cannot be successful without complete coordination and commitment between the Police Department, NERCOM, and the Public Works Department. The Police Department and NERCOM’s commitment in assisting to ensure safer roads and motorist safety will make the Public Works Department’s snow and ice removal operations timelier, more efficient, and that much stronger. Public Works Department All Public Works staff is considered an important part of the snow and ice control efforts of the City of McHenry and all staff is expected to participate in this important aspect of public work. Shift Supervisors For the purpose of managing snow and ice control responses, Field Operations Supervisors are assigned responsibility for snow and ice control events on a rotating shift basis. During a snow event, the Shift Supervisor will be the Snow and Ice Control Supervisor and will be charged with the responsibility of keeping pertinent records of the event, responding to the calls and concerns from residents, the Police Department, or NERCOM, and making all decisions related to managing the storm. The Supervisor will also be expected to patrol the city during the snow fighting operation to look for problem areas, assist where and when needed, and stay in constant communication with the Snow Fighters to determine progress of the snow removal effort. When a storm can be handled simply by salting, the Shift Supervisor will be responsible for determining if and how many snow and ice control 248 10 personnel are necessary, will contact the appropriate personnel for deployment, and will assign each Snow Fighter to designated areas or plow routes. Snow Fighters For the purpose of this Snow and Ice Control Policy, there are two (2) designated shifts of Snow Fighters. The shift times are 7:00 a.m. to 11:00 p.m. and 11:00 p.m. to 7:00 a.m. When snow events occur during the regularly scheduled workday, Field Operations personnel will be responsible to fill all snow routes with Snow Fighters. The period of time from November 15th through March 31st is considered “snow removal months” per the Collective Bargaining Agreement. Prior to November 15th every year, each Snow Fighter in the Public Works Department will be notified of his/her shift, assigned route, and assigned truck with snow removal equipment. It may be required during certain events that personnel may need to be reassigned to another shift, route, and/or truck to fill each designated plow route with operable equipment. Each driver will be responsible for general maintenance of trucks and equipment and will help do minor rep airs as needed. The Snow and Ice Control Supervisor may assign the driver to another truck if the repairs are not minor and require too much time and effort to get the truck back on the road during a winter event. When a Snow Fighter finishes his/her assigned area, he/she will check with the Snow and Ice Control Supervisor for reassignment until all plow routes are completed. The snow and ice operation is a collective effort and is not considered complete until all streets are cleared of snow, curb-to-curb, intersections are pushed back for visibility, and all critical municipal properties are accessible. When the snow and ice control operation is completed per the Snow and Ice Control Supervisor, Snow Fighters shall wash the salt off the outside of the trucks, remove any trash and debris from the interior of the truck’s cab, and make sure the trucks are loaded with salt and fuel, if necessary, for any more predicted storms. If no further winter weather is anticipated, the trucks should be left clean and empty of salt, making sure that the auger, spinner, and box are completely free of salt and residue and that the pre - wetting equipment has been purged and washed as required. Once the Snow Fighter’s truck has been stowed properly, the driver shall check in with the Snow and Ice Control Supervisor prior to leaving for home. Home and Business Owners Snow and ice control policies are valuable tools adopted by Public Works’ agencies to define snow and ice removal standards for city rights-of-ways under its direct control. However, the operation is only partially successful if it is not supported with a cooperative effort from each resident and business owner within the community. Home and business owners must always refrain from depositing snow or ice from private property or public aprons on to streets or alleys. This practice creates an unnecessary hazard for motorists and pedestrians and costs additional expenses to dispatch drivers back into areas to remove such deposits. 249 11 Motorists and Pedestrians The Public Works Department demands that its Snow Fighters follow all the rules of the road at a minimum and take extra caution as conditions and situations demand. The motorist, on the other hand, may be at the end of an already long commute and wants nothing more than to get home and not to be caught behind a “lumbering” plow truck. Poor decisions on the part of motorists to pass, tailgate , and even cut- off a snowplow vehicle often create considerable danger for the motorist and the plow driver. Snow Fighters must always be aware of the road around them and be ready to defend against mistakes and random acts of indiscretion by the motoring public. It is in everyone’s best interest for snow and ice removal to be completed as quickly and safely as possible. The best decision a motorist can make in a winter storm situation is to not be a motorist at all. Stay home whenever possible until the road conditions allow for safe travel. When driving during a winter storm is a must, please remember to use extra caution and leave plenty of additional time to reach one’s destination; rushing in treacherous conditions is always a mistake. Motorists are asked to adhere to the following: •Maintain a safe distance between snow removal equipment and your vehicle. •Give snow removal equipment the right-of-way whenever possible. •Never attempt to pass snow removal equipment on a City roadway! The only safe time to pass a plow vehicle is on a multiple-lane highway when there is an open travel lane to the left side of the equipment. When passing snow removal equipment, check to make sure that the driver is aware of your presence and that you leave sufficient distance from the equipment to your vehicle before moving back in front of the plow. •Do not use high beams when driving behind snow removal equipment as the bright light can shine in the driver’s side mirror and interfere with the operator’s vision. •Do not park on City streets overnight or when snow accumulation exceeds 2 inches. •Residents should keep all vehicles in private driveways. •Snowmobiles and all-terrain vehicles are prohibited from being operated on City roadways and properties. The dim lighting and erratic operation of such vehicles can easily confuse a plow driver and presents an unnecessary hazard for all concerned. Pedestrians, particularly children, should observe the following precautions in winter storm conditions: •Walk during the daylight hours whenever possible. If walking at night, wear bright or reflective clothing to stand out against the surroundings. Do not walk during blowing and severe conditions when visibility is decreased. Stay back from roadways, use designated sidewalks and bike paths, and where possible, use walking routes with less roadway traffic. •Shovel snow to the right side of your driveway (as you face the street). This will limit the amount of snow that the plow deposits in the driveway apron when the streets are cleared of snow. The pile of snow being on the right side of the driveway will not block site lines from oncoming traffic moving along your street. For everyone’s safety, stockpile snow as far away from the curb line as practicable. •Discourage children from playing on and around snow piles near the street. Backyards are the best location for children during and after winter storms, particularly when snow removal operations are underway. 250 12 MANPOWER AND EQUIPMENT The Public Works Department continues to monitor and assess its Snow and Ice Control Policy in an effort to consistently improve practices, policies, and procedures and to provide the most effective and responsible service to our citizens. Personnel As previously stated in the section of this document titled Snow Removal Responsibilities, snow and ice control operations are the responsibility of every employee of the Public Works Department, as required. Vehicles and Equipment Various equipment is assigned to manage the city-wide snow and ice removal effort. To prepare for the winter season, every year during the month of October, City Fleet Maintenance personnel inspect, repair, and otherwise prepare all snow removal equipment for service. Snowplows, salt spreaders, and spreader boxes shall be attached to the trucks, calibrated, and tested no later than November 1st of each year. Once all equipment has been inspected, mounted, tested, and certified as ready for operation, the Snow Fighters shall operate the vehicles over their routes on a dry run, in good weather, to ensure that it is ready for service when the weather turns foul. This testing of equipment typically takes place as part of the annual snow and ice control training meeting held every October. Any equipment failures or suspected problems should be written up and reported immediately to Fleet Maintenance via current work order submission processes. Repairs should be initiated as soon as possible and the equipment will be retested. Spreader Calibration No later than November 1st of each year, every salt spreader will be calibrated, and the calibration settings will be loaded into the current computer operating system in each truck. Calibration is essential for controlling application rates; different materials will spread at different rates, so spreaders should be calibrated with the material intended to be used. Each spreader must be calibrated separately becaus e even the same model spreaders can vary widely in their performance and spreading capacity. Spreaders operate in a very hostile climate (low temperatures, excessive moisture, and corrosive chemicals) so they must be cleaned and checked regularly to guarantee proper operation. For a detailed discussion of calibration and instructions on how to properly calibrate a salt spreader, refer to the section of this document titled Use of Deicing Chemicals. Route Marking When Snow Fighters perform their annual dry runs, they should be familiarizing themselves with their designated route course and looking for any potential problems that will not be apparent when the roadways are blanketed with snow. Both rotating shift route drivers should drive their assigned route together with the specific route’s sheets and maps and discuss the most efficient and effective method for attacking the plow route. Any proposed changes to the route, in order of priority, should be recorded 251 13 on the route sheet and discussed with the Field Operations Manager following the dry run. Approved changes can then be made to the route sheets and maps, only with the concurrence of the Shift Supervisors. Plowing hazards should be noted during the dry run, marked on the route map, and recorded in a list for future reference by any substitute or alternate driver(s) who may need to plow that particular route. Such hazards may include raised manholes, broken curbs, offset intersections, vertically shifted pavement, potholes, bridge approach expansion joints, and any number of other roadway anomalies that could unexpectedly catch a plow blade during an actual snow removal operation. These areas of concern should be reported to Shift Supervisors for possible future correction. Contracted Services The City of McHenry reserves the right to contract snow removal services and/or routes if necessary. Two-way Radios All trucks are outfitted with two-way radios for communicating between drivers, the Snow and Ice Control Supervisor, and the Public Works Department office during snow plowing operations. Driver Notification Each Public Works’ field employee is required to have a phone number on record. In the event that the phone number is changed, it is the responsibility of the employee to notify the Field Operations Manager. The Shift Supervisor will use the number on record to contact the Snow Fighter to inform him/her of his/her need to report to the Public Works Facility for winter operations. Smart Phones In addition to trucks being equipped with two-way radios, the Director of Public Works, Field Operations Manager, and Shift Supervisors have smart phones to enhance communication during a snow or ice event. These devices have many different venues of communication allowing for expedited services and are vital for calling in truck repairs from the field, requesting towing services, and communicating directly with City offices. Service Requests The Public Works Department has a digital phone system with voicemail capability. The main number for the public to contact with snow-related concerns or questions is (815) 363-2186. This number is staffed by City Administration personnel Monday through Friday from 8:00 a.m. to 5:00 p.m. Additionally, the public may also submit requests and concerns via the City’s website under “Service Requests” in the top toolbar. Adequate response to each request will be provided by either ensuring that the problem is resolved or by contacting the caller/user personally to provide information relative to the concern. USE OF DEICING CHEMICALS 252 14 The City of McHenry contracts to purchase rock salt (sodium chloride) t hrough a joint purchasing agreement, private supplier, or other consortium as current season pricing dictates. Salt has proven over time to be the fastest, cheapest, and most effective deicer for winter pavement management. Most Public Works Managers agree that they “are not in the snow plowing business but are in the ‘bond breaking’ business and rock salt is the product of choice to make them successful in that venture.” In addition to being an effective deicer, rock salt is also an abrasive that provides improved traction for vehicle tires when applied to road surfaces. Once bonded to pavement, ice cannot be removed by plowing without damaging the road surface or plowing equipment. Salt is used as a deicer because it lowers the freezing point of water. I t is usually applied in conjunction with plowing because it will penetrate snow and ice left on the pavement. Brine prevents water from freezing into ice and bonding to the pavement. Salt must sometimes be used alone when there is insufficient snow accumulation to permit plowing. The action of vehicle tires passing over brine and hard snow or ice will break up surface ice and gradually move it toward the pavement’s edge. Most ice storms and snowstorms occur between twenty -six and thirty-two (26-32) degrees Fahrenheit. Often after the storm concludes, high pressure weather systems move into the Chicagoland area and temperatures drop dramatically, sometimes reaching well below zero (0) degrees. Therefore, it is important to apply salt early in the storm when it will be most effective as a melting agent and will prevent ice and hard packed snow from bonding to the pavement. Rock salt is effective down to a temperature of fifteen to twenty (15-20) degrees Fahrenheit and, if it is pre-wetted with a mix of seventy (70) percent salt brine and thirty (30) percent beet juice, it is effective in melting ice down to approximately three (3) degrees Fahrenheit. The City of McHenry has twelve (12), sixty-five to one-hundred (65-100) gallon pre- wetting units. Additionally, the City has one (1) 10,000 gallon final storage tank as well as one (1) 3,500- gallon tank for beet heat. These products can be mixed as needed. The application of the liquid products (salt brine and beet juice) is done by a spray bar, directly sprayed on the rock salt as it leaves the salt spreader and just before it is distributed on the roadway surface. These systems utilize a chemical feed pump that is calibrated to apply the exact volume of liquid to the proportionate quantity of rock salt being applied to the roadway. The electronically controlled hydraulic salt spreaders that the Public Works Department utilizes have the capability to control both an on-board pre-wet system and the salt spreader simultaneously, based on the relative ground speed of the vehicle. Pre-wetting the salt improves ice-melting capacities in several ways. First, it supplies moisture to the rock salt, speeding the melting process. Second, it causes the rock salt to stick to the ice, snow, and pavement instead of being thrown off the road, thereby eliminating waste. Finally, the chemical properties of pre- wetting products cause it to melt snow and ice at lower temperatures than rock salt alone. The purpose of a good Snow and Ice Control Policy is to make the roadways safe and passable for the motoring public and emergency service vehicles; however, there is a general awareness that some ice melting products have a negative environmental impact on nearby soils, vegetation, and waterways. Additionally, some products may also have corrosive effects on vehicles and distribution equipment. Therefore, it is the City’s policy to consistently review its application products and rates to ensure the 253 15 highest quality of program results, while being sensitive to the effects these products may have on the environment and equipment assets. Spreading Chemicals Chemicals are usually applied as soon as there is a definite indication of snow sticking to the pavement or the formation of ice. The initial application is very critical because the promptness of the application and the amount of chemical applied will determine if the snow will stick to the pavement. When the pavement is wet, it may be practical to make a chemical application slightly ahead of the storm to speed the melting process and to prevent the development of slippery conditions. Caution should be exercised in the use of chemicals during periods of extreme temperature drops because slush and brine may refreeze (known as “freeze back”). When precipitation has stopped, all slush should be plowed promptly from the road surface. Anti-icing efforts involve applying liquid chemicals to the pavement prior to the storm’s arrival. There are a couple of ways this is done. The most common, longest lasting, and cost effective is to app ly the salt brine/beet juice liquid to the roadway at a rate of forty (40) gallons per lane mile, utilizing a truck - mounted boom sprayer system. This liquid will dry and remain on the pavement ready to work for up to three (3) days without reapplication. The other way is to apply pre-wetted salt to the roadway. Pre- wetting helps to hold the salt to the pavement; it begins working as soon as the storm begins. However, this can only be done a few hours ahead of a storm. Both applications start to melt the sn ow as soon as it begins and prevent the snow and ice from bonding to the pavement. Chemical Application Guidelines Because air temperature, type of precipitation, and road surface condition affect snow fighting operations, the following guidelines have been instituted to assist with the decision-making process concerning chemical applications: CONDITION 1 Temperature near thirty (30) degrees Fahrenheit; precipitation of snow, sleet or freezing rain; road surface is wet. • If snow or sleet, apply wetted salt at a rate of one-hundred (100) pounds per lane mile. If snow and sleet continue and accumulate, plow and salt simultaneously. • If freezing rain, apply wetted salt continuously at a rate of two-hundred (200) pounds per lane mile. If rain continues to freeze, reapply salt at a rate of two-hundred (200) pounds per lane mile, as required. CONDITION 2 Temperature below thirty (30) degrees Fahrenheit or falling; precipitation of snow, sleet, or freezing rain; road surface is wet or sticky. • Plow snow and apply salt at a rate of two-hundred (200) pounds per lane mile depending upon accumulation rate. • If freezing rain, continually apply wetted salt at a rate of two-hundred to three-hundred (200-300) pounds per lane mile. 254 16 CONDITION 3 Temperature below twenty (20) degrees Fahrenheit and falling; precipitation is dry snow; road surface is dry. • Plow as soon as possible. Do not apply salt. Continue to plow and check for wet, packed, or icy spots and treat them with wetted salt applications at a rate of two-hundred to three-hundred (200-300) pounds per lane mile. CONDITION 4 Temperature below twenty (20) degrees Fahrenheit; precipitation of snow, sleet, or freezing rain; road surface is wet. • Apply wetted salt at a rate of two-hundred to three-hundred (200-300) pounds per lane mile, as required. If snow or sleet continues and accumulates, plow and salt simultaneously. If temperature starts to rise, apply salt at a rate of two-hundred to three-hundred (200-300) pounds per lane mile and wait for wetted salt to react before plowing. Continue until safe pavement is obtained. CONDITION 5 Temperature below ten (10) degrees Fahrenheit; precipitation of snow or freezing rain; road surface has accumulation of packed snow or ice. • Apply wetted salt at a rate of two-hundred to three-hundred (200-300) pounds per lane mile, or utilize salt treated abrasives (anti-skids) at a rate of one-hundred fifty to two-hundred (150-200) pounds per lane mile. When snow or ice becomes mealy or slushy, begin plowing. Repeat applications and plowing, as necessary. Use of Abrasives The Public Works Department stockpiles torpedo sand for the purpose of providing traction control during severe situations and extreme cold when rock salt and other deicers become mostly ineffective. Use of abrasives will also be initiated should the stockpile of rock salt diminish during extended snow and ice control operations or should suppliers of rock salt not be able to keep up with the City’s demand. The spreading of abrasives for traction control will be kept to a minimum due to numerous problems and hidden costs related to its use. Sand is an inert substance and will not breakdown and dissolve in the environment. While a layer of sand may improve traction in snow and ice conditions, the thin layer of sand left after snow and ice melts can alter the traction on the roadway surface and must be cleaned up directly. A buildup of abrasives can smother roadside vegetation, silt up waterways, and block drainage. The cost of sweeping abrasives off roadways and from curb lines and the time required to vacuum these materials from catch basins tend to make their use less attractive. Therefore, for the purpose of this policy, abrasives remain a last-ditch effort in maintaining our streets in a safe and passable condition during winter weather situations. ACCIDENTS AND SAFETY 255 17 Collision with Another Motor Vehicle If an employee is involved in an accident while driving a city-owned vehicle, he/she must contact the Shift Supervisor immediately. The supervisor should be notified of any injured victims. The supervisor will contact the Police Department to request that the police and, if necessary, the paramedics respond to the scene. The employee should make sure that any injured persons are comfortable and protected from traffic; however, do not move an injured person. Reassure the person(s) that a rescue vehicle will be arriving shortly. Do not move vehicles unless directed by the Police or a Public Works Supervisor. Write down any details of the accident that you can remember while waiting for the police to a rrive. For insurance reasons, do not discuss the accident with the other party. The Shift Supervisor should notify the Field Operations Manager, Public Works Director, and Human Resource Director of the incident as soon as possible. A complete accident report will have to be completed per the City of McHenry’s current Accident/Injury Reporting Policy. If any parked vehicle is struck, the same procedures will apply. As CDL drivers, Snow Fighters are subject to the City policy on accidents by CDL drivers in relation to drug testing and procedure. This policy will be followed in any incident that occurs. Collision with Other Objects If garbage cans, mailboxes, or other such small objects are damaged by City snow and ice removal equipment, the Snow Fighter shall document the occurrence and submit the information to the Shift Supervisor at the next convenient moment, but no later than the end of the shift. Information provided should include the address, the time the damage occurred, and an explanation of what ha ppened. If the damage involves matters other than minor incidental snow and ice control incidents, the situation must be immediately communicated to the Shift Supervisor. Requests for Reimbursement If a resident inquires about damage to his/her property potentially caused by a snow fighting effort, this information shall be relayed immediately to the Shift Supervisor. The information shall include the complainant’s name, address, phone number, and a summary of the claim. The Shift Supervisor will investigate the claim, make the appropriate notifications to the Field Operations Manager, Public Works Director, and Human Resources Director, file appropriate paperwork, and ensure timely follow-up with the resident. Safety The following safety procedures shall be followed: 1. Prior to operation, Snow Fighters will always thoroughly inspect vehicles and equipment. 2. Snow Fighters shall report all mechanical problems to their supervisor immediately. 3. Snow Fighters shall obey all traffic laws and will not exceed the speed limit, will not use excessive speed, and will be certain to stop for all stop signs and traffic signals. 4. Snow Fighters shall be as helpful and courteous as possible to those who are stranded or those stuck in the snow. Snow Fighters shall not pass up a stranded motorist without offering some type of assistance or ensuring that help is on the way. In an effort to ensure the safety of the motorist, Snow Fighters shall immediately notify the Snow and Ice Control Supervisor if the situation requires Police or Fire Department response. Snow Fighters shall not risk injury by attempting to 256 18 manually push a vehicle out of the road. Snow Fighters shall never use a City vehicle to push or pull a privately-owned vehicle that has become stuck or stranded. 5.Plowing speeds shall not exceed fifteen to twenty (15-20) miles per hour. Twenty-five (25) miles per hour is allowed on outskirt streets away from residences. Plowing speed along the curb should be reduced to ten (10) miles per hour. Salt spreading speed should not exceed twenty (20) miles per hour. Driver performance must ensure the safety of the public and the diligent minimization of potential damage to City equipment. 6.As a matter of policy, no Public Works snow and ice control driver shall drive for more than sixteen (16) hours without at least eight (8) hours off of work. Drug and Alcohol Testing Procedures Drug and Alcohol testing is performed per the City’s current Drug and Alcohol Testing Policy. REFERENCES Due to the fact that drivers, routes, maps, and policies are reviewed and adjusted with frequency, they are not included in this document but are available upon request. 257 Appendix 258 1 DRAFT SIDEWALK AND CURB POLICY Public Works Department August 7 , 2023 259 2 Table of Contents Operation Definition & Purpose .........................................................................................................3 Description of Assets ................................................................................................................................. 3 Purpose, Goals & Implications ................................................................................................................... 3 Standards of Service...........................................................................................................................4 Operational Resources ............................................................................................................................... 4 Strategy for Implementation of Level of Service ....................................................................................... 4 Operational Evaluation & Addressing of Service Shortfalls....................................................................... 5 Maintenance Conditions to be Addressed ................................................................................................ 5 Panel Differential ................................................................................................................................... 5 Settlement Adjacent to Structures ........................................................................................................ 5 Private Concrete Permit Process ........................................................................................................... 5 Standing Water on Sidewalks ................................................................................................................ 5 Tree Removal and Trim/Prune Operations ........................................................................................... 6 Driveway Aprons .................................................................................................................................... 6 Common Curb Conditions and Causes .................................................................................................. 6 Sidewalk Accident Investigation Form ................................................................................................7 260 3 Operation Definition & Purpose The City of McHenry’s Public Works Department is responsible for the maintenance of concrete sidewalks for pedestrian travel within the City’s right of ways and the maintenance of concrete curbs which support closed drainage systems. Concrete sidewalks allow for safe pedestrian travel and are maintained in order to continue their functionality and to reduce risks to pedestrians due to dangerous sidewalk conditions. Concrete curbs are maintained in order to preserve their functionality and support the carrying of surface runoff to drainage structures connected to closed drainage systems. Description of Assets The City of McHenry maintains and operates approximately 125 centerline miles of roadway, all of which are contained within a dedicated right of way. Approximately 70 centerline miles of this roadway include concrete sidewalk which equates to approximately 3,000,000 square feet of sidewalk in the City ’s inventory. Approximately 80 centerline miles of this roadway include concrete curb and gutter which equates to approximately 160 miles or 845,000 lineal feet of concrete curb and gutter. Additionally, there are approximately 1,730 sidewalk ramps which either have been upgraded or will need to be upgraded to ADA compliance at some point in their service life. Purpose, Goals & Implications The primary purpose of the City’s maintenance operations for concrete sidewalks is to allow for safe passage of pedestrians through City right of ways. Unsafe sidewalk conditions prohibit the ability of pedestrians to safely travel and create a risk of a financial claim to the City of McHenry. The operation is run with the goal of minimizing critical sidewalk conditions and minimizing the number of claims against the City due to such conditions. It is crucial for the City to have a policy in place in order to confirm its own due diligence in the case of any claim related to a sidewalk condition. The sidewalk inventory shall be continually evaluated through staff monitoring and consulted condition assessments to identify conditions o f concern. These identified conditions shall be addressed accordingly and in manners consistent with City codes and ordinances, Federal and State standards, as well as other industry standards. The primary purpose of the City’s maintenance operations for concrete curb and gutter shall be performed in order to retain function of the closed drainage systems and to keep the systems clean, flowing, and operable. Non-functional curbs do not properly carry surface runoff which leads to deterioration of infrastructure due to insufficient drainage. Poorly maintained concrete curb and sidewalk infrastructure lead to negative public perception . Therefore, the City’s Sidewalk and Curb Policy sets the goals and standards for this maintenance operation performed by the Public Works Department. 261 4 Standards of Service Operational Resources Concrete sidewalk and concrete curb maintenance work is performed by the Public Works Department’s Field Operations Division. This Division includes Street and Utility employees and is made up of a staff of 15 maintenance workers. The following City-owned equipment is used to perform projects such as curb and sidewalk replacement, sidewalk grinding, ADA ramp replacement, and other miscellaneous concrete work: •Backhoes – 3 each •Front End Loaders – 2 each •Skid Loader – 1 each •Dump Trucks – City Fleet •Mini Excavator – 1 each Strategy for Implementation of Level of Service In order to maintain the desired level of service for the maintenance of concrete sidewalks and curbs in the City of McHenry, the Public Works Department will undertake the following operations: 1.Consult a sidewalk survey to be completed every 2 years which will identify and prioritize critical conditions to be addressed by Public Works operations and/or Capital Projects. a.Sidewalk locations identified in the survey which warrant replacement will be spot replaced as soon as possible and other locations which are identified outside of the survey will be replaced as needed and on an annual basis. b.Sidewalk locations identified in the survey which do not warrant replacement will be ground through an annual grinding and cutting program, and locations which are identified outside of the survey will be ground on an as needed basis outside of the annual program. 2.Staff and City Council will strive to fund a sidewalk and curb replacement program which addresses deficient sections of curb and sidewalk on an annually scheduled basis. 3.A log of claims made by residents due to deficient locations will be kept for history, budgeting, and planning purposes. Concrete curb and sidewalk projects will not be completed solely because of a resident or business request but rather based upon a determination made by staff. 4.Curbs will be evaluated in conjunction with the City’s annual road program and citizen requests. If deemed necessary, curb removal and replacement or ot her acceptable means (i.e., shotcrete) will be done prior to or in conjunction with the City’s road program. Individual requests for curb removal and replacement that are necessary will be performed as part of the Field Operations Division’s daily operations. 262 5 5.Concrete sidewalk ramps shall be continually improved to ADA compliance when a capital resurfacing or reconstruction project of the adjacent street is completed. Spot replacement and upgrades of sidewalk ramps will be completed “in house” on a case-by-case basis. 6.Following an individual request for service after a damage or injury claim, an investigation will be done using the City’s Sidewalk Accident Investigation form (attached). Operational Evaluation & Addressing of Service Shortfalls As all maintenance operations require continual systematic analysis and reevaluation of performance, the Public Works Department will conduct an annual performance review of this operation and report on this review to City Council. Should shortfalls in performance or operational resources be identified through the conducting of this review and presentation to City Council, such shortfalls will be address ed either through reforms to the operation or addressing of resources. If resources are not available to meet identified levels of service goals, these desired levels of service may be reevaluated and adjusted accordingly. Maintenance Conditions to be Addressed Panel Differential Panel Differential or uneven sidewalk panels that exceed 1” (one inch) or greater will be ground, cut or replaced based on severity and condition of adjacent sidewalk panels. Any sidewalk panels that include ramps will be replaced in compliance with ADA standards. Settlement Adjacent to Structures Concrete that has settled adjacent to structures such as storm sewer, sanitary sewer manholes, and water valve vaults due to the natural compacting of the earth will be removed and replaced by the City of McHenry. Private Concrete Permit Process If a resident or private business decides to replace any sidewalk in the City’s right-of-way, they shall follow the permitting process outlined in the City of McHenry Code of Ordinances, Chapter 1, Section 8-1-2: Construction Permits. The City of McHenry construction details and ADA compliance shall be adhered to. Standing Water on Sidewalks After rain events, water may remain in areas on sidewalks for a duration determined by how saturated the ground may be. In the spring when the snow melts, water may also remain in areas on sidewalks if the ground is still in a frozen state. This may lead to the water refreezing on the sidewalk due to temperatures dropping back to below freezing. When the freezing of water on concrete sidewalks occurs, it can be melted by applying salt. If water stands on a section of sidewalk for a prolonged period of time, the Public Works Department will evaluate the situation and determine if a remedy exists. 263 6 Tree Removal and Trim/Prune Operations When homeowners have trees trimmed/pruned or removed, this operation may require large equipment to access private property. In the event that a piece of equipment or large limb causes damage to City sidewalk or curb, it will the homeowner’s sole responsibility to have any concrete damage repaired and landscape restored to the City of McHenry standards. Driveway Aprons Driveway aprons, while constructed in the right-of-way, are the responsibility of the property owner to maintain. The City of McHenry is not responsible for the replacement of deteriorated, cracked, or uneven driveway aprons. When the City is required to remove the driveway apron for a utility repair of City- owned facilities, the City of McHenry or its Contractor will replace the removed section after the necessary repairs are completed. When curb repairs are deemed necessary and partial removal of the driveway apron is required, only the removed section of the driveway apron will be replaced. The City of McHenry will not be responsible to cut or replace the mountable curbs in place throughout City neighborhoods at the end of driveways. If a property owner chooses to replace his/her driveway apron and/or mountable curb, the property owner may do so at his/her own expense and is required to secure a permit through the City of McHenry. Common Curb Conditions and Causes Some common curb conditions include but are not limited to: o Cracking: Resulting from one or a combination of factors, such as drying shrinkage, thermal contraction, subgrade settlement, and applied loads. o Crazing: A network pattern of fine cracks that do not penetrate much below the surface caused by minor surface shrinkage. o Delamination: Similar to blisters caused by finishing the surface before bleeding has occurred. o Scaling/Spalling: Scaling is generally the loss of surface mortar exposed to freezing and thawing. Spalling is a deeper surface defect and often caused by pressure or expansion within the concrete. 264 7 Sidewalk Accident Investigation Form PRESERVING EVIDENCE An investigation of the case needs to be performed immediately following the initial intake. The location where the fall took place needs to be visited informally and photographed. It may also be appropriate to take video of the premises in the event the location changes, which often occurs. You should personally visit the site yourself. Preservation of the evidence scene is critical, and you cannot always anticipate what might need to be photographed until you have visited the site. If you send someone in your place and they miss something, it may be lost forever, harming our chances of a successful outcome. Having someone else with you during the initial visit to the scene is important because they can take measurements, pictures, or offer you a different perspective at the site and later use that information at deposition and trial. Collecting the evidence on your own can be troublesome because it could lead to a request for your deposition or testimony at trial. PICTURE DOCUMENTATION The following series of pictures should be taken: _____ 1. A close-up picture from the side of the full measurement (top to bottom) (Picture 1); _____ 2. A picture taken from 4 feet from the direction the person claimed they were headed (Picture 2); _____ 3. A picture taken from 16 - 20 feet from the direction the person claimed they were headed (Picture 3); _____ 4. A picture taken from 4 feet from the opposite direction the person claimed they were headed; _____ 5. A picture taken from 16 - 20 feet from the opposite the direction the person claimed they were headed (Picture 4); _____ 6. A picture taken from across the street (Picture 5); _____ 7. A picture taken from the grass side showing the measurement; (Picture 6) PRESERVING WITNESS ACCOUNTS If there are witnesses to the fall or to the conditions of the location of the fall, they need to be located and interviewed immediately. Oftentimes it seems that there was no one at the scene that witnessed the person’s fall. In those situations, there are still multiple “witnesses” that may be helpful to your case. Though you will be going to the site immediately to investigate, it is important to go back to the site at the specific time that the complainants fell. For example, if the person indicates that they fell at 7:30 p.m. on a Tuesday. You should go to the site at that time to look at, document, and take pictures of the lighting (was it dark or light, was there a street light, take pictures again under those conditions). Look around the neighborhood and see if anyone is out on their porches or walking around. Ask them if they saw anything that occurred. When you go back on a specific night (Tuesday) repeat those steps. 265 8 Picture 1 Picture 3 Picture 5 Picture 3 Picture 4 Picture 6 266