HomeMy WebLinkAboutPacket - 12/16/2019 - City Council4.
McHenry
AGENDA
REGULAR CITY COUNCIL MEETING
City Council Chambers,333 S Green Street
Monday, December 16,2019
1. Call to Order.
2. Roll Call.
3. Pledge of Allegiance.
4. Public Hearing: Public Hearing for the 2019 Property Tax Levy in the amount of$4,618,786
A. Motion to adopt the 2019 Property Tax Levy Ordinance in an amount not to exceed $4,618,786
5. Public Comments: Any member of the public wishing to address the Council is invited to do so by
signing in at the meeting entrance and, when recognized, stepping to the podium. Opportunities for
Public Comment are also provided under each Individual Action Item.
6. Consent Agenda: Motion to Approve the Following Consent Agenda Items:
A. Resolution allocating MFT funds not to exceed$136,525 for the purchase of rock salt in the year
2020;
B. Ordinance authorizing the sale of four vehicles through Clinton Auto Auction;
C. Ordinance Amending Title 6; Public Safety, Chapter 5; Offenses, Article D; Drug Paraphernalia;
Possession of Cannabis, Section 6-513-2; Unlawful Possession of Cannabis, of the City of
McHenry's Municipal Code;
D. Ordinance creating Section 1-5-3, Surplus Property and amending Section 6-2A-4,
Administrative Duties of the Chief of Police;
E. Award a contract to Trane Building Services, in the amount of$141,929, for the replacement of
two rooftop units at the Municipal center and pass an Ordinance for a general fund(100-01-8200)
budget amendment in the amount of$11,479;
F. Police Pension Fund Annual Report for Fiscal Year 2018/19;
G. Waive competitive bidding requirements and award a supplemental contract to Langton Snow
Solutions, Inc. in the amount of$30,422.32 with a 50%retainer of$15,211.16;
H. Temporary Use Permit, Special Event Liquor License, Open Carry of Alcoholic Beverages;
Street Closures, and Budget Amendment Ordinance in the amount of $10,000 for the 2020
McHenry Shamrocks the Fox St. Patrick's Day Festival;
I. Annual Fiesta Days Schedule,Use of Parks,Police and Public Works services at a 50%reduction,
approval of a Special Event Liquor License, and approval for the placement of temporary
advertising signs as identified;
J. December 2, 2019 City Council Meeting Minutes;
K. Issuance of Checks in the amount of$219,507.68;
L. Issuance of As Needed Checks in the amount of$526,844.53.
The City of McHenry is dedicated to providing its citizens,businesses,and visitors with the highest quality ofprograms and services in
a customer-oriented,efficient,and fiscally responsible manner.
a
7. Individual Action Item Agenda:
A. Motion to adopt Ordinances for the abatement of real estate taxes levied for the 2019 Tax Levy
Year for the following bond issues: General Obligation Bonds (Recovery Zone & Build
America) Series 2010B, $407,160.00; General Obligation Bonds (Alternate) Series 2010C,
448,952.50; General Obligation Bonds (Alternate) Series 2012, $204,232.50; General
Obligation Bonds (Refunding) Series 2013, $35,740.00; General Obligation Bonds (Refunding)
Series 2015, $578,478.76
B. Grant a sign variance to 1800 N Richmond Road to allow an additional 9 feet in height for a
maximum of 15 feet and an additional 21 square feet of area
C. Motion to reimburse Mayor Jett for legal defense fees in he sum of$2,745.10
8. Discussion Items.
9. Staff Reports.
10. Mayor's Report.
11. City Council Comments.
12. Executive Session
A. Review of Executive Session Minutes (5 ILCS 120/2(c)(21))
B. Selection of a person to fill a public office (5 ILCS 120/2(c)(3))
13. Individual Action Item Agenda Continued
A. Motion to a) pass a Resolution approving Executive Session minutes as presented; b)
authorize the release of Executive Session meeting minutes as presented; and c) the
destruction of any Executive Session recordings that have existed for more than 18
months and for which the minutes of that meeting have been approved
B. Motion to approve the Mayor's appointment to fill the existing vacancy of City Council
Member- Ward 4
14. Adjourn.
The complete City Council packet is available for review online via the City website at www.ci.mchenry.il.us. For further
information,please contact the Office of the City Administrator at 815-363-2108.
The proceedings of the City Council meeting are being video-recorded and every attempt is made to ensure that they are
posted on the City of McHenry,IL "YouTube"channel within twenty-four(24)hours of the meeting adjournment.
NOTICE: In compliance with the Americans with Disabilities Act(ADA),this and all other City Council meetings are located
in facilities that are physically accessible to those who have disabilities. If additional accommodations are needed,please
call the Office of the City Administrator at 815-363-2108 at least 72 hours prior to any meeting so that accommodations can
be made.
Office of Finance &Accounting
Carolyn Lynch, Director
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
McHenr Fax: (815) 363-2119
www.ci.mchenry.il.us- - 11)
PUBLIC HEARING SUPPLEMENT
DATE: December 16, 2019
TO: Mayor and City Council
FROM: Carolyn Lynch, Finance Director
RE: Public Hearing and Consideration of the 2019 Tax Levy Ordinance
ATTACHMENTS:Exhibit A— Proposed Real Estate Tax Levy by Fund
2018 McHenry County Tax Rates
2019 Property Tax Levy Ordinance
AGENDA ITEM SUMMARY:
The purpose of this agenda item is to conduct the 2019 Property Tax Levy Public Hearing and to
provide the City Council with information needed for the adoption of the 2019 Property Tax Levy
Ordinance.
PURPOSE:
On November 18, 2019 Council considered and approved a Resolution Determining the Amount
of Funds to be levied for the 2018 Tax Year through real estate taxes for the City of McHenry and
set a date of December 16, 2019 for the Public Hearing and consideration of an ordinance
establishing such a levy. While not required to do so, the City of McHenry believes that it is
important to provide residents with an opportunity to provide public comment on the proposed
property tax levy.
Upon the closure of the public hearing City Council can then consider the adoption of the 2019
Tax Levy Ordinance. An approved Tax Levy Ordinance must be filed by the last Tuesday of
December (the 315Y in 2019). With altered schedules and office hours due to the holidays, it is
always prudent for Council to consider the Tax Levy Ordinance to allow sufficient time for
administrative processing.
BACKGROUND/ANALYSIS:
Approximately 76.2% of the FY19/20 budgeted General Fund Revenues are derived from Sales Tax,
Income Tax and Property Tax receipts with the remaining approximate 23.8%coming from such sources
as miscellaneous other intergovernmental taxes, grants, franchise fees, licenses and permits, fines and
forfeitures, and charges for services. For the FY19/20 Budget, Property Tax receipts comprised 20.5%
4,942,359)of the total budgeted revenues($24,060,427).
As the Council is aware, McHenry has implemented a Fund Balance and Reserve Policy and for the General
Fund,this policy recommends that the unrestricted fund balance be maintained at 120 days of estimated
operating expenses. Additionally,after the minimum fund balance is met,that excess fund balance should
be assigned for future capital expenses. At the end of FY2018/19, there were $0 additional funds to be
transferred to the Capital Improvements Fund as excess fund balance. In fact,the fund balance is actually
385,383 below the required 120 minimum, but not below the 90 day balance that requires a plan to be
enacted to build up the fund balance.
As the Council discusses the property tax levy, it should keep the following factors in mind. First,that the
FY19/20 General Fund Capital Improvement Program (CIP) includes about $64 million in projects
including an approximately$50 million local road program)that rely primarily on General Fund Revenues
for implementation. The 5 Year Capital Improvement Plan is in the early development phase and funding
for the program will be based on budgeted revenues over expenses for FY20/21. The Capital
Improvements Fund Balance has been depleted with projects to be completed in FY19/20.
The second factor is that, that despite the most conservative budgeting efforts, General Fund operating
costs will continue to increase. For example, Police Pension contributions are estimated to increase
149,318,and overall salary increases are estimated to increase$466,271 for FY20/21,a total of$615,589
which represents a 2.5%increase in FY19/20 Budgeted Expenditures of$24,543,633.
The council did approve the additional 0.25%increase in Home Rule Sales Tax which is in effect as of July
1, 2019. This revenue is being reserved for capital projects for at least the first year. The first payment
was received and it is approximately $94,500 higher than last July (received in October). This is a good
sign that the City will bring in an additional $1,000,000 each year from this revenue source to be used on
capital projects.
Despite the fact that as a"Home Rule"community the City of McHenry is no longer subject to the Property
Tax Extension Limitation Law, or PTELL-which limits increases to residents' property taxes by preventing
a local government's property tax levy from growing at a faster pace than the rate of inflation, or 5%,
whichever is less-the City has continued to follow PTELL guidelines for establishing the property tax levy.
In fact,for the years 2011-2015 the City chose to maintain a flat property tax levy request at the amount
that was requested in 2010. In 2016,Council chose to decrease the property tax levy request by 3%. And
in 2017-2018 the levy was again maintained flat from the 2016 reduced amount.
For the 2019 tax year the inflationary rate is 1.9%. The Estimated Rate Setting EAV supplied by McHenry
County is 708,626,214 (an increase of 7.4% over 2018) which includes new construction of 3,376,264.
PTELL calculated with the inflationary rate and the estimated EAV equates to an Estimated Limited
Extension of $4,729,088, or an $110,302 increase over last year. Even if the City were to adopt this
increase, it would not cover the anticipated increases in costs for FY20/21.
Based on the above information, it is important to remind the Council that freezing or reducing the City's
portion of the property tax levy does not mean that home-owners will see a reduction in their property
tax bill. Change in EAV also drives change in the property tax bill. When the EAV declines the tax rates
must go up in order to fully fund the property tax levy because the same amount of money needs to be
collected across the new lower values as requested by all taxing districts. For 2018,the EAV increased for
the third consecutive year so the tax rates for the City went down slightly lowering the burden on
taxpayers. In fact, in 2018 that portion of a resident's tax bill directed to the City of McHenry was only
6.1% of the total amount. However, this does not take into consideration actions taken by the other
taxing jurisdictions that comprise the total property tax bill. As an example, in 2015 the City of McHenry
kept its portion of the property tax bill the same as 2014, but the amount of property tax paid by the
owner of a $200,000 home actually increased by$43.51 due to levy increases by other taxing bodies.
Annually, prior to the end of the calendar year, the City must provide the amounts required for the
property tax levy so that the funds generated through this revenue mechanism will become available
during the 2020/2021 fiscal year. The levy request must be approved by the City Council and submitted
to the McHenry County Clerk by the last Tuesday in December (the 315t in 2019). There are public
notification timeframes also associated with this process. With this date as a target, the 2019 Property
Tax Resolution indicating the levy amount and Public Hearing will be presented at the November 18th,
2019 Council meeting and, upon adoption of the resolution, the Property Tax Levy Public Hearing and
consideration/adoption of the levy amount is scheduled for the December 16, 2019 City Council meeting.
Based on the totality of the information that has been reviewed in this memorandum,and with input from
the discussion at the City Council Meeting at its November 4,2019,staff is forwarding a recommendation
to maintain the property tax levy at the current amount of$4,618,786. This represents the ninth (9th)
consecutive year that the City of McHenry has foregone an increase in the amount of property taxes
collected. Based on the PTELL estimates provided by McHenry County,the amount of revenues deferred
by this action will be approximately $110,302. Staff reminds Council that we will continue to carefully
plan and monitor revenues and expenditures during the upcoming year and monitor any other internal or
external factors that may have an impact on the City's overall financial stability.
If Council concurs,the following is recommended: 1) conducting a public hearing regarding the
proposed 2019 Property Tax Levy in an amount of $4,618,786 and, upon closing the public
hearing; 2) consideration of the 2019 Property Tax Levy Ordinance in an amount not to exceed
4,618,786.
EXHIBIT A
CITY OF McHENRY
PROPOSED REAL ESTATE TAX LEVY
2019 TAX LEVY
Equalized Assessed Valuation (EAV)* 708,626,214 (6.8% Increase)
Purpose Estimated Rate Proposed Levy
Corporate 0.0494 349,725
Police Protection 0.0773 547,959
Band 0.0000 0
Civil Defense 0.0000 0
Audit 0.0037 26,427
Insurance 0.0706 499,994
IMRF 0.0563 399,194
Social Security 0.0796 563,745
Public Library 0.0000 0
Debt Service 0.0000 0
Police Pension 0.3149 2,231,742
Public Benefit 0.0000 0
TOTAL 0.6518 4,618,786
Estimated
City of McHenry
2018 Property Taxes on $200,000 Home
By Government Unit
2018 Tax Percent
Government Unit Rate Amount of Total
McHenry County 0.831721 554.48 7.26%
McHenry Co. Conservation 0.237971 158.65 2.08%
MCC College District 0.365514 243.68 3.19%
School Dist.#15 5.432629 3621.75 47.40%
School Dist.#156 2.643308 1762.21 23.07%
McHenry Fire District 0.551940 367.96 4.82%
McHenry Library 0.316629 211.09 2.76%
McHenry Twnshp. 0.122123 81.42 1.07%
McHenry Twnshp. Rd. & Br. 0.258223 172.15 2.25%
McHenry City 0.699985 466.66
11.460043 $7,640.05 100.00%
City of McHenry -Flat Taxes
2019 Property Taxes on $200,000 Home
By Government Unit
2018 Tax Percent
Government Unit Rate Amount of Total
McHenry County 0.831721 554.48 7.30%
McHenry Co. Conservation 0.237971 158.65 2.09%
MCC College District 0.365514 243.68 3.20%
School Dist.#15 5.432629 3621.75 47.60%
School Dist.#156 2.643308 1762.21 23.16%
McHenry Fire District 0.551940 367.96 4.84%
McHenry Library 0.316629 211.09 2.77%
McHenry Twnshp. 0.122123 81.42 1.07%
McHenry Twnshp. Rd. & Br. 0.258223 172.15 2.26%
McHenry City 0.651800 434.53
11.411858 $7,607.92 100.00%
City Decrease -1.9%32.13
ORDINANCE NO. ORD-19-
2019 PROPERTY TAX LEVY ORDINANCE
AN ORDINANCE FOR THE LEVY OF TAXES FOR THE CITY OF McHENRY, McHENRY COUNTY,
ILLINOIS FOR THE YEAR 2019
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 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.
BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF McHENRY, McHENRY
COUNTY, ILLINOIS as follows:
SECTION 1: That at tax for the following sums of money, or as much thereof as may be
authorized by law to defray all expenses and liabilities of the City of McHenry, be and the same
are hereby levied for the purposes specified against all taxable property in the City of McHenry
for the year 2019 in the respective sums as follow, to-wit:
Article I
General Fund Levy
Administration Department
Salaries- Regular 9,303
Overtime- Regular
Salaries- Seasonal
Salary Adjustments
Board/Commission Expense
Youth Commission
Health/Life Insurance
Dental Insurance
US Life Insurance
Insurance Premiums Vision
FICA/Medicare 13,035
IMRF Retirement 18,719
Uniform Allowance
Contractual Services
Legal Fees
Postage and Meter
Telephone
Printing and Publishing
Repair& Maintenance
Dues
Travel Expenses
Training
Tuition Reimbursements
Publications
Utilities
IMF Expense
Materials & Supplies
Office Supplies
Gasoline & Oil
Small Equipment
Administrative Expense
Capital - Land Acquisition
Buildings
Equipment
Capital - Furniture
Purchase of Service- Risk Management
Purchase of Service- Information Technology
Transfer- Employee Insurance Fund
Transfer- Capital Improvements
Total Administration Department 41,057
Elected Officials Department
Salaries- Regular
Overtime- Regular
Salary Adjustments
Salaries- Elected Officials
Health/Life Insurance
Dental Insurance
US Life Insurance
Insurance Premiums Vision
FICA/Medicare 2,293
IMRF Retirement
Uniform Allowance
Contractual Services
Postage and Meter
Telephone
Printing and Publishing
Dues
Travel Expenses
Training
Publications
Materials and Supplies
Office Supplies
Small Equipment
Employee Recognition
Administrative Expense
Purchase of Service- Information Technology
Transfer- Employee Insurance Fund
Total Elected Officials Department 2,293
Community Development Department
Salaries- Regular 17,141
Salaries- Part Time
Salaries-Temporary-Census
Overtime- Regular
Salary Adjustments
Health/Life Insurance
Dental Insurance
US Life Insurance
Insurance Premiums Vision
FICA/Medicare 25,506
IMRF Retirement 34,369
Uniform Allowance
Contractual Services
Postage and Meter
Telephone
Printing and Publishing
Repairs and Maintenance -Vehicles
Dues
Travel Expenses
Training
Tuition Reimbursement
Publications
Materials and Supplies
Office Supplies
Fuel and Lubricants
Small Tools and Equipment
Capital Lease Principal Payments
Capital - Buildings
Equipment
Capital -Vehicles
Purchase Service- Risk Management
Purchase Service - Information Technology
Transfer- Employee Insurance Fund
Total Community& Economic Development Department 77,016
Finance Department
Salaries - Regular 10,961
Salaries- Part Time
Overtime- Regular
Salary Adjustments
Health/Life Insurance
Dental Insurance
US Life Insurance
Insurance Premiums Vision
FICA/Medicare 16,309
IMRF Retirement 21,976
Uniform Allowance
Contractual Services
Postage and Meter
Telephone
Printing and Publishing
Dues
Travel Expenses
Training
Tuition Reimbursement
Publications
Materials and Supplies
Office Supplies
Gasoline & Oil
Small Tools and Equipment
Administrative Expense
Development Expense
Miscellaneous Refunds
Debt Service Transfer
Transfer-Special Service Area
Transfer- Motor Fuel Tax Fund
Purchase Service- MCMRM
Purchase Service- Information Technology
Transfer- Employee Insurance Fund
Transfer-Capital Improvement Fund
Transfer- Band Fund
Transfer-Civil Defense
Transfer-Capital Equipment Fund
Total Finance Department 49,246
Human Resources Department
Salaries - Regular 4,936
Health/Life Insurance
Dental Insurance
US Life Insurance
Insurance Premiums Vision
FICA/Medicare 7,344
IMRF Retirement 9,896
Contractual Services
Training
Purchase Service - Information Technology
Total Human Resources Department 22,176
Economic Development Department
Salaries- Regular 5,546
Health/Life Insurance
Dental Insurance
US Life Insurance
Insurance Premiums Vision
FICA/Medicare 8,252
IMRF Retirement 11,121
Contractual Services
Postage & Meter
Printing and Publishing
Dues
Travel Expenses
Training
Materials and Supplies
Bulk Office Supplies
Purchase Service - Information Technology
Total Economic Development Department 24,919
Police Department
Salaries- Regular 11,237
Salaries- Sworn 708,193
Salaries- Part-Time
Overtime- Regular
Overtime - Sworn
Career Ladder
Salary Adjustments
Health/Life Insurance
Dental Insurance
US Life Insurance
Insurance Premiums Vision
FICA/Medicare 269,100
IMRF Retirement 23,200
Contribution - Police Pension 2,231,742
Uniform Allowance
Contractual Services
Postage and Meter
Telephone
Repair and Maintenance -Vehicles
Dues
Travel Expenses
Training Expenses
Tuition Reimbursement
Publications
Utilities
Materials and Supplies
Office Supplies
Fuel and Lubricants
SmaII Equipment
Police-K9 Unit
Police-DUI
Capital - Equipment
Capital -Vehicles
Capital - Furniture
Purchase of Service - Risk Management
Purchase of Service- Information Technology
Transfer- Employee Insurance Fund
Total Police Department 3,243,472
Dispatch Department
Salaries - Regular 51,191
Salaries- Part-Time
Overtime- Regular
Salary Adjustments
Health/Life Insurance
Dental Insurance
US Life Insurance
Insurance Premiums Vision
FICA/Medicare 83,043
IMRF Retirement 114,912
Uniform Allowance
Contractual Services
Postage and Meter
Telephone
Travel Expenses
Training Expenses
Tuition Reimbursement
Utilities
Materials and Supplies
Office Supplies
Small Equipment
Purchase of Service - Risk Management
Puchase of Service- Information Technology
Total Dispatch Department 249,146
Public Works Administration Department
Salaries- Regular 9,575
Overtime- Regular
Salary Adjustments
Health/Life Insurance
Dentallnsurance
US Life Insurance
Insurance Premiums Vision
FICA/Medicare 14,248
IMRF Retirement 18,669
Uniform Allowance
Contractual Services
Postage and Meter
Telephone
Dues
Travel Expenses
Training Expenses
Tuition Reimbursement
Office Supplies
Small Equipment
Forestry
Capital - Equipment
Purchase Service - Risk Management
Purchase Service - Information Technology
Transfer- Employee Insurance Fund
Total Public Works Administration Department 42,492
Public Works Streets Division Department
Salaries- Regular 44,079
Overtime- Regular
Overtime - Snow Removal
Salaries-Seasonal
Salary Adjustments
Health/Life Insurance
Dental Insurance
US Life Insurance
Insurance Premiums Vision
FICA/Medicare 70,743
IMRF Retirement 94,002
Uniform Allowance
Contractual Services
Contractual Services- PW Bldg
Telephone
Repair and Maintenance -Vehicles
Training Expenses
Utilities
Utilities- PW Bldg
Street Lighting
Materials and Supplies
Materials and Supplies- PW Bldg
Office Supplies
Vehicle Fuel and Lubricants
Small Tools and Equipment
Safety Equipment and Supplies
Miscellaneous Expenses
Capital - Equipment
Capital -Vehicles
Capital - Public Improvements
Encumbrances
Purchase Service- Risk Management
Purchase Service - Information Technology
Transfer- Employee Insurance Fund
Total Public Works Streets Division Department 208,824
Parks & Recreation Department
Salaries- Regular 25,522
Salaries - Part Time Employees
Overtime - Regular
Salaries- Seasonal
Overtime- Seasonal
Salary Adjustments
Health/Life Insurance
Dental Insurance
US Life Insurance
Insurance Premiums Vision
Social Security Expenses 53,872
IMRF Retirement 52,330
Uniform Allowance
Contractual Services
Postage and Meter
Telephone
Printing and Publishing
Repairs and Maintenance -Vehicles
Dues
Travel Expenses
Training
Tuition Reimbursement
Publications
Utilities
Materials and Supplies
Office Supplies
Vehicle Fuel and Lubricants
Small Equipment
Special Events
Forestry
Capital - Equipment
Capital -Vehicles
Park Improvements
Purchase Service- Risk Management
Purchase Service- Information Technology
Transfer- Employee Insurance Fund
Total Parks & Recreation Department 131,724
Total General Fund 4,092,365
Article II
Audit Fund
Audit Fee 26,427
Total Audit Fund 26,427
Article III
Insurance Fund
Insurance 499,994
Total Insurance Fund 499,994
Grand Total
Articles I, II, and III 4,618,786
Levied for the City of McHenry from the tax for General Corporate 349,725
funds, 65 ILCS 5/8-3-1, in addition to all other taxes
Levied from the Special Tax for Police Protection, 65 ILCS 5/11-1-547,959
3, in addition to all other taxes
Levied from the Special Tax for cost of participation by the City of 399,194
McHenry in the Illinois Municipal Retirement Fund Enabling Act, 40
ILCS 5/7-171, in addition to all other taxes
Levied from the Special Tax for cost of participation by the City of 563,745
McHenry in the Social Security Enabling Act, 40 ILCS 5/21-109, in
addition to all other taxes
Levied from the Special Tax for the Police Pension Fund, 40 ILCS 2,231,742
5/3-125, in addition to all other taxes
Levied from the Special Tax for the Audit Fund, 65 ILCS 5/8-8-3, in 26,427
addition to all other taxes
Levied from the Special Tax to pay the cost of insurance, 745 ILCS 499,994
10/9-107, in addition to all other taxes
TOTAL LEVIED FOR CITY OF MCHENRY FROM ALL 4,618,786
SOURCES
The cites sources of authority are for information purposes only and are not intended to be a
limitation on the City's authority to levy taxes.
SECTION 2: All expended balances of any item or items of any general appropriation
made by the Ordinance may be expended in making up an insufficiency in any item or items in
the same general appropriation and for the same general purpose of in like appropriation made
by the ordinance.
SECTION 3: The Clerk of aforesaid City is hereby directed to file with the Clerk of McHenry
County a duly certified copy of this ordinance.
SECTION 4: The Ordinance shall be in full force and effect from and after its passage,
approval and publication in pamphlet form (which publication is hereby authorized), as provided
by law.
w+`"WON. Office of Finance &Accounting
Carolyn Lynch, Director
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
Mc ulen Fax: (815) 363-2119
www.ci.mchenry.il.us
CONSENT AGENDA SUPPLEMENT
DATE: December 16, 2019
TO: Mayor and City Council
FROM: Carolyn Lynch, Finance Director
RE: MFT Resolution for Year 2020 State Purchase of Rock Salt
ATTACHMENTS: IDOT Resolution
Municipal Estimate of Maintenance Costs
BACKGROUND:
Annually the city purchases rock salt for ice control through the McHenry County Purchasing
Department. A blanket order on an as needed basis is submitted and paid for through Illinois
Motor Fuel Tax (MFT) funds. Each month the city is issued warrants pursuant to the MFT Fund
Distribution statute.
ANALYSIS:
Expenditures for the purchase of rock salt requires the adoption of a resolution appropriating the
funds.
RECOMMENDATION:
Staff recommends the Mayor's execution of the attached resolution allocating MFT funds for the
purchase of rock salt in the year 2020.
Hof ranspDea rtm
n
t Local Public Agency General Maintenance o'
Estimate of Maintenance Costs Submittal Type Original
Maintenance Period
Local Public A en-.y County Section Number Beginning Ending
McHenry McHenry 20-00000-00-GM 01/01/20 12/31/20
Maintenance Items
Material Categories/ Total
Maint Point of Delivery or Maintenance
Maintenance Eng Insp. Work Performed by Operation
Operation Category Req. an Outside Contractor Unit Quantity Unit Cost Cost Cost
State Joint 1113 No Bulk Road Salt Tons 1,500 77.67 116,505.00 116,505.00
Purchase
Snow&Ice IIA No Beet Heet Gals 14,000 1.43 20,020.00 20,020.00
Removal
Total Operation Cost $136,525.00
Estimate of Maintenance Costs Summary
Maintenance MFT Funds Other Funds Estimated Costs
Local Public Agency Labor
Local Public Agency Equipment
Materials/Contracts(Non Bid Items) 20,020.00 20,020.00
Materials/Deliver&Install/Request for Quotations(Bid Items) 116,505.00 116,505.00
Formal Contract(Bid Items)
Maintenance Totall 136,525.00 136,525.00
Estimated Maintenance Eng Costs Summary
Maintenance Engineering MFT Funds Other Funds Total Est Costs
Maintenance Engineering
Material Testing
Advertising
Bridge Inspection Engineering
Maintenance Engineering Total
Total Estimated Maintenancel 136,525.00 136,525.00
Remarks
SUBMITTED
Local Public Agency Official Date
Title
City Clerk
APPROVED
Regional Engineer
County Engineer/Superintendent of Hi hwa s Date Department of Transportation Date
Printed 12/10/19 Page 1 of 1 BLR 14222(Rev.10/18/19)
Instructions for BLR 14222-Page 1 of 4
NOTE: Form instructions should not be included when the form is submitted
This form is used by all Local Public Agencies(LPAs)to submit their maintenance program and also submit their maintenance expenditure
statements.A resolution(BLR 14220)must be submitted and approved by the Illinois Department of Transportation(IDOT)prior to
incurring any expenditures. For items required to be bid the estimate of cost must be submitted prior to submittal of required bidding
documents.Authorizations will be made based on the resolution and/or the approved contract/acceptance/request for quotations
documents.
The maintenance expenditure statement must be submitted within 3 months of the end of the maintenance period. Maintenance
resolutions and estimates submitted for future maintenance periods after that date will not be processed until the delinquent maintenance
expenditure statement has been submitted. Only one form needs to be completed per maintenance period, combine all operations on one
form.
For additional information refer to the Bureau of Local Roads Manual(BLRS), Chapter 14. For signature requirements refer to Chapter 2,
section 3.05(b)of the BLRS Manual
For items being completed for the estimate all materials,equipment, labor and contract amounts are considered estimates. For estimates
where LPA equipment is completed, an Equipment Rental Schedule(BLR 12110)must also be submitted for approval.When completing
the form for the Maintenance Expenditure all items must be actual amounts spent.
Maintenance From the drop down choose which type of document is being submitted. Choose Estimate
of Cost if an estimate is being submitted, choose Maintenance Expenditure Statement if a
maintenance expenditure statement is being submitted.
Submittal Choose the type of submittal, if this is the first submittal choose original, if revising a
previous submittal choose, revised. If adding to a previous submittal choose supplemental.
Local Public Agency Insert the name of the Local Public Agency.
County Insert the County in which the Local Public Agency is located.
Maintenance Period
Beginning Insert the beginning date of the maintenance period.
Ending Insert the ending date of the maintenance period.
Section Insert the section number assigned to this project. The letters at the end of the section
number will always be a"GM".
Maintenance Operations List each maintenance operation separately
Maintenance Engineering Category From the drop down choose the maintenance engineering category as it applies to the
operation listed to the left. The definitions of the categories can be found in the BLRS
Manual Chapter 14, section 14-2.04 Maintenance Engineering Categories are:
Category I Services purchased without a proposal such as electric energy or materials purchased from
Central Management Services'Joint Purchasing Program or another joint purchasing
program that has been approved by the District BLRS or CBLRS.
Category II-A Maintenance items that are not included in Maintenance Engineering Category I or do not
require competitive sealed bids according to Section 12-1.02(a)or a local ordinance/
resolution.
Category II-B Routine maintenance items that require competitive sealed bids according to Section
12-1.02(a)or a local ordinance/resolution. Routine maintenance includes all items in the
following work categories: snow removal, street sweeping, lighting and traffic signal
maintenance, cleaning ditches or drainage structures,tree trimming or removal, mowing,
crack sealing, pavement marking,shoulder maintenance limited amounts of concrete curb
and gutter repair, scour mitigation, pavement patching, and minor drainage repairs.
Category III Maintenance items that are not covered by Maintenance Engineering Category I and require
competitive bidding with a material proposal,a deliver and install proposal or request for
quotations.
Printed 12/10/19 BLR 14222(Rev.10/18/19)
Instructions for BLR 14222-Page 2 of 4
Category IV Maintenance items that are not covered by Maintenance Engineering Category I and require
competitive bidding with a contract proposal.
The instructions listed below only apply to the maintenance estimate of cost.
Insp Req From the drop down choose No or Yes as it applies to the maintenance operation listed to
the left. Items requiring no engineering inspection should be no.
Material Categories/ List the items for each operation on a separate line, grouping items for the same operation
Point of Delivery or Work Performed together,for the operation listed to the left. If work being done as a contract list work by
by an Outside Contractor contractor.
Unit Insert the unit of measure for the material listed to the left, if applicable
Quantity Insert the quantity of material for the material listed to the left, if applicable.
Unit Cost Insert the unit cost of the material listed to the left, if applicable.
Cost No entry necessary,this is a calculated field. This is the quantity times the unit cost.
Total Maintenance Operation Cost Insert the total of the Maintenance Operation Cost,for items done by a contract insert the
estimated contract amount.
Maintenance
Estimate of Maintenance Costs Summary Under each item listed below, list the amount to of estimated MFT funds to be expended
and other funds, if applicable.The total Estimated cost is a calculated field.
Local Public Agency Labor Insert the estimated amount for LPA labor for all maintenance operations, if applicable.
Local Public Agency Equipment Rental Insert the estimated amount for LPA equipment rental for all maintenance operations, if
applicable.
Materials/Contracts(Non Bid Items) Insert the estimated amount for materials and/or contracts for items the LPA is not required
to bid, if applicable.
Materials/Deliver&Install, Insert the total amount estimated to be expended on materials/
Request for Quotations(Bid Items) deliver and install proposals and/or Request for Quotations.This will be for items required to
be bid.
Formal Contracts Insert the total amount estimated to be expended on formal contracts. This will be for items
required to be bid.
Total Estimated Cost This is a calculated field and will be automatically filled in for each type. This is the sum of
all funding for the item.
Total Maintenance Operation Cost This is a calculated field, no entry is necessary. This is the sum of all items expended on
this operation.
Total Maintenance Cost This is a calculated field, no entry is necessary. This is the sum of all maintenance
operation costs.
Maintenance Engineering Cost Summary Under each item listed below, list under the funding type what the estimated amount to be
expended is.
Maintenance Engineering Fee Insert the dollar amount of funds estimated to be expended for maintenance engineering.
Material Testing Costs Insert the dollar amount of funds estimated to be expended on material testing costs, if
applicable. Insert the amount to be paid from MFT and the amount to be paid with local
funds, if applicable.
Printed 12/10/19 BLR 14222(Rev.10/18/19)
Instructions for BLR 14222-Page 3 of 4
Advertising Costs Insert the dollar amount of funds estimated to be expended on advertising costs, if
applicable. Insert the amount to be paid from MFT and the amount to be paid with local
funds, if applicable.
Bridge Inspection Costs Insert the dollar amount of funds estimated to be expended on bridge inspection costs, if
applicable. Insert the amount to be paid from MFT and the amount to be paid with local
funds, if applicable.
Total Maintenance Engineering This is a calculated field, no entry is necessary. This is the sum of all maintenance
engineering costs listed above.
Totals: This is a calculated field. It is the total of the estimated maintenance cost plus the estimated
maintenance engineering cost.
These instructions apply to the Maintenance Expenditure Statement.
Maintenance Operation Type in the name of the maintenance operation for which the amounts to the right will be
completed. For a form that was completed as an Estimate of Cost and is now being
changed to a Maintenance Expenditure Statement,this field will be completed from the
estimate.
Maint Eng Category From the drop down select the Maintenance Engineering Category that applies to the
operation listed to the left.
LPA Labor For the operation listed to the left insert the amount expended for LPA labor, if applicable.
LPA Equipment Rental For the operation listed to the left insert the amount expended on LPA equipment rental if
applicable.
Materials/Contracts(Non-Bid) For the operation listed to the left insert the amount expended for materials and/or contracts
that was not required to be bid, if applicable.
Materials/Deliver&Install, For the operation listed to the left insert the amount expended using a bidding process for
Request for Quotations(Bid Items) materials,deliver&install and/or request for quotations, if applicable.
Formal Contract For the operation listed to the left insert the amount expended for items bid using the formal
contract process, if applicable.
Total Operation Cost This is a calculated field, it will sum the amounts expended for the operation listed to the left.
Operation Engineering Inspection Fee For the operation listed to the left insert the amount of engineering inspection charged for
this operation, if applicable.
Total Maintenance This is a calculated field, no entry necessary. It is the sum of all maintenance operations.
Maintenance Engineering Cost Summary
Preliminary Engineering Fee Insert the dollar amount of funds spent on preliminary engineering for this maintenance
section.
Engineering Inspection Fee Insert the amount of funds expended for Engineering Inspection.
Material Testing Costs Insert the dollar amount of funds spent on material testing costs, if applicable.
Advertising Costs Insert the dollar amount of funds spent on advertising costs, if applicable.
Bridge Inspection Costs Insert the dollar amount of funds spent on bridge inspection costs, if applicable.
Total Maintenance Engineering This is a calculated field, no entry is necessary. This is the sum of all maintenance
engineering costs listed above.
Total Maintenance Program Costs Insert the total cost of the Maintenance and Maint. Engineering. The maintenance amount
will be the amount from the Total Cost from the Maintenance Items table. The Maint. Eng
will be the Maintenance Engineering Total from above.
Printed 12/10/19 BLR 14222(Rev. 10/18/19)
Instructions for BLR 14222-Page 4 of 4
Contributions, Refunds, Enter the dollar amount of contributions, refunds or amounts paid with other funds for this
Paid with Other Funds maintenance section, if applicable, for both maintenance and maintenance engineering.
Total Motor Fuel Tax Portion These are calculated fields, no entry is necessary. This is the sum of the total cost minus
the amount paid with funds other than MFT funds.
Total Motor Fuel Tax Funds Authorized Insert the total amount of MFT funds authorized for maintenance under the maintenance
column, and the total amount of MFT funds authorized for maintenance engineering under
the Maint. Engineering column.
Surplus/Deficit These are calculated fields, no entry is necessary. This is the sum of the Total Motor Fuel
Tax funds authorized minus the Total Motor Fuel Tax portion. A positive number will result
in a credit to the unobligated fund of the Motor Fuel Tax fund. A negative number means
more funds were spent than authorized. If the negative number has a resolution to cover the
overage,the item(s)that resulted in the overage have been approved by IDOT, and are
covered in the overrun policy,this amount will be authorized. If these conditions are not
met,you must contact your District office for guidance.
Certification Upon submittal of this form as the maintenance expenditure statement the LPA official shall
check this box as certification.
End of instructions for Maintenance Expenditure Statement
Submitted
Local Public Agency Official The proper official shall sign, insert their title and date here. For Estimates of Cost covering
a Township/Road District the road commissioner shall sign and date as Local Public Agency
Official. For Municipalities the municipal official shall sign and date here.
County Engineer/Superintendent of Highways For County project and/or Township/Road District projects the county engineer/
superintendent of highways shall sign here.
Approved Upon approval the Regional Engineer shall sign and date here.This approval is subject to
change based upon a documentation review by the Department.
A minimum of three(3)signed originals must be submitted to the Regional Engineer's District office.
Following the Regional Engineer's approval, distribution will be as follows:
Local Public Agency Clerk
Engineer(Consultant or County Engineer)
District File
Printed 12/10/19 BLR 14222(Rev.10/18/19)
v6 De Resolution for Maintenancepqre
Of ati011 Under the Illinois Highway Code o ti
Resolution Number Resolution Type Section Number
Original I 20-00000-00-GM
BE IT RESOLVED, by the Council of the City of
Governing Body Type Local Public Agency Type
McHenry Illinois that there is hereby appropriated the sum of One hundred thirty-
Name of Local Public Agency
six thousand five hundred twenty five Dollars ($136,525.00
of Motor Fuel Tax funds for the purpose of maintaining streets and highways under the applicable provisions of Illinois Highway Code from
01/01/20 to 12/31/20
Beginning Date Ending Date
BE IT FURTHER RESOLVED,that only those operations as listed and described on the approved Estimate of Maintenance Costs,
including supplemental or revised estimates approved in connection with this resolution, are eligible for maintenance with Motor Fuel Tax
funds during the period as specified above.
BE IT FURTHER RESOLVED,that City of McHenry
Local Public Agency Type Name of Local Public Agency
shall submit within three months after the end of the maintenance period as stated above,to the Department of Transportation,on forms
available from the Department, a certified statement showing expenditures and the balances remaining in the funds authorized for
expenditure by the Department under this appropriation, and
BE IT FURTHER RESOLVED,that the Clerk is hereby directed to transmit four(4)ceritified originals of this resolution to the district office
of the Department of Transportation.
I Trisha Ramel City Clerk in and for said City
Name of ClerkLocal Public Agency Type Local Public Agency Type
of McHenry in the State of Illinois, and keeper of the records and files thereof, as
Name of Local Public Agency
provided by statute,do hereby certify the foregoing to be a true, perfect and complete copy of a resolution adopted by the
Council of McHenry at a meeting held on 12/16/19
Governing Body Type Name of Local Public Agency a e
IN TESTIMONY WHEREOF, I have hereunto set my hand and seal this 16th day of December, 2019
Day Month,Year
SEAL)
Clerk Si nature
APPROVED
Regional Engineer
Department of Transportation Date
Printed 12/10/19 BLR 14220(Rev.02/08/19)
Instructions for BLR 14220
This form shall be used when a Local Public Agency(LPA)wants to perform maintenance operations using Motor Fuel Tax(MFT)funds.
Refer to Chapter 14 of the Bureau of Local Roads and Streets Manual(BLRS Manual)for more detailed information.This form is to be
used by a Municipality or a County. Road Districts will use BLR 14221. For signature requirements refer to Chapter 2, Section 3.05(b)of
the BLRS Manual.
When filling out this form electronically, once a field is initially completed, fields requiring the same information will be auto-populated.
Resolution Number Insert the resolution number as assigned by the LPA, if applicable.
Resolution Type From the drop down box, choose the type of resolution:
Original would be used when passing a resolution for the first time for this project.
Supplemental would be used when passing a resolution increasing appropriation above
previously passed resolutions.
Amended would be used when a previously passed resolution is being amended.
Section Number Insert the section number of the improvement covered by the resolution.
Governing Body Type From the drop down box choose the type of administrative body. Choose Board for County; Council or
President and Board of Trustees for a City,Village or Town.
LPA Type From the drop down box choose the LPA body type; County, City,Town or Village.
Name of LPA Insert the name of the LPA.
Resolution Amount Insert the dollar value of the resolution for maintenance to be paid for with MFT funds in words,
followed by the same amount in numerical format in the().
Beginning Date Insert the beginning date of the maintenance period. Maintenance periods must be a 12 or 24 month
consecutive period.
Ending Date Insert the ending date of the maintenance period.
LPA Type From the drop down box choose the LPA body type; County, City,Town or Village.
Name of LPA Insert the name of the LPA.
Name of Clerk Insert the name of the LPA Clerk.
LPA Type From the drop down box choose the LPA body type; County, City,Town or Village.
LPA Type From the drop down box choose the LPA body type; County, City,Town or Village.
Name of LPA Insert the name of the LPA.
Governing Body Type From the drop down box choose the type of administrative body. Choose Board for County; Council or
President and Board of Trustees for a City,Village or Town.
Name of LPA Insert the name of the LPA.
Date Insert the date of the meeting.
Day Insert the day the Clerk signed the document.
Month,Year Insert the month and year of the clerk's signature.
Clerk Signature Clerk shall sign here.
Approved The Department of Transportation representative shall sign and date here upon approval.
Three(3)certified signed originals must be submitted to the Regional Engineer's District office.
Following IDOT's approval,distribution will be as follows:
Local Public Agency Clerk
Engineer(Municipal, Consultant or County)
District
Printed 12/10/19 BLR 14220(Rev.02/08/19)
Ob--w Department of Public Works
Troy Strange, Director of Public Works
v 1415 Industrial Drive
McHenry, Illinois 60050
Phone: (815) 363-2186
McHenr
Fax: (815) 363-2214
www.c ityofm c h e n ry.o rg
CONSENT AGENDA SUPPLEMENT
DATE: December 16, 2019
TO:Mayor and City Council
FROM: Troy Strange, Director of Public Works
RE:Sale of Four (4) City Vehicles
ATT: Ordinance Authorizing the Sale of Public Property
Agenda Item Summary:
Council is being asked to consider staff's request for the authorization of an Ordinance to sell
four (4) vehicles. Each fiscal year staff conducts an analysis of its vehicle fleet after new
vehicles are purchased through the approved Capital Improvement Plan (CIP) and conducts an
analysis and any additional vehicles seized throughout the year. This process includes the
examination of vehicle age, overall mileage, vehicle condition and historical maintenance costs
in order to determine if a vehicle should be retired from service. Staff has concluded that two
vehicles from the Public Works Department, one vehicle from the Community Development
Department, and one vehicle from the Parks Department should be retired from service and/or
sold at auction to the highest bidder. The funds generated from the sale of these vehicles will
then be placed into the General Fund. Staff will be present to answer any questions Council
may have at the meeting.
Background:
The Public Works Department currently has two (2) vehicles that are scheduled for auction, one
of which was replaced and one which is no longer feasible to keep in service. The Community
Development Department has one (1) vehicle which is scheduled for auction which will be
replaced this year. The Parks Department has one (1) vehicle which is scheduled for auction
which was replaced this past year.
These four vehicles are identified as follows:
Status Department Year Make Model VIN/Serial# Mileage Age
Retired PW Streets 2004 Chevy 2500 1GCHK2419E184598 94,220 15 yrs
Retired PW Sewer 2002 Chevy 2500 1GCHK29122E187669 78,542 17 yrs
Retired Parks 2005 Ford F250 1FTSF21P55EC71614 95,685 14 yrs
Retired Community Development 2003 Ford Ranger 1FTYR15E93PB83459 135,162 16 yrs
Analysis:
All four of the above vehicles are between (14) fourteen years and (17) seventeen years in age.
They all have mileage that ranges between 78,542 and 135,162 miles. Overall condition and
mechanical maintenance records confirm that the cost to maintain these vehicles well
outweighs the value of the vehicles and keeping them in service would not be cost effective to
the City. The 2003 Ford Ranger which belongs to the Community Development Department is
scheduled for replacement this year. The 2005 Ford F250 which belongs to the Parks
Department was replaced this past year. The 2002 Chevy Silverado 2500 Duramax which
belongs to the Sewer Division was replaced this past year. The 2004 Chevy Silverado 2500
which belongs to the Street Division is no longer serviceable and will not be replaced due to
personnel and equipment attrition.
Recommendation:
Staff recommends utilizing the services of Clinton Auto Auctions to sell these vehicles and
equipment. The City works with Clinton Auto Auctions on a regular basis regarding the sale of
vehicles and has always received positive results. The timely sale of this property will allow for
the highest purchase prices and return of revenue to the General Fund.
If Council concurs, then it is recommended to approve the attached Ordinance authorizing
the sale of the presented vehicles through Clinton Auto Auction out of Clinton, Illinois.
Ordinance No.ORD-19-
An Ordinance Authorizing the Sale of Public Property
Owned by the City of McHenry
WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule
municipality as contemplated under Article VII, Section 6, of the Constitution of the State of
Illinois, and the passage of this Ordinance constitutes an exercise of the City's home rule powers
and functions as granted in the Constitution of the State of Illinois; and
WHEREAS, in the opinion of the corporate authorities of the City of McHenry, it is no
longer necessary or useful to or for the best interests of the City of McHenry to retain ownership
of the public property hereinafter described;and
WHEREAS, it has been determined by the Mayor and City Council of the City of
McHenry to sell said public property for cash.
NOW THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF MCHENRY,as follows:
SECTION 1: The Mayor and City Council of the City of McHenry find that the
following described public property now owned by said jurisdiction is no longer necessary to said
jurisdiction and said jurisdiction would be best served by the said public property sale:
Status Department Year Make Model VIN/Serial# Mileage Age
Retired PW Streets 2004 Chevy 2500 1GCHK2419E184598 94,220 15 yrs
Retired PW Sewer 2002 Chevy 2500 1GCHK29122E187669 78,542 17 yrs
Retired Parks 2005 Ford F250 1FTSF21P55EC71614 95,685 14 yrs
Retired Community Development 2003 Ford Ranger 1FTYR15E93PB83459 135,162 16 yrs
SECTION 2: The Director of Public Works is hereby authorized and directed to execute
an auction services agreement with Clinton Auto Auction Services and to sell via public auction
utilizing the services of said company the following vehicles now owned by the City of
McHenry:
2004 Chevrolet 2500 vehicle(VIN: 1GCHK2419E184598)
2002 Chevrolet 2500 vehicle(VIN: 1GCHK29122E187669)
2005 Ford F250 vehicle(VIN: 1FTSF211`55EC71614)
2003 Ford Ranger Vehicle(VIN: 1FTYR15E93PB83459)
SECTION 3: Upon payment in full, the Director of Public Works is hereby authorized
and directed to convey and/or transfer the aforesaid property to the respective buyers.
SECTION 4: This ordinance shall be in full force and effect from and after its passage
by the corporate authorities.
PASSED and APPROVED this h day of 2019
Voting Aye:
Voting Nay:
Abstaining:
Not Voting:
Absent:
Mayor
ATTEST:
City Clerk
John R. Birk, Chief of Police
McHenry Municipal Center
333 Green Street
vAoft
McHenry, Illinois 60050
Phone: (815) 363-2200
McHer r jbirk@cityofmchenry.org
815) 363-2149
@cityofmchenry.org
CONSENT AGENDA SUPPLEMENT
DATE: December 161", 2019
TO: Mayor and City Council
FROM: John R. Birk, Chief of Police
RE: Ordinance Amending City Code 6-5D-2; Unlawful Possession of Cannabis
ATT: Proposed Ordinance
Item Summary:
Attached Council will find an Ordinance that repeals and replaces City Code 6-513-2; Unlawful
Possession of Cannabis so that the new City Code is in compliance with the Public Act 101-0027
known as the Cannabis Regulation and Tax Act which takes effect January 1", 2020. Staff is
seeking Council's approval of the revised local restrictions related to the unlawful possession of
cannabis.
Background:
In July of 2019 the Illinois Governor signed new legislation into law which established the
Cannabis Regulation and Tax Act known as Public Act 101-0027. Within this Act the
consumption, purchase and possession of cannabis for adult twenty one years of age or old shall
become legal on January 1st, 2020, when purchased, possessed and consumed in accordance with
the rules established in the Act.
Currently the City Code has an Ordinance (6-5D-2) that identified the Unlawful Possession of
Cannabis. The language in this code will become outdated and unenforceable on January I",
2020 when the new law takes effect.
Analysis:
In conducting a review of the new Cannabis Regulation and Tax Act Staff has found the
following circumstances in which the Possession and Consumption of Cannabis would still be
illegal by the state but can also be enforced through our Local Code as well.
Unlawful Possession of Cannabis: The following constitutes the offense of unlawful possession
of cannabis by any person within the City:
1. Purchase, possession, consumption, or use of cannabis under the age of 21, except as
authorized by the Compassionate Use of Medical Cannabis Program Act or by the
Community College Cannabis Vocational Pilot Program.
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.
2. Any parent or guardian to knowingly authorize or permit his or her residence, any other
private property under his or her control, or any vehicle, conveyance, or watercraft under
his or her control to be unlawfully used for consumption of cannabis by persons under the
age of 21.
3. For any driver or passenger to be in possession of cannabis within any area of a vehicle
on a City road or highway except when the cannabis is stored in a sealed, odor-proof,
child-resistant cannabis container.
Unlawful Consumption Cannabis: It is unlawful to consume cannabis in or about any Public
Place. "Public place" means any place where a person could reasonably be expected to be
observed by others, including all parts of buildings owned in whole or part, or leased, by the
State,the City, or a unit of local government and all areas in a park, recreation area, wildlife
area, or playground owned in whole or in part, leased, or managed by the State, the City, or a
unit of local government. "Public place" does not include a private residence unless the private
residence is used to provide licensed childcare, foster care, or other similar social service care on
the premises.
The attached revised Ordinance of City Code will bring Section 6-5D-2 into compliance and
allow law enforcement to enforce the above listed violations through local ordinance rather than
just state law.
Recommendation:
Therefore, if Council concurs, it is recommended that a motion be made to adopt the
attached Ordinance repealing and replacing Section 6-5D-2; Unlawful Possession of
Cannabis.
ORDINANCE NO.
An Ordinance Amending Title 6,Public Safety, Chapter S; Offenses,Article D;Drug
Paraphernalia;Possession of Cannabis,Section 6-5D-2; Unlawful Possession of Cannabis, of
the City of McHenry's Municipal Code
WHEREAS, the City of McHenry, McHenry County, Illinois, ("City") is a home rule
municipality as contemplated under Article VII,Section 6,of the Constitution of the State of Illinois,
and the passage of this Ordinance constitutes an exercise of the City's home rule powers and
functions as granted in the Constitution of the State of Illinois; and
NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF
McHENRY, McHenry County, Illinois, as follows:
SECTION 1: Title 6; Public Safety, Chapter 5; Offenses, Article D; Drug Paraphernalia;
Possession of Cannabis, Section 6-5D-2; Unlawful Possession of Cannabis shall be fully repealed
and replaced in its entirety with the following language:
6-5D-2: UNLAWFUL POSSESSION OF CANNABIS; UNLAWFUL
CONSUMPTION OF CANNABIS:
A. Definitions:
Cannabis" means marijuana, hashish and other substances which are identified as including any
parts of the plant Cannabis Sativa and including derivatives or subspecies, such as indica, of all
strains of cannabis,whether growing or not;the seeds thereof,the resin extracted from any part of
such plant;and any compound,manufacture,salt,derivative,mixture,or preparation of such plant,
its seeds,or resin,including tetrahydrocannabinol(THC)and all other naturally produced cannabinol
derivatives, whether produced directly or indirectly by extraction; however, "cannabis" does not
include the mature stalks of such plant,fiber produced from such stalks, oil or cake made from the
seeds of such plant, any other compound, manufacture, salt, derivative, mixture, or preparation of
such mature stalks(except the resin extracted therefrom),fiber,oil or cake,or sterilized seed of
such plant which is incapable of germination."Cannabis"does not include industrial hemp as defined
and authorized under the Industrial Hemp Act. "Cannabis"also means concentrate and cannabis-
infused products.
Cannabis container" means a sealed, traceable, container, or package used for the purpose of
containment of cannabis or a cannabis-infused product during transportation.
Cannabis-infused product" means a beverage, food, oil, ointment, tincture, topical
formulation,or another product containing cannabis that is not intended to be smoked.
Consumption" means the inhalation, absorption or ingestion of Cannabis or Cannabis Infused
Products.
Public place" means any place where a person could reasonably be expected to be observed by
others, including all parts of buildings owned in whole or part,or leased,by the State,the City,or a
unit of local government and all areas in a park,recreation area,wildlife area,or playground owned
in whole or in part, leased,or managed by the State,the City, or a unit of local government. "Public
place"does not include a private residence unless the private residence is used to provide licensed
childcare, foster care,or other similar social service care on the premises.
B. Unlawful Possession of Cannabis: The following constitutes the offense of
unlawful possession of cannabis by any person within the City:
1.Purchase,possession,consumption,or use of cannabis under the age of 21,
except as authorized by the Compassionate Use of Medical Cannabis
Program Act or by the Community College Cannabis Vocational Pilot
Program.
2.Any parent or guardian to knowingly authorize or permit his or her
residence, any other private property under his or her control,or any
vehicle,conveyance, or watercraft under his or her control to be
unlawfully used for consumption of cannabis by persons under the age of
21.
3.For any driver or passenger to be in possession of cannabis within any area
of a vehicle on a City road or highway except when the cannabis is stored
in a sealed,odor-proof,child-resistant cannabis container.
C. Unlawful Consumption Cannabis in or about any Public Place.
D. Violation;Penalty: Whoever violates any provision of this section shall be fined
two hundred dollars($200.00)per offense and shall be responsible for the City's
cost of prosecution, including reasonable attorney fees incurred by the City. The
fine may be paid at the Police Department without incurring prosecution fees if
paid prior to the date of the Adjudication Court Hearing.
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 affect,impair,invalidate or nullify the remainder thereof,which remainder shall remain and
continue in full force and effect.
SECTION 3:All ordinances or parts of ordinances in conflict herewith are hereby repealed to
the extent of such conflict.
SECTION 4: This Ordinance shall be in full force and effect upon its passage and approval.
Voting Aye:
Voting Nay:
Absent:
Abstain:
APPROVED:
Mayor Wayne S. Jett
SEAL)
ATTEST:
Deputy City Clerk Monte Johnson
Passed:
Approved:
CERTIFICATION
I,MONTE JOHNSON,do hereby certify that I am the duly appointed,acting and qualified
Deputy City Clerk of the City of McHenry,McHenry County,Illinois,and that as such Deputy City
Clerk, I am the keeper of the records and minutes and proceedings of the Mayor and Council
Members of said City of McHenry.
I do hereby further certify that at a regular meeting of the Mayor and Council Members of the
City of McHenry,held on the day of 2019,
the foregoing Ordinance entitled An Ordinance Amending Title 6;Public Safety, Chapter S;
Offenses,Article D;Drug Paraphernalia;Possession of Cannabis,Section 6-5D-2; Unlawful
Possession of Cannabis, of the City of McHenry's Municipal Code for the Sale or Disposal of
Personal Property Owned by the City of McHenry,was duly passed by the City Council of the
City of McHenry.
I do further certify that the original, of which the attached is a true and correct copy, is
entrusted to me as the Deputy City Clerk of said City for safekeeping, and that I am the lawful
custodian and keeper of the same.
GIVEN under my hand and seal this day of 2019.
Monte Johnson, Deputy City Clerk
City of McHenry,
McHenry County, Illinois
SEAL)
John R. Birk, Chief of Police
McHenry Municipal Center
4 333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2200
M Henr jbirkFax: (
815) 363-2149
@cityofmchenry.org
CONSENT AGENDA SUPPLEMENT
DATE: December 16th, 2019
TO: Mayor and City Council
FROM: John R. Birk, Chief of Police
RE: Ordinance Establishing the Procedure for the Disposal of Surplus Property
ATT: Proposed Ordinance
Item Summary:
Attached Council will find an Ordinance that establishes a procedure for City Staff to following
when disposing of City owned personal property. Staff is requesting Council's authorization to
approve the attached ordinance amending Title 1; Administration, Chapter 5; Official and
Corporate Provisions, by adding Section 1-5-3, Surplus Property, and amending Title 6; Public
Safety, Chapter 2; Police, Article A; General Provisions, Section 6-2A-4, Administrative duties
of Chief of Police. Staff will be present to answer any questions Council may have.
Background:
Current practice for the disposal of City owned property involves the passage of individual
ordinances each time Staff wishes to dispose of property. Within these individual ordinances
staff follows procedures set forth in 65 ILCS 5/11-76-4 of the Illinois Municipal Code. With the
Municipal Code City owned property can be disposed of in the following ways:
1. City ordinance may authorize the sale of personal property in such manner as they may
designate, with or without advertising the sale.
2. City ordinance may authorize any municipal officer to convert personal property into
some other form that is useful to the city or village by using the material in the personal
property
3. City ordinance may authorize any municipal officer to convey or turn in any specified
article of personal property as part payment on a new purchase of any similar article.
This current process is repetitive and time consuming.
Analysis:
As a way to improve efficiencies within the City, staff examined the process of establishing a
Surplus Property Ordinance that would eliminate the need for individual ordinances to be passed
each time a piece of surplus property was being disposed of. As a Home Rule municipality
McHenry has the authority to pass an ordinance that regulates the disposition of surplus property.
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.
In examining this responsibility it was determined that the Office of the Chief of Police conducts
the highest volume of surplus property dispositions due to the combination of City owned
surplus property and police property that was abandoned, lost or stolen, otherwise illegally
possessed or seized.
By establishing an ordinance that allows surplus property to be disposed of efficiently, Staff can
focus attention on other City matters. Therefore, staff is recommending that a Surplus Property
Ordinance be implemented with the following language:
Sec. 1-5-3. Surplus Property.
When it is no longer necessary or useful to or for the best interests of the City to retain
personal property owned by the City, as determined by the Chief of Police, in
consultation with the City Administrator (collectively, "authorized agents'), the
authorized agents of the City are hereby authorized and directed to take the following
actions: (1) to sell personal property in such manner as the authorized agents may
designate, with or without advertising for sale, or (2) to convert personal property into
some other form that is useful to the City by using the material in the personal property,
or (3) convey or turn in any of the personal property as partial payment on a new
purchase of any similar article, or (4) donate personal property with a value of less
than $300 to a certified non-profit organization, or (5) dispose ofproperty by destruction
for items that have no relevant value.
A disposition log for all surplus property owned by the City will be maintained by the
Deputy Clerk and will consist of information provided by the authorized agents,
including the manner of disposition, date of disposition, approval authority, all outside
parties involved the acquisition of the property and all sale paperwork associated with
the transaction.
This recommended ordinance will allow for an internal system of checks and balances between
the authorized agents and the Deputy City Clerk. Furthermore this ordinance will establish a
master log of all property disposals of City owned personal property, providing accountability
and transparency.
Recommendation:
Therefore, if Council concurs, it is recommended that a motion be made to adopt the
attached Ordinance creating Section 1-5-3, Surplus Property and amending Section 6-2A-4,
Administrative Duties of the Chief of Police.
ORDINANCE NO.
An Ordinance Amending Title 1; Administration, Chapter 5, Official and Corporate
Provisions, by adding Section 1-5-3, Surplus Property, and amending Title 6,Public Safety,
Chapter 2;Police,Article A; General Provisions, Section 6-2A-4,Administrative duties of
Chief of Police, of the City of McHenry's Municipal Code for the Sale or Disposal of Personal
Property Owned by the City of McHenry
WHEREAS, the City of McHenry, McHenry County, Illinois, ("City") is a home rule
municipality as contemplated under Article VII,Section 6,of the Constitution of the State of Illinois,
and the passage of this Ordinance constitutes an exercise of the City's home rule powers and
functions as granted in the Constitution of the State of Illinois; and
WHEREAS,the McHenry Police Department regularly obtains custody of property that was
abandoned, lost or stolen, otherwise illegally possessed or seized.
WHEREAS, in accordance with the Law Enforcement Disposition of Property Act (765
ILCS 1030) and the Code of Criminal Procedure of 1963, the Chief of Police has the authority to
dispose of property that has been taken into custody by the Police Department.
WHEREAS,from time to time,the City retires or replaces City owned personal property that
is no longer necessary or useful to or for the best interests of the City to retain.
WHEREAS, it is in the interest of the City to improve the process for disposing of City
owned personal property, the City's Municipal Code shall be amended to allow for the sale or
disposal of personal property owned by the City.
NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF
McHENRY, McHenry County, Illinois, as follows:
SECTION 1: Title 1, Administration, Chapter 5, Official and Corporate Provisions, of the
Municipal Code, City of McHenry, Illinois is hereby amended with the addition of Section 1-5-3,
Surplus Property, by adding the underline language as follows:
Sec. 1-5-3. Surplus Property.
When it is no longer necessary or useful to or for the best interests of the City to retain
personal property owned by the City, as determined by the Chief of Police, in consultation
with the City Administrator(collectively,"authorized agents"),the authorized agents of the
City are hereby authorized and directed to take the following actions: (1) to sell personal
property in such manner as the authorized agents mayesignate,with or without advertising
for sale or(2)to convert personal property into some other form that is useful to the CitybY
using the material in the personal grope , or (3) convey or turn in any of the personal
properly as partial payment on a new purchase of any similar article, or(4)donate personal
property with a value of less than$300 to a certified non-profit organization,or(5)dispose
of property by destruction for items that have no relevant value.
A disposition log for all surplus property owned by the City will be maintained by the
Deputy Clerk and will consist of information provided by the authorized agents, including
the manner of disposition date of disposition approval authority,all outside parties involved
the acquisition of the property and all sale paperwork associated with the transaction.
SECTION 2:Title 6,Public Safety,Chapter 2,Police,Article A,General Provisions,Section
6-2A-4,Administrative duties of Chief of Police,of the Municipal Code,City of McHenry,Illinois
is hereby amended by adding the underlined language as follows:
Sec. 18-4. Administrative duties of Chief of Police.
The Chief of Police shall keep such records and make such reports concerning the activities
of the Department as may be required by statute or by the Council. The Chief of Police shall
be responsible for the performance by the Department of all of its functions and all persons
who are employees of the Department shall serve subject to the orders of the Chief of Police.
The Chief of Police in consultation with the City Administrator, may sell, convert, or
convey personal property owned by the Cily pursuant to Section 1-5-3 Surplus Propert of
this Code.
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 affect,impair,invalidate or nullify the remainder thereof,which remainder shall remain and
continue in full force and effect.
SECTION 4:All ordinances or parts of ordinances in conflict herewith are hereby repealed to
the extent of such conflict.
SECTION 5: This Ordinance shall be in full force and effect upon its passage and approval.
Voting Aye:
Voting Nay:
Absent:
Abstain:
APPROVED:
Mayor Wayne S. Jett
SEAL)
ATTEST:
Deputy City Clerk Monte Johnson
Passed:
Approved:
Z.-UPMcHenryCityof lOrdinances&rplusProperty Secs 1-5-3 and 6-2A-4.doc
CERTIFICATION
I,MONTE JOHNSON,do hereby certify that I am the duly appointed,acting and qualified
Deputy City Clerk of the City of McHenry,McHenry County,Illinois,and that as such Deputy City
Clerk, I am the keeper of the records and minutes and proceedings of the Mayor and Council
Members of said City of McHenry.
I do hereby further certify that at a regular meeting of the Mayor and Council Members of the
City of McHenry,held on the day of 2019,
the foregoing Ordinance entitled An Ordinance Amending Title 1; Administration, Chapter S;
Official and Corporate Provisions,by adding Section 1-5-3,Surplus Property,and amending Title
6,Public Safety,Chapter 2,Police,Article A;General Provisions,Section 6-2A-4,Administrative
duties of Chief of Police, of the City of McHenry's Municipal Code for the Sale or Disposal of
Personal Property Owned by the City ofMcHenry,was duly passed by the City Council of the City
of McHenry.
I do further certify that the original, of which the attached is a true and correct copy, is
entrusted to me as the Deputy City Clerk of said City for safekeeping, and that I am the lawful
custodian and keeper of the same.
GIVEN under my hand and seal this day of 2019.
Monte Johnson, Deputy City Clerk
City of McHenry,
McHenry County, Illinois
SEAL)
Department of Community&
Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
McHenr Fax: (815) 363-2173
www.ci.mchenry.il.us
CONSENT AGENDA
DATE: December 16, 2019
TO: Mayor and City Council
FROM: Ross Polerecky, Director of Community Development
RE: Request to award a contract in the amount of$141,829 to Trane Building
Services for the replacement of two rooftop units at the Municipal Center
with a general fund budget amendment of$11,479
Agenda Item Summary: Over the course of the last three years the municipal center has had two
catastrophic failures in the rooftop units that provide heating and cooling to the municipal center,
each of these units were replaced. The two original remaining units have been identified in the CIP
for replacement due to their age and the cost of repairs. Staff is looking to award the contract to
Trane in the amount of$141,829 along with a budget amendment of$11,479
Background: The City of McHenry participates in a cooperative purchasing program through US
Communities, this program allows for cost savings through competitive bidding. Trane has been
identified as the supplier through US Communities. Trane provides a turkey process which
includes, ordering, installing and managing the project from beginning to end. The original CIP
amount of$200,000 allocated for the replacement of two RTU's was reduced by $70,000 this past
spring when we needed to, unexpectedly, replace a unit that failed. The budget amendment of
11,479 will allow us to replace the last two remaining units.
Analysis: The municipal center is approaching 30 years old, many of the original mechanical
systems are coming to the end of their useful life span. The useful lifespan of a rooftop unit is
roughly 25 years therefore it is important to have them replaced prior to another failure.
If City Council concurs, staff is seeking a motion to award a contract to Trane Building
Services,in the amount of$141,829,for the replacement of two rooftop units at the Municipal
center with a general fund (100-01-8200) budget amendment in the amount of$11,479
TRAME
Building Services
i
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Trane Turnkey Proposal
Turnkey Proposal For:
Ross Polerecky
Director of Community Development
City of McHenry
333 South Green Street
McHenry, IL 60050
Local Trane Office:
Trane U.S. Inc.
7100 South Madison
Willowbrook, IL 60527-5505
Local Trane Representative:
Patrick Heneberry
Account Executive
Cell: (630) 930-2551
Office: (630)734-6149
Proposal ID: 2665666
Quote Number: 30-192267-19-001
Co-op Contract Number: USC 15-JLP-023
Date: November 16, 2019
Proposal Number:2665666
TZWE
Prepared For: Date:
Ross Polerecky November 16th, 2019
Job Name: Proposal Number: 2665666
City of McHenry Roof Top Unit Replacement
Delivery Terms: Payment Terms:
Freight Allowed and Prepaid—F.O.B Factory Net 30
Proposal Expiration Date:
30 Days
Scope of Work Intellipak eplacemen",
Existing Condition:
There are a total of 4 Trane Intellipak(IPAK) RTU's on the City of McHenry Building roof, RTU's-1 &4 were
recently replaced with new Intellipak RTU's. RTU'S 2 & 3 are at the end of useful life and in need of
replacement. This proposal addresses the replacement of RTU-2 (30Ton) & RTU-3 (25Ton).
Installation of HVAC Equipmenil
Trane shall provide all necessary labor and materials to replace the existing Trane IPAK RTU's(cooling only)
with new Trane IntelliPak Roof-top units as follows:
Furnish and install 2 new Trane IntelliPak Roof-top units (cooling only)with features and options listed below:
Capacity of units will be the same as existing
Pre& Post Air measurement of Total air flow at the units (no downstream diffuser measurements will be
taken)
Recovery &removal of existing refrigerant
Disconnect existing electrical wiring (power, controls&safety wiring)
Disconnect and removal of existing units from site
Installation of new curb gasket
Crane lift during normal working hours (non-weekend or premium time). Customershall coordinate
moving staff out from below lift area during lift times.
Set and Install new units in place onto existing curbs
Re-connect all existing electrical power, control and fire alarm connections to new unit
Both units will be integrated into the Trane Trace SC controls platform
Re-connection of Building pressure control line
Start-up&commissioning of new units by Trane technicians
Adherence to Trane safety requirements
2019 Trane All rights reserved Page 1 of 8
Confidential and Proprietary Information of Trane U.S. Inc.
Proposal Number:2665666
TJNNE
Building Services
IntelliPak Features and Options
DX Cooling only
R-410A refrigerant
460 Volt-60 Hertz-3 Phase
0-100% Economizer
Economizer control w/comparative enthalpy
Grease lines and filter gauge
MERV 8 High efficiency throwaway filters
Forward-curved (FC)supply fan
Constant volume(CV)-Zone temperature control
Unit disconnect switch wiith high fault SCCR
Ultra low leak dampers(AMCA 511 Class 1A)with fault detection &diagnostics
IntelliPak replacement unit with hinged access doors
Trane communication BACnet interface module
Startup Included-Trane Service must start equipment for warranty to be honored
5 Year Compressor Warranty
151 Year Labor Warranty
Item: Al Qty: 1 Tag(s): RTU-3
25 Ton unit
100% Exhaust-3 hp with Statitrac building pressure control
600 rpm-Exhaust/return fan
10hpFC
1400 rpm
Item: A2 Qty: 1 Tag(s): RTU-2
30 Ton unit
100% Exhaust-5 hp with Statitrac building pressure control
700 rpm-Exhaust/return fan
15hpFC
1200 rpm I
i
Proposed Schedule of Work
Day 1 —Pre-read of Total air flow;
Day-2/Day-3-Recover refrigerant and disconnect Electrical; Remove existing &install new units; Pre-start
units
Day-4 Factory Start-up and Post-read of Total air flow(or schedule for another day later in week). Day-2/Day-3
may be able to be reduced to one day depending on time of year and outside light available.
Additional Services Included:
As with all of our Projects, we provide as a value added service to our customers the following items:
Professional Project Management that includes project scheduling and coordination with subcontractors
and Owner
Equipment Start-up Services performed by our in-house personnel.
Complete Owner training with O&M documentation for a smooth transition for plant operations. As with
all of our projects, we shall provide operational training to maintenance personnel on the practical
aspects of the design, operation and maintenance of the mechanical system(s), user level troubleshoots
and warranty repair procedures.
2019 Trane All rights reserved Page 2 of 8
Confidential and Proprietary Information of Trane U.S.Inc.
Proposal Number:2665666
TR WE
Building Services
Notes/ Clarifications/Scheduling
Equipment Order Release and Services rendered are dependent on receipt of PO/Subcontract and
credit approval
Trane will not perform any work if working conditions could endanger or put at risk the safety of our
employees or subcontractors
Asbestos or hazardous material abatement removal is not included
Engineering and equipment release 2 weeks
Equipment delivery 8-10 weeks
Additional services NOT included
Roofing work
Test and Balance of existing duct distribution and outlets i
Fire Alarm work except re-connect of any existing wiring at units
Structural or replacements of existing roof curbs j
Pipe freezing for isolation
Concrete Coring
Life Safety work
Temporary cooling or heat/Temporary facilities
Troubleshooting existing equipment or controls
Liquidated or consequential damages
Premium time labor(except identified Saturday work)
Payment or Performance Bonds
MBE/WBE
Hazardous waste removal/remediation
Taxes
Permits and fees
Unforeseen conditions
Site conditions associated with ground and civil existing conditions
Any work not specifically included in the above work scope
Trane appreciates the opportunity to earn your business.This controls investment will provide the City of McHenry with the
capability to significantly reduce operating costs and improve comfort conditions in your facility.
We look forward to partnering with the City of McHenry for all of your products and service needs. I will be contacting you
soon to discuss the proposal and to schedule the next steps.
WE VALUE THE CONFIDENCE YOU HAVE PLACED IN TRANE AND LOOK FORWARD TO PARTNERING WITH YOU.
2019 Trane All rights reserved Page 3 of 8
Confidential and Proprietary Information of Trane U.S. Inc.
i
k
OEM TWE'
Buffding Services j
k
O
Pricing and Acceptance
Final Pricing Per US Communities: 141,829.00
We hope that you find this proposal complete and look forward to being of service to you on this and many
additional projects. If you have any questions, please contact me at phone numbers listed below.
Trane Building Advantage"m
an Ingersoll Rand Company
Patrick Heneberry
Service Account Executive
Trane Commercial Systems and Services
Chicago/West Michigan District
Ingersoll Rand
7100 S.Madison Street
Willowbrook,IL 60527-5505
USA
Office: (630)734-6149
Mobil: (630)930-2551
Email: i:_<itrick.heneberry@trane.com
Website: trane.comlchicacio
2019 Trane All rights reserved Page 4 of 8
Confidential and Proprietary Information of Trane U.S. Inc.
Proposal Number:2665666
TRWE
Bulldhig Services
ACCEPTANCE_
This proposal is subject to Customer's acceptance of the attached Trane Terms and Conditions
Installation).
We value the confidence you have placed in Trane and look forward to working with you.
Submitted By: Patrick Heneberry Cell: (630)930-2551
Office: (630) 734-6149
Proposal Date: November 16, 2019
CUSTOMER ACCEPTANCE
Lake County Forest Preserves TRANE ACCEPTANCE
Trane U.S. Inc.
Authorized Representative
Authorized Representative
1
Printed Name
Printed Name i
i
Title Title j
Purchase Order Signature Date
Acceptance Date:License Number:
i
I
i
i
1
2019 Trane All rights reserved Page 5 of 8
Confidential and Proprietary Information of Trane U.S. Inc.
Proposal Number.2665666
Rerik/iirg Services
i
TERMS AND CONDITIONS—COMMERCIAL INSTALLATION
Company"shall mean Trane U.S.Inc..
1. Acceptance; Agreement. These terms and conditions are an Integral part of Company's offer and form the basis of any agreement (the
Agreement")resulting from Company's proposal(the"Proposal")for the commercial goods and/or services described(the"Work"). COMPANY'S i
TERMS AND CONDITIONS ARE SUBJECT TO PERIODIC CHANGE OR AMENDMENT.The Proposal is subject to acceptance in writing by the party to
whom this offer Is made or an authorized agent("Customer") delivered to Company within 30 days from the date of the Proposal. If Customer accepts the
Proposal by placing an order,without the addition of any other terms and conditions of sale or any other modification, Customer's order shall be deemed
acceptance of the Proposal subject to Company's terms and conditions. If Customers order is expressly conditioned upon Company's acceptance or assent to j
terms and/or conditions other than those expressed herein, return of such order by Company with Company's terms and conditions attached or referenced
serves as Company's notice of objection to Customer's terms and as Company's counter-offer to provide Work in accordance with the Proposal and the
Company terms and conditions. If Customer does not reject or object in writing to Company within 10 days,Company's counter-offer will be deemed accepted.
Customer's acceptance of the Work by Company will in any event constitute an acceptance by Customer of Company's terms and conditions. This Agreement
is subject to credit approval by Company. Upon disapproval of credit,Company may delay or suspend performance or,at its option,renegotiate prices and/or
terms and conditions with Customer. If Company and Customer are unable to agree on such revisions,this Agreement shall be cancelled without any liability,
other than Customer's obligation to pay for Work rendered by Company to the date of cancellation.
2. Pricing and Taxes. Unless otherwise noted,the price in the Proposal includes standard ground transportation and,if required by law,all sales,consumer,
use and similar taxes legally enacted as of the date hereof for equipment and material installed by Company. Tax exemption is contingent upon Customer
furnishing appropriate certificates evidencing Customers tax exempt status.Company shall charge Customer additional costs for bonds agreed to be provided.
Equipment sold on an uninstalled basis and any taxable labor/labour do not include sales tax and taxes will be added. Following acceptance without addition of
any other terms and condition of sale or any other modification by Customer, the prices stated are firm provided that notification of release for immediate
production and shipment is received at the factory not later than 3 months from order receipt. If such release is received later than 3 months from order receipt
date,prices will be Increased a straight 1%(not compounded)for each one-month period(or part thereof)beyond the 3 rnonth firm price period up to the date of
receipt of such release. If such release is not received within 6 months after date of order receipt,the prices are subject to renegotiation,or at Company's
option,the order will be cancelled. Any delay in shipment caused by Customer's actions will subject prices to increase equal to the percentage increase in list
prices during that period of delay and Company may charge Customer with incurred storage fees.
3. Exclusions from Work. Company's obligation is limited to the Work as defined and does not include any modifications to the Work site under the
Americans With Disabilities Act or any other law or building code(s). In no event shall Company be required to perform work Company reasonably believes is I
outside of the defined Work without a written change order signed by Customer and Company.
4. Performance. Company shall perform the Work in accordance with industry standards generally applicable in the area under similar circumstances as of the
time Company performs the Work Company may refuse to perform any Work where working conditions could endanger property or put at risk the safety of
persons. Unless otherwise agreed to by Customer and Company,at Customer's expense and before the Work begins,Customer will provide any necessary
access platforms,catwalks to safely perform the Work in compliance with OSHA or state industrial safety regulations.
5. Payment. Customer shall pay Company's invoices within net 30 days of invoice date. Company may invoice Customer for all equipment or material
furnished,whether delivered to the installation site or to an off-site storage facility and for all Work performed on-site or off-site. No retention shall be withheld
from any payments except as expressly agreed in writing by Company,in which case retention shall be reduced per the contract documents and released no
later than the date of substantial completion. Under no circumstances shall any retention be withheld for the equipment portion of the order. If payment is not
received as required,Company may suspend performance and the time for completion shall be extended for a reasonable period of time not less than the
period of suspension. Customer shall be liable to Company for all reasonable shutdown,standby and start-up costs as a result of the suspension. Company
reserves the right to add to any account outstanding for more than 30 days a service charge equal to 1.5%of the principal amount due at the end of each
month. Customer shall pay all costs(including attorneys'fees)incurred by Company in attempting to collect amounts due and otherwise enforcing these terms
and conditions. If requested,Company will provide appropriate lien waivers upon receipt of payment. Customer agrees that,unless Customer makes payment
In advance,Company will have a purchase money security interest in all equipment from Company to secure payment in full of all amounts due Company and
its order for the equipment,together with these terms and conditions,form a security agreement. Customer shall keep the equipment free of all taxes and
encumbrances,shall not remove the equipment from its original installation point and shall not assign or transfer any interest in the equipment until all payments
due Company have been made.
6. Time for Completion. Except to the extent otherwise expressly agreed in writing signed by an authorized representative of Company,all dates provided by
Company or its representatives for commencement,progress or completion are estimates only. While Company shall use commercially reasonable efforts to
meet such estimated dates,Company shall not be responsible for any damages for its failure to do so.
7. Access. Company and its subcontractors shall be provided access to the Work site during regular business hours,or such other hours as may be requested
by Company and acceptable to the Work site'owner or tenant for the performance of the Work,including sufficient areas for staging,mobilization,and storage.
Company's access to correct any emergency condition shall not be restricted.Customer grants to Company the right to remotely connect(via phone modem,
internet or other agreed upon means)to Customer's building automation system(BAS)and or HVAC equipment to view,extract,or otherwise collect and retain
data from the BAS,HVAC equipment,or other building systems,and to diagnose and remotely make repairs at Customer's request.
8. Completion. Notwithstanding any other term or condition herein,when Company informs Customer that the Work has been completed,Customer shall
inspect the Work in the presence of Company's representative,and Customer shall either(a)accept the Work in its entirety in writing,or(b)accept the Work in
part and specifically identify,in writing,any exception items. Customer agrees to re-inspect any and all excepted items as soon as Company informs Customer
that all such excepted items have been completed. The initial acceptance inspection shall take place within ten(10)days from the date when Company informs
Customer that the Work has been completed Any subsequent re-inspection of excepted items shall take place within five(5) days from the date when
Company informs Customer that the excepted items have been completed. Customer's failure to cooperate and complete any of said inspections within the
required time limits shall constitute complete acceptance of the Work as of ten(10)days from date when Company informs Customer that the Work,or the
excepted items,if applicable,has/have been completed.
9. Permits and Governmental Fees. Company shall secure(with Customer's assistance)and pay for building and other permits and governmental fees,
licenses,and inspections necessary for proper performance and completion of the Work which are legally required when bids from Company's subcontractors
are received, negotiations thereon concluded, or the effective date of a relevant Change Order,whichever is later. Customer is responsible for necessary
approvals,easements,assessments and charges for construction,use or occupancy of permanent structures or for permanent changes to existing facilities. If
the cost of such permits,fees,licenses and inspections are not included in the Proposal,Company will invoice Customer for such costs.
10. Utilities During Construction. Customer shall provide without charge to Company all water,heat,and utilities required for performance of the Work.
11. Concealed or Unknown Conditions. In the performance of the Work, if Company encounters conditions at the Work site that are(i)subsurface or
otherwise concealed physical conditions that differ materially from those indicated on drawings expressly incorporated herein or(ii)unknown physical conditions
of an unusual nature that differ materially from those conditions ordinarily found to exist and generally recognized as inherent in construction activities of the type
and character as the Work,Company shall notify Customer of such conditions promptly,prior to significantly disturbing same. If such conditions differ materially
and cause an increase in Company's cost of, or time required for, performance of any part of the Work,Company shall be entitled to, and Customer shall
consent by Change Order to,an equitable adjustment in the Contract Price,contract time,or both.
12. Pre-Existing Conditions. Company is not liable for any claims,damages,losses,or expenses,arising from or related to conditions that existed in,on,or
upon the Work site before the Commencement Date of this Agreement("Pre-Existing Conditions"),including,without limitation,damages,losses,or expenses
involving Pre-Existing Conditions of building envelope issues,mechanical issues,plumbing issues,and/or indoor air quality issues involving mold/mould and/or
2019 Trane All rights reserved Page 6 of 8
Confidential and Proprietary Information of Trane U.S. Inc.
Proposal Number:2665666
Quifding Servfces
fungi. Company also is not liable for any claims,damages,losses,or expenses,arising from or related to work done by or services provided by individuals or
entities that are not employed by or hired by Company.
13. Asbestos and Hazardous Materials. Company's Work and other services in connection with this Agreement expressly excludes any identification,
abatement, cleanup, control, disposal, removal or other work connected with asbestos, polychlorinated biphenyl ("PCB"), or other hazardous materials
hereinafter,collectively,"Hazardous Materials"). Customer warrants and represents that,except as set forth in a writing signed by Company,there are no
Hazardous Materials on the Work site that will in any way affect Company's Work and Customer has disclosed to Company the existence and location of any
Hazardous Materials in all areas within which Company will be performing the Work. Should Company become aware of or suspect the presence of Hazardous
Materials,Company may immediately stop work in the affected area and shall notify Customer. Customer will be exclusively responsible for taking any and all
action necessary to correct the condition in accordance with all applicable laws and regulations. Customer shall be exclusively responsible for and,to the fullest
extent permitted by law, shall indemnify and hold harmless Company(including its employees,agents and subcontractors)from and against any loss,claim,
liability,fees, penalties,injury(including death)or liability of any nature,and the payment thereof arising out of or relating to any Hazardous Materials an or
about the Work site,not brought onto the Work site by Company.Company shall be required to resume performance of the Work in the affected area only in the
absence of Hazardous Materials or when the affected area has been rendered harmless. In no event shall Company be obligated to transport or handle
Hazardous Materials,provide any notices to any governmental agency,or examine the Work site for the presence of Hazardous Materials.
14. Force Majeure. Company's duty to perform under this Agreement is contingent upon the non-occurrence of an Event of Force Majeure. If Company shall
be unable to carry out any material obligation under this Agreement due to an Event of Force Majeure,this Agreement shall at Company's election(i)remain in
effect but Company's obligations shall be suspended until the uncontrollable event terminates or(ii)be terminated upon 10 days notice to Customer,in which
event Customer shall pay Company for all parts of the Work furnished to the date of termination. An"Event of Force Majeure"shall mean any cause or event
beyond the control of Company. Without limiting the foregoing,"Event of Force Majeure"includes:acts of God;acts of terrorism,war or the public enemy;flood;
earthquake;tornado;storm;fire;civil disobedience;pandemic insurrections;riots;labor/labour disputes;labor/labour or material shortages;sabotage;restraint
by court order or public authority(whether valid or invalid), and action or non-action by or inability to obtain or keep in force the necessary governmental
authorizations, permits,licenses,certificates or approvals if not caused by Company;and the requirements of any applicable government in any manner that
diverts either the material or the finished product to the direct or indirect benefit of the government.
15. Customer's Breach. Each of the following events or conditions shall constitute a breach by Customer and shall give Company the right,without an
election of remedies,to terminate this Agreement or suspend performance by delivery of written notice:(1)Any failure by Customer to pay amounts when due;
or(2)any general assignment by Customer for the benefit of its creditors,or if Customer becomes bankrupt or insolvent or takes the benefit of any statute for
bankrupt or insolvent debtors,or makes or proposes to make any proposal or arrangement with creditors,or if any steps are taken for the winding up or other
termination of Customer or the liquidation of its assets,or if a trustee,receiver,or similar person is appointed over any of the assets or interests of Customer;(3)
Any representation or warranty furnished by Customer in this Agreement is false or misleading in any material respect when made; or(4)Any failure by
Customer to perform or comply with any material provision of this Agreement. Customer shall be liable to Company for all Work furnished to date and all
damages sustained by Company(including lost profit and overhead).
16. Indemnity. To the fullest extent permitted by law,Company and Customer shall indemnify,defend and hold harmless each other from any and all claims,
actions, costs, expenses, damages and liabilities, including reasonable attorneys' fees, resulting from death or bodily injury or damage to real or tangible
personal property, to the extent caused by the negligence or misconduct of their respective employees or other authorized agents In connection with their
activities within the scope of this Agreement. Neither party shall indemnify the other against claims,damages,expenses or liabilities to the extent attributable to
the acts or omissions of the other party. If the parties are both at fault,the obligation to indemnify shall be proportional to their relative fault. The duty to
Indemnify will continue in full force and effect,notwithstanding the expiration or early termination hereof,with respect to any claims based on facts or conditions
that occurred prior to expiration or termination.
17. Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY,IN NO EVENT SHALL COMPANY BE LIABLE FOR ANY SPECIAL,
INCIDENTAL, INDIRECT CONSEQUENTIAL, OR PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING WITHOUT LIMITATION BUSINESS
INTERRUPTION,LOST DATA,LOST REVENUE,LOST PROFITS,LOST DOLLAR SAVINGS,OR LOST ENERGY USE SAVINGS,EVEN IF A PARTY HAS
BEEN ADVISED OF SUCH POSSIBLE DAMAGES OR IF SAME WERE REASONABLY FORESEEABLE AND REGARDLESS OF WHETHER THE CAUSE
OF ACTION IS FRAMED IN CONTRACT,NEGLIGENCE,ANY OTHER TORT,WARRANTY,STRICT LIABILITY,OR PRODUCT LIABILITY). In no event
will Company's liability in connection with the provision of products or services or otherwise tinder this Agreement exceed the entire amount paid to
Company by Customer under this Agreement.
18. Patent Indemnity. Company shall protect and indemnify Customer from and against all claims,damages,judgments and loss arising from infringement or
alleged infringement of any United States patent by any of the goods manufactured by Company and delivered hereunder,provided that in the event of suit or
threat of suit for patent infringement,Company shall promptly be notified and given full opportunity to negotiate a settlement. Company does not warrant against
infringement by reason of Customer's design of the articles or the use thereof in combination with other materials or in the operation of any process. in the
event of litigation,Customer agrees to reasonably cooperate with Company. In connection with any proceeding under the provisions of this Section,all parties
concerned shall be entitled to be represented by counsel at their own expense.
19. Limited Warranty. Company warrants for a period of 12 months from the date of substantial completion("Warranty Period")commercial equipment
manufactured and installed by Company against failure due to defects in material and manufacture and that the labor/labour furnished is warranted to have
been property performed(the"Limited Warranty"). Trane equipment sold on an uninstailed basis is warranted in accordance with Company's standard warranty
for supplied equipment. Product manufactured by Company that Includes required startup and Is sold In North America will not be warranted by
Company unless Company performs the product start-up.Substantial completion shall be the earlier of the date that the Work is sufficiently complete so
that the Work can be utilized for its Intended use or the date that Customer receives beneficial use of the Work. If such defect is discovered within the Warranty
Period,Company will correct the defect or furnish replacement equipment(or,at its option,parts therefor)and,if said equipment was installed pursuant hereto,
labor/labour associated with the replacement of parts or equipment not conforming to this Limited Warranty. Defects must be reported to Company within the
Warranty Period.Exclusions from this Limited Warranty include damage or failure arising from:wear and tear;corrosion,erosion,deterioration;Customer's
failure to follow the Company-provided maintenance plan;refrigerant not supplied by Trane;and modifications made by others to Company's equipment.
Company shall not be obligated to pay for the cost of lost refrigerant. Notwithstanding the foregoing,all warranties provided herein terminate upon termination
or cancellation of this Agreement.No warranty liability whatsoever shall attach to Company until the Work has been paid for in full and then said liability shall be
limited to the lesser of Company's cost to correct the defective Work and/or the purchase price of the equipment shown to be defective. Equipment,material
and/or parts that are not manufactured by Company are not warranted by Company and have such warranties as may be extended by the respective
manufacturer.THE WARRANTY AND LIABILITY SET FORTH IN THIS AGREEMENT ARE IN LIEU OF ALL OTHER WARRANTIES AND LIABILITIES,
WHETHER IN CONTRACT OR IN NEGLIGENCE,EXPRESS OR IMPLIED,IN LAW OR IN FACT,INCLUDING IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND/OR OTHERS ARISING FROM COURSE OF DEALING OR TRADE. COMPANY
MAKES NO REPRESENTATION OR WARRANTY EXPRESS OR IMPLIED REGARDING PREVENTION BY THE WORK,OR ANY COMPONENT
THEREOF,OF MOLD/MOULD,FUNGUS,BACTERIA,MICROBIAL GROWTH,OR ANY OTHER CONTAMINATES. COMPANY SPECIFICALLY
DISCLAIMS ANY LIABILITY IF THE WORK OR ANY COMPONENT THEREOF IS USED TO PREVENT OR INHIBIT THE GROWTH OF SUCH MATERIALS.
20. Insurance. Company agrees to maintain the following insurance while the Work is being performed with limits not less than shown below and will, upon
request from Customer,provide a Certificate of evidencing the following coverage:
Commercial General Liability $2,000,000 per occurrence
Automobile Liability 2,000,000 CSL
Workers Compensation Statutory Limits
2019 Trane All rights reserved Page 7 of 8
Confidential and Proprietary Information of Trane U.S. Inc.
Proposal Number:2665666
Beii/sding Services
If Customer has requested to be named as an additional insured under Company's insurance policy,Company will do so but only subject to Company's
manuscript additional insured endorsement under its primary Commercial General Liability policies. In no event does Company waive its right of subrogation.
21.Commencement of Statutory Limitation Period. Except as to warranty claims, as may be applicable, any applicable statutes of limitation for acts or
failures to act shall commence to run,and any alleged cause of action stemming therefrom shall be deemed to have accrued,in any and all events not later than
the last date that Company or its subcontractors physically performed work on the project site.
22. General. Except as provided below,to the maximum extent provided by law,this Agreement is made and shall be interpreted and enforced in accordance
with the laws of the state or province in which the Work is performed,without regard to choice of law principles which might otherwise call for the application of a
different state's or province's law. Any dispute arising under or relating to this Agreement that is not disposed of by agreement shall be decided by litigation in a
court of competent jurisdiction located in the state or province in which the Work is performed. Any action or suit arising out of or related to this Agreement must
be commenced within one year after the cause of action has accrued. To the extent the Work site is owned and/or operated by any agency of the Federal
Government,determination of any substantive issue of law shall be according to the Federal common law of Government contracts as enunciated and applied
by Federal judicial bodies and boards of contract appeals of the Federal Government.This Agreement contains all of the agreements,representations and
understandings of the parties and supersedes all previous understandings,commitments or agreements,oral or written, related to the subject matter hereof.
This Agreement may not be amended,modified or terminated except by a writing signed by the parties hereto. No documents shall be incorporated herein by
reference except to the extent Company is a signatory thereon. If any term or condition of this Agreement is invalid,illegal or incapable of being enforced by any
rule of law,all other terms and conditions of this Agreement will nevertheless remain in full force and effect as long as the economic or legal substance of the
transaction contemplated hereby is not affected in a manner adverse to any party hereto.Customer may not assign,transfer,or convey this Agreement,or any
part hereof,or its right,title or interest herein,without the written consent of the Company. Subject to the foregoing,this Agreement shall be binding upon and
inure to the benefit of Customer's permitted successors and assigns. This Agreement may be executed in several counterparts,each of which when executed
shall be deemed to be an original, but all together shall constitute but one and the same Agreement. A fully executed facsimile copy hereof or the several
counterparts shall suffice as an original.
23. Equal Employment OpportunitylAffirmative Action Clause. Company is a federal contractor that complies fully with Executive Order 11246, as
amended,and the applicable regulations contained in 41 C.F.R.Parts 60-1 through 60-60,29 U.S.C.Section 793 and the applicable regulations contained in 41
C.F.R.Part 60-741;and 38 U.S.C.Section 4212 and the applicable regulations contained in 41 C.F.R.Part 60-250 Executive Order 13496 and Section 29 CFR
471,appendix A to subpart A,regarding the notice of employee rights in the United States and with Canadian Charter of Rights and Freedoms Schedule B to
the Canada Act 1982(U.K.)1982,c.11 and applicable Provincial Human Rights Codes and employment law in Canada.
24. U.S.Government Work.
The following provision applies only to direct sales by Company to the US Government. The Parties acknowledge that all items or services ordered and
delivered under this Agreement are Commercial Items as defined under Part 12 of the Federal Acquisition Regulation(FAR).In particular,Company agrees to
be bound only by those Federal contracting clauses that apply to"commercial"suppliers and that are contained in FAR 52.212-5(e)(1). Company complies with
52.219-8 or 52.219-9 in its service and installation contracting business.
The following provision applies only to Indirect sales by Company to the US Government. As a Commercial Item Subcontractor,Company accepts only
the following mandatory flow down provisions: 52.219-8; 52.222-26; 52,222-35,52.222-36; 52,222-39; 52.247-64. If the Work is in connection with a U.S.
Government contract,Customer certifies that it has provided and will provide current,accurate,and complete information,representations and certifications to
all government officials,including but not limited to the contracting officer and officials of the Small Business Administration,on all matters related to the prime
contract,including but not limited to all aspects of its ownership,eligibility,and performance. Anything herein notwithstanding,Company will have no obligations
to Customer unless and until Customer provides Company with a true,correct and complete executed copy of the prime contract. Upon request,Customer will
provide copies to Company of all requested written communications with any government official related to the prime contract prior to or concurrent with the
execution thereof,including but not limited to any communications related to Customer's ownership,eligibility or performance of the prime contract. Customer
will obtain written authorization and approval from Company prior to providing any government official any information about Company's performance of the
work that Is the subject of the Proposal or this Agreement,other than the Proposal or this Agreement.
25.Limited Waiver of Sovereign Immunity. If Customer is an Indian tribe(in the U.S.)or a First Nation or Band Council(in Canada),Customer,whether
acting in its capacity as a government,governmental entity,a duly organized corporate entity or otherwise,for itself and for its agents,successors,and assigns:
1) hereby provides this limited waiver of its sovereign immunity as to any damages, claims, lawsuit, or cause of action (herein 'Action") brought against
Customer by Company and arising or alleged to arise out of the furnishing by Company of any product or service under this Agreement,whether such Action is
based in contract,tort,strict liability,civil liability or any other legal theory;(2)agrees that jurisdiction and venue for any such Action shall be proper and valid(a)
if Customer is in the U.S.,in any state or United States court located in the state in which Company is performing this Agreement or(b)if Customer is in
Canada,in the superior court of the province or territory in which the work was performed; (3)expressly consents to such Action,and waives any objection to
jurisdiction or venue; (4) waives any requirement of exhaustion of tribal court or administrative remedies for any Action arising out of or related to this
Agreement;and(5)expressly acknowledges and agrees that Company is not subject to the jurisdiction of Customer's tribal court or any similar tribal forum,that
Customer will not bring any action against Company in tribal court,and that Customer will not avail itself of any ruling or direction of the tribal court permitting or
directing It to suspend its payment or other obligations under this Agreement. The individual signing on behalf of Customer warrants and represents that such
individual is duly authorized to provide this waiver and enter into this Agreement and that this Agreement constitutes the valid and legally binding obligation of I
Customer,enforceable in accordance with its terms.
1-26.251-10(0315)
Supersedes 1-26.251-10(0614)
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2019 Trane All rights reserved Page 8 of 8
Confidential and Proprietary Information of Trane U.S. Inc.
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ORDINANCE NO. ORD-19-xxxx
AN ORDINANCE AMENDING THE FY201912020 BUDGET FOR THE
FISCAL YEAR ENDING APRIL 30, 2020
WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule
municipality as contemplated under Article VII, Section 6, of the Constitution of the State of
Illinois, and the passage of this Ordinance constitutes an exercise of the City's home rule powers
and functions as granted in the Constitution of the State of Illinois; and
WHEREAS, the City of McHenry acting by and through its Mayor and City Council has
previously approved the FYI 9/20 Annual Budget for the Fiscal Year Ending April 30, 2020 by a
motion at the Annual City Council Meeting held on April 29, 2019; and
WHEREAS, it is necessary and appropriate to delete, add to, or otherwise change certain
line items in said Budget Ordinance as provided in Exhibit A to this Ordinance;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of
McHenry, McHenry County, Illinois, as follows:
SECTION 1: That the amendments to the Budget Ordinance for the Fiscal Year Ending
April 30, 2020 are hereby approved in the form and content as provided by Exhibit"A" which is
attached hereto and made part hereof.
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 affect, impair, invalidate or nullify the remainder thereof, which remainder shall remain
and continue in full force and effect.
SECTION 3: All ordinances, or parts of ordinances 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 and approved this 161h day of December, 2019.
Ayes Nays Absent Abstain
Alderman Devine
Alderman Glab
Alderman Mihevc
Alderman Miller
Alderman Santi
Alderman Schaefer
Wayne Jett, Mayor Trisha Ramel, City Clerk
EXHIBIT A
The following budget items are amended by this Ordinance:
Fund 100-01-8200 (General Fund) - $11,479
Office of Finance&Accounting
Carolyn Lynch, Director
rMcHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100
McHenr Fax: (815) 363-2119
www.ci.mchenry.il.us
CONSENT AGENDA SUPPLEMENT
DATE: December 16th, 2019
TO: Mayor and City Council
FROM: Carolyn Lynch, Finance Director
RE: 2018/19 Annual Police Pension Fund Report
ATT: Police Pension Fund report, balance sheet, and actuarial report
SUMMARY:The Illinois Department of Insurance requires that the City Council approve an annual report
for the Police Pension Fund.This report lists important information that can also be found in the actuarial
report.
ANALYSIS: The annual Police Pension Fund report, balance sheet, and actuarial report for the 2018/19
fiscal year is attached. This report lists the 2018/19 total fund assets and investment income for the fund
as well as estimated receipts for 2019/20 fiscal year. The levy requirement for FY2020/21 is also listed on
this report as $2,231,742. It is important for the City to continue to fund at the required level because
funding has fallen behind in the past, which has left the percent funded low at 54.0%. Staff has notified
the Police Pension Board, per Council direction,that the City will continue to meet the actuarial required
contribution going forward.
RECOMMENDATION: Staff recommends consideration and approval of the attached Police Pension
Fund annual report for fiscal year 2018/19.
L Annual Report for Fiscal Year Ending April 30,2019 I
The following information is provided to the Board of Trustees of the City of McHenry by the City of McHenry
Pension Board in accordance with the requirements set forth in 40 ILCS 5/3-143.
I
Fund Assets
Total Assets for the Fund 27,153,629.00
Current Market Value of the Fund 27,153,629.00
X Yes
End of Year Balance Sheet Attached No(Explain)
Declaration of Receipts
Estimated Receipts for Next Fiscal Year
from Payroll Withholdings 430,000.00
Estimated Receipts from Other Sources $ 4,031,742.00
Description of Other Sources
Investment Income,employer contributions
Investment Income
Fiscal Year Ending 4/30/2019 Fiscal Year Ending 4/30/2018
Return on Investments 1,454,044 Return on Investments 2,225,784
Assumed Investment Return 7.0% Assumed Investment Return 7.0%
Actual Investment Return 5.60% Actual Investment Return 9.60%
Comments Comments
Employee/Annuitant Information
Number of Active Employees Paying into Fund 47
Amount Disbursed as Benefits During Fiscal Year
Refunds 48,561.00 IDisability 297,360.00
Retirement 1,519,313.00 ISurvivors 211,797.00
Total of All Benefits Disbursed During Fiscal Year 2,077,031.00
Pension Fund Financial Status
Total Unfunded Liability(Actuarial Attached) 23,184,117
Funded Ratio 54.00%
Pension Funding Requirement 2,231,742.00
In accordance with the provisions of the Illinois Pension Act,40 ILCS 5/3-143 the Pension Fund hereby certifies
that the statements contained in the annual report are a true and accurate description of the fiscal condition of
the Pension Fund as of the end of the most recent fiscal year.
Pension resid!nt S' n9ur
Balance Sheet
McHenry, IL Account Summary
As Of 04/30/2019
enr
Account Name Balance
Fund:760-POLICE PENSION FUND
Assets
760-1000 CASH IN BANK 861,415.53
760-1100 INVESTMENTS-CERTIFICATES OF DEPO 0.00
76 -11 4 INVESTMENTS-AMERICAN FUNDS(LPL)11,648,371.60
760-1109 FMV-AMERICAN FUNDS 5,261,510.31
760-1123 LASALLE TRUST ACCOUNT 9,382,768.44
7 -1125 LASALLE TRUST-FMV 58,831.29
760-1150 PROPERTY TAXES RECEIVABLE 0.00
760-1260 ACCRUED INTEREST RECEIVABLE 87,175.96
760-1551 DUE FROM GENERAL FUND 0.00
760-1990 CASH IN POOL 0.00
Total Assets: 27,182,410.55 27,182,410.55
Liability
760-2000 WITHHOLDING-FEDERAL TAXES 0.00
760-2100 ACCOUNTS PAYABLE 0.00
760-2155 PENSIONS AND BENEFITS DUE AND UNPAID 28,782.00
760-2230 WITHHOLDING-INSURANCE 0.00
7 0-2331 WAGES PAYABLE 0.00
760-2350 DUE TO GENERAL FUND 0.00
760-2420 DUE TO EMPLOYEE INSURANCE FUND 0.00
760-2440 DUE TO AUDIT FUND 0.00
760-2500 FUND BALANCE 25,348,532.22
760-2530 DEFERRED REVENUE 0.00
Total Liability: 25,377,314.22
Equity
Total Beginning Equity: 0.00
Total Revenue 3,921,351.32
Total Expense 2,116,254.99
Revenues Over/Under Expenses 1,805,096.33
Total Equity and Current Surplus(Deficit): 1,805,096.33
Total Liabilities,Equity and Current Surplus(Deficit): 27,182,410.55
11/25/2019 3:09:55 PM Page 1 of 1
Actuarial Funding Report
MCHENRY POLICE
PENSION FUND
Actuarial Valuation
as of May 1, 2019
For the Contribution Year May 1, 2019 to April 30, 2020
LA UTERBA CH & AMEN, LLP
Actuarial Valuation — Funding Recommendation
Lauterbach & Amen, LLP
CERTIFIED PUBLIC ACCOUNTANTS
MCHENRY POLICE PENSION FUND
Contribution Year Ending: April 30,2020
Actuarial Valuation Date: May 1, 2019
Utilizing Data as of April 30, 2019
Submitted by:
Lauterbach&Amen, LLP
668 N. River Road
Naperville, IL 60563
Phone: 630.393.1483
www.lauterbachamen.com
Contact:
Todd A. Schroeder
Director
September 10, 2019
LA UTERBA CH & AMEN, LLP
TABLE OF CONTENTS
ACTUARIAL CERTIFICATION.............................................................................................................. 1
MANAGEMENT SUMMARY.................................................................................................................. 3
RecommendedContribution................................................................................................................................................4
FundedStatus......................................................................................................................................................................4
Management Summary—Comments and Analysis.............................................................................................................5
Actuarial Recommended Contribution—Reconciliation...................................................................................................I I
VALUATIONOF FUND ASSETS.......................................................................................................... 12
MarketValue of Assets.....................................................................................................................................................13
MarketValue of Assets(Gain)/Loss..................................................................................................................................14
Development of the Actuarial Value of Assets..................................................................................................................15
Actuarial Value of Assets(Gain)/Loss..............................................................................................................................15
Historical Asset Performance............................................................................................................................................16
RECOMMENDED CONTRIBUTION DETAIL..................................................................................... 18
ActuarialAccrued Liability...............................................................................................................................................19
FundedStatus....................................................................................................................................................................19
Development of the Employer Normal Cost......................................................................................................................20
Normal Cost as a Percentage of Expected Payroll.............................................................................................................20
RecommendedContribution..............................................................................................................................................20
Schedule of Amortization—Unfunded Actuarial Accrued Liability.................................................................................21
Actuarial Methods—Recommended Contribution............................................................................................................22
ILLINOIS STATUTORY MINIMUM CONTRIBUTION......................................................................23
Statutory Minimum Contribution......................................................................................................................................24
FundedStatus—Statutory Minimum.................................................................................................................................24
Actuarial Methods—Illinois Statutory Minimum Contribution.........................................................................................26
ACTUARIAL VALUATION DATA.......................................................................................................27
ActiveEmployees..............................................................................................................................................................28
InactiveEmployees............................................................................................................................................................28
SummaryOf Benefit Payments.........................................................................................................................................28
ACTUARIAL FUNDING POLICIES......................................................................................................29
ActuarialCost Method.......................................................................................................................................................30
Financing Unfunded Actuarial Accrued Liability..............................................................................................................30
ActuarialValue of Assets..................................................................................................................................................32
ACTUARIALASSUMPTIONS............................................................................................................... 33
Natureof Actuarial Calculations.......................................................................................................................................34
Actuarial Assumptions in the Valuation Process...............................................................................................................34
Assessmentof Risk Exposures..........................................................................................................................................35
Limitationsof Risk Analysis.............................................................................................................................................35
ActuarialAssumptions Utilized.........................................................................................................................................36
McHenry Police Pension Fund Table of Contents
TABLE OF CONTENTS
SUMMARY OF PRINCIPAL PLAN PROVISIONS..............................................................................38
Establishmentof the Fund.................................................................................................................................................39
Administration...................................................................................................................................................................39
EmployeeContributions....................................................................................................................................................39
RegularRetirement Pension Benefit..................................................................................................................................39
Regular Retirement Pension Benefit-Continued..............................................................................................................40
Early Retirement Pension Benefit......................................................................................................................................40
SurvivingSpouse Benefit..................................................................................................................................................41
TerminationBenefit—Vested............................................................................................................................................42
DisabilityBenefit...............................................................................................................................................................43
GLOSSARYOF TERMS.........................................................................................................................44
Glossaryof Terms..............................................................................................................................................................45
McHenry Police Pension Fund Table of Contents
LaUterbach BC. Amen LLP
668 NORTH RIVER RD, NAPERVILLE,ILLINOIS 60563
PHONE630.393.1483 • FAX 63
1
0,393,2516
www.laut erbachamen.cc In
CERTIFIED PUBLIC ACCOUNTANTS
ACTUARIAL CERTIFICATION
This report documents the results of the Actuarial Valuation for the McHenry Police Pension Fund. The
information was prepared for use by the McHenry Police Pension Fund and the City of McHenry,Illinois
for determining the Recommended Contributions, under the selected Funding Policy and Statutory
Minimum guidelines, for the Contribution Year May 1, 2019 to April 30, 2020. It is not intended or
suitable for other purposes. Determinations for purposes other than the Employer's Actuarial
Recommended Contribution may be significantly different from the results herein.
The results in this report are based on the census data and financial information submitted by the McHenry
Police Pension Fund, and may include results from the prior Actuary. We did not prepare the Actuarial
Valuations for the years prior to May 1,2017. Those valuations were prepared by the prior Actuary whose
reports have been furnished to us, and our disclosures are based on those reports. An audit of the prior
Actuary's results was not performed, but high-level reviews were completed for general reasonableness,
as appropriate, based on the purpose of this valuation. The accuracy of the results is dependent on the
precision and completeness of the underlying information.
In addition, the results of the Actuarial Valuation involve certain risks and uncertainty as they are based
on future assumptions, market conditions, and events that may never materialize as assumed. For this
reason, certain assumptions and future results may be materially different than those presented in this
report. See the Management Summary section of this report for a more detailed discussion of the Defined
Benefit Plan Risks, as well as the limitations of this Actuarial Valuation on assessing those risks. We are
not aware of any known events subsequent to the Actuarial Valuation Date,which are not reflected in this
report but should be valued, that may materially impact the results.
The valuation results summarized in this report involve actuarial calculations that require assumptions
about future events. The McHenry Police Pension Fund selected certain assumptions, while others were
the result of guidance and/or judgment from the Plan's Actuary or Advisors. We believe that the
assumptions used in this valuation are reasonable and appropriate for the purposes for which they have
been used. The selected assumptions represent our best estimate of the anticipated long-term experience
of the Plan, and meet the guidelines set forth in the Actuarial Standards of Practice.
McHenry Police Pension Fund
Page 1
668 NORTH RIVER RD. • NAPERVILLE,ILLINOIS 60563
Lauterbach & Amen LLP PHONE 630.393.1483 • FAX 634.393.2516
www.fauterbachamen.com
CERTIFIED PUBLIC ACCOUNTANTS
To the best of our knowledge,all calculations are in accordance with the applicable funding requirements,
and the procedures followed and presentation of results conform to generally accepted actuarial principles
and practices as prescribed by the Actuarial Standards Board. The undersigned of Lauterbach & Amen,
LLP is an Associate of the Society of Actuaries and an Enrolled Actuary, and meets the Qualification
Standards of the American Academy of Actuaries to render this Actuarial Certification. There is no
relationship between the McHenry Police Pension Fund and Lauterbach & Amen, LLP that impairs our
objectivity.
Respectfully Submitted,
LAUTERBACH&AMEN,LLP
1': I)- . 5d4'- 1
Todd A. Schroeder,ASA,FCA,EA, MAAA
McHenry Police Pension Fund
Page 2
MANAGEMENT SUMMARY
Recommended Contribution
Funded Status
Management Summary—Comments and Analysis
Actuarial Recommended Contribution—Reconciliation
MANAGEMENT SUMMARY
RECOMMENDED CONTRIBUTION
Prior Current
Valuation Valuaticm
The Recommended
Recommended Contribution 2,082,421 2,231,742 CAnlrlbution has
Increased by
I:xlxcted Payroll 4,162,607 54,453.199 149,321,from the
Prior Valuation.
Recommended Contribution as a
Percent of I'xlxcted Payroll 50.03%50.12%
FUNDED STATUS
Prior Current
Valuation Valuation
Nonnal Cost 901,470 5953,286
Market Value of Assets 525,348,532 527,153,629
7 he Percent
Actuarial Value of Assets 525,345,691 527,217,299 Funded has
Actuarial Accreted Liability S47,467,785 550,401,416
Increased'-
0.60%on an
Unfunded Actuarial Accrued Actuarial Value
Liability S22,122,094 523,184,117 qfASsels Basis.
Percent Funded
Actuarial Value of Assets 53.400,o 54.00%
Market Value of Assets 53.40%53.87%
McHenry Police Pension Fund
Page 4
MANAGEMENT SUMMARY
MANAGEMENT SUMMARY-COMMENTS AND ANALYSIS
Contribution Results
The Recommended Contribution is based on the selected Funding Policy and methods that are outlined in
the Actuarial Funding Policies section of this report.
The Illinois State Statutes for Pension Funds contain parameters that are used to determine the Statutory
Minimum Contribution to a public Pension Fund. Those parameters and the resulting Statutory Minimum
Contribution are found in the Illinois Statutory Minimum Contribution section of this report.
Contribution Risk" is defined by the Actuarial Standards of Practice as the potential for actual future
contributions to deviate from expected future contributions. For example, when actual contributions are
not made in accordance to the Plan's Funding Policy,or when future experience deviates materially from
assumed. While it is essential for the Actuary and Plan Sponsor to collaborate on implementing a sound
and financially feasible Funding Policy, it is important to note that the Actuary is not required,and is not
in the position to, evaluate the ability or willingness of the Plan Sponsor to make the Recommended
Contribution under the selected Funding Policy.
As a result, while Contribution Risk may be a significant source of risk for the Plan, this Actuarial
Valuation makes no attempt to assess the impact of future contributions falling short of those
recommended under the selected Funding Policy. Notwithstanding the above, see the Actuarial
Recommended Contribution — Reconciliation section of this report for the impact on the current
Recommended Contribution of any contribution shortfalls or excesses from the prior year.
Defined Benefit Plan Risks
Asset Growth:
Pension funding involves preparing Fund assets to pay for benefits when Members retire. During their
working careers, assets grow with contributions and investment earnings; and then, the Pension Fund
distributes assets in retirement. Based on the Plan's current mix of employees and Funded Status,the Plan
should experience positive asset growth, on average, if the Recommended Contributions are made and
expected investment earnings come in. In the current year, the Fund asset growth was positive by
approximately $1,800,000.
Asset growth is important in the long-term. Long-term cash flow out of the Pension Fund is primarily
benefit payments, and expenses are a smaller portion. The Plan should monitor the impact of expected
benefit payments on future asset growth. In the next 5 years,benefit payments are anticipated to increase
25-30%, or approximately $570,000. In the next 10 years, the expected increase in benefit payments is
75-80%, or approximately $1,500,000.
Furthermore,Plans' with a large number of retirees have an increased"Longevity Risk". Longevity Risk
is the possibility that retirees may live longer than projected by the Plan's mortality assumption. As shown
above,benefit payments are expected to increase over the next 5-year and 10-year horizons. The projected
McHenry Police Pension Fund
Page 5
MANAGEMENT SUMMARY
increases assume that current retirees pass away according to the Plan's mortality assumption. To the
extent that current retirees live longer than expected,the future 5-year and 10-year benefit projections may
be larger than the amounts disclosed above. Higher levels of benefit payments,payable for a longer period
of time, may cause a significant strain to the Plan's cash flow, future Recommended Contributions, and
may lead to Plan insolvency.
Unfunded Liability:
Unfunded Liability represents the financial shortfall of the Actuarial Value of Assets compared to the
Actuarial Accrued Liability. To the extent that Unfunded Liability exists, the Plan is losing potential
investment earnings due to the financial shortfall. Contributions towards Unfunded Liability pay for the
lost investment earnings, as well as the outstanding unfunded amount. If payments towards Unfunded
Liability are not made,the Unfunded Liability will grow.
In the early 1990s, many Pension Funds in Illinois adopted an increasing payment towards Unfunded
Liability due to a change in legislation. The initial payment decreased,and future payments are anticipated
to increase annually after that. In many situations, payments early on were less than the interest on
Unfunded Liability,which means that Unfunded Liability increased even though contributions were made
at the recommended level.
The current Recommended Contribution includes a payment towards Unfunded Liability that is
approximately $61,000 greater than the interest on Unfunded Liability. All else being equal and
contributions being made, Unfunded Liability is expected to decrease. The Employer and Fund should
anticipate that improvement in the current Percent Funded will be mitigated in the short-term. The
Employer and Fund should understand this impact as we progress forward to manage expectations.
Actuarial Value ofAssets:
The Pension Fund smooths asset returns that vary from expectations over a five-year period. The intention
over time is that asset returns for purposes of funding recommendations are a combination of several years.
The impact is intended to smooth out the volatility of Recommended Contributions over time, but not
necessarily increase or decrease the level of contributions over the long-term.
When asset returns are smoothed,there are always gains or losses on the Market Value of Assets that are
going to be deferred for current funding purposes, and recognized in future years. Currently,the Pension
Fund is deferring approximately $64,000 in losses on the Market Value of Assets. These are asset losses
that will be recognized in upcoming periods, independent of the future performance of the Market Value
of Assets.
McHenry Police Pension Fund
Page 6
MANAGEMENT SUMMARY
Cash Flow Risk:
Assets, liabilities, and Funded Status are good metrics to monitor over time to assess the progress of the
Funding Policy. However,these metrics may provide limited forward-looking insights. Specifically,the
maturity of a Pension Fund can pose certain risks that often cannot be assessed with a point-in-time metric
such as Percent Funded.
For example, two different Pension Funds could have the same Percent Funded, but have completely
different risk profiles. One Fund might mostly cover active employees with little to no benefits in pay
status, whereas a second Fund might mostly cover retirees with a significant level of annual benefit
payments. The latter Fund has a greater "Cash Flow Risk", i.e. a more significant chance that negative
cash flows could lead to a deteriorating,rather than improving,Percent Funded over time.
It is also important to note that, in general,positive net cash flows are good, but also need to be sufficient
to cover the growth in the liabilities (i.e. the Normal Cost as well as interest on the Actuarial Accrued
Liability). Typically,when cash flows are assumed to be insufficient to cover the growth in liabilities,the
Percent Funded will decline,while future Recommended Contributions will increase.
For this Plan, the Market Value of Assets is less than the Actuarial Accrued Liability for inactive
participants. The Fund assets and anticipated earnings are not sufficient to cover the benefits payable to
the current inactive participants. In addition, there is currently no money set aside for active Member
liability. There are two consequences. First,we are limiting the impact of investment earnings on accruing
money for the active Members due to utilizing those dollars to pay for the current inactive participants.
Second,there is Cash Flow Risk that exists in that a higher portion of the assets is needed to keep up with
cash flow out for benefit payments, and a higher relative investment return is required to keep cash flow
positive in any given year.
Benefit Payment Risk:
Ideally, a plan in good financial standing will have the ratio of annual benefits payments to the Market
Value of Assets to be less than the Expected Return on Investments assumption (i.e. 7.00%).
Theoretically, in this case it can be considered that investment returns will fully cover the annual benefit
payments, and therefore, all Employer and Employee Contributions made to the Fund will be used to pay
for future benefit accruals and pay down the existing Unfunded Liability. To the extent the ratio of the
annual benefit payments to the Market Value of Assets increases to above the Expected Rate of Return
assumption,the Plan may experience some additional risks, such as the need to keep assets in more liquid
investments, inability to pay down Unfunded Liability, and may lead to Plan insolvency.
McHenry Police Pension Fund
Page 7
MANAGEMENT SUMMARY
As of the Valuation Date,the McHenry Police Pension Fund has a ratio of benefit payments to the Market
Value of Assets of 7.47%. In this case,a portion of the Employer Contributions are being used to pay the
annual benefit payments creating Benefit Payment Risk and Cash Flow Risk. The Percent Funded of the
Plan may not grow as quickly as expected under the current Funding Policy, since the amortization
payment towards the Unfunded Liability is not being fully realized. As shown in the Asset Growth section
in this report, the 5-year and 10-year horizons of future benefit payments are expected to increase. The
Plan Sponsor should monitor the percentage of annual benefit payments to the Market Value of Assets
and consider to change the Funding Policy if this ratio continues to increase.
Fund Assets
The results in this report are based on the assets held in the Pension Fund. Assets consist of funds held
for investment and for benefit payments as of the Actuarial Valuation Date. In addition, assets may be
adjusted for other events representing dollars that are reasonably expected to be paid out from the Pension
Fund or deposited into the Pension Fund after the Actuarial Valuation Date as well.
The current Fund assets are unaudited. As of the date of this report, the audit
of the Fund assets is not complete, not available, or has not been provided. The Fund
Assets Used in
The current Fund assets are based on the year-end financials as prepared by the
this Report
Pension Fund accountant. The year-end financials represent a full accrual
version of the fiduciary Fund as of the end of the Fiscal Year, prepared in are
preparation for the audit. The changes to the Fund cash balance as of the Fiscal Unaudited.
Year End are non-cash items that can include accrued interest, due/unpaid
expenses,prepaids and other adjustments.
The Actuarial Value of Assets under the Funding Policy is equal to the fair Market Value of Assets,with
unexpected gains and losses smoothed over 5 years. More detail on the Actuarial Value of Assets can be
found in the Actuarial Funding Policies section of this report.
McHenry Police Pension Fund
Page 8
MANAGEMENT SUMMARY
Demographic Data
Demographic factors can change from year to year within the Pension Fund. Changes in this category
include hiring new employees,employees retiring or becoming disabled,retirees passing away, and other
changes. Demographic changes can cause an actuarial gain (contribution that is less than expected
compared to the prior year)or an actuarial loss(contribution that is greater than expected compared to the
prior year).
Demographic gains and losses occur when the assumptions over the one-year period for employee changes
do not meet our long-term expectation. For example, if no employees become disabled during the year,
we would expect a liability gain. If more employees become disabled than anticipated last year,we would
expect a liability loss. Generally, we expect short-term fluctuations in demographic experience to create
gains or losses of up to 3%of the Actuarial Accrued Liability in any given year,but to balance out in the
long-term.
Demographic Risk"occurs when Plan census experience differs significantly from expected. Similar to
Longevity Risk discussed previously,additional risk is created when demographic experience differs from
the assumed rates of disability,retirement, or termination. Under the chosen assumptions, actuarial gains
and/or losses will always occur, as the assumptions will never be exactly realized. However, the
magnitude of the gain and/or loss and its influence on the Recommended Contribution largely depends on
the size of the Plan.
Based on the number of active participants in the Plan, the Recommended Contribution has a moderate
risk of having a significant increase due to demographic experience. For example, 1 new disabled Member
would typically generate a substantial increase to the Actuarial Accrued Liability, which in turn, may
increase the Recommended Contribution.
In the current report,the key demographic changes were as follows:
New Hires: The Fund added 3 new active Members in the current year through hiring. When a new
Member is admitted to the Pension Fund, the Employer Contribution will increase to reflect the new
Member. The increase in the Recommended Contribution in the current year for the new Fund Members
is approximately $16,000.
Disability: There was 1 Member of the Fund who became disabled during the year. When a Member
becomes disabled,the Fund will often experience a decrease in Normal Cost,but an increase in Unfunded
Liability. The increase in the Recommended Contribution in the current year for the new disability was
approximately $33,000.
McHenry Police Pension Fund
Page 9
MANAGEMENT SUMMAR Y
Mortality: There was 1 retiree who passed away during the year, 1 of whom had an eligible surviving
spouse. When a retiree passes away, the Fund liability will decrease as the Pension Fund no longer will
make future payments to the retiree. If there is an eligible surviving spouse,the Fund liability will increase
to represent the value of the expected payments that will be made to the spouse.
As the inactive population ages and continues to collect benefits,the Fund liability will also increase. In
the current year, there were 29 inactive participants who maintained their benefit collection status
throughout the year. The net increase in the Recommended Contribution in the current year due to the
mortality experience is approximately $12,000.
Salary Increases: Salary increases were less than anticipated in the current year. Most active Members
received an increase of 3.00% or less. This caused a decrease in the Recommended Contribution in the
current year of approximately$20,000.
Assumption Changes
In the current valuation,we have updated the marital assumption for retiree and disabled Members to the
actual spousal data. See the table on the following page for the impact of this change on the current
valuation.
Funding Policy Changes
The Funding Policy was not changed from the prior year.
McHenry Police Pension Fund
Page 10
MANAGEMENT SUMMARY
ACTUARIAL RECOMMENDED CONTRIBUTION—RECONCILIATION
Actuarial Accrued Liability is expected to increase each year for both interest for the year and as active
employees earn additional service years towards retirement. Similarly, Actuarial Accrued Liability is
expected to decrease when the Fund pays benefits to inactive participants.
Contributions are expected to increase as expected pay increases under the Funding Policy for the Fund.
Actuarial Recommended
Liability Contribution
Prior Valuation 47,467,785 2,082,421
Expected Changes 2,218,805 62,473
Initial Expected Current Valuation 49,686,590 2,144,894
Other increases or decreases in Actuarial Accrued Liability (key changes noted below) will increase or
decrease the amount of Unfunded Liability in the plan. To the extent Unfunded Liability increases or
decreases unexpectedly, the contribution towards Unfunded Liability will also change unexpectedly.
Actuarial Recommended
Liability Contribution
Salary Increases Less than Expected 205,200) 19,942)
Demographic Changes 978,289 90,727
Assumption Changes 58,263) 4,232)
Asset Return Less than Expected * 16,733
Contributions Less than Expected 3,562
Total Actuarial Experience 714,826 86,849
Current Valuation 50,401,416 2,231,742
The impact on contribution due to asset performance is based on the Actuarial Value of Assets.
Key demographic changes were discussed in the Demographic Data section of this report.
McHenry Police Pension Fund
Page 11
VALUATION OF FUND ASSETS
Market Value of Assets
Market Value of Assets (Gain)/Loss
Development of the Actuarial Value of Assets
Actuarial Value of Assets (Gain)/Loss
Historical Asset Performance
VALUATION OF FUND ASSETS
MARKET VALUE OF ASSETS
Statement of Assets
Prior Current
Valuation Valuation The Total
Market Value
Cash and Cash Iiquivalents S 530,835
ofAssets has
Fixed Income 8,975,960 9,105.345 Increased by
Mutual Funds 15,757,284 16,909,882 Approximately
Receivables(Net of Payables) 84,453 58,394
1,845,000
from the Prior
Total Market Value of Assets S 25,348,532 S 27,153.629 Valuation.
Statement of Changes in Assets
Total Market Value of Assets-Prior Valuation S 25,348,532
The Rate of Return
Plus-Employer Contributions 2,017,300 on Investments on
Plus-I mpkoyce Contributions 429,598 the Market Value of
Plus-Return on Investments 1,454,044 Assets for the Fund
was Approximately
I,css-Benefit and Related Pavnicnts 2,077,032) 5.6%Net of
Less-Other i:xpenscs 17,813) Administrative
Total Market Value ol•Assets-Current Valuation S 27,153,629
Expenses.
The Rate of Return on Investments shown above has been determined as the Return on Investments from
the Statement of Changes in Assets,as a percent of the average of the beginning and ending Market Value
of Assets. The Rate of Return on Investments is net of Other Expenses, and has been excluded from the
Total Market Value of Assets at the end of the Fiscal Year for this calculation.
McHenry Police Pension Fund
Page 13
VALUATION OF FUND ASSETS
MARKET VALUE OF ASSETS(GAIN)/LOSS
Current Year(Gain)/Loss on Market Value of Assets
Total Market Value of Assets-Prior Valuation S 25.348,532
Comribulk1n5 2,445,898
Benefit Payments 2,077,032)
The Return on
Expected Return on Investments 1,787,308
the Market Value
Expected'Dotal Market Value of Assets-Current Valuation 27,504,706 OfA.5'Sets was
Actual Total Market Value of Assets-Current Valuation 27,153,629 bower Than
Current Market Value of Assets(Gam)/Loss S 351,077 Expected Over
the Current
Expected Return on Investments S 1,787,308 Year.
Actual Retum on Investments(Net of Expenses) 1,436,231
Current Market Value of Assets(Gaii)/Loss S 351,077
The (Gain)/Loss on the Market Value of Assets has been determined based on the Expected Return on
Investments as shown in the Actuarial Assumptions section of this report.
McHenry Police Pension Fund
Page 14
VALUATION OF FUND ASSETS
DEVELOPMENT OF THE ACTUARIAL VALUE OF ASSETS
Total Market Value of Assets-Current Valuation ti 27,153.629
Adjustment for Prior(Gains)/I.osses the A cl uarl al Value of
Assets is Equal to the
Full Amount Market Value of
FYI;2019 S 351,077 280,861 Assets with
F'YFi 2018 59),985) 359,991) 11nanlicipaled
FYE 2017 547.303) 218,921)
FYE 2016 1,808,607 361,721
Caifts)/Losses
Total Deferred(Gain)/Loss 63,670 Recognized Over S
Years. The Actuarial
Initial Actuarb]Value of Assets-Current Valuation S 27.217,299 Value o f Ass'elS is
Less Contributions for the Current Year and Interest 100.2%o f the Market
Less Adjustment for the Corridor Value o f Assets.
Total Actuarial Value of Assets-Current Valuation S 27,217299
ACTUARIAL VALUE OF ASSETS(GAIN)/LOSS
Total Actuarial Value of Assets -Prior Valuation S 25,345,691
The Rate of Return
Plus- Employer Contributions 2,017,300 on Investments on
Plus- Employee Contributions 428,598 the Actuarial Value
Plus-Return on Investments 1,520,555
of Assetsfor theFundwas
Less-Benefit and Related Payments 2,077,032) Approximately
Less -Other Expenses 17,813) S.9%Net of
Administrative
Total Actuarial Value of Assets- Current Valuation S 27,217,299 Expenses.
The Actuarial Value of Assets incorporates portions of gains and losses over multiple years.
McHenry Police Pension Fund
Page 15
VALUATION OF FUND ASSETS
HISTORICAL ASSET PERFORMANCE
The chart below shows the historical Rates of Return on Investments for both Market Value of Assets and
Actuarial Value of Assets.
Market Value Actuarial Value
of Assets of Assets
FYE 2019 5.6% 5.9%
FYE 2018 9.6% 6.2%
FYE 2017 9.6% 5.6%
The historical Rates of Return on Investments shown above were calculated based on the annual Return
on Investment for the year, as a percentage of the average value of the assets for the year.
For purposes of determining the average value of assets during the year,the ending Market Value of Assets
has been adjusted to net out to the portion related to the investment returns themselves. All other cash
flows are included.
For purposes of determining the annual Return on Investment we have adjusted the figures shown on the
preceding pages. The figures shown on the preceding pages are net of Investment Expenses. We have
made an additional adjustment to net out Administrative Expenses. Netting out Administrative Expenses
allows us to capture returns for the year that can be used to make benefit payments as part of the ongoing
actuarial process.
The adjustment we make is for actuarial reporting purposes only. By netting out Administrative Expenses
and capturing investment returns that are available to pay benefits, it provides us a comparison to the
Expected Return on Investments, but does not provide a figure that would be consistent with the return
rates that are determined by other parties. Therefore, this calculated rate of return should not be used to
analyze investment performance of the Fund or the performance of the investment professionals.
McHenry Police Pension Fund
Page 16
VAL UA TION OF FUND ASSETS
Expected Return on Investments Assumption
The Expected Return on Investments for this valuation is 7.00%. Lauterbach & Amen, LLP does not
provide investment advice. We look at a variety of factors when reviewing the Expected Return on
Investments assumption selected by the Board. These factors include: historical Rates of Return on
Investments, capital market projections performed by the Fund's investment advisors, the Fund's
investment policy, capital market forward-looking benchmark expected returns by independent
investment companies, rates used by comparable pension systems, and other factors identified in the
Actuarial Standards of Practice.
Generally speaking,the ideal assumption for Expected Return on Investments is one that has a 50%chance
of being met over the long-term. If actual returns going forward come in less than expected,the pension
system risks deferring contributions to the future that should be made today, and creating additional
contribution volatility. Reducing the Expected Return on Investments by 25 basis points produces a
Recommended Contribution that is 7.58%higher than currently shown.
We recommend the Pension Board and the Employer review the Expected Return on Investments, and
consider whether or not the assumption is a reasonable representation of future expected asset returns,and
review their options prior to the completion of the next actuarial report.
Investment Risk" is the potential that actual Return on Investments will be different from what is
expected. The selected Expected Return on Investments assumption is chosen to be a long-term
assumption, producing a return that, on average, would produce a stable rate of return over a long-term
horizon. Actual asset returns in the short-term may deviate from this long-term assumption due to current
market conditions. Furthermore, establishing the Expected Return on Investments assumption may be
dependent on the Illinois State Statutes pertaining to the limitations on types of investments Plan Sponsors
may use. If the actual annual rates of return are less than the Expected Return on Investments, actuarial
losses will be produced, thus increasing the Plan's Unfunded Liability and, subsequently, future
Recommended Contributions.
Asset/Liability Mismatch" risk is a similar concept as Investment Risk, as it relates to setting the
Expected Return on Investments assumption compared to the actual Return on Investments achieved. The
Interest Rate used to discount future Plan liabilities is set equal to the Expected Return on Investments. It
is expected that the selected Interest Rate be a rate that is reasonably expected to be achieved over the
long-term. To the extent the selected Interest Rate to value Plan liabilities is unreasonable,or significantly
different than the actual Return on Investments earned over an extended period of time,additional Interest
Rate risk is created. For example, determining Plan liabilities at an Interest Rate higher than what is
expected to be achieved through investment returns results in Unfunded Liability that is not a true
representation of the Plan's condition and Percent Funded. As a result, the Actuarial Accrued Liability
determined is an amount smaller than the liability that would be produced with an Interest Rate more
indicative of future Expected Return on Investments. Therefore,the Recommended Contributions under
the established Funding Policy may not be sufficient to appropriately meet the true pension obligations.
McHenry Police Pension Fund
Page 17
RECOMMENDED CONTRIBUTION DETAIL
Actuarial Accrued Liability
Funded Status
Development of the Employer Normal Cost
Normal Cost as a Percentage of Expected Payroll
Recommended Contribution
Schedule of Amortization—Unfunded Actuarial Accrued Liability
Actuarial Methods—Recommended Contribution
RECOMMENDED CONTRIBUTION DETAIL
ACTUARIAL ACCRUED LIABILITY
Prior Current
Valuation Valuation
Active. Employees S 18,497,304 S 20.717.130 The Total
Actuarial Accrued
Inactive Employees Liabilityhas
Terminated Employees-Vested 1,026,171 1,098,613
Retired Employees 22,fi85,152 22,319,234 Increased by
Disabled Employees 3,727,344 4,203,989 Approximately
Other Beneficiaries 1,531,814 2,062,444 2,934,000from
Total Inactive Employees 28,970,491 29,694,280 the Prior
Total Actuarial Accrued Iiability S 47,467,785 S 50,401,416
Valuation.
FUNDED STATUS
Prior Current
Valuation Valuation
Total Actuarial Accrued Liability S 47,467,785 S 50,401,416 The Percent
Total Actuarial Value of Assets 25,345,691 27,217,299 Funded as of the
Actuarial
Unfunded Actuarial Accrued Liability S 22,122,094 S 23,184,117 Valuation Date is
Total Market Value of Assets S 25,348,532 S 27.153,629 Subject to
Volatility on Assets
Percent Funded
and Liability in theActuarialValueofAssets530%00"a
Short-Term.
Market Value of Assets 5 0% 53.87°
McHenry Police Pension Fund
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RECOMMENDED CONTRIBUTION DETAIL
DEVELOPMENT OF THE EMPLOYER NORMAL COST
Prior Current
Valuation Valuation At a 100%
Total Normal Cost S 901.470 S 953,286
FundingLevel,
the Normal Cost
Estimated Employee Contributions 412.514) 441.312) Contribution Is
Still Required
Employer Normal Cost S 488,956 S 511,974
NORMAL COST AS A PERCENTAGE OF EXPECTED PAYROLL
Prior Current
Valuation Valuation
Expected Payroll S 4.162.607 S 4.453,199 Ideally, the
Employer
Employee Normal Cost Rate 9,910% y 9 0 Normal Cost
Rate will Remain
Employer Normal Cost Rate 11.75% 11.5()% Stable.
Total Normal Cost Rate 2 L G6° 21.41%
RECOMMENDED CONTRIBUTION
Prior Current
Valuation Valuation The
Employer Normal Cost* S 523.193 b 547,912 Recommended
Contribution has
Amortation of Unfunded Accrued Increased by
Liability/(Surplus) 1,559,238 1,683,930 7.2%from? the
Prior Valuation.
Recommended Contribution S 2.082.421 S 2.231.742
Employer Normal Cost Contribution includes interest through the end of the year.
McHenry Police Pension Fund
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RECOMMENDED CONTRIBUTION DETAIL
SCHEDULE OF AMORTIZATION—UNFUNDED ACTUARIAL ACCRUED LIABILITY
Below is the schedule of remaining amortization balances for the Unfunded Liability.
Initial Date Current Years
Unfunded Liability Base Balance Established Balance Remaining Payment
Investment(Gain)/Loss 230,383 4/30/2019 $ 230,383 21 16,733
Actuarial (Gain)/Lass 898,192 4/30/2019 898,192 21 65,238
Contribution Experience 2,403 4/30/2019 2,403 21 175
Assumption Changes 58,263) 4/30/2019 58,263) 21 4,232)
Investment(Gain)/Loss 113,191 4/30/2018 113,136 21 8,217
Actuarial (Gain)/Loss 365,841 4/30/2018 365,665 21 26,559
Contribution Experience 5,421 4/30/2018 5,418 21 394
Initial Unfunded Liability $ 21,637,641 4/30/2018 $ 21,627,183 21 1,570,845
Total S 23,194,808 S 23184,117 1,683,930
The Actuarial(Gain)/Loss can be attributable to several factors including demographic changes,Employer
Contribution timing, Employee Contribution experience, benefit payment experience and salary increase
experience compared to expectation.
McHenry Police Pension Fund
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RECOMMENDED CONTRIBUTION DETAIL
ACTUARIAL METHODS—RECOMMENDED CONTRIBUTION
Actuarial Valuation Date May 1, 2019
Data Collection Date April 30, 2019
Actuarial Cost Method Entry Age Normal(Level%Pay)
Amortization Method Level% Pay(Closed)
Amortization Target 100%Funded Over 21 Years
Asset Valuation Method 5-Year Smoothed Market Value
The contributions and benefit values of the Pension Fund are calculated by applying actuarial assumptions
to the benefit provisions and census information furnished, using the Actuarial Cost Methods described.
The Actuarial Cost and Amortization Methods allocate the projected obligations of the plan over the
working lifetimes of the plan participants.
The Recommended Contribution amount shown in this report is based on the methods summarized above.
The Actuarial Funding Policies section of this report includes a more detailed description of the Actuarial
Funding Methods being used.
The Actuarial Funding Methods are meant to provide a systematic process for determining contributions
on an annual basis. The methods do not impact the expectation of future benefit payments. The methods
only impact the way contributions are made towards future benefit payments.
Different Actuarial Funding Methods may achieve funding goals with differing levels of success. Certain
methods are more efficient and more stable on an annual basis.
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ILLINOIS STATUTORY MINIMUM CONTRIBUTION
Statutory Minimum Contribution
Funded Status—Statutory Minimum
Actuarial Methods—Illinois Statutory Minimum Contribution
ILLINOIS STA TUTOR Y MINIMUM CONTRIBUTION
STATUTORY MINIMUM CONTRIBUTION
Current
Valuation
Statutory Minimum Contribution 1,807,003
Expected Payroll 4,453,199
Statutory Minimum Contribution as a
Percent of Expected Payroll 40.58%
FUNDED STATUS-STATUTORY MINIMUM
Current
Valuation
Normal Cost 1,090,206
Market Value of Assets 27,153,629
Actuarial Value of Assets 27,217,299
Actuarial Accrued Liability 47,262,882
Unfunded Actuarial Accrued
Liability 20,045,583
Percent Funded
Actuarial Value of Assets 57.59%
Market Value of Assets 57.45%
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ILLINOIS STA TUTOR Y MINIMUM CONTRIBUTION
The Statutory Minimum Contribution is based on Actuarial Funding Methods and funding parameters in
the Illinois statutes for pension funding. The resulting contribution is lower than the Recommended
Contribution for the current plan year. The lower contribution amount is not recommended because it
represents only a deferral of contributions when compared to the Recommended Contribution method.
Actuarial Funding Methods for pensions are best applied to provide a balance between the long-term goals
of a variety of stakeholders:
1. Beneficiaries —the Members are interested in benefit security and having the funds available to
pay benefits when retired
2. Employers—cost control and cost stability over the long-term
3. Taxpayers—paying for the services they are receiving from active employees
The Statutory Minimum Contribution methods are not intended to provide a better system in any of the
above categories long-term. The parameters are not recommended for a long-term funding strategy.
The Statutory Minimum methods put into place in 2011 were intended to provide short-term budget relief
for Employer Contributions. An Employer using the Statutory Minimum parameters for current funding
should view the contributions as short-term relief. Our recommendation in this situation is for a Pension
Fund and an Employer to work towards a long-term funding strategy that better achieves the long-term
funding goals, over a period that does not exceed 3-5 years.
The Securities and Exchange Commission in 2013 used the phrase"Statutory Underfunding"to describe
situations where contributions appear to be more manageable in the short-term, but set up future
Recommended Contributions that are less likely to be manageable.
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ILLINOIS STA TUTOR Y MINIMUM CONTRIBUTION
ACTUARIAL METHODS—ILLINOIS STATUTORY MINIMUM CONTRIBUTION
Actuarial Valuation Date May 1, 2019
Data Collection Date April 30, 2019
Actuarial Cost Method Projected Unit Credit(Level% of Pay)
Amortization Method Level%Pay(Closed)
Remaining Amortization Period 90%Funded Over 21 Years
Asset Valuation Method 5-Year Smoothed Market Value
The contribution and benefit values of the Pension Fund are calculated by applying actuarial assumptions
to the benefit provisions and census information furnished, using the Actuarial Cost Methods described.
The Actuarial Cost and Amortization methods allocate the projected obligations of the plan over the
working lifetimes of the plan participants.
The Actuarial Funding Methods are meant to provide a systematic process for determining contributions
on an annual basis. The methods do not impact the expectation of future benefit payments. The methods
only impact the way contributions are made towards future benefit payments.
Different Actuarial Funding Methods may achieve funding goals with differing levels of success. Certain
methods are more efficient and more stable on an annual basis.
McHenry Police Pension Fund
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In
ACTUARIAL VALUATION DATA
Active Employees
Inactive Employees
Summary of Benefit Payments
ACTUARIAL VALUATIONDATA
ACTIVE EMPLOYEES
Prior Current
Valuation Valuation
Vested 33 35
Nonvested 12 12
Total Active Employees 45 47
Total Payroll 4,101,091 4,387,388
INACTIVE EMPLOYEES
Prior Current
Valuation Valuation
Terminated Employees-Vested 3 3
Retired Employees 21 20
Disabled Employees 6 7
Other Beneficiaries 3 4
Total Inactive Employees 33 34
SUMMARY OF BENEFIT PAYMENTS
Prior Current
Valuation Valuation
Terminated Employees-Vested $ 8,876 8,876
Retired Employees 128,327 128,158
Disabled Employees 22,267 25,965
Other Beneficiaries 14,744 19,103
Total Inactive Employees 174,213 182,102
Benefits shown for Terminated Employees under deferred retirement are not currently in pay status.
McHenry Police Pension Fund
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ACTUARIAL FUNDING POLICIES
Actuarial Cost Method
Financing Unfunded Actuarial Accrued Liability
Actuarial Value of Assets
ACTUARIAL FUNDING POLICIES
ACTUARIAL COST METHOD
The Actuarial Cost Method allocates the projected obligations of the plan over the working lifetimes of
the plan participants.
In accordance with the Pension Fund's Funding Policy the Actuarial Cost Method for the Recommended
Contribution basis is Entry Age Normal (Level Percent of Pay). The Entry Age Normal Cost Method is
a method under which the Actuarial Present Value of the projected benefits of each individual included in
an Actuarial Valuation is allocated on a level basis over the earnings or service of the individual between
entry age and assumed exit age. The portion of this Actuarial Present Value allocated to a valuation year
is called Normal Cost. The portion of the Actuarial Present Value not provided at an Actuarial Valuation
Date by the Actuarial Present Value of future Normal Costs is called the Actuarial Accrued Liability.
The Entry Age Normal method attempts to create a level cost pattern. In contrast to other Actuarial Cost
Methods which inherently lead to uneven or less predictable cost patterns,the Entry Age Normal method
is generally understood to be less risky in terms of contribution stability from year to year.
The Conference of Consulting Actuaries Public Plans Community produced a "white paper" detailing
Funding Policy model practices for public sector pension plans. Under the Level Cost Actuarial
Methodology("LCAM"),one of the principal elements to a Funding Policy is the Actuarial Cost Method.
When deciding which Actuarial Cost Method to use, several objectives may be considered, such as the
following:
Each participant's benefit should be funded under a reasonable allocation method by the expected
retirement date
Pay-related benefit costs should reflect anticipated pay at retirement
The expected cost of each year of service (i.e. Normal Cost) for each active Member should be
reasonably related to the expected cost of that Member's benefit
The Member's Normal Cost should emerge as a level percent of Member compensation
No gains or losses should occur if all assumptions are met.
Following these criteria,the use of the Entry Age Normal cost method(Level Percent of Pay) is a model
practice.
FINANCING UNFUNDED ACTUARIAL ACCRUED LIABILITY
The Unfunded Actuarial Accrued Liability may be amortized over a period either in level dollar amounts
or as a level percentage of payroll.
When amortizing the Unfunded Actuarial Accrued Liability as a level percentage of payroll, additional
risk is incurred since the amortization payments in the early years of the payment period may not be large
enough to cover the interest accrued on the existing Unfunded Liability. As a result, the Unfunded
McHenry Police Pension Fund
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ACTUARIAL FUNDING POLICIES
Liability may increase initially, before the amortization payments grow large enough to cover all interest
accruals. Generally speaking, the Plan Sponsor will be required to contribute a larger total contribution
amount over the course of the funding period under a level percentage of payroll basis as compared to a
level dollar payroll schedule.
The Government Finance Office Association notes that best practices in public pension finance include
utilizing amortization periods that do not exceed 20 years. Longer amortization periods elevate the risk
of failing to reduce any Unfunded Liability. For example, when the amortization payment in full only
covers interest on the Unfunded Liability,but does not reduce the existing Unfunded Liability,the required
contribution will increase in future years.
A second principal element under the Level Cost Actuarial Methodology described above is to establish
an Amortization Policy that determines the length of time and the structure of the increase or decrease in
contributions required to systematically fund the Unfunded Actuarial Accrued Liability. When deciding
on the Amortization Policy, several objectives may be considered, such as the following:
Variations in the source of liability changes (i.e. gains or losses, plan changes, assumption
changes)should be funded over periods consistent with an appropriate balance between the policy
objectives of demographic matching and volatility management
The cost changes in Unfunded Actuarial Accrued Liability should emerge as a level percentage of
Member compensation
The LCAM model practices for the Amortization Policy include the following:
Layered fixed period amortization by source
Level percent of pay amortization
An amortization period ranging from 15-20 years for experience gains or losses
An amortization period of 15-25 years for assumption changes
In accordance with the Pension Fund's Funding Policy for the Recommended Contribution,the Unfunded
Actuarial Accrued Liability is amortized by level percent of payroll contributions to a 100%funding target
over the remaining 21 years. See the Actuarial Methods — Recommended Contribution section of this
report for more detail.
Best practice requires a review of core Funding Policy objectives of multiple stakeholders, including
Members,Pension Boards,Employers and taxpayers. Over the past five years these objectives have been
reviewed and discussed extensively by a variety of organizations, including most U.S.-based Actuarial
associations, and the Government Finance Officers Association. The results provide a good foundation
of common practices viewed as"model"or"best"practices.
A critical piece to the discussion of Funding Policy is the parameters in place for paying down unfunded
liability. Time and style of payoff can have a significant impact on the goals of the stakeholders. The
McHenry Police Pension Fund
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ACTUARIAL FUNDING POLICIES
current Funding Policy includes a payoff period greater than 20 years. Generally,the preference is to have
a dedicated payoff period for any new Unfunded Liability that starts in the 15-20 year range. This provides
a good balance in paying off Unfunded Liability relatively efficiently, while limiting the contribution
volatility of future adverse experience.
The Fund is close to the 15-20 year range for payoff of the current Unfunded Liability. We recommend
allowing the Unfunded Liability payoff period to continue as is to reach the 15-20 year range. In addition,
we recommend that the Fund consider handling new Unfunded Liability in separate buckets to help
manage long-term volatility while maintaining full transparency and accountability for the Unfunded
Liability.
ACTUARIAL VALUE OF ASSETS
The Pension Fund is an ongoing plan. The Employer wishes to smooth the effect of volatility in the
Market Value of Assets on the annual contribution. Therefore, the Actuarial Value of Assets is equal to
the Market Value of Assets with unanticipated gains/losses recognized over a five-year period.
The Asset Valuation Method is intended to create an Actuarial Value of Assets that remains reasonable in
relation to the Market Value of Assets over time. The method produces results that can fall either above
or below the Market Value of Assets. The period of recognition is short.
It is intended that the period of recognition is short enough to keep the Actuarial Value of Assets within a
decent range of the Market Value. In the event that the Actuarial Value of Assets exceeds or falls below
a 10%corridor of the Market Value of Assets,the additional gain or loss will be recognized immediately.
McHenry Police Pension Fund
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ACTUARIAL ASSUMPTIONS
Nature of Actuarial Calculations
Actuarial Assumptions in the Valuation Process
Assessment of Risk Exposures
Limitations of Risk Analysis
Actuarial Assumptions Utilized
ACTUARIAL ASSUMPTIONS
NATURE OF ACTUARIAL CALCULATIONS
The results documented in this report are estimates based on data that may be imperfect and on
assumptions about future events. Certain Plan Provisions may be approximated or deemed immaterial,
and, therefore, are not valued. Assumptions may be made about participant data or other factors.
Reasonable efforts were made in this valuation to ensure that significant items in the context of the
Actuarial Accrued Liability or costs are treated appropriately, and not excluded or included
inappropriately.
Actual future experience will differ from the assumptions used in the calculations. As these differences
arise, the expense for accounting purposes will be adjusted in future valuations to reflect such actual
experience.
A range of results different from those presented in this report could be considered reasonable. The
numbers are not rounded, but this is for convenience only and should not imply precision which is not
inherent in actuarial calculations.
ACTUARIAL ASSUMPTIONS IN THE VALUATION PROCESS
The contributions and benefit values of the Pension Fund are calculated by applying actuarial assumptions
to the benefit provisions and census information furnished, using the Actuarial Cost Methods described in
the Actuarial Funding Policies section of this report.
The principal areas of financial risk which require assumptions about future experience are:
Long-term Expected Return on Investments
Patterns of pay increases for Members
Rates of Mortality among Members and Beneficiaries
Rates of Withdrawal of Active Members
Rates of Disability among Members
Age patterns of actual retirement
Actual experience of the Pension Fund will not coincide exactly with assumed experience. Each valuation
provides a complete recalculation of assumed future experience and takes into account all past differences
between assumed and actual experience. The result is a continual series of adjustments to the computed
Recommended Contribution.
Details behind the selection of the actuarial assumptions can be found in the Assumptions Summary
document provided to the client upon request. The client has reviewed and approved the assumptions as
a reasonable expectation of the future anticipated experience under the Plan.
McHenry Police Pension Fund
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ACTUARIAL ASSUMPTIONS
ASSESSMENT OF RISK EXPOSURES
From time to time it becomes appropriate to modify one or more of the assumptions,to reflect experience
trends (but not random year-to-year fluctuations).
In addition, Actuarial Standards of Practice require that the Actuary minimally perform a qualitative
assessment of key financial and demographic risks as part of the risk assessment process with each annual
Actuarial Valuation. The risk assessments we perform include,but are not limited to,the following:
Periodic demographic experience studies every 3 to 5 years to confirm the ongoing appropriateness
of demographic assumptions
Highlight the impact of demographic experience over the past year, as well as other sources of
change and volatility in the Actuarial Recommended Contribution—Reconciliation section of this
report
Detail year-over-year changes in contribution levels, assets, liabilities, and Funded Status in the
Recommended Contribution and Funded Status sections of the Management Summary of this
report
Review any material changes in the covered population as summarized in the Actuarial Valuation
Data section of this report
Provide and discuss a separate written Assumptions Summary document highlighting the rationale
for each key economic and demographic assumption chosen by the Plan Sponsor
Identify potential cash flow risks by highlighting expected benefit payments over the next 5-year
and 10-year periods in the Asset Growth section in this report
Describe the impact of any assumption,method, or policy change in the Management Summary
Utilize supplemental information, such as the GASB discount rate sensitivity disclosures to
understand, for example, what impact an alternative Expected Return on Investments assumption
might have on the estimation of Actuarial Accrued Liability and Funded Status
Utilize supplemental information, such as the GASB solvency test, to better understand the cash
flow risk and long-term sustainability of the Plan.
LIMITATIONS OF RISK ANALYSIS
Since future experience may never be precisely as assumed,the process of selecting funding methods and
actuarial assumptions may inherently create risk and volatility of results. A more detailed evaluation of
the above risk exposures is beyond the scope and nature of the annual Actuarial Valuation process. For
example, scenario tests, sensitivity tests,stress tests,and/or stochastic modeling for multi-year projections
to assess the impact of alternative assumptions and methods,or modeling future experience different from
the assumptions in these results, are not included in this Actuarial Valuation.
The McHenry Police Pension Fund and/or the City of McHenry, Illinois should contact the Actuary if
they desire a more detailed assessment of any of these forward-looking risk exposures.
McHenry Police Pension Fund
Page 35
ACTUARIAL ASSUMPTIONS
ACTUARIAL ASSUMPTIONS UTILIZED
Expected Return on Investments 7.00%Net of Administrative Expenses
CPI-U 2.50%
Total Payroll Increases 3.00%
Individual Pay Increases 4.00%- 10.27%
Individual salary increases include a long-term average increase for
inflation, average annual increases for promotions, and any
additional increases for a step program. Sample rates as follows:
Service Rate Service Rate
0 10.27% 8 4.00%
1 9.71% 9 4.00%
2 9.23% 10 4.00%
3 8.80% 15 4.00%
4 8.43%20 4.00%
5 8.10%25 4.00%
6 7.80% 30 4.00%
7 4.00%35 4.00%
Retirement Rates 100% of the L&A Assumption Study Cap Age 65 for Police 2016.
Sample rates as follows:
Age Rate Age Rate
50 11.66% 53 13.89%
51 12.36% 54 14.72%
52 13.10% 55 15.60%
McHenry Police Pension Fund
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ACTUARIAL ASSUMPTIONS
Withdrawal Rates 100%of the L&A Assumption Study for Police 2016. Sample rates
as follows:
Age Rate Age Rate
25 4.06% 40 2.69%
30 3.89% 45 1.36%
35 3.61% 50 0.31%
Disability Rates 100%of the L&A Assumption Study for Police 2016. Sample rates
as follows:
Age Rate Age Rate
25 0.05% 40 0.28%
30 0.10% 45 0.43%
35 0.18% 50 0.64%
Mortality Rates Active Mortality follows the Sex Distinct Raw Rates as developed
in the RP-2014 Study,with Blue Collar Adjustment. These rates are
improved generationally using MP-2016 Improvement Rates.
Retiree Mortality follows the L&A Assumption Study for Police
2016. These rates are experience weighted with the Raw Rates as
developed in the RP-2014 Study, with Blue Collar Adjustment and
improved generationally using MP-2016 Improvement Rates.
Disabled Mortality follows the Sex Distinct Raw Rates as developed
in the RP-2014 Study for Disabled Participants. These rates are
improved gencrationally using MP-2016 Improvement Rates.
Spouse Mortality follows the Sex Distinct Raw Rates as developed
in the RP-2014 Study. These rates are improved generationally
using MP-2016 Improvement Rates.
Marital Assumptions Active Members: 80% of Active Members are assumed to be
married. Female Spouses are assumed to be 3 years younger than
Male Spouses.
Retiree and Disabled Members: Actual spousal data was utilized
for Retiree and Disabled Members.
McHenry Police Pension Fund
Page 37
SUMMARY OF PRINCIPAL PLAN PROVISIONS
Establishment of the Fund
Administration
Employee Contributions
Regular Retirement Pension Benefit
Early Retirement Pension Benefit
Surviving Spouse Benefit
Termination Benefit—Vested
Disability Benefit
SUMMARY OF PRINCIPAL PLAN PROVISIONS
ESTABLISHMENT OF THE FUND
The Police Pension Fund is established and administered as prescribed by "Article 3 — Police Pension
Fund—Municipalities 500,000 and Under"of the Illinois Pension Code.
ADMINISTRATION
The Police Pension Fund is administered by a Board of Trustees whose duties are to manage the Pension
Fund, determine applications for pensions, authorize payment of pensions, establish rules,pay expenses,
invest assets, and keep records.
EMPLOYEE CONTRIBUTIONS
Employees contribute 9.910%of pensionable salary.
REGULAR RETIREMENT PENSION BENEFIT
Hired Prior to January 1, 2011
Eligibility: Age 50 with at least 20 years of creditable service.
Benefit: 50%of final salary for the first 20 years of service,plus an additional 2.5%of final salary for
each year of service beyond 20 years of service, and not to exceed 75%of final salary. "Final salary"
is based on the police officer's pensionable salary attached to rank held on the last day of service,
unless the pensionable salary was higher at some point within the year prior to the last day of service.
If so,the pensionable salary is averaged over the last 12 months.
Annual Increase in Benefit: A police officer is entitled to receive an initial increase equal to 1/12 of
3% of the original monthly benefit for each full month that has passed since the pension began. The
initial increase date will be the latter of the first day of the month after the pensioner turns age 55 or
the first day of the month after the benefit date anniversary. Subsequent increases of 3%of the current
monthly benefit will be granted every January I"thereafter.
McHenry Police Pension Fund
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SUMMAR Y OF PRINCIPAL PLAN PROVISIONS
REGULAR RETIREMENT PENSION BENEFIT-CONTINUED
Hired on or After January 1, 2011
Eligibility: Age 55 with at least 10 years of creditable service.
Benefit: 2.5%of final average salary for each year of service, and not to exceed 75%of final average
salary. "Final average salary" is determined by dividing the total pensionable salary during 96
consecutive months of service within the last 120 months of service in which total pensionable salary
was the highest,by the number of months of service in that period. Annual salary for this purpose will
not exceed the salary cap, indexed by the lesser of 3% or % of the CPI-U for the 12 months ending
with the September preceding each November I". The salary cap will not decrease.
Annual Increase in Benefit: The initial increase date will be the latter of the January Pt after the
pensioner turns age 60 or the January 1"after the benefit date anniversary. Subsequent increases will
be granted every January Pt thereafter. The initial increase and subsequent increases will be the lesser
of 3%of the original benefit or''/2 of the CPI-U for the 12 months ending with the September preceding
each November Pt.
EARLY RETIREMENT PENSION BENEFIT
Hired Prior to January 1, 2011
None.
Hired on or After January 1, 2011
Eligibility: Age 50 with at least 10 years of creditable service.
Benefit: The regular retirement pension benefit reduced by % of 1% for each month that the police
officer's age is between 50 and 55.
Annual Increase in Benefit: The initial increase date will be the latter of the January Pt after the
pensioner turns age 60 or the January 1 st
after the retirement date anniversary. Subsequent increases
will be granted every January I"thereafter. The initial increase and subsequent increases will be the
lesser of 3% of the original benefit or '/2 of the CPI-U for the 12 months ending with the September
preceding each November I".
McHenry Police Pension Fund
Page 40
SUMMARY OF PRINCIPAL PLAN PROVISIONS
SURVIVING SPOUSE BENEFIT
Hired Prior to January 1, 2011
Eligibility: Married to an active police officer with at least 8 years of creditable service or disabled
pensioner at the time of death or married to a retired pensioner on the last day of service.
Active Line of Duty Death Benefit: An eligible surviving spouse is entitled to receive 100% of the
police officer's final pensionable salary attached to rank held on the last day of service.
Non-Duty Death Benefit:
Disabled or Retired Pensioner: An eligible surviving spouse is entitled to receive the pensioner's
benefit at the time of death.
Active Employee with 20+ Years of Service: An eligible surviving spouse is entitled to the police
officer's benefit at the time of death.
Active Employee with 10-20 Years of Service: An eligible surviving spouse is entitled to receive
50%of the police officer's pro-rated pensionable salary attached to rank over the last 12 months.
Annual Increase in Benefit: None.
Hired on or After January 1, 2011
Eligibility: Married to an active police officer with at least 8 years of creditable service or disabled
pensioner at the time of death or married to a retired pensioner on the last day of service.
Active Line of Duty Death Benefit: An eligible surviving spouse is entitled to receive 100% of the
police officer's final pensionable salary attached rank held on the last day of service.
Non-Duty Death Benefit:
Disabled or Retired Pensioner, Active Employee with 20+ Years of Service, and Active Employee
with 10-20 Years of service: An eligible surviving spouse is entitled to receive 66 2/
3%of the police
officer's pension benefit at the time of death.
Annual Increase in Benefit: The initial increase date will be the January I"after the surviving spouse
turns age 60. Subsequent increases will be granted every January 1"thereafter. The initial increase
and subsequent increases will be the lesser of 3%of the original benefit or '/2 of the CPI-U for the 12
months ending with the September preceding each November Is'.
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Page 41
SUMMARY OF PRINCIPAL PLAN PROVISIONS
TERMINATION BENEFIT—VESTED
Hired Prior to January 1, 2011
Eligibility: Age 60 with at least 8 but less than 20 years of creditable service.
Benefit: 2.5% of final salary for each year of service. "Final salary" is based on the police officer's
pensionable salary attached to rank held on the last day of service, unless the pensionable salary was
higher at some point within the year prior to the last day of service. If so, the pensionable salary is
averaged over the last 12 months.
Annual Increase in Benefit: A police officer is entitled to receive an initial increase equal to 1/12 of
3%of the original monthly benefit for each full month that has passed since the pension began on the
first day of the month after the benefit date anniversary. Subsequent increases of 3% of the current
monthly benefit will be granted every January 1st thereafter.
Hired on or After January 1, 2011
None.
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Page 42
SUMMARY OF PRINCIPAL PLAN PROVISIONS
DISABILITY BENEFIT
Hired Prior to January 1, 2011
Eligibility: Duty or Non-Duty Disability.
Benefit: For a duty disability, a police officer is entitled to receive the greater of 65% of final salary
or the regular retirement pension benefit at the time of disability. For a non-duty disability, a police
officer is entitled to receive 50% of final salary. "Final salary" is based on the police officer's
pensionable salary attached to rank held on the last day of service.
Annual Increase in Benefit: A police officer is entitled to receive an initial increase equal to 3%of the
original monthly benefit for each full year that has passed since the pension began. The initial increase
date will be the latter of the January I' after following pensioner turns age 60 or the January I'after
the benefit date anniversary. Subsequent increases of 3% of the original monthly benefit will be
granted every January I"thereafter.
Hired on or after January 1, 2011
Eligibility: Duty or Non-Duty Disability.
Benefit: For a duty disability, a police officer is entitled to receive the greater of 65% of final salary
or the regular retirement pension benefit at the time of disability. For a non-duty disability, a police
officer is entitled to receive 50% of final salary. "Final salary" is based on the police officer's
pensionable salary attached to rank held on the last day of service.
Annual Increase in Benefit: A police officer is entitled to receive an initial increase equal to 3%of the
original monthly benefit for each full year that has passed since the pension began. The initial increase
date will be the latter of the January I"after following pensioner turns age 60 or the January Pt after
the benefit date anniversary. Subsequent increases of 3% of the original monthly benefit will be
granted every January 1 st thereafter.
McHenry Police Pension Fund
Page 43
GLOSSARY OF TERMS
Glossary of Terms
GLOSSARY OF TERMS
GLOSSARY OF TERMS
Actuarial Accrued Liability—The Actuarial Present Value of future benefits based on employees' service
rendered to the Measurement Date using the selected Actuarial Cost Method. It is that portion of the
Actuarial Present Value of plan benefits and expenses allocated to prior years of employment. It is not
provided for by future Normal Costs.
Actuarial Cost Method— The method used to allocate the projected obligations of the plan over the
working lifetimes of the plan participants.
Actuarial Value of Assets—The value of the assets used in the determination of the Unfunded Actuarial
Accrued Liability. The Actuarial Value of Assets is related to Market Value of Assets,with adjustments
made to spread unanticipated gains and losses for a given year over a period of several years. Actuarial
Value of Assets is generally equally likely to fall above or below the Market Value of Assets,and generally
does not experience as much volatility over time as the Market Value of Assets.
Asset Valuation Method—A valuation method designed to smooth random fluctuations in asset values.
The objective underlying the use of an Asset Valuation Method is to provide for the long-term stability of
Employer Contributions.
Funding Policy—A set of procedures for a Pension Fund that outlines the"best practices"for funding the
pension benefits based on the goals of the Plan Sponsor. A Funding Policy discusses items such as
assumptions, Actuarial Cost Method, assets, and other parameters that will best help the sponsor meet
their goal of working in the best interest of the plan participant.
Market Value of Assets— The value of the cash, bonds, securities and other assets held in the pension
trust as of the Measurement Date.
Normal Cost—The present value of future benefits earned by employees during the current Fiscal Year.
It is that portion of the Actuarial Present Value of benefits and expenses which is allocated to a valuation
year by the Actuarial Cost Method.
Unfunded ActuarialAccrued Liability—The excess of the Actuarial Accrued Liability over the Actuarial
Value of Assets. The Unfunded Actuarial Accrued Liability is amortized over a period either in level
dollar amounts or as a level percentage of projected payroll.
McHenry Police Pension Fund
Page 45
Lauterbach & Amen, LLP
CERTIFIED PUBLIC ACCOUNTANTS
Department of Public Works
v 4, Troy Strange, Director of Public Works
1415 Industrial Drive
McHenry, Illinois 60050
Phone: (815) 363-2186
Fax: (815) 363-2214
maienrvwww.ci.mchenry.il.us
CONSENT AGENDA SUPPLEMENT
DATE: December 16, 2019
TO:Mayor and City Council
FROM: Troy Strange, Director of Public Works
RE:Contracted Cul-De-Sac Snow Removal Services Supplemental Contract Award
ATT: City Purchase order with Langton Snow Solutions, Inc. and Supplemental
Agreement Conditions
AGENDA ITEM SUMMARY:
Staff requests City Council to consider waiving competitive bidding requirements and award a
2019-2020 City of McHenry Cul-De-Sac Snow Removal Supplemental Contract to Langton Snow
Solutions, Inc.
BACKGROUND:
Fiscal Year 2019/2020 Budget included $60,000 for contracted snow removal services to
supplement manpower shortages specifically for the completion of snow removal in cul-de-sacs
and eyebrows. In any given year the completion of snow removal in cul-de-sacs is a staffing
challenge for the Public Works Department. In winter of 2018 and 2019 over 300 winter
operations related overtime hours were utilized to complete snow removal operations in cul-de-
sacs. These hours were expended over a total of ten events in which cul-de-sac drivers were
called in. Historically, cul-de-sac crews have been called in for between ten and fifteen events
which are in excess of two inches of snow.
Staffing these shifts is a challenge due to time off allowances during the winter months permitted
in the Local 150 Contract. At times these cul-de-sac routes are left to sit until drivers from other
routes are available or follow up operations take place during regular daytime hours. In order to
supplement these manpower shortages staff budgeted for contracted snow removal services in
cul-de-sacs and eyebrows.
At the September 16, 2019 City Council meeting a contract for cul-de-sac snow removal was
awarded to Langton Snow Solutions, Inc. which included snow removal service for three of the
City's four cul-de-sac plowing routes. These routes were contracted as the total cost for a
representative number of events on these routes was within the FY1920 budget appropriation
for contracted snow removal services. Since this time there has been a street division personnel
reduction due to staff attrition and as a result the fourth route is now being added with this
supplemental contract by utilizing these payroll and benefit reduction savings.
ANALYSIS:
Staff previously requested itemized pricing for the 2019-2020 winter operations season from
Langton Snow Systems, Inc. who was the apparent low bidder of the original cul-de-sac services
bid. The cul-de-sac snow removal services contract which was awarded in September included
services for three of the four City cul-de-sac routes with one route being omitted in order keep
the cost of contracted services within the FY1920 budget appropriation. This proposal is for the
final cul-de-sac route which was not originally contracted. The total cost of services is less than
the remaining salary and benefits expenditure associated with the current personnel reduction
and the scope of services is representative of the specific needs for this year's winter operations
season.
RECOMMENDATION:
Therefore, if Council concurs, it is recommended to waive competitive bidding requirements
and award a supplemental contract to Langton Snow Solutions, Inc. in the amount of
30,422.32 with a 50% retainer of $15,211.16. Actual costs may vary and will be based upon
the amount of snow events for which services are necessary.
CITY OF MCHENRY PURCHASE ORDER-CONSTRUCTION(Small Projects)
Date: December 16,2019 Purchase Order No.
Project: 2019-2020 City of McHenry,Cul-De-Sac Snow Removal Location: City of McHenry Cul-De-Sac Routes
Supplemental Contract
Owner ContractorNendor Architect/Engineer
City of McHenry
Langton Snow Solutions,Inc.
333 South Green Street
4510 Dean Street
McHenry,Illinois 60050 Woodstock,IL 60098
Phone:
Phone: (815)363-2100
Phone: 815-338-2630 Fax:
Fax: (815)363-2119 Fax: 815-338-2634 Contact:
Contact: Derik Morefield,
Contact: Joe Langton
City Administrator
COST OF WORK
The Contract Price of the Work under this Purchase Order is$30,422.32
SCOPE OF WORK: Furnish the Work/items described below in accordance with the following plans and specifications:
Q General Contract,dated 20_ Q Specification No(s): dated 20_
Q Plans dated: Q Addendum No(s):
Q Other: Supplemental Conditions Attached
The following prices shall remain in effect for the duration ofproject:
UNIT OF
QUANTITY MEASURE DESCRIPTIONATEMS UNIT PRICE EXTENSION
8 EACH Al 2"-5"Per Push 2,173.01 17,384.08
4 EACH Al T-9"Per Push 3,259.56 13,038.32
TOTAL $30,422.32
NOTES: 1)Contract Includes a 50%retainer for the awarded contract price. Retainer will be due in full by March 1,2020 unless the total
invoiced amount has exceeded the total retainer amount of$15,211.16. This contract is not a contract for new construction and therefore the
conditions of Section 8.1 will not be applicable.
WARRANTIES and INDEMNIFICATION
ContractorNendor agrees to provide the following warranties for the Work: (a)all workmanship to be warranted for a period of one(1)
year-manufacturer warrants material;and(b)all other warranties contained elsewhere in the Contract Documents or Supplemental
Conditions hereto.Further,CONTRACTORNENDOR SHALL FULLY INDEMNIFY AND SAVE THE CITY OF MCHENRY
HARMLESS FROM ALL CLAIMS,LIENS,FEES,AND CHARGES,AND THE PAYMENT OF ANY OBLIGATIONS
ARISING THEREUNDER,pursuant to the provisions in the Supplemental Conditions hereto.
CONTRACT TIMES
Langton Snow Solutions,Inc.will be responsible for providing services in accordance with this agreement beginning November 15,
2019 and ending April 15,2020.
THE TERMS OF THIS PURCHASE ORDER AND THE ATTACHED SUPPLEMENTAL CONDITIONS ARE THE ENTIRE
AGREEMENT BETWEEN THE CITY/OWNER AND VENDOR. No payment will be issued unless a copy of this Purchase
Order is signed,and dated and returned to the Owner. Material certifications/test reports required.All domestic material,
unless otherwise specified. Purchase exempt from sales and/or use taxes.
1
ACCEPTANCE OF PURCHASE ORDER
The parties, for themselves, their heirs, executors, administrators, successors and assigns, do hereby agree to the full
performance of all terms and provisions herein contained. IN WITNESS WHEREOF,the parties hereto have executed this
Purchase Order the day and year written below.
CONTRACTORIVENDOR: PURCHASER:
City of McHenry
By: Title:
Representative of Vendor authorized to
execute Purchase Order Dated:
SUPPLEMENTAL CONDITIONS
1. Acceptance of Purchase Order: The Purchase Order is an offer to contract, buy or rent and not an acceptance of an offer to
contract, sell or rent. Acceptance of this Purchase Order is expressly limited to the terms hereof, and in the event that
ContractorNendor's acknowledgment or other response hereto states terms additional to or different from those set forth herein,this
Purchase Order shall be deemed a notice of objection to such additional or different terms and rejection thereof. This Purchase Order
may be accepted by the commencement of any Work hereunder or the delivery of any goods herein ordered,and,in any event,shall be
deemed accepted in its entirety by ContractorNendor unless Owner is notified to the contrary within ten(10) days from its date of
issue.
2. Amendment, Modification or Substitution: This Purchase Order contains the entire agreement between the parties. Any
modification or rescission thereof must be in writing and signed by Owner. No proposals or prior dealings of the parties or trade
custom not embodied herein shall alter the interpretation or enforcement of this Purchase Order.
3. Familiarity With Plans;Qualifications: ContractorNendor acknowledges that it(a)has examined the site of the proposed Work
and is familiar with the conditions surrounding same;and(b)has examined the plans and drawings,and has studied and is aware of,
and satisfied with,the requirements of the Contract Documents. ContractorNendor represents to Owner that it is fully experienced
and properly qualified as an expert to perform the class of work provided for herein,and that it is properly equipped,organized and
financed to handle such work.ContractorNendor shall finance its own operations hereunder,shall operate as an independent
contractor and not as the agent of Owner,and shall hold Owner free and harmless from all liability,costs and charges by reason of any
act or representations of ContractorNendor,its agents or employees.
4. Workmanship;Safety: All Work shall be performed by ContractorNendor in a neat,skillful and workmanlike manner,and all
materials furnished by ContractorNendor shall be new and of the best description and quality of their respective kinds,unless
otherwise specified and ordered by Owner in writing. All Work and/or materials shall be subject to the inspection and approval of the
Owner,its engineers and representatives. ContractorNendor is responsible for its own and its employees' activities on the jobsite,
including but not limited to,the methods of work performance,superintendence,sequencing of work,and safety in,on or about the
jobsite area in which it is performing the Work under this Purchase Order. Owner and ContractorNendor shall not require any laborer
or mechanic employed in performance of this Purchase Order to work in surroundings or under working conditions which are
unsanitary,hazardous or dangerous to his health or safety,as determined under applicable federal and Illinois construction safety and
health standards
5. Extra's and Chance Orders:No claim by ContractorNendor that any instructions,by drawing or otherwise,constitute a change
in ContractorNendor's performance hereunder, for which ContractorNendor should be paid additional compensation shall be valid,
unless prior to commencing such allegedly extra or changed performance,ContractorNendor shall have received a written supplement
to this Purchase Order authorizing such performance signed on behalf of Owner by a person have actual authority to do so.No claim
for additional compensation on the basis that ContractorNendor has incurred any expense by reason of any act or failure to act or
Owner or its contractor, subcontractor, materialmen or any other party shall be valid unless made in writing within 30 days of the
alleged act or failure to act and approved by Owner,provided,however,that if the ContractorNendor should be delayed in furnishing
the articles, items,equipment or materials(hereinafter sometimes referred to as"goods")or services or Work(hereinafter sometimes
referred to as"Work")ordered herein,by the omission,neglect or default of Owner,its agents or employees,ContractorNendor shall
be entitled to no additional compensation or damages for such delay, and shall be entitled only to an extension of time for a period
equal to the time lost as a result of the aforesaid causes, determined by Owner. Any charges for extra not so authorized will not be
paid.
2
6. Inspection and Acceptance: Owner shall have the right at all reasonable times to inspect and test all goods, materials or Work
furnished by ContractorNendor and all Work performed or furnished by ContractorNendor.Notwithstanding any prior inspection,
the passage of title or any prior payment, all goods, material and Work furnished thereunder are subject to final inspection and
acceptance by Owner at its job site. If, after inspection, Owner rejects any goods furnish by ContractorNendor thereunder, Owner
may,at its election,return those goods to ContractorNendor at ContractorNendor's expense,including the cost of any inspection and
testing thereof. If ContractorNendor fails to proceed promptly with the correction or replacement of any rejected goods or Work,
Owner may replace or correct such items or Work by purchase or manufacture and charge the cost incurred thereby to
ContractorNendor or terminate this Purchase Order for default in accordance with paragraph 12 herein. By inspecting and not
rejecting any goods and Work furnished thereunder,Owner shall not be precluded thereby from subsequently revoking its acceptance
thereof it the goods or Work are later discovered to be nonconforming with this Purchase Order or the specifications and drawings
applicable hereto,even if the defect does not substantially impair value to Owner.
7. Taxes, Delivery, Risk of Loss: Unless indicated to the contrary on the face hereof, it shall be the responsibility of
ContractorNendor to arrange for and complete delivery of all goods or materials. If the goods or materials furnished thereunder are
equipment,ContractorNendor shall give Owner two(2)working days' advance notice of delivery. All goods or materials furnished
by ContractorNendor should be shipped in the manner and at the times indicated on the face hereof at the expense of
ContractorNendor, it being understood that the risk of loss with respect to such goods is with ContractorNendor until such goods
come into the actual possession of Owner, regardless of the mode of delivery or earlier passage of title. This project is tax exempt.
The Owner's tax-exempt number is E
8. Payment:Owner will make partial payments to the ContractorNendor from time to time for the Work performed and the materials
furnished by the ContractorNendor. Provided,however,in no event shall Owner be obligated to pay ContractorNendor any sum that
exceeds the Contract Price absent a written change order executed by Owner.
Owner(in a f suitable to the Owneo an application for the payment then due,together with r-eceipts,waiveFs of r
evidenee showing the GentracterAlendef's payments for materials,laber and other expense ineurred in the Gent-faeterAlender's Work
hereunder. The Owner wifl,at all times,be entitled to retain ten percent o
as a pa44 security for the faithful performanGa of this Agrooment. This ten per-cent
r
10,04) so withhold- *411 not he paid to the
Geatraetei4Vender-until the Owner has issued to the Gentr-aratorNender a final aceeptance ef the Projeet.
8.2 Owner may withhold the whole or any part of any payment due to the ContractorNendor to the extent necessary to
protect and indemnify the Owner from loss on account of(a) defective Work not remedied; (b) claims filed or reasonable evidence
indicating probable filing of claims; (c) failure of the ContractorNendor to make payments promptly for material or labor; or (d)
ContractorNendor's failure to furnish Owner with all written warranties and operational manuals for the Work.
8.3 ContractorNendor hereby authorizes the OWNER (1) to deduct from any amount due or becoming due the
ContractorNendor under this Agreement for all amounts owing from the ContractorNendor to (a) the Owner for back-charges or
services furnished for the account of the ContractorNendor; (b)the Owner for damages sustained whether through negligence of the
ContractorNendor or through failure of the ContractorNendor to act as may be otherwise detailed herein; (c) materialmen; (d)
subcontractors; (e) laborers; and (f) others for services and materials furnished to the ContractorNendor for the Work performed
under this Agreement, and(2)to apply the amount so deducted to the payment of said materials, services, damages or back-charges
applying such monies so available in the order hereinbefore set forth.
8.4 Owner,without invalidating this Agreement,may make changes by altering,adding to or deducting from the Work to be
performed. The value of any such changes will be determined as follows:(a)by the unit prices named in this Agreement,if any;or(b)
by agreement in writing between the Owner and the ContractorNendor as to the value of the time and materials for the changes in the
Work. In any event,the ContractorNendor will keep and present, in any form as the Owner may direct,a correct account of the net
cost of any extra labor and materials,together with vouchers referring to the same.
8.5 Notwithstanding the payment in full for the Work hereunder,the ContractorNendor will be liable to repair or replace any
imperfect workmanship or other faults; and if the ContractorNendor fails to repair or replace the imperfect workmanship or other
faults, the Owner may do the Work and recover from the ContractorNendor the cost and expense thereof. No payment on account
will be construed or considered as an approval of the Work for which payment is made.
9. ContractorNendor Warranty: ContractorNendor warrants in addition to all warranties which are imposed or implied by law or
equity that all materials and Work furnished thereunder (a) shall confirm to any specifications and drawings applicable to this
Purchase Order; (b) shall be merchantable and of good quality and workmanship; (c) shall be fit for the purpose intended as well as
the propose for which such goods, materials or Work are generally used; and (d) except for rented equipment, shall be free from
defects for a period of one(1)year,or such longer period as is specified in the Scope of Work or Contract Documents,from the date
such Work is performed or such materials are utilized or installed,and if installed as part of a structure or utilized equipment,for one
1)year or such longer period as is specified in the Contract Documents,from the date any such goods,materials or Work hereunder is
accepted in writing by Owner. ContractorNendor expressly agrees that the statute of limitations with respect to ContractorNendor's
warranties shall begin to run on the date of acceptance by Owner.
3
10. Insurance and Bonds: ContractorNendor shall at all times maintain business automobile, commercial liability and workers
compensation insurance covering its work and all obligations under this Purchase Order, and shall name the Owner as an additional
insured on its commercial liability insurance policies for ContractorNendor operations under this Purchase Order. Liability insurance
limits shall be in an amount sufficient to protect the Owner's interests as they may appear herein, but in no event less than
1,000,000.00 per occurrence. ContractorNendor shall furnish and pay for surety bonds and with surety or sureties satisfactory to
Owner, guaranteeing the full performance of all of the conditions and terms hereof and guaranteeing that ContractorNendor shall
promptly pay for all labor,materials, supplies, tools, equipment and other charges or costs of ContractorNendor in connection with
the Work. Such performance and payment bond shall be in an amount determined by Owner.
11. Indemnity: The Parties hereby agree to indemnify, and hold each other, their respective direct and indirect parents and
subsidiaries, project manager, any of their affiliated entities, successors and assigns and any current or future director, officer,
employee,partner, member or agent of any of them (the"Indemnitees") harmless from any and all claims , demands, liability, loss,
damage, fines, penalties, attorney's fees and litigation expenses (collectively"Loss") arising out of injury to, including the death of,
persons and/or damage to property,to the extent caused by the negligent acts or omissions of the party providing such indemnification.
Further:
11.1 ContractorNendor acknowledges that any such items or Work furnished hereunder may include in whole or in part with
or without modification or improvements in equipment,machinery or items constructed by Owner,and that should such item or Work
prove defective such charges claimed by Owner shall include consequential damages, penalties, taxes or assessments (including
punitive damages),including counsel fees and the costs of defense,which may be imposed or incurred under any federal,state or local
low, ordinance or regulation upon or with respect to (a) the payment of compensation to any individual employed by
ContractorNendor;(b)any discrimination against any individual employed by ContractorNendor on the basis of race,color,religion,
sex, national origin or physical or mental handicap; (c) the protection of purchasers and users of consumer products; or (d)
occupational safety and health.
11.2 In any and all claims against Owner or any of its agents or employees, by any employee of ContractorNendor, 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 ContractorNendor under workers compensation acts, disability benefits acts or employee
benefit acts, or other applicable law. ContractorNendor assumes the entire liability for its own negligence, and as part of this
Agreement waives all defenses available to ContractorNendor as an employer which limit the amount of ContractorNendor's liability
to Owner to the amount of ContractorNendor's liability under any workers compensation,disability benefits or employee benefit acts.
12. Patents:ContractorNendor warrants that(a)goods furnished thereunder,and the sale and use thereof,shall not infringe any valid
United States patent or trademark;and(b)ContractorNendor shall indemnify Owner for its costs to defend any suit instituted against
Owner,its agents or customers,charging infringement of any United States patent or trademark by virtue of the possession,use or sale
of any goods furnished thereunder is enjoined because of patent infringement. ContractorNendor within a reasonable amount of time
shall at ContractorNendor's expense procure for Owner its agents or customer, the right to continue using such goods with non-
infringing goods or modify such goods so that they become non-infringing or remove such goods and refund to Owner any sums paid
therefore,including transportation and installation charges.
13. Cancellation: Time of delivery of this Purchase Order is of the essence and Owner may, by written notice of default to
ContractorNendor,cancel the whole or any part of this Purchase Order(a)if ContractorNendor fails to make delivery of the goods or
perform the services within the time specified herein or any extensions thereof;or(b)if ContractorNendor fails to perform or so fails
to make progress as to endanger performance thereunder,and in either circumstance does not cure such failure within a period of two
2)days after receipt of notice from Owner specifying such failure. Owner, by written notice to ContractorNendor, may cancel the
whole or any part of this Purchase Order when it is in the best interest of Owner or when Owner has been notified of modification of
the specifications pertaining thereto. If this Purchase Order is so canceled,the ContractorNendor shall be compensated as follows:(a)
for materials delivered and services performed,the reasonable value as part of the Contract Price; (b) for materials not identified to
this Purchase Order and service not performed, no compensation; and (c) for ContractorNendor's lost profits or incidental or
consequential loss,no compensation.
14.Remedies: ContractorNendor shall,for the duration of its warranties under paragraph 9 herein, at the discretion of Owner and at
the expense of ContractorNendor, replace, repair and insure any and all faulty or imperfect goods, materials or Work furnished or
performed by ContractorNendor thereunder.In the event ContractorNendor fails to do so,Owner may furnish or perform the same,
and may recover from ContractorNendor the cost and expense directly or indirectly resulting there from, including all consequential
damages but not limited to the cost or expense of inspection, testing, removal, replacement, re-installation, destruction of other
materials resulting there from,any increased cost or expense to Owner in its performance under contracts with others,and reasonable
attorneys fees incurred by the Owner in connection with Vendor's default and Owner's enforcement of its rights under this Purchase
Order. The foregoing remedies shall be available in addition to all other remedies available to Owner in equity or at law including the
Uniform Commercial Code.
4
15. Compliance With Laws:During the performance hereunder,ContractorNendor agrees to give all notices and comply with all
Laws and Regulations of the United States and/or the State of Illinois applicable to the performance of the Work,including but not
limited to those Laws and Regulations regarding the payment of prevailing wages,non-discrimination laws,employment of Illinois
workers,labor,wage and collective bargaining. Except where otherwise expressly required by applicable Laws and Regulations,
Owner shall not be responsible for monitoring ContractorNendor's compliance with any Laws or Regulations.
16. Notices: All notices, demands, requests or other communications which may be or are required to be given, served, or sent by
any party to any other party pursuant to this Purchase Order shall be in writing and shall be hand delivered,or sent by courier,or via
facsimile with confirmation to the addresses shown on the Purchase Order.
17. Records, Reports and Information: ContractorNendor agrees to furnish Owner with reports and information regarding the
Work performed under this Purchase Order,at such times as Owner may reasonably request,making full disclosure of efforts made by
ContractorNendor and the results thereof. ContractorNendor agrees to maintain records,documents, and other evidence which will
accurately show the time spent and Work performed under this Purchase Order for a minimum period of five (5) years after
completion of the Work, and such records shall be subject to audit by the Owner upon reasonable advance notice to
ContractorNendor on a mutually agreed date and time.
18. Assienment: ContractorNendor shall not assign this Purchase Order without written consent of Owner. Owner may unilaterally
assign its rights under this Purchase Order upon reasonable notice to ContractorNendor.
19. Waiver: Either parry's failure to insist in any one or more instances,upon the strict performance of any provision hereof or to
exercise any right hereunder shall not be deemed to be a waiver or relinquishment of the future performance of any such provision or
the future exercise of such right, but the obligation of ContractorNendor and Owner with respect to such future performance shall
continue in full force and effect.
20. Controlling Law, Severability: The validly of this Purchase Order or any of its provisions and the sufficiency of any
performance thereunder shall be determined under the laws of Illinois. Venue shall be in McHenry County, Illinois. The Owner is
entitled to recover its reasonable attorneys' fees incurred in enforcing the terms of this Purchase Order. If any provision or
requirement of this Purchase Order is declared or found to be unenforceable that balance of this Purchase Order shall be interpreted
and enforced as if the unenforceable provision or requirement was never a part hereof.
21. Arbitration: Claims, disputes or other matters in question between the parties arising out of or relating to the Work under this
Purchase Order or breach thereof shall be subject to and decided by Arbitration in accordance with the American Arbitration
Association Construction Industry's Arbitration Rules. Arbitration shall take place at City of McHenry City Hall.
CONTRACTOR/VENDOR:
Date
5
l'./
J
tT
LANGTON
GRC UPt
FuH Sa n•tcx Latldu-apr and Comtructi n
815-338-2030
2019-2020 City of McHenry Cul-De Sac Snow Removal
Supplemental Conditions
BILLING
All invoices are due within thirty(30)days of the date of invoice.For any amount owed fifteen(15)days past the due
date,the Owner agrees to pay LSSI a finance charge of 1.75%per month or 21%per year.If the Owners account is
past due,LSSI may without notice,suspend its obligation to perform Services until LSSI receives all amounts past due
and owing.During the period of such suspension,the Owner agrees and understands that LSSI will not be liable for any
costs or damages, including but not limited to consequential damages,to the Owner or any other party that may arise
from or be related to such a suspension of Services. The Owner also agrees to pay any expenses incurred by LSSI in
collecting amount due,including court costs,all reasonable attorneys'fees and all other reasonable costs of collection.
DESCRIPTION OF SERVICE
LSSI,an independent contractor,will provide Snow and Ice Management to the Owner's Property,subject to the terms
and conditions described in this agreement and the Owner agrees to provide LSSI with access to the Property to
perform these services:
SNOW AND ICE MANAGEMENT SERVICES: LSSI will provide the following Snow and Ice
anagement Services (Services) on the Property accor mg to the terms and conditions described in this
Agreement:
i.LSSI will clear snow& ice accumulations from roadways(routes)at locations determined by the
Village after two(2)inch of snow accumulation in most cases or when dispatched by the Village.
When snow & ice removal begins, roadways will be plowed and cleared to bare pavement
conditions.This process will complete what is to be termed a"plowing occurrence".
ii.After LSSI clears the roadways of snow by plowing, LSSI will Not be responsible for applying
deicing materials.
iii. LSSI will not apply deicing material.
iv. LSSI is not responsible for plowing, clearing or deicing areas where cars are parked. LSSI will
make reasonable efforts to clear parking areas between and around parked cars.
V.LSSI will do its best to push snow off the paved areas using snow plows.In the case where snow
has caused the loss of parking space or accumulated snow has encroached into the paved areas,
LSSI,when requested,will provide snow relocation services based upon our Hourly Service Rates.
These services will be provided on a first call/first serve basis and only after LSSI has completed its
normal plowing and deicing operations.
vi. During periods of Severe Weather Conditions(see Section 5)it may/will be necessary to provide
multiple plowing operations to remove excess accumulations.
Page 1
B. SNOW HAULING AND RELOCATION SERVICES: Excluded from these Snow and Ice
Management Services is hauling or relocating snow within the Property or off of the Property and use of
loaders to pile and perform additional pushing during or after successive storms.LSSI must be authorized by
the Owner to provide these additional services which will be provided at the Hourly Service Rates below.
C. HOURLY SERVICE AND MATERIAL RATES: LSSI will perform Hourly Services as described
above and when applicable based upon the following rate schedule:
TOTAL RETAINER DISCUSSED$15,211.16
Retainer will be due in full by March 1 n 2020 unless total invoiced amount has exceeded total retainer amount
of$15,211.16.
Per Push Rates:
Al)2-5"=$2,173.01
Al)5-9"=$3,259.56
Due to us picking this extra route up from The City of McHenry late in the season Langton Group is
concerned about being held to the completion timelines laid out in the bid package.We will do our best
to complete these in a timely manner but cannot be held to the cycle completion times from the bid
package for Route Al.
INITIAL TO ACCEPT SECTION C AND RETAINER
Pickup Truck with an minimum 8'blade $120 per hour
1 Ton Dump Truck 120 per hour
30 Yard Semi Dump Truck 245 per hour
12-14 Yard Dump Truck 187.50 per hour
1 Yard Skid Steer Loader 120 per hour
2 Yard Front End Loader 218 per hour
3 Yard Front End Loader 272 per hour
ATV With Plow 92 per hour
Snow Blower With Operator 87 per hour
Laborer With Shovel 72 per hour
Sidewalk Ice Melt Applied 38 per bag
Bulk Rock Salt Applied 225 per ton
Lowboy Transportation Fee varies per occurrence
The above rates are portal to portal,including lowboy transportation fee to move equipment to and from a location.
SEVERE AND UNUSUAL WEATHER CONDITIONS LSSI and Owner
agree that Severe Weather Conditions are defined as follows:
A. SEVERE WEATHER DEFINITION: Severe Weather shall be defined as anyone or a combination of
the following.8"of snowfall or more within a 24 hour period(Blizzard),as measured by NOAA;a period of
high winds accompanied by blowing and drifting snow; an accumulation of freezing rain or ice, a period
when air temperatures or wind chill temperatures are below 10 degrees Fahrenheit;or when the duration of
the same storm exceeds 24 hours.
B.BLIZZARD FEE:NOT APPLICABLE
C.DRIFTING SNOW: Clearing of drifted snow on days without snowfall or clearing of drifted snow after
24 hours from when the snow began will be invoiced at our Hourly Rates as detailed in Section 4.Clearing of
drifted snow will only be completed on a first call/first serve basis upon authorization from the Owner.
D.ICE CONTROL:Ice control for the following situations will be invoiced at the Hourly Rates as detailed
in Section 4: Severe icing from accumulations of snow,or from compacted snow,or from freezing rain or
from the melting of accumulations from roofs or downspout runoff,or melting from stockpiled snow,or ice
buildups requiring hand labor to chip the ice.
E.POTENTIAL SALT SHORTAGE:Due to salt shortages from the salt suppliers,potential imposed salt
rationings and priority given to municipalities,LSSI cannot guarantee and cannot be held responsible for the
availability of deicing materials to be used for ice control or for any consequential damages because of a
shortage.
Page 2
LIMITATION OF LIABILITY.PROPERTY DAMAGE AND TURF REPAIR PROVISIONS
LSSI and Owner agree that LSSI will not be liable to owner for any damage to Owner's Property, personal
injuries or other liability arising out of acts outside of LSSI's control including but not limited to vandalism,
flood, fire, hail, rain, snow freezing, lack of salt availability or other natural causes or acts of persons other than
LSSI's employees or agents.LSSI shall not be held responsible or liable for any accidents resulting in injuries due to
slips or falls on Owner's Property for any person except employees or agents of LSSI when injuries occurred while
providing services to the Owner's Property.
LSSI will exercise reasonable care to avoid damage to pavement,curbs,trees and shrubs.Prior to the start of the snow
season,the Owner agrees to document the existing conditions of the Property and will have LSSI review and sign off
on those existing conditions or LSSI will not be responsible for any assumed damages.LSSI and the Owner agree that
LSSI shall not be responsible for:(a)damage to sidewalks,curbs,sod,or other plant materials due to the application of
salt,calcium chloride or other de-icing agents;(b)damage done by plowing blade to concrete,asphalt or other surfaces
to be plowed; (c) damage to existing landscape caused by the piling of snow; (d) damage to items that are
snow-covered or not visible; (e) damage caused by equipment when tree, shrub and sidewalk areas are not
reasonably delineated due to snow accumulation; (f) damage to vehicles, other than the contractor's equipment and
vehicles, due to icy conditions, unless directly damaged by the contractor's equipment or vehicles; (g) damage or
loss resulting from melting snow and refreezing conditions;(h)water damage caused by melting snow or ice.
In the event that LSSI damages any turf by snow plowing,pushing or loading snow,LSSI will re-seed the damaged turf
in the spring following completion of the Snow and Ice Management Services and Owner will provide watering if
needed.
The Owner will report in writing any property damage caused by LSSI within forty-eight(48)hours of its occurrence.
LSSI will repair any timely and properly reported property damage in the spring season following completion of the
Snow and Ice Maintenance Services season in which the property damage occurred.Notwithstanding anything herein to
the contrary,LSSI will have no obligation,and the Owner waives any damages for,any property damage not timely and
properly reported.
PHOTO RELEASE
LSSI and the Owner agree:LSSI has the right to photograph the Property on which services are provided;these images
are products of LSSI's work and remain the property of LSSI in perpetuity;LSSI reserves its common law copyrights
and other property rights to these images;LSSI has the right to publish,and/or use images of the Property in whole or
in part, for promotion and advertising, and other specific LSSI uses such as: an awards competition, LSSI website,
recruiting,marketing brochures,magazine or newspaper articles and any other lawful purpose whatsoever.
MISCELLANEOUS PROVISIONS
This proposal is based on the average daily price for diesel fuel being less than$4.00 per gallon as determined by the
Department of Energy("DOE")National Mid-West Average Price of Fuel. (This information is updated and available
after 4:00pm each Monday on the DOE website at http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp)If fuel rates go
above$4.00 per gallon,there will be a 1%increase to the contract;if rates go above$4.50 per gallon,there will be a 2%
increase to the contract;if fuel rates go above$5.00 per gallon,there will be a 3%increase to the contract.
The pricing of deicing application materials is subject to change during the duration of the contract term due to the
market adjustments to the cost of materials.LSSI reserves the right to re-visit this pricing annually with the owner if the
pricing of deicing application materials increases by 5%over the estimated costs on or after November 1 st of each
season.
Langton Snow Solutions,Inc.Emereencv Contact Info:
Office:---------------------------------(815)338-2630
Fax:------------------------------------(815)338-2634
Dispatch(Tony Schanna Jr.):------ (815)209-4638
Owner Joe Langton):---- (847)980-1269
Owner John Langton):-- (847)612-5279
Operations (Tanner Lindell)---(815)980-9931
OPERATIONAL INFORMATION
Snow and Ice Removal Operations will be 24 hours a day 7 days a week and including Holidays.
Page 13
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McHenry Recreation Center
3636 Municipal Drive
McHenry, Illinois 60050
McHenr Phone: (815) 363-2160
t'-*p s+... ." - ,,.. ... l Fax: (815) 363-3119
www.ci.mchenry.il.us/park recreation
CONSENT AGENDA SUPPLEMENT
DATE: December 16, 2019
TO:Mayor and City Council
FROM: Bill Hobson, Director of Parks and Recreation
RE:McHenry ShamRocks the Fox St. Patrick's Day Festival
ATTACHMENTS: Event Layout
Parade Map
AGENDA ITEM SUMMARY: Authorization to host the McHenry ShamRocks the Fox event to
include 1)temporary use permit to allow an event tent at 1202 Riverside Drive (Miller Point) and
live music on Saturday 3/14 and Sunday 3/15; 2) special event liquor license for the sale of beer,
wine and malt beverages; 3) permit open carry of alcoholic beverages in plastic cups throughout
Green Street and Riverside Drive areas; 4) closure of certain sections of Kane Ave, Green Street
Pearl Street, Riverside Drive, Broad Street, Park Street and Court Street from 11:45 AM to
approximately 1:00 PM for the St. Patrick's Day Parade; 5) closure of Pearl Street from Riverside
Drive to River Road from 10:00 AM to 1:30 PM during the dyeing of the Fox River and the parade;
and, 6) Tourism Fund budget amendment not to exceed $10,000.
BACKGROUND:
This city has partnered with local service organizations for a several years for the 5K "Shamrock
Shuffle" and a St. Patrick's Day Parade. The Kiwanis Club Shamrock Shuffle begins and ends at
East Campus High School and has kicked off the day at 7am,typically lasting 2 hours. The parade
is organized by the Rotary Club and the Downtown Business Association. For the last few years,
the parade has been staged at East Campus and stepped off at 1pm. The parade heads north on
Green Street turning east on Pearl Street, north on Riverside Drive, wraps around and returns to
Veterans Memorial Park via Broad Street. This year,the parade is proposed to begin at 12:00 PM
and with a proposed route change beginning the parade on Kane Ave to allow for additional
parking at East Campus and sufficient space to organize and line up the parade.
The City is the only community in McHenry County that offers a St. Patrick's Day Parade. The
parade has gained the city some notoriety, which has led to the opportunity for expanding the
event and accomplishing the city's goal of increasing awareness of our downtown and utilization
of the Fox River.
The city is proposing to partner with Blarney Island to dye the Fox River green on St. Patrick's Day
between Weber Park and the Route 120 Bridge. The only other river dyeing event occurs in the
City of Chicago. This opportunity lends itself to creating a festival atmosphere throughout the
Green Street and Riverside Drive areas and for the city to create an epicenter for the event at
Miller Point. "Event central" would include a large tent with heaters, bar, sound, stage and
lighting. Live music would be in the tent on Saturday 3/14 from 11am — 11pm and on Sunday
3/15 from 12—6:30pm. Alcohol service of beer, wine and malt beverages would be available on
Saturday from 11am to 10:45pm and on Sunday from 12pm to 6:45pm.
A key element of the event is the open carry of alcohol in the areas delineated by the Riverwalk
to the south, Pearl Street to the north, Green Street between Waukegan Road and Pearl Street,
and River Road between Pearl/Lincoln and Route 120 to the west. Proposed hours for open carry
are 11:00 AM to 6:00 PM on Saturday and 12:00 PM to 6:00 PM on Sunday. This would allow the
flow of event patrons throughout downtown, encouraging businesses to have specials similar to
the annual Taste of McHenry currently sponsored by the Downtown Business Association three
times each year.
ANALYSIS:
Identified in the Strategic Plan completed bythe City in the fall of 2013,were seven opportunities,
two of which correlate to this proposed event - Utilization of the Fox River as a marketing tool
and Public Event Coordination. This event provides the City with the opportunity to draw visitors
to the downtown area and businesses.
Building on solid partnerships and strong events, the City can become a weekend destination
through the introduction of this event. McHenry will become a destination that people will
return to repeatedly to visit our restaurants and shops. Often the challenge is to get visitors here
for the first time. Staff believes that "McHenry ShamRocks the Fox" is an event accomplish this.
Although the City would be the lead organizer for the event, the development of partnerships
that has already begun and taking advantage of each partner's strengths,will lead to a successful
event.
The proposed event schedule is as follows:
McHenry ShamRocks the Fox"
Event Framework
Saturday March 141": 7:OOam to 11:OOpm
Shamrock Shuffle—7:00 to 9:OOam
Fox River Dyeing— 10:OOam
Viewing at Weber Park, Pearl Street Bridge and Miller Point
Parade— 12:OOpm
Live Music— 11am to 11pm
Alcohol Sales— 11am to 10:45pm
Open Carry throughout downtown from 11am to 6pm to encourage flow
to other venues downtown
Sunday March 151h: 12:OOpm —6:OOpm
Live Music— 12:OOpm to 6:45pm
Alcohol Sales— 12:OOpm to 6:45pm
Open Carry throughout downtown from 12:OOpm to 6:OOpm to
encourage flow to other venues downtown
Fireworks show on the point—7:OOpm
The parameters for this event were established utilizing standards from city partnerships in other
events. Event times mirror those for Fiesta Days and Blues, Brews and BB(Xs, as does the concept
of the alcohol service. In this instance, instead of volunteers serving, staff from Blarney Island
who are trained and BASSET certified would staff the bar. Mr. Rob Hardman, owner of Blarney
Island would also organize the live music in the tent and the City has reached out to local
restaurants to identify food vendors in the tent.
Open carry of alcoholic beverages is a key component to the success of the event. It takes
advantage of a concept the city currently allows for the Sidewalk Sales portion of Fiesta Days and
the Chamber of Commerce's popular Downtown Uncorked Wine Walk. The goal of allowing
patrons to move throughout the downtown business area during the hours of 11:OOpm to
6:OOpm on Saturday and 12:00 PM —6:00 PM on Sunday is to create a flow that introduces new
visitors to the many great businesses located in the downtown areas. It encourages businesses
to have specials that could be advertised in the main event tent and create new partnerships.
Police Chief Birk has been consulted and is supportive of this concept. Officers would be
positioned at key intersections to ensure vehicular and pedestrian safety throughout the
downtown areas.
Staff has discussed the event with multiple downtown businesses with the message that the city
is not looking to detract from their St. Patrick's Day offerings or compete with them in anyway.
The goal is to partner with businesses wherever possible to create a long-lasting and sustainable
event that takes advantage of the Fox River and the Riverwalk and downtown areas, and an event
that will draw many new visitors to McHenry. To be clear, the city is not looking to profit from
this event, only to cover costs and bring new visitors to McHenry.
There were over$50,000 in expenses to host the event in 2019 however the event was extremely
successful with a bottom line profit after all expenses of over $8,000. This money was retuned
to the Tourism Fund. With the impact of last year's event and timing, it would be hopeful to
garner more sponsorships for the event and its aspects this year. The one cost that was
significant new introduction to the event this year was a small scale fireworks show to conclude
the event on Sunday. The 15 minute show costs are once again estimated around $10,000. With
additional sponsorship opportunities and surplus from last year's event, staff if not anticipating
to run the event at a deficit including the fireworks show, however a budget amendment to
include $10,000 from the Tourism Fund is requested in the event of overruns.
As a note, the street closures associated with the parade are typical. One exception is the
additional closure of what amounts to the Pearl Street Bridge for spectators to view the dyeing
of the river as safely as possible.
In summary, this is a rare event opportunities. Event planning has brought together many local
groups and partners, including the McHenry Area Chamber of Commerce, the McHenry
Downtown Business Association, the McHenry Kiwanis Club, the McHenry Rotary Club, Visit
McHenry County and several individuals who want to help and be a part of something special
that will be built on in future years. This event can make McHenry a destination in Northern
Illinois on St. Patrick's Day and other days via car or boat throughout the year.
RECOMMENDATION:
Therefore, if Council concurs, it is recommended that a motion be considered to approve: 1)
temporary use permit to allow an event tent at 1202 Riverside Drive (Miller Point) with live
music on Saturday 3/14 from 11am to 11pm and Sunday 3/15 from 12pm to 6:45pm; 2) special
event liquor license to permit the sale of beer, wine and malt beverages at Miller Point on
Saturday 3/14 from 11am— 10:45pm and Sunday 3/15 from 12pm to 6:30pm; 3) open carry of
alcoholic beverages in plastic cups throughout Green Street and Riverside Drive Areas on 3/14
from 11pm—6pm and on 3/15 from 12pm—6pm;4)street closures of Kane Avenue from Center
to Green, Green Street from Kane Avenue to Pearl Street, Pearl Street from Green Street to
Riverside Drive, and on Riverside Drive from Pearl Street to Broad Street and Broad Street to
Court Street in conjunction with the St. Patrick's Day Parade from 11:45 am to approximately
1pm); 5) closure of Pearl Street from Riverside Drive to River Road from 10 am to 1pm to allow
pedestrians to view the river dyeing; and, 6) budget amendment in the Tourism Fund for an
amount not to exceed $10,000.
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ry McHenry Recreation Center
3636 Municipal Drive
McHenry, Illinois 60050
McHenrv,Phone: (815) 363-2160
w; „ -, ,-.1 Fax: (815) 363-3119
www.ci.mchenry.il.us/park—recreation
CONSENT AGENDA SUPPLEMENT
DATE: December 16, 2019
TO: Mayor and City Council
FROM: Bill Hobson, Director of Parks and Recreation
RE: McHenry Area Chamber of Commerce 2020 Fiesta Days
ATT: Schedule of Events
Sign Location List
Agenda Item Summary. Attached for the City Council's review and consideration is the
schedule of events for the McHenry Area Chamber of Commerce 72nd Annual Fiesta Days. The
Chamber is requesting permission to use Petersen and Veterans Memorial Parks; special event
liquor license to sell beer and wine in Petersen Park; installation of temporary advertising signs
in designated right-of-ways; and use of the Parks, Police, and Public Works departments to
provide various services for the events.
Background. Fiesta Days events will be held at various times beginning Thursday, July 9,
culminating with the parade on Sunday, July 19, as presented in the attached schedule of events.
Conditioned upon approval of the Fiesta Days schedule, the chamber is requesting a special
event liquor license to serve beer and wine in Petersen Park on Friday, July 10, Saturday, July
11, Sunday, July 12, and in Veterans Memorial Park on Thursday, July 16. Every effort will be
made by the chamber to ensure that underage visitors will not be served alcoholic beverages
and I.D. wristbands will be required to purchase alcohol.
One new element last year that was extremely well received at year's event was the bourbon
tasting on Thursday. As Council will recall, the parameters of the tasting are restrictive;
affording each participant in the tasting a limited number of 1/4oz tastings for a set price and no
additional beyond the limit. This is commonly seen with wine tastings. The Chamber of
Commerce is once again requesting to host this style event in Petersen Park on Thursday July
9th.
The City of McHenry is dedicated to providing its citizens,businesses,and visitors with the highest quality ofprograms
and services in a customer-oriented,efficient,and fiscally responsible manner.
Beer/Wine Sales The standardize timeframe to service beer and wine will be observed. Beer and
wine ticket sales will cease one-half hour prior to close of the event and service will be
prohibited 15-minutes prior to close of the event as depicted in the following schedule.
Petersen Park Veterans Memorial Park
Thursday, July 9 6:00 PM - 9:45 PM Thursday, July 16 5:00 PM—9:15 PM
Friday, July 10 5:00 PM - 10:45 PM
Saturday, July 11 3:30 PM - 10:45 PM
Sunday, July 12 11:00 AM - 5:45 PM
Park Use/City Services Fees. In 2013, the city developed a new fee structure with the Chamber
regarding the Music Fest weekend at Petersen Park. The fee structure requires the Chamber to
pay 50% of city manpower costs associated with the Music Fest schedule. In 2017, the Council
approved the addition of Thursday night to the Music Fest lineup with the same fee structure.
Requests or staffing requirements in addition to the usual and customary services will be paid at
100%.
Temporary AdvertisingSigns.igns. As in past years, the Chamber is requesting permission to place
24" round signs advertising Fiesta Days in right-of-ways in front of local sponsor businesses.
Signs will be installed the week before the event and removed the following day. A list of
proposed sign locations is attached.
Analysis. The Chamber organizes and funds a number of activities on the second weekend of the
festival including the Children's Ice Cream Social, Art in the Park, and the annual parade, which
has a budget of nearly $8,000.
Fiesta Days is one of the biggest annual events in McHenry County. It offers something for
everyone and draws thousands of visitors to the city. Fiesta Days would not be possible without
the cooperation of the Chamber of Commerce, countless volunteers, and the City of McHenry.
Recommendation. If City Council concurs then a motion should be considered to a) accept
the McHenry Area Chamber of Commerce's 72nd annual Fiesta Days event schedule; b)
use of Parks, Police, and Public Works for various services related to the event at 50%of
the actual cost; c) approve the special event liquor license; and d) approve placement of
temporary advertising signs as presented.
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December 2, 2019
Mayor Wayne Jett& City Council Members
City of McHenry
333 S. Green Street
McHenry, IL 60050
Dear Mayor Jett& City Council Members:
On behalf of the McHenry Area Chamber of Commerce Board of Directors and Fiesta
Days Committee, we thank you for allowing us to present Fiesta Days 2020. Please note that in
addition to the schedule attached, this letter seeks approval for sign locations indicated.
We appreciate the continued support that we receive from the City of McHenry and we
look forward to a successful Fiesta Days.
Yours truly,
Cag
Kay Rial Bates
President
TO: Mayor Wayne Jett, Alderman& City Council
FROM: Kay Rial Bates,President&Fiesta Days Committee
DATE: December 2, 2019
SUBJ: 2020 Fiesta Days Signs
On behalf of the McHenry Area Chamber of Commerce Board of Directors and Fiesta Days Committee,
we are requesting approval to put up signs at the following establishments:
Signs would be round 2'x2' in size and would read"Taste us at Fiesta Days". These would be put up July
2nd and taken down July 201
1. I"United Methodist Church
2. 31 North Banquet& Conference Center
3. Plum Garden(would be attached to his building)
4. Riverside Chocolate Factory
5. Old Town Pizza
Signs would be round 2'x2' in size and would read "Proud Sponsor of Fiesta Days July 9th- 19th
1. Gary Lang Auto Group (2) 13. Black Diamond(RT. 31)
2. McHenry Bank& Trust(both locations)14. Meyer Material Company
3. First Midwest Bank(2 locations) 15. Advocate Good Shepherd Clinic
4. Home State Bank(both locations on rt. 31) 16. Chas. Herdrich& Son
5. Blackhawk Bank 17. Medela
6. McHenry Harley Davidson Shop (2) 18. Mastercoil Spring
7. Mercy Health Care 19. Century 21
8. Northwestern Medicine (Rt 31 and Bull Valley Road) 20. Adams Auto Body
9. Meijer(McCullom Lake Road and Rt 31) 21. Brake Parts Inc.
10. Better Homes and Gardens 22. Home Depot
11. Worldwide Traveler, Ltd. 23. Petersen Park
12. Jett's Heating and Air 24. BMO Harris Bank
13. Sam's Liquors 25 Verlo
14. Fabrik 26. Fox Point
These sign locations may change as sponsors change, however we anticipate all of the above will
participate. The signs are promoting Fiesta Days, a community-wide event and not their business.
Please let me know if this meets with your approval and the next step we need to take.
Thank you for you consideration!
Mc en y
Grand Festival Sponsor
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2020 Fiesta Days Entertainment Schedule
Thursday,July 9- Wednesday,July 15
MUSIC FEST(6:00-10:00PM)AT PETERSEN PARK Open Track Meet,5:00-8pm at McCracken Field
Cask and Barrel
Admission: $40 Thursday,July 16
Ticketed event with maximum 400 in attendance CONCERT IN THE PARK(5:00-9:30PM)AT VETERAN'S
Food—Beer—Great American Amusements($25 unlimited ride MEMORIAL PARK
wristband)
Food—Beer
H'doeu'vres
Parade Marshal&Sponsor Ceremony: 7:00-7:30 pm
Entertainment:7
Friday,July 10
MUSIC FEST(5:00-11:00PM)AT PETERSEN PARK Saturday,July 18
Admission: $5 adults, 10&under free
Fiesta Days Art and Street Fair 9:00-4:00
Food—Beer—Great American Amusements
Student Art Show
Performance Times:
Live Art Show 10am-3pm(McHenry Riverwalk)5:30 pm:TBA
Outside Sidewalk Sales: 8:00-4:00 pm all over town
7:00 pm:TBA 39th ANNUAL ARTS&CRAFTS IN THE PARK(9:30AM-
4:OOPM)AT VETERAN'S MEMORIAL PARK
Saturday,July 11
MUSIC FEST(5PM-I 1:00PM)AT PETERSEN PARK Sunday,July 19
Ticket Prices: $10/20 10&under free PARADE ACTIVITIES(11:00-5:OOPM)AT VETERAN'S
Food—Beer—Great American Amusements MEMORIAL PARK
McHenry River Run:8:00 am at Veteran's Memorial Park Concessions: 11:00-5:00 pm
Performance Times: Parade: 1:30 pm(Route:Main St. to Green St. to Pearl St. to Riverside
5:00 pm:TBA Dr. to Broad St.)
7:00 pm:TBA Post Parade:
9:00 pm:National Act Student Art Show Awards
Sunday,July 12
MUSIC FEST"BEACH BASH DAY"(I 1:00AM—10:30PM)
AT PETERSEN PARK
Admission-FREE eiierFood—Beer--Great American Amusements($25 unlimited ride
wristbands-until 10:30pm)
35th Annual Car Show: 9:00-3:00 pm
The Chapel Worship Service: 10:00 am- 11:15 am
Beach Open I:OOpm
Events: The Chapel Children Activities 12:00 pm-6:00 pm
Bags Tournament,Family Events 2:00 pm-4:30 pm
Princess Sing-a-long;Moonwalks—Games—Finger Printing—Fire
Safety House
Fireworks 9:30 pm
Performance Times:
12:00pm:TBA
2:15 pm: TBA
4:15 pm: TBA
Monday,July 13—Big Wheel Race
5:00 PM-DARK)AT PETERSEN PARK
Big Wheel Race:5:30 pm check-in;6:30 pm race begins
City of McHenry Council
Meeting Minutes ter
12.2.19 ti
McHenr ,
MINUTES
REGULAR CITY COUNCIL MEETING
City Council Chambers, 333 S Green Street
Monday, December 2, 2019
Call to Order: The City Council of the City of McHenry, Illinois, met in regular session on
Monday, December 2, 2019, at 7:00 p.m. in the McHenry City Council Chambers, 333 S.
Green Street, McHenry, IL.
Roll Call: Mayor Jett called the roll call.
Members present: Alderman Santi, Alderman Glab, Alderman Schaefer, Alderman Mihevc,
Alderman Devine, Alderwoman Miller-absent, and Mayor Jett. Others present.. Attorney
McArdle, Administrator Morefield, Interim Director of Public Works Strange, Director of
Community Development Polerecky, Finance Director Lynch, Director of Parks and Recreation
Hobson, Director of Economic Development Martin, and Chief of Police Birk, and City Clerk
Ramel.
Pledge of Allegiance: Mayor Jett led the Pledge of Allegiance.
Public Comments: none
Consent Agenda: Motion to approve the following Consent Agenda Items.
A. 2019 Codified City Code of McHenry, Illinois;
B. Pay application request #29 to Williams Brothers Construction, Inc. for the McHenry
Wastewater Treatment Plant Improvements in the amount of $289,149.44;
E. November 18, 2019 City Council Meeting Minutes;
F. Issuance of Checks in the amount of $244,647.76.
A motion was made by Alderman Santi and seconded by Alderman Glab to approve
Consent Agenda items as presented. Roll Call: Vote: 5-ayes: Alderman Santi, Alderman
Schaefer, Alderman Glab, Alderman Mihevc, Alderman Devine, Alderwoman Miller-absent. 0-
nays, 0-abstained. Motion carried.
Consent Agenda: Motion to approve the following Consent Agenda Items:
C. Ordinance authorizing an Intergovernmental Agreement for General Public Dial-A-Ride
Transit Services in 2020, (Agenda Item pulled by Alderman Glab)
The reason Alderman Glab wanted to pull this item was wanted to know if this was regarding
a door pick up service and was informed it is curb to curb. That was the main question he had
wanted to know if the service was lengthened to pick up people at the curb.
City of McHenry Council
Meeting Minutes
12.2.19
A motion was made by Alderman Glab and seconded by Alderman Devine to approve
Consent Agenda items as presented. Roll Call: Vote: 5-ayes: Alderman Santi, Alderman
Schaefer, Alderman Glab, Alderman Mihevc, Alderman Devine, Alderwoman Miller-absent.
0-nays, 0-abstained. Motion carried.
Consent Agenda: Motion to approve the following Consent Agenda Items:
D. 2020 McHenry County Council of Mayors Surface Transportation Program call for
projects locations; Alderman Schaefer pulled this Consent Agenda Item
Alderman Schaefer questioned if Green Street from Elm to Washington would be on the list
and if it can be completed all the way, wondering if it may have to do with volume of traffic.
That is an issue; the volume of traffic on that street, as confirmed Director of Public Works
Strange. If The Council wanted to consider other streets for the resurfacing he would like to
see Pearl to Washington moved up on the list, Alderman Santi agreed with this discussion.
Director of Public Works Strange stated that he would do further follow up on this to see if
project limits could be extended.
A motion was made by Alderman Santi and seconded by Alderman Schaefer to approve
Consent Agenda items as presented. Roll Call: Vote: 5-ayes: Alderman Santi, Alderman
Schaefer, Alderman Glab, Alderman Mihevc, Alderman Devine, Alderwoman Miller-absent.
0-nays, 0-abstained. Motion carried.
Individual Action Item Agenda: Motion to approve the following Individual Action Item:
A. Motion to approve an Ordinance Amending the McHenry Municipal Code with Respect
to Water and Sewer Capital Development Fees.
Director of Community Development Polerecky explained the attached fee structure,and
Director of Public Works Strange stated they are available to answer any questions. There was
also no public comment. Alderman Santi stated he did spend some time understanding the
new fees starting on Jan 25th, his point being if there is approval tonight has there been
discussion regarding the empty lots, the intent is to have them built on. If paid under the
reduced rate before Jan 25th they have an advantage regarding the fee. Permit before Jan 24th
then they have a year to build on it.
A motion was made by Alderman Santi and seconded by Alderman Mihevc to approve
individual agenda items as presented. Roll Call: Vote: 5-ayes: Alderman Santi, Alderman
Schaefer, Alderman Glab, Alderman Mihevc, Alderman Devine, Alderwoman Miller-absent. 0-
nays, 0-abstained. Motion carried.
City of McHenry Council
Meeting Minutes
12.2.19
Individual Action Item Agenda: Motion to approve the following Individual Action Item:
B. Motion to approve an Ordinance Amending the McHenry Municipal Code with Respect
to Cash Contributions for Schools, Park, Fire Protection District, and Library Purposes
as Condition of Approval for Residential Building Permit.
Director of Community Development Polerecky explained that the fees were reduced by 50%
for one year to attract development. $107,586k to $80K reduced per acer. Alderman Glab
wanted to know how the figures were determined. These are impact fees, nothing to do with
water or sewer. Explanation on how the fees are determined were explained. Discussion went
on for a while regarding this ordinance. This ordinance is reviewed every three years, as
questioned by Alderman Santi. It was also agreed that this ordinance is a starting point for
future review.
A motion was made by Alderman Schaefer and seconded by Alderman Mihevc to
approve individual agenda items as presented. Roll Call: Vote: 5-ayes: Alderman Santi,
Alderman Schaefer, Alderman Glab, Alderman Mihevc, Alderman Devine, Alderwoman Miller-
absent. 0-nays, 0-abstained. Motion carried.
Discussion Items: None
Staff Reports: Administrator Morefield stated there will be a print out of invitations; a week
from Wednesday is the holiday party at country club. A week from Friday the 13t" is the holiday
breakfast.
Director of Public Works Strange, stated that next week there will be a lighting equipment
update.
Mayor's Report: none
City Council Comments: Alderman Glab commented about fees to help move forward.
Alderman Santi- would like an update on two or three service station areas, if something
could be sent out that would be great.
Adjourn:
A motion was made Alderman Santi and seconded by Alderman Glab to adjourn the
meeting at 7:40 p.m. Roll Call: Vote: 5-ayes: Alderman Santi, Alderman Schaefer, Alderman
Glab, Alderman Mihevc, Alderman Devine, Alderwoman Miller-absent. 0-nays, 0-abstained.
Motion carried
City of McHenry Council
Meeting Minutes
12.2.19
X X
Mayor Wavne Jett City Clerk Trisha Ramel
4
100 100-03-6110
100 100-33-6110
100 100-45-6110
510 510-31-6110
510 510-32-6110
510 510-35-6110
100 100-41-3637
100 100-33-6110
100 100-33-6110
100 100-33-6110
510 510-35-6110
100 100-33-6110
100 100-03-5110
510 510-31-5110
510 510-32-5110
100 100-41-3637
100 100-22-3555
100 100-33-5110
100 100-33-5520
100 100-42-5510
100 100-44-5510
100 100-45-5510
100 100-46-5510
510 510-32-5510
510 510-31-5510
510 510-32-5510
100 100-33-5370
510 510-32-5370
620 620-00-5420
620 620-00-5420
740 740-00-5220
740 740-00-5220
740 740-00-5220
600 600-00-4310
100 100-04-5110
100 100-41-3637
100 100-03-5370
100 100-22-5370
100 100-33-5115
100 100-33-5370
100 100-33-6250
100 100-45-5370
510 510-31-5370
510 510-32-5380
510 510-32-6110
510 510-35-5370
100 100-03-5430
List of Bills Council Meeting 12-16-19
ACE HARDWARE, MCHENRY
ACE HARDWARE, MCHENRY
ACE HARDWARE, MCHENRY
ACE HARDWARE, MCHENRY
ACE HARDWARE, MCHENRY
ACE HARDWARE, MCHENRY
ARDON, ALMA
BAKER & SON CO, PETER
BAKER & SON CO, PETER
BAKER & SON CO, PETER
BAKER & SON CO, PETER
BAKER & SON CO, PETER
BAXTER & WOODMAN
BAXTER & WOODMAN
BAXTER & WOODMAN
BONILLA, VALENTINA
BUDRICK, DENNIS
CLEAN SWEEP
CONSTELLATION NEWENERGY INC
CONSTELLATION NEWENERGY INC
CONSTELLATION NEWENERGY INC
CONSTELLATION NEWENERGY INC
CONSTELLATION NEWENERGY INC
CONSTELLATION NEWENERGY INC
DIRECT ENERGY BUSINESS
DIRECT ENERGY BUSINESS
ED'S AUTOMOTIVEMIM'S MUFFLER SHOP
ED'S AUTOMOTIVEMIM'S MUFFLER SHOP
GREVE,AARON
GREVE,AARON
HRGREEN
HRGREEN
HRGREEN
IUOE - LOCAL 150
MUNICIPAL COLLECTION SERVICES INC
MYERS,LAURA
NAPA AUTO PARTS MPEC
NAPA AUTO PARTS MPEC
NAPA AUTO PARTS MPEC
NAPA AUTO PARTS MPEC
NAPA AUTO PARTS MPEC
NAPA AUTO PARTS MPEC
NAPA AUTO PARTS MPEC
NAPA AUTO PARTS MPEC
NAPA AUTO PARTS MPEC
NAPA AUTO PARTS MPEC
NorthwestBOCA
100 100-41-3636 SCHMIDT, LINDA
100 100-21-5110 STANARD & ASSOCIATES INC
100 100-01-5110 SYNCHRONOUS ENERGY SOLUTIONS, INC
510 510-32-5580 WINNEBAGO LANDFILL CO
100 100-01-5110 WORKPLACE SOLUTIONS
TOTAL
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/1612019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
12/16/2019
64.50
563.49
249.29
293.03
522.35
298.40
45.00
125.05
139.81
82.41
34.85
2327.83
2094.87
1047.44
1047.44
85.00
66.66
8855.00
27081.69
281.69
28.21
313.11
24.37
28.39
4950.08
14094.79
150.00
30.00
192.56
48.91
270.00
2146.00
1331.75
732.00
16.10
175.00
59.26
581.57
340.90
2056.95
155.40
293.14
1061.82
281.67
81.44
915.69
40.00
99.00
395.00
6450.00
1340.64
450.42
84439.97
Fund Summary
100 - GENERAL FUND 53690.72
510 - WATER/SEWER FUND 26028.03
600 - EMPLOYEE INSURANCE FUND 732.00
620 - INFORMATION TECHNOLOGY FUND 241.47
740 - RETAINED PERSONNEL ESCROW 3747.75
FUND TOTAL 84439.97
#2 List of Bills Council Meeting 12-16-19
100 100-22-6210
41MPRINT INC
12/16/2019
965.36
100 100-33-6950
ACRES GROUP
12/16/2019
300.00
100 100-33-5370
ADAMS ENTERPRISES INC, R A
12/16/2019
1063.97
100 100-33-5370
ALLDATA
12/16/2019
1500.00
100 100-45-5110
AMERICAN HEATING & COOLING
12/16/2019
2980.00
510 510-31-5370
AMERICAN HEATING & COOLING
12/16/2019
640.00
510 510-31-5370
AMERICAN HEATING & COOLING
12/16/2019
328.00
100 100-03-5120
AQUALAB WATER TREATMENT, INC
12/16/2019
1140.00
620 620-00-5110
AT&T
12/16/2019
1018.26
620 620-00-5110
AT&T
12/16/2019
2349.08
620 620-00-5320
AT&T
12/16/2019
566.21
100 100-22-5370
AUTO TECH CENTERS INC
12/16/2019
22.00
100 100-45-5370
AUTO TECH CENTERS INC
12/16/2019
347.22
100 100-45-5370
AUTO TECH CENTERS INC
12/16/2019
11.00
510 510-31-5110
BAXTER & WOODMAN
12/16/2019
365.00
100 100-01-5110
BRUCESKI'S MARINE CONSTRUCTION
12/16/2019
30000.00
400 400-00-6111
CABAY & COMPANY INC
12/16/2019
279.48
400 400-40-6110
CABAY & COMPANY INC
12/16/2019
435.00
620 620-00-6270
CDW GOVERNMENT INC
12/16/2019
31.46
620 620-00-6270
CDW GOVERNMENT INC
12/16/2019
272.20
100 100-03-5120
CENTURY SPRINGS
12/16/2019
59.98
100 100-03-5120
CENTURY SPRINGS
12/16/2019
59.98
100 100-45-6110
CINTAS
12/16/2019
90.73
400 400-00-6130
CINTAS
12/16/2019
85.83
620 620-00-5110
COMCAST CABLE
12/16/2019
164.85
510 510-32-5380
CRESCENT ELECTRIC SUPPLY CO
12/16/2019
173.88
100 100-33-6110
CRESCENT ELECTRIC SUPPLY CO
12/16/2019
46.67
510 510-32-5380
CUMMINS INC
12/16/2019
197.94
620 620-00-5110
CUSHING SYSTEMS INC
12/16/2019
9000.00
400 400-40-5375
DIRECT FITNESS SOLUTIONS
12/16/2019
726.60
620 620-00-6210
DOCUMENT IMAGING SERVICES, LLC
12/16/2019
495.00
510 510-32-6110
DREISILKER ELECTRIC MOTORS INC
12/16/2019
40.50
510 510-32-5380
DREISILKER ELECTRIC MOTORS INC
12/16/2019
202.50
100 100-45-6110
DURA WAX COMPANY INC, THE
12/16/2019
57.70
100 100-41-5330
EDESIGN CHICAGO
12/16/2019
487.50
100 100-41-6110
ELECTRONIC ENTRY SYSTEMS INC
12/16/2019
747.32
510 510-31-6110
FASTENAL
12/16/2019
126.00
100 100-33-6110
FISCHER BROS FRESH
12/16/2019
1260.00
510 510-35-6110
FISCHER BROS FRESH
12/16/2019
612.26
100 100-45-6110
FOXCROFT MEADOWS INC
12/16/2019
77.30
100 100-05-5110
FRONTLINE TECHNOLOGIES GROUP LLC
12/16/2019
2512.15
100 100-22-4510
GALLS LLC
12/16/2019
118.30
100 100-22-4510
GALLS LLC
12/16/2019
17.21
100 100-23-4510
GALLS LLC
12/16/2019
89.69
100 100-22-4510
GALLS LLC
12/16/2019
321.49
100 100-23-4510
GALLS LLC
12/16/2019
36.93
100 100-22-4510
GALLS LLC
12/16/2019
93.70
100 100-23-4510
GALLS LLC
12/16/2019
46.75
100 100-23-6110
GALLS LLC
12/16/2019
232.14
100 100-22-4510
GALLS LLC
12/16/2019
21.85
100 100-23-4510
GALLS LLC
12/16/2019
41.37
100 100-22-4510
GALLS LLC
12/16/2019
51.34
100 100-23-6110
GALLS LLC
12/16/2019
35.96
100 100-22-6110
GALLS LLC
12/16/2019
217.35
1,00 100-22-4510
GALLS LLC
12/16/2019
51.54
100 100-33-6110
GESKE AND SONS INC
12/16/2019
61.36
100 100-33-6110
GESKE AND SONS INC
12/16/2019
56.64
100 100-33-5115
GREAT LAKES FIRE & SAFETY EQUIPMENT CO
12/16/2019
245.00
100 100-33-5370
GUARDIAN MATERIAL HANDLING
12/16/2019
963.55
620 620-00-8300
HEARTLAND BUSINESS SYSTEMS, LLC
12/16/2019
2000.00
510 510-32-6110
HOMESTEAD ELECTRICAL CONTRACTING LLC
12/16/2019
2017.00
100100-41-5110
HRGREEN
12/16/2019
4872.00
100 100-46-5110
HUNTLEY PARK DISTRICT
12/16/2019
572.00
100 100-01-5110
IL SUBURBAN LLC CONSERVATION SERIES
12/16/2019
2580.00
100 100-01-5110
IL SUBURBAN LLC CONSERVATION SERIES
12/16/2019
1380.00
100 100-22-5430
ILLINOIS ASSOC OF CHIEFS OF POLICE
12/16/2019
57.00
100 100-33-5430
ILLINOIS PUBLIC WORKS MUTUAL AID NETWORK
12/16/2019
250.00
400 400-00-5110
INFANTE, ALFONSO
12/16/2019
500.00
100 100-33-5370
INTERSTATE BILLING SERVICE INC
12/16/2019
348.00
100 100-33-5370
INTERSTATE BILLING SERVICE INC
12/16/2019
767.64
100 100-33-5370
INTERSTATE BILLING SERVICE INC
12/16/2019
348.60
100 100-33-5370
INTERSTATE BILLING SERVICE INC
12/16/2019
662.39
100 100-33-5370
INTERSTATE BILLING SERVICE INC
12/16/2019
401.66
100 100-33-6115
KIMBALL MIDWEST
12/16/2019
446.53
100 100-33-6110
K-TECH SPECIALTY COATINGS, INC
12/16/2019
6627.04
510 510-35-6110
LAFARGE NORTH AMERICA
12/16/2019
98.56
100 100-22-5370
LANG AUTO GROUP, GARY
12/16/2019
119.88
100 100-33-5370
MCCANN INDUSTRIES INC
12/16/2019
34.92
510 510-32-5380
METROPOLITAN INDUSTRIES
12/16/2019
2083.38
510 510-35-6110
MID AMERICAN WATER OF WAUCONDA INC
12/16/2019
280A2
100 100-03-6110
MINUTEMAN PRESS OF MCH
12/16/2019
318.00
100 100-23-6110
MINUTEMAN PRESS OF MCH
12/16/2019
33.75
100 100-22-5320
MOTOROLA
12/16/2019
2453.00
100 100-45-5110
NATURESCAPE DESIGN INC
12/16/2019
315.00
100 100-22-5430
NORTH EAST MULTI -REGIONAL TRAINING INC
12/16/2019
255.00
100 100-45-6110
NORTHWEST ELECTRICAL SUPPLY CO INC
12/16/2019
86.76
100 100-05-5110
NORTHWESTERN MEDICINE OCC HEALTH
12/16/2019
480.00
100 100-05-5110
NORTHWESTERN MEDICINE OCC HEALTH
12/16/2019
11004.00
100 100-05-5110
NORTHWESTERN MEDICINE OCC HEALTH
12/16/2019
692.00
100 100-05-5110
NORTHWESTERN MEDICINE OCC HEALTH
12/16/2019
210.00
100 100-33-6290
OLSEN SAFETY EQUIPMENT CORP
12/16/2019
76.50
510 510-32-6110
PDC LABORATORIES INC
12/16/2019
60.00
510 510-32-6110
PDC LABORATORIES INC
12/16/2019
60.00
510 510-32-6110
PDC LABORATORIES INC
12/16/2019
60.00
510 510-32-6110
PDC LABORATORIES INC
12/16/2019
60.00
510 510-32-6110
PDC LABORATORIES INC
12/16/2019
60.00
510 510-32-6110
PDC LABORATORIES INC
12/16/2019
60.00
100 100-33-6250
PETROCHOICE LLC
12/16/2019
4905.69
100 100-22-6250
PETROCHOICE LLC
12/16/2019
2985.67
100 100-22-6250
PETROCHOICE LLC
12/16/2019
1863.23
510 510-35-6250
PETROCHOICE LLC
12/16/2019
400.66
510 510-32-6250
PETROCHOICE LLC
12/16/2019
172.52
100 100-33-6250
PETROCHOICE LLC
12/16/2019
581.77
510 510-35-6250
PETROCHOICE LLC
12/16/2019
60.06
510 510-32-6250
PETROCHOICE LLC
12/16/2019
152.01
100 100-33-6250
PETROCHOICE LLC
12/16/2019
333.44
100 100-22-6210
PETTIBONE & CO, P F
12/16/2019
832.00
620 620-00-8300
PORTER LEE CORPORATION
12/16/2019
675.00
100 100-22-5110
PROSHRED SECURITY
12/16/2019
53.00
510 510-35-6110
RNOW INC
12/16/2019
221.13
400 400-00-5210
SHAW MEDIA
12/09/2019
894.00
620 620-00-6210
STANS LPS MIDWEST
12/16/2019
147.59
620 620-00-6210
STANS LPS MIDWEST
12/16/2019
180.12
510 510-31-6110
STEINER ELECTRIC COMPANY
12/16/2019
276.82
100 100-01-5110 THELEN MATERIALS LLC
620 620-00-8300
TKB ASSOCIATES, INC
100 100-22-4510
TONY'S FAMILY TAILOR SHOP
100 100-33-5370
TREDROC TIRE/ANTIOCH 002
510 510-32-5375
USA BLUEBOOK
400 400-00-6210
VERMONT SYSTEMS INC
100 100-05-5110
WORKPLACE SOLUTIONS
Fund Summary
100 - GENERAL FUND
400 - RECREATION CENTER FUND
510 - WATER/SEWER FUND
620 - INFORMATION TECHNOLOGY FUND
12/16/2019
700.00
12/16/2019
9595.00
12/16/2019
108.00
12/16/2019
1669.50
12/16/2019
80.95
12/16/2019
457.00
12/16/2019
450.42
135067.71
96305.44
3377.91
8889.59
26494.77
135067.71
AS NEEDED CHECKS COUNCIL MEETING 12-16-19
100 100-33-5520
COMED
11/01/2019
464.22
100 100-22-5370
JIMS MCHENRY AUTO BODY
11/01/2019
1328.28
100 100-01-8900
MANEVAL CONSTRUCTION CO INC
11/01/2019
6500.00
100 100-33-6110
MCCANN INDUSTRIES INC
11/01/2019
470.00
100 100-03-5430
NorthwestBOCA
11/01/2019
160.00
100 100-03-5430
NorthwestBOCA
11/01/2019
80.00
100 100-03-5430
NorthwestBOCA
11/01/2019
80.00
100 100-01-6110
PRAIRIELAND DISPOSLA
11/01/2019
4950.00
100 100-21-5110
THEODORE POLYGRAPH SERV
11/01/2019
175.00
100 100-33-5370
TREDROC TIRE/ANTIOCH 002
11/01/2019
568.88
510 510-32-5510
COMED
11/01/2019
54.61
620 620-00-5320
AT&T
11/01/2019
1711.53
620 620-00-5320
AT&T
11/01/2019
251.21
620 620-00-5110
AT&T
11/01/2019
2347.53
620 620-00-6270
GOVCONNECTION, INC
11/01/2019
67.62
620 620-00-6210
GOVCONNECTION, INC
11/01/2019
195.87
620 620-00-6270
US BANK
11/01/2019
397.72
100 100-46-5110
FIRESIDE THEATRE, THE
11/08/2019
2528.00
100 100-01-6940
SECRETARY OF STATE / DEPT OF F 11/08/2019
101.00
100 100-01-6940
SECRETARY OF STATE / DEPT OF F 11/08/2019
101.00
100 100-41-3637
VARVIL, SHANE
11/08/2019
100.00
290 290-00-6940
RNM LLC
11/08/2019
66685.77
510 510-32-5580
WINNEBAGO LANDFILL CO
11/08/2019
1344.06
620 620-00-5110
AT&T
11/08/2019
1018.26
620 620-00-5320
AT&T
11/08/2019
566.21
100 100-47-5110
CITY OF ELGIN
11/15/2019
282.00
100 100-22-5370
FIRST BANKCARD
11/15/2019
110.72
100 100-22-5420
FIRST BANKCARD
11/15/2019
544.66
100 100-22-6210
FIRST BANKCARD
11/15/2019
91.49
100 100-30-5430
FIRST BANKCARD
11/15/2019
699.95
100 100-33-5430
FIRST BANKCARD
11/15/2019
652.39
100 100-41-5410
FIRST BANKCARD
11/15/2019
244.00
100 100-41-6110
FIRST BANKCARD
11/15/2019
350.00
100 100-45-5370
FIRST BANKCARD
11/15/2019
724.98
100 100-45-5430
FIRST BANKCARD
11/15/2019
610.40
100 100-45-6110
FIRST BANKCARD
11/15/2019
438.06
100 100-46-6110
FIRST BANKCARD
11/15/2019
76.38
100 100-46-6920
FIRST BANKCARD
11/15/2019
172.28
100 100-47-5430
FIRST BANKCARD
11/15/2019
60.00
100 100-47-6110
FIRST BANKCARD
11/15/2019
234.13
100 100-03-6110
HOME DEPOT CREDIT SERVICES
11/15/2019
526.39
100 100-33-6110
HOME DEPOT CREDIT SERVICES
11/15/2019
456.46
100 100-45-6110
HOME DEPOT CREDIT SERVICES
11/15/2019
2092.06
100 100-47-5410
ILLINOIS SWIMMING INC
11/15/2019
237.00
100 100-33-5370
MCCANN INDUSTRIES INC
11/15/2019
398.74
100 100-41-6110
SAM'S CLUB
11/15/2019
45.54
100 100-41-6110
SAM'S CLUB
11/15/2019
55.53
100 100-04-6210
STAPLES BUSINESS CREDIT
11/15/2019
100.75
100 100-22-6210
STAPLES BUSINESS CREDIT
11/15/2019
29.99
100 100-45-6210
STAPLES BUSINESS CREDIT
11/15/2019
20.99
400 400-00-5110
FIRST BANKCARD
11/15/2019
149.00
400 400-00-5430
FIRST BANKCARD
11/15/2019
90.00
400 400-00-6110
HOME DEPOT CREDIT SERVICES
11/15/2019
90.00
510 510-32-6210
FIRST BANKCARD
11/15/2019
572.67
510 510-35-5430
FIRST BANKCARD
11/15/2019
120.90
510 510-31-6110
HOME DEPOT CREDIT SERVICES
11/15/2019
54.72
510 510-32-6110
HOME DEPOT CREDIT SERVICES
11/15/2019
227.25
510 510-35-6110
HOME DEPOT CREDIT SERVICES
11/15/2019
55.64
510 510-32-6110
METRO DOOR AND DOCK INC
11/15/2019
344.85
510 510-31-6210
STAPLES BUSINESS CREDIT
11/15/2019
72.70
510 510-35-6110
USA BLUEBOOK
11/15/2019
207.90
510 510-35-6110
USA BLUEBOOK
11/15/2019
312.45
620 620-00-5420
FIRST BANKCARD
11/15/2019
220.83
100 100-45-5110
A -ABLE ALARM SERVICE INC
11/21/2019
296.00
100 100-01-6110
BANKCARD PROCESSING CENTER
11/21/2019
108.97
100 100-01-6940
BANKCARD PROCESSING CENTER
11/21/2019
98.59
100 100-05-5430
BANKCARD PROCESSING CENTER
11/21/2019
549.00
100 100-06-5110
BANKCARD PROCESSING CENTER
11/21/2019
13.06
100 100-06-5420
BANKCARD PROCESSING CENTER
11/21/2019
512.00
100 100-06-5430
BANKCARD PROCESSING CENTER
11/21/2019
53.00
100 100-45-5110
CINTAS
11/21/2019
56.07
100 100-45-5110
CINTAS
11/21/2019
53.85
100 100-23-5430
DEKALB COUNTY ETSB
11/21/2019
150.00
100 100-47-5110
J-HAWK AQUATIC CLUB
11/21/2019
728.00
100 100-06-5410
KIWANIS CLUB OF MCHENRY
11/21/2019
150.00
100 100-06-5420
KIWANIS CLUB OF MCHENRY
11/21/2019
15.00
100 100-06-5420
KIWANIS CLUB OF MCHENRY
11/21/2019
15.00
100 100-04-6945
LANG AUTO GROUP, GARY
11/21/2019
402263.27
100 100-47-5110
MCHENRY COMMUNITY SCHOOL DI
11/21/2019
648.50
100 100-03-5120
SCHOPEN PEST SOLUTIONS INC
11/21/2019
162.00
100 100-47-5110
THE CITY OF ELGIN
11/21/2019
100.00
100 100-04-6210
TYLER BUSINESS FORMS
11/21/2019
308.88
100 100-04-6210
TYLER BUSINESS FORMS
11/21/2019
92.07
100 100-22-5310
UPS
11/21/2019
8.70
100 100-06-6210
WOLF DOROTHY
11/21/2019
55.88
400 400-00-5321
BANKCARD PROCESSING CENTER
11/21/2019
600.18
400 400-00-6110
BANKCARD PROCESSING CENTER
11/21/2019
122.65
400 400-00-6110
BANKCARD PROCESSING CENTER
11/21/2019
122.65
400 400-00-6210
BANKCARD PROCESSING CENTER
11/21/2019
104.32
400 400-40-5110
BANKCARD PROCESSING CENTER
11/21/2019
529.00
510 510-31-5430
ISAWWA
11/21/2019
160.00
510 510-32-5310
UPS
11/21/2019
4.35
620 620-00-6210
U.S. BANK
11/21/2019
311.00
620 620-00-6210
US BANK
11/21/2019
225.00
100 100-47-5110
ILLINOIS SWIMMING INC
11/27/2019
257.00
100 100-41-6110
RADICOM INC
11/27/2019
122.50
100 100-03-5110
STONEY BROOK LANDSCAPE LLC
11/27/2019
448.00
400 400-00-6110
BENCE, JENNIFER
11/27/2019
21.75
510 510-31-6110
HAWKINS INC
11/27/2019
4330.68
510 510-32-6110
HAWKINS INC
11/27/2019
8716.57
510 510-32-5375
XYLEM WATER SOLUTIONS USA INl
11/27/2019
310.47
TOTAL
526844.53
FUND 100
434126.61
FUND 290
66685.77
FUND 400
1829.55
FUND 510
16889.82
FUND 620
7312.78
526844.53
4 Office of Finance &Accounting
Carolyn Lynch, Director
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
McHer r
Phone: (815) 363-2100
Fax: (815) 363-2119
www.ci.mchenry.il.us
REGULAR AGENDA SUPPLEMENT
DATE: December 16, 2019
TO:Mayor and City Council
FROM: Carolyn Lynch, Finance Director
RE:Abatement of Real Estate Taxes for Various Bond Issues
ATT: Abatement of Real Estate Taxes Ordinances
SUMMARY: The City of McHenry has issued a variety of bonds backed by the full faith and credit
of the municipality. This requires that property taxes be levied by the County Clerk. The City's
intentions are to abate these taxes through the County Clerk annually through the attached
abatement ordinances.
BACKGROUND: Over the years, the City of McHenry has issued a variety of bonds that pledge
various funding sources for repayment backed by the full faith and credit of municipality. In
pledging the full faith and credit of the municipality, the bond ordinances require the County
Clerk to levy property taxes for the debt service required on the bonds unless an abatement of
the property tax by the local municipality is approved and filed with the County Clerk.
ANALYSIS: In structuring the bonds in this manner, it was the intent of the City to annually abate
the taxes provided the primary source of repayment is sufficient to cover the debt service
requirement. Historically,the primary source of repayment has been sufficient to cover the debt
service and the property tax has been abated. Projections show that revenue sources in the
coming year will continue to provide adequate coverage for debt service requirements allowing
the abatement of the property tax.
Consequently, in order for the County Clerk to abate or reduce the property taxes levied,the City
Council will need to approve the attached ordinances authorizing the abatements as follows:
1. GO Bonds (Recovery Zone & Build America) Series 2010B $ 407,160.00
2. GO Bonds (Alternate) Series 2010C 448,952.50
3. GO Bonds (Alternate) Series 2012 204,232.50
4. GO Bonds (Refunding) Series 2013 35,740.00
6. GO Bonds (Refunding) Series 2015 578,478.76
RECOMMENDATION: Staff recommends approval of the attached ordinances for the abatements as
listed.
ORDINANCE NO. ORD-19-
AN ORDINANCE PROVIDING FOR AN ABATEMENT OF REAL ESTATE
TAXES LEVIED FOR THE 2019 TAX LEVY YEAR PURSUANT TO AN
ORDINANCE ADOPTED BY THE CITY COUNCIL OF THE CITY OF
MCHENRY, ILLINOIS, ON FEBRUARY 1, 2010, PROVIDING FOR THE
ISSUANCE OF $3,510,000 GENERAL OBLIGATION BONDS (RECOVERY
ZONE & BUILD AMERICA) SERIES 2010B OF THE CITY OF MCHENRY,
ILLINOIS, FOR THE LEVY AND COLLECTION OF A DIRECT ANNUAL TAX
FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SAID
BONDS.
WHEREAS, an ordinance was adopted by the City Council of the City of McHenry, Illinois on
February 1, 2010, providing for the issuance of $3,510,000 General Obligation Bonds (Recovery Zone &
Build America), Series 2010B of the City of McHenry, Illinois,for the levy and collection of a direct annual
tax for the payment of the principal of and interest on said bonds.
WHEREAS, the Series 2010E Bonds are payable from, and are secured by a pledge of, the City's
distributive share of sales and use taxes imposed by the State of Illinois and derived from transactions at
places of business located within the boundaries of the City, including monies paid by the State in
replacement of the City's distributive share of such taxes; and
WHEREAS, pursuant to the aforesaid Supplemental Ordinance a direct tax has been levied for
the 2019 Tax Levy Year in the amount of$407,160.00 for the payment of the principal and interest due
in the year 2020 on the Series 2010E Bonds authorized by said ordinance; and
WHEREAS,the City's distributive share of sales and use taxes imposed by the State of Illinois and
derived from transactions at places of business located within the boundaries of the City which have
been pledged for the payment of the principal and interest on the Series 2010E Bonds otherwise
payable from such levy for the 2019 Tax Levy Year are on deposit in the Series 2010B Project Fund
established by Section 12 of the aforesaid Ordinance and it is therefore the determination of the
Corporate Authorities of the City of McHenry, Illinois that the real estate taxed levied for the Tax Levy
Year 2019 pursuant to said Ordinance shall be abated.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCHENRY,
MCHENRY COUNTY, ILLINOIS, as follows:
SECTION 1. All real estate taxes authorized to be levied for the 2019 Tax Levy Year pursuant to
the ordinance adopted by the City Council of the City of McHenry, Illinois on February 1, 2010, providing
for the issuance of$3,510,000 General Obligation Bonds (Recovery Zone & Build America), Series 2010B
of the City of McHenry, Illinois, for the levy and collection of a direct annual tax for the payment of the
principal of and interest on said bonds.
SECTION 2. The City Clerk shall file a certified copy of this Ordinance in the Offices of the Clerk
of the County of McHenry, Illinois after the effective date of this ordinance.
SECTION 3. All ordinances or parts thereof in conflict with the terms and provisions hereof be
and the same 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 immediately from and after its
passage,approval and publication, as provided by law.
Passed and approved this 161h day of December, 2019.
VOTING AYE:
VOTING NAY:
ABSTAINED:
NOT VOTING:
ABSENT:
Wayne S.Jett, Mayor
ATTEST:
City Clerk,Trisha Ramel
ORDINANCE NO. ORD-19-
AN ORDINANCE PROVIDING FOR AN ABATEMENT OF REAL ESTATE
TAXES LEVIED FOR THE 2019 TAX LEVY YEAR PURSUANT TO AN
ORDINANCE ADOPTED BY THE CITY COUNCIL OF THE CITY OF
MCHENRY, ILLINOIS, ON AUGUST 30, 2010, PROVIDING FOR THE
ISSUANCE OF $5,665,000 GENERAL OBLIGATION BONDS (ALTERNATE)
SERIES 2010C OF THE CITY OF MCHENRY, ILLINOIS, FOR THE LEVY AND
COLLECTION OF A DIRECT ANNUAL TAX FOR THE PAYMENT OF THE
PRINCIPAL OF AND INTEREST ON SAID BONDS.
WHEREAS, an ordinance was adopted by the City Council of the City of McHenry, Illinois on
August 30, 2010 providing for the issuance of $5,665,000 General Obligation (Alternate) Bonds, Series
2010C of the City of McHenry, Illinois, for the levy and collection of a direct annual tax for the payment
of the principal of and interest on said bonds.
WHEREAS, the Series 2010C Bonds are payable from, and are secured by a pledge of, the City's
distributive share of sales and use taxes imposed by the State of Illinois and derived from transactions at
places of business located within the boundaries of the City, including monies paid by the State in
replacement of the City's distributive share of such taxes; and
WHEREAS, pursuant to the aforesaid Supplemental Ordinance a direct tax has been levied for
the 2019 Tax Levy Year in the amount of$448,952.50 for the payment of the principal and interest due
in the year 2020 on the Series 2010C Bonds authorized by said ordinance; and
WHEREAS,the City's distributive share of sales and use taxes imposed by the State of Illinois and
derived from transactions at places of business located within the boundaries of the City which have
been pledged for the payment of the principal and interest on the Series 2010C Bonds otherwise
payable from such levy for the 2019 Tax Levy Year are on deposit in the Series 2010C Project Fund
established by Section 14 of the aforesaid Ordinance and it is therefore the determination of the
Corporate Authorities of the City of McHenry, Illinois that the real estate taxed levied for the Tax Levy
Year 2019 pursuant to said Ordinance shall be abated.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCHENRY,
MCHENRY COUNTY, ILLINOIS, as follows:
SECTION 1. All real estate taxes authorized to be levied for the 2019 Tax Levy Year pursuant to
the ordinance adopted by the City Council of the City of McHenry, Illinois on August 30, 2010, providing
for the issuance of $5,665,000 General Obligation Bonds (Alternate) Series 2010C of the City of
McHenry, Illinois, for the levy and collection of a direct annual tax for the payment of the principal of
and interest on said bonds.
SECTION 2. The City Clerk shall file a certified copy of this Ordinance in the Offices of the Clerk
of the County of McHenry, Illinois after the effective date of this ordinance.
SECTION 3. All ordinances or parts thereof in conflict with the terms and provisions hereof be
and the same 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 immediately from and after its
passage, approval and publication, as provided by law.
Passed and approved this 16th day of December, 2019.
VOTING AYE:
VOTING NAY:
ABSTAINED:
NOT VOTING:
ABSENT:
Mayor Wayne S.Jett
ATTEST:
City Clerk,Trisha Ramel
ORDINANCE NO. ORD-19-
AN ORDINANCE PROVIDING FOR AN ABATEMENT OF REAL ESTATE
TAXES LEVIED FOR THE 2019 TAX LEVY YEAR PURSUANT TO AN
ORDINANCE ADOPTED BY THE CITY COUNCIL OF THE CITY OF
MCHENRY, ILLINOIS, ON AUGUST 27, 2012, PROVIDING FOR THE
ISSUANCE OF $3,100,000 GENERAL OBLIGATION BONDS (ALTERNATE),
SERIES 2012 OF THE CITY OF MCHENRY, ILLINOIS, FOR THE PURPOSE
OF FINANCING THE RENOVATION OF WATER TREATMENT PLANT NO. 2
AND HVAC AND ROOF REPAIRS AT THE PUBLIC WORKS GARAGE
WHEREAS, an ordinance was adopted by the City Council of the City of McHenry, Illinois on
August 27, 2012 providing for the issuance of $3,100,000 General Obligation Bonds (Alternate), Series
2012 of the City of McHenry, Illinois, for the purpose of financing the Renovation of Water Treatment
Plant No. 2 and HVAC and Roof Repairs at the Public Works Garage; and
WHEREAS, the Series 2012 Bonds are payable from, and are secured by a pledge of, the City's
distributive share of sales and use taxes imposed by the State of Illinois and derived from transactions at
places of business located within the boundaries of the City, including monies paid by the State in
replacement of the City's distributive share of such taxes; and
WHEREAS, pursuant to the aforesaid Supplemental Ordinance a direct tax has been levied for
the 2019 Tax Levy Year in the amount of$204,232.50 for the payment of the principal and interest due
in the year 2020 on the Series 2012 Bonds authorized by said ordinance; and
WHEREAS,the City's distributive share of sales and use taxes imposed by the State of Illinois and
derived from transactions at places of business located within the boundaries of the City which have
been pledged for the payment of the principal and interest on the Series 2012 Bonds otherwise payable
from such levy for the 2019 Tax Levy Year are on deposit in the Series 2012 Debt Service Fund
established by Section 13 of the aforesaid Ordinance and it is therefore the determination of the
Corporate Authorities of the City of McHenry, Illinois, that the real estate taxes levied for the Tax Levy
Year 2019 pursuant to said Ordinance shall be abated.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCHENRY,
MCHENRY COUNTY, ILLINOIS, as follows:
SECTION 1. All real estate taxes authorized to be levied for the 2019 Tax Levy Year pursuant to
the ordinance adopted by the City Council of the City of McHenry, Illinois on August 27, 2012, providing
for the issuance of$3,100,000 General Obligation Bonds (Alternate), Series 2012 of the City of McHenry,
Illinois, for the purpose of financing the Renovation of Water Treatment Plant No. 2 and HVAC and Roof
Repairs at the Public Works Garage; be and they are hereby abated in the amount of 100%thereof.
SECTION 2. The City Clerk shall file a certified copy of this Ordinance in the Offices of the Clerk
of the County of McHenry, Illinois after the effective date of this ordinance.
SECTION 3. All ordinances or parts thereof in conflict with the terms and provisions hereof be
and the same 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 immediately from and after its
passage,approval and publication, as provided by law.
Passed and approved this 161h day of December, 2019.
VOTING AYE:
VOTING NAY:
ABSTAINED:
NOT VOTING:
ABSENT:
Mayor Wayne S.Jett
ATTEST:
City Clerk,Trisha Ramel
ORDINANCE NO. ORD-19-
AN ORDINANCE PROVIDING FOR AN ABATEMENT OF REAL ESTATE
TAXES LEVIED FOR THE 2019 TAX LEVY YEAR PURSUANT TO AN
ORDINANCE ADOPTED BY THE CITY COUNCIL OF THE CITY OF
MCHENRY, ILLINOIS, ON MARCH 18, 2013, PROVIDING FOR THE
ISSUANCE OF $2,400,000 GENERAL OBLIGATION (REFUNDING) BONDS
SERIES 2013 OF THE CITY OF MCHENRY, ILLINOIS, TO REFUND SERIES
2005 GENERAL OBLIGATION BONDS AND ISSUE $415,000 FOR REPAIRS
TO THE PUBLIC WORKS BUILDING AT 1415 INDUSTRIAL DRIVE.
WHEREAS, an ordinance was adopted by the City Council of the City of McHenry, Illinois on
March 18, 2013, providing for the issuance of $2,400,000 General Obligation (Refunding) Bonds, Series
2013 of the City of McHenry, Illinois, to refund Series 2005 General Obligation Bonds and issue $415,000
for repairs to the Public Works Building at 1415 Industrial Drive.
WHEREAS, the Series 2013 Bonds are payable from, and are secured by a pledge of, the City's
distributive share of sales and use taxes imposed by the State of Illinois and derived from transactions at
places of business located within the boundaries of the City, including monies paid by the State in
replacement of the City's distributive share of such taxes; and
WHEREAS, pursuant to the aforesaid Supplemental Ordinance a direct tax has been levied for
the 2019 Tax Levy Year in the amount of$35,740.00 for the payment of the principal and interest due in
the year 2020 on the Series 2013 Bonds authorized by said ordinance; and
WHEREAS,the City's distributive share of sales and use taxes imposed by the State of Illinois and
derived from transactions at places of business located within the boundaries of the City which have
been pledged for the payment of the principal and interest on the Series 2013 Bonds otherwise payable
from such levy for the 2019 Tax Levy Year are on deposit in the Series 2013 Project Fund established by
Section 13 of the aforesaid Ordinance and it is therefore the determination of the Corporate Authorities
of the City of McHenry, Illinois that the real estate taxed levied for the Tax Levy Year 2019 pursuant to
said Ordinance shall be abated.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCHENRY,
MCHENRY COUNTY, ILLINOIS, as follows:
SECTION 1. All real estate taxes authorized to be levied for the 2019 Tax Levy Year pursuant to
the ordinance adopted by the City Council of the City of McHenry, Illinois on March 18, 2013, providing
for the issuance of $2,400,000 General Obligation (Refunding) Bonds, Series 2013 of the City of
McHenry, Illinois, to refund Series 2005 General Obligation Bonds and issue $415,000 for repairs to the
Public Works Building at 1415 Industrial Drive.
SECTION 2. The City Clerk shall file a certified copy of this Ordinance in the Offices of the Clerk
of the County of McHenry, Illinois after the effective date of this ordinance.
SECTION 3. All ordinances or parts thereof in conflict with the terms and provisions hereof be
and the same 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 immediately from and after its
passage,approval and publication, as provided by law.
Passed and approved this 16t'day of December, 2019.
VOTING AYE:
VOTING NAY:
ABSTAINED:
NOT VOTING:
ABSENT:
Mayor Wayne S.Jett
ATTEST:
City Clerk,Trisha Ramel
ORDINANCE NO. ORD-19-
AN ORDINANCE PROVIDING FOR AN ABATEMENT OF REAL ESTATE
TAXES LEVIED FOR THE 2019 TAX LEVY YEAR PURSUANT TO AN
ORDINANCE ADOPTED BY THE CITY COUNCIL OF THE CITY OF
MCHENRY, ILLINOIS, ON APRIL 20, 2015, PROVIDING FOR THE
ISSUANCE OF $6,375,000 GENERAL OBLIGATION (REFUNDING) BONDS
SERIES 2015 OF THE CITY OF MCHENRY, ILLINOIS, TO REFUND SERIES
2006 GENERAL OBLIGATION BONDS, ADVANCE REFUND SERIES 2007
GENERAL OBLIGATION BONDS AND ISSUE $2,015,000 FOR
CONSTRUCTION OF THE RECREATION CENTER AT 3636 MUNICPAL
DRIVE.
WHEREAS, an ordinance was adopted by the City Council of the City of McHenry, Illinois on April
20, 2015, providing for the issuance of$6,375,000 General Obligation (Refunding) Bonds, Series 2015 of
the City of McHenry, Illinois, to refund Series 2006 General Obligation Bonds, advance refund Series
2007 General Obligation Bonds, and issue $2,015,000 for construction of the Recreation Center at 3636
Municipal Drive.
WHEREAS, the Series 2015 Bonds are payable from, and are secured by a pledge of, the City's
distributive share of sales and use taxes imposed by the State of Illinois and derived from transactions at
places of business located within the boundaries of the City, including monies paid by the State in
replacement of the City's distributive share of such taxes; and
WHEREAS, pursuant to the aforesaid Supplemental Ordinance a direct tax has been levied for
the 2019 Tax Levy Year in the amount of$578,478.76 for the payment of the principal and interest due
in the year 2020 on the Series 2015 Bonds authorized by said ordinance; and
WHEREAS, the City's distributive share of sales and use taxes imposed by the State of Illinois and
derived from transactions at places of business located within the boundaries of the City which have
been pledged for the payment of the principal and interest on the Series 2015 Bonds otherwise payable
from such levy for the 2019 Tax Levy Year are on deposit in the Series 2015 Project Fund established by
Section 13 of the aforesaid Ordinance and it is therefore the determination of the Corporate Authorities
of the City of McHenry, Illinois that the real estate taxed levied for the Tax Levy Year 2019 pursuant to
said Ordinance shall be abated.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCHENRY,
MCHENRY COUNTY, ILLINOIS, as follows:
SECTION 1. All real estate taxes authorized to be levied for the 2019 Tax Levy Year pursuant to
the ordinance adopted by the City Council of the City of McHenry, Illinois on April 20, 2015, providing for
the issuance of $6,375,000 General Obligation (Refunding) Bonds, Series 2015 of the City of McHenry,
Illinois, to refund Series 2006 General Obligation Bonds, advance refund Series 2007 General Obligation
Bonds, and issue $2,015,000 for construction of the Recreation Center at 3636 Municipal Drive.
SECTION 2. The City Clerk shall file a certified copy of this Ordinance in the Offices of the Clerk
of the County of McHenry, Illinois after the effective date of this ordinance.
SECTION 3. All ordinances or parts thereof in conflict with the terms and provisions hereof be
and the same 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 immediately from and after its
passage, approval and publication, as provided by law.
Passed and approved this 161h day of December, 2019.
VOTING AYE:
VOTING NAY:
ABSTAINED:
NOT VOTING:
ABSENT:
Mayor Wayne S.Jett
ATTEST:
City Clerk,Trisha Ramel
A Department of Community&
Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
j
Phone: (815) 363-2170
1 V c enr Fax: (815) 363-2173
www.ci.mchenry.il.us
REGULAR AGENDA SUPPLEMENT
TO:Mayor and City Council
FROM: Ross Polerecky, Community Development Director
FOR: December 16, 2019 Regular City Council Meeting
RE:Sign Variance for Popeye's Chicken, 1800 N Richmond Road
ATT: Sign application, proposed sign package
Agenda Item Summary: The Community Development Department received a sign variance
request for Popeye's Chicken located at 1800 N Richmond Road. Staff has reviewed the request
and feels the sign package proposal falls within the McHenry Municipal code sign variance
guidelines.
Background: Popeye's Chicken recently purchased the former Arby's property located at 1800 N
Richmond Road.Staff has been working with Popeye's to update the building and property,these
updates include parking lot improvements, new exterior finishes and a complete update of the
interior to include a new kitchen and dining areas.
Analysis: Popeye's Chicken is an outlot parcel located in a C-3 zoning district, the C-3 zoning
would normally allow for one free standing sign no taller than 15', a size no greater than .5 sq/ft
per foot of lot frontage and a 5' setback, however because this property is an outlot there are
more restrictive criteria. An outlot parcel is restricted to a freestanding sign no taller than 6', a
size no greater than 32 sq/ft and a 7' setback. This site presents many hardships with placing a
smaller sign due to the required parking, utility locations and limited green space. A smaller sign
is normally wider at the base taking up more area at the ground level while the proposed sign is
a pole sign, using a smaller area at the ground level.The applicant has submitted a hardship letter
explaining their variance request. The former Arby's restaurant did not have a free standing sign,
reasoning for this is not known. Staff has reviewed this request and believes it falls within the
sign ordinances guidelines for a variance, these guideline are listed below.
Department of Community&
Economic Development
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
McHenz ' Fax: (815) 363-2173
www.ci.mchenry.il.us
Per the municipal code a sign variance must abide by the following four items:
1) will not be materially detrimental to the public welfare or injurious to other property in the
vicinity;
2) will not impair an adequate supply of light and air to adjacent property, increase the danger
of fire, endanger public safety, or substantially impair property values in the neighborhood;
3) shall not give the property owner or business an unfair advantage over a similar business;
and
4) will not cause a hazard to the public's safety by being distracting because of size, location, or
being located within rights-of-way.
Staff believes the variance requests abide by all of the criteria above and recommends
approval.
If the City Council concurs it is recommended that a sign variance be granted to 1800 N
Richmond Road to allow an additional 9' feet in height for a maximum of Wand an additional
21 sq/ft of area for a total of 53 square feet of area.
n Non-Residential pE,RmT NO.
a+yornrdter,y Minor permit community,&EconomfeDevelopment
Community and ,,, 333.S.Green Street,McHenry,IL 60050 iEconomicDevelopmentApplicationE-mail:CED @ci.mchenry.il.us
PROPERTY
815)363-2170
ADDitiss: 1800 Richmond Rd. OFFICCUSEONLY
Zoning Dist:ESTIMATED COST OFCONSTRUCTiON: 4 16,000.00 4•-
Existing Use: r Commercial ElIndust/Office x/C
i ownship/Pin;
Flood zone:
Air Conditioning Fire Suppression Signs Community and Economic
N Freestanding Development
IAccessory Bldg Lawn Irrigation Wall
Driveway/Lot Pay. Masonry Temporary D r(?
Demolition Retaining Wall(over4')
u,w)
to
Electric Remodel/Alteration Over the Counter FERM)fTE3 Dwj
Fence Seal Coatin Stri a
Plan Review: A ,
A Ro-roof
BuiiIding:
Furnace Sidewalk/Stairs Water Heater Plumbing:
Fire Alarm Siding Water/Sewer Repair Bond:
other: Sign Misc.Deposit;
TOTAL:
Owner; 1800 Richmond LLC Phone:C$47,.___807-720_0__ ___
Address 2207 Patriot Blvd Unit#: city:Glenview _ State: IL zip:_60026
E-mail: StevenSchwartz1 @gmafl.cof
Contractor: Comet Neon, Inc.
Phone: 6( 30)_ 656-1085 E-mail;_Paul(5)cometneon.com
Electrical Contractor:Comet Neon, Inc.Phone: (6304 656-1085
Submit a copy of an electrical license with this application.
Plumbing Contractor: N/A Phone:
Submit the following: Letter of intent on plumbing contractors letterhead (with corporate seal,or notary seal)
stating that they are doing this job;copy of State plumbing license;copy of certificate of State registration.
Roofing Contractor: N/A Phone: L_)
Notat Submit a copy of n Stele of Illinois rooting contractor license with this application.
Notes:
All information provided herein is Imo and correct and all ordinances and codes of the City ofMcHenry shall be complied with.I hereby represent and as=that,in considera-
tion ofthis permit being Issued,only tho wvrk herein applied forwill be done and that the premises being mmkod on vdil only be used for the purposes set forth heroin.I under-
stand and hereby acknowledge it's the property owner's responsibility to ascertain ifthem are any existingprivate covenants,conditions and/or deed restrictions,-filch may
further regulate and/or prohibit work for which this building permit from the City has been obtained.I furtheracknowledgo it's ft property owntesresponsibility to obtain
required written or otlrerpennission or follow any other private approval process from any such home,property owner's or other association,if applicable,prior to commencing
work on myproperty even if building permit is issued by the City.I hereby Indemnify the City,Its officials and employees from any and all liability for damages,lawsuits,
attorneys fees and injui im im Wing deaf i skinned by anyone or damago to any property,including surveying errors and encroachment liability wbich accrue against the City,
SIGNED: PATE: 12/5/2019
Paul Rzewuski as Agent of Owner
FOR OFFICE USE
Approved By Issued —`—.— Expiration Scanned
Name:. Date:---__Date:
Ray.9115)
PEARL STREET COMMERCIAL, LLC
2207 Patriot Blvd Glenview,IL 60026
Phone (847)867-7200 Fax (847)510-0454
stevenschwartzI a?gm ail.com
December 5,2019
Mr. Ross Polercky
Director of Community Development
City of McHenry
333 S.Green Street
McHenry, IL 60050
Re: Sign Variance request approval for stand-alone pylon for Popeye's at 1800 Richmond Rd, McHenry
Dear Ross:
Enclosed please find the following in support of our pylon sign variance request to the City Council for
our Popeye's stand-alone sign:
Sign Permit Application and$175. check
Sign Location Plat
Sign Location Plat close-up
Pylon sign exhibit—Popeye's
The reason for our requested relief for a stand-alone Popeye's pylon sign with reader board(90 sq.ft.of
signage)and 15' height variance is the uniqueness of our outlot and hardship with respect to limited
areas for said pylon sign. Note-our sign location and placement does meet the applicable setback under
the sign code.
Per your code,a free-standing sign up to 15'in height is allowed on a stand-alone outlot. In this case,
our Popeye's site is technically part of the shopping center,but is a stand-alone lot with C-5 zoning. We
respectfully ask that the City Council grant us relief due to the hardship and limitation of potential sign
area(s). Previous ROW taking,existing utility easement(see sign location plat)and current development
does not allow a further reduction in parking spaces required or Popeye's use. The height variance
request is necessary to not only provide reasonable exposure for the new business, but to make sure the
parking customers will not bump up against our pylon sign. We are able to locate this pylon sign in the
proposed area in between the existing utility easement, but can't place a brick base due to the continue
right of the utility companies to access or tear up this area for necessary repairs and would present an
undue hardship once installed.
r
PEARL STREET COMMERCIAL, LLC
i
2207 Patriot Blvd.Glenview,IL 60026
Phone (847)867-7200 Fax (847)510-0454
stevemchAvartzl@grnail.com
We greatly appreciate the Council's timely consideration of said request because we are working
diligently to open the Popeye's by year-end or early January and we would like to move immediately
with permitting and installation of this pylon sign for proper exposure for this new retail development.
Sincerely
Steven L.Sshwarz -
1800 Richmond, LLC
Manager I
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Office of the City Clerk
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2108
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.
REGULAR AGENDA ITEM
DATE: December 16, 2019
TO: Mayor and City Council
FROM: Monte Johnson, Deputy City Clerk
RE: Semi-Annual Review of Executive Session Meeting Minutes
ATT: Resolution
AGENDA ITEM SUMMARY:
Pursuant to the Illinois Open Meetings Act, a semi-annual review of minutes and recordings of all closed
executive sessions that have not yet been released for public review must be conducted semi-annually.
BACKGROUND:
The determination of which minutes, if any that may be released is based on the advice of legal counsel.
The Act also permits the destruction of executive session recordings that exists more than 18 months after
the date the meeting was recorded.
Executive Session minutes presented for approval and release:
06/03/19 5/ILCS 120/2(c) (11, 21) Litigation, Review of Executive Session Minutes
06/17/19 5/ILCS 120/2(c) (11) Litigation
09/16/09 5 ILCS 120/2(c) (11) Purchase of Lease of Property
10/07/19 5 ILCS 120/2(c) (11) Setting a Price for Property
ANALYSIS:
City Attorney David McArdle has already reviewed all four sets of executive session minutes and has
given his blessing for their approval and release.
Recommendation: If Council concurs, then it is recommended a motion is made in Open Session to
pass the attached Resolution approving a) Executive Session meeting minutes as presented; b)
authorizing the release of Executive Session meeting minutes as presented No; and c) destruction of
any executive session recordings that exist more than 18 months and the minutes for that meeting
have been approved.
R-19-xxx
RESOLUTION
WHEREAS, the Illinois Open Meetings Act specifies that Executive Session minutes be
reviewed at least once every six months;
WHEREAS, upon advice from Counsel, the McHenry City Council recommends the approval
and release of the following Executive Session Minutes;
06/03/19 5/ILCS 120/2(c) (11, 21) Litigation, Review of Executive Session Minutes
06/17/19 5/ILCS 120/2(c) (11) Litigation
09/16/09 5 ILCS 120/2(c) (5) Purchase or Lease of Property
10/07/19 5 ILCS 120/2(c) (11) Setting a Price for Property
NOW THEREFORE, BE IT RESOLVED as specified in the Illinois Open Meetings Act that
authorization is hereby granted to approve the substance of and release of the above referenced executive
session minutes and destruction of all Executive Session recordings that exists more than 18 months prior
to the date of this Resolution.
Passed and approved this 16th day of December, 2019.
Ayes Nays Absent Abstain
Alderman Devine ____ _____ _____ _____
Alderman Glab ____ _____ _____ _____
Alderman Mihevc _____ _____ _____ _____
Alderman Miller _____ _____ _____ _____
Alderman Santi _____ _____ _____ _____
Alderman Schaefer _____ _____ _____ _____
Wayne Jett, Mayor Monte Johnson, Deputy Clerk