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HomeMy WebLinkAboutMinutes - 12/07/2015 - City CouncilREGULAR MEETING December 7, 2015 Mayor Low called the regularly scheduled December 7, 2015 meeting of the McHenry City Council to order at 7:00 p.m. In attendance were the following Aldermen: Santi, Glab, Schaefer, Curry, Wimmer, Peterson and Condon. Absent: None. Also in attendance were City Administrator Morefield, Deputy City Administrator Hobson, Director of Economic Development Martin, Director of Finance Lynch, Director of Public Works Schmitt, Director of Human Resources Campanella, Chief of Police Jones, City Attorney McArdle and City Clerk Jones. Absent: City Engineer Pieper. CITY OF MCHENRY MISSION STATEMENT Mayor Low read aloud the Mission Statement of the City of McHenry. PUBLIC HEARING FOR THE CONSIDERATION OF THE CITY OF MCHENRY 2015 TAX LEVY ORDINANCE, IN THE AMOUNT OF $4,761,635, REPRESENTING NO INCREASE ABOVE THE 2014 TAX LEVY EXTENSION• AND UPON CLOSE OF THE PUBLIC HEARING CONSIDERATION AND APPROVAL OF AN ORDINANCE ADOPTING THE 2015 TAX LEVY ORDINANCE FOR THE CITY OF MCHENRY Mayor Low opened the Public Hearing at 7:03 pm. Mayor Low inquired if there were questions from Council. There were no questions from Council. City Administrator Morefield noted that the City of McHenry has not been able to yet ascertain the Estimated Rate due to pending receipt of the necessary information from the County of McHenry regarding the EAV, and without that information the rates cannot be calculated. City Administrator Morefield reiterated to Council that on November 16, 2015, Council considered and approved a Resolution determining the Amount %J Funds to be levied for the 2015 Tax Year through real estate taxes for the City of McHenry. The date of December 7, 2015 was set for the Public Haring and consideration of an Ordinance establishing such levy. While not required to do so, the City of McHenry believes it is important to provide residents with the opportunity to provide public comment on the proposed property tax levy. City Administrator Morefield advised Council that an approved Tax Levy Ordinance must be filed by the last Tuesday of December (December 29, 2015). City Administrator Morefield informed Council that the City of McHenry has faced numerous challenges during the last decade resulting in annual budgets that have relied on substantial contributions from the General Fund Balance for the creation of a balanced budget. However, during the last four years, higher than expected sales and income taxes, the implementation of cost -reduction measures and a conservative approach to reinstating capital improvements and capital equipment expenditures, the General Fund Balance has been Regular Meeting Page 2 December 7, 2015 increased from $2,511,330 in FY09/10 to $10,041,968 in FY14/15. City Administrator Morefield noted that while the General Fund Balance is currently identified as "Unassigned," the City continues to face a number of economic uncertainties and challenges at the local and state levels that could conceivably reduce the amount significantly. City Administrator Morefield stated that while the City of McHenry has maintained a flat levy it does not mean that homeowners will not see an increase in their property tax bill. Change in EAV also drives a change in the property tax bill together with actions taken by the other taxing jurisdictions, which comprise the total property tax till. City Administrator Morefield informed Council that in 2014 the portion of a resident's tax bill direct to the City of McHenry was only 6/7% of the total amount of the tax bill. Alderman Wimmer opined that this is a good example of how fiscally responsible the Staff of the City of McHenry has been, having kept the levy flat for the past five years. Mayor Low inquired if there were any questions from the audience in attendance. Mr. Craig Wilcox, 5908 Whiting Drive, McHenry, IL addressed Council. Mr. Wilcox stated that he is a recent resident of the City of McHenry and appreciate the level of services the City provides. He requested that as we go into 2016, Staff continues to look at expenditures and perhaps find a way to reduce the levy. Ms. Helen Rochelle, Lorient Drive, McHenry, IL addressed Council. Ms. Rochelle inquired about the surplus in the General Fund and why it was required to be so high. Ms. Rochelle stated that she appreciated that the levy remained flat. She opined that the taxes in McHenry County and the State of Illinois are prohibitive. Ms. Joyce Story, Leonard Avenue, McHenry, IL addressed Council. Ms. Story stated that she appreciated the efforts of the Council and supports the levy remaining flat. Alderman Glab stated that he is pleased the City of McHenry has been able to keep the levy flat for five years and hopes other entities will follow suit. Motion by Wimmer, second by Santi, to close the Public Hearing for consideration of the City of McHenry 2015 Tax Levy Ordinance in the amount of $4,761,635, representing no increase above the 2014 Tax Levy extension; and upon close of the Public Hearing consideration and approval of an Ordinance adopting the 2015 Tax Levy Ordinance for the City of McHenry. Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. Regular Meeting Page 3 December 7, 2015 Motion by Curry, second by Santi, approving the Ordinance adopting the 2015 Tax Levy Ordinance for the City of McHenry, as presented. Voting Aye: Sant!, Glab, Curry, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. PUBLIC INPUT SESSION No one spoke at Public Input Session. CONSENT AGENDA A. Payments to Water Well Solutions, Elburn, IL for: 1. Emergency pull and inspection of Water Well #10, in the amount of $4,500; and 2. Installation of new pumping equipment for Water Well #10, in the amount of $19,200; B. Public Works Department request to purchase a replacement one -ton dump truck that includes purchase of cab and chassis from Buss For, McHenry, IL, for an amount not to exceed $44,440 and purchase/installation of the dump body, snowplow and salt -spreader from R.A. Adams Enterprises, McHenry, IL, for an amount not to exceed $36,281; for a total purchase price not to exceed $80,721; C. November 9, 2015 Committee of the Whole meeting minutes; and D. Approval of List of Bills, in the amount of $794,411.18. Motion by Santi, second by Condon, approving the Consent Agenda, as presented. Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. MOTION TO APPROVE ORDINANCES FOR THE ABATEMENT OF REAL ESTATE TAXES FOR THE FOLLOWING BOND ISSUES: 1. GENERAL OBLIGATION BONDS (RECOVERY ZONE &BUILD AMERICA) SERIES 2010b0 $4291760.00; 2. GENERAL OBLIGATION BONDS (ALTERNATE) SERIES 2010c, $445,812.50; 3. GENERAL OBLIGATION BONDS (ALTERNATE) SERIES 2012, $206,332.50; 4. GENERAL OBLIGATION BONDS (REFUNDING) SERIES 2013, $574,235.00; AND 5. GENERAL OBLIGATION BONDS (REFUNDING) SERIES 2015, $579,778.76 Director of Finance Lynch informed the Council that 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 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. 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 Regular Meeting Page 4 December 7, 2015 tax has been abated. Projections show the revenue sources in the coming year will continue to provide adequate coverage for debt service requirements, allowing the abatement of the property tax. Responding to Cl" inquiry from Alderman Curry, Director Lynch explained to Council what the refunding bonds had been originally issued for. Motion by Schaefer, second by Curry, approving the Ordinance for the abatement of real estate taxes for the following bond issues, as presented: 1. General Obligation Bonds (Recovery Zone & Build America) Series 2010b, $429,760.00; 2. General Obligation Bonds (Alternate) Series 2010c, $445,812.50; 3. General Obligation Bonds (Alternate) Series 2012, $206,332.50; 4. General Obligation Bonds (Refunding) Series 2013, $574,235.00; and 5. General Obligation Bonds (Refunding) Series 2015, $5791778.76 Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. MOTION TO AWARD A FACADE IMPROVEMENT GRANT FOR THE PROPERTY LOCATED AT 3932 MAIN STREET, IN THE AMOUNT OF $3,000, AS RECOMMENDED BY THE MCHENRY LANDMARK COMMISSION Director of Economic Development Martin informed Council that the Fagade Improvement Grant Program is available to owners of commercial buildings 50 years and older for work which furthers the preservation of historic buildings in an effort to maintain the original design/fagade of the structure as much as possible. Director Martin outlined the basic criteria for the program. Director Martin informed Council that an application was submitted by the owners of the building located at 3932 Main Street. The owners have applied for a Fagade Improvement Grant to assist in paying for tuckpointing work, which has been completed. Although the Grant was not guaranteed, the owners completed the renovation work in anticipation of the impending winter season. The cost of the tuckpointing was $18,500. The owners of the property plan on spending an additional $8,500 to complete painting on the exterior the building. Staff has ascertained that the applicants have performed major restorative work, making the building more usable, promoting the structural and aesthetic integrity of the building. The purpose of the Fagade Grant is to offset a portion of costs expended by property owners, which furthers the preservation of historic buildings. Director Martin informed Council Regular Meeting Page 5 December 7, 2015 that the cost of work at the property located at 3932 Main Street will total approximately $27,000, when completed. Director Martin informed Council that the Fagade Grant applications are reviewed by the Landmark Commission, which in turn makes a recommendation to the City Council. The Landmark Commission considered this application on November 3, 2015, and unanimously recommended awarding $3,000 to the applicants for the tuckpointing work done on the structure at 3932 Main Street, which had been completed. Director Martin noted that $5,000 is budgeted annually for Fagade Grants. Alderman Condon opined that she is pleased to see business owners in the City improving their property. Alderman Glab express concern that the Grant is being awarded after the work has already been completed. Director Martin reiterated that the work was only done, prior to obtaining the Grant, due to the impending bad weather. Alderman Schaefer stated that his grandfather owned the property originally and he was pleased to see improvements made to the property. Alderman Santi stated that he would support a larger amount budgeted annually to the Fagade Grant Improvement fund. Motion by Condon, second by Wimmer, approving the award of a Facade Improvement Grant for the property located at 3932 Main Street, in the amount of $3,000, as presented. Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. MOTION TO APPROVE AN ORDINANCE GRANTING A USE .VARIANCE TO HOME OF THE SPARROW TO ALLOW A PARKING LOT AS A PRINCIPAL USE ON THE PROPERTY LOCATED ON THE EAST SIDE OF RINGWOOD ROAD, LOT 29, OF WESTSHORE BEACH SUBDIVISION Director of Economic Development Martin informed Council that in 2008 the subject property was rezoned from G1 Convenience Commercial to RS-3 Medium -High Density Single - Family Residential. Variances were also granted to allow for the construction of two homes; to allow multiple buildings (2 homes) on a single zoning lot and for a lot width along an arterial street from 200 to 175 feet. Since that time the property has remained vacant. Home of the Sparrow operates a facility on Ringwood Road, which is located in unincorporated McHenry County, however they are connected to City sewer, but not City water due to the distance of the water main, which lies to the south. Recently, Home of the Sparrow Regular Meeting Page 6 December 7, 2015 completed an addition to their facility on Ringwood Road and was able to acquire the subject property, located within the City of McHenry, and the two lots north of the subject property and south of their facility. Due to the expansion of the facility, Home of the Sparrow would like to construct additional parking and physically tie all the properties together. Parking lots are only allowed by -right in residential zoning districts as accessory uses if the parking lot is accessory to a permitted use in the district. In this case, all the adjacent lots are unincorporated, therefore a Use Variance is required to allow a parking lot as a principal use. Director Martin explained the criteria for a Use Variance. Director Martin noted that there are no additional access points onto Ringwood Road proposed, as the parking area proposed would be physically linked to the two vacant lots to the north and the existing building. There is an existing access north of the subject property off of Ringwood Road and the property can also be accessed from W. West Shore Drive. The parking lot would be required to meet all applicable City Ordinances, including, but not limited to, parking lot lighting, stormwater and screening. Staff has no concerns and support the request, as presented. Director Martin informed Council that the Planning and Zoning Commission unanimously recommended approval (5-0) to allow a parking lot as a principal use on the subject property located on the east side of Ringwood Road (Lot 29) of the Westshore Beach Subdivision in McHenry, IL, as presented by the applicant, Home of the Sparrow, subject to the following conditions: 1. No additional access points onto Ringwood Road from the subject property are permitted; and 2. Subject property shall be developed in substantial conformance with the site plan submitted as part of the application packet and comply with applicable City Ordinances. Responding to an inquiry from Alderman Santi, Director Martin informed Council that no engineering is required. Motion by Wimmer, second by Condon, approving the Ordinance granting a Use Variance to allow a parking lot as a principal use on the subject property located on the east side of Ringwood Road (Lot 29) of the Westshore Beach Subdivision in McHenry, Illinois, as presented by applicant Home of the Sparrow, subject to the following conditions: 1. No additional access points onto Ringwood Road from the subject property are permitted; and 2. Subject property shall be developed in substantial conformance with the site plan submitted as part of the application packet and comply with applicable City Ordinances. Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. Regular Meeting Page 7 December 7, 2015 MOTION TO ADOPT AN ORDINANCE GRANTING A CONDITIONAL USE PERMIT AND VARIANCES TO THE ZONING AND SUBDIVISION CONTROL & DEVELOPMENT ORDINANCES FOR AUTOMOBILE AND TRAILER SALES AND REPAIR FOR SUNNYSIDE COMPANY — CHRYSLER DODGE RAM, LOCATED AT 4810 W. ELM STREET Director of Economic Development Martin informed Council that the applicant currently operates a successful new and used car sales and repair business on West Elm Street, on the north and south sides of Elm Street. Director Martin noted that the car repairs are only conducted on the north side of Elm Street, while sales are conducted on both the north and south sides of Elm Street. The applicant is seeking a Conditional Use Permit to display vehicles and trailers outside for sale and Variances to facilitate a building expansion on the north side of Elm Street only, to accommodate a Jeep Franchise, as well as a Conditional Use Permit to display vehicles and trailers outside for sale on the south side of Elm Street, Director Martin stated that there are no substantive changes proposed on the south side of Elm Street. Director Martin informed Council that the proposed building addition (approximately 86' x 45' (3,870 square feet)) would be to the east side of the existing building on the north side of Elm Street. The addition would be approximately 17 feet from the eastern property line and align with the existing building on the other three sides. Director Martin noted that the subject property, north and south sides of Elm Street, has been utilized for automobile sales for over half a century. The property also lies within the West Route 120 Corridor Enhancement Initiative Area, which is bounded by Meadow Lane on the east and Ringwood Road on the west. Sunnyside has been contemplating the expansion on the north side of Elm Street for several years. The building expansion would allow Sunnyside to acquire the Jeep Franchise and enhance an area of Route 120, which has been struggling. Staff is extremely supportive of the proposed expansion and believes it will not have any adverse or deleterious impacts on abutting properties. Staff has included in the recommendation landscape improvements on both sides of Elm Street and a condition to ensure lighting and glare is minimized to abutting residential on both sides of Elm Street. Director Martin informed Council that the Planning and Zoning Commission unanimously recommended approval (5-0) of a Conditional Use Permit to allow an Open Sales Lot as a Principal Use on the subject property, north and south of Elm Street; ee: Approval of a conditional Use Permit to allow Motor Vehicle and Trailer Repair on the subject property, north side of Elm Street only, with the following conditions: • Outdoor display of leaking vehicles is prohibited; • Outdoor storage of inoperable vehicles, as defined by City Ordinances is prohibited; • All repair wok shall be conducted within the building (north side of Elm); Regular Meeting Page 8 December 7, 2015 • Vehicles for sale should not impede access or circulation and cannot occupy required customer or employee parking spaces; • Vehicles shall not be loaded or unloaded within the Commercial or Elm Street right-of- way; • Approval from IDOT shall be secured prior to the applicant receiving a Certificate of Occupancy; • Parking/striping should generally be delineated in the locations depicted on the site plan attached; • Vehicles displayed north and south of Elm shall not impede site lines or protrude onto the right-of-way; • Employee parking shall generally be to the west and north of the building as delineated on the site plan (north side of Elm Street); • Light trespass to the north from the portion of the subject property north of Elm and south from the portion of the subject property located south of Elm Street shall be prohibited and any after hour security lighting shall be minimal or controlled by motion sensors. All lighting shall be shielded directly onto the lot away from Lakeland Shores Subdivision on the south side of Elm and Lakeland Park Subdivision on the north side of Elm Street. Glare from the lighting should be minimized to the greatest extent practical, and the use of the full cut-off fixtures shall be required; • Outdoor storage is prohibited north and south of Elm Street; • Towing of vehicles shall only be permitted to bring vehicles to and from the site and not as a primary function of the business operation of selling vehicles, • Vehicles displayed shall be kept in an orderly manner; • Use of pennants, streamers, etc., on vehicles being displayed or on the building/site is prohibited; • There shall be no outdoor music or entertainment of any kind without the applicant applying for a Temporary Use Permit; • Lot west of the building on the north side of Elm shall be paved. And; Approval of Variances from Article V. Commercial Districts Table 6: Commercial District Requirements on the Subject Property to allow a required front yard of 6 feet on the north side of Elm Street and abutting Commercial Avenue; And; Variances from Article VIII. Landscaping and Screening on the Subject Property, to eliminate the requirement for fountain base plantings on the north side of Elm Street and residential screening strip requirement on the north side of Elm Street abutting Commercial Avenue and residential to the north with the following conditions: Regular Meeting Page 9 December7, 2015 1. A hedgerow of low -growing shrubs shall be placed adjacent to the parking areas on the north and south sides of Elm Street to screen headlights from shining onto elm Street; 2. Building addition shall be in substantial conformance with floor plan and elevation submitted as part of public hearing application packet; and I All new lighting standards and any other improvements not specifically addressed herein on the subject property, north and south of Elm Street, shall comply with all applicable City Ordinances; And; Variances from the Subdivision Control and Development Ordinance for allowing three curb cuts and a maximum driveway width on the north side of Elm Street, as presented. Alderman Wimmer opined that he is pleased to see the business evolving and expanding. Alderman Peterson concurred with Alderman Wimmer, Alderman Condon, Alderman Santi and Alderman Glab concurred with Alderman Wimmer. Responding to an inquiry about the screening between the subject property and the animal hospital, Director Martin assured Council that it meets the necessary requirements. Alderman Curry opined that it appears to be a great project. Mayor Low stated that Sunnyside has been a good partner with the City of McHenry for many years and she looks forward to the partnership continuing. Mr. Diedrich, owner of Sunnyside Chrysler Dodge Ram, thanked the Council for their time. Responding to an inquiry from the Council, Mr. Diedrich stated that the showroom will extend across the entire front of the building. Motion by Motion by Wimmer, second by Glab, adopting an Ordinance granting a Conon Use Permit and Variances to the Zoning and Subdivision Control &Development Ordinances for automobile and trailer sales and repair for Sunnyside Company — Chrysler Dodge Ram, located at 4810 W. Elm Street, as presented, subject to the conditions suggested by the Planning and Zoning Commission Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. Regular Meeting Page 10 December 7, 2015 MOTION TO AUTHORIZE THE MAYOR'S EXECUTION OF AN ECONOMIC INCENTIVE AGREEMENT BETWEEN THE CITY OF MCHENRY AND SUNNYSIDE AUTO FINANCE COMPANY Director of Economic Development Martin informed Council that Staff has been working with Sunnyside Dodge (Sunnyside) for several years to assist in facilitating the expansion of their current new vehicle showroom and service center at 4810 W. elm Street. The building expansion at 4810 W. Elm Street will allow Sunnyside to acquire the Jeep Franchise and remain at the location they have operated their business from for several decades. Acquiring the Jeep Franchise is anticipated to increase Sunnyside's sales by approximately 40-45%. Staff has been negotiating a sales tax rebate agreement with Sunnyside. The purpose of the rebate is to offset a portion of the costs which will be incurred, approximately $1,000,000, to construct an approximately 3,870 square foot building expansion onto the existing 10,625 square foot building. The negotiated Economic Incentive Agreement between the City of McHenry and Sunnyside Auto Finance Company establishes a threshold of $62,212, base sales tax, which represents the average sales tax received by the City of McHenry from Sunnyside over the past four years. Director Martin explained that a defined percentage within the Agreement exceeding the base threshold amount would be rebated to Sunnyside for a twenty year term, up to a maximum rebate of $300,000. It is estimated the City of McHenry will receive an additional $25,000-$30,000 in sales tax revenue following Sunnyside's acquisition of the Jeep Franchise and four to five positions will be filled following the completion of the proposed expansion. Director Martin explained that the proposed Incentive Agreement terminate on the earlier to occur of: (a) the City's Maximum Total Payment to Sunnyside ($300,000); (b) the Permanent Closure of Sunnyside prior to Sunnyside's receipt of the Maximum Total Payment; or (c) the end of the twentieth revenue year (December 31, 2036). Director Martin reiterated that the City of McHenry adopted an Economic Development Strategy in 2011, which set forth the evaluation criteria by which requests such as sales tax rebates should be evaluated. Additionally, in 2012 the Council adopted the West route 120 Corridor Enhancement Initiative, which includes the area on Elm Street from Meadow Land on the east to Ringwood Road on the west. Included within that program are "priority project," which are more desirable than others. Motor vehicle dealerships (new or expansion of existing) are included as priority projects. Staff believes the proposed agreement is fair and mutually beneficial to the City of McHenry and Sunnyside due to the extraordinary circumstances surrounding the area in question. Alderman Glab opined that economic incentives are an important component to the city. Motion by Santi, second by Glab, authorizing the Mayor's execution of an Economic Incentive Agreement between the City of McHenry and Sunnyside Auto Finance Company. Regular Meeting Page 11 December 7, 2015 Voting Aye Voting Nay Absent: Motion carried. Santi, Glab, Curry, Schaefer, Wimmer, Peterson, Condon. None. None. MOTION TO ADOPT THE 2014 REVISED MCHENRY COUNTY STORMWATER MANAGEMENT ORDINANCE City Administrator Morefield reiterated to Council that the McHenry County Board adopted an Amended Stormwater Management Ordinance (SMO) on November 18, 2014. The Amended Ordinance became effective December 1, 2014 and includes countywide standards for regulated development. Many municipalities, such as the City of McHenry, are presently certified by McHenry County to issue permits and enforce the provisions of the existing SMO. In order to remain certified the City must adopt a new Ordinance that is at least as stringent as the County's Amended SMO. Verification an updated Ordinance has been adopted must be submitted to McHenry County no later than December 31, 2015. If verification is not submitted by this date the City of McHenry may lose its ability to issue Stormwater Permits. City Administrator Morefield noted that the amendment to the Ordinance are minimal and consist mainly of inconsistencies in terms, definitions and regulatory standards. He stated that the impact(s) of the amendments to the City of McHenry are minimal and should not detract from the City's ability to continue to be responsive in reviewing Stormwater Permits. Motion by Schaefer, second by Condon, adopting the Ordinance Amending Chapter 17 of the City of McHenry Municipal Code to adopt the Revised McHenry County Stormwater Management Ordinance, as Amended on December 1, 2014. Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. RECOMMENDATION TO APPROVE 2016 HEALTH INSURANCE COVERAGE AS FOLLOWS_: 1. THE BLUE CROSS BLUE SHIELD PPO, HRA AND HMO PLANS FOR HEALTH COVERAGE DURING THE 2016 PLAN YEAR; 2. THE CURRENT IN-HOUSE DEDUCTIBLES FOR THE BLUE CROSS BLUE SHIELD HRA PLAN FOR THE 2016 PLAN YEAR; 3. THE BLUE CROSS BLUE SHIELD PPO DENTAL PLAN FOR THE 2016 PLAN YEAR; AND 4. THE RENEWED VSP VISION COVERAGE PLAN FOR THE 2016 PLAN YEAR Director of Human Resources Campanella informed the Council that the City has offered employees the choice of three medical plans for the past six years, together with vision and dental insurance. Regular Meeting Page 12 December 7, 2015 Director Campanella stated that annually the City Administration works through its insurance broker to obtain the most competitive quotes using the existing plans as a base. Once the quotes are received, the broker works on the City's behalf to negotiate the lowest possible rates for the various insurance coverage options. The City Administration then reviews the quotes submitted with the broker and conducts an analysis of various models and structures the insurance plan. The Administration continues striving to balance the cost of health insurance with the benefit to employees. Health Insurance: For the coming year, Staff is recommending approval of the BCBS PPO Plan. The HRA Plan and the HMO Plan. During the 2016 plan year, the estimated total BCBS expenses will be $2,145,686 (included in the total is $121,000 for the 100% excess deductible reimbursement on the HRA Plan). As a point of reference, City Administrator Morefield noted that the City of McHenry has been with BCBS of Illinois since 2009. This year the City of McHenry reduced the renewal rate from over 13% in 2015 to 10% in 2016. Dentallnsurance: The dental benefit currently offered to City employees is a BCBS Dental PPO Plan. The Plan provides for in -network and out -of -network benefits. Staff obtained quotes from the market for comparable dental PPO plans through the insurance broker. There is a minor increase of $807 from the previous year. For the current plan year, Staff is recommending remaining with BCBS PPO Plan. Vision Insurance: Vision Services Plan (VSP) provided a rate guarantee. The 2016 estimated total vision premiums will be $11,226.96. Director Campanella stated that the combined cost for Health, Dental and Vision insurance for the 2015 plan year is $1,990,581.08. Additionally, the City will contribute $674,000 towards Local 150 insurance. Director Campanella informed Council that an "Opt Out" program was implemented in 2015. This Plan offered a cash incentive to employees who are able to waive health insurance coverage and reduce the number of dependents on the Plan. The "Opt Out" Plan was implemented at no additional cost to the City and it is estimated the "Opt Out" plan may save the City as much as $75,000 annually. Responding to an inquiry from Alderman Curry regarding why three plans are offered when one of the plans appears to be rarely used, Director Campanella informed Council that three different options are offered to provide employees with options that are competitive while still remaining fiscally responsible. Regular Meeting Page 13 December 7, 2015 Mayor Low complimented Director Campanella on the high level of professionalism she has brought to her position in the year she has been with the City of McHenry. Motion by Curry, seconded by Wimmer, approving: 1. Blue Cross Blue Shield PPO, HRA and HMO Plans for Health Coverage in the 2016 plan year; 2. The current in-house deductibles for the BCBS HRA Plan for the 2016 plan year; 3. Blue Cross Blue Shield PPO Dental Plan for the 2016 plan year; and 4. Renewal of the VSP Vision Plan for the 2016 plan year. Voting Aye: Santi, Glab, Curry, Schaefer, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. MAYOR'S STATEMENT AND REPORT Mayor Low informed Council that she would like to recommend the appointment of George Lamm to the McHenry County Landmark Commission. Mr. Lamm will fill the vacancy created by the retirement of Marya Dixon. Motion by Santi, second by Condon approving the Mayor's recommendation to appoint George Lamm to the McHenry County Landmark Commission. Voting Aye: Santi, Glab, Schaefer, Curry, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. COMMITTEE REPORTS Chairman Alderman Condon of the Community Development Committee, informed Council that a Special Meeting of the Community Development Committee took place on Monday, November 30, 2015, and minutes would be forthcoming. Chairman Alderman Schaefer of the Public Works Committee, informed Council that a meeting of the Public Works Committee was held prior to tonight's Council meeting, and minutes would be forthcoming. STAFF REPORTS Director of Public Works Schmitt informed Council that the holiday light recycling program is taking place again this year. The program began last week and will continue until the end of February 2016. Lights can be dropped off at the Public Works Building from 7:00 am to 3:30 pm, Monday through Friday and also at the Municipal Center from 8:00 am to 5:00 pm, Monday through Friday. Regular Meeting Page 14 December 7. 2015 FUTURE AGENDA ITEMS There were no Future Agenda Items. EXECUTIVE SESSION Motion by Wimmer, seconded by Santi, to adjourn to Executive Session, pursuant to 5 ILCS 120/2(c)(11), to discuss probable action on behalf of or affecting the City at 8:00 pm. Voting Aye: Santi, Glab, Schaefer, Curry, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. Motion by Peterson, seconded by Curry, to return to Open Session at 9:35 pm. Voting Aye: Santi, Glab, Schaefer, Curry, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. Council returned to Open Session at 9:35 pm. ADJOURNMENT Motion by Wimmer, seconded by Condon, to adjourn the meeting at 9:35 pm. Voting Aye: Santi, Glab, Schaefer, Curry, Wimmer, Peterson, Condon. Voting Nay: None. Absent: None. Motion carried. The meeting was adjourned at 9:35 pm. City Clerk