HomeMy WebLinkAboutPacket - 10/05/2020 - City Council
The City of McHenry is dedicated to providing its citizens, businesses, and visitors with the highest quality of programs and services in
a customer-oriented, efficient, and fiscally responsible manner.
AGENDA
REGULAR CITY COUNCIL MEETING
Monday, October 5, 2020, 7:00 p.m.
In light of the current COVID-19 public health emergency, this meeting will be held remotely only.
The public can observe and participate by connecting online at:
https://cityofmchenry.zoom.us/j/92548826317 or call in to the following number: +1 312 626 6799,
Meeting ID: 925 4882 6317, Passcode: 856007
1. Call to Order.
2. Roll Call.
3. Pledge of Allegiance.
4. Public Comments:
If you wish to submit any public comment, please email: dmorefield@cityofmchenry.org in advance
of the meeting. The City will read such public comments during the public commentary portion of
the meeting and the comments will be entered into the official record of the meeting. Any comments
received during the meeting will be provided in writing to the Council after the meeting.
5. Consent Agenda: Motion to Approve the Following Consent Agenda Items:
A. Adoption of revised Purchasing Policies and Procedures dated October 5, 2020;
B. September 8, 2020 City Council Amended Meeting Minutes;
C. September 21, 2020, City Council Meeting Minutes;
D. Issuance of Checks in the amount of $172,540.84.
6. Individual Action Item Agenda
A. Motion to approve or deny a Video Gaming License to Don’s Subs located at 323 Front Street.
B. Motion to adopt a Parameters Ordinance providing for the issuance not to exceed $29 Million
Taxable General Obligation Bonds (series 2020B) for the purpose of funding all or a portion of
the unfunded liability of the City’s Police Pension Fund; a Budget Stabilization Fund for such
unfunded liability; the levy and collection of a direct annual tax for the payment of and interest
on the bonds; and, the sale of the bonds to Robert W. Baird & Co. Incorporated.
C. Contingent upon the approval of Agenda Item 6B, the adoption of a Resolution Approving a
Pension Obligation Bond Policy.
D. Motion to approve a Parameters Ordinance providing for the issuance of not to exceed
$3,300,000 General Obligation Refunding Bonds, Series 2020A, for the purpose of refunding
certain outstanding general obligation bonds of the City; providing for the levy and collection of
a direct annual tax sufficient to pay the principal of and interest on said bonds; authorizing and
directing the execution of an escrow agreement in connection with the issuance of the bonds;
and, authorizing the sale of the bonds to Robert W. Baird & Co Incorporated.
7. Discussion Items.
A. Pre-Submittal input regarding the redevelopment of 3510 W. Elm Street
8. Staff Reports.
9. Mayor’s Report.
A. Input regarding returning to in-person meetings beginning October 19, 2020.
10. City Council Comments.
11. Executive Session if Needed.
12. Adjourn.
The complete City Council packet is available for review online via the City website at www.cityofmchenry.org. For further
information, please contact the Office of the City Administrator at 815-363-2108.
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.
i~.0% Derik Morefield, City Administrator
McHenry Municipal Center
McHen333ry, IllinoisGreen 60050Street
Phone: (815) 363-2100
Fax: (815) 363-2119
McHenrdmorefield@ci.mchenry.il.us
CONSENT AGENDA ITEM
DATE: October 5, 2020
TO:Mayor and City Council
FROM: Derik Morefield, City Administrator
RE:Adoption of an Updated Purchasing Policy and Procedures
ATT: Existing Purchasing Policy and Procedures
Revised Purchasing Policy and Procedures
AGENDA ITEM SUMMARY:
The purpose of this agenda item is to request the adoption of an updated Purchasing Policy and
Procedures document.
BACKGROUND/SUMMARY:
The City last updated the Purchasing Policy and Procedures in 2014. At that time significant effort
was placed into establishing a set of guidelines for purchasing, purchasing authority designation,
and addressing the issue of cost comparison/quotations/competitive bidding. At this time, based
on input from Department Directors and the City Attorney, it is being recommended that an
updated policy be considered. In summary, this new policy achieves the following:
Increases the Expenditure Approval Authority for Supervisors/Managers, Department
Directors, and the Mayor/Finance Director/City Administrator for budgeted items
approved by Council in the annual fiscal year budget.
Further clarifies guidelines for when cost comparisons, quotations, and competitive
bidding is required.
Further clarifies approval procedures for unbudgeted and emergency expenditures.
Provides a procedure for the consideration of change orders for capital projects.
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.
As with the previous policy, these procedures will be referred to and followed for expenditure of
public dollars. Further, the policy will be included in future annual fiscal year budgets that are
approved by the City Council.
RECOMMENDATION:
Therefore, if Council concurs, it is recommended that the attached revised Purchasing Policy
and Procedures dated October 5, 2020 be adopted.
Purchasing Policy and Procedures
General Rules, Regulations and Ethics
Purchasing activities for the City of McHenry shall be in accordance with this Purchasing Policy,City
Ordinances and applicable Statutes of the State of Illinois.
Items procured will represent the maximum economical benefit for each dollar spent.
Procurement shall be made of commodities and services of high quality and continued availability.
Whenever possible, purchases shall be based on obtaining cost comparisons, quotations or
competitive bids. In the case that it is not possible to obtain cost comparisons, quotations or
competitive bids, this will be identified in the approval and review process.
Purchases shall be based on obtaining better knowledge of methods and of commodities required
to operate cost effectively.
Local participation will be encouraged in the procurement process.
Consideration should be given to participate in cooperative purchasing efforts with other local
government entities and in the State of Illinois Joint Purchasing Program whenever possible.
All personnel involved in the purchasing process shall conduct themselves with fairness and
impartiality, and demand the same of all vendors.
Negotiations and discussions involving purchasing shall be conducted in compliance with the Code
of Ethics and Rules of Conduct in the City's Personnel Handbook.
The purchasing process will promote professionalism and be committed to the efficiencies of
centralized purchasing.
Approval Requirements& Delegations of Authority
The purpose of this procedure is to outline the required approvals for all purchase commitments
and transactions, and secondly, to define City personnel by classification who are authorized to
initiate purchases at various monetary levels for materials, equipment, supplies and services.
All designated personnel shall obtain the required approval(s) prior to final commitment. If one or
more person's approval is required who is not available, the approval must be obtained from the
next highest level of authority of approval level.
Prior to approval for payment by the City Council, Department Directors and the City Administrator
must approve all purchase invoices for those transactions and commitments of authorized
supervisors and employees.
The following table establishes the required levels of approval based on the dollar amount of the
purchase:
Authorized Employees City Mayor or
Administrator
Amount
Supervisors/Managers Department
or Finance City Mayor and
Directors
Director
Administrator
City Council
750 or less X X X
751 to$3,500 X X
3,501 to$6,500 X
6,501 to
10,000
X
More than
10,000
X
The following table lists those position classifications authorized to initiate purchases in
relationship to the prescribed dollar amounts (from above). Those position classifications not
shown below are strictly prohibited from purchasing unless otherwise authorized by the City
Administrator or Finance Director.
Dollar Amounts Authorized Position(s)
More than $10,000 Mayor and City Council in accordance with
Budgeted Items — Cost Comparisons,
Quotations and Competitive Bidding" section of
this policy*
6,501 - $10,000 Budgeted Items with the authorization of the
Mayor or City Administrator in accordance with
Budgeted Items — Cost Comparisons,
Quotations and Competitive Bidding" section of
this policy*
3,501-$6,500 Budgeted Items with authorization of the Finance
Director or City Administrator in accordance with
Budgeted Items — Cost Comparisons,
Quotations and Competitive Bidding" section of
this policy*
751 -$3,500 Budgeted Items with authorization of the
Department Director in accordance with
Budgeted Items — Cost Comparisons,
Quotations and Competitive Bidding" section of
this policy*
750 or less Budgeted Items by Employees authorized by
their immediate Superintendent, Manager, or
Department Director in accordance with
Budgeted Items — Cost Comparisons,
Quotations and Competitive Bidding" section of
this policy*
For items not identified as"Budgeted Items", budget amendment requests will be brought before the
City Council for consideration/approval for items over $6,500 unless the action is considered
emergency in nature. Should this be the case, Council will be notified of the purchase/acquisition and
the item will be presented for approval at the next regular meeting of the City Council.
Definitions of authorized positions:
Authorized Dollar
Amount
Authorized Position(s)
750 or less Authorized Employees: (must have prior approval of their
immediate Supervisor, Manager, or Department Director)
Executive Assistant/Deputy City Clerk
Administrative Assistants (all departments)
Public Works Maintenance Worker
Public Works Operator
Public Works Mechanic
Parks& Recreation Maintenance Worker
Public Works Project Engineer
Community Development Plumbing Inspector
Community Development Code Enforcement Officer
Community Development Permit Technician
Supervisors/Managers:
Public Works Water Division Superintendent
Public Works Wastewater Division Superintendent
Public Works Street Division Superintendent
Public Works Wastewater Division Assistant
Superintendent
Public Works Utility Division Superintendent
Public Works Forestry Division Superintendent
Community Development Superintendent of Residential
Inspections
Community Development Superintendent of Commercial
Inspections
Parks & Recreation Parks Division Superintendent
Parks& Recreation Parks Division Assistant Superintendent
Parks & Recreation Recreation Center Manager
Recreation Superintendent of Programs
Recreation Superintendent of Athletics &Aquatics
Police Deputy Chief
Police Commander of Operations
Police Commander of Support Services
Police Sergeants
Police Dispatch Supervisor
Information Technology Manager
751 -$3,500 Department Directors:
Deputy City Administrator/Director of Parks & Recreation
Director of Economic Development
Director of Community Development
Director of Finance
Director of Public Works
Chief of Police
3,501 -$6,500 City Administrator or Finance Director
6,501-$10,000 Mayor or City Administrator
More than $10,000 May and City Council
Budgeted Items—Cost Comparison, Quotations and Competitive Bidding
For budgeted items under$6,500 authorized positions shall obtain, where possible, three (3) cost
comparisons prior to the purchase of goods and/or services.
For budgeted items between$6,501 and$10,000 authorized positions shall obtain,where possible,
three (3) cost comparisons or three (3) written quotations prior to the purchase of goods and/or
services.
For budgeted items over$10,000, but less than $20,000, staff shall obtain, where possible, three
3)written quotations for the purchase of goods and/or services for consideration and approval by
the City Council.
For budgeted items over $20,000, the purchase of goods and/or services shall follow a formal
competitive bidding process whereby staff develops bid specifications, Council approves a request
to advertise for bids, bids are received and evaluated, and a recommendation is forwarded to the
City Council for award/approval.
Purchasing Policy and Procedures (Revised October 5, 2020)
A. General Rules, Regulations and Ethics
Purchasing of goods and services for the City of McHenry shall be in accordance with this Purchasing
Policy, City Ordinances and applicable statutes of the State of Illinois. Items procured must represent the
maximum economic benefit for each dollar spent. Purchases shall be of high quality and continued
availability. Purchases shall be based on obtaining cost comparisons, quotations, or competitive bids.
Purchases shall be based on obtaining better knowledge of methods and of commodities required to
operate cost effectively. Local participation will be encouraged in the purchasing process. Consideration
should be given to participate in cooperative purchasing efforts with other local government entities and
in the State of Illinois Joint Purchasing Program whenever possible.
All personnel involved in the purchasing process shall conduct themselves with fairness and impartiality
and demand the same of all vendors. Negotiations and discussions involving purchases shall be conducted
in compliance with the Code of Ethics and Rules of Conduct in the City's Personnel Handbook. The
purchasing process shall promote professionalism and be committed to the efficiencies of centralized
purchasing.
B. Expenditure Approval Authority
The following table includes the personnel authorized to make purchases and the amount each are
authorized to spend on items included in the annual fiscal year budget, as approved by the City Council:
Mayor, City
Budgeted Designated Supervisors/Managers Department Administrator
Amounts Employees* Directors or Finance
Director
Less than X
X X X
750
Less than X
X X
2,500
Less than
10,000
X X
Less than
20,000
X
Designated Employees:
Executive Assistant/Deputy City Clerk
Coordinators and Analysts
Administrative Assistants (all departments)
Public Works Maintenance Worker
Public Works Operator
Public Works Mechanic
Parks& Recreation Maintenance Worker
Public Works Project Engineer
Community Development Plumbing Inspector
Community Development Code Enforcement Officer
Community Development Permit Technician
C. Purchasing Procedure for Budgeted Items
The following purchasing procedures apply to budgeted amounts, excluding architectural,
surveying or engineering, legal, auditing, information technology or other professional services.
a. For budgeted items from $2,500.00 to $9,999.99, three (3) cost comparisons shall be
obtained prior to all purchases.
b. For budgeted items from $10,000.00 to$19,999.99,three (3)written quotations shall be
obtained prior to all purchases.
c. For budgeted items$20,000.00 and over,all purchases shall follow a competitive bidding
process whereby bid specifications are developed, bids solicited, bids are received and
evaluated by staff, and a recommendation is forwarded to the City Council for
award/approval. The City Council reserves the right to waive the competitive bidding
process upon the vote of 2/3 of the City Council members then holding office.
D. Purchasing Procedure for Non-budgeted Amounts
For all purchases that are not included in the annual fiscal year budget, a budget amendment
request must be approved by the City Council prior to purchase, unless the actions are considered
emergency in nature. Once approved, purchases may be made in accordance with the
Expenditure Approval Authority set forth above.
E. Purchasing Procedure—Emergencies
For all purchases considered emergency in nature by the City Administrator or Mayor, such as
threats to public health or safety, where immediate repairs to City property are required to
protect or prevent against further loss or damage, or where immediate action is needed to
prevent or minimize serious disruption to City services, competitive purchasing procedures, as
directed by the Mayor or City Administrator under the circumstances, shall be used. The City
Council shall be notified of the emergency circumstances and the expenditure amount and the
item will be presented for formal approval or ratification at the next regular meeting of the City
Council.
F. Change Orders
Change orders $20,000.00 and over shall be brought before the City Council unless specifically
authorized in the bid selection process. However, if a change order for any public works contract
authorizes or necessitates any increase in the contract price that is fifty percent(50%) or more of
the original contract price or that authorizes or necessitates any increase in the price of a
subcontract under the contract that is fifty percent (50%) or more of the original subcontract
price, then the portion of the contract that is covered by the change order must be resubmitted
for bidding in the same manner for which the original contract was bid pursuant to the Public
Works Contract Change Order Act, 50 ILCS 525.
irs...
1
City of McHenry
333 S Green Street
r McHenry, Illinois 60050
v
Phone: (815) 363-2100
Fax: (815) 363-2119
www.ccityofmchenry.org
MCHenr CONSENT AGENDA ITEM
NC RT Of TYC•O1 RNCA
DATE: October 5, 2020
TO:City Council
FROM: Monte Johnson
RE:Amended Minutes of September 8, 2020
AGENDA ITEM SUMMARY:
It is recommended that Council consider the approval of an amended set of minutes for the
September 8, 2020, City Council meeting. The portion of the minutes being recommended for
amendment are regarding the discussion and action regarding the annexation of parcels.
In reading the current set of minutes, under the title "E. Motion to approve Ordinances
annexing currently unincorporated parcels at 202 Barreville Road", it states that the property is
owned by the Adams' and how there are animals on the property. This was part of the
discussion of the other parcels, which are listed separately and later in the current set of
minutes. The reason for amending would be for clarification.
Because these minutes were previously approved, I did not want to make any changes without
approval of the Council.
Enclosed are the previously approved minutes as well as an amended set of minutes that
reflects an accurate of the discussion of annexing and tabling the parcels.
If Council concurs, then a motion to approve the amended minutes of September 8, 2020 is
recommended.
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.
City of McHenry Council
Meeting Minutes
9.8.20
McHe
MINUTES
REGULAR CITY COUNCIL MEETING
Tuesday, September 8, 2020, 7:00 p.m.
In light of the current COVID-19 public health emergency, this meeting will be held remotely
only. The public can observe by connecting online at:
https://cityofmchenry.zoom.us/j/6088273734
The public can also call in to the following number: +1 312 626 6799, Meeting ID 608 827
3 734
Call to Order: The City Council of the City of McHenry, Illinois, met in regular session on
Tuesday, September 8, 2020, at 7:00 p.m, remotely.
Roll Call: Mayor Jett called the roll call.
Members present: Alderman Santi, Alderman Glab, Alderman Schaefer, Alderman Harding,
Alderman Mihevc, Alderman Devine, Alderwoman Miller, 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, Chief of Police Birk,City
Planner Sheriff, and City Clerk Ramel.
Pledge of Allegiance: Mayor Jett led the pledge
Public Comments: No Public Comment
Consent Agenda: Motion to Approve the Following Consent Agenda Items:
A. An Ordinance Pertaining to the Local Cure Program; (Morefield)
B. Rejection of all bids received for the 2020 Fall Street Sweeping Program; (Strange)
C. Motion to authorize the Mayor's execution of an amended Intergovernmental Agreement
between the City of McHenry Division of Transportation and the City of McHenry for
Phase I Engineering and authorization for staff to accept the transfer of the project lead
to McHenry County upon execution for the Bull Valley Multi-Use Path Project; (Strange)
D. Motion to approve Services Change Order#2 for the Bull Valley Bike Path to Hampton,
Lenzini and Renwick, Inc. in the amount of$48,634.12; (Strange)
F. August 17, 2020, City Council Meeting Minutes;
G. Issuance of Checks in the amount of $600,914.79.
1
City of McHenry Council
Meeting Minutes
9.8.20
A motion was made by Alderman Santi and seconded by Alderman Harding to
approve Consent Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi,
Alderman Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc, Alderman
Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried.
Consent Agenda: Motion to Approve the Following Consent Agenda Item:
E. McHenry Parks & Recreation Facilities & Special Use Permit Requests; (Hobson)
Pulled by Alderman Devine he wants to abstain from this with Alderwoman miller.
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
Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc. 0-nays, 2-abstained-
Alderman Devine, Alderwoman Miller. Motion carried.
Individual Action Item Agenda:
A. Motion to approve the transfer of a Class C Liquor License from JOG Gasoline Inc.,
located at 4608 W. Crystal Lake Road, to Pazo Oil LLC. (Jett)
A motion was made by Alderwoman Miller and seconded by Alderman Santi to approve
Individual Agenda items as presented. Roll Call: Vote: 7-ayes: Alderman Santi, Alderman
Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine,
Alderwoman Miller. 0-nays, 0-abstained. Motion carried.
Alderman Glab agreed with this item as long as background check is approved. Alderman
Scahefer asked if Mayor has met the new applicants yet, he has not and doesn't have to. No
public comment.
B. Motion to approve Ordinances granting a Conditional Use Permit to allow Outdoor
Storage in conjunction with a towing business at 1302 Borden Street. (Polerecky)
Petitioners for this item were on the call if needed for questions. The storage will be screened
from publics view. Alderman Santi wished them good luck. No public comment.
A motion was made by Alderman Santi and seconded by Alderwoman Miller to approve
Individual Agenda items as presented. Roll Call: Vote:7-ayes: Alderman Santi, Alderman
Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine,
Alderwoman Miller. 0-nays, 0-abstained. Motion carried.
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City of McHenry Council
Meeting Minutes
9.8.20
C. Motion to approve and execute a Commercial Tenant Incentive Grant in the amount of
10,000 to Miller's Diner, located at 3918 Main Street. (Martin)
Alderman Santi stated that Kim the owner has invested close to $60,000 into the business. As
reviewed with the owner Kim, the she has remodeled the inside and purchased some
equipment, also got a signed awning. Alderman Schaefer asked if she was purchasing some
locally, it was confirmed that some items were purchased in Round Lake due to the product
not being available in McHenry, will use local suppliers in McHenry if she can, always her first
choice. Alderman Devine wanted to know how many times these grants have been given out,it
was confirmed that this is the first one. No public comment.
A motion was made by Alderman Santi and seconded by Alderman Schaefer to approve
Individual Agenda items as presented. Roll Call: Vote:6-ayes: Alderman Santi, Alderman
Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine, Alderwoman Miller. 1-nays-
Alderman Glab, 0-abstained. Motion carried.
D. Motion to approve and execute a Commercial Tenant Incentive Grant in the amount of
5,000 to Pineapple X-Pressed, located at 1104 N. Green Street. (Martin)
This is a new business, just opened up a few months ago. Looking to use this grand for new
blenders, prep table and outdoor seating. NO public comment.
A motion was made by Alderman Santi and seconded by Alderman Schaefer to approve
Individual Agenda items as presented. Roll Call: Vote: 6-ayes: Alderman Santi, Alderman
Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine, Alderwoman Miller. 1-nays-
Alderman Glab, 0-abstained. Motion carried.
E. Motion to approve Ordinances annexing currently unincorporated parcels at 202
Barreville Road,
There was thought of withdrawing this but was left in for this agenda, to review, per Attorney
McArdle. This property is owned by the Adams and it is leased by another party. Alderwoman
Miller is in support of the annexation, would like to move forward with the process. Some talk
went on for a while regarding this topic. Most of the discussion was regarding the animals that
do occupy the property.
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City of McHenry Council
Meeting Minutes
9.8.20
A motion was made by Alderman Schaefer and seconded by Alderwoman Miller to
approve Individual Agenda items as presented. Roll Call: Vote: 7-ayes: Alderman Santi,
Alderman Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine,
Alderwoman Miller. 0-nays -, 0-abstained. Motion carried.
A Motion to table the annexations of 219 Barrenville Road, 223 Barrenville Road, and the
property located north of River Road and South Elm Street.
A motion was made by Alderman Sant and seconded by Alderman Glab to approve
Individual Agenda items as presented. Roll Call: Vote: 7-ayes: Alderman Santi, Alderman
Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine,
Alderwoman Miller. 0-nays -, 0-abstained. Motion carried.
Discussion Items:
A. Location of a marijuana dispensary at 408 State Route 31 (supplement provided;
Martin/McArdle)- Removed from this evenings agenda.
B. Vacation of right of way in the Hanly Subdivision (supplement provided; Polerecky).
Alderman Glab wanted to know if can be vacated still with a dedicated easement. Still needs
to be covered liability with insurance per Attorney McArdle, because they hold an interest in
the property. The property owners are maintaining it and most of The Council wants to move
forward with this.
C. Correction to December 2019 Update of Capital Development Fee Structure
supplement provided; Polerecky).
Error in the math that Baxter and Woodman provded, it was caught and wanted the
transparency to The Council that it happened, there was spreadsheet error on their report.
D. Issuance of Pension Obligation Bonds for Outstanding Police Pension Liability (no
supplement; Lynch).
Dalena Welkomer and Stefan Roberts gave a presentation from the Baird Public Finance
Group. The presentation was regarding the City's Police Pension Fund. They explained
interest rates and return on the plans. The benefits were explained to The Council as well
regarding Obligation Bonds.
There was some follow up questions from The Council, following the lengthy and throughout
presentation. The discussion continued on for a while. Mayor Jett asked the time frame, per
Director of Finance Lynch, the 5th of October would be great for them to bring more back to
The Council if wanting to move forward. 1
Alderman Santi wanted the presentation to review before then. Many members would like to
move forward after reviewing the information on their own. Director Lynch concluded that she
would get the information over to The Council per their requests.
4
City of McHenry Council
Meeting Minutes
9.8.20
Staff Reports:
A. Transmittal of FY20/21 1st Quarter Financial Report (Lynch)
Director Lynch explained the Financial Report to The Council.
Mayor's Report: Nothing to report.
City Council Comments: Director of Parks and Recreation Hobson, talked about the boat
rental it did open this weekend, it turned into a nice project for the city. This Saturday will be
the first lighting of the fire globes, there are three additional ones. Will be lighted every Saturday
for the next 8 weeks. This Saturday modified Art in the Park. 9/11 event will be a FB live event
where you can raise onto the flag.
Alderman Santi said that he had fun at the rentals.
Executive Session: Not at this time.
Adjourn: A motion was made Alderman Santi and seconded by Alderman Schaefer to
adjourn the meeting at 9:35 PM. Roll Call: Vote:7-ayes: Alderman Santi, Alderman Glab,
Alderman Schaefer, Alderman Harding-absent, Alderman Mihevc, Alderman Devine,
Alderwoman Miller. 0-nay-, 0-abstained. Motion carried.
X LI
Mayor Wayne Jett City Clerk Trisha Ramel Q/
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5
City of McHenry Council
Meeting Minutes
f
9.8.20
V f
McHenr
MINUTES
REGULAR CITY COUNCIL MEETING
Tuesday, September 8, 2020, 7:00 p.m.
In light of the current COVID-19 public health emergency, this meeting will be held remotely
only. The public can observe by connecting online at:
https://cityofmchenry.zoom.us/I/6088273734
The public can also call in to the following number: +1 312 626 6799, Meeting ID 608 827
3 734
Call to Order: The City Council of the City of McHenry, Illinois, met in regular session on
Tuesday, September 8, 2020, at 7:00 p.m, remotely.
Roll Call: Mayor Jett called the roll call.
Members present: Alderman Santi, Alderman Glab, Alderman Schaefer, Alderman Harding,
Alderman Mihevc, Alderman Devine, Alderwoman Miller, 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, Chief of Police Birk,City
Planner Sheriff, and City Clerk Ramel.
Pledge of Allegiance: Mayor Jett led the pledge
Public Comments: No Public Comment
Consent Agenda: Motion to Approve the Following Consent Agenda Items:
A. An Ordinance Pertaining to the Local Cure Program; (Morefield)
B. Rejection of all bids received for the 2020 Fall Street Sweeping Program; (Strange)
C. Motion to authorize the Mayor's execution of an amended Intergovernmental Agreement
between the City of McHenry Division of Transportation and the City of McHenry for
Phase I Engineering and authorization for staff to accept the transfer of the project lead
to McHenry County upon execution for the Bull Valley Multi-Use Path Project; (Strange)
D. Motion to approve Services Change Order#2 for the Bull Valley Bike Path to Hampton,
Lenzini and Renwick, Inc. in the amount of$48,634.12; (Strange)
F. August 17, 2020, City Council Meeting Minutes;
G. Issuance of Checks in the amount of $600,914.79.
1
City of McHenry Council
Meeting Minutes
9.8.20
A motion was made by Alderman Santi and seconded by Alderman Harding to
approve Consent Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi,
Alderman Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc, Alderman
Devine, Alderwoman Miller. 0-nays, 0-abstained. Motion carried.
Consent Agenda: Motion to Approve the Following Consent Agenda Item:
E. McHenry Parks & Recreation Facilities & Special Use Permit Requests; (Hobson)
Pulled by Alderman Devine he wants to abstain from this with Alderwoman miller.
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
Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc. 0-nays, 2-abstained-
Alderman Devine, Alderwoman Miller. Motion carried.
Individual Action Item Agenda:
A. Motion to approve the transfer of a Class C Liquor License from JOG Gasoline Inc.,
located at 4608 W. Crystal Lake Road, to Pazo Oil LLC. (Jett)
A motion was made by Alderwoman Miller and seconded by Alderman Santi to approve
Individual Agenda items as presented. Roll Call: Vote: 7-ayes: Alderman Santi, Alderman
Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine,
Alderwoman Miller. 0-nays, 0-abstained. Motion carried.
Alderman Glab agreed with this item as long as background check is approved. Alderman
Scahefer asked if Mayor has met the new applicants yet, he has not and doesn't have to. No
public comment.
B. Motion to approve Ordinances granting a Conditional Use Permit to allow Outdoor
Storage in conjunction with a towing business at 1302 Borden Street. (Polerecky)
Petitioners for this item were on the call if needed for questions. The storage will be screened
from publics view. Alderman Santi wished them good luck. No public comment.
A motion was made by Alderman Santi and seconded by Alderwoman Miller to approve
Individual Agenda items as presented. Roll Call: Vote:7-ayes: Alderman Santi, Alderman
Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine,
Alderwoman Miller. 0-nays, 0-abstained. Motion carried.
2
City of McHenry Council
Meeting Minutes
9.8.20
C. Motion to approve and execute a Commercial Tenant Incentive Grant in the amount of
10,000 to Miller's Diner, located at 3918 Main Street. (Martin)
Alderman Santi stated that Kim the owner has invested close to $60,000 into the business. As
reviewed with the owner Kim, the she has remodeled the inside and purchased some
equipment, also got a signed awning. Alderman Schaefer asked if she was purchasing some
locally, it was confirmed that some items were purchased in Round Lake due to the product
not being available in McHenry, will use local suppliers in McHenry if she can, always her first
choice. Alderman Devine wanted to know how many times these grants have been given out,it
was confirmed that this is the first one. No public comment.
A motion was made by Alderman Santi and seconded by Alderman Schaefer to approve
Individual Agenda items as presented. Roll Call: Vote:6-ayes: Alderman Santi, Alderman
Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine, Alderwoman Miller. 1-nays-
Alderman Glab, 0-abstained. Motion carried.
D. Motion to approve and execute a Commercial Tenant Incentive Grant in the amount of
5,000 to Pineapple X-Pressed, located at 1104 N. Green Street. (Martin)
This is a new business, just opened up a few months ago. Looking to use this grand for new
blenders, prep table and outdoor seating. NO public comment.
A motion was made by Alderman Santi and seconded by Alderman Schaefer to approve
Individual Agenda items as presented. Roll Call: Vote: 6-ayes: Alderman Santi, Alderman
Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine, Alderwoman Miller. 1-nays-
Alderman Glab, 0-abstained. Motion carried.
Deputy Clerk's Note: The previously approved portion of the minutes stricken below
have been amended with "Exhibit A, Amended Discussion Regarding Annexation of
Parcels".
arrey/lie l oad
i
There was thought of withdrawing this but was left In for thisi ageendra, to rceyiew, nor ttorney
McArdle. This property is owned by the Adams and it is leased by another party. Alderwoman
do occupy the property.
3
City of McHenry Council
Meeting Minutes
9.8.20
Alderwoman Miller. 0 nays , 0 abstained. Motion carried.
property located north of River Road and South Elm Street.
Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine,
lder Oman Miller 0 n 0abst fined AAo carTriiedTT!'A'T!T!'GT.-PST , ri7TC TTlTi1TTVTV
Discussion Items:
A. Location of a marijuana dispensary at 408 State Route 31 (supplement provided;
Martin/McArdle)- Removed from this evenings agenda.
B. Vacation of right of way in the Hanly Subdivision (supplement provided; Polerecky).
Alderman Glab wanted to know if can be vacated still with a dedicated easement. Still needs
to be covered liability with insurance per Attorney McArdle, because they hold an interest in
the property. The property owners are maintaining it and most of The Council wants to move
forward with this.
C. Correction to December 2019 Update of Capital Development Fee Structure
supplement provided; Polerecky).
Error in the math that Baxter and Woodman provded, it was caught and wanted the
transparency to The Council that it happened, there was spreadsheet error on their report.
D. Issuance of Pension Obligation Bonds for Outstanding Police Pension Liability (no
supplement; Lynch).
Dalena Welkomer and Stefan Roberts gave a presentation from the Baird Public Finance
Group. The presentation was regarding the City's Police Pension Fund. They explained
interest rates and return on the plans. The benefits were explained to The Council as well
regarding Obligation Bonds.
There was some follow up questions from The Council, following the lengthy and throughout
presentation. The discussion continued on for a while. Mayor Jett asked the time frame, per
Director of Finance Lynch, the 5th of October would be great for them to bring more back to
The Council if wanting to move forward.
4
City of McHenry Council
Meeting Minutes
9.8.20
Alderman Santi wanted the presentation to review before then. Many members would like to
move forward after reviewing the information on their own. Director Lynch concluded that she
would get the information over to The Council per their requests.
Staff Reports:
A. Transmittal of FY20/21 1st Quarter Financial Report (Lynch)
Director Lynch explained the Financial Report to The Council.
Mayor's Report: Nothing to report.
City Council Comments: Director of Parks and Recreation Hobson, talked about the boat
rental it did open this weekend, it turned into a nice project for the city. This Saturday will be
the first lighting of the fire globes, there are three additional ones. Will be lighted every Saturday
for the next 8 weeks. This Saturday modified Art in the Park. 9/11 event will be a FB live event
where you can raise onto the flag.
Alderman Santi said that he had fun at the rentals.
Executive Session: Not at this time.
Adjourn: A motion was made Alderman Santi and seconded by Alderman Schaefer to
adjourn the meeting at 9:35 PM. Roll Call: Vote:7-ayes: Alderman Santi, Alderman Glab,
Alderman Schaefer, Alderman Harding-absent, Alderman Mihevc, Alderman Devine,
Alderwoman Miller. 0-nay-, 0-abstained. Motion carried.
X X
Mayor Wayne Jett City Clerk Trisha Ramel
5
City of McHenry Council
Meeting Minutes
9.8.20
Exhibit A, Amended Discussion Regarding Annexation of Parcels
Motion to approve Ordinances annexing currently unincorporated parcels at 202 Barreville Road, 219
Barreville Road, 223 Barreville Road, and the property located north of River Road and south of Elm Street.
Attorney McArdle began discussion regarding the proposed annexations and mentioned some issues with
annexing certain properties. The property on Route 120 and River Road is owned by th Adams family, and they
are concerned that the property would be zoned residential. Annexed properties do come in as residential
unless having gone through the zoning process, and this property is a better fit being zoned commercial.
The properties listed at 219 Barreville Road are owned by Joe Doherty, and he leases that property to an
individual who would like to keep animals for more than 20 or 30 years. It is reported that an individual on the
east side of the road (202 Barreville) would like to keep chickens. Each of the properties have zoning issues
that would need individual attention,which is causing more work than expected. Instead of forcing the
annexations, which is allowed by law, we are trying to accommodate everybody.Attorney McArdle
recommends taking this off the agenda and not annexing until property owners come forward and ask to be
annexed.
Alderman Glab stated that there has been discussion of these properties in pockets for 20 or more years, and it
is time to get them annexed into the City. It is not possible to look at each individual property to give
exceptions because these properties are in a neighborhood area and are encompassed by the rest of the City.
Attorney McArdle stated that if any existing use of these properties is legal in the County they will be brought
in as legal non-conforming to the City for a certain period of time. Alderman Glab believes the City should
move forward with the annexations or else the City will be looking back in 20 more years and seeing itself in
the same position.
Alderwoman Miller agrees with Alderman Glab in that we can't keep waiting to have these properties
annexed. This issue was brought to the Council when Alderman Miller was on the Planning and Zoning board
and it was discussed numerous times at the committee level. There are many islands out there that need to
be annexed and the only reason they haven't been is because nobody took the time to deal with it.The work
has already been done for the four parcels presented, and their individual issues can be dealt with. It is time to
get rid of the islands and start annexing all of those properties.
Mr. and Mrs. Doherty explained that they bought the property because having animals was allowed, and they
would eventually sell the property knowing that was allowed in the County. They don't believe having animals
on the property has caused any problems or harm. If they are going to be annexed, they would like to request
a special use permission to allow the animals moving forward. City Planner Cody Sheriff explained that from
the County's perspective, horses are allowed on properties zoned agricultural, and their rules allow for a
certain amount of horses per acre.
Council members discussed the length of time that horses or other existing uses should be allowed once
annexed. There was concern that 30 years would be too long of a time to allow animals, as there is no way to
know what Green Street and that area of McHenry will look like in the future. Alderwoman Miller suggested
that if the Doherty property was allowed to keep horses as long as they own the property,that once they sell,
6
City of McHenry Council
Meeting Minutes
9.8.20
the contract for sale of the property could contain a provision that new owners would go through the process
of getting a special use approved prior to purchase.
After further discussion it was decided that the properties on River Road/Elm Street, 219 Barreville Road, and
223 Barreville Road should be continued until a later meeting, as there were issues that needed to be worked
out. It was asked if there were any issues with the property at 202 Barreville Road. Doug Martin stated that
one of the sons was going to move there but wanted chickens, and since they would no longer be allowed, he
would no longer move in.
A motion was made by Alderwoman Miller and seconded by Alderman Schaefer to annex the currently
unincorporated parcel at 202 Barreville Road. Roll Call: Vote: 7-ayes: Alderwoman Miller, Alderman Schaefer,
Alderman Glab,Alderman Santi, Alderman Mihevc,Alderman Devine, Alderman Harding. 0-nays, 0-abstained.
Motion carried.
A motion was made by Alderman Santi and seconded by Alderman Glab to table the ordinances annexing
currently unincorporated parcels at 219 Barreville Road, 223 Barreville Road, and the property located north
of River Road and south of Elm Street. Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab, Alderman
Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine, Alderwoman Miller. 0-nays, 0-abstained.
Motion carried.
Monte A Johnson, Deputy Clerk
7
City of McHenry Council
Meeting Minutes
9.21.20
McHenr
MINUTES
REGULAR CITY COUNCIL MEETING
Monday, September 21, 2020, 7:00 p.m.
In light of the current COVID-19 public health emergency, this meeting will be held remotely
only. The public can observe by connecting online at:
https://cityofmchenry.zoom.us/j/97728178638.
The public can also call in to the following number: +1 312 626 6799, Meeting ID 977 2817
8638
Call to Order: The City Council of the City of McHenry, Illinois, met in regular session on
Monday, August 3, 2020, 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 Harding-
absent, Alderman Mihevc, Alderman Devine, Alderwoman Miller, 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, Chief of Police Birk,City
Planner Sheriff, and City Clerk Ramel.
Pledge of Allegiance: Mayor Jett led the pledge.
Public Comments: No public comment.
Consent Agenda: Motion to Approve the Following Consent Agenda Items:
A. Adopt the Seventh Continuation of Proclamation of the Local Disaster Emergency for
the City of McHenry to December 31, 2020 (McArdle);
B. Accept the recommendation of staff to approve the revised Intergovernmental
Agreement for Snowplowing between the City of McHenry and McHenry Township
Strange);
C. Accept public improvements associated with the Townhomes of Prairie Lakes
Subdivision Development (Strange);
D. September 8, 2020, City Council Meeting Minutes;
E. Issuance of Checks in the amount of $832,919.63;
F. Issuance of As Needed Checks in the amount of $455,669.88.
1
City of McHenry Council
Meeting Minutes
9.21.20
A motion was made by Alderman Schaefer and seconded by Alderwoman Miller to
approve Consent Agenda Items as presented: Roll Call: Vote: 7-ayes: Alderman Santi,
Alderman Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine,
Alderwoman Miller. 0-nays, 0-abstained. Motion carried.
Individual Action Item Agenda
A. Motion to approve a Resolution designating Bush Terrace as "Mark Amore Terrace" as
unanimously recommended by the Public Works Committee (Strange).
On October 1st the dedication will take place at 1:00 in the afternoon. There will be a street
sign as part of the dedication to Mark Amore, fallen McHenry Firefighter.
A motion was made by Alderman Santi and seconded by Alderman Harding to approve
Individual Agenda items as presented. Roll Call: Vote:7-ayes: Alderman Santi, Alderman
Glab, Alderman Schaefer, Alderman Harding, Alderman Mihevc, Alderman Devine,
Alderwoman Miller. 0-nays, 0-abstained. Motion carried.
Discussion Items:
A. Potential Sales Tax Rebate for the continued redevelopment of Water Tower Marina by
Munson Ski & Marine (Polerecky).
Director of Community Development, Polerecky, stated that the marina is under contract. The
Munson family was present to explain their vision of what the marina would look like under their
ownership; a full scale marina, boat sales, a model someone of the Abby located in Wisconsin.
Would like to have a swimming pool and events offered in a pavilion that would be very upscale
that could help beautify the whole area. Many of The Council would like to see a proposal and
see things move forward with this discussion item.
The idea of waving water and sewer would like to be offered. Director Polerecky thanked The
Council for their support in moving forward with this discussion item.
Staff Reports: Director of Parks and Recreation, Hobson reminded The Council that Saturday
Evenings fire globe lightening will continue. Sam from Northwest Herald present for information
as well.
Director of Public Works, Strange, stated that there is a public works/ road meeting on Monday
28th at 6pm,
3
City of McHenry Council
Meeting Minutes
9.21.20
Mayor's Report: None
City Council Comments: None
Executive Session if Needed: Not at this time
Adjourn: A motion was made Alderman Santi and seconded by Alderman Harding to
adjourn the meeting at 7:35 PM. Roll Call: Vote:7-ayes: Alderman Santi, Alderman Glab,
Alderman Schaefer, Alderman Harding-absent, Alderman Mihevc, Alderman Devine,
Alderwoman Miller. 0-nay-, 0-abstained. Motion carried.
X X
Mayor Wayne Jett City Clerk Trisha Ramel
3
Expense Approval Register
McHenry, IL List of Bills Council Meeting - 10-5-2020
MGI�e�1CV
Vendor Name Payable Number Post Date Descriptlan (Item) Account Number Amount
Vendor: AQUA PA
AQUA PA MS-2621321 10/05/2020 7/20-9/19/20 READS SIO-32-5110 160,50
Vendor AQUA PA Total: 160,50
Vendor: BAKER & SON CO, PETER
BAKER & SON CO, PETER 30498 10/05/2020 HMA SFC 100-33-6110 485.76
Vendor BAKER & SON CO, PETER Total: 495,76
Vendor: BANK OF NEW YORK MELLON, THE
BANK OF NEWYORK MELLON, 252-2319467 10/OS/2020 MCHENRY 2010C 510-32-7300 11052,50
Vendor BANK OF NEW YORK MELLON, THE Total: 1,052,50
Vendor: BUSS FORD SALES
BUSS FORD SALES 6066344 10/05/2020 CLAIM 328631 L1325 REPAIR 610-00-5990 11017,61
Vendor BUSS FORD SALES Total: 11017*61
Vendor: CALDWELL, BRETT
CALDWELL, BRETT 277322 10/05/2020 FORFEIT FEE 100-41-3637 25,00
Vendor CALDWELL, BRETTTotal: 25,06
Vendor: CHASE, BILL
CHASE, BILL 276987 10/05/2020 2ND PLACE FINISH 100-41-3637 5,00
Vendor CHASE, BILLTotal: 5100
Vendor: CONDUENT HR CONSULTING LLC
CONDUENT HR CONSULTING 2453010 10/OS/2020 AUG 2020 SVS FEES 600-00-6960 72,00
Vendor CONDUENT HR CONSULTING LLCTotal: 72,00
Vendor: ENCINIA, HEATHER
ENCINIA, HEATHER 276529 10/05/2020 PGM CXL 100-41-3637 11195,00
Vendor ENCINIA, HEATHER Total: 10195,00
Vendor: FOX VALLEY FIRE & SAFETY
FOX VALLEY FIRE &SAFETY IN00381224 10/05/2020 JESSUP RADIO INSTALL 225-00-5110 195.00
Vendor FOX VALLEY FIRE & SAFETY Total: 195,00
Vendor: GAYLORD, PAULA
GAYLORD,PAULA 276355 10/05/2020 ROSTER CHANGE 100-41-3637 14.75
Vendor GAYLORD, PAULA Total: 14,75
Vendor: HLR
HLR 20201591 10/05/2020 MCHENRY DARTMOOR DR 270-00-8600 1,586.25
HLR 20201659 10/05/2020 BARREVILLE RD WING WALL 100-01-8900 11701,25
Vendor HLR Total: 3,287.50
Vendor: IPPFA
IPPFA 2988 10/05/2020 IPPFA DUES JANI-DEC 31,2021 760-00-5110 795,00
Vendor IPPFA Total: 795,00
Vendor: JIMS MCHENRY AUTO BODY
JIMS MCHENRY AUTO BODY 8593 10/05/2020 11325 REPAIR 610-00-5980 3,695.47
Vendor JIMS MCHENRYAUTO BODYTotal: 31695,47
Vendor: KORNFEIND, HALEY
KORNFEIND, HALEY INV0010495 10/05/2020 9/15-9/23/20 100-47-5110 149,50
Vendor KORNFEIND, HALEYTotal: 149,50
Vendor: LAUTERBACH & AMEN, LLP
LAUTERBACH & AMEN, LLP 48918 10/05/2020 ACT REP PREP 760-00-5110 2,900,00
Vendor LAUTERBACH & AMEN, LLP Total: 21900,00
Vendor: LPL FINANCIAL
LPL FINANCIAL INV0010496 10/05/2020 PP ADV FEE 760-00-5110 14,102,69
Vendor LPL FINANCIAL Total: 14,102,69
9/30/2020 2:25:01 PM
Expense Approval Register
Packet: APPKT01928-10-5-20 AP CKS
Vendor Name
Payable Number
Vendor: MCANDREWS PC, THE
LAW OFFICE OF PATRICK
MCANDREWS PC,THE LAW
INV0010497
Vendor: MCHENRY HEATING &
AIR INC
MCHENRY HEATING&AIR INC
5-65338
Vendor: NORTHWEST LAMINATION
NORTHWEST LAMINATION
590360
Vendor: NUTOYS LEISURE PRODUCTS
NUTOYS LEISURE PRODUCTS
50615
Vendor: PITNEY BOWES INC
PITNEY BOWES INC 1016382934
Vendor: SEMROW 1R, HARRY H
SEMROW 1R, HARRY H
INV0010498
SEMROW JR. HARRY H
INV0010498
Vendor: SYNCB/AMAZON
SYNCB/AMAZON
12319/10/20
SYNCB/AMAZON
12319/10/20
SYNCB/AMAZON
78809/10/20
SYNCB/AMAZON
78809/10/20
SYNCB/AMAZON
78809/10/20
SYNCB/AMAZON
78809/10/20
SYNCB/AMAZON
INV0010499
SYNCB/AMAZON
INV0010499
SYNCB/AMAZON
INV0010499
SYNCB/AMAZON
INV0010499
Vendor: US BANK EQUIPMENT FINANCE
US BANK EQUIPMENT FINANCE
42427.1704
Vendor: VARVIL, SHANE
VARVIL, SHANE
276988
Post Date Description (item) Account Number Amount
30/05/2020
SEPT 2020 TRAFFIC COURT 100-01-5230
4,000.00
Vendor MCANDREWS PC, THE LAW OFFICE OF PATRICK Total:
4,000.00
10/05/2020
55688
100-01-8200
20,000,00
Vendor MCHENRY HEATING & AIR INC Total:
20,000.00
10/05/2020
COUNTERTOPS
100-01-8200
2,600.00
Vendor NORTHWEST LAMINATION Total:
20600,00
10/05/2020
BENCHES, PLAQUES 290-00-5110
7,860.00
Vendor NUTOYS LEISURE PRODUCTS Total:
7,860.00
10/05/2020
DM POSTAGE METER
100-04-5310
463,73
Vendor PITNEY BO W ES INC Total:
463,73
10/05/2020
AUG 2020
100-03-5110
108,75
10/OS/2020
AUG 2020
100-22-5110
978.75
Vendor SEMRO W 1R, HARRY H Total:
1,087.50
10/05/2020
MTHLY PD
100-22-6210
245,22
10J05/2020
MTHLY PD
100-23-6210
23,98
30/05/2020
MONTHLY
100-03-6110
237.27
1OJ05/2020
MONTHLY
100-45-6110
31.56
1OJ05/2020
MONTHLY
100-46-6110
259,85
1OJ05/2020
MONTHLY
400-00-6110
115.07
1OJ05/2020
MTH LY
100-03-6110
237,27
10{05/2020
MTH LY
100-45-6110
31.56
10/05/2020
MTH LY
100-46-6110
259,85
30/05/2020
MTH LY
400-00-6110
115,07
Vendor SYNCB/AMAZON Total:
1,556.70
10/05/2020
PW RICOH
620-00-6210
336,21
Vendor US BANK EQUIPMENT FINANCE Total:
336,21
1OJ05/2020
SST PLACE FINISH
100-41-3637
175.00
Vendor VARVIL, SHANE Total:
175,00
Grand Total: 67,232.42
9/30/2020 2:25;01 PM
Expense Approval Register
Packet APPKT01928-10-5-20 AP CKS
Fund Summary
Fund
S00-GENERAL FUND
225 - ALARM BOARD FUND
270 - MOTOR FUEL TAX FUND
290-TIF FUND
400- RECREATION CENTER FUND
510- WATER/SEWER FUND
600- EMPLOYEE INSURANCE FUND
610- RISK MANAGEMENT FUND
620- INFORMATION TECHNOLOGY FUND
760- POLICE PENSION FUND
Grand Total:
Expense Amount
33,229.05
195,00
11586,25
7,860,00
230,14
11213,00
72,00
4,713,08
336.21
17,797.69
67,232.42
mi? McHenry, IL
clrury
Vendor Name Payable Number
Vendor: 41MPRINT INC
41MPRINTINC 20220879
Vendor: A -ABLE ALARM SERVICE INC
A -ABLE ALARM SERVICE INC 67234
Vendor: ADAMS STEEL SERVICE & SUPPLY, INC
ADAMS STEELSERVICE& 365010
Vendor: ADVANCED WEIGHING SYSTEMS INC
ADVANCED WEIGHING 28605
Vendor: ALL MARINE SERVICES INC
ALL MARINE SERVICES INC 11050
Vendor: ALLDATA
ALLDATA 2005910982
Vendor: ARAMARK
ARAMARK 22764976
Vendor: AT&T LONG DISTANCE
AT&T LONG DISTANCE 5308 9/6/20
Vendor, AT&T
AT&T 9 615 9/19/20
AT&T 9fi629/11/20
Vendor: AUTOMOTIVE LIFT CONSULTANT
AUTOMOTIVE LIFT 199
Vendor: BATTERIES PLUS Jf456
BATTERIES PLUS 1i456
P31323279
Vendor: BENCE, JENNIFER
BENCE, JENNIFER
1220-392
Vendor: BUCK BROS INC
BUCK BROS INC
274513
Vendor: BUDDYZ
BUDDYZ
1220-405NT
Expense Approval Register
#2 List of Bills Council Meeting 10-5-2020
Post Date Description (Item) Account Number Amount
10/OS/2020
PUBLIC RELATIONS STICKERS 100-22-6210
156.19
Vendor 41MPRINT INC Total:
156.19
10/05/2020
West Campus MMAC Keys 100-47-6110
35,92
Vendor A -ABLE ALARM SERVICE INCTotal:
35,92
30/05/2020
streets 100-33-5370
93,00
Vendor ADAMS STEEL SERVICE & SUPPLY, INC Total:
93,00
10 f05/2020
RE-CERET WHEEL LOAD SCALE 100-22-5110
100,00
Vendor ADVANCED WEIGHING SYSTEMS INC Total:
100,00
SO/05/2020
Boat docks for the All Marine 280-41-8800
22,174,00
Vendor ALL MARINE SERVICES INC Total:
22,174,00
10/05/2020
PW Mechanics Software- 620-00-5110
1,500.00
Vendor ALLDATA Total:
1,500,00
10/OS/2020
uniform Scheel 510-31-4510
151,85
Vendor ARAMARK Total:
151,85
10/05/2020
AT&T Long Distance 620-00-5320
1.80
Vendor AT&T LONG DISTANCE Total:
1,80
10/05/2020
AT&T Fiber Internet 100M 620-00-5110
1,129,25
10/05/2020
Voice Over lP -IP-Flex 620-00-5320
368,77
Vendor AT&T Total:
11498,02
10/05/2020
mechanic lift inspections 100-33-5115
150,00
Vendor AUTOMOTIVE LIFT CONSULTANT Total:
350100
10/05/2020
SLA12-8F2 UPS Replacement 620-00-6110
351.20
Vendor BATTERIES PLUS U456 Total:
351,20
10/05/2020
Cent -Cupcake Club 100-46-5110
80,00
Vendor BENCE, JENNIFER Total:
80,00
10/05/2020
Sewer Div, Gator-Front CV 510-32-5370
85,16
Vendor BUCK BROS INC Total:
85.16
10/O5/2020
Staff Appreciation
for Summer
100-42-6110
129.21
Vendor: BUSS FORD SALES
BUSS FORD SALES
5038951
10/OS/2020
317
642.63
357.03
348.36
502.53
12.03
9/30/2020 2;36;21 PM
Expense Approval Register
Vendor Name Payable Number
BUSS FORD SALES 6067199
Vendor: CABAY & COMPANY INC
CABAY &COMPANY INC
63221
CABAY & COMPANY INC
63245
CABAY & COMPANY INC
63251
CABAY & COMPANY INC
63318
CABAY & COMPANY INC
63319
CABAY & COMPANY INC
63358
Vendor: CAREY ELECTRIC
CAREY ELECTRIC
8-31-2020
Vendor: COW GOVERNMENT INC
COW GOVERNMENT INC 1832211
Vendor: COMCAST CABLE
COMCASTCABLE OS959/20/2020
Vendor: CONSERV FS
CONSERV FS 6SIO3904
Vendor: CORKSCRE W GYMNASTICS &SPORTS ACADEMY
CORKSCREW GYMNASTICS& 732
Vendor: CURRAN CONTRACTING COMPANY
CURRAN CONTRACTING
20216
CURRAN CONTRACTING
20234A
CURRAN CONTRACTING
20234
Vendor: DREISILKER ELECTRIC MOTORS INC
DREISILKER ELECTRIC MOTORS 1164950
Vendor: EeY GRAPHICS INC
EBY GRAPHICS INC 6907
Vendor: ED'S RENTAL &SALES INC
ED'S RENTAL&SALES INC 306125-1
Vendor: FISCHER RROS FRESH
FISCHER BROS FRESH 14339
FISCHER BROS FRESH 14416
Vendor: FRONTLINE TECHNOLOGIES GROUP LLC
FRONTLINE TECHNOLOGIES INVU5127710
Vendor: GALLS LLC
GALLS
LLC
GAL S
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
GALLS
LLC
016192453
016466972
016466973
016466987
016466991
016467065
016467083
016468532
016473572
Packet: APPKT01932-RECr INVOICE 10-5-20
Post Date
Description (Item)
Account Number
Amount
10/05/2020
431
100-33-5370
1,091.92
Vendor BUSS FORD SALES Total:
2,954.50
10/05/2020
Cleaning Products -Rec Center
400-00-6111
421,79
30/05/2020
PPE
100-45-6110
345,92
30J05/2020
KLEENEX/SOAP/PAPER TOWELS
100-03-5120
269,27
10{05/2020
ALCOHOLWIPES
100-03-5120
4j200,OO
SO/05/2020
Cleaning and Disinfecting
400-00-6111
660,00
70/05/2020
Cleaning Supplies
100-33-6115
496,04
Vendor CABAY & COMPANY INCTotai:
6,392.92
10 fO5/2020
Miller Point boat rental
400-00-8800
%840.00
Vendor CAREY ELECTRICTotak
9,840.00
10J05/2020
DYMO Labels
620-00-6210
28.99
Vendor CDW GOVERNMENT INCTotai:
28,99
10/05/2020
Lakeland Park Community
620-00-5110
158,45
Vendor COMCAST CABLE Total:
158.45
SO/05/2020
Landscape Supplies
100-45-6110
211,66
Vendor CONSERV FSTotal:
211.66
10tO5/2020
Fall Invoice 732
100-47-5110
100.00
Vendor CORKSCREW GYMNASTICS & SPORTS ACADEMY Total:
100,00
10/05/2020
N50 Surface - STS - U45159
100-33-6110
20,47
SO/05/2020
N50 Surface - STS - 045182
100-33-6110
16,02
10/05/2020
Commercial Surface -STS-
100-33-6110
179,78
Vendor CURRAN
CONTRACTING COMPANY Total:
216.27
30/05/2020
Doolin Lift -Pump Repair
510-32-5380
1,080.00
Vendor DREISILKER ELECTRIC MOTORS INCTotai:
1,080.00
10/05/2020
decals
100-33-5370
155.14
Vendor EBY GRAPHICS INC Total:
355,14
10/OS/2020
Equipment Rental
100-45-6110
390,00
Vendor
ED'S RENTAL & SALES INCTotai:
390,00
10/05/2020
Ready Mix -UTY 1114339
510-35-6110
498,50
10/05/2020
Ready Mix - CITY - 14416
510-35-6110
839,75
Vendor FISCHER BROS FRESH Total:
1,338,25
10/05/2020
FIR Application Tracking
620-00-5110
2,633.99
Vendor FRONTLINE TECHNOLOGIES
GROUP LLCTotal:
21633,99
10/05/2020
UNIFORM ORDER-JOSEPH
100-23-4510
52,97
10/05/2020
UNIFORM ORDER -P. PRATHER
100-22-4510
53,45
30/05/2020
UNIFORM ORDER - FISHER
100-22-4510
48,35
10/05/2020
UNIFORM ORDER - HUBBARD
100-23-6110
125,00
10/O5/2020
UNIFORM ORDER - VOELKER
100-22-4510
146.55
10/05/2020
UNIFORM ORDER - MORALES
100-22-4510
185.50
10(05/2020
UNIFORM ORDER -BIRK
100-22-4510
172.80
10/05/2020
UNIFORM ORDER -SEXTON
100-22-4510
30,25
10/O5/2020
UNIFORM ORDER -PENA
100-22-4510
135,00
9/30/2020 2:36:21 PM
Expense Approval Register
Packet: APPKT01932 - RECF
INVOICE 10-5-20
Vendor Name
Payable Number
Post Date
Description (item) Account Number
Amount
GALLS LLC
016504796
10/05/2020
UNIFORM ORDER -SEXTON 100-22-4510
71.26
GALLS LLC
016504805
10/05/2020
UNIFORM ORDER - KIRK 100-22-4510
71.01
GALLS LLC
01GS55883
10/05/2020
REUSABLE MASKS 100-22-4510
15.10
Vendor GALLS LLC Total:
1,107.24
Vendor: GOODMARK NURSERIES
LLC
GOODMARK NURSERIES LLC
24767
10/05/2020
Landscape Supplies 100-45-6110
510,00
Vendor GOODMARK NURSERIES LLC Total:
510,Oo
Vendor: GRAINGER
GRAINGER
9644703283
10/05/2020
Digital Sound Level Meter- 510-35-6110
107,52
Vendor GRAINGER Total:
107,52
Vendor: HARM'S FARM
HARM'S FARM
289565
10/05/2020
Fall Decorations 100-45-6110
56.00
HARM'S FARM
289576
10/05/2020
Fall Decorations 100-45-6110
32,26
Vendor HARM'S FARM Total:
88,26
Vendor: HAWKINS INC
HAWKINS INC
4763164
10/05/2020
chemicals 510-31-6110
41626,20
HAWKINS INC
4794789
10/05/2020
Chemical Delivery 510-32-6110
4,912.52
Vendor HAWKINS INCTotal:
91538*72
Vendor: HEARTLAND BUSINESS SYSTEMS, LLC
HEARTLAND BUSINESS
396456-H
10/05/2020
Microsoft Monthly M365 620-00-5110
3195438
HEARTLAND BUSINESS
397270-H
10/05/2020
MSP Network Service Flex 620-00-5110
2,000.00
HEARTLAND BUSINESS
397442-H
10/05/2020
Microsoft Visio License Plan 2 620-00-5110
13,75
Vendor HEARTLAND BUSINESS SYSTEMS, LLCTotah
5,968.13
Vendor: ILLINOIS DEPT OFAGRICULTURE
ILLINOIS DEPT OF
7N002352
10/05/2020
RE -CERTIFICATION SCALES 100-22-5110
400,00
Vendor ILLINOIS DEPT OF AGRICULTURE Total:
400,00
Vendor: IN -PIPE TECHNOLOGY
COMPANY INC
IN -PIPE TECHNOLOGY
1789
10/05/2020
Monthly service fee 510-32-5110
7,750.00
Vendor IN -PIPE TECHNOLOGY COMPANY INC Total:
7,750.00
Vendor: INTERSTATE ALL BATTERY
CENTER
INTERSTATE ALL BATTERY
1903701040503
10/05/2020
battery plc plant 2 510-31-6110
29,80
Vendor INTERSTATE ALL BATTERY CENTER Total:
29,80
Vendor: INTERSTATE BILLING SERVICE INC
INTERSTATE BILLING SERVICE
3020739305
10/05/2020
403 100-33-5370
281.74
Vendor INTERSTATE BILLING SERVICE INCTotal:
281,74
Vendor: ISAW WA
ISAW WA
200056456
10/05/2020
water class Ben 510-31-5430
137,00
Vendor ISAW WA Total:
137,00
Vendor: JENSEN, TED
JENSEN,TED
03717
10/05/2020
SWWTP-Clarifierd2-Water inlet 510-32-5375
223,93
Vendor JENSEN, TED Total:
223,93
Vendor: lG UNIFORMS INC
JG UNIFORMS INC
75231
10/05/2020
UNIFORM ORDER-MCKEEN 100-22-4510
42,50
Vendor JG UNIFORMS INCTotal:
42,50
Vendor: KIMBALLMIDWEST
KIMBALLMIDWEST
8229769
10/05/2020
kimball stock 100-33-5370
454.92
KIMBALLMIDWEST
8248753
10/05/2020
kimball stock 100-33-5370
420.03
Vendor KIMBALL MIDWESTTotal:
874,95
Vendor: KOMLINE-SANDERSON
KOMLINE-SANDERSON
42047824
10/05/2020
2 meter BFP Gearbox seals 510-32-5375
109.76
Vendor KOMLINE-SANDERSON Total:
109,76
Vendor: LIFEGUARD STORE INC, THE
LIFEGUARD STORE INC, THE
INV000999984
10/05/2020
Swim Team Equipment Parent 100-47-6110
1,755.25
Vendor LIFEGUARD STORE INC, THE Total:
1,755,25
9/30/2020 2:36:21 PM
Expense Approval Register
Packet APPK701932 - RECT INVOICE 30-5-20
Vendor Name
Payable Number
Post Date
Description (Item) Account Number
Amount
Vendor: LOU'S GLOVES, INC
LOITS GLOVES, INC
037504
10/05/2020
Gloves 510-32-6110
358,00
Vendor LOU'S GLOVES, INCTotal:
358,00
Vendor: MCHENRY PIERS
MCHENRY PIERS
13193
10/05/2020
Mounting posts for fire globes 100-45-5110
1,065.00
Vendor MCHENRY PIERSTotah
1,065.00
Vendor: MEADE INC
MEADE INC
693164
10/05/2020
Traffic Signals Repair 0693164 100-33-5110
727,85
MEADE INC
693165
10/05/2020
Traffic Signal Locate 4693165 100-33-5110
88,06
Vendor MEADE INCTotal:
815,91
Vendor: MENDEZ LANDSCAPING & BRICK PAVERS INC
MENDEZ LANDSCAPING&
8980
10/05/2020
CITY HALLGROUND 100-03-5120
360.00
MENDEZ LANDSCAPING &
8988
10/05/2020
Contractual Landscaping 100-45-5110
300.00
MENDEZ LANDSCAPING&
9007
10/05/2020
Contractual Landscaping 100-45-5110
800,00
MENDEZ LANDSCAPING &
9092
10/05/2020
Contractual Landscaping 100-45-5110
300,00
Vendor MENDEZ LANDSCAPING & BRICK PAVERS INCTotal:
11760,00
Vendor: MIDWEST METER INC
MIDWEST METER INC
0122734-IN
10/05/2020
water meters 510-31-6110
1,321.85
Vendor MIDWEST METER INCTotal:
11321,85
Vendor: MINUTEMAN PRESS OF
MCH
MINUTEMAN PRESS OF MCH
94667
10/05/2020
Signage 100-45-6110
69.00
Vendor MINUTEMAN PRESS OF MCH Total:
6900
Vendor: NORTH EAST MULTI -REGIONAL TRAINING INC
NORTHEAST MULTI -REGIONAL
274596
10/05/2020
K9 CADAVER TRAINING 100-22-5430
375,00
NORTHEAST MULTI -REGIONAL
275188
10/05/2020
POLICE CYCLIST CLASS-CAREY 100-22-5430
175,00
Vendor NORTHEAST MULTI -REGIONAL TRAINING INC Total:
550,00
Vendor: NORTHWEST ELECTRICAL SUPPLY CO INC
NORTHWEST ELECTRICAL
17476717
10/05/2020
Electrical Supplies 100-45-6110
120.00
NORTHWEST ELECTRICAL
17477470
10/05/2020
Electrical Supplies 100-45-6110
62.65
Vendor NORTHWEST ELECTRICAL SUPPLY CO INCTotal:
182,65
Vendor: NORTHWEST TRUCKS
INC
NORTHWESTTRUCKS INC
X101011058;01
10/05/2020
817 510-35-5370
211,50
Vendor NORTH WEST TRUCKS INCTotal:
211,S0
Vendor: NORTHWESTERN MEDICINE OCC HEALTH
NORTHWESTERN MEDICINE
501337A
10/05/2020
New Hires& Randoms N501337100-05-5110
562,00
NORTHWESTERN MEDICINE
501337
10/05/2020
Ellis, Rewiako (Post Accident) 610-00-6940
165,00
Vendor NORTHWESTERN MEDICINE OCC HEALTH Total:
727,00
Vendor: OFFICIAL FINDERS LLC
OFFICIAL FINDERS LLC
2724
10/05/2020
Invoice 2724 Softball 100-47-5110
292.60
Vendor OFFICIAL FINDERS LLCTotal:
292,60
Vendor: OLSEN SAFETY EQUIPMENT CORP
OLSEN SAFETY EQUIPMENT
WTRSS1028
10/05/2020
water tower climbing gear 510-31-6110
21781,50
OLSEN SAFETY EQUIPMENT
VVTRSS1038
10/05/2020
arc flash safety equipment 510-31-6270
456.00
Vendor OLSEN SAFETY EQUIPMENT CORP Total:
31237,50
Vendor: OTTER SALES & SERVICE INC
OTTER SALES & SERVICE INC
BUR-1027878
10/05/2020
449 100-33-5370
2114737
Vendor OTTER SALES & SERVICE INC Total:
2,147.37
Vendor: PETROCHOICE LLC
PETROCHOICE LLC
50324704
10/05/2020
FUEL BILL 100-03-6250
128.21
PETROCHOICE LLC
50336710
10/05/2020
Fuel - UTY - 50336710 510-35-6250
530.36
PETROCHOICE LLC
5033672S
10/05/2020
Fuel - WW - 50336725 510-32-6250
620,94
PETROCHOICE LLC
S0336726
10/05/2020
Fuel - WTR - 50336726 510-31-6250
151,32
PETROCHOICE LLC
50336727
10/05/2020
Fuei N50336727 100-45-6250
364,25
PETROCHOICE LLC
S0336728
10/05/2020
Fuel - STS - S0336728 100-33-6250
562,66
PETROCHOICE LLC
50336729
10/05/2020
FUEL50336729 100-22-6250
21626,87
Vendor PETROCHOICE LLC Total:
41984,61
9/30/2020 2:36:21 PM
Expense Approval Register
Packet: APPKT01932 - RECT INVOICE 10-5-20
Vendor Name Payable Number
Post Date
Description (item) Account Number
Amount
Vendor: PH&S PRODUCTS
PH&S PRODUCTS 0013644-IN
10/05/2020
EVIDENCE SUPPLIES 100-22-6210
220,00
Vendor PH&S PRODUCTS Total:
220,00
Vendor: PROSHRED SECURITY
PROSHRED SECURITY 990066032
10/05/2020
MONTHLYSHRED 100-22-5110
403.00
Vendor PROSHRED SECURITY Total:
403,00
Vendor: RADAR MAN INC
RADAR MAN INC 4786
10/05/2020
RADAR REPAIR 100-22-6110
297,50
Vendor RADAR MAN INCTotal:
297,50
Vendor: SCHOPEN PEST SOLUTIONS INC
SCHOPEN PEST SOLUTIONS INC 3406
10/05/2020
Pest Control 400-00-5110
70,00
Vendor SCHOPEN PEST SOLUTIONS INC Total:
70,00
Vendor: TKB ASSOCIATES, INC
TKB ASSOCIATES, INC 14070
10/05/2020
Service Block of Hours (x10) 620-00-5110
11575,00
Vendor TKB ASSOCIATES, INC Total:
1,575,00
Vendor: TOPS IN DOG TRAINING CORP
TOPS IN DOG TRAINING CORP 22759
10/05/2020
K93OARDING/FOOD 100-22-6310
247,00
Vendor TOPS IN DOG TRAINING CORP Total:
247,06
Vendor: TREDROC TIRE/ANTIOCH 002
TREDROC TIRE/ANTIOCH 002 7020038178
10/05/2020
flat tires 510-32-5370
572,00
TREDROC TIRE/ANTIOCH 002 7020038195
10/05/2020
817 510-35-5370
2,191.19
Vendor TREDROC TIRE/ANTIOCH 002 Total:
21763,19
Vendor: ULTRA STROBE COMMUNICATIONS INC
ULTRA STROBE 077884
10/05/2020
INSTALL GUN LOCK N327 100-22-5370
80.00
Vendor ULTRA STROBE COMMUNICATIONS INC Total:
80,00
Vendor: VISION FOR CHANGE LLC
VISION FOR CHANGE LLC 09232007
10/05/2020
CIT CONCEPTS FOR 911 100-23-5430
198,00
Vendor VISION FOR CHANGE LLCTotal:
198,00
Vendor: WELCH BROS INC
WELCH BROS INC 3103991
10/05/2020
COVID- Barrier Rentals 8/19- 100-33-6110
350.00
Vendor WELCH BROS INCTotal:
350,00
Vendor: WORKPLACE SOLUTIONS
WORKPLACE SOLUTIONS INV20868
10/05/2020
EAP Services 9/1/20-9/30/20 100-05-5110
450.42
Vendor WORKPLACE SOLUTIONS Total:
450,42
Grand Total:
105,308.42
9/30/2020 2:36:21 PM
Expense Approval Register
Packet: APPKT01932 - RECF INVOICE 10-5-20
Fund Summary
Fund
S00-GENERAL FUND
280- DEVELOPER DONATION FUND
400 - RECREATION CENTER FUND
510 - WATER/SEWER FUND
610 - RISK MANAGEMENT FUND
620 - INFORMATION TECHNOLOGY FUND
Grand To[ai:
Expense Amount
28,515.40
22,174.00
101991,79
29,746.65
165.00
13,715,58
105/308.42
City of McHenry
333 S Green Street
war 1.1144— .e......
1
McHenry, Illinois 60050
Phone: (815) 363-2100
c Fax: (815) 363-2119
J//
www.ccityofmchenry.orgmcHenrREGULARAGENDAITEM
DATE: October 5, 2020
TO:City Council
FROM: Monte Johnson
RE:Don's Subs Video Gaming License Application
AGENDA ITEM SUMMARY:
Don's Subs applied for and received a liquor license on October 7, 2019. They also applied for
video gaming at that same meeting, but they were denied. Per discussion at the meeting, they
were advised to wait one year and they could come back to Council to reapply.
I have attached the portion of the minutes from that meeting on the subject. Please note that
there is an error in the motion and the voting in the minutes that was only identified in
researching this topic. This is how the motion and voting should read:
A motion was made by Alderman Schaefer and seconded by Alderman Glab to
deny a video gaming license to Don's Subs. Roll Call: Vote: 6-ayes: Alderman
Schaefer, Alderman Glab, Alderman Santi, Alderman Mihevc, Alderwoman
Miller, Alderwoman Baehne. 1-nay: Alderman Devine. Motion carried."
The minutes stated: "Motion denied". However, the video gaming was denied, not the motion.
There was also an error in recording the votes for the liquor license. There were 6 ayes and 1
nay. Alderman Glab was the nay, but he is listed with the ayes.
If you have any questions regarding any of the discussion regarding video gaming, please let me
know, and I can get you the audio file from that meeting. The item was discussed on the
recording from 13:21 through 21:50.
In considering the request from Don's Subs, a motion to approve or deny a Video Gaming
License to Don's Subs located at 323 Front Street can be made for consideration.
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.
License#VG-
Terminals:
Terminal Fee:
Terminal Operator
Fee:
Date:
McHenr Check:
Oi INC«.Y RIVlR
Cash:
City of McHenry
Video Gaming License Application
Annual License Term May 15t through April 30th
Attach Copy of Valid Illinois Gaming Board License to Application
Annual license fee payable to the city for a licensed private business shall be $1000 for each
video gaming establishment and $1000 for each video gaming terminal. Fees for non-for-profit
establishments shall be $250 for the annual video gaming establishment and $250 for each video
gaming terminal. The applicant shall obtain a state license and exhibit proof of said license.
1. Applicant's Corporate Name: Oil ,c1,1. 65 LLC
2. Business Street Address: - y-T3 rn"-- n (Li/1—
3. Business Telephone Number: 3Sa 000 Email Address: \ )
4. Number of Video Gaming Terminals to be operated: (maximum 5)
5. Name, business address,telephone number,and en it address for your Termi al
Operator: —1)(3 tNS -S 9)S 3') -Biro Y1r' la-D-OS)
6. Have you ma elication for a similar license for premises other than described in this
location? If so, provide date, location of premises and disposition of application
7. Has
NO
license previously issued to you by State, Federal, or local authorities been revoked?
No r/V O Yes
If you answered yes,state reasons and date of revocation(s)
The undersigns affi ms th s ments contained in this application are true and correct.
Signed:Title:Ps t '1
Print Name: a 11 V
Rev:2/2017
Return to: mjohnson@cityofmchenry.org
City of McHenry Council
Meeting Minutes
10.7.19
business even if he did not get liquor license or gaming licenses. Other discussion continued
as Alderwoman Baehne asked how the seating would be and what kind of tables they would
provide. Alderman Glab asked the owner if he had much experience in the restaurant field,
applicant did have a bar in FL. Alderman Schaefer asked to confirm some incomplete answers
on the applications such as what type of establishment should have been checked on the
application, it was confirmed by the applicant that restaurant should have been selected. Also,
on page 3 confirming that will they not sell to underage or intoxicated persons at the
establishment, which was missed on the application as well, this too was confirmed by the
applicant as an important guideline that they would most certainly follow.
A motion was made by Alderman Schaefer and seconded by Alderwoman Miller to
approve individual agenda items as presented. Roll Call: Vote: 6-ayes: Alderman Santi,
Alderman Schaefer, Alderman Glab, Alderwoman Baehne, Alderman Mihevc, Alderman
Devine, Alderwoman Miller. 1-nays, 0-abstained. Motion carried.
B. Motion to approve or deny a Video Gaming License to Don's Subs at 323 Front Street,
McHenry, contingent on the action taken on Agenda Item A.
Council talked about their opinion of gaming and also that the applicant could come back after
one year of the business being open to get approval later on for the gaming. The Council
expressed that there were concerns that the business could become less of a restaurant and
more for the gaming. Council would like to be more specific regarding gaming establishments
in the city of McHenry at this time, there are many gaming facilities present in the town.
A motion was made by Alderman Santi and seconded by Alderwoman Miller to approve
Individual Agenda items as presented. Roll Call: Vote: 2-ayes: Alderman Santi, Alderman
Schaefer, Alderman Glab, Alderwoman Baehne, Alderman Mihevc, Alderman Devine,
Alderwoman Miller. 5-nays, 0-abstained. Motion denied.
C. Motion to approve the following pertaining to the Public Use of Cannabis:
a, An Ordinance amending Chapter 23: Taxation of the City of McHenry Municipal
Code Municipal Cannabis Retailers' Occupation Tax;
b. An Ordinance amending Chapter 14: Drug Paraphernalia; Possession of
Cannabis; and,
c. An Ordinance approving text amendments to the Zoning Ordinance to Article III:
General District Regulations, Article V: Commercial Districts, Article VI: Office,
Industrial, Business Park, Agricultural and Mining Overlay and Health Care
Districts, Article VII: Off-Street Parking and Loading, and Article XIX: Definitions
Pertaining to Adult Use Cannabis.
2
ti].....) Office of Finance &Accounting
sow a%Carolyn Lynch, Director
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2100McHenrFax: (815) 363-2119
www.ci.mchenry.il.us
REGULAR AGENDA SUPPLEMENT
DATE: October 5, 2020
TO: Mayor and City Council
FROM: Carolyn Lynch, Finance Director
RE: To approve a bond parameters ordinance providing for the issuance of not
to exceed $29,000,000 Taxable General Obligation Bonds (Series 2020B).
ATTACHMENTS: Bond Parameters Ordinance
Pension Obligation Bonds Savings Projections
Estimated Unfunded Actuarial Accrued Liability Projections
AGENDA ITEM SUMMARY:
Staff was made aware of Pension Obligation Bonds and the potential savings they can provide
back in October, 2019. After considerable research by the Staff, Police Pension Board, and their
advisors,the item was brought before Council for discussion and input in September 2020. Based
on input from Council this item is now being brought forward for consideration and action on a
parameters ordinance providing for the issuance of, not to exceed, $29 Million Taxable General
Obligation Bonds (series 2020B).
BACKGROUND INFORMATION:
Under current state law, the City is required to have its police pension funded at the 90% level
by the year 2040. As of August 31, 2020 the City's actuary, Lauterbach & Amen, estimates the
unfunded liability (UAAL) in the Police Pension Fund is approximately $23.8 million. The UAAL
will be updated again around pricing of the bonds to issue the correct par value of bonds to be
able to get as close as possible to 100% funding by the identified date. The Police Pension Plan
funded ratios as of April 30, 2020 was 50.75%. Currently, the City is paying 7% interest on its
Police Pension liabilities.
The City began looking into funding the UAAL with a Pension Obligation Bond (POB) starting in
October, 2019. The president of the Police Pension Board became aware of the savings that
could be realized by issuing these bonds due to the current market which is offering a unique
opportunity to achieve historically low interest rates. Baird completed a pension bond analysis
and presented it at a couple Police Pension Board meetings and a recommendation was made to
present the opportunity to the City Council.
Baird has updated the bond analysis and estimates the City can borrow at about 2.59% in the
current taxable bond market. The City plans to apply bond proceeds to retire its Police Pension
liabilities and expects to save approximately$16.7 million in interest cost over the next 19 years.
These savings are estimated based on the City's Police pension plan actuarial assumptions and
Baird's interest rate assumptions.
As you recall, on September 8th, Baird gave a presentation on the potential risks and benefits of
issuing the POBs. The majority of Council concurred with moving forward with the issuance of a
parameters ordinance to issue these bonds.
ANALYSIS:
The potential benefits to the City from the POB are as follows: The bond could generate
significant expected savings (approximately $16.7 million), assuming the investments realize the
assumed actuarial rate of return of 7%. It will provide the City with flexibility to level off future
year payments to more affordable levels. It lowers the "hurdle rate" on investments from the
historical average investment rate of 7% to the POB cost of funds (estimated to be 2.59% in
today's market). If the return on investments achieved by the pension plan during the life of the
POB equals the bond cost of funds, the City would be at its point of indifference. The POB will
immediately reduce or eliminate the current UAAL of the pension plan and assist the City in
complying with State funding requirements (90%funded by 2040). And finally, the POB replaces
one existing legal obligation with another, less costly liability.
There are also risks to issuing a POB. The primary risk is that earnings on the POB proceeds will
be less than the assumed 7.0% rate. The following table shows the result of the various earnings
scenarios.
Actual Earnings Achieved Result
Above Actuarial Rate Savings Greater than Expected
Actuarial Rate Expected Savings Received
Below Actuarial Rate, but Above POB Rate Savings Less than Expected
POB Rate No Savings
Below POB Rate Loss
In order to analyze this risk it is important to look at the Pension Funds historical returns to
determine the likelihood of achieving the investment rate over the term of the POBs.
Police Pension Plan's Average Returns
10 Year Average 7.34%
15 Year Average 6.05%
20 Year Average 5.90%
If an assumption is made that the Police Pension Plan will earn the 20 year average rate of return
of 5.9% the estimated savings on the POBs will still be approximately $12.03 million. It is the
intention of the City to create a Budget Stabilization Fund which will be funded initially with not-
to-exceed $1,000,000 in Bond proceeds that the City may utilize to offset short-term smoothed
losses due to any investment performance below the actuarial rate of 7%. This stabilization fund
can also be replenished in subsequent favorable years.
Another risk in investing a large dollar amount all at once could result in adverse market timing.
This risk could be mitigated upon the Consolidation of the Pension Fund as the City would be
buying a pro-rata portion of a larger pool of investments, like IMRF. An additional risk is the POBs
are "hard" liabilities while pension payments can sometimes be considered "soft liabilities. City
staff has never felt that these are "soft" liabilities as State aid could be diverted to the Pension
Plan if the State funding requirements are not met. One final risk is additional UAALs may arise
as a result of such things as mortality, payroll, asset valuation method, benefit levels, investment
rate, etc.; but these risks would be present whether the POBs are issued or not.
RECOMMENDATION:
If Council concurs, it is recommended that a motion be made to adopt a parameters ordinance
providing for the issuance not to exceed $29 Million Taxable General Obligation Bonds (series
2020B), of the City for the purpose of funding all or a portion of the unfunded liability of the
City's Police Pension Fund, a budget stabilization fund for such unfunded liability, the levy and
collection of a direct annual tax for the payment of and interest on the bonds and the sale of
the bonds to Robert W. Baird & Co. Incorporated.
EXTRACT OF MINUTES of the regular public meeting of the City
Council of the City of McHenry, McHenry County, Illinois, held in
the Council Chambers at City Hall, located at 333 S. Green Street,
in said City, at 7:00 p.m., on the 5th day of October, 2020.
The Mayor called the meeting to order and directed the City Clerk to call the roll. Upon
the roll being called, Wayne Jett,the Mayor, and the following Aldermen answered present at said
location:
The following Aldermen were allowed by a majority of the members of the City Council
in accordance with and to the extent allowed by rules adopted by the City Council to attend the
meeting by video or audio conference:
No Alderman was not permitted to attend the meeting by video or audio conference.
The following Aldermen were absent and did not participate in the meeting in any manner
or to any extent whatsoever:
The City Council then considered an ordinance providing for the issuance of not to exceed
29,000,000 Taxable General Obligation Bonds, Series 2020B, of the City, and providing for the
levy and collection of a direct annual tax for the payment of the principal of and interest on said
bonds.
Thereupon, Alderman presented and there was placed before the
Mayor and each Alderman and there was read into the record the following ordinance:
ordinance-taxable pension bonds 4839-2778-3115 v2
2286011
AN ORDINANCE providing for the issuance of not to exceed
29,000,000 Taxable General Obligation Bonds, Series 2020B, of
the City of McHenry, McHenry County, Illinois, for the purpose of
funding all or a portion of the unfunded liability of said City's Police
Pension Fund, a budget stabilization fund for such unfunded
liability, the levy and collection of a direct annual tax for the
payment of the principal of and interest on said bonds and the sale
of said bonds to Robert W. Baird & Co. Incorporated.
the "Bond Ordinance") which was before the City Council for a second reading.
Alderman moved and Alderman seconded the
motion that the Bond Ordinance as presented be adopted.
A City Council discussion of the matter followed. During the City Council discussion,
gave a public recital of the nature of the matter, which included a reading of
the title of the ordinance and statements (1)that the ordinance provides for the issuance of general
obligation bonds for the purpose of paying the costs of providing funding for certain underfunded
liabilities of the City with respect to pension benefits for its police officers and the establishment
of a budget stabilization fund for such underfunded liabilities, (2) that the Bonds are issuable
without referendum pursuant to the home rule powers of the City, (3)that the Bond Ordinance
provides for the levy of taxes to pay the Bonds, (4)that the Bond Ordinance authorizes the Mayor
and the Treasurer to sell the bonds to Robert W. Baird & Co. Incorporated on certain terms and
conditions (set forth in the Bond Ordinance) which must be met and that, upon the action of said
officers, the bonds will be sold and delivered without further action of the City Council, and
5) that the Bond Ordinance provides many details for the Bonds, including provision for terms
and form of the Bonds, and appropriations.
The Mayor directed that the roll be called for a vote upon the motion to adopt the Bond
Ordinance.
Upon the roll being called, the following Aldermen voted AYE:
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and the following Aldermen voted NAY:
WHEREUPON,the Mayor declared the motion carried and the Bond Ordinance adopted,and
did direct the City Clerk to record the same in full in the records of the City Council of the City of
McHenry, McHenry County, Illinois.
Other business was duly transacted at said meeting.
Upon motion duly made and carried,the meeting adjourned.
City Clerk
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ORDINANCE NUMBER
AN ORDINANCE providing for the issuance of not to exceed
29,000,000 Taxable General Obligation Bonds, Series 2020B, of
the City of McHenry, McHenry County, Illinois, for the purpose of
funding all or a portion of the unfunded liability of said City's Police
Pension Fund, a budget stabilization fund for such unfunded
liability, the levy and collection of a direct annual tax for the
payment of the principal of and interest on said bonds and the sale
of said bonds to Robert W. Baird& Co. Incorporated.
Adopted by the City Council on the
5th day of October, 2020.
TABLE OF CONTENTS
SECTION HEADING PAGE
PREAMBLES 1
SECTION 1. DEFINITIONS 2
SECTION 2. INCORPORATION OF PREAMBLES 5
SECTION 3. DETERMINATION TO ISSUE BONDS 5
SECTION 4. BOND DETAILS 5
SECTION 5. BOOK ENTRY PROVISIONS 6
SECTION 6. EXECUTION;AUTHENTICATION 8
SECTION 7. MANDATORY REDEMPTION 9
SECTION 8. TERM BONDS;MANDATORY REDEMPTION AND COVENANTS;EFFECT
OF PURCHASE OR OPTIONAL REDEMPTION OF TERM BONDS 9
SECTION 9. OPTIONAL REDEMPTION 10
SECTION 10. REDEMPTION PROCEDURE 10
SECTION 11. REGISTRATION AND EXCHANGE OR TRANSFER OF BONDS;PERSONS
TREATED AS OWNERS 14
SECTION 12. FORM OF BONDS 16
SECTION 13. SECURITY FOR THE BONDS 73
SECTION 14. TAX LEVY;ABATEMENTS 73
SECTION 15. FILING WITH COUNTY CLERK 75
SECTION 16. SALE OF BONDS; BOND ORDER; OFFICIAL STATEMENT 25
SECTION 17. CONTINUING DISCLOSURE UNDERTAKING 27
SECTION 18. CREATION OF FUNDS,ACCOUNTS AND APPROPRIATIONS; SPECIAL
COVENANT REGARDING USE OF PROCEEDS 27
SECTION 19. BUDGET STABILIZATION FUND 79
SECTION 20. RIGHTS AND DUTIES OF BOND REGISTRAR 30
SECTION 21. DEFEASANCE 32
SECTION 22. MUNICIPAL BOND INSURANCE POLICY 32
SECTION 23. TAX STATUS OF BONDS 33
SECTION 24. SEVERABILITY 33
SECTION 25. SUPERSEDER AND EFFECTIVE DATE 34
LIST OF EXHIBITS:
A-BOND ORDER
B-BOND PURCHASE AGREEMENT
C-CONTINUING DISCLOSURE UNDERTAKING
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ORDINANCE NUMBER
AN ORDINANCE providing for the issuance of not to exceed
29,000,000 Taxable General Obligation Bonds, Series 2020B, of
the City of McHenry, McHenry County, Illinois, for the purpose of
funding all or a portion of the unfunded liability of said City's Police
Pension Fund, a budget stabilization fund for such unfunded
liability, the levy and collection of a direct annual tax for the
payment of the principal of and interest on said bonds and the sale
of said bonds to Robert W. Baird & Co. Incorporated.
PREAMBLES
WHEREAS
A. Pursuant to the provisions of Section 6 of Article VII of the Constitution of the State
of Illinois, the City of McHenry, McHenry County, Illinois (the "City"), is a home rule unit and
may exercise any power or perform any function pertaining to its government and affairs including,
but not limited to, the power to tax and to incur debt.
B. Pursuant to the provisions of said Section 6, the City has the power to incur debt
payable from ad valorem property tax receipts or from any other lawful source and maturing within
40 years from the time it is incurred without prior referendum approval.
C. The City's sworn police employees participate in the pension plan provided by the
Police Pension Employees Retirement System (the "Pension Fund"), the same being a pension
system established pursuant to Article 3 of the Illinois Pension Code, as amended (the "Pension
Code"), which Pension Fund holds amounts deposited therewith, including investment earnings
thereon, for the payment of the benefits earned by participants of the Pension Fund (the "Pension
Liability").
D. Under the Pension Code, the City is obligated to pay to the Pension Fund the
amounts by which the Pension Liability exceeds the assets on hand in the Pension Fund, the
amount of said difference being referred to herein as the "UAAL".
E. The City Council of the City (the "Corporate Authorities") hereby provides that
the amount of the aggregate UAAL shall be determined prior to the issuance of the hereinafter
defined Bonds by Lauterbach&Amen LLP, an independent accounting firm.
F. The Corporate Authorities deem it advisable for the health, safety, welfare and
convenience of the residents and taxpayers of the City to borrow not to exceed$29,000,000 at this
time for the purpose of funding all or a portion of the UAAL (the "Pension Funding"), providing
a budget stabilization fund for the Pension Liability (the "Budget Stabilization Fund") and paying
expenses incidental thereto, including capitalized interest, which borrowing shall be evidenced by
the issuance of taxable general obligation bonds of the City.
Now THEREFORE Be It Ordained by the City Council of the City of McHenry, McHenry
County, Illinois, in the exercise of its home rule powers, as follows:
Section 1. Definitions. Words and terms used in this Ordinance shall have the meanings
given them, unless the context or use clearly indicates another or different meaning is intended.
Words and terms defined in the singular may be used in the plural and vice-versa. Reference to
any gender shall be deemed to include the other and also inanimate persons, such as corporations,
where applicable.
A. The following words and terms are as defined in the preambles hereto.
City
Corporate Authorities
Pension Code
Pension Fund
Pension Funding
Pension Liability
UAAL
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B. The following words and terms are defined as set forth.
Act"means the Illinois Municipal Code,as supplemented and amended;the Local
Government Debt Reform Act, as amended; and also the home rule powers of the City
under Section 6 of Article VII of the Illinois Constitution of 1970; and in the event of
conflict between the provisions of the code and home rule powers, the home rule powers
shall be deemed to supersede the provisions of the code.
Bond Account" means the Bond Account established and defined in this
Ordinance (Section 18).
Bond Moneys"means the Pledged Taxes and any other moneys deposited into the
Bond Account and investment income earned in the Bond Account.
Bond Order" means the Bond Order as authorized to be executed by the
Designated Officials of the City as provided in this Ordinance (Section 16), substantially
in the form(with related certificates)as attached hereto as Exhibit A, and by which the final
terms of the Bonds will be established.
Bond Purchase Agreement" means the Bond Purchase Agreement, by and
between the City and the Purchaser, as authorized to be executed by the Designated
Officials of the City as provided in this Ordinance (Section 16), substantially in the form
as attached hereto as Exhibit B.
Bond Register" means the books of the City kept by the Bond Registrar to
evidence the registration and transfer of the Bonds.
Bond Registrar"means The Bank of New York Mellon Trust Company,National
Association, Chicago, Illinois, duly authorized to do business as a bond registrar and
paying agent with the powers and duties as herein set forth, or a successor thereto or a
successor designated as bond registrar and paying agent hereunder.
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Bonds"means the not to exceed$29,000,000 Taxable General Obligation Bonds,
Series 2020B, authorized to be issued by this Ordinance.
Book Entry Form" means the form of the Bonds as fully registered and available
in physical form only to the Depository.
County" means The County of McHenry, Illinois.
County Clerk" means the County Clerk of the County.
Depository" means The Depository Trust Company, a limited purpose trust
company organized under the laws of the State of New York, its successors, or a successor
depository qualified to clear securities under applicable state and federal laws.
Designated Officials"means the Mayor and the Treasurer of the City, or if either
one of them shall be unavailable when called to act,the City Clerk, acting together.
Municipal Bond Insurance Policy"means a policy or surety contract guaranteeing
to the registered owners of Bonds the payment of the principal of and interest on the Bonds.
Ordinance" means this Ordinance, numbered as set forth on the title page, and
passed by the Corporate Authorities on the 5th day of October, 2020.
Pledged Taxes"means the real property taxes levied to pay the bonds as described
and levied in(Section 14) of this Ordinance.
Purchaser" means the purchaser (underwriter) of the Bonds, namely, Robert W.
Baird & Co. Incorporated,Naperville, Illinois.
Record Date" means the 15th day of the month of any regular or other interest
payment date occurring on the 30th day of any month and 15 days preceding any interest
payment date occasioned by the redemption of Bonds on other than the first day of a month.
Term Bonds" means Bonds subject to mandatory redemption by operation of the
Bond Account and designated as term bonds herein.
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C. Definitions also appear in the above preambles or in specific sections, as appearing
below. The table of contents preceding and the headings in this Ordinance are for the convenience
of the reader and are not a part of this Ordinance.
Section 2. Incorporation of Preambles. The Corporate Authorities hereby find that all
of the recitals contained in the preambles to this Ordinance are true, correct and complete and do
incorporate them into this Ordinance by this reference.
Section 3. Determination to Issue Bonds. It is necessary and in the best interests of the
City for the public health, safety, welfare and convenience to provide for the Pension Funding, to
pay all necessary or advisable related costs, including an amount for capitalized interest on the
Bonds, and to borrow money and issue the Bonds for the purpose of paying a part of such costs.
It is hereby found and determined that such borrowing of money is for a proper public purpose or
purposes and is in the public interest, and is authorized pursuant to the Act; and these findings and
determinations shall be deemed conclusive.
Section 4. Bond Details. There shall be issued and sold the Bonds in the aggregate
principal amount of not to exceed $29,000,000. The Bonds shall each be designated "Taxable
General Obligation Bond, Series 2020B" (or such other designation as set forth in the Bond
Order);be dated as of the date of delivery as may be set forth in a Bond Order(the "Dated Date");
and shall also bear the date of authentication thereof The Bonds shall be fully registered and in
Book Entry Form, shall be in denominations of$5,000 or integral multiples thereof(but no single
Bond shall represent principal maturing on more than one date), shall be numbered consecutively
in such fashion as shall be determined by the Bond Registrar, and shall mature serially or as Term
Bonds on December 30 of the years and in the amounts and bearing interest at the rates percent
per annum (subject to the right of prior redemption hereinafter stated) as shall be set forth in the
Bond Order;provided, however, that (a)the maximum par amount of any maturity of the Bonds
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shall not exceed $2,450,000, (b)the final maturity of the Bonds shall be not later than December
30, 2041, (c)the maximum interest rate on the Bonds shall not exceed six percent (6.00%) per
annum,and(d)the maximum tax levy for the Bonds in any given year shall not exceed$2,600,000.
Each Bond shall bear interest from the later of its Dated Date as defined or from the most recent
interest payment date to which interest has been paid or duly provided for, until the principal
amount of such Bond is paid or duly provided for, such interest(computed upon the basis of a 360-
day year of twelve 30-day months) being payable on June 30 and December 30 of each year,
commencing on the date as shall be provided in the Bond Order. Interest on each Bond shall be
paid by check or draft of the Bond Registrar, payable upon presentation in lawful money of the
United States of America, to the person in whose name such Bond is registered at the close of
business on the applicable Record Date and mailed to the registered owner of the Bond as shown
in the Bond Register or at such other address furnished in writing by such Registered Owner, or
as otherwise may be agreed with the Depository. The principal of or redemption price due on the
Bonds shall be payable in lawful money of the United States of America upon presentation at the
office so maintained for such purpose in Chicago, Illinois, of the Bond Registrar, or at successor
Bond Registrar or locality.
Section 5. Book Entry Provisions. The Bonds shall be initially issued in the form of a
separate single fully registered Bond for each of the maturities of the Bonds. Upon initial issuance,
the ownership of each such Bond shall be registered in the Bond Register in the name of the
Depository or a designee or nominee of the Depository (such depository or nominee being the
Book Entry Owner"). Except as otherwise expressly provided, all of the outstanding Bonds from
time to time shall be registered in the Bond Register in the name of the Book Entry Owner (and
accordingly in Book Entry Form as such term is used in this Ordinance). Any City officer, as
representative of the City, is hereby authorized, empowered, and directed to execute and deliver
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or utilize a previously executed and delivered Representations Letter substantially in the form
common in the municipal securities industry, or with such changes therein as the officer executing
the Representations Letter on behalf of the City shall approve, his or her execution thereof to
constitute conclusive evidence of approval of such changes, as shall be necessary to effectuate
Book Entry Form. Without limiting the generality of the authority given with respect to entering
into such Representations Letter, it may contain provisions relating to (a)payment procedures,
b) transfers of the Bonds or of beneficial interests therein, (c) redemption notices and procedures
unique to the Depository, (d) additional notices or communications,and(e) amendment from time
to time to conform with changing customs and practices with respect to securities industry transfer
and payment practices. With respect to Bonds registered in the Bond Register in the name of the
Book Entry Owner, none of the City, its officers, or the Bond Registrar shall have any
responsibility or obligation to any broker-dealer, bank, or other financial institution for which the
Depository holds Bonds from time to time as securities depository(each such broker-dealer,bank,
or other financial institution being referred to herein as a "Depository Participant") or to any
person on behalf of whom such a Depository Participant holds an interest in the Bonds. Without
limiting the meaning of the immediately preceding sentence, the City, its officers, and the Bond
Registrar shall have no responsibility or obligation with respect to (a)the accuracy of the records
of the Depository, the Book Entry Owner, or any Depository Participant with respect to any
ownership interest in the Bonds, (b) the delivery to any Depository Participant or any other person,
other than a registered owner of a Bond as shown in the Bond Register or as otherwise expressly
provided in the Representations Letter, of any notice with respect to the Bonds, including any
notice of redemption, or (c) the payment to any Depository Participant or any other person, other
than a registered owner of a Bond as shown in the Bond Register, of any amount with respect to
principal of or interest on the Bonds. No person other than a registered owner of a Bond as shown
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in the Bond Register shall receive a Bond certificate with respect to any Bond. In the event that
a)the City determines that the Depository is incapable of discharging its responsibilities described
herein and in the Representations Letter, (b)the agreement among the City, the Bond Registrar,
and the Depository evidenced by the Representations Letter shall be terminated for any reason, or
c)the City determines that it is in the best interests of the City or of the beneficial owners of the
Bonds either that they be able to obtain certificated Bonds or that another depository is preferable,
the City shall notify the Depository and the Depository shall notify the Depository Participants of
the availability of Bond certificates, and the Bonds shall no longer be restricted to being registered
in the Bond Register in the name of the Book Entry Owner. Alternatively, at such time, the City
may determine that the Bonds shall be registered in the name of and deposited with a successor
depository operating a system accommodating Book Entry Form,as may be acceptable to the City,
or such depository's agent or designee, but if the City does not select such alternate book entry
system,then the Bonds shall be registered in whatever name or names registered owners of Bonds
transferring or exchanging Bonds shall designate, in accordance with the provisions of this
Ordinance.
Section 6. Execution;Authentication. The Bonds shall be executed on behalf of the City
by the manual or duly authorized facsimile signature of its Mayor and attested by the manual or
duly authorized facsimile signature of its City Clerk,as they may determine,and shall be impressed
or imprinted with the corporate seal or facsimile seal of the City. In case any such officer whose
signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond,
such signature shall nevertheless be valid and sufficient for all purposes,the same as if such officer
had remained in office until delivery. All Bonds shall have thereon a certificate of authentication,
substantially in the form provided, duly executed by the Bond Registrar as authenticating agent of
the City and showing the date of authentication. No Bond shall be valid or obligatory for any
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purpose or be entitled to any security or benefit under this Ordinance unless and until such
certificate of authentication shall have been duly executed by the Bond Registrar by manual
signature, and such certificate of authentication upon any such Bond shall be conclusive evidence
that such Bond has been authenticated and delivered under this Ordinance.
Section 7. Mandatory Redemption. As set forth in the Bond Order, Bonds may be
designated Term Bonds under this Ordinance and become subject to mandatory redemption by
operation of the Bond Account at a price of par and accrued interest, without premium, on
December 30 of the years and in the amounts as so set forth in the Bond Order.
Section 8. Term Bonds; Mandatory Redemption and Covenants; Effect of Purchase or
Optional Redemption of Term Bonds. The City covenants that it will redeem Term Bonds pursuant
to the mandatory redemption requirement for such Term Bonds. Proper provision for mandatory
redemption having been made,the City covenants that the Term Bonds so selected for redemption
shall be payable as at maturity. If the City redeems pursuant to optional redemption as provided
for the Bonds or purchases Term Bonds of any maturity and cancels the same from Bond Moneys
as hereinafter described,then an amount equal to the principal amount of Term Bonds so redeemed
or purchased shall be deducted from the mandatory redemption requirements provided for Term
Bonds of such maturity, first, in the current year of such requirement,until the requirement for the
current year has been fully met, and then in any order of such Term Bonds as due at maturity or
subject to mandatory redemption in any year, as the City shall determine. If the City redeems
pursuant to optional redemption or purchases Term Bonds of any maturity and cancels the same
from moneys other than Bond Moneys, then an amount equal to the principal amount of Term
Bonds so redeemed or purchased shall be deducted from the amount of such Term Bonds as due
at maturity or subject to mandatory redemption requirement in any year, as the City shall
determine.
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Section 9. Optional Redemption. As designated in the Bond Order,Bonds may be made
subject to redemption prior to maturity at the option of the City,from any available funds,in whole
or in part, on any date specified, and if in part, in any order of maturity (and, if applicable, in any
order of mandatory redemption payments) as selected by the City, and if less than an entire
maturity, in integral multiples of$5,000, selected by lot by the Bond Registrar, at the redemption
price of not to exceed 102% of the principal amount redeemed plus accrued interest to the date
fixed for redemption.
Section 10. Redemption Procedure. The Bonds subject to redemption shall be identified,
notice given, and paid and redeemed pursuant to the procedures as follows.
A. Notice to Registrar. For a mandatory redemption,unless otherwise notified
by the City, the Bond Registrar will proceed on behalf of the City as its agent to provide
for the mandatory redemption of such Term Bonds without further order or direction
hereunder or otherwise. For an optional redemption, the City shall, at least 45 days prior
to a redemption date (unless a shorter time period shall be satisfactory to the Bond
Registrar), notify the Bond Registrar of such redemption date and of the maturities and
principal amounts of Bonds to be redeemed, and, if Term Bonds are to be redeemed, the
application of the amount redeemed to the mandatory redemption schedule for such Term
Bonds.
B. Selection of Bonds within a Maturity. For purposes of any redemption of
less than all of the Bonds of a single maturity,the particular Bonds or portions of Bonds to
be redeemed shall be selected by lot by the Bond Registrar for the Bonds of such maturity
by such method of lottery as the Bond Registrar shall deem fair and appropriate;provided,
that such lottery shall provide for the selection for redemption of Bonds or portions thereof
so that any $5,000 Bond or $5,000 portion of a Bond shall be as likely to be called for
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redemption as any other such $5,000 Bond or $5,000 portion. The Bond Registrar shall
make such selection upon the earlier of the irrevocable receipt of funds sufficient to pay
the redemption price of the Bonds to be redeemed or the time of the giving of official notice
of redemption.
C. Official Notice of Redemption. The Bond Registrar shall promptly notify
the City in writing of the Bonds or portions of Bonds selected for redemption and, in the
case of any Bond selected for partial redemption, the principal amount thereof to be
redeemed. Unless waived by the registered owner of Bonds to be redeemed, official notice
of any such redemption shall be given by the Bond Registrar on behalf of the City by
mailing the redemption notice by first class U.S. mail not less than 30 days and not more
than 60 days prior to the date fixed for redemption to each registered owner of the Bond or
Bonds to be redeemed at the address shown on the Bond Register or at such other address
as is furnished in writing by such registered owner to the Bond Registrar. All official
notices of redemption shall include the name of the Bonds and at least the information as
follows:
1) the redemption date;
2) the redemption price;
3) if less than all of the outstanding Bonds of a particular maturity are to
be redeemed, the identification (and, in the case of partial redemption of Bonds
within such maturity, the respective principal amounts) of the Bonds to be
redeemed;
4) a statement that on the redemption date the redemption price will
become due and payable upon each such Bond or portion thereof called for
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redemption and that interest thereon shall cease to accrue from and after said date;
and
5) the place where such Bonds are to be surrendered for payment of the
redemption price,which place of payment shall be the designated office of the Bond
Registrar maintained for that purpose.
D. Conditional Redemption. Unless moneys sufficient to pay the redemption
price of the Bonds to be redeemed shall have been received by the Bond Registrar prior to
the giving of such notice of redemption, such notice may, at the option of the City, state
that said redemption shall be conditional upon the receipt of such moneys by the Bond
Registrar on or prior to the date fixed for redemption. If such moneys are not received,
such notice shall be of no force and effect, the City shall not redeem such Bonds, and the
Bond Registrar shall give notice, in the same manner in which the notice of redemption
was given, that such moneys were not so received and that such Bonds will not be
redeemed.
E. Bonds Shall Become Due. Subject to the stated condition in paragraph (D)
immediately preceding, official notice of redemption having been given as described, the
Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due
and payable at the redemption price therein specified, and from and after such date (unless
the City shall default in the payment of the redemption price) such Bonds or portions of
Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in
accordance with said notice, such Bonds shall be paid by the Bond Registrar at the
redemption price. The procedure for the payment of interest due as part of the redemption
price shall be as herein provided for payment of interest otherwise due.
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F. Insufficiency in Notice Not Affecting Other Bonds; Failure to Receive
Notice; Waiver. Neither the failure to mail such redemption notice, nor any defect in any
notice so mailed, to any particular registered owner of a Bond, shall affect the sufficiency
of such notice with respect to other registered owners. Notice having been properly given,
failure of a registered owner of a Bond to receive such notice shall not be deemed to invali-
date, limit or delay the effect of the notice or redemption action described in the notice.
Such notice may be waived in writing by a registered owner of a Bond entitled to receive
such notice, either before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by registered owners shall be filed with the Bond Registrar, but
such filing shall not be a condition precedent to the validity of any action taken in reliance
upon such waiver. In lieu of the foregoing official notice, so long as the Bonds are held in
Book Entry Form, notice may be given as provided in the Representations Letter, and the
giving of such notice shall constitute a waiver by the Depository and the Book Entry
Owner, as registered owner, of the foregoing notice.
G. New Bond in Amount Not Redeemed. Upon surrender for any partial
redemption of any Bond, there shall be prepared for the registered owner a new Bond or
Bonds of like tenor, of authorized denominations, of the same maturity, and bearing the
same rate of interest in the amount of the unpaid principal.
H. Effect of Nonpayment upon Redemption. If any Bond or portion of Bond
called for redemption shall not be so paid upon surrender thereof for redemption, the
principal shall, until paid or duly provided for, bear interest from the redemption date at
the rate borne by the Bond or portion of Bond so called for redemption.
I.Bonds to be Canceled; Payment to Identify Bonds. All Bonds which have
been redeemed shall be canceled and destroyed by the Bond Registrar and shall not be
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reissued. Upon the payment of the redemption price of Bonds being redeemed, each check
or other transfer of funds issued for such purpose shall bear the CUSIP number identifying,
by issue and maturity, the Bonds being redeemed with the proceeds of such check or other
transfer.
J.Additional Notice. The City agrees to provide such additional notice of
redemption as it may deem advisable at such time as it determines to redeem Bonds,taking
into account any requirements or guidance of the Securities and Exchange Commission,
the Municipal Securities Rulemaking Board, the Government Accounting Standards
Board, or any other federal or state agency having jurisdiction or authority in such matters;
provided, however, that such additional notice shall be (1) advisory in nature, (2) solely in
the discretion of the City, (3) not be a condition precedent of a valid redemption or a part
of the Bond contract,and(4)any failure or defect in such notice shall not delay or invalidate
the redemption of Bonds for which proper official notice shall have been given. Reference
is also made to the provisions of the Continuing Disclosure Undertaking of the City with
respect to the Bonds, which may contain other provisions relating to notice of redemption
of Bonds.
Section 11. Registration and Exchange or Transfer of Bonds; Persons Treated as
Owners. The City shall cause books (the "Bond Register")for the registration and for the transfer
of the Bonds as provided in this Ordinance to be kept at the office maintained for such purpose of
the Bond Registrar, which is hereby constituted and appointed the registrar of the City for the
Bonds. The City is authorized to prepare, and the Bond Registrar or such other agent as the City
may designate shall keep custody of, multiple Bond blanks executed by the City for use in the
transfer and exchange of Bonds. Subject to the provisions of this Ordinance relating to the Bonds
in Book Entry Form, any Bond may be transferred or exchanged, but only in the manner, subject
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to the limitations, and upon payment of the charges as set forth in this Ordinance. Upon surrender
for transfer or exchange of any Bond at the office of the Bond Registrar maintained for such
purpose, duly endorsed by or accompanied by a written instrument or instruments of transfer or
exchange in form satisfactory to the Bond Registrar and duly executed by the registered owner or
an attorney for such owner duly authorized in writing, the City shall execute and the Bond
Registrar shall authenticate, date and deliver in the name of the transferee or transferees or, in the
case of an exchange, the registered owner, a new fully registered Bond or Bonds of like tenor, of
the same maturity,bearing the same interest rate,of authorized denominations,for a like aggregate
principal amount. The Bond Registrar shall not be required to transfer or exchange any Bond
during the period from the close of business on the Record Date for an interest payment to the
opening of business on such interest payment date or during the period of 15 days preceding the
giving of notice of redemption of Bonds or to transfer or exchange any Bond all or a portion of
which has been called for redemption. The execution by the City of any fully registered Bond
shall constitute full and due authorization of such Bond, and the Bond Registrar shall thereby be
authorized to authenticate, date and deliver such Bond; provided, however, that the principal
amount of Bonds of each maturity authenticated by the Bond Registrar shall not at any one time
exceed the authorized principal amount of Bonds for such maturity less the amount of such Bonds
which have been paid. The person in whose name any Bond shall be registered shall be deemed
and regarded as the absolute owner thereof for all purposes, and payment of the principal of or
interest on any Bond shall be made only to or upon the order of the registered owner thereof or his
legal representative. All such payments shall be valid and effectual to satisfy and discharge the
liability upon such Bond to the extent of the sum or sums so paid. No service charge shall be made
for any transfer or exchange of Bonds, but the City or the Bond Registrar may require payment of
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a sum sufficient to cover any tax or other governmental charge that may be imposed in connection
with any transfer or exchange of Bonds.
Section 12. Form of Bonds. The Bonds shall be in substantially the form hereinafter set
forth;provided, however, that if the text of the Bonds is to be printed in its entirety on the front
side of the Bonds, then the second paragraph on the front side and the legend "See Reverse Side
for Additional Provisions"shall be omitted and the text of paragraphs set forth for the reverse side
shall be inserted immediately after the first paragraph.
This space intentionally blank.]
16-
FORM OF BONDS-FRONT SIDE]
REGISTERED REGISTERED
No.
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTY OF MCHENRY
CITY OF MCHENRY
TAXABLE GENERAL OBLIGATION BOND
SERIES 2020B
See Reverse Side for
Additional Provisions.
Interest Maturity Dated
Rate:Date: December 30, Date: 2020 CUSIP:
Registered Owner: CEDE&Co.
Principal Amount: DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the City of McHenry, McHenry County,
Illinois, a municipality, home rule unit, and political subdivision of the State of Illinois (the
City"), hereby acknowledges itself to owe and for value received promises to pay to the
Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity
Date identified above (subject to right of prior redemption as hereinafter stated), the Principal
Amount identified above and to pay interest (computed on the basis of a 360-day year of twelve
30-day months)on such Principal Amount from the later of the Dated Date of this Bond identified
above or from the most recent interest payment date to which interest has been paid or duly
provided for,at the Interest Rate per annum identified above,such interest to be payable on June 30
and December 30 of each year, commencing June 30, 2021,until said Principal Amount is paid or
duly provided for. The principal of or redemption price on this Bond is payable in lawful money
of the United States of America upon presentation hereof at the office maintained for such purpose
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of The Bank of New York Mellon Trust Company,National Association,with offices in Chicago,
Illinois, as paying agent and bond registrar (the "Bond Registrar"). Payment of interest shall be
made to the Registered Owner hereof as shown on the registration books of the City maintained
by said Bond Registrar at the close of business on the applicable Record Date. The applicable
record date shall be the 15th day of the month of any regular or other interest payment date
occurring on the 30th day of any month and 15 days preceding any interest payment date
occasioned by the redemption of Bonds on other than the first day of a month. Interest shall be
paid by check or draft of the Bond Registrar, payable upon presentation in lawful money of the
United States of America, mailed to the address of such Registered Owner as it appears on such
registration books, or at such other address furnished in writing by such Registered Owner to the
Bond Registrar, or as otherwise agreed by the City and the Bond Registrar for so long as this Bond
is held by a qualified securities clearing corporation as depository, or nominee, in Book Entry
Form as provided for same.
Reference is hereby made to the further provisions of this Bond set forth on the reverse
hereof, and such further provisions shall for all purposes have the same effect as if set forth at this
place.
It is hereby certified and recited that all conditions, acts, and things required by the
Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance
of this Bond, have existed and have been properly done, happened, and been performed in regular
and due form and time as required by law; that the indebtedness of the City, represented by the
Bonds, and including all other indebtedness of the City, howsoever evidenced or incurred, does
not exceed any constitutional or statutory or other lawful limitation; and that provision has been
made for the collection of a direct annual tax, in addition to all other taxes, on all of the taxable
property in the City sufficient to pay the interest hereon as the same falls due and also to pay and
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discharge the principal hereof at maturity. For the prompt payment of this Bond, both principal
and interest,at maturity,and the levy of taxes sufficient therefor,the full faith,credit and resources
of the City are hereby irrevocably pledged. Amounts to the credit of the Budget Stabilization Fund
are not pledged to the payment of the Bonds.
This Bond shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Bond Registrar.
IN WITNESS WHEREOF the City of McHenry,McHenry County,Illinois,by its City Council,
has caused this Bond to be executed by the manual or duly authorized facsimile signature of its
Mayor and attested by the manual or duly authorized facsimile signature of its City Clerk and its
corporate seal or a facsimile thereof to be impressed or reproduced hereon, all as appearing hereon
and as of the Dated Date identified above.
Mayor, City of McHenry
McHenry County, Illinois
ATTEST:
City Clerk, City of McHenry
McHenry County, Illinois
SEAL]
Bond Registrar and Paying Agent:
The Bank of New York Mellon Trust
Company,National Association
Chicago, Illinois
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FORM OF AUTHENTICATION]
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described in the within-mentioned Ordinance and is one of
the Taxable General Obligation Bonds, Series 2020B, of the City of McHenry, McHenry County,
Illinois.
Date of Authentication:The Bank of New York Mellon Trust
Company,National Association
as Bond Registrar
By
Authorized Officer
FORM OF BONDS-REVERSE SIDE]
This bond is one of a series of bonds (the "Bonds") in the aggregate principal amount of
issued by the City for the purpose of paying a part of the costs of a certain
Pension Funding and a Budget Stabilization Fund and of paying expenses incidental thereto,
including capitalized interest, all as described and defined in the ordinance authorizing the Bonds
the "Ordinance"),pursuant to and in all respects in compliance with the applicable provisions of
the Illinois Municipal Code, as supplemented and amended; the Local Government Debt Reform
Act (of Illinois), as amended; and as further supplemented and, where necessary, superseded, by
the powers of the City as a home rule unit under the provisions of Section 6 of Article VII of the
Illinois Constitution of 1970; and with the Ordinance, which has been duly passed by the City
Council of the City on the 5th day of October, 2020, and approved by the Mayor.
This Bond is subject to optional or mandatory redemption, or both, upon the terms,notice,
price and other applicable provisions of the Ordinance and related documents.
This Bond may be transferred or exchanged, but only in the manner, subject to the
limitations, and upon payment of the charges as set forth in the Ordinance. The Bond Registrar
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shall not be required to transfer or exchange any Bond during the period from the close of business
on the Record Date for an interest payment to the opening of business on such interest payment
date or during the period of 15 days preceding the giving of notice of redemption of Bonds or to
transfer or exchange any Bond all or a portion of which has been called for redemption.
The City and the Bond Registrar may deem and treat the Registered Owner hereof as the
absolute owner hereof for the purpose of receiving payment of or on account of principal hereof
and interest due hereon and for all other purposes, and the City and the Bond Registrar shall not
be affected by any notice to the contrary.
THIS BOND IS NOT A "TAX-EXEMPT" BOND PURSUANT TO THE INTERNAL REVENUE
CODE OF 1986.
21-
FORM OF ASSIGNMENT]
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
Here insert Social Security Number,
Employer Identification Number or
other Identifying Number
Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and appoint
as attorney to transfer the said Bond on the books kept for registration thereof with full power of
substitution in the premises.
Dated:
Signature guaranteed:
NOTICE: The signature to this transfer and assignment must correspond with the name of the
Registered Owner as it appears upon the face of the within Bond in every particular,
without alteration or enlargement or any change whatever.
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Section 13. Security for the Bonds. The Bonds are a general obligation of the City, for
which the full faith and credit of the City are irrevocably pledged, and are payable from the levy
of the Pledged Taxes on all of the taxable property in the City, without limitation as to rate or
amount.
Section 14. Tax Levy; Abatements. For the purpose of providing funds required to pay
the interest on the Bonds promptly when and as the same falls due, and to pay and discharge the
principal thereof at maturity and as subject to mandatory redemption, there is hereby levied upon
all of the taxable property within the City, in the years for which any of the Bonds are outstanding,
a direct annual tax sufficient for that purpose. Such levy shall be fully set forth in the Bond Order.
The Pledged Taxes and other moneys on deposit (collectively, the "Bond Moneys") in a Bond
Account hereunder and allocable to any of the Bonds shall be applied to pay principal of and
interest on such Bonds as follows:
A. Bond Moneys shall be applied to the payment of interest when due and
principal or redemption price when due at maturity or as redeemed pursuant to mandatory
redemption from such Bond Account, or
B. On or before 65 days preceding a mandatory redemption date, and provided
notice is given to the Bond Registrar on or before said 65th day preceding a mandatory
redemption date, Bond Moneys up to the amount of the redemption requirement on such
mandatory redemption date plus interest due on Term Bonds on such date may be applied
1)to the purchase of Term Bonds of the maturity for which such mandatory redemption
requirement was established at prices (including commissions and charges, if any) not
exceeding par and accrued interest to such mandatory redemption date or (2) to the
redemption of such Bonds, without premium, pursuant to optional redemption provisions
applicable thereto. Upon the purchase or redemption of Term Bonds of any maturity
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pursuant to this paragraph (B), an amount equal to the principal amount of such Bonds or
applicable portion thereof so purchased or redeemed shall be deducted from the mandatory
redemption requirement as provided for Term Bonds of such maturity, first, in the current
year of such requirement, until the requirement for the current year has been fully met, and
then in any order of payment on the Term Bonds as due at maturity or subject to mandatory
redemption in any year as the City shall at such time determine.
Interest or principal coming due at any time when there are insufficient funds on hand from the
Pledged Taxes to pay the same shall be paid promptly when due from current funds on hand in
advance of the collection of the Pledged Taxes herein levied; and when the Pledged Taxes shall
have been collected, reimbursement shall be made to said funds in the amount so advanced. The
City covenants and agrees with the purchasers and registered owners of the Bonds that so long as
any of the Bonds remains outstanding,the City will take no action or fail to take any action which
in any way would adversely affect the ability of the City to levy and collect the foregoing tax levy.
The City and its officers will comply with all present and future applicable laws in order to assure
that the Pledged Taxes may be levied, extended and collected as provided herein and deposited
into the Bond Account. Whenever other funds from any lawful source are made available for the
purpose of paying any principal of or interest on the Bonds so as to enable the abatement of the
taxes levied herein for the payment of same, the Corporate Authorities shall, by proper
proceedings, direct the deposit of such funds into the Bond Account and further shall direct the
abatement of the taxes by the amount so deposited. The City covenants and agrees that it will not
direct the abatement of taxes until money has been deposited into the Bond Account in the amount
of such abatement. A certified copy or other notification of any such proceedings abating taxes
may then be filed with the County Clerk in a timely manner to effect such abatement.
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Section 15. Filing with County Clerk. Promptly, after this Ordinance becomes effective,
and upon the execution of a Bond Order, a copy hereof, certified by the City Clerk, shall be filed
with the County Clerk, along with the Bond Order. Thereupon, the County Clerk shall in and for
each of the years provided, ascertain the rate percent required to produce the aggregate Pledged
Taxes levied in each of such years; and the County Clerk shall extend the same for collection on
the tax books in connection with other taxes levied in such years in and by the City for general
corporate purposes of the City; and in each of those years such annual tax shall be levied and
collected by and for and on behalf of the City in like manner as taxes for general corporate purposes
for such years are levied and collected, without limit as to rate or amount, and in addition to and
in excess of all other taxes.
Section 16. Sale ofBonds;Bond Order; Official Statement. The Designated Officials are
hereby authorized to proceed, without any further authorization or direction whatsoever from the
Corporate Authorities,to sell and deliver all or a part of the Bonds upon the terms as prescribed in
this Section, pursuant to a Bond Order. The Bonds shall be sold and delivered to the Purchaser at
the price of not less than 98%of the par value of the principal amount thereof,plus accrued interest,
if any, to the date of delivery. Such sale shall be made upon the advice (in the form of a written
certificate or report) of the Speer Financial, Inc., the City's municipal advisor (the "Municipal
Advisor"), that the net interest cost rate on the Bonds so sold, calculated in accordance with
customary market practice, does not exceed 6.00% and that such net interest cost rate and all of
the other terms of the Bonds are fair and reasonable in view of current conditions in the bond
markets. Nothing in this Section shall require the Designated Officials to sell any Bonds if in their
judgment,aided by the Municipal Advisor,the conditions in the bond markets shall have markedly
deteriorated from the time of adoption hereof,but the Designated Officials shall have the authority
to sell all or a portion of the Bonds in any event so long as the limitations set forth in this Ordinance
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and the conditions of this Section shall have been met. Upon the sale of Bonds, the Designated
Officials and any other officers of the City as shall be appropriate, shall be and are hereby
authorized and directed to approve or execute, or both, such documents of sale of the Bonds as
may be necessary, including, without limitation, a Bond Order, Preliminary Official Statement,
Official Statement, Bond Purchase Agreement, and closing documents. At the time of the
execution and delivery of the Bond Purchase Agreement, the Designated Officials shall find and
determine that no person holding any office of the City either by election or appointment,is in any
manner financially interested either directly, in his or her own name, or indirectly in the name of
any other person, association, trust or corporation in said agreement with the Purchaser for the
purchase of the Bonds.
The distribution of the Preliminary Official Statement relating to the Bonds substantially
in the form presented before this meeting is hereby in all respects authorized and approved, and
the proposed use by the Purchaser of an Official Statement (in substantially the form of the
Preliminary Official Statement but with appropriate variations to reflect the final terms of the
Bonds) is hereby approved. A Bond Purchase Agreement for the sale of the Bonds to the
Purchaser,substantially in the form attached to this Ordinance as Exhibit B, is hereby in all respects
authorized and approved. The officer(s) designated to sign the Bond Purchase Agreement are
hereby authorized to execute same, and their execution shall constitute full and complete approval
of all necessary or appropriate completions and revisions as shall appear therein. Upon the sale of
any Bonds, the Designated Officials shall prepare a Bond Order,to be substantially in the form of
Exhibit A attached hereto, which shall include the pertinent details of sale as provided herein, and
such shall be entered into the records of the City and made available to the Corporate Authorities
at a regular public meeting thereof. The Designated Officials shall also file with the County Clerk
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the Bond Order or like document including a statement of taxes. The authority to sell the Bonds
pursuant to a Bond Order as herein provided shall expire on April 1, 2021.
Section 17. Continuing Disclosure Undertaking. The Mayor or the Treasurer of the City
is hereby authorized, empowered and directed to execute and deliver the Continuing Disclosure
Undertaking (the "Continuing Disclosure Undertaking") in substantially the form set forth as
Exhibit C to this Ordinance, attached hereto, or with such changes therein as the officer executing
the Continuing Disclosure Undertaking on behalf of the City shall approve, his or her execution
thereof to constitute conclusive evidence of his or her approval of such changes. When the
Continuing Disclosure Undertaking is executed and delivered on behalf of the City as herein
provided, the Continuing Disclosure Undertaking will be binding on the City and the officers,
employees and agents of the City, and the officers, employees and agents of the City are hereby
authorized, empowered and directed to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the provisions of the Continuing
Disclosure Undertaking as executed. Notwithstanding any other provision of this Ordinance, the
sole remedies for failure to comply with the Continuing Disclosure Undertaking shall be the ability
of the beneficial owner of any Bond to seek mandamus or specific performance by court order to
cause the City to comply with its obligations under the Continuing Disclosure Undertaking.
Section 18. Creation of Funds, Accounts and Appropriations; Special Covenant
Regarding Use of Proceeds.
A. There is hereby created the "Taxable General Obligation Bonds, Series 2020B,
Bond Account" (the "Bond Account"), which shall be the account for the payment of principal of
and interest on the Bonds. Accrued interest and premium, if any, received upon delivery of the
Bonds, shall be deposited into the Bond Account and be applied to pay first interest coming due
on the Bonds. In addition, but only to the extent as provided in the Bond Order, a sum of Bond
27-
proceeds as may be sufficient so as to provide for the payment of interest on the Bonds up to and
including December 30, 2021 (or for any shorter period as determined), shall be set aside into the
Bond Account at the time of the delivery of the Bonds.
B. The Pledged Taxes shall either be deposited into the Bond Account and used solely
and only for paying the principal of and interest on the Bonds or be used to reimburse a fund or
account from which advances to the Bond Account may have been made to pay principal of or
interest on the Bonds prior to receipt of Pledged Taxes. Interest income or investment profit earned
in the Bond Account shall be retained in the Bond Account for payment of the principal of or
interest on the Bonds on the interest payment date next after such interest or profit is received or,
to the extent lawful,transferred to such other fund as may be determined. The City hereby pledges,
as equal and ratable security for the Bonds, all present and future proceeds of the Pledged Taxes
on deposit in the Bond Account for the sole benefit of the registered owners of the Bonds, subject
to the reserved right noted to transfer certain interest income or investment profit earned in the
Bond Account to other funds.
C. The amount necessary from the proceeds of the Bonds shall be either used to pay
expenses directly at the time of issuance of the Bonds or be deposited into a separate account,
hereby created, designated the "Series 2020B Expense Account" to be used to pay expenses of
issuance of the Bonds. Disbursements from such account shall be made from time to time as
necessary. Moneys not disbursed from such Expense Account within six (6) months shall be
transferred by the Treasurer for deposit into the Bond Fund, and any deficiencies in the Expense
Account shall be paid from other lawfully available City funds.
D. The remaining proceeds of the Bonds are hereby appropriated to (i)prepay a portion
of the UAAL and (ii) fund the Budget Stabilization Fund. The amount used to fund the UAAL
and the Budget Stabilization Fund shall be set forth in the Bond Order. The sale proceeds
28-
appropriated to prepay the UAAL shall be paid to the Pension Fund on the date of the delivery of
the Bonds. Sale Proceeds appropriated to fund the Budget Stabilization Fund shall be deposited
into a special fund of the City hereby established and designated as the "2020 Pension Budget
Stabilization Fund." Funds to the credit of the Budget Stabilization Fund shall be used by the City,
from time to time, to pay the Pension Liability in accordance with the provisions of Section 19
hereof.
E. The City does hereby specially covenant with the Purchaser and with the registered
owners or holders of the Bonds from time to time that so long as any of the Bonds are outstanding,
the City will hold and apply the Bond proceeds exclusively for the Pension Funding.
Section 19. Budget Stabilization Fund. The purpose of the Budget Stabilization Fund is
to mitigate the budget impact of changes in the amount of the City's payments to the Pension Fund
caused by the actual rate of return earned on the City's investment in the assets of the Pension
Fund (the "Actual ROI") relative to the rate of return (the "ROI") assumed by the Pension Fund.
The Budget Stabilization Fund is initially funded with proceeds of the Bonds as set forth in Section
18 hereof.
In any year in which the City's payments to the Pension Fund increase as a result of an
increase in the UAAL caused by an Actual ROI below the ROI for the Pension Fund, the City
may, in its discretion, withdraw funds from the Budget Stabilization Fund to the extent such
withdrawal does not cause the balance in the Budget Stabilization Fund to be less than $0, and
deposit such funds in the Pension Fund for the purpose of defraying a portion of the increase in
the City's payment to the Pension Fund.
In any year in which the City's payments to the the Pension Fund decrease as a result of a
decrease in the UAAL caused by an Actual ROI in excess of the ROI, for the Pension Fund, the
City may, in its discretion,withdraw funds in an amount not to exceed the amount of such increase
29-
from the Pension Fund and deposit such amount to the Budget Stabilization Fund, provided,
however, that the amount on hand in the Budget Stabilization Fund shall not exceed the amount
set forth in the Bond Order(such amount not to exceed $1,000,000).
Amounts remaining in the Budget Stabilization Fund immediately prior to the final
payment of principal and interest on the Bonds shall be transferred out of the Budget Stabilization
Fund and used for the following purposes in the following order: (1)to make the final debt service
payment on the Bonds, (2) to pay any remaining UAAL with respect to the Pension Fund and
3)to be deposited into the Pension Fund, as directed by the Corporate Authorities.
Amounts to the credit of the Budget Stabilization Fund are not pledged to the payment of
the Bonds.
Section 20. Rights and Duties ofBond Registrar. If requested by the Bond Registrar, any
officer of the City is authorized to execute standard forms of agreements between the City and the
Bond Registrar with respect to the obligations and duties of the Bond Registrar under this
Ordinance. In addition to the terms of such agreements and subject to modification thereby, the
Bond Registrar by acceptance of duties under this Ordinance agrees (a)to act as bond registrar,
paying agent, authenticating agent, and transfer agent as provided herein; (b)to maintain a list of
Bondholders as set forth herein and to furnish such list to the City upon request, but otherwise to
keep such list confidential to the extent permitted by law; (c)to cancel and/or destroy Bonds which
have been paid at maturity or upon redemption or submitted for exchange or transfer; (d)to furnish
the City at least annually a certificate with respect to Bonds canceled and/or destroyed; and (e)to
furnish the City at least annually an audit confirmation of Bonds paid, Bonds outstanding and
payments made with respect to interest on the Bonds. The City covenants with respect to the Bond
Registrar, and the Bond Registrar further covenants and agrees as follows:
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A) The City shall at all times retain a Bond Registrar with respect to the Bonds; it will
maintain at the designated office(s) of such Bond Registrar a place or places where Bonds may be
presented for payment, registration, transfer or exchange; and it will require that the Bond
Registrar properly maintain the Bond Register and perform the other duties and obligations
imposed upon it by this Ordinance in a manner consistent with the standards,customs and practices
of the municipal securities industry.
B) The Bond Registrar shall signify its acceptance of the duties and obligations imposed
upon it by this Ordinance by executing the certificate of authentication on any Bond, and by such
execution the Bond Registrar shall be deemed to have certified to the City that it has all requisite
power to accept and has accepted such duties and obligations not only with respect to the Bond so
authenticated but with respect to all the Bonds. Any Bond Registrar shall be the agent of the City
and shall not be liable in connection with the performance of its duties except for its own
negligence or willful wrongdoing. Any Bond Registrar shall, however, be responsible for any
representation in its certificate of authentication on Bonds.
C) The City may remove the Bond Registrar at any time. In case at any time the Bond
Registrar shall resign, shall be removed, shall become incapable of acting, or shall be adjudicated
a bankrupt or insolvent, or if a receiver, liquidator, or conservator of the Bond Registrar or of the
property thereof shall be appointed,or if any public officer shall take charge or control of the Bond
Registrar or of the property or affairs thereof, the City covenants and agrees that it will thereupon
appoint a successor Bond Registrar. The City shall give notice of any such appointment made by
it to each registered owner of any Bond within twenty days after such appointment in the same
manner, or as nearly the same as may be practicable, as for a redemption of Bonds. Any Bond
Registrar appointed under the provisions of this Section shall be a bank,trust company,or national
banking association maintaining a corporate trust office in Illinois or in New York, and having
31-
capital and surplus and undivided profits in excess of$100,000,000. The City Clerk of the City is
hereby directed to file a certified copy of this Ordinance with the Bond Registrar.
Section 21. Defeasance. Any Bond or Bonds which (a) are paid and canceled, (b)which
have matured and for which sufficient sums been deposited with the Bond Registrar to pay all
principal and interest due thereon, or (c) for which sufficient funds and Defeasance Obligations
have been deposited with the Bond Registrar or similar institution to pay, taking into account
investment earnings on such obligations, all principal of and interest on such Bond or Bonds when
due at maturity or as called for redemption, pursuant to an irrevocable escrow or trust agreement,
shall cease to have any lien on or right to receive or be paid from the Pledged Taxes and shall no
longer have the benefits of any covenant for the registered owners of outstanding Bonds as set
forth herein as such relates to lien and security of the outstanding Bonds. All covenants relative
to the payment,registration,transfer,and exchange; are expressly continued for all Bonds whether
outstanding Bonds or not. For purposes of this section, "Defeasance Obligations" means
a) direct and general full faith and credit obligations of the United States Treasury ("Directs"),
b) certificates of participation or trust receipts in trusts comprised wholly of Directs or (c) other
obligations unconditionally guaranteed as to timely payment by the United States Treasury.
Section 22. Municipal Bond Insurance Policy. The Designated Officials are hereby
expressly authorized to sell the Bonds subject to the provisions of a Municipal Bond Insurance
Policy. In such event, so long as such Municipal Bond Insurance Policy shall be in full force and
effect,the City and the Bond Registrar agree to comply with such usual and reasonable provisions
regarding presentment and payment of the Bonds, subrogation of the rights of the bondholders to
the issuer of such policy when holding Bonds, amendment hereof, or other terms, as approved by
any one or more of the Designated Officials on advice of counsel, his, her or their approval to
32-
constitute full and complete acceptance by the City of such terms and provisions under authority
of this section.
Section 23. Tax Status of Bonds. The City hereby covenants that it will not take any
action, omit to take any action or permit the taking or omission of any action within its control if
taking, permitting or omitting to take such action would cause the interest on the Bonds not to be
included in the gross income of the recipients thereof for federal income tax purposes.
Section 24. Severability. If any section,paragraph, clause or provision of this Ordinance
shall be held invalid,the invalidity of such section,paragraph, clause or provision shall not affect
any of the other provisions of this Ordinance.
33-
Section 25. Superseder and Effective Date. All ordinances, resolutions and orders, or
parts thereof, in conflict with this Ordinance, are to the extent of such conflict hereby superseded;
and this Ordinance shall be in full force and effect immediately upon its passage and approval.
AYES:
NAYS:
ABSENT:
ADOPTED: October 5, 2020 APPROVED:
October 5, 2020
Mayor, City of McHenry
McHenry County, Illinois
RECORDED In City Records: October 5, 2020.
Attest:
City Clerk, City of McHenry
McHenry County, Illinois
34-
STATE OF ILLINOIS
SS
COUNTY OF MCHENRY )
CERTIFICATION OF AGENDA,MINUTES AND ORDINANCE
I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of
the City of McHenry, McHenry County, Illinois (the "City"), and as such official I am the keeper
of the official journal of proceedings, books,records, minutes and files of the City and of the City
Council (the "Corporate Authorities") of the City.
I do further certify that the foregoing extract of minutes is a full, true and complete
transcript of that portion of the minutes of the meeting (the "Meeting") of the Corporate
Authorities held on the 5th day of October, 2020 insofar as the same relates to the adoption of an
ordinance, numbered entitled:
AN ORDINANCE providing for the issuance of not to exceed
29,000,000 Taxable General Obligation Bonds, Series 2020B, of
the City of McHenry, McHenry County, Illinois, for the purpose of
funding all or a portion of the unfunded liability of said City's Police
Pension Fund, a budget stabilization fund for such unfunded
liability, the levy and collection of a direct annual tax for the
payment of the principal of and interest on said bonds and the sale
of said bonds to Robert W. Baird & Co. Incorporated.
the "Ordinance")a true,correct and complete copy of which Ordinance as adopted at the Meeting
appears in the foregoing transcript of the minutes of the Meeting.
I do further certify that the deliberations of the Corporate Authorities on the adoption of
the Ordinance were taken openly;that the vote on the adoption of the Ordinance was taken openly;
that the Meeting was held at a specified time and place convenient to the public; that notice of the
Meeting was duly given to all newspapers, radio or television stations, and other news media
requesting such notice; that an agenda(the "Agenda") for the Meeting was posted at the location
where the Meeting was held and at the principal office of the Corporate Authorities (both such
locations being at City Hall)on a day which was not a Saturday, Sunday or legal holiday for Illinois
municipalities and at least 72 hours in advance of the meeting and remained so posted continuously
until adjournment of the Meeting; that the Agenda contained a specific action item relating to
the Bonds; that a true and complete copy of the Agenda is attached hereto; that the Meeting
was called and held in strict compliance with the provisions of the Open Meetings Act of the State
of Illinois, as amended; and the Illinois Municipal Code, as amended; and that the Corporate
Authorities have complied with all of the provisions of such act and code and with all of the
procedural rules of the Corporate Authorities in the adoption of the Ordinance.
IN WITNESS WHEREOF I hereunto affix my official signature and the seal of the City this
5th day of October, 2020.
City Clerk
SEAL]
Attachments: Agenda, Minutes, Ordinance]
2-
STATE OF ILLINOIS
SS
COUNTY OF MCHENRY )
CERTIFICATE OF FILING
I, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk
of The County of McHenry, Illinois, and as such officer I do hereby certify that on the day
of 2020 there was filed in my office a properly certified copy of Ordinance
Number passed by the City Council of the City of McHenry, McHenry County,
Illinois, on the 5th day of October, 2020 and entitled:
AN ORDINANCE providing for the issuance of not to exceed
29,000,000 Taxable General Obligation Bonds, Series 2020B, of
the City of McHenry, McHenry County, Illinois, for the purpose of
funding all or a portion of the unfunded liability of said City's Police
Pension Fund, a budget stabilization fund for such unfunded
liability, the levy and collection of a direct annual tax for the
payment of the principal of and interest on said bonds and the sale
of said bonds to Robert W. Baird& Co. Incorporated.
and approved by said Mayor, and that the same has been deposited in, and all as appears from, the
official files and records of my office.
IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of The
County of McHenry, Illinois,this day of 2020.
County Clerk of The County of
McHenry, Illinois
SEAL]
City of McHenry, Illinois
Hypothetical Refunding of Police Pension Fund UAAL
Scenario#1: Level Debt Service Scenario- 7% Rate of Return
April 30 Alternative Funding Method Level Debt Service Illustration(1)
Tax Collection Fiscal Year
Year Ending of UAAL Annual Payment to Net Total Assumed UAAL POB
December 31 Payment Amortize UAAL(2)
Principal Interest Debt Service Savings(3> Balance(2)
Balance
12/15 Avg=
2.59%
23,809,268
2020 2021 2,013,099 0 2,013,099 23,674,826 $24,655,000
2021 2022 1,838,318 1,080,000 576,260 1,656,260 182,058 23,493,746 $23,575,000
2022 2023 1,893,468 1,115,000 543,997 1,658,997 234,472 23,244,840 $22,460,000
2023 2024 1,950,272 1,125,000 531,843 1,656,843 293,429 22,921,707 $21,335,000
2024 2025 2,008,780 1,140,000 518,231 1,658,231 350,550 22,517,446 $20,195,000
2025 2026 2,069,043 1,155,000 502,613 1,657,613 411,431 22,024,624 $19,040,000
2026 2027 2,131,115 1,170,000 485,057 1,655,057 476,059 21,435,233 $17,870,000
2027 2028 2,195,048 1,195,000 465,050 1,660,050 534,999 20,740,651 $16,675,000
2028 2029 2,260,900 1,215,000 442,823 1,657,823 603,078 19,931,597 $15,460,000
2029 2030 2,328,727 1,240,000 417,551 1,657,551 671,177 18,998,083 $14,220,000
2030 2031 2,398,588 1,265,000 390,519 1,655,519 743,070 17,929,360 $12,955,000
2031 2032 2,470,546 1,295,000 361,677 1,656,677 813,870 16,713,869 $11,660,000
2032 2033 2,544,662 1,325,000 330,856 1,655,856 888,807 15,339,178 $10,335,000
2033 2034 2,621,002 1,360,000 297,996 1,657,996 963,007 13,791,918 8,975,000
2034 2035 2,699,632 1,395,000 262,908 1,657,908 1,041,725 12,057,720 $7,580,000
2035 2036 2,780,621 1,430,000 225,522 1,655,522 1,125,100 10,121,139 6,150,000
2036 2037 2,864,040 1,470,000 185,768 1,655,768 1,208,273 7,965,579 4,680,000
2037 2038 2,949,961 1,515,000 143,432 1,658,432 1,291,530 5,573,208 3,165,000
2038 2039 3,038,460 1,560,000 98,285 1,658,285 1,380,176 2,924,873 1,605,000
2039 2040 3,129,614 1,605,000 50,237 1,655,237 1,474,378 0 0
48,185,896 $24,655,000 6,830,616 31,485,616 16,700,280
Assumed Unfunded Actuarial Accrued Liability Funded by POBs 23,809,268
Assumed Present Value Savings @ Bond Rate 13,430,330
Assumed PV Savings @ Bond Rate/UAAL 56.41%
1)This illustration represents a mathematical calculation of potential interest cost savings,assuming hypothetical current rates for taxable general obligation bonds rated Aa2 as of
September 15,2020.Actual rates may vary.If actual rates are higher than those assumed,the interest cost savings would be lower.This illustration provides information and is not
intended to be a recommendation,proposal or suggestion for a refinancing or otherwise be considered as advice.Assumes the bonds are dated as of December 1,2020 with
principal due December 15 and a first interest payment on June 15,2021.Preliminary,subject to change.
2)Provided by Lauterbach&Amen,LLP as of September 21,2020.The UAAL payment is calculated as a constant percentage of payroll for covered employees.Preliminary,
subject to change.
3)Assumes actuarially projected results are achieved and bonds are issued as described.
BAI,,D
Prepared by Robert W.Beid Co.Incorporated 2020 0921 Ciy of McHenry IL Poke Pensnn Rehadip Aneysk.xkx B WP9222020
This estimate considers market amounts(not actuarial amounts) 8/31/2020 Reconciliations Payments Present Value
20 Year Analysis of Funding of UAAL of McHenry Police Pension Plan Beginning UAAL at 4/30/2020 26,837,963 27,583,690
7.00% Valuation Assumed Interest Rate Interim Increase in UAAL to 8/31/2020 3,028,695) 3,028,695)
3.00% Valuation Assumed Payroll Growth Intermediate UAAL at 8/31/2020 23,809,268 24,554,995
0.955896 Issue-Date Factor Total Payments 23,809,268 24,554,995
Entry Age Normal Funding Method Difference
Net Interim
Effective Increase)/ (Increase)/
Remaining Funding Payment 8/31/2020 Interest Beg of Year Principal Decrease in Decrease End of Year
Years for Amortization Toward PV of Portion of Unfunded Portion of Unfunded Unfunded Unfunded
Year Payroll(est) Funding Factor Unfunded Payment Payment UAAL) Payment UAAL) UAAL) UAAL)
2019 26,837,963
2020 4,523,976 20 14.2649 2,013,099 1,924,314 1,878,657 26,837,963 134,442 134,442 3,028,695 23,674,826
2021 4,659,695 19 13.7800 1,838,318 1,642,282 1,657,238 23,674,826 181,080 181,080 23,493,746
2022 4,799,486 18 13.2763 1,893,468 1,580,888 1,644,562 23,493,746 248,906 248,906 23,244,840
2023 4,943,471 17 12.7531 1,950,272 1,521,790 1,627,139 23,244,840 323,133 323,133 22,921,707
2024 5,091,775 16 12.2095 2,008,780 1,464,900 1,604,519 22,921,707 404,261 404,261 22,517,446
2025 5,244,528 15 11.6448 2,069,043 1,410,138 1,576,221 22,517,446 492,822 492,822 22,024,624
2026 5,401,864 14 11.0582 2,131,115 1,357,422 1,541,724 22,024,624 589,391 589,391 21,435,233
2027 5,563,920 13 10.4488 2,195,048 1,306,678 1,500,466 21,435,233 694,582 694,582 20,740,651
2028 5,730,837 12 9.8158 2,260,900 1,257,830 1,451,846 20,740,651 809,054 809,054 19,931,597
2029 5,902,763 11 9.1581 2,328,727 1,210,808 1,395,212 19,931,597 933,515 933,515 18,998,083
2030 6,079,845 10 8.4750 2,398,588 1,165,544 1,329,866 18,998,083 1,068,723 1,068,723 17,929,360
2031 6,262,241 9 7.7653 2,470,546 1,121,972 1,255,055 17,929,360 1,215,491 1,215,491 16,713,869
2032 6,450,108 8 7.0280 2,544,662 1,080,030 1,169,971 16,713,869 1,374,692 1,374,692 15,339,178
2033 6,643,611 7 6.2621 2,621,002 1,039,655 1,073,742 15,339,178 1,547,260 1,547,260 13,791,918
2034 6,842,920 6 5.4664 2,699,632 1,000,789 965,434 13,791,918 1,734,198 1,734,198 12,057,720
2035 7,048,207 5 4.6399 2,780,621 963,376 844,040 12,057,720 1,936,581 1,936,581 10,121,139
2036 7,259,653 4 3.7812 2,864,040 927,362 708,480 10,121,139 2,155,560 2,155,560 7,965,579
2037 7,477,443 3 2.8892 2,949,961 892,695 557,591 7,965,579 2,392,371 2,392,371 5,573,208
2038 7,701,766 2 1.9626 3,038,460 859,323 390,125 5,573,208 2,648,335 2,648,335 2,924,873
2039 7,932,819 1 1.0000 3,129,614 827,199 204,741 2,924,873 2,924,873 2,924,873
Total 48,185,897 24,554,995 24,376,629 23,809,268 23,809,268 3,028,695
McHenry Police Annual Payments Toward Unfunded Under Police Funding Policy
Based on 7.00%Valuation Interest Rate
3,500,000 30,000,000
3,000,000
25,000,000
2,500,000
20,000,000
QQ
v $2,000,000
j
E o
15,000,000
Q $1,500,000
0
c
10,000,000
1,000,000
5,000,000
500,000
0 0
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
Principal Portion of Payment Interest Portion of Payment ,End of Year Unfunded(UAAL)
40.4111P-
f"~ Office of Finance &Accounting
Carolyn Lynch, Director
McHenrcHy MunicipalIllinoisGreen Center
Menry333, 60050Street
McHenr Phone: (815) 363-2100
Fax: (815) 363-2119
www.ci.mchenry.il.us
REGULAR AGENDA SUPPLEMENT
DATE: October 5, 2020
TO: Mayor and City Council
FROM: Carolyn Lynch, Finance Director
RE: Resolution Authorizing and Approving a Pension Obligation Bond Policy
ATT: Resolution Authorizing and Approving a Pension Obligation Bond Policy
Exhibit A— Pension Obligation Bond Policy
AGENDA ITEM SUMMARY:
Based on Council action on Agenda Item 6B, Police Pension Obligation Bond Parameters
Ordinance,the implementation of a Pension Obligation Policy is required to be put in place. The
purpose of this agenda item is for Council's consideration and action on this policy.
BACKGROUND INFORMATION:
If the Council chooses to adopt the Pension Obligation Bond Parameters Ordinance (Agenda Item
6B) the next step would be to adopt a Pension Obligation Bond Policy through the adoption of a
Resolution. The purposes of the Pension Obligation Bond Policy are as follows:
To outline the City's commitment to diligently fund its unfunded pension liabilities in the
most efficient and cost effective manner possible.
To acknowledge the City's recognition of the potential benefits and risks associated with
Pension Obligation Bonds (POBs).
To outline the procedures the City will follow to mitigate these risks.
RECOMMENDATION:
Therefore, based on the approval of Agenda Item 6B, it is recommended that a motion be made
to adopt a Resolution approving a Pension Obligation Bond Policy.
RESOLUTION NO 20-
Resolution of the City of McHenry, Illinois Authorizing and
Approving a Pension Obligation Bond Policy
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 is considering the issuance of general obligation bonds to fund the City's
unfunded pension liabilities; and
WHEREAS, the City recognizes the potential benefits and risks associated with pension
obligation bonds; and
WHEREAS, in an effort to mitigate the risks, the City desires to implement the Pension
Obligation Bond Policy attached hereto as Exhibit A and incorporated herein; and
WHEREAS, the City finds it to be in the best interest of the health, safety, morals and general
welfare of its citizens to adopt said policy.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
MCHENRY OF MCHENRY COUNTY, ILLINOIS AS FOLLOWS:
Section 1. The foregoing recitals shall be and are hereby incorporated as findings of fact as
if said recitals were fully set forth herein.
Section 2. The City Council hereby authorizes and approves the Pension Obligation Bond
Policy attached hereto as Exhibit A, or one in substantially similar form.
Section 3. If any section, paragraph, clause or provision of this Resolution shall be held
invalid, said invalidity shall not affect any other provision of this Resolution.
Section 4. This Resolution shall be in full force and effect upon its passage and approval in
the manner provided by law.
Section 5. This Resolution is being passed pursuant to the Home Rule Authority of the City
of McHenry as given by Section 6 of Article VII of the Illinois Constitution of 1970, as amended.
Passed this 5th day of October, 2020.
Ayes Nays Absent Abstain
Alderman Devine
Alderman Glab
Alderman Harding
Alderman Mihevc
Alderwoman Miller
Alderman S anti
Alderman Schaefer
Wayne Jett, Mayor Trisha Ramel, City Clerk
Exhibit A
City of McHenry
Pension Obligation Bond Policy
In conjunction with the issuance of the City's Taxable General Obligation Bonds, Series 2020B to fund the
Police Pension Plan's (Pension Plan) unfunded actuarial accrued liability, the City is adopting this Pension
Obligation Bond Policy to set forth the following:
1. The City's commitment to diligently funding its unfunded pension liabilities in the most efficient
and cost effective manner possible.
2. The City's recognition of the potential benefits and risks associated with Pension Obligation
Bonds (POBs); and
3. Procedures the City will follow in order to mitigate these risks.
Therefore, the City hereby adopts the following Pension Obligation Bond Policy:
The City has determined that issuing POBs assures a more rapid funding of the Pension Plan with
significant expected savings while recognizing that it will incur certain risks by doing so.
II.The principal risk the City will incur is that bond proceeds are expected to be invested by the
Pension Plan at an overall return higher than the interest rates on the POBs and that rate of return
may not be realized.
A. The City has determined that it is likely that the Pension Plan will achieve an average return
on the investment of POB proceeds over the life of the POBs at the plan's actuarial rate of
7.00%. Further,the City believes the plan should at least achieve a return above the expected
rate on the POBs of approximately 2.85% which is the City's break-even point (final
breakeven will be determined at pricing).
B. Should the overall return on the investment of bond proceeds be less than the POB interest
rate, the POBs would cost the City more than the plan's current funding methodology. In
addition, the investment of bond proceeds could result in adverse market timing.
C. Over the past 10 years, the City has achieved an approximate rate of return of 7.34% in its
Pension Plan.
III. In order to mitigate these risks the City has determined to adopt the following policies and
procedures, recognizing that these procedures will not eliminate all risks:
A. The City will not use any POB proceeds to fund annual "normal" costs nor will it fund any
capitalized interest with bond proceeds with a view to reducing current cost in exchange for
higher long-term costs.
B. The City, as a home rule government, will use all legally available funds and a tax levy,
unlimited as to rate or amount, to fully pay debt service on the POBs.
C. The City will not extend the POBs beyond the current plan's amortization period nor will it
defer principal repayments versus the current payment methodology.
D. The City will not use any other financing technique which will have the effect of enhancing
early year savings at the expense of higher long-term costs.
E. The City will further limit its risk by not using guaranteed investment contracts, swaps or
other derivative products in conjunction with the POBs, thus avoiding counter-party risk,
credit risk and related interest rate risk.
F. Since the City is home rule, it does not have any debt capacity limitations. Further, because
the pension liability is already a debt of the City, the issuance of POBs will not increase the
City's overall debt burden. Finally, the POBs are expected to be issued with no longer than
a ten-year optional par call allowing for refunding or restructuring of the POBs in the future.
G. The City recognizes that the current actuarial based funding methodology uses a constant
percent of payroll factor resulting in estimated future payments to amortize the current
unfunded liabilities that are higher than the current payment amount. In order to address
this unsustainable practice, the City's POBs will be issued with a debt service payment
structure that will limit early year expected savings to the City in order to allow for level debt
service on the POBs as soon as is practicable in the future.
H. The City will create a linkage between its unfunded pension liabilities and its POBs in its
annual budget so that future City leaders will recognize that the City has chosen to issue
POBs to fund a pension liability.This will assure that the proper understanding of the Pension
Plan's funding status must include recognizing the POBs as a pension liability.
I. The City will create a Budget Stabilization Fund not-to-exceed $1 million, funded initially
with POB proceeds, that may be utilized to offset short-term smoothed losses due to any
annual investment performance below the actuarial rate of 7.00%.
Office of Finance &Accounting
Carolyn Lynch, Director
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
McHenr Phone: (815) 363-2100
Fax: (815) 363-2119
www.ci.mchenry.il.us
REGULAR AGENDA SUPPLEMENT
DATE: October 5, 2020
TO: Mayor and City Council
FROM: Carolyn Lynch, Finance Director
RE: To approve a bond parameters ordinance providing for the issuance of not
to exceed $3,300,000 General Obligation Refunding Bonds, Series 202A.
ATTACHMENTS: Bond Parameters Ordinance
Refunding Illustration for 2010 C Bonds
AGENDA ITEM SUMMARY:
Staff was made aware of approximately $347,000 in savings that could be realized by refunding
the 2010C Sewer Bonds by the end of 2020. Staff is looking for consideration and action on a
parameters ordinance providing for the issuance of not to exceed $3.3 Million General Obligation
Refunding Bonds (series 2020A).
BACKGROUND INFORMATION:
In August, 2010 the City authorized the issuance of$5.665 million in Taxable General Obligation
Bonds (Series 2010C) for sanitary improvements involving the Central and South Wastewater
Treatment Plants. These bonds are paid with a $6 debt service fee on water/sewer bills. In July,
2020 staff received information on a potential refunding on the Taxable General Obligation Bonds
Series 2010C) that could provide a potential savings of approximately $347,000 (see the
attached refunding illustration for details). This refunding will require a new bond issuance not
to exceed $3.3 million.
ANALYSIS:
In order to optimize savings on this bond, a parameters ordinance is being brought forward to
City Council. A parameters ordinance allows the City Council to adopt an ordinance authorizing
the sale of bonds at a future date, as long as certain parameters are met. These would include
maximum par amount, interest rate, maturity date, etc. The ordinance also designates certain
elected and appointed officials to complete the sale on behalf of the City Council if the terms of
the ordinance are met. The goal is to deliver the refunding bonds on December 15' to capture
the full Treasury Rebate on this bond and to maximize debt service savings. This would occur by
completing pricing in October and closing on the bonds December 15tn
RECOMMENDATION:
Therefore, if Council concurs, it is recommended that a motion be made to approve a
parameters ordinance providing for the issuance of not to exceed $3,300,000 General
Obligation Refunding Bonds, Series 2020A, of the City for the purpose of refunding certain
outstanding general obligation bonds of the City, providing for the levy and collection of a
direct annual tax sufficient to pay the principal of and interest on said bonds, authorizing and
directing the execution of an escrow agreement in connection with the issuance of the bonds,
and authorizing the sale of the bonds to Robert W. Baird & Co Incorporated.
City of McHenry, Illinois
Hypothetical Illustration for Refunding Taxable General Obligation Bonds, Series 2010C (Build America Bonds)
Assumed "Aa2"Rating/Bank Qualified Interest Rates
Illustration is subject to change based on market conditions.Actual rates may vary from those assumed.
BEFORE REFUNDING AFTER REFUNDING
3,215,000 2,825,000 POTENTIAL
Taxable GO Bonds, Series 2010C GO Refunding Bonds, Series 2020 (
2)
DEBT SERVICE
Dated:September 15, 2010 Assumed Dated:December 1, 2020 SAVINGS
Assumed Assumed
Bond Principal Rate Interest BAB Subsidy(
1) Total Principal Rate(
3)
Yield (3)
Interest Total
Year 12/15) 6/15& 12/15) 12/15) 6/15& 12/15)
2021 300,000 4.050%153,550 50,679) $402,871 *245,000 4.000% 0.470% $117,394 $362,394 40,476
2022 310,000 4.050%141,400 46,669) $404,731 *265,000 4.000% 0.500% $103,200 $368,200 36,531
2023 325,000 4.550%128,845 42,525) $411,320 *280,000 4.000% 0.520% $92,600 $372,600 38,720
2024 340,000 4.550%114,058 37,645) $416,413 *295,000 4.000% 0.580% $81,400 $376,400 40,013
2025 355,000 4.800% 98,588 32,539) $421,049 *315,000 4.000% 0.670% $69,600 $384,600 36,449
2026 370,000 4.800% 81,548 26,915) $424,633 *330,000 4.000% 0.820% $57,000 $387,000 37,633
2027 385,000 5.250% 63,788 21,053) $427,734 *345,000 4.000% 1.000% $43,800 $388,800 38,934
2028 405,000 5.250% 43,575 14,382) $434,193 *365,000 4.000% 1.130% $30,000 $395,000 39,193
2029 425,000 5.250% 22,313 7,364) $439,948 *385,000 4.000% 1.270% $15,400 $400,400 39,548
3,215,000 847,663 279,771) $3,782,891 * $2,825,000 610,394 $3,435,394 347,497
CALLABLE MATURITIES Potential Present Value Savings 335,234
Par Amount of Bonds Refunded (
4)
3,215,000
Potential Percent Present Value Savings (5)
10.427%
1)Assumed a 5.7%reduction in the Build America Bond subsidy through the life of the bonds.Subsidy calculated at 33.01%of interest due.
2)Assumed total costs of issuance of$56,925. Preliminary,subject to change.
3)This illustration represents a mathematical calculation of potential interest cost savings,assuming hypothetical rates based on current rates for general obligation bonds rated Aa2 as of September 15,
2020.Actual rates may vary. If actual rates are higher than those assumed,the interest cost savings would be lower.This illustration provides information and is not intended to be a recommendation, proposal
or suggestion for a refinancing or otherwise be considered as advice.
4)Assumed the refunding of the 2021-2029 maturities.
5)Calculated using the refunding bond yield of 0.946%as the discount rate.
BAIP,D
Prepared by Robert W.Baird Co.Incorporated McHenry 2010C Refunding Illustration 091820.xls DJW 9212020
EXTRACT OF MINUTES of the regular public meeting of the City
Council of the City of McHenry, McHenry County, Illinois, held in
the Council Chambers at City Hall, located at 333 S. Green Street,
in said City, at 7:00 p.m., on the 5th day of October, 2020.
The Mayor called the meeting to order and directed the City Clerk to call the roll. Upon
the roll being called, Wayne Jett,the Mayor, and the following Aldermen answered present at said
location:
The following Aldermen were allowed by a majority of the Aldermen in accordance with
and to the extent allowed by rules adopted by the City Council to attend the meeting by video or
audio conference:
No Alderman was not permitted to attend the meeting by video or audio conference.
The following Aldermen were absent and did not participate in the meeting in any manner
or to any extent whatsoever:
The Mayor announced that the next item for consideration was the issuance of not to exceed
3,300,000 general obligation refunding bonds to be issued by the City pursuant to its home rule
powers for the purpose of refunding certain outstanding general obligation bonds of the City for
debt service savings, and that the City Council would consider the adoption of an ordinance
providing for the issue of said bonds and the levy of a direct annual tax sufficient to pay the
principal and interest thereon, authorizing the execution of an escrow agreement in connection
therewith and authorizing the sale of the bonds to Robert W.Baird &Co.Incorporated. The Mayor
then explained that the ordinance sets forth the parameters for the issuance of said bonds and sale
parameters refunding bond ordinance 4848-3596-1804 v3
2285674
thereof by designated officials of the City and summarized the pertinent terms of said parameters,
including the specific parameters governing the length of maturity,rates of interest,purchase price
and tax levy for said bonds.
WHEREUPON, Alderman presented, and the City Clerk
made available to the Aldermen and interested members of the public, complete copies of an
ordinance entitled:
AN ORDINANCE providing for the issuance of not to exceed
3,300,000 General Obligation Refunding Bonds, Series 2020A, of
the City of McHenry, McHenry County, Illinois, for the purpose of
refunding certain outstanding general obligation bonds of said City,
providing for the levy and collection of a direct annual tax sufficient
to pay the principal of and interest on said bonds, authorizing and
directing the execution of an escrow agreement in connection with
the issuance of said bonds, and authorizing the sale of said bonds to
Robert W. Baird& Co. Incorporated.
the "Bond Ordinance").
Alderman then moved and Alderman
seconded the motion that the Bond Ordinance as presented be adopted.
After a full discussion thereof, the Mayor directed that the roll be called for a vote upon
the motion to adopt the Bond Ordinance.
Upon the roll being called,the following Aldermen voted AYE:
the following Aldermen voted NAY:
and the following Alderman abstained from the vote:
WHEREUPON,the Mayor declared the motion carried and the Bond Ordinance adopted, and
henceforth did approve and sign the same in open meeting, and did direct the City Clerk to record
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the same in full in the records of the City Council of the City of McHenry, McHenry County,
Illinois.
Other business was duly transacted at said meeting.
Upon motion duly made and carried, the meeting adjourned.
City Clerk
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ORDINANCE NO.
AN ORDINANCE providing for the issuance of not to exceed
3,300,000 General Obligation Refunding Bonds, Series 2020A, of
the City of McHenry, McHenry County, Illinois, for the purpose of
refunding certain outstanding general obligation bonds of said City,
providing for the levy and collection of a direct annual tax sufficient
to pay the principal of and interest on said bond's, authorizing and
directing the execution of an escrow agreement in connection with
the issuance of said bonds, and authorizing the sale of said bonds to
Robert W. Baird & Co. Incorporated.
WHEREAS,by virtue of its population,the City of McHenry,McHenry County, Illinois(the
City"), and pursuant to the provisions of Section 6 of Article VII of the Constitution of the State
of Illinois, the City is a home rule unit and may exercise any power or perform any function
pertaining to its government and affairs including, but not limited to,the power to tax and to incur
debt; and
WHEREAS,pursuant to the provisions of said Section 6,the City has the power to incur debt
payable from ad valorem property tax receipts or from any other lawful source and maturing within
40 years from the time it is incurred without prior referendum approval; and
WHEREAS, the City has heretofore issued the following outstanding and validly subsisting
and unpaid general obligation bonds: Taxable General Obligation Bonds, Series 2010C (the
Prior Bonds" and those Prior Bonds being refunded, the"Refunded Bonds"); and
WHEREAS, the Refunded Bonds will be further described in the Escrow Agreement (as
hereinafter defined); and
WHEREAS, it is necessary and desirable to refund the Refunded Bonds in order to realize
certain interest cost savings for the City, net of the amount of subsidy payments which the City
expected to receive from the U.S. Treasury with respect to interest payments due on certain of the
Refunded Bonds; and
WHEREAS, the City Council of the City (the "City Council") has determined that in order
to refund the Refunded Bonds, it is necessary and in the best interests of the City to borrow not to
exceed $3,300,000 and issue bonds of the City therefor; and
WHEREAS, it is in the best interest of the City to issue bonds of the City in an amount not
to exceed $3,300,000 (the "Bonds") for the purpose of refunding the Refunded Bonds; and
WHEREAS, the Bonds shall be payable from a direct annual ad valorem tax levied against
all taxable property in the City, without limitation as to rate or amount; and
WHEREAS, in accordance with the terms of the Prior Bonds, the Refunded Bonds may be
called for redemption in advance of their maturity, and it is necessary and desirable to make such
call for the redemption of the Refunded Bonds on their earliest possible call date, and provide for
the giving of proper notice to the registered owners of the Refunded Bonds:
Now THEREFORE BE IT ORDAINED by the City Council of the City of McHenry, McHenry
County, Illinois, in the exercise of its home rule powers, as follows:
Section 1. Incorporation of Preambles. The City Council hereby finds that all of the
recitals contained in the preambles to this Ordinance are true, correct and complete and does
incorporate them into this Ordinance by this reference.
Section 2. Authorization. It is hereby found and determined that pursuant to the
provisions of the Illinois Municipal Code, as supplemented and amended, and the home rule
powers of the City under Section 6 of Article VII of the Illinois Constitution of 1970 (in the event
of conflict between the provisions of said code and home rule powers, the home rule powers shall
be deemed to supersede the provisions of said code), the City Council has been authorized by law
to borrow an amount not to exceed$3,300,000 upon the credit of the City and as evidence of such
indebtedness to issue bonds of the City to said amount, the proceeds of said bonds to be used to
refund the Refunded Bonds, and that it is necessary to borrow not to exceed $3,300,000 of said
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authorized sum and issue the Bonds in evidence thereof, and these findings and determinations,
together with those set forth in the preambles to this Ordinance, shall be deemed conclusive.
Section 3. Bond Details. There be borrowed by for and on behalf of the City an amount
not to exceed $3,300,000 for the purpose aforesaid, and that bonds of the City shall be issued to
said amount and shall be designated "General Obligation Refunding Bonds, Series 2020A," or
with such other series designation as set forth in the Bond Notification (as hereinafter defined).
The Bonds shall be dated such date (not later than April 1, 2021) as set forth in the Bond
Notification, and shall also bear the date of authentication, shall be in fully registered form, shall
be in denominations of$5,000 each or authorized integral multiples thereof(but no single Bond
shall represent installments of principal maturing on more than one date), and shall be numbered
1 and upward. The Bonds shall become due and payable serially or be subject to mandatory
redemption (subject to prior redemption as hereinafter described) on December 15 of each of the
years (not later than 2029), in the amounts (not exceeding $440,000 per year) and bearing interest
at the rates (not exceeding 5.00% per annum) as set forth in the Bond Notification. The Bonds
shall bear interest from their date or from the most recent interest payment date to which interest
has been paid or duly provided for, until the principal amount of the Bonds is paid, such interest
computed upon the basis of a 360-day year of twelve 30-day months)being payable semi-annually
commencing with the first interest payment date as set forth in the Bond Notification, and on June
15 and December 15 of each year thereafter to maturity.
Interest on each Bond shall be paid by check or draft of The Bank of New York Mellon
Trust Company, National Association, Chicago, Illinois, as bond registrar and paying agent (the
Bond Registrar"), payable upon presentation thereof in lawful money of the United States of
America, to the person in whose name such Bond is registered at the close of business on the 1st
day of the month of the interest payment date. The principal of the Bonds shall be payable in
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lawful money of the United States of America upon presentation thereof at the principal corporate
trust office of the Bond Registrar.
Section 4. Execution;Authentication. The Bonds shall be executed on behalf of the City
by the manual or facsimile signature of its Mayor (the "Mayor") and attested by the manual or
facsimile signature of its City Clerk (the "City Clerk"), as they shall determine, and shall have
impressed or imprinted thereon the corporate seal or facsimile thereof of the City. In case any
such officer whose signature shall appear on any Bond shall cease to be such officer before the
delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes,
the same as if such officer had remained in office until delivery. All Bonds shall have thereon a
certificate of authentication, substantially in the form hereinafter set forth, duly executed by the
Bond Registrar as authenticating agent of the City and showing the date of authentication. No
Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under
this Ordinance unless and until such certificate of authentication shall have been duly executed by
the Bond Registrar by manual signature,and such certificate of authentication upon any such Bond
shall be conclusive evidence that such Bond has been authenticated and delivered under this
Ordinance.
Section S. Registration of Bonds; Persons Treated as Owners. (a) General. The City
shall cause books (the "Bond Register") for the registration and for the transfer of the Bonds as
provided in this Ordinance to be kept at the principal corporate trust office of the Bond Registrar,
which is hereby constituted and appointed the registrar of the City. The City is authorized to
prepare, and the Bond Registrar shall keep custody of, multiple Bond blanks executed by the City
for use in the transfer and exchange of Bonds.
Upon surrender for transfer of any Bond at the principal corporate trust office of the Bond
Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in
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form satisfactory to the Bond Registrar and duly executed by, the registered owner or his or her
attorney duly authorized in writing, the City shall execute and the Bond Registrar shall
authenticate, date and deliver in the name of the transferee or transferees a new fully registered
Bond or Bonds of the same maturity of authorized denominations, for a like aggregate principal
amount. Any fully registered Bond or Bonds may be exchanged at said office of the Bond
Registrar for a like aggregate principal amount of Bond or Bonds of the same maturity of other
authorized denominations. The execution by the City of any fully registered Bond shall constitute
full and due authorization of such Bond and the Bond Registrar shall thereby be authorized to
authenticate, date and deliver such Bond,provided, however, the principal amount of outstanding
Bonds of each maturity authenticated by the Bond Registrar shall not exceed the authorized
principal amount of Bonds for such maturity less previous retirements.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period beginning at the close of business on the 1st day of the month of any interest payment date
on such Bond and ending at the opening of business on such interest payment date, nor to transfer
or exchange any Bond after notice calling such Bond for redemption has been mailed, nor during
a period of fifteen (15) days next preceding mailing of a notice of redemption of any Bonds.
The person in whose name any Bond shall be registered shall be deemed and regarded as
the absolute owner thereof for all purposes,and payment of the principal of or interest on any Bond
shall be made only to or upon the order of the registered owner thereof or his or her legal
representative. All such payments shall be valid and effectual to satisfy and discharge the liability
upon such Bond to the extent of the sum or sums so paid.
No service charge shall be made for any transfer or exchange of Bonds, but the City or the
Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer or exchange of Bonds, except in the
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case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond surrendered for
redemption.
b) Global Book-Entry System. The Bonds shall be initially issued in the form of a
separate single fully registered Bond for each of the maturities of the Bonds determined as
described in Section 3 hereof. Upon initial issuance, the ownership of each such Bond shall be
registered in the Bond Register in the name of Cede & Co., or any successor thereto ("Cede"), as
nominee of The Depository Trust Company,New York,New York, and its successors and assigns
DTC"). All of the outstanding Bonds shall be registered in the Bond Register in the name of
Cede, as nominee of DTC, except as hereinafter provided. Any officer of the City who is a
signatory on the Bonds, along with the Treasurer of the City (the "Treasurer"), is authorized to
execute and deliver, on behalf of the City, such letters to or agreements with DTC as shall be
necessary to effectuate such book-entry system (any such letter or agreement being referred to
herein as the "Representation Letter"), which Representation Letter may provide for the payment
of principal of or interest on the Bonds by wire transfer.
With respect to Bonds registered in the Bond Register in the name of Cede, as nominee of
DTC, the City and the Bond Registrar shall have no responsibility or obligation to any
broker-dealer, bank or other financial institution for which DTC holds Bonds from time to time as
securities depository (each such broker-dealer, bank or other financial institution being referred to
herein as a "DTC Participant")or to any person on behalf of whom such a DTC Participant holds
an interest in the Bonds. Without limiting the immediately preceding sentence, the City and the
Bond Registrar shall have no responsibility or obligation with respect to (i)the accuracy of the
records of DTC, Cede or any DTC Participant with respect to any ownership interest in the Bonds,
ii)the delivery to any DTC Participant or any other person, other than a registered owner of a
Bond as shown in the Bond Register, of any notice with respect to the Bonds, including any notice
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of redemption, or (iii)the payment to any DTC Participant or any other person, other than a
registered owner of a Bond as shown in the Bond Register, of any amount with respect to the
principal of or interest on the Bonds. The City and the Bond Registrar may treat and consider the
person in whose name each Bond is registered in the Bond Register as the holder and absolute
owner of such Bond for the purpose of payment of principal and interest with respect to such Bond,
for the purpose of giving notices of redemption and other matters with respect to such Bond, for
the purpose of registering transfers with respect to such Bond, and for all other purposes
whatsoever. The Bond Registrar shall pay all principal of and interest on the Bonds only to or
upon the order of the respective registered owners of the Bonds, as shown in the Bond Register,
or their respective attorneys duly authorized in writing, and all such payments shall be valid and
effective to fully satisfy and discharge the City's obligations with respect to payment of the
principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other
than a registered owner of a Bond as shown in the Bond Register, shall receive a Bond evidencing
the obligation of the City to make payments of principal and interest with respect to any Bond.
Upon delivery by DTC to the Bond Registrar of written notice to the effect that DTC has
determined to substitute a new nominee in place of Cede,and subject to the provisions in Section 3
hereof with respect to the payment of interest to the registered owners of Bonds at the close of
business on the 1st day of the month of the applicable interest payment date, the name "Cede" in
this Ordinance shall refer to such new nominee of DTC.
In the event that (i)the City determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (ii)the agreement among the
City, the Bond Registrar and DTC evidenced by the Representation Letter shall be terminated for
any reason or(iii) the City determines that it is in the best interests of the beneficial owners of the
Bonds that they be able to obtain certificated Bonds, the City shall notify DTC and DTC
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Participants of the availability through DTC of certificated Bonds and the Bonds shall no longer
be restricted to being registered in the Bond Register in the name of Cede, as nominee of DTC. At
that time, the City may determine that the Bonds shall be registered in the name of and deposited
with such other depository operating a universal book-entry system, as may be acceptable to the
City, or such depository's agent or designee, and if the City does not select such alternate universal
book-entry system,then the Bonds may be registered in whatever name or names registered owners
of Bonds transferring or exchanging Bonds shall designate, in accordance with the provisions of
Section 5(a)hereof.
Notwithstanding any other provisions of this Ordinance to the contrary, so long as any
Bond is registered in the name of Cede, as nominee of DTC, all payments with respect to principal
of and interest on such Bond and all notices with respect to such Bond shall be made and given,
respectively, in the name provided in the Representation Letter.
Section 6. Redemption. (a) Optional Redemption. All or a portion of the Bonds due on
and after the date, if any, specified in the Bond Notification shall be subject to redemption prior to
maturity at the option of the City from any available funds, as a whole or in part, and if in part in
integral multiples of$5,000 in any order of their maturity as determined by the City (less than all
of the Bonds of a single maturity to be selected by the Bond Registrar),on the date specified in the
Bond Notification and on any date thereafter, at the redemption price of par plus accrued interest
to the date fixed for redemption.
b) Mandatory Redemption. The Bonds maturing on the date or dates, if any, indicated
in the Bond Notification are subject to mandatory redemption, in integral multiples of $5,000
selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the
redemption date on the redemption date, on December 15 of the years, if any, and in the principal
amounts, if any, as indicated in the Bond Notification.
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The principal amounts of Bonds to be mandatorily redeemed in each year may be reduced
through the earlier optional redemption thereof, with any partial optional redemptions of such
Bonds credited against future mandatory redemption requirements in such order of the mandatory
redemption dates as the City may determine. In addition, on or prior to the 60th day preceding
any mandatory redemption date,the Bond Registrar may, and if directed by the City Council shall,
purchase Bonds required to be retired on such mandatory redemption date. Any such Bonds so
purchased shall be cancelled and the principal amount thereof shall be credited against the
mandatory redemption required on such next mandatory redemption date.
c) General. The Bonds shall be redeemed only in the principal amount of$5,000 and
integral multiples thereof. The City shall, at least forty-five (45) days prior to any optional
redemption date (unless a shorter time period shall be satisfactory to the Bond Registrar) notify
the Bond Registrar of such redemption date and of the principal amount and maturity or maturities
of Bonds to be redeemed. For purposes of any redemption of less than all of the outstanding Bonds
of a single maturity,the particular Bonds or portions of Bonds to be redeemed shall be selected by
lot by the Bond Registrar from the Bonds of such maturity by such method of lottery as the Bond
Registrar shall deem fair and appropriate;provided that such lottery shall provide for the selection
for redemption of Bonds or portions thereof so that any $5,000 Bond or$5,000 portion of a Bond
shall be as likely to be called for redemption as any other such $5,000 Bond or $5,000 portion.
The Bond Registrar shall make such selection upon the earlier of the irrevocable deposit of funds
with an escrow agent sufficient to pay the redemption price of the Bonds to be redeemed or the
time of the giving of official notice of redemption.
The Bond Registrar shall promptly notify the City in writing of the Bonds or portions of Bonds
selected for redemption and, in the case of any Bond selected for partial redemption,the principal
amount thereof to be redeemed.
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Section 7. Redemption Procedure. Unless waived by any holder of Bonds to be
redeemed,notice of the call for any such redemption shall be given by the Bond Registrar on behalf
of the City by mailing the redemption notice by first class mail at least thirty (30) days and not
more than sixty(60)days prior to the date fixed for redemption to the registered owner of the Bond
or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is
furnished in writing by such registered owner to the Bond Registrar.
All notices of redemption shall state:
1) the redemption date,
2) the redemption price,
3) if less than all outstanding Bonds are to be redeemed,the identification(and,
in the case of partial redemption, the respective principal amounts) of the Bonds to be
redeemed,
4) that on the redemption date the redemption price will become due and payable
upon each such Bond or portion thereof called for redemption, and that interest thereon
shall cease to accrue from and after said date,
5) the place where such Bonds are to be surrendered for payment of the
redemption price, which place of payment shall be the principal corporate trust office of
the Bond Registrar, and
6) such other information then required by custom,practice or industry standard.
Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed at the
option of the City shall have been received by the Bond Registrar prior to the giving of such notice
of redemption, such notice may, at the option of the City, state that said redemption shall be
conditional upon the receipt of such moneys by the Bond Registrar on or prior to the date fixed for
redemption. If such moneys are not received, such notice shall be of no force and effect,the City
shall not redeem such Bonds, and the Bond Registrar shall give notice, in the same manner in
which the notice of redemption shall have been given,that such moneys were not so received and
that such Bonds will not be redeemed. Otherwise, prior to any redemption date, the City shall
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deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all
the Bonds or portions of Bonds which are to be redeemed on that date.
Subject to the provisions for a conditional redemption described above, notice of
redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed
shall, on the redemption date, become due and payable at the redemption price therein specified,
and from and after such date (unless the City shall default in the payment of the redemption price)
such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for
redemption in accordance with said notice, such Bonds shall be paid by the Bond Registrar at the
redemption price. Installments of interest due on or prior to the redemption date shall be payable
as herein provided for payment of interest. Upon surrender for any partial redemption of any
Bond, there shall be prepared for the registered holder a new Bond or Bonds of the same maturity
in the amount of the unpaid principal.
If any Bond or portion of Bond called for redemption shall not be so paid upon surrender
thereof for redemption,the principal shall,until paid,bear interest from the redemption date at the
rate borne by the Bond or portion of Bond so called for redemption. All Bonds which have been
redeemed shall be cancelled and destroyed by the Bond Registrar and shall not be reissued.
Section 8. Form of Bond. The Bonds shall be in substantially the following form;
provided, however, that if the text of the Bond is to be printed in its entirety on the front side of
the Bond, then paragraph [2] and the legend, "See Reverse Side for Additional Provisions", shall
be omitted and paragraph [6] and those thereafter as shall be appropriate shall be inserted
immediately after paragraph [1]:
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FORM OF BOND-FRONT SIDE]
REGISTERED REGISTERED
No.
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTY OF MCHENRY
CITY OF MCHENRY
GENERAL OBLIGATION REFUNDING BOND,SERIES 2020A
See Reverse Side for
Additional Provisions
Interest Maturity Dated
Rate:Date: December 15, 20_Date: 2020 CUSIP:
Registered Owner:
Principal Amount:
1] KNOW ALL PERSONS BY THESE PRESENTS that the City of McHenry, McHenry
County, Illinois, a municipality, home rule unit, and political subdivision of the State of Illinois
the "City"), hereby acknowledges itself to owe and for value received promises to pay to the
Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity
Date identified above,the Principal Amount identified above and to pay interest(computed on the
basis of a 360-day year of twelve 30-day months) on such Principal Amount from the later of the
Dated Date of this Bond identified above or from the most recent interest payment date to which
interest has been paid or duly provided for, at the Interest Rate per annum identified above, such
interest to be payable on June 15 and December 15 of each year, commencing June 15,2021,until
said Principal Amount is paid or duly provided for. The principal of this Bond is payable in lawful
money of the United States of America upon presentation hereof at the principal corporate trust
office of The Bank of New York Mellon Trust Company,National Association, Chicago, Illinois,
as bond registrar and paying agent (the "Bond Registrar"). Payment of interest shall be made to
the Registered Owner hereof as shown on the registration books of the City maintained by the
Bond Registrar, at the close of business on the 1st day of the month of the interest payment date.
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Interest shall be paid by check or draft of the Bond Registrar,payable upon presentation in lawful
money of the United States of America, mailed to the address of such Registered Owner as it
appears on such registration books,or at such other address furnished in writing by such Registered
Owner to the Bond Registrar. For the prompt payment of this Bond both principal and interest at
maturity, the full faith, credit and resources of the City are hereby irrevocably pledged.
2] Reference is hereby made to the further provisions of this Bond set forth on the
reverse hereof, and such further provisions shall for all purposes have the same effect as if set forth
at this place.
3] It is hereby certified and recited that all conditions, acts and things required by the
Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance
of this Bond, including the hereinafter defined Act, have existed and have been properly done,
happened and been performed in regular and due form and time as required by law; that the
indebtedness of the City, represented by the Bonds, and including all other indebtedness of the
City, howsoever evidenced or incurred, does not exceed any constitutional or statutory or other
lawful limitation; and that provision has been made for the collection of a direct annual tax, in
addition to all other taxes, on all of the taxable property in the City sufficient to pay the interest
hereon as the same falls due and also to pay and discharge the principal hereof at maturity.
4] This Bond shall not be valid or become obligatory for any purpose until the certificate
of authentication hereon shall have been signed by the Bond Registrar.
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5] IN WITNESS WHEREOF, the City of McHenry, McHenry County, Illinois, by its City
Council,has caused this Bond to be executed by the manual or duly authorized facsimile signature
of its Mayor and attested by the manual or duly authorized facsimile signature of its City Clerk
and its corporate seal or a facsimile thereof to be impressed or reproduced hereon, all as appearing
hereon and as of the Dated Date identified above.
SPECIMEN
Mayor, McHenry,
McHenry County, Illinois
ATTEST:
SPECIMEN
City Clerk, McHenry
McHenry County, Illinois
SEAL]
Date of Authentication: 20
CERTIFICATE Bond Registrar and Paying Agent:
OF The Bank of New York Mellon Trust
Company,National Association
AUTHENTICATION Chicago, Illinois
This Bond is one of the Bonds described
in the within mentioned ordinance and is one
of the General Obligation Refunding Bonds,
Series 2020A, of the City of McHenry,
McHenry County, Illinois.
THE BANK OF NEW YORK MELLON TRUST
COMPANY,NATIONAL ASSOCIATION,
as Bond Registrar
By SPECIMEN
Authorized Officer
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FORM OF BOND-REVERSE SIDE]
CITY OF MCHENRY,MCHENRY COUNTY,ILLINOIS
GENERAL OBLIGATION REFUNDING BOND,SERIES 2020A
6] This Bond is one of a series of bonds(the "Bonds")issued by the City for the purpose
of refunding certain outstanding bonds of the City and of paying expenses incidental thereto, all
as described and defined in the Ordinance of the City, passed by the City Council on the 5th day
of October, 2020, authorizing the Bonds (the "Ordinance"), pursuant to and in all respects in
compliance with the applicable provisions of the Illinois Municipal Code, as amended; as further
supplemented and, where necessary, superseded, by the powers of the City as a home rule unit
under the provisions of Section 6 of Article VII of the Illinois Constitution of 1970 (collectively,
such Illinois Municipal Code and constitutional home rule powers, being the "Act"), and with the
Ordinance, which has been duly approved by the Mayor.
7] Optional and mandatory redemption provisions to be included, as appropriate.
8] Notice of any such redemption shall be sent by first class mail not less than thirty(30)
days nor more than sixty (60) days prior to the date fixed for redemption to the registered owner
of each Bond to be redeemed at the address shown on the registration books of the City maintained
by the Bond Registrar or at such other address as is furnished in writing by such registered owner
to the Bond Registrar. When so called for redemption,this Bond will cease to bear interest on the
specified redemption date, provided funds for redemption are on deposit at the place of payment
at that time, and shall not be deemed to be outstanding.
9] This Bond is transferable by the Registered Owner hereof in person or by his or her
attorney duly authorized in writing at the principal corporate trust office of the Bond Registrar in
Chicago, Illinois, but only in the manner, subject to the limitations and upon payment of the
charges provided in the Ordinance, and upon surrender and cancellation of this Bond. Upon such
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transfer a new Bond or Bonds of authorized denominations of the same maturity and for the same
aggregate principal amount will be issued to the transferee in exchange therefor.
10] The Bonds are issued in fully registered form in the denomination of$5,000 each or
authorized integral multiples thereof. This Bond may be exchanged at the principal corporate trust
office of the Bond Registrar for a like aggregate principal amount of Bonds of the same maturity
of other authorized denominations,upon the terms set forth in the Ordinance. The Bond Registrar
shall not be required to transfer or exchange any Bond during the period beginning at the close of
business on the 1st day of the month of any interest payment date on such Bond and ending at the
opening of business on such interest payment date, nor to transfer or exchange any Bond after
notice calling such Bond for redemption has been mailed, nor during a period of fifteen(15) days
next preceding mailing of a notice of redemption of any Bonds.
11] The City and the Bond Registrar may deem and treat the Registered Owner hereof as
the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof
and interest due hereon and for all other purposes, and neither the City nor the Bond Registrar shall
be affected by any notice to the contrary.
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ASSIGNMENT
FOR VALUE RECEIVED,the undersigned sells, assign, and transfers unto
Here insert Social Security Number,
Employer Identification Number or
other Identifying Number
Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and appoint
as attorney to transfer the said Bond on the books kept for registration thereof with full power of
substitution in the premises.
Dated:
Signature guaranteed:
NOTICE: The signature to this transfer and assignment must correspond with the name of the
Registered Owner as it appears upon the face of the within Bond in every particular,
without alteration or enlargement or any change whatever.
Section 9. Sale of Bonds. The Mayor and Treasurer (the "Designated Officials") are
hereby authorized to proceed, without any further authorization or direction whatsoever from the
City Council, to sell and deliver the Bonds upon the terms as prescribed in this Section, pursuant
to a Notification of Sale of the Bonds, which shall include the pertinent details of sale as provided
herein(the "Bond Notification"). The Bonds shall be sold and delivered to the Robert W. Baird &
Co. Incorporated, Naperville, Illinois (the "Purchaser"), at the price of not less than 98% of the
par value of the principal amount thereof, plus accrued interest, if any, to the date of delivery.
Such sale shall be made upon the advice (in the form of a written certificate or report) of Speer
Financial, Inc., the City's municipal advisor, that the net interest cost rate on the Bonds so sold,
calculated in accordance with customary market practice, does not exceed 5.00%, that such net
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interest cost rate and all of the other terms of the Bonds are fair and reasonable in view of current
conditions in the bond markets and the net present value savings resultant from the issuance of the
Bonds for the refunding of the Refunded Bonds is not less than 4.00% of the principal amount of
the Refunded Bonds. Nothing in this Section shall require the Designated Officials to sell any
Bonds, but the Designated Officials shall have the authority to sell all or a portion of the Bonds so
long as the limitations set forth in this Ordinance and the conditions of this Section shall have been
met. Upon the sale of Bonds, the Designated Officials and any other officers of the City as shall
be appropriate, shall be and are hereby authorized and directed to approve or execute,or both, such
documents of sale of the Bonds as may be necessary, including, without limitation, a Bond
Notification, Preliminary Official Statement, Official Statement, Bond Purchase Agreement, and
closing documents. At the time of the execution and delivery of the Bond Purchase Agreement,
the Designated Officials shall find and determine that no person holding any office of the City
either by election or appointment, is in any manner financially interested either directly, in his or
her own name, or indirectly in the name of any other person, association, trust or corporation in
said agreement with the Purchaser for the purchase of the Bonds.
The distribution of the Preliminary Official Statement relating to the Bonds substantially
in the form presented before this meeting is hereby in all respects authorized and approved, and
the proposed use by the Purchaser of an Official Statement (in substantially the form of the
Preliminary Official Statement but with appropriate variations to reflect the final terms of the
Bonds) is hereby approved. A Bond Purchase Agreement for the sale of the Bonds to the
Purchaser, substantially in the form attached to this Ordinance as Exhibit B, is hereby in all respects
authorized and approved. The officer(s) designated to sign the Bond Purchase Agreement are
hereby authorized to execute same, and their execution shall constitute full and complete approval
of all necessary or appropriate completions and revisions as shall appear therein. Upon the sale of
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any Bonds, the Designated Officials shall prepare a Bond Notification, to be substantially in the
form of Exhibit A attached hereto, which shall include the pertinent details of sale as provided
herein,and such shall be entered into the records of the City and made available to the City Council
at a regular public meeting thereof The Designated Officials shall also file with the County Clerk
the Bond Notification or like document including a statement of taxes. The authority to sell the
Bonds pursuant to a Bond Notification as herein provided shall expire on April 1, 2021.
Section 10. Tax Levy;Abatement. For the purpose of providing funds required to pay the
interest on the Bonds promptly when and as the same falls due, and to pay and discharge the
principal thereof at maturity,there is hereby levied upon all of the taxable property within the City,
in the years for which any of the Bonds are outstanding, a direct annual tax sufficient for that
purpose; and there is hereby levied on all of the taxable property in the City, in addition to all other
taxes,the following direct annual tax (the "Pledged Taxes"), to-wit:
FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE SUM OF:
2020 454,057.00 for interest up to and including
December 15, 2021
2021 454,057.00 for interest and principal
2022 454,057.00 for interest and principal
2023 454,057.00 for interest and principal
2024 454,057.00 for interest and principal
2025 454,057.00 for interest and principal
2026 454,057.00 for interest and principal
2027 454,057.00 for interest and principal
2028 454,057.00 for interest and principal
Principal or interest maturing at any time when there are not sufficient funds on hand from
the foregoing tax levy to pay the same shall be paid from the general funds of the City, and the
fund from which such payment was made shall be reimbursed out of the taxes hereby levied when
the same shall be collected.
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The City covenants and agrees with the purchasers and the holders of the Bonds that so
long as any of the Bonds remain outstanding, the City will take no action or fail to take any action
which in any way would adversely affect the ability of the City to levy and collect the foregoing
tax levy and the City and its officers will comply with all present and future applicable laws in
order to assure that the foregoing taxes will be levied, extended and collected as provided herein
and deposited in the fund established to pay the principal of and interest on the Bonds.
To the extent that the Pledged Taxes levied above exceed the amount necessary to pay debt
service on the Bonds as set forth in the Bond Notification, the Mayor, City Clerk and Treasurer
are hereby authorized to direct the abatement of such taxes to the extent of the excess of such levy
in each year over the amount necessary to pay debt service on the Bonds in the following bond
year. Proper notice of such abatement shall be filed with the County Clerk of The County of
McHenry, Illinois (the "County Clerk"), in a timely manner to effect such abatement.
In the event that funds from any other lawful source are made available for the purpose of
paying any principal of or interest on the Bonds so as to enable the abatement of the taxes levied
herein for the payment of same, the City Council shall, by proper proceedings, direct the transfer
of such funds to the hereinafter defined Bond Fund, and shall then further direct the abatement of
the taxes by the amount so deposited. The City covenants and agrees that it will not direct the
abatement of taxes until money has been deposited into the Bond Fund in the amount of such
abatement. A certified copy or other notification of any such proceedings abating taxes may then
be filed with the County Clerk in a timely manner to effect such abatement.
Section 11. Filing with County Clerk and Certificate of Reduction of Taxes. Forthwith
upon the passage of this Ordinance,the City Clerk is hereby directed to file a certified copy of this
Ordinance with the County Clerk; and the County Clerk shall in and for each of the years 2020 to
2028,inclusive, ascertain the rate necessary to produce the tax herein levied; and the County Clerk
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shall extend the same for collection on the tax books in connection with other taxes levied in said
years in and by the City for general corporate purposes of the City; and, subject to abatement as
stated hereinabove, in said years such annual tax shall be levied and collected by and for and on
behalf of the City in like manner as taxes for general corporate purposes for said years are levied
and collected, and in addition to and in excess of all other taxes, and when collected, the taxes
hereby levied shall be placed to the credit of a special fund to be designated "Bond and Interest
Fund Account of 2020" (the "Bond Fund"), which taxes are hereby irrevocably pledged to and
shall be used only for the purpose of paying the principal of and interest on the Bonds.
The Mayor, City Clerk and Treasurer be and the same are hereby directed to prepare and
file with the County Clerk, a Certificate of Reduction of Taxes Heretofore Levied for the Payment
of Bonds showing the Prior Bonds being refunded and directing the abatement of the taxes
heretofore levied to pay the Refunded Bonds.
Section 12. Use of Bond Proceeds; Use of Taxes Heretofore Levied. Accrued interest, if
any, received on the delivery of the Bonds is hereby appropriated for the purpose of paying first
interest due on the Bonds and is hereby ordered deposited into the Bond Fund. Simultaneously
with the delivery of the Bonds, the principal proceeds of the Bonds, together with any premium
received from the sale of the Bonds and such additional amounts as may be necessary from the
general funds of the City, are hereby appropriated to pay the costs of issuance of the Bonds and
for the purpose of refunding the Refunded Bonds, and that portion thereof not needed to pay such
costs is hereby ordered deposited with the paying agent for the Refunded Bonds as set forth in the
Bond Notification or in escrow pursuant to an escrow agreement to be entered into between the
City and The Bank of New York Mellon Trust Company,National Association, Chicago, Illinois,
as escrow agent (the "Escrow Agent"), in substantially in the form attached hereto as Exhibit C
the "Escrow Agreement") and made a part hereof by this reference, or with such changes therein
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as shall be approved by the officers of the City executing the Escrow Agreement, such execution
to constitute evidence of the approval of such changes for the purpose of paying the principal of
and interest on the Refunded Bonds when due and upon redemption prior to maturity, as more
fully set forth in the Escrow Agreement. The City Council approves the form,terms and provisions
of the Escrow Agreement and directs the Mayor and the City Clerk to execute, attest, seal and
deliver the Escrow Agreement in the name and on behalf of the City. Amounts in the escrow may
be used to purchase Government Securities (as defined in the Escrow Agreement) to provide for
the principal payable on the Refunded Bonds upon redemption thereof. The Escrow Agent and
the Purchaser are each hereby authorized to act as agent for the City in the purchase of the
Government Securities.
At the time of issuance of the Bonds,the costs of issuance of the Bonds may be paid by the
Purchaser or the Bond Registrar on behalf of the City from the proceeds of the Bonds.
All proceeds received or to be received from any taxes heretofore levied to pay principal
and interest on the Refunded Bonds, including the proceeds received or to be received from the
taxes levied for the year 2019 for such purpose, shall be used to pay the principal of and interest
on the Refunded Bonds and to the extent that such proceeds are not needed for such purpose
because of the establishment of the escrow, the same shall be deposited into the Bond Fund and
used to pay principal and interest on the Bonds in accordance with all of the provisions of this
Ordinance.
Section 13. Non Arbitrage and Tax-Exemption. The City hereby covenants that it will
not take any action, omit to take any action or permit the taking or omission of any action within
its control (including, without limitation, making or permitting any use of the proceeds of the
Bonds) if taking,permitting or omitting to take such action would cause any of the Bonds to be an
arbitrage bond or a private activity bond within the meaning of the Internal Revenue Code of 1986,
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as amended (the "Code"), or would otherwise cause the interest on the Bonds to be included in
the gross income of the recipients thereof for federal income tax purposes. The City acknowledges
that, in the event of an examination by the Internal Revenue Service (the "IRS") of the exemption
from Federal income taxation for interest paid on the Bonds, under present rules, the City may be
treated as a "taxpayer" in such examination and agrees that it will respond in a commercially
reasonable manner to any inquiries from the IRS in connection with such an examination.
The City also agrees and covenants with the purchasers and holders of the Bonds from time
to time outstanding that, to the extent possible under Illinois law, it will comply with whatever
federal tax law is adopted in the future which applies to the Bonds and affects the tax-exempt status
of the Bonds.
The City Council hereby authorizes the officials of the City responsible for issuing the
Bonds,the same being the Mayor and City Clerk,to make such further covenants and certifications
regarding the specific use of the proceeds of the Bonds as approved by the City Council and as
may be necessary to assure that the use thereof will not cause the Bonds to be arbitrage bonds and
to assure that the interest on the Bonds will be exempt from federal income taxation. In connection
therewith, the City and the City Council further agree: (a)through their officers, to make such
further specific covenants,representations as shall be truthful,and assurances as may be necessary
or advisable; (b)to consult with counsel approving the Bonds and to comply with such advice as
may be given; (c) to pay to the United States, as necessary, such sums of money representing
required rebates of excess arbitrage profits relating to the Bonds;(d)to file such forms,statements,
and supporting documents as may be required and in a timely manner; and(e) if deemed necessary
or advisable by their officers, to employ and pay fiscal agents, financial advisors, attorneys, and
other persons to assist the City in such compliance.
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Section 14. Bank Qualification. The City recognizes the provisions of Section 265(b)(3)
of the Code which provide that a "qualified tax-exempt obligation" as therein defined may be
treated by certain financial institutions as if it were acquired on August 7, 1986, for certain
purposes. The City hereby designates each of such Bonds as may be from time to time outstanding
for purposes of Section 265(b)(3) of the Code as a"qualified tax-exempt obligation" as provided
therein.
Section 15. List of Bondholders. The Bond Registrar shall maintain a list of the names
and addresses of the holders of all Bonds and upon any transfer shall add the name and address of
the new Bondholder and eliminate the name and address of the transferor Bondholder.
Section 16. Duties ofBond Registrar. If requested by the Bond Registrar,the Mayor and
City Clerk of the City are authorized to execute the Bond Registrar's standard form of agreement
between the City and the Bond Registrar with respect to the obligations and duties of the Bond
Registrar hereunder which may include the following:
a) to act as bond registrar, authenticating agent, paying agent and transfer agent
as provided herein;
b) to maintain a list of Bondholders as set forth herein and to furnish such list to
the City upon request, but otherwise to keep such list confidential;
c) to give notice of redemption of the Bonds as provided herein;
d) to cancel and/or destroy Bonds which have been paid at maturity or submitted
for exchange or transfer;
e) to furnish the City at least annually a certificate with respect to Bonds
cancelled and/or destroyed; and
f) to furnish the City at least annually an audit confirmation of Bonds paid,
Bonds outstanding and payments made with respect to interest on the Bonds.
Section 17. Continuing Disclosure Undertaking. The Mayor or the Treasurer of the City
is hereby authorized, empowered and directed to execute and deliver the Continuing Disclosure
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Undertaking (the "Continuing Disclosure Undertaking") in substantially the form set forth as
Exhibit D to this Ordinance, attached hereto, or with such changes therein as the officer executing
the Continuing Disclosure Undertaking on behalf of the City shall approve, his or her execution
thereof to constitute conclusive evidence of his or her approval of such changes. When the
Continuing Disclosure Undertaking is executed and delivered on behalf of the City as herein
provided, the Continuing Disclosure Undertaking will be binding on the City and the officers,
employees and agents of the City, and the officers, employees and agents of the City are hereby
authorized, empowered and directed to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the provisions of the Continuing
Disclosure Undertaking as executed. Notwithstanding any other provision of this Ordinance, the
sole remedies for failure to comply with the Continuing Disclosure Undertaking shall be the ability
of the beneficial owner of any Bond to seek mandamus or specific performance by court order to
cause the City to comply with its obligations under the Continuing Disclosure Undertaking.
Section 18. Record-Keeping Policy and Post-Issuance Compliance Matters. It is
necessary and in the best interest of the City to maintain sufficient records to demonstrate
compliance with its covenants and expectations to ensure the appropriate federal tax status for the
Bonds and other debt obligations of the City, the interest on which is excludable from "gross
income" for federal income tax purposes or which enable the City or the holder to receive federal
tax benefits, including, but not limited to, qualified tax credit bonds and other specified tax credit
bonds (including the Bonds, the "Tax Advantaged Obligations"). Further, it is necessary and in
the best interest of the City that (i)the City Council adopt policies with respect to record-keeping
and post issuance compliance with the City's covenants related to its Tax Advantaged Obligations
and (ii)the Compliance Officer (as hereinafter defined) at least annually review the City's
Contracts (as hereinafter defined) to determine whether the Tax Advantaged Obligations comply
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with the federal tax requirements applicable to each issue of the Tax Advantaged Obligations. The
City Council and the City hereby adopt the following Record-Keeping Policy and, in doing so,
amend any similar Record-Keeping Policy or Policies heretofore adopted:
a) Compliance Officer is Responsible for Records. The Treasurer (the
Compliance Officer") is hereby designated as the keeper of all records of the City with
respect to each issue of the Tax Advantaged Obligations, and such officer shall report to
the City Council at least annually that he/she has all of the required records in his/her
possession, or is taking appropriate action to obtain or recover such records.
b) Closing Transcripts. For each issue of Tax Advantaged Obligations, the
Compliance Officer shall receive,and shall keep and maintain,a true,correct and complete
counterpart of each and every document and agreement delivered in connection with the
issuance of the Tax Advantaged Obligations, including without limitation (i)the
proceedings of the City authorizing the Tax Advantaged Obligations, (ii) any offering
document with respect to the offer and sale of the Tax Advantaged Obligations, (iii) any
legal opinions with respect to the Tax Advantaged Obligations delivered by any lawyers,
and(iv) all written representations of any person delivered in connection with the issuance
and initial sale of the Tax Advantaged Obligations.
c) Arbitrage Rebate Liability. The Compliance Officer shall review the
agreements of the City with respect to each issue of Tax Advantaged Obligations and shall
prepare a report for the City Council stating whether or not the City has any rebate liability
to the United States Treasury, and setting forth any applicable exemptions that each issue
of Tax Advantaged Obligations may have from rebate liability. Such report shall be
updated annually and delivered to the City Council.
d) Recommended Records. The Compliance Officer shall review the records
related to each issue of Tax Advantaged Obligations and shall determine what requirements
the City must meet in order to maintain the tax-exemption of interest paid on its Tax
Advantaged Obligations, its entitlement to direct payments by the United States Treasury
of the applicable percentages of each interest payment due and owing on its Tax
Advantaged Obligations, and applicable tax credits or other tax benefits arising from its
Tax Advantaged Obligations. The Compliance Officer shall then prepare a list of the
contracts,requisitions,invoices,receipts and other information that may be needed in order
to establish that the interest paid on the Tax Advantaged Obligations is entitled to be
excluded from "gross income" for federal income tax purposes, that the City is entitled to
receive from the United States Treasury direct payments of the applicable percentages of
interest payments coming due and owing on its Tax Advantaged Obligations, and the
entitlement of holders of any Tax Advantaged Obligations to any tax credits or other tax
benefits,respectively. Notwithstanding any other policy of the City, such retained records
shall be kept for as long as the Tax Advantaged Obligations relating to such records (and
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any obligations issued to refund the Tax Advantaged Obligations) are outstanding, plus
three years, and shall at least include:
i) complete copies of the transcripts delivered when any issue of Tax
Advantaged Obligations is initially issued and sold;
ii) copies of account statements showing the disbursements of all Tax
Advantaged Obligation proceeds for their intended purposes, and records showing
the assets and other property financed by such disbursements;
iii) copies of account statements showing all investment activity of any and
all accounts in which the proceeds of any issue of Tax Advantaged Obligations has
been held or in which funds to be used for the payment of principal of or interest
on any Tax Advantaged Obligations has been held, or which has provided security
to the holders or credit enhancers of any Tax Advantaged Obligations;
iv) copies of all bid requests and bid responses used in the acquisition of
any special investments used for the proceeds of any issue of Tax Advantaged
Obligations, including any swaps, swaptions, or other financial derivatives entered
into in order to establish that such instruments were purchased at fair market value;
v) copies of any subscriptions to the United States Treasury for the
purchase of State and Local Government Series (SLGS) obligations;
vi) any calculations of liability for arbitrage rebate that is or may become
due with respect to any issue of Tax Advantaged Obligations, and any calculations
prepared to show that no arbitrage rebate is due, together, if applicable, with
account statements or cancelled checks showing the payment of any rebate amounts
to the United States Treasury together with any applicable IRS Form 8038-T; and
vii) copies of all contracts and agreements of the City, including any leases
the "Contracts"), with respect to the use of any property owned by the City and
acquired, constructed or otherwise financed or refinanced with the proceeds of the
Tax Advantaged Obligations effective at any time when such Tax Advantaged
Obligations are, will or have been outstanding. Copies of contracts covering no
more than 50 days of use and contracts related to City employees need not be
retained.
e) IRS Examinations or Inquiries. In the event the IRS commences an
examination of any issue of Tax Advantaged Obligations or requests a response to a
compliance check, questionnaire or other inquiry, the Compliance Officer shall inform the
City Council of such event, and is authorized to respond to inquiries of the IRS, and to hire
outside, independent professional counsel to assist in the response to the examination or
inquiry.
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f) Annual Review. The Compliance Officer shall conduct an annual review of
the Contracts and other records to determine for each issue of Tax Advantaged Obligations
then outstanding whether each such issue complies with the federal tax requirements
applicable to such issue, including restrictions on private business use, private payments
and private loans. The Compliance Officer is expressly authorized,without further official
action of the City Council, to hire outside, independent professional counsel to assist in
such review. To the extent that any violations or potential violations of federal tax
requirements are discovered incidental to such review, the Compliance Officer may make
recommendations or take such actions as the Compliance Officer shall reasonably deem
necessary to assure the timely correction of such violations or potential violations through
remedial actions described in the United States Treasury Regulations, or the Tax Exempt
Bonds Voluntary Closing Agreement Program described in Treasury Notice 2008-31 or
similar program instituted by the IRS.
g) Training. The Compliance Officer shall undertake to maintain reasonable
levels of knowledge concerning the rules related to tax-exempt bonds (and build America
bonds and tax credit bonds to the extent the City has outstanding build America bonds or
tax-credit bonds) so that such officer may fulfill the duties described in this Section. The
Compliance Officer may consult with counsel, attend conferences and presentations of
trade groups, read materials posted on various web sites, including the web site of the Tax
Exempt Bond function of the IRS, and use other means to maintain such knowledge.
Recognizing that the Compliance Officer may not be fully knowledgeable in this area,the
Compliance Officer may consult with outside counsel,consultants and experts to assist him
or her in exercising his or her duties hereunder. The Compliance Officer will endeavor to
make sure that the City's staff is aware of the need for continuing compliance. The
Compliance Officer will provide copies of this Ordinance and the Tax Exemption
Certificate and Agreement or other applicable tax documents for each series of Tax
Advantaged Obligations then currently outstanding (the "Tax Agreements") to staff
members who may be responsible for taking actions described in such documents. The
Compliance Officer should assist in the education of any new Compliance Officer and the
transition of the duties under these procedures. The Compliance Officer will review this
Ordinance and each of the Tax Agreements periodically to determine if there are portions
that need further explanation and, if so, will attempt to obtain such explanation from
counsel or from other experts, consultants or staff.
h) Amendment and Waiver. The procedures described in this Section are only
for the benefit of the City. No other person (including an owner of a Tax Advantaged
Obligation)may rely on the procedures included in this Section. The City may amend this
Section and any provision of this Section may be waived,without the consent of the holders
of any Tax Advantaged Obligations and as authorized by passage of an ordinance by the
City Council. Additional procedures may be required for Tax Advantaged Obligations the
proceeds of which are used for purposes other than capital governmentally owned projects
or refundings of such, including tax increment financing bonds, bonds financing output
facilities, bonds financing working capital, or private activity bonds. The City also
recognizes that these procedures may need to be revised in the event the City enters into
any derivative products with respect to its Tax Advantaged Obligations.
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Section 20. Call of the Refunded Bonds. In accordance with the redemption provisions
of the bond ordinances authorizing the Prior Bonds,the City by the City Council does hereby make
provision for the payment of and does hereby call (subject only to the delivery of the Bonds) the
Refunded Bonds for redemption and payment prior to maturity on December 15, 2020 (or such
other date as set forth in the Escrow Agreement).
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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Section 21. Superseder and Effective Date. All ordinances, resolutions, and orders, or
parts thereof, in conflict herewith, are to the extent of such conflict hereby superseded; and this
Ordinance shall be in full force and effect immediately upon its passage and approval.
ADOPTED: October 5, 2020
AYES:
NAYS:
ABSTENTION:
ABSENT:
Approved: October 5, 2020
Mayor, City of McHenry,
McHenry County, Illinois
ATTEST:
City Clerk, City of McHenry,
McHenry County, Illinois
Recorded in the City Records on October 5, 2020.
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LIST OF EXHIBITS:
A-BOND NOTIFICATION
B-BOND PURCHASE AGREEMENT
C-ESCROW AGREEMENT
D-CONTINUING DISCLOSURE UNDERTAKING
STATE OF ILLINOIS
SS
COUNTY OF MCHENRY )
CERTIFICATION OF AGENDA,MINUTES AND ORDINANCE
I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of
the City of McHenry, McHenry County, Illinois (the "City"), and as such official I am the keeper
of the official journal of proceedings, books, records, minutes and files of the City and of the City
Council (the "City Council") of the City.
I do further certify that the foregoing extract of minutes is a full, true and complete
transcript of that portion of the minutes of the meeting (the "Meeting") of the City Council held
on the 5th day of October, 2020 insofar as the same relates to the adoption of an ordinance,
numbered entitled:
AN ORDINANCE providing for the issuance of not to exceed
3,300,000 General Obligation Refunding Bonds, Series 2020A, of
the City of McHenry, McHenry County, Illinois, for the purpose of
refunding certain outstanding general obligation bonds of said City,
providing for the levy and collection of a direct annual tax sufficient
to pay the principal of and interest on said bonds, authorizing and
directing the execution of an escrow agreement in connection with
the issuance of said bonds, and authorizing the sale of said bonds to
Robert W. Baird & Co. Incorporated.
the "Ordinance")a true,correct and complete copy of which Ordinance as adopted at the Meeting
appears in the foregoing transcript of the minutes of the Meeting.
I do further certify that the deliberations of the City Council on the adoption of the
Ordinance were taken openly; that the vote on the adoption of the Ordinance was taken openly;
that the Meeting was held at a specified time and place convenient to the public; that notice of the
Meeting was duly given to all newspapers, radio or television stations, and other news media
requesting such notice; that an agenda(the "Agenda") for the Meeting was posted at the location
where the Meeting was held and at the principal office of the City Council (both such locations
being at City Hall) on a day which was not a Saturday, Sunday or legal holiday for Illinois
municipalities and at least 72 hours in advance of the meeting and remained so posted continuously
until adjournment of the Meeting; that the Agenda contained a specific action item relating to
the Bonds; that a true and complete copy of the Agenda is attached hereto; that the Meeting
was called and held in strict compliance with the provisions of the Open Meetings Act of the State
of Illinois, as amended; and the Illinois Municipal Code, as amended; and that the City Council
have complied with all of the provisions of such act and code and with all of the procedural rules
of the City Council in the adoption of the Ordinance.
IN WITNESS WHEREOF I hereunto affix my official signature and the seal of the City this
5th day of October, 2020.
City Clerk
SEAL]
Attachments: Agenda, Minutes, Ordinance]
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STATE OF ILLINOIS
SS
COUNTY OF MCHENRY )
FILING CERTIFICATE
I, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk
of The County of McHenry, Illinois, and as such official I do further certify that on the day
of 2020, there was filed in my office a duly certified copy of Ordinance
No.entitled:
AN ORDINANCE providing for the issuance of not to exceed
3,300,000 General Obligation Refunding Bonds, Series 2020A, of
the City of McHenry, McHenry County, Illinois, for the purpose of
refunding certain outstanding general obligation bonds of said City,
providing for the levy and collection of a direct annual tax sufficient
to pay the principal of and interest on said bonds, authorizing and
directing the execution of an escrow agreement in connection with
the issuance of said bonds, and authorizing the sale of said bonds to
Robert W. Baird & Co. Incorporated.
duly adopted by the City Council of the City of McHenry, McHenry County, Illinois, on the 5th
day of October, 2020, and approved by the Mayor, and that the same has been deposited in (and
all as appearing from) the official files and records of my office.
IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of said County,
this day of 2020.
County Clerk of The County of McHenry,
Illinois
SEAL]
Department of Community Development4:0
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2170
Fax: (815) 363-2173
McI—Ienr www.cityofmchenry.org
DISCUSSION AGENDA SUPPLEMENT
TO:Mayor and City Council
FOR: October 5, 2020 Regular City Council Meeting
FROM: Cody Sheriff, City Planner
RE:First Midwest Bank Redevelopment (7-Eleven) — Conceptual Presentation and
Discussion
ATT:
1.Original Site Plan and Building Elevations
2.Revised Site Plan & Building Elevations
AGENDA ITEM SUMMARY:
The applicants, McHenry 3510 LLC & McHenry LFI LLC, are requesting preliminary feedback for
the redevelopment of the First Midwest Bank site located at 3510 W Elm Street. The subject
property will need to receive approval of a Conditional Use Permit for the operation of an
automobile fueling station in conjunction with a 7-Eleven convenience store and Laredo Taco.
BACKGROUND:
The Planning and Zoning Commission recommended approval of the applicants' request for a
Conditional Use Permit for the operation of an automobile fueling station on June 17, 2020. After
the public hearing, the applicants decided to revise the site plan to screen the pumps from view
of Green Street. As a result, the new layout will need to go back to the Planning & Zoning
Commission for a recommendation. Prior to returning to the Planning&Zoning Commission, the
applicants are requesting preliminary feedback on the conceptual layout and building elevations.
DEVELOPMENT REVIEW PROCESS:
City Council is being asked for informal input regarding the revised site plan and building
elevations. The applicants will then incorporate feedback into the proposal prior to returning to
the Planning & Zoning Commission for a public hearing on October 21, 2020 and, based on the
outcome from this meeting, return to City Council with a recommendation on November 2, 2020.
The public hearing will require a new public notice.
The petitioner is requesting preliminary feedback from City Council prior to returning to
Planning&Zoning Commission with a revised site plan.
Original Site Plan
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