McHenry Times

Village of Lake in the Hills Committee of the Whole met June 6.

Here is the minutes as provided by the committee:

Call To Order

The meeting was called to order at 7:30 p.m.

Roll call for Trustees Bogdanowski, Huckins, Harlfinger, McPhee, Dustin, Artinghelli and President

Ruzanski.

Also present were Village Administrator Jennifer Clough, Chief of Police Dave Brey, Public Works

Director Fred Mullard, Finance Director Shane Johnson, Director of Community Development Michael

Brown, Parks and Recreation Director Laura Barron, Village Attorney Brad Stewart and Village Clerk

Crystal Ulen.

Pledge of Allegiance was led by President Ruzanski

Audience Participation: none

Administration:

Request for waiver of Section 43.09, “Noise” and Sign Regulations from Club 400 - presented by

Village Administrator Jennifer Clough – In April 2017, the Village became aware of the entity “Club

400” through local media publications and advertisements. Club 400 was seemingly an unregistered

business operating within the Village from the improved basement of a home on Henry Lane. Per the

owner, the entity was established in August of 2014 and serves the purpose of offering public and private

Chicago Cubs themed charitable events, of which the Village understands, generate proceeds that are

donated to individuals in need.

Village staff, and its attorney, along with State Liquor Commission representatives and the Huntley Fire

Protection District, met with the homeowner Stewart McVicar to address various questions and concerns

surrounding compliance with local and state laws and regulations. Since this meeting, Mr. McVicar has

worked diligently to establish Club 400 as a 501(c)3 organization (incorporated May 24, 2017), obtain

necessary insurance, seek event liquor licensing and submit the appropriate building permit application

and materials for his basement buildout (currently in the plan review stage). Additionally, Mr. McVicar

understands that Club 400 will be required to make requests of the Village Board for waivers of noise

and sign regulations for the organization to host events. Club 400 has events planned for the 24th of June

and the 18th of July, 2017.

A letter was included from Ashley Wilson, attorney for Club 400, requesting enforcement activities be

suspended to allow the erection of temporary signage on Henry Lane and a waiver of the provisions of

Section 43.09 of the Municipal Code to allow music to be played for an event being held by Club 400 at

3090 Henry Lane on Saturday, June 24, 2017. Finally, Ms. Wilson, on behalf of Club 400, requests that

parking be allowed on the following streets for between 175 and 250 guests:

 Northside of Gladstone

 Eastside of Henry Lane

 Southside of Gateway

 Eastside of Albrecht

The police department will place signage restricting parking to only one side of the street during the

events to alleviate street congestion and allow for better traffic flow for residents and emergency vehicle

access if necessary.

Ms. Wilson was present at the June 6, 2017 Committee of the Whole meeting to represent the

organization and homeowner/Club 400 board of directors’ member Stewart McVicar.

Trustee McPhee asked if this event taking place in their basement with 175-200 people. Attorney Ashley

Wilson stated it would also be in their enclosed backyard, only in their property. They would have

licensed bartenders from Wrigley Field and have wristbands. Trustee McPhee inquired about neighbor

complaints. Police Chief Brey said he has only had one call on the events Club 400 has had in the past.

Wilson stated the events end between 8:30-10:30 p.m. Trustee Harlfinger had concerns regarding the

parking if emergency vehicles need to pass. Police Chief Brey said the rules that apply to Rib Fest and

Sunset Fest will apply; emergency vehicles have driven by to see if they could pass. Trustee Dustin

asked about the money raised and insurance required. Clough answered that McVicar has all the

necessary insurance required. Motion was made to move item to the Village Board Agenda

Ordinance Establishing the Prevailing Wage Rates of the Village - presented by Village

Administrator Jennifer Clough – State statute requires that during the month of June each calendar year,

each public body must investigate and ascertain the prevailing rate of wages for laborers, mechanics and

other workers in the locality performing public works projects for the public body. Ordinance was

included that satisfies the statutory requirements. Motion was made to move item to the Village Board

Agenda

Parks and Recreation:

Informational Item Concerning Connor Kincaid Memorial Garden - presented by Director of Parks

and Recreation Laura Barron - Parks and Recreation staff was approached by the Kincaid Family in early

April of 2017 with a proposal for a memorial garden at the northern portion of Indian Trail Beach

located at 228 Indian Trail.

Community Development and Public Works staff has since met on site with the Kincaid Family to

discuss specifics of the proposal in relation to the site. The Kincaid’s proposal includes donated labor

and materials, a landscape design incorporating sustainable landscaping and a brick paver hardscape. It

is intended to be a quiet area of the park for reflection. There may be engineering expenses associated

with the project and the Kincaid Family has been informed that those expenses would be their

responsibility to cover the costs of. Public Works has offered to provide some limited labor and

equipment support. The Kincaid Family made a presentation to the Parks and Recreation Board on

Thursday, June 1 at the proposed site. The Board was unanimously in favor of the project. The Kincaid

Family was present at the June 6, 2017 Committee of the Whole meeting to discuss the project.

Kevin and Dawn Kincaid spoke about their son, Connor. Proposed Design was funded by donors in lieu

of flowers. Director of Parks and Recreation Laura Barron stated that the Kincaid family has met with all

the departments and filled out all necessary applications, presented ideas onsite. Trustee McPhee asked if

the area selected is not used by other residents, Director of Parks and Recreation Laura Barron said it is a

grassy area not frequently used and is a good site for the amenity. Kevin Kincaid said that this will make

the park of more use. He would like the garden to be done by the Connor Kincaid memorial fishing

tournament, and would like to dedicate the park on August 19th. The next step will be completed by the

Village Engineer Chad Pieper and Community Development Director Michael Brown. Trustee McPhee

asked if he needed anything from a financial standpoint, from a rotary club or other groups. Kevin

Kincaid said that would be a blessing, the project would be about $40,000. He assured there were no

concerns in finishing the project financially.

Public Works:

Resolution Appropriating Additional Funds for the 2014 Motor Fuel Tax (MFT) for the

Jessie Road Bridge and Final Payment - The Village entered into a Participation Agreement with the

Illinois Department of Transportation (IDOT) for the Jessie Road Bridge rehabilitation project in 2011

and awarded the construction in 2014. Under the agreement, the Village agreed to split the cost of the

work 80 percent federal and 20 percent local. In 2015, the Village was invoiced for and paid a partial

payment to IDOT for the construction phase in the amount of $55,799.06.

On December 11, 2014, the Village Board of Trustees approved Change Orders No. 1-5 for sanitary

repair costs that were paid for solely by the Village. This increased our cost by $16,676.79. On February

12, 2015, the Village Board of Trustees approved Change Order No. 6, a balancing change order that

decreased our cost by $5,922.63. Change Order No. 7 was skipped. Change Order No. 8 further

decreased our cost by $49.14 for non-compliance of materials and was processed by the Public Works

Department.

IDOT recently invoiced the Village for the final payment for this project. Staff reviewed the invoice and

determined that the Village requires an additional $1,000.00 in MFT funds. To use MFT Funds, IDOT

requires that the Village Board of Trustees appropriate the funds through a resolution. Motion was made

to move item to the Village Board Agenda

Finance Director:

Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2016 - presented

by Director of Finance Shane Johnson - Attached is the Village’s Comprehensive Annual Financial

Report (CAFR) for the fiscal year ended December 31, 2016 and the Auditor’s Communication to the

Board of Trustees. At the April 11, 2017 COTW meeting the financial results for FY 16 were discussed

as an informational item. This item builds upon that discussion and represents the formal reports that are

recorded with McHenry County, posted on our website, and satisfy state statute requirements. Once the

CAFR is accepted by the Village Board, it will be submitted to the Government Finance Officers

Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting awards program

and we look forward to another favorable review.

Also, attached is a memorandum stating Management’s Response to the December 31, 2016

Management Letter, which is a part of the Auditor’s Communication to the Board of Trustees, a

Management Letter required per Illinois Compiled Statutes, and the Annual Financial Report for the

Police Pension Plan that has been incorporated into the CAFR. Jim Savio, Partner with Sikich LLP, gave

a brief presentation at the COTW meeting on June 6th and was available to answer any questions the

Village Board had in regards to any of the items included.

Jim Savio pointed out some of the highlights of the comprehensive report. He started on pg 1, the first

three pages are what the auditors are responsible for. MBNA pg 1 is management’s discussion and

analysis, any changes that may have occurred throughout the year and data that you can’t find elsewhere.

It provides a good overview. Pages 4, 5, and 6 are balance sheet, income, capital asset, debt, and

statements of activities. This excludes the Police pension. Pages 7-10 are the governmental statements,

budgetary statements. No assets or debt are included. Pages 11-15 show the propriety fund statements,

statements of revenue and funds, internal service fund. Pages 16 & 17 fiduciary, includes Police Pension

Fund. Pages 60-61 show the schedule of employer contribution. Pages 63-64 show the schedule of

changes on pension liability and trends. Auditors Communication Report Table of Contents was routine,

and then entries found as part of the auditing process. Page 10 is the management letter, no material

weaknesses or significant deficiencies. Motion was made to move item to the Village Board Agenda

Insurance Plan Renewals: Medical, Dental, Vision and Life – presented by Director of Finance Shane

Johnson - As part of the comprehensive benefit package, the Village provides employees and their

families with medical, dental, vision, and life insurance plans and coverage. Currently, these benefits are

provided by BlueCross BlueShield of Illinois (medical), Guardian (dental), and MetLife (vision and life).

A brief presentation on this agenda item was given at the COTW meeting to further explain and provide

financial analysis regarding the insurance renewals.

FY 17 Renewal and Provider Overview

The FY17 budget includes a 10% increase in total insurance costs effective with the July 1, 2017

renewal. The Village initially received a renewal rate increase of 12.8% for the medical plan. After

soliciting and receiving quotes from other insurance carriers through our insurance broker, and further

discussions with BlueCross BlueShield, the rate increase was ultimately reduced to 6.2%. This reduction

equals approximately $116,000 in reduced premiums from the initial renewal. The life plan, which is

paid 100% by the Employer (Village), renewal increased 8.8% or $1,100. Due to the low dollar amount,

there is not a significant impact. The rates for the dental and vision plans will not increase July 1, 2017.

Medical Insurance – The Village currently has five components to its medical insurance program.

Employees have the choice to participate in four different types of plans – a PPO plan, a High

Deductible/Health Savings Account (HDHP/HSA), an HMO plan, or a waiver program. The additional

component is the partially self-funded portion of the PPO and HDHP/HSA plans.

The BlueCross BlueShield PPO plan offers the widest choice of network providers. The Village

purchases a $3,500 deductible (single coverage) and $10,500 deductible (family coverage) medical plan

with 80% coinsurance from BlueCross BlueShield and then self-funds the difference between this plan

and the plan design offered to employees which is a $500 deductible for single coverage and a $1,500

deductible for family coverage.

The BlueCross BlueShield High Deductible/HSA plan offers the same wide network as the PPO plan.

The Village purchases a $5,000 deductible (single coverage) and $10,000 deductible (family coverage)

plan and then self-funds the difference between this plan and the plan design offered to employees which

is a $1,300 deductible for single coverage and a $2,600 deductible for family coverage.

The HMO is a network plan with co-pays for primary care, specialists, other services and prescriptions.

In the past it was the least costly plan but now has been replaced by the HDHP/HSA plan as the least

costly plan.

Competitive quotes were solicited from several other carriers to ensure that we were receiving

competitive renewal rates. Because of the lag time in processing health insurance claims, new carriers

will typically quote the first year for a prospective client as an immature claims year based on ten months

of payments instead of twelve months. Therefore, a rate increase of 15%-20% can be expected in the

second year with a new carrier. Cigna provided a quote with a 4.8% increase. However, the process of

changing providers and the claims catch up in the subsequent years could result in more costs and

administration difficulties than the 1.4% difference in increases.

Based upon the quotes the Village received from alternate carriers, BlueCross BlueShield responded

with a final rate relief quote that lowered their rate increase from a 12.8% increase to a 6.2% increase.

Partially Self-Funded Medical Plan – Both the PPO and HDHP/HSA plans have a partially selffunded

component to them whereby the Village purchases a higher deductible/higher out-of-pocket plan

from BlueCross BlueShield and then self-funds the difference down to the plan designs offered to

employees. Funding is proposed at a level sufficient to pay expected claims plus fees for the next plan

year but actual costs will depend on the number and severity of claims actually incurred.

Waiver Option – The Village currently offers a waiver option to all employees if they have other health

insurance available. The annual waiver payment is currently $2,000 and represents a sharing with the

employee of the premium savings the Village realizes if the employee is not enrolled in the Village’s

health insurance plans. For the 2017-2018 plan year, the net savings to the Village are projected to range

from $4,180 per year for employee only coverage to $19,352 per year for employee and family coverage

in the HDHP/HSA plan.

Dental Insurance – Currently, the Village’s dental plan is a partially self-funded insured plan provided

by Guardian. The Guardian dental plan was not up for renewal this year due to a 2 year renewal in 2016.

Vision Insurance – MetLife vision insurance renewal rates did not change from the previous year. The

Village has received satisfactory service from MetLife, thus far, and recommends renewing with them

again for this renewal period.

Life Insurance – The current rates from MetLife increased 8.8% for Life & AD&D. This equates

roughly to a $1,100 increase to the total premium. This benefit is 100% paid for by the Employer

(Village) and will not have a significant impact due to the low dollar amount of the total premium at

$13,651.

Employee Contributions – Current contribution rates are 15% for the PPO plan, 5% for the

HDHP/HAS plan, and 5% for the HMO plan. Administrator Clough presented an informational item at

the May 23rd COTW meeting with plans to increase employee contributions levels to 18% for the PPO

plan, 7% for the HMO plan, and 6% for the HDHP/HSA plan. As previously discussed, these increases

will bring the Village more in line with our comparable communities and similar plan size averages.

Flexible Spending Accounts – Employees are provided the opportunity to elect to participate in various

other voluntary coverage plans via payroll deduction including flexible spending through WageWorks.

Trustee McPhee asked if this is for every village employee. Open enrollment is June 7, 2017.

Motion was made to move item to the Village Board Agenda

Board of Trustees:

Trustee Harlfinger – Larsen Parcel Committee will be meeting concerning the role of the committee

itself, long term plans and the parcel itself. The house is not a discussion, looking at the barns, food

pantry occupancy, gardens and park. The committee is not here to discuss Silver Linings, asked Jennifer

Clough about Silver Linings. Jennifer Clough said the August 9th is the expiration date for the lease with

Ms. Sales. Trustee McPhee asked if a letter has been given to the residents of the house on the parcel.

Trustee Huckins – Parks and Recreation Board Liaison Report – asked to be called in for the Board

of Trustee meeting on Thursday, June 8, 2017

Trustee Bogdanowski – Planning and Zoning Liaison Report –

Trustee McPhee –

Trustee Dustin –

Trustee Artinghelli -

President: Proclamation on Thursday regarding School District 300 – Gary Chester, Director of District

Security

Reminder that Franks will be in attendance as well as Peter Austin to field questions concerning the

situation the abolishment of the sanitary district.

Performance of appraisals, Trustees will be provided with a new form that was designed by President

Ruzanski and HR Coordinator Anita Neville

President Ruzanski plans on presenting candidates for the committees, Planning and Zoning, as well as

Parks and Recreation. The information will be provided next week for the board to review.

Audience Participation: none

Adjournment: There being no further business to discuss, the Committee of the Whole meeting was

adjourned at 8:27 p.m.

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