McHenry Times

Village of Lake in the Hills Committee of the Whole met July 9

Here are the minutes provided by the committee:

Call to Order

The meeting was called to order at 7:30 pm.

Roll call was answered by Trustees Huckins, Dustin, Bojarski, Anderson, and President Bogdanowski.

Motion to allow Trustees Harlfinger and Murphy to attend telephonically was made by Trustee Huckins and seconded by Trustee Dustin. On roll call vote, Trustees Dustin, Anderson, Bojarski, and Huckins voted Aye. No Nays. Motion carried.

Also present were Village Administrator Shannon Andrews, Chief of Police Mary Frake, Finance Director Pete Stefan, Public Works Director Ryan McDillon, Director of Community Development John Svalenka, Parks and Recreation Director Randy Splitt, Deputy Chief of Support Services Matt Mannino, Village Attorney Brad Stewart, and Village Clerk Shannon DuBeau.

The Pledge of Allegiance was led by Firefighter Paramedic and Public Education Coordinator Philip Adams and Deputy Fire Chief Dan Wagner of the Huntley Fire Protection District.

Firefighter Adams stated that the fire district covers 55 square miles, and on average, they receive 7,000 calls for service per year. He introduced Deputy Chief Wagner, who has been with the Huntley Fire Protection District for about three months.

Firefighter Adams gave an overview of the fire district’s public education programs being offered to District 158 students. These programs are designed to incorporate the educational components of each age group. Upon completion, students earn challenge coins that read “know 2 ways out.” These challenge coins can be exchanged for a gift during the Open House event on August 7th from 3pm to 7pm at the Main St. station. The firefighters also aid in fire safety education through the Service Club at Heineman Middle School, the Medical Academy, and the EMR course at Huntley High School. Outside of the school district, there is a Fire Cadet program for those 14 and older and an intern program for those 18 and older.

President Bogdanowski voiced his appreciation for the Huntley Fire District’s cooperation with our village. Trustee Anderson added that their feedback on the Comprehensive Plan has been helpful.

Trustee Duston inquired about the types of calls received. Firefighter Adams stated that about 88% of their calls are related to medical emergencies.

Audience Participation

None.

Administration

Request to Approve a One-year Extension with Granicus, with Two Additional One-year Renewal Terms, for Maintenance, Hosting, and Licensing of the Village’s Website Presented by Village Administrator Shannon Andrews Staff seeks Village Board consideration to enter into a one-year extension, with two additional one-year renewal terms, related to the maintenance, hosting, and licensing of the Village’s website with Granicus.

The Village redesigned the lith.org website and transitioned to Granicus as the website host in 2019 following Village Board approval of a design contract, and five-year progressive maintenance, hosting, and licensing contract. At the time, the cost to redesign the website was $24,240 and was identified in the FY19 Capital Improvement Plan. Instead of moving forward with a comprehensive redesign of the Village’s website this year, staff is requesting an extension of the maintenance, hosting, and licensing agreement with Granicus.

Granicus initially responded with a proposal that reflected a seven percent (7%) increase, year over year, for these services. Staff requested a review of the quote to be consistent with the five percent (5%) year over year increase terms that were initially provided in 2019. Granicus was able to honor this request, as evidenced in the agreement proposed for Village Board consideration.

Staff would like to highlight two additional items for consideration including (1) as a part of the previous agreement, the Village has the option to exercise a redesign of the website at no cost to the client and (2) the extension of the agreement allows for the Village to provide thirty (30) days notice for non-renewal. Regarding these items, staff plans to explore the redesign options to understand what would be included with a potential early 2025 implementation of a redesigned website.

Financial Impact

The Village’s Fiscal Year 2024 Budget anticipated a 5% increase over the FY23 costs in a FY24 budgeted amount of $6,685.29 for website maintenance, hosting, and licensing. The costs for 2025 and 2026 also reflect a 5% increase in cost, at $7,019.55 and $7,370.53, respectively.

Staff recommends a motion to enter into a one-year extension with Granicus, with two additional one-year renewal terms, for maintenance, hosting, and licensing of the Village’s website.

Motion was made to place this item on the Village Board Agenda.

Request to Approve an Amendment to the Architect Agreement for the New Police Facility

Presented by Village Administrator Shannon Andrews

Staff is seeking Board approval of an amendment to the AIA Document B101-2017, Standard Form of Agreement Between Owner and Architect, that was previously Board approved on July 28, 2022.

Upon completion of the final design of the new police facility, Dewberry Architects highlighted a few items that had not been previously included in the agreement, which may be of benefit to the Village. This includes:

1) A set of "conformed documents for construction" at a cost of $6,850. This would provide the Village with a clean set of documents for ease of inspection and ensure accuracy in the field.

2) A set of "as-constructed record drawings" or as-builts, at a cost of $12,975. These drawings incorporate all trades markups throughout the project.

In addition, when the project was put out for bid, a number of bid packages had come in higher than anticipated, including the landscaping and electronic security. Dewberry performed what is called "value analysis" work to identify ways to reduce the project cost in order to better align with the Village's expectations. Based on the standard hourly billing within the agreement, Dewberry is seeking a payment of $21,056 in compensation for their efforts. In exchange for this work performed by Dewberry, the Village ultimately saved over $800,000.

The Village’s contract had previously contemplated one site visit per month for the architect to monitor the alignment of the project against the design. At the time of signing, the project was expected to be 16 months, but was extended to 18 months when the GMP was established. The amendment (attached to the agenda) captures the additional two site visits necessary to extend all the way through the length of the contract.

Finally, since the Village granted Camosy the ability to self-perform work on this project, third party oversight will be necessary to monitor Camosy's work on two bid packages—structural carpentry and general trades. Dewberry has agreed to perform this oversight at a cost not to exceed $38,640 for the additional 42 site visits necessary to monitor this work. While the Village will pay Dewberry directly for this expense, our agreement with Camosy allows us to charge them back for these services.

Financial Impact

Overall, the changes to the agreement are expected to cost $81,361.00; however, $38,640 of this will be reimbursed by Camosy. The remainder of the Village specific expenses total $40,881.

Staff recommends a motion to approve the amendments to the AIA Document B101-2017, Standard Form of Agreement between Owner and Architect, at a cost not to exceed $81,361.00.

President Bogdanowski inquired about site visits. Administrator Andrews explained that the monthly site visits are for general site observations, ensuring the project is in alignment with the design. The oversight visits for general trades will happen periodically and need to extend to the length of the contract, offering quality control.

Motion was made to place this item on the Village Board Agenda.

Finance

Request to Accept Actuarial Valuations

Presented by Finance Director Pete Stefan

Each year, the Village has three actuarial valuation reports performed, the results of which are incorporated into the Annual Comprehensive Financial Report and/or used to determine the recommended amount of contributions to be made into the Lake in the Hills Police Pension Fund. Those reports are:

• Village of Lake in the Hills Postretirement Health Plan Actuarial Valuation

• Lake in the Hills Police Pension Fund GASB 67/68 Report Actuarial Valuation

• Lake in the Hills Police Pension Fund Actuarial Funding Report Actuarial Valuation

The costs for the latter two reports are shared equally between the Village and the Police Pension Fund and are formally presented to each Board. The Police Pension Board then prepares an annual Municipal Compliance Report that is presented to the Village Board prior to any tax levy being adopted. Kevin Cavanaugh from Lauterbach & Amen, LLP was present at the Committee of the Whole meeting to summarize the Police Pension Fund reports and answer questions on any of the three reports.

The Postretirement Health Plan Actuarial Valuation details the costs of the Village’s mandated postretirement health care costs which are comprised of the direct costs of prior employees receiving Public Safety Employee Benefits Act benefits (currently one) as well as the implicit subsidies all retirees receive by only having to contribute the same premium towards health insurance continuation coverage as active employees although retiree health care costs, in general, are more expensive. Both the direct costs and the implicit subsidies are required to be shown as liabilities on the Village’s financial statements.

Staff recommends a motion to accept and place on file the Lake in the Hills Police Pension Fund Actuarial Funding Report Actuarial Valuation as of January 1, 2024, the Lake in the Hills Police Pension Fund GASB 67/68 Report Actuarial Valuation as of January 1, 2023, and the Village of Lake in the Hills Postretirement Health Plan Actuarial Valuation as of January 1, 2023.

Motion was made to place this item on the Village Board Agenda.

Request to Accept the Police Pension Plan Annual Financial Report for the Fiscal Year Ended December 31, 2023

Presented by Finance Director Pete Stefan

The results of the Lake in the Hills Police Pension Fund GASB 67/68 Report Actuarial Valuation are needed by the Village’s auditing firm to complete their audit of the financial statements for the year ended December 31, 2023. A

copy of that audit report is attached to the agenda and noteworthy items include:

• The Plan‘s membership consisted of 71 members – 42 active members and 29 inactive members.

• The Plan’s annual money-weighted rate of return net of investment expense for 2023 was 13.27%. 

• The Plan’s net position increased by $5,127,174 during the year.

• The Plan’s total net position as of December 31, 2023, was $49,058,819.

• The Plan’s total pension liability as of December 31, 2023, was $52,634,825.

• The net pension liability as of December 31, 2023, was $3,576,006.

• The Plan’s funded percentage as of December 31, 2023, on a fair value of assets basis was 93.21%.

The Annual Financial Report for the Police Pension Plan will be incorporated into the Annual Comprehensive Financial Report of the Village and, as such, the cost of the Police Pension Plan audit is split evenly between the Village and the Police Pension Fund.

The Police Pension Plan Annual Financial Report for the Fiscal Year Ended December 31, 2023 will be presented to the Police Pension Board at their July 15th meeting after which a funding request will be made and a Municipal Compliance Report will be prepared and presented to the Village Board for consideration in the development of the FY25 Village budget.

Staff recommends a motion to accept and place on file the Police Pension Plan Annual Financial Report for the Fiscal Year Ended December 31, 2023.

Motion was made to place this item on the Village Board Agenda.

Public Works

Request to Approve an Engineering Services Agreement Amendment

Presented by Public Works Director Ryan McDillon

Staff is seeking Board approval for an amendment to the Agreement for Engineering Services between the Village of Lake in the Hills and Crawford, Murphy, and Tilly, Inc. (CMT). This amendment is necessitated by unforeseen additional engineering efforts required during the construction phase of the "Rehabilitate and Reprofile Runway 8/26" project.

On April 14, 2022, the Village of Lake in the Hills entered into an agreement with Crawford, Murphy, and Tilly, Inc. for construction phase services related to the rehabilitation and reprofiling of Runway 8/26. The initial contract, as specified in Section II.C., provided for a not-to-exceed payment of $163,600.00.

Several unforeseen circumstances necessitated additional engineering efforts, which include the coordination with Illinois Department of Natural Resources “IDNR” for EcoCAT and National Pollutant Discharge Elimination System “NPDES” permit approvals. This task required an extensive review of historical data and the resolution of multiple comments regarding groundwater contamination and stormwater management.

Furthermore, the evaluation of the Rusty Patch Bumble Bee habitat led to the remapping of the entire Airport property. Environmental scientists were engaged to perform field surveys and prepare determination letters regarding habitat potential.

The review of multiple aggregate submittals was also necessary due to limited aggregate availability, exacerbated by an aggregate strike and delays caused by IDNR permitting. Lastly, additional work was required to assist the FAA, IDA, and the Airport in reestablishing Instrument Flight Rules (IFR) procedures for the new runway endpoints.

Financial Impact

The additional costs for these required engineering services are eligible for federal and state participation. Per Section II.C. of the executed agreement, an amendment is warranted when an extension in time or a major change in the scope of work is necessary. IDOT-IDA has reviewed and approved this amendment (Attachment B on the agenda). As a result of these unforeseen circumstances, both an increase in the time of performance and an expansion in the scope of work have occurred. These circumstances were not reasonably foreseeable within the contemplation of the original contract. Therefore, we request that Section II.C. of the agreement be revised to provide a not-to-exceed payment of $314,400.00. This would result in an increase of $7,540 in the Airport Fund.

Staff recommends a motion to approve an amendment to Construction Phase Services Agreement request with Crawford, Murphy, and Tilly, Inc. (CMT), for an amendment to the Agreement for Engineering Services revised to provide a not-to-exceed payment of $314,400.00.

Trustee Dustin questioned the cost. Director McDillon ensured that the numbers are accurate.

Motion was made to place this item on the Village Board Agenda.

Board of Trustees

None.

President

President Bogdanowski thanked Chief Frake for 30 years of exceptional service and wished her the best.

Adjournment

A motion to adjourn the meeting was made by Trustee Huckins and seconded by Trustee Anderson. All in favor by voice vote.

There being no further business to discuss, the Committee of the Whole meeting was adjourned at 8:04 pm.

https://www.lith.org/home/showpublisheddocument/5077