McHenry Times

City of Harvard Administration Committee met Sept. 17

Here are the minutes provided by the committee:

Alderwoman Haderlein called the Administration Committee Meeting to order at 6:30 PM Committee members present: Chairwoman Lisa Haderlein and Alderman John Lavallee. Alderwoman Haderlein noted that Alderman Kriete was on his way. Alderman Kriete arrived shortly thereafter, establishing a quorum. Alderwoman Haderlein reported that Alderwoman Luna would not be attending the meeting.

Also present were Mayor Michael Kelly, Interim City Administrator Deb Bejot, and City Clerk Scott Logan.

Committee Member to attend the meeting electronically pursuant to Section 2.05.H Electronic Attendance at Meeting Rule

No members attended electronically.

Public Comment

No members of the public were present for comment.

Approve Minutes of July 16, 2025

A motion was made by Alderman Lavallee, seconded by Alderman Kriete to accept the Administration Committee Minutes of July 16, 2025, as presented. All ayes. Motion carried.

Discussion/Update on Bernardi Securities Road Program 5-Year Bond

Bob Vail of Bernardi Securities provided an update on the proposed 5-Year Road Program Bond. He noted that Bernardi Securities has worked with the City since 2010 on various bond issues, including pension and city building expansion bonds.

Mr. Vail reviewed current market interest rates, which have declined following a Federal Reserve rate cut, making conditions favorable for bond issuance. The proposed bond schedule would be 15-year bonds, with rates trending lower than in January.

The bonds would be backed by non-home rule sales tax revenue, currently generating nearly $1 million annually. A conservative financial model assumes $900,000 in annual revenue, providing 125% debt service coverage as required.

The proposed plan includes four potential phases, each netting $4 million. The current ordinance would authorize only the first phase. Future phases could be issued in 2030, 2035, and 2040, with each bond having a 15-year term and a 10-year call feature for early payoff or refinancing.

• Alderman Lavallee inquired about the payment structure and flexibility if future phases are not pursued. Mr. Vail stated the bonds would be fully repaid in 15 years, with payments decreasing significantly after five years, providing flexibility for future issuance.

• Alderwoman Haderlein asked about the rationale for the 15-year term. Mr. Vail explained that this duration aligns with the typical lifespan of road improvements and balances affordability with flexibility. Shorter terms would reduce interest rates slightly but increase annual payments and reduce future options.

Mr. Vail outlined the proposed bond timeline:

• Public Hearing – October 28, 2025- City Council Meeting

• Bond Ordinance Adoption – November City Council Meeting

• Rate Lock-In – Approximately December 10

• Closing/Fund Availability – By December 23

"AN ORDINANCE authorizing the issuance of General Obligation Bonds (Alternate Revenue Source), in one or more series, taxable or tax-exempt, of the City of Harvard, McHenry County, Illinois, in an aggregate principal amount not to exceed $4,175,000 for the purpose of financing various road and related improvements within the City and paying for costs related thereto."

Alderwoman Haderlein read the title of the ordinance and the recommendation to refer it to the City Council.

A motion was made by Alderman Lavallee, seconded by Alderman Kriete, to refer the recommendation for approval of the proposed ordinance to the City Council and to authorize the execution of all related documents. All ayes. Motion carried.

Discussion/Action to Apply for Credit Card To Use At Costco For Park/Recreation Supplies

Interim City Administrator Bejot explained that Walmart is discontinuing their corporate credit card program that the city has used for years. The City previously had a Sam's Club account but had to close it due to administrative changes. She proposed applying for a Costco Visa corporate credit card with a $5,000 limit that could be used both at Costco and as a regular credit card for other purchases.

Interim City Administrator Bejot noted that this would replace the Walmart cards currently used by department heads for daily supplies and emergency purchases. The city also has another credit card with a $2,500 limit used for online purchases like trainings.

Mayor Kelly mentioned that Costco offers a cash-back program for qualified purchases that could help offset the membership fee and provide additional value.

A motion was made by Alderwoman Haderlein, seconded by Alderman Lavallee to recommend to the City Council the approval of the application for a credit card to use at Costco for Parks Recreation Supplies with a $5,000 limit. Roll call vote: Kriete, aye; Lavallee, aye; and Haderlein, aye. Motion approved three to zero.

Strategic Vision

No items were discussed.

New Business

Mayor Kelly raised a policy issue regarding customers experiencing large water leaks. He referenced a recent incident in which a resident received an $8,000 water bill due to a significant leak beneath their foundation. The resident was notified of high water usage on September 2, but did not take effective action, and the leak was later identified by city staff on September 15.

Mayor Kelly proposed a formal policy for handling such cases consistently. Under the proposal:

• If the leaked water did not enter the sewer system, the customer would be charged only the water rate ($5.22/unit), rather than the combined water and sewer rate ($10.57/unit).

• For usage prior to notification, the City would split the excess charges 50/50 with the resident.

• For usage after notification, the resident would be fully responsible for the charges.

Mayor Kelly noted that this approach falls within his executive authority for adjustments under $10,000, but he presented it to the committee for input.

Alderman Lavallee questioned the resident's failure to identify the leak despite claiming plumbing experience. Mayor Kelly responded that the leak was located under the foundation, and City staff confirmed the water meter showed ongoing usage that had not been addressed by the resident.

Closed Session to Discuss Section 2(c)(1) Personnel – 7:08 PM

A motion was made by Alderman Lavallee, seconded by Alderman Kriete to go into closed session to discuss Section 2(c)(1) Personnel. All Ayes. Motion carried. 

Motion to Come Back into Open Session – 7:43 PM

A motion was made by Alderman Lavallee, seconded by Alderman Kriete to come back into open session. All ayes. Motion carried.

Action from Closed Session Discussion

No action.

A motion was made by Alderman Kriete, seconded by Alderman Lavallee to adjourn the meeting. All ayes. Motion carried.

The meeting was adjourned at 7:44 PM. 

https://www.cityofharvard.org/media/26766