public meeting notice and agenda committee of the...
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PUBLIC MEETING NOTICE AND AGENDA
COMMITTEE OF THE WHOLE MEETING
AUGUST 8, 2017
7:30 P.M.
AGENDA
1. Call to Order
2. Pledge of Allegiance
3. Audience Participation
The public is invited to make an issue-oriented comment on any matter of public concern not
otherwise on the agenda. The public comment may be no longer than 3 minutes in duration.
4. Staff Presentations
A. Administration
1. Raffle License Request for Lake in the Hills Elementary PTC
B. Finance
1. Village of Lake in the Hills Police Pension Fund Municipal Compliance Report for the fiscal
year ended December 31, 2016
2. Village of Lake in the Hills Police Pension Fund 2017 Property Tax Levy Request
C. Police Department
1. DEA Chicago Field Division Rockford Resident Office FY2018 Cooperative State and
Local Agreement
D. Public Works
1. 2017 Industrial Water Main Extension Project Engineering Task Order
2. Progress Payment 1 for the 2017 MFT Road Resurfacing Project
3. Airport Ground Lease for Hangar PAP-33
E. Parks and Recreation
1. Waiver of Section 43.09, Noise, of the Lake in the Hills Municipal Code and Section 16,
Signs, of the Zoning Ordinance for the Summer Sunset Festival
2. Issuance of a Pyrotechnic Fireworks License to Melrose Pyrotechnics, Inc. for the Summer
Sunset Festival
3. Contract for Summer Camp Transportation Services provided by First Student for dates
August 14 – 18, and August 21- 22, 2017
5. Board of Trustees
A. Trustee Harlfinger
B. Trustee Huckins
C. Trustee Bogdanowski
D. Trustee McPhee
E. Trustee Dustin
1. Planning and Zoning Commission Liaison Report
F. Trustee Artinghelli
1. Parks and Recreation Board Liaison Report
6. Village President
7. Audience Participation
8. Adjournment
MEETING LOCATION
Village of Lake in the Hills
Board Room
600 Harvest Gate
Lake in the Hills, IL 60156
The Village of Lake in the Hills is subject to the requirements of the Americans with Disabilities Act of
1990. Individuals with disabilities who plan to attend this meeting and who require certain
accommodations so that they can observe and/or participate in this meeting, or who have questions
regarding the accessibility of the meeting or the Village’s facilities, should contact the Village’s ADA
Coordinator at (847) 960-7410 [TDD (847) 658-4511] promptly to allow the Village to make reasonable
accommodations for those persons.
Posted by: _________ ___________________ Date:________________ Time:_____________
AGENDA ITEM NO: 4.A.1
REQUEST FOR BOARD ACTION
MEETING DATE: August 8, 2017
DEPARTMENT: Administration
SUBJECT: Raffle License Request for Lake in the Hills Elementary PTC
EXECUTIVE SUMMARY
The Lake in the Hills Elementary PTC is requesting a Raffle License for a monthly drawing to be held on the 15th of each month from September 2017 through May 2018.
All provisions of Section 31.02 of the Village Code have been met. Lake in the Hills Elementary PTC unanimously voted to request a waiver of the fidelity bond requirement associated with the Raffle Application form.
FINANCIAL IMPACT
None.
ATTACHMENTS
1. Raffle License Application
RECOMMENDED MOTION
Motion to approve the Raffle License Request and waive the fidelity bond requirement for Lake in the Hills Elementary PTC.
Date of Application
Village of Lake in the Hills Raffle Application Form
(The Village President, with the advice and consent of the Board of Trustees, shall have 30 days in which to approve or disapprove the license applied for.)
Application Information: Name of Organization: lAKe lh -the ~j\\s 10.ren.-t :Teocbev-- C.ouf\t.\ \ Date of incorporation or formation of Organization (minimum of 5 years in existence is required to qualify for license):
Does this organization fulfill the requirement of operating without profit to its members: Yes jgJ
Purpose for which club/ organization was formed:
Presiding Officer's Name:
Presiding Officer's Address:
Secretary' s Name:
Secretary's Address:
±o enba.nce. -\-he. welfare. Q(\d =fuf q,ua.\i±y &\uadiot\
NoD
a£ a.>r- cbL \d.re.n "*'ey receive.
\.a~e. \n ~ lli\\ c; ,:tL lDO\ISLe
Raffle Manager's Name: 'JG.~o ue \j N &s.~; "' Raffle Manager's Address: lOl-i \ C.tuKv\eu) \.A~e
Raffle Manager's Phone #: Q> "i 1- 81 S - j c; 3 3 Raffle Manager's Date of Birth: _ _ _,0"--'S""")L-'o=i"J....<....f.--'( L.__,q._.8..u5...__ ___________ _
Names & Addresses of any other individual directly involved with the administration of the raffle.
no~e.;.
Raffle Information:
Dates raffle chances will be sold or issued:
Date/Time raffle is to take place:
Location or Description of Premises and Address of raffle:
l-\TH I ::Ct... La015<D
Location or areas within the Village where the raffle chances will be sold or issued: \\ cJZrds Sb ti by fami\\es; a+ r;choo \
(Y'Orub\~ d~uJ\~ Method by which the winning chance will be determined:
Total number of chances to be sold: S.ooo Maximum price of each raffle chance:
Item(s~ to be raffled: \- 50lJ
Maximum Retail Value ofEach Prize: $ soo $ lroo $ 9oo
2/mcn±h $ 4'5D $ $
Retail dollar value of all prizes: $ ~<a5D
Assertions: Yes~ NoD
Yesgl' N~ D
YesD No~
YesD No$ YesD No~
Yes D No IF)
YesD No !pl
YesD No g)
YesD No [fi
Yes D No ~
Does the raffle manager reside in Lake in the Hills?
Is the raffle manager a US Citizen?
Has the raffle manager ever been convicted of a felony under any federal or state law? Has the raffle manager ever been convicted of pandering or other crimes or misdemeanor opposed to decency and morality? Has the organization ever had a raffle license previously revoked for cause?
Is the presiding officer, secretary, raffle manager or other individuals directly involved in the administration of the raffle, a law enforcing public official, President, Trustee, or member of the Village Board or commission, or any president or member of a County Board? Is there interest in the raffle for any law enforcing public official, President, Trustee, or member of the Village Board or commission, or any president or member of a County Board? Has the organization or raffle manager ever been convicted of a gambling offense as proscribed by either local, state or federal law? Has the organization or raffle manager ever been issued a federal gambling device stamp or a federal wagering stamp for the current tax period? Has the premises of the raffle ever been issued a federal gambling device stamp or a federal wagering stamp for the current tax period?
Bon~nd Fee Requirements: Yes ~ No D Is a waiver of the fidelity bond provision being requested of the Board of
Trustees? Yes rx1 No D If yes, has the organization provided evidence of unanimous vote in favor of
I the fidelity bond waiver? Yes D No D If no, is the fidelity bond attached to this application? (\( }Pt
Village of Lake in the Hills Bond Waiver Request Page
The Village Code requires that the raffle manager shall give a fidelity bond in an amount not less than the anticipated gross receipts for each raffle. The bond shall be in favor of the organization and conditioned upon his/her honesty in the performance of his/her duties. The bond shall also provide that notice is given in writing to the Village of Lake in the Hills not less than thirty (30) days prior to its cancellation.
The Village president and Board of Trustees is authorized to waive the requirement for a bond by including a waiver provision the license issued, provided that by a unanimous vote of the members of the licensed organization, such a waiver is requested. Such a request does not guarantee that a waiver will be granted by the Village of Lake in the Hills; however, if your organization would like to request a waiver of the bonding requirement, please complete the following Bond Waiver Request. Please be sure to have both signatures notarized.
On the f Lf-t( day of_,,...)=u-'-I~Y-----' 2011, the membership of__,L=-=-IT-'-'-'tf ..... QJ__.._,.(._..._, _____ _ (Name of Organization)
OFFICIAL SEAL BLANCA E WILEY
NOTARY PUBLIC, STATE OF ILLINOIS My Commission Expires Apr 8, 2019
NOT FOR PROFIT STATEMENT
We, the undersigned Presiding Officer and secretary, do hereby attest that lQ.Itl irAne 4Y\s ~ t.. (name of organization) is a bona fide religious, charitable, labor, fraternal,
----
educational, or veteran organization that operates without profit to their members and which have been in existence continuously for a period of five (5) years immediately before making application for a license, and which have been during that entire five (5) year period, a bona fide membership engaged in carrying out their objectives as described on the attached raffle application.
Sig"'d~===~-=-=~s-:~ry
Village of Lake in the Hills Raffle Affirmation Page
I (we) swear (or affirm) that our organization/club is not-for-profit and that I (we) have never been convicted of any felony and are not disqualified to receive a license by reason of any matter or thing contained in this Section 31.02 of the Lake in the Hills Municipal Code or any other Ordinances of the Village, laws of the State oflllinois or of the United States of America. I also swear that no previous license issued by any state or subdivision ofFederal Government has been revoked. I will not violate any of the laws of the State of Illinois or of the United States or any Ordinances of the Village of Lake in the Hills in the conduct of the raffle. I will not allow gambling devises or gambling on the premises where the drawing will be held.
I (we) understand that a fidelity bond in an amount not less than the anticipated gross receipts is needed from the manager unless notice is attached to the application that the club/organization voted, by unanimous vote, to waive such provision.
At the conclusion of the raffles, a report shall be made to the Village of Lake in the Hills as to the gross receipts, expenses and net proceeds from the raffles.
- ........... OFFICIAL SEAL ,
BLANCA .E WilEY ~
NOTARY PUBUC, STATE OF ILLINOIS > 4 My commission Expires Apr 8, 2019 ~
--MUNICIPAL CODE SECTION 31.02 TO BE REVIEWED BY APPLICANT
I have read and will comply with Section 31.02 of the Village of Lake in the Hills Municipal Code. t
Date
AGENDA ITEM NO: 4.B.1
REQUEST FOR BOARD ACTIONMEETING DATE: August 8, 2017
DEPARTMENT: Finance
SUBJECT: Village of Lake in the Hills Police Pension Fund Municipal Compliance Report for the Fiscal Year Ended December 31, 2016
EXECUTIVE SUMMARY
Attached is the Lake in the Hills Police Pension Fund Municipal Compliance Report (MCR) for the Fiscal Year Ended December 31, 2016. This report is on the condition of the fund at the end of the most recently completed fiscal year and is required to be presented prior to the Village board levying taxes for the year on behalf of the police pension fund.
The MCR reports on nine items; 1. total cash and investments, 2. estimated receipts during the next fiscal year, 3. estimated amount required during the next fiscal year to pay all pensions and obligations and to meet the annual requirements of the fund, 4. total net income received from investment of assets and other investment information, 5. total number of active employees, 6. total amount disbursed in benefits during the fiscal year, 7. the funded ratio of the fund, 8. the unfunded liability of the fund, 9. a copy of the investment policy.
The Police Pension Board approved the MCR at its meeting on July 24, 2017.
FINANCIAL IMPACT
None.
ATTACHMENTS
1. Village of Lake in the Hills Police Pension Fund Municipal Compliance Report for Fiscal Year EndedDecember 31, 2016.
RECOMMENDED MOTION
Motion to accept and place on file the Village of Lake in the Hills Police Pension Fund Municipal Compliance Report for the Fiscal Year Ended December 31, 2016.
VILLAGE OF LAKE IN THE HILLS, ILLINOISPOLICE PENSION FUND
HOUSE BILL 5088 - MUNICIPAL COMPLIANCE REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2016
VILLAGE OF LAKE IN THE HILLS, ILLINOISPOLICE PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance ReportFor the Fiscal Year Ending December 31, 2016
1)
$ 25,197,232 $ 23,173,355
$ 25,119,258 $ 23,103,437
2)
$ 373,300
$ 1,700,800
$ 1,370,179
3)
$ 1,287,100
$ N/A
$ 1,370,179
$ 950,078
Municipal Contributions
(a) Pay all Pensions and Other Obligations
(b) Annual Requirement of the Fund as Determined by:
Illinois Department of Insurance
Recommended Municipal Contribution
The estimated amount required during the next succeeding fiscal year to (a) pay all pensions andother obligations provided in Article 3 of the Illinois Pension Code, and (b) to meet the annualrequirements of the fund as provided in Sections 3-125 and 3-127:
Private Actuary- Lauterbach & Amen, LLP
Statutory Municipal Contribution
The Pension Board certifies to the Board of Trustees of the Village of Lake in the Hills, Illinois on thecondition of the Pension Fund at the end of its most recently completed fiscal year the followinginformation:
The total cash and investments of the fund and their current market value of those assets:
Current PrecedingFiscal Year Fiscal Year
Total Cash and Investments
Total Net Position
Estimated Receipts - Employee Contributions
Estimated Receipts - All Other Sources
Investment Earnings
The estimated receipts during the next succeeding fiscal year from deductions from the salariesof police officers and from other sources:
Page 1
VILLAGE OF LAKE IN THE HILLS, ILLINOISPOLICE PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance ReportFor the Fiscal Year Ending December 31, 2016
4)
$ 1,386,254 $ (83,047)
Assumed Investment Return
Actual Investment Return
5) The total number of active employees who are financially contributing to the fund:
6)
$ 548,320
$ 309,691
$ 0
Totals $ 858,011
5.90% (0.36)%
39
The total amount that was disbursed in benefits during the fiscal year, including the number ofand total amount disbursed to (i) annuitants in receipt of a regular retirement pension, (ii)recipients being paid a disability pension, and (iii) survivors and children in receipt of benefits:
Total AmountNumber of Disbursed
10
7
0
17
(ii) Disability Pension
(iii) Survivors and Child Benefits
Fiscal Year Fiscal Year
N/A 6.75%
6.75% 6.75%
The total net income received from investment of assets along with the assumed investmentreturn and actual investment return received by the fund during its most recently completedfiscal year compared to the total net income, assumed investment return, and actual investmentreturn received during the preceding fiscal year:
Current Preceding
Net Income Received from Investment of Assets
Illinois Department of Insurance
Private Actuary- Lauterbach & Amen, LLP
Number of Active Members
(i) Regular Retirement Pension
Page 2
VILLAGE OF LAKE IN THE HILLS, ILLINOIS POLICE PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance Report For the Fiscal Year Ending December 31, 2016
7) The funded ratio of the fund: Current
Fiscal Year
Illinois Department of Insurance N/A
Private Actuary- Lauterbach & Amen, LLP 73.44%
Preceding
Fiscal Year
80.80%
70.89%
8) The unfunded liability carried by the fund, along with an actuarial explanation of the unfunded liability:
Unfunded Liability: Illinois Department of Insurance $ N/A
Private Actuary- Lauterbach & Amen, LLP $ 9,522,215
The accrued liability is the actuarial present value of the portion of the projected benefits that has been accrued as of the valuation date based upon the actuarial valuation method and the actuarial assumptions employed in the valuation. The unfunded accrued liability is the excess of the accrued liability over the actuarial value of assets.
9) The investment policy of the Pension Board under the statutory investment restrictions imposed on the fund.
Investment Policy- See Attached.
Please see Notes Page attached.
CERTIFICATION OF MUNICIPAL POLICE
PENSION FUND COMPLIANCE REPORT
The Board of Trustees of the Pension Fund, based upon information and belief, and to the best of our knowledge, hereby certify pursuant to §3-143 of the Illinois Pension Code 40 ILCS 5/3-143, that the preceding report is true and accurate.
Adopted this day of
~ President ~ll)Ue< o c. Date
Secretary ~/\~~ p Date
Page 3
VILLAGE OF LAKE IN THE HILLS, ILLINOISPOLICE PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance ReportFor the Fiscal Year Ending December 31, 2016
INDEX OF ASSUMPTIONS
1)
2)
Estimated Receipts - All Other Sources
3)
(b) Annual Requirement of the Fund as Determined by:
Total Cash and Investments - as Reported in the Audited Financial Statements for the YearsEnded December 31, 2016 and 2015.
Total Net Position - as Reported at Market Value in the Audited Financial Statements for theYears Ended December 31, 2016 and 2015.
Estimated Receipts - Employee Contributions as Reported in the Audited Financial Statementsfor the Year Ended December 31, 2016 plus 4.84% Increase (Actuarial Salary IncreaseAssumption) Rounded to the Nearest $100.
Investment Earnings - Cash and Investments as Reported in the Audited FinancialStatements for the Year Ended December 31, 2016, times 6.75% (Actuarial InvestmentReturn Assumption) Rounded to the Nearest $100.
Municipal Contributions - Recommended Tax Levy Requirement as Reported byLauterbach & Amen, LLP, Actuarial Valuation for the Year Ended December 31, 2016.
(a) Pay all Pensions and Other Obligations - Total Deductions as Reported in the AuditedFinancial Statements for the Year Ended December 31, 2016, plus a 25% Increase, Rounded tothe Nearest $100.
Illinois Department of Insurance - No December 31, 2016 Actuarial Valuation available atthe time of this report.
Private Actuary
Recommended Amount of Tax Levy as Reported by Lauterbach & Amen, LLP in theDecember 31, 2016 Actuarial Valuation.
Statutorily Required Amount of Tax Levy as Reported by Lauterbach & Amen, LLP inthe December 31, 2016 Actuarial Valuation.
Page 4
VILLAGE OF LAKE IN THE HILLS, ILLINOISPOLICE PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance ReportFor the Fiscal Year Ending December 31, 2016
INDEX OF ASSUMPTIONS - Continued
4)
Assumed Investment Return
5)
6)
(ii) Disability Pension - Same as above.
(iii) Survivors and Child Benefits - Same as above.
Illinois Department of Insurance - Preceding Fiscal Year Interest Rate Assumption asReported in the December 31, 2015 Actuarial Valuation. No December 31, 2016 ActuarialValuation available at the time of this report.
Private Actuary - Current and Preceding Fiscal Year Interest Rate Assumption as Reportedin the Lauterbach & Amen, LLP, December 31, 2016 and 2015 Actuarial Valuations.
Actual Investment Return -Net Income Received from Investments as Reported Above as a Percentage of the Average of the Beginning and Ending Balances of the Fiscal Year Cash Investments, Excluding Net Investment Income, Gains, and Losses for the Fiscal Year Return Being calculated, as Reported in the Audited Financial Statements for the Fiscal Years Ended December 31, 2016, 2015 and 2014.
Number of Active Members - Illinois Department of Insurance Annual Statement for December31, 2016 - Schedule P.
(i) Regular Retirement Pension - Illinois Department of Insurance Annual Statement forDecember 31, 2016 - Schedule P for Number of Participants and Expense page 1 for TotalAmount Disbursed.
Net Income Received from Investment of Assets - Investment Income (Loss) net of InvestmentExpense, as Reported in the Audited Financial Statements for the Years Ended December 31,2016 and 2015.
Page 5
VILLAGE OF LAKE IN THE HILLS, ILLINOISPOLICE PENSION FUND
House Bill 5088 (Public Act 95-950) - Municipal Compliance ReportFor the Fiscal Year Ending December 31, 2016
INDEX OF ASSUMPTIONS - Continued
7) The funded ratio of the fund:
8) Unfunded Liability:
Illinois Department of Insurance - Preceding Fiscal Year Net Present Assets as a percentageof Total Assets as Reported in the December 31, 2015 Actuarial Valuation. No December31, 2016 Actuarial Valuation available at the time of this report.
Private Actuary - Current and Preceding Fiscal Year Net Present Assets as a percentage ofTotal Assets as Reported in the Lauterbach & Amen, LLP, December 31, 2016 andDecember 31, 2015 Actuarial Valuations.
Illinois Department of Insurance - Deferred Asset (Unfunded Accrued Liability) - NoDecember 31, 2016 Actuarial Valuation available at the time of this report.
Private Actuary - Deferred Asset (Unfunded Accrued Liability) as Reported by Lauterbach& Amen, LLP in the December 31, 2016 Actuarial Valuation.
Page 6
Lake in the Hills POLICE PENSION FUND INVESTMENT POLICY
1 April 2017
1.0 Policy: The fundamental goal of the Lake in the Hills Police Pension Fund is to provide retirement and other benefits to fund participants. As such, the Pension Fund Board of Trustees (Board) will invest fund assets solely in the interests of fund participants and beneficiaries for the exclusive purpose of providing retirement and other benefits to fund participants and beneficiaries. This criterion applies to specific investments and to the entire investment policy established by the Fund. 2.0 Scope: This investment policy applies to the assets of the Police Pension Fund of the Village of Lake In The Hills. 3.0 Prudence: Investments shall be made with care, skill, prudence and diligence that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of like character with like aims. (Prudent Expert Rule)
3.1 The standard of prudence to be used shall be the “prudent investment expert” standard and shall be applied in the context of managing an overall portfolio. Pension Fund Trustees acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.
4.0 Investment Philosophy: The Board believes that fund assets should be managed in a fashion that reflects the fund’s unique liabilities and funding resources, incorporating accepted investment theory and related, empirical evidence. Specifically, the Board has adopted the following principles:
A. That Asset allocation is the key determinant of return and, therefore, commitments to asset allocation targets will be maintained through a disciplined rebalancing program.
B. That diversification, both by and within
asset classes, is the primary control element.
C. That passive fund portfolios are suitable
investment strategies, especially in highly efficient markets.
D. That “market timing” (defined as
bringing an asset class below policy minimums) is precluded as an acceptable investment strategy.
5.0 Goals and Objectives: For total fund assets, the goals are as follows:
A. To preserve the actuarial soundness of the fund in order to meet benefit obligations.
B. A long-term (one to two market cycles)
rate of return, net of fees, in excess of the policy benchmarks.
2 April 2017
C. The assets of the Fund shall be invested in a manner that is consistent with generally accepted standards of fiduciary responsibility. The safeguards which would guide a prudent expert will be observed. All transactions undertaken on behalf of the Fund will be for the sole benefit of the participants and beneficiaries of the Fund.
D. The investment portfolio shall remain
sufficiently liquid to meet all cash flow requirements that may be reasonably anticipated.
E. The investment program shall be
operated in conformance with federal, state and other legal requirements.
6.0 Delegation of Authority: Authority to manage the Village of Lake In The Hills Police Pension Fund’s investment program is derived from the following: The establishment of investment policies is the responsibility of the Police Pension Board (Board). Management and administrative responsibility for the investment program is the responsibility of the Board who has established written procedures for the operation of the investment program as defined in this policy. Included procedures are: safekeeping, delivery vs. payment, investment accounting, wire transfer agreements and collateral/depository agreements. Such procedures include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Board. The Board shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The Board may from time to time amend the written procedures in
a manner not inconsistent with this policy or with state statutes. 7.0 Ethics and Conflicts of Interest: Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Officers shall refrain from undertaking personal investment transaction with the same individual with whom business is conducted on behalf of their entity. 8.0 Authorized Financial Dealers and
Institutions: The Village Treasurer will maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved security broker/dealers selected by credit worthiness. All authorized firms must be “primary” dealers or regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule). No public deposit shall be made except on a qualified public depository as established by state statutes. Unless transacted by the Investment Manager, all financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the Treasurer with the following:
audited financial statements proof of Financial Industry Regulatory
Authority (FINRA) certification proof of state registration completed broker/dealer questionnaire
3 April 2017
certification of having read the Pension Fund’s investment policy
depository contracts A periodic review of the financial condition and registration of qualified bidders will be conducted by the Treasurer. 9.0 Authorized and Suitable Investments: The Fund may invest in any type of security allowed for in Illinois Compiled Statutes (40 ILCS 5/1-113.1-113.4a) as it may be amended from time to time. Approved investments include:
1) Interest bearing direct obligations of the United States of America.
2) Interest bearing obligations to the extent that they are fully guaranteed or insured as to payment of principal and interest by the United States of America.
3) Interest bearing bonds, notes, debentures, or other similar obligations of agencies of the United States of America. For the purposes of this Section, “agencies of the United States of America” includes: (i) the Federal National Mortgage Association; (ii) federal land banks, federal intermediate credit banks, federal farm credit banks, and any other entity authorized to issue direct debt obligations of the United States of America under the Farm Credit Acts of 1971 or amendments to that Act; (iii) federal home loan banks and the Federal Home Loan Mortgage Corporation; and (iv) any agency created by Act of Congress that is authorized to issue direct debt obligations of the United States of America.
4) Interest bearing savings accounts or certificates of deposit, issued by federally chartered banks or savings and loan associations, to the extent that the deposits are insured by agencies or
instrumentalities of the federal govern-ment.
5) Interest bearing savings accounts or certificates of deposit, issued by State of Illinois chartered banks or savings and loan associations, to the extent that the deposits are insured by agencies or instrumentalities of the federal govern-ment.
6) Investments in credit unions, to the extent that the investments are insured by agencies or instrumentalities of the federal government.
7) Interest bearing bonds of the State of Illinois.
8) Pooled interest bearing accounts managed by the Illinois Public Treasurer’s Investment Pool (Illinois Funds) in accordance with the Deposit of State Moneys Act and interest bearing funds or pooled accounts of the Illinois Metropolitan Investment Fund, or funds managed, operated, and administered by banks, subsidiaries of banks, or subsidiaries of bank holding companies in accordance with the laws of the State of Illinois.
9) Interest bearing bonds or tax anticipation warrants of any county, township, or municipal corporation of the State of Illinois.
10) Direct obligations of the State of Israel, subject to the conditions and limitations of item (5.1) of Section 1-113.
11) Money market mutual funds managed by investment companies that are registered under the federal Investment Company Act of 1940 and the Illinois Securities Law of 1953 and are diversified, open-ended management investment com-panies; provided that the portfolio of the money market mutual fund is limited to the following: (i) bonds, notes certificates of indebtedness, treasury bills, or other securities that are guaranteed by the full faith and credit of the United States of
4 April 2017
America as to principal and interest; (ii) bonds, notes debentures, or other similar obligations of the United States of America or its agencies; and (iii) short term obligations of corporations organized in the United States with assets exceeding $400,000,000, provided that (A) the obligations mature no later than 180 days from the date of purchase, (B) at the time of purchase, the obligations are rated by at least 2 standard national rating services at one of their 3 highest classifications, and (C) the obligations held by the mutual fund do not exceed 10% of the corporation’s outstanding obligations.
12) General accounts of life insurance companies authorized to transact business in Illinois.
13) (1) separate accounts that are managed by life insurance companies authorized to transact business in Illinois and are comprised of diversified portfolios consisting of common or preferred stocks, bonds, or money market instruments; (2) separate accounts that are managed by insurance companies authorized to transact business in Illinois, and are comprised of real estate or loans upon real estate secured by first or second mortgages; (3) Mutual Funds that meet the following requirements: (i) the mutual fund is managed by an investment company and registered under the Federal Investment Company Act of 1940 and registered under the Ilinois Secuities Law of 1953; (ii) the mutual fund has been in operation for at least 5 years; (iii) the mutual fund has total net assets of $250 million or more, and; (iv) the mutual fund is comprised of a diversified portfolio of common or preferred stocks, bonds, or money market instruments; and (4) through an investment adviser, invest a portion of the assets in common and preferred stocks authorized for
investments of trust funds under the laws of the state of Illinois. The stocks must meet all of the following requirements: (a) the common stocks are listed on a national securities exchange or board of trade (as defined in the federal Securities Exchange Act of 1934 and set forth in Section 3.G of the Illinois Securities Law of 1953) or quoted in the national Association of Securities Dealers Automated Quotation System National Market System (NASDAQN MS), (b) the securities are of a corporation created or existing under the laws of the United States or any state, district, or territory thereof and the corporation has been in existence at least 5 years, (c) the corporation has not been in arrears on payment of dividends on its preferred stock during the preceding 5 years, (d) the market value of stock in any one corporation does not exceed 5% of the cash and invested assets of the pension fund, and the investments in the stock of any one corporation do not exceed 5% of the total outstanding stock of that corporation, (e) the straight preferred stocks or convertible preferred stocks are issued or guaranteed by a corporation whose common stock qualifies for investment by the board, (f) the issuer of the stocks has been subject to the requirements of Section 12 of the federal Securities Exchange Act of 1934 and has been current with the filing requirements of Sections 13 and 14 of that Act during the preceding 3 years.
14) Corporate Bonds managed through an investment advisor must meet all of the following requirements:
(1) The bonds must be rated as investment grade by one of the two largest rating services at the time of purchase.
(2) If subsequently downgraded below investment grade, the
5 April 2017
bonds must be liquidated by the manager from the portfolio within 90 days after being downgraded.
15) In addition to the items in Section 13 above,
the pension fund may invest an additional portion of its assets in common and preferred stocks and mutual funds. (a) The stocks must meet all of the
following requirements: (1) The common stocks must
be listed on a national securities exchange or board of trade (as defined in the Federal Securities Exchange Act of 1934 and set forth in paragraph G of Section 3 of the Illinois Securities Law of 1953) or quoted in the National Association of Securities Dealers Automated Quotation System National Market System.
(2) The securities must be of a corporation in existence for at least 5 years.
(3) The market value of stock in any one corporation may not exceed 5% of the total outstanding stock of that corporation.
(4) The straight preferred stocks or convertible preferred stocks must be issued or guaranteed by a corporation whose common stock qualifies for investment by the board.
(b) The mutual funds must meet the following requirements:
(1) The mutual fund must be managed by an investment company registered under the Federal Investment
Company Act of 1940 and registered under the Illinois Securities Law of 1953.
The fund’s total investment in separate accounts and mutual funds shall not exceed 65% of the market value of the pension fund’s net present assets stated in its most recent annual report on file with the Division of Insurance of the Illinois Department of Financial and Professional Regulation.
Except for pecuniary interests permitted under subsection (f) of Section 3-14-4 of the Illinois Municipal Code or under Section 3.2 of the Public Officer Prohibited Practices Act, no person acting as treasurer or financial officer or who is employed in any similar capacity by or for a public agency may do any of the following:
have any interest, directly or indirectly, in any investments in which the agency is authorized to invest.
have any interest, directly or indirectly, in the sellers, sponsors, or managers of those investments.
receive, in any manner, compensation of any kind from any investments in which the agency is authorized to invest.
Any public agency may also invest any public funds in a Public Treasurers’ Investment Pool (Illinois Funds) created under Section 17 of the State Treasurer Act. Any public agency may also invest any public funds in a fund managed, operated, and administered by a bank, subsidiary of a bank, or subsidiary of a bank holding company or use the services of such an entity to hold and invest or advise regarding the investment of any public funds. To the extent a public agency has custody of funds not owned by it or another public agency and does not otherwise have authority to invest such funds, the public agency may invest such funds as if they were its own. Such funds must be
6 April 2017
released to the appropriate person at the earliest reasonable time, but in no case exceeding 31 days, after the private person becomes entitled to the receipt of them. All earnings accruing on any investments or deposits made pursuant to the provisions of this Act shall be credited to the public agency by or for which such investments or deposits were made, except as provided otherwise in Section 4.1 of the State Finance Act or the Local Governmental Tax Collection Act, and except where by specific statutory provisions such earnings are directed to be credited to and paid to a particular fund. 10.0 Collateralization: It is the policy of the Fund and in accordance with the GFOA’s Recommended Practices on the Collateralization of Public Deposits (attachment 1), the Fund requires that funds on deposit in excess of FDIC limits be secured by some form of collateral. The Fund will accept any of the following assets as collateral:
Government Securities Obligations of Federal Agencies Obligations of Federal Instrumentalities
(The Fund reserves the right to accept/reject any form of the above named securities.) The Fund also requires that all depositories that hold the Fund’s deposits in excess of the FDIC limit must provide and sign a Collateralization Agreement (attachment 2). The amount of collateral provided will not be less than 110% of the fair market value of the net amount of public funds secured. The ratio of fair market value of collateral to the amount of funds secured will be reviewed monthly, and additional collateral will be required when the ratio declines below the level required and collateral will be released if the fair market value exceeds the required level. Pledged collateral will be held in
safekeeping, by an independent third party depository, or the Federal Reserve Bank of Boston designated by the Fund and evidenced by a safekeeping agreement. Collateral agreements will preclude the release of the pledged assets without an authorized signature from the Fund. 11.0 Safekeeping and Custody: All fixed income security transactions entered into by the Fund shall be conducted on a delivery-verses-payment (DVP) basis. Securities will be held by one third party custodian designated by the Treasurer and Board, and evidenced by safekeeping receipts plus any tri-party arrangements utilized by mutual funds and/or repurchase agreements. If an independent third party custodian is not used, an excess SIPC policy is required naming the Fund as the insured. 12.0 Diversification and Risk: In order to reduce the risk of default, the investment portfolio of the Fund shall not exceed the following diversification limits unless specifically authorized by the Board:
No nonbank financial institution shall hold more than 40% of the Fund’s investment portfolio, exclusive of U.S. Treasury securities in safekeeping, unless an excess SIPC policy is in place naming the fund as insured.
Monies deposited at a financial institution shall not exceed 75% of the capital stock and surplus of that institution.
Deposits in the Illinois Public Treasurer’s Investment Pool (Illinois Funds) shall not exceed 50% of the Fund’s investment portfolio.
Brokered certificates of deposit shall not exceed 25% of the Fund’s investment portfolio.
Equities:
7 April 2017
- International – minimum of 3%. - Large Cap – minimum of 50%. - Mid Cap – minimum of 3%.
- Small Cap – minimum of 3%. - Other – minimum of 0% - Growth to Value split – 50%/50%
plus or minus 10%. Bonds: The fund shall seek to minimize
credit risk by investing in investment grade corporate bonds as well as US Government securities.
13.0 Equity Selection Criteria: The following criteria will be used in selecting an Equity Fund for investment consideration. Criteria may be added to, deleted from, or modified as agreed by the Board provided at a minimum all statutory requirements are met. Equity selection criteria include style, manager longevity, fund longevity, MorningStar rating, net asset size, performance over comparable index, consistency of style, positive risk adjusted return and competitive fees.
Style: The style will be consistent with the
asset allocation mix as previously identified.
Manager Longevity: The lead manager must have a minimum of five years managing the fund. Consistency of the underlying team should be documented.
Fund Longevity: The fund must have been in existence for at least five years.
Net Asset Size: The net asset size of the individual equity fund must be at least $500,000,000.
Consistency of Style: The fund must demonstrate a five-year consistency of style. Minimal “style drifting” will be accepted.
Positive Risk Adjusted Return: The fund will demonstrate a five-year positive risk adjusted return.
Competitive Fees: Annual expenses, consulting fees, front load, transaction costs and all other fees associated with the purchase and maintenance of the investment will be competitive as compared to like investments. All fees will be fully disclosed.
14.0 Rebalancing Policy: The primary purpose of rebalancing is to ensure that the Fund adheres to its strategic asset allocation, which is the Fund’s explicit statement of its investment approach. Secondly, historical analysis of portfolio returns when rebalancing is used, indicates that rebalancing reduces volatility and may add modest value, in comparison to a similar portfolio that is not rebalanced. To rebalance its portfolio cost-effectively, the Fund will carry out rebalancing in a hierarchical fashion. First, employee and employer contributions and withdrawals of cash will be used to maintain target allocations. Second, when capital distributions are required, income from dividends and interest payments will be used to re-establish target allocations. Third, manager securities will be liquidated from the over-funded manager(s) until the target allocations are met. The Fund will review the portfolio annually for rebalancing and no more frequently than quarterly. Rebalancing shall be within the ranges as outlined in Section 12: Diversification. 15.0 Internal Controls: The Board is responsible for establishing and maintaining an internal control structure designed to insure that the assets of the Fund are protected from loss, theft or misuse. The internal control
8 April 2017
structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of the control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits require estimates and judgments by management. Accordingly, the Board shall establish a process for annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points:
Control of collusion Separation of transaction authority from
accounting and record keeping Custodial safekeeping Avoidance of physical delivery securities Clear delegation of authority to
subordinate staff members Written confirmation of telephone
transactions for investments and wire transfers
Development of a procedure for making wire transfers
16.0 Performance Standards: The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates. Portfolio performance should be compared to appropriate benchmarks on a regular basis. Over the investment horizon established in this statement, it is the goal to meet or exceed: The return of 35% Barclay’s Intermediate Government Credit Index and 65% Russell 3000.
16.1 Performance Benchmarks-Fixed:
The fixed income assets shall be invested in one of two distinct strategies; (1) actively managed utilizing a professional money manager, and (2) internally, utilizing a passive strategy that is managed per the policies and procedures established by the Board. The goal of the Board, over a market cycle, shall be to meet or exceed the returns of the Barclay’s Intermediate Government Credit Index.
16.2 Performance Benchmarks -
Equities:
The goal of each investment manager of a mutual fund/separate account, over the investment horizon, shall be to:
1) Meet or exceed the market index, or blended market index, that most closely correspond to the style of investment management
2) Display an overall level of risk in the portfolio which is consistent with the risk associated with the benchmark specified above. Risk will be measured by the standard deviation of quarterly returns.
17.0 Investment Manager Performance
Review and Evaluation:
Performance reports generated by the Investment Consultant shall be compiled at least quarterly and communicated to the Trustees for review. The investment performance of total portfolios as well as asset class components will be measured against commonly accepted performance benchmarks. Consideration shall be given to the investment objectives, goals and guidelines as set forth in this statement. The Trustees intend to evaluate the portfolio(s) over at least a three year period, but reserve the right to terminate a manager for any reason including the following:
9 April 2017
Investment performance which is signifi-cantly less than anticipated given the discipline employed and the risk parameters established, or unacceptable justification of poor results.
Failure to adhere to any aspect of this statement of investment policy, including communication and reporting require-ments.
Significant qualitative changes to the investment management organization.
Investment managers shall be reviewed regularly regarding performance, personnel, strategy, research capabilities, organizational and business matters, and other qualitative factors that may impact their ability to achieve the desired investment results.
18.0 Reporting: The Treasurer shall prepare an investment report at least quarterly. The report should be provided to the Police Pension Board. The report will include the following:
A listing of individual securities held at the end of the reporting period.
Average weighted yield to maturity of portfolio on Fund investments as compared to applicable benchmarks.
Listing of investments by maturity date. The percentage of the total portfolio
which each type of investment represents. The percentage of the total portfolio
which each institution is holding. The percentage of the total portfolio
broken down by defined maturity periods. Principal and type of investment by fund.
18.1 Marking to Market: A statement of the market value of the portfolio shall be issued at least quarterly. This will ensure that the minimal amount of
review has been performed on the investment portfolio in terms of value and subsequent price volatility. Review should be consistent with the GFOA Recommended Practice on Mark-to-Market Practices for State and Local Government Investment Portfolios and Investment Pools (attachment 3).
19.0 Investment Policy Adoption: The Fund’s investment policy shall be adopted by resolution of the Lake in the Hills Police Pension Fund. This policy shall be reviewed on an annual basis and any modifications made thereto must be approved by the Police Pension Board and refiled with the Division of Insurance of the Illinois Department of Financial and Professional Regulation.
AGENDA ITEM NO: 4.B.2
REQUEST FOR BOARD ACTIONMEETING DATE: August 8, 2017
DEPARTMENT: Finance
SUBJECT: Village of Lake in the Hills Police Pension Fund 2017 Property Tax Levy Request
EXECUTIVE SUMMARY
The Village of Lake in the Hills Police Pension Fund Board is requesting the Village Board to levy an amount sufficient to produce the sum of $1,370,179. This represents an increase of $76,700 or 5.9% from the prior year levy on behalf of the Police Pension Fund.
The Village and Police Pension Fund jointly hire an Actuary, Lauterbach & Amen LLP, to perform an annual valuation of the Police Pension Fund. In accordance with the actuarial valuation results the Actuary has determined the above amount to levy. This can be found on page 3 of the attached report titled Actuarial Valuation as of January 1, 2017.
Since the Police Pension Fund cannot legally levy a property tax, the Village incorporates the funds requirements into its levy in order to support the retirement benefits of the Police Pension Fund and Police Department personnel.
As normal, the entire property tax levy for the Village will be presented to the Village Board for approval later this year.
FINANCIAL IMPACT
None.
ATTACHMENTS
1. 2017 Tax Levy Request Memorandum from the Police Pension Fund2. Historical graph of the total property tax levy for tax years 2010 – 20173. Actuarial Valuation Report as of January 1, 2017 prepared by Lauterbach & Amen, LLP
RECOMMENDED MOTION
Motion to accept the Village of Lake in the Hills Police Pension Fund’s request to levy $1,370,179 for property tax levy year 2017.
MEMORANDUM
TO: Village President and Board of Trustees
FROM: Stan W. Helgerson, Vice President Lake In The Hills Police Pension Fund
DATE: May 2, 2017
RE: 2017 Tax Levy Request
The Police Pension Fund Board is hereby requesting that the Village Board levy $1,370,179 for the Police Pension Fund. The amount was determined by an actuary that was jointly hired by the Village and the Pension Board.
Thank you for your consideration.
cc: Lake In The Hills Pension Board
Tax Year Fiscal Year Corporate IMRF Police Protection Police Pension Audit Liability Insurance Social Security Workers Comp Total Levy % change2010 2011 2,629,560$ 469,256$ 616,784$ 962,256$ 9,682$ 168,706$ 595,820$ 175,763$ 5,627,827$ 0.0%2011 2012 2,509,310$ 477,906$ 588,570$ 934,231$ 9,723$ 182,104$ 596,745$ 261,691$ 5,560,280$ -1.2%2012 2013 2,469,410$ 466,652$ 579,214$ 914,685$ 10,864$ 181,772$ 609,742$ 261,211$ 5,493,550$ -1.2%2013 2014 2,323,904$ 494,472$ 545,124$ 1,020,782$ 10,114$ 187,210$ 622,662$ 279,360$ 5,483,629$ -0.2%2014 2015 2,159,665$ 531,545$ 572,380$ 1,067,870$ 10,384$ 194,872$ 664,065$ 280,914$ 5,481,695$ 0.0%2015 2016 1,921,395$ 522,656$ 609,588$ 1,250,913$ 12,453$ 199,470$ 677,413$ 287,804$ 5,481,691$ 0.0%2016 2017 1,880,165$ 495,470$ 626,722$ 1,293,479$ 13,850$ 189,716$ 709,091$ 273,177$ 5,481,670$ 0.0%
2017 est. 2018 1,833,843$ 479,719$ 611,281$ 1,370,179$ 16,620$ 193,222$ 695,305$ 281,501$ 5,481,670$ 0.0%
Proposed Tax Levy amounts that will be passed by the Board of Trustees in December 2017 to fund Fiscal Year 2018.
2010 2011 2012 2013 2014 2015 2016 2017 est.Corporate $2,629,560 $2,509,310 $2,469,410 $2,323,904 $2,159,665 $1,921,395 $1,880,165 $1,833,843Police Pension $962,256 $934,231 $914,685 $1,020,782 $1,067,870 $1,250,913 $1,293,479 $1,370,179IMRF $469,256 $477,906 $466,652 $494,472 $531,545 $522,656 $495,470 $479,719Police Protection $616,784 $588,570 $579,214 $545,124 $572,380 $609,588 $626,722 $611,281Audit $9,682 $9,723 $10,864 $10,114 $10,384 $12,453 $13,850 $16,620Liability Insurance $168,706 $182,104 $181,772 $187,210 $194,872 $199,470 $189,716 $193,222Social Security $595,820 $596,745 $609,742 $622,662 $664,065 $677,413 $709,091 $695,305Workers Comp $175,763 $261,691 $261,211 $279,360 $280,914 $287,804 $273,177 $281,501
$‐
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Property Tax Levy History
Lauterbach & Amen, LLP 27W457 Warrenville Road Warrenville, IL 60555-3902
Actuarial Valuation as of January 1, 2017
LAKE IN THE HILLS POLICE PENSION FUND
Utilizing Data as of December 31, 2016
For the Contribution Year January 1, 2017 to December 31, 2017
LAUTERBACH & AMEN, LLP
Actuarial Valuation – Funding Recommendation
LAKE IN THE HILLS POLICE PENSION FUND
Contribution Year Ending: December 31, 2017 Actuarial Valuation Date: January 1, 2017 Utilizing Data as of December 31, 2016
Submitted by: Lauterbach & Amen, LLP 630.393.1483 Phone www.lauterbachamen.com Contact: Todd A. Schroeder May 1, 2017
LAUTERBACH & AMEN, LLP
TABLE OF CONTENTS
Lake in the Hills Police Pension Fund
Table of Contents
ACTUARIAL CERTIFICATION .............................................................................................................. 1
MANAGEMENT SUMMARY .................................................................................................................. 2 Contribution Recommendation ............................................................................................................................................ 3 Funded Status ...................................................................................................................................................................... 3 Management Summary – Comments and Analysis ............................................................................................................. 4 Actuarial Contribution Recommendation - Reconciliation ................................................................................................. 7
VALUATION OF FUND ASSETS ............................................................................................................ 8 Market Value of Assets ....................................................................................................................................................... 9 Market Value of Assets (Gain)/Loss ................................................................................................................................. 10 Development of the Actuarial Value of Assets ................................................................................................................. 11 (Gain)/Loss on the Actuarial Value of Assets ................................................................................................................... 11 Historical Asset Performance ............................................................................................................................................ 12
RECOMMENDED CONTRIBUTION DETAIL ..................................................................................... 13 Actuarial Accrued Liability ............................................................................................................................................... 14 Funded Status .................................................................................................................................................................... 14 Development of the Employer Normal Cost ..................................................................................................................... 15 Normal Cost as a Percentage of Expected Payroll ............................................................................................................. 15 Contribution Recommendation .......................................................................................................................................... 15 Actuarial Methods – Recommended Contribution ............................................................................................................ 16
ILLINOIS STATUTORY MINIMUM CONTRIBUTION ...................................................................... 17 Statutory Minimum Contribution ...................................................................................................................................... 18 Funded Status – Statutory Minimum ................................................................................................................................. 18 Actuarial Methods – Illinois Statutory Minimum Contribution ........................................................................................ 20
ACTUARIAL VALUATION DATA ....................................................................................................... 21 Active Employees .............................................................................................................................................................. 22 Inactive Employees ............................................................................................................................................................ 22 Summary Of Benefit Payments ......................................................................................................................................... 22
ACTUARIAL FUNDING POLICIES ...................................................................................................... 23 Actuarial Cost Method ....................................................................................................................................................... 24 Financing Unfunded Actuarial Accrued Liability ............................................................................................................. 24 Actuarial Value of Assets .................................................................................................................................................. 24
ACTUARIAL ASSUMPTIONS ............................................................................................................... 25 Nature of Actuarial Calculations ....................................................................................................................................... 26 Actuarial Assumptions in the Valuation Process ............................................................................................................... 26 Actuarial Assumptions Utilized ......................................................................................................................................... 27
SUMMARY OF PRINCIPAL PLAN PROVISIONS .............................................................................. 29 Establishment of the Fund ................................................................................................................................................. 30
TABLE OF CONTENTS
Lake in the Hills Police Pension Fund
Table of Contents
Administration ................................................................................................................................................................... 30 Employee Contributions .................................................................................................................................................... 30 Normal Retirement Pension Benefit .................................................................................................................................. 30 Normal Retirement Pension Benefit - Continued .............................................................................................................. 31 Early Retirement Pension Benefit ...................................................................................................................................... 31 Pension to Survivors .......................................................................................................................................................... 32 Termination Benefit ........................................................................................................................................................... 33 Disability Benefit ............................................................................................................................................................... 34
GLOSSARY OF TERMS ......................................................................................................................... 35 Glossary of Terms ............................................................................................................................................................. 36
27W457 WARRENVILLE RD. • WARRENVILLE, ILLINOIS 60555
PHONE 630.393.1483 • FAX 630.393.2516www.lauterbachamen.com
Lake in the Hills Police Pension Fund Page 1
ACTUARIAL CERTIFICATION This report documents the results of the actuarial valuation of the Lake in the Hills Police Pension Fund. The purpose is to report the actuarial contribution requirement for the contribution year January 1, 2017 to December 31, 2017. Determinations for purposes other than meeting the employer’s actuarial contribution requirements may be significantly different from the results herein. The results in this report are based on information and data submitted by the Lake in the Hills Police Pension Fund including studies performed by prior actuaries. We did not prepare the actuarial valuations for the years prior to January 1, 2016. Those valuations were prepared by other actuaries whose reports have been furnished to us, and our disclosures are based upon those reports. An audit of the information was not performed, but high-level reviews were performed for general reasonableness, as appropriate, based on the purpose of the valuation. The accuracy of the results is dependent upon the accuracy and completeness of the underlying information. The results of the actuarial valuation and these supplemental disclosures rely on the information provided. The valuation results summarized in this report involve actuarial calculations that require assumptions about future events. The Lake in the Hills Police Pension Fund selected certain assumptions, while others were the result of guidance and/or judgment. We believe that the assumptions used in this valuation are reasonable and appropriate for the purposes for which they have been used. To the best of our knowledge, all calculations are in accordance with the applicable funding requirements, and the procedures followed and presentation of results conform to generally accepted actuarial principles and practices. The undersigned of Lauterbach & Amen, LLP, with actuarial credentials, meets the Qualification Standards of the American Academy of Actuaries to render this Actuarial Opinion. There is no relationship between the Lake in the Hills Police Pension Fund and Lauterbach & Amen, LLP that impairs our objectivity. The information contained in this report was prepared for the use of the Lake in the Hills Police Pension Fund and the Village of Lake in the Hills, Illinois in connection with our actuarial valuation. It is not intended or necessarily suitable for other purposes. It is intended to be used in its entirety to avoid misrepresentations.
Respectfully Submitted,
LAUTERBACH & AMEN, LLP
Todd A. Schroeder, EA
MANAGEMENT SUMMARY
Contribution Recommendation Funded Status
Management Summary
MANAGEMENT SUMMARY
Lake in the Hills Police Pension Fund Page 3
CONTRIBUTION RECOMMENDATION
Prior CurrentValuation Valuation
Contribution Requirement $1,293,479 $1,370,179
Expected Payroll $3,617,853 $3,687,131
Contribution Requirement as aPercent of Expected Payroll 35.75% 37.16%
Recommended Contribution has Increased $76,700 from Prior Year.
FUNDED STATUS
Prior CurrentValuation Valuation
Normal Cost $819,172 $927,272
Market Value of Assets $23,103,437 $25,119,258
Actuarial Value of Assets $24,416,257 $26,328,386
Actuarial Accrued Liability $34,440,322 $35,850,601
Unfunded Actuarial Accrued Liability $10,024,065 $9,522,215
Percent FundedActuarial Value of Assets 70.89% 73.44%
Market Value of Assets 67.08% 70.07%
Funded Percentage has Increased 2.55
on an Actuarial
Value of Assets Basis.
MANAGEMENT SUMMARY
Lake in the Hills Police Pension Fund Page 4
MANAGEMENT SUMMARY – COMMENTS AND ANALYSIS Contribution Results The contribution recommendation is based on the funding policies and procedures that are outlined in the “Actuarial Funding Policies” section of this report. The State of Illinois statutes for pension funds contain parameters that should be used to determine the minimum amount of contribution to a public pension fund. Those parameters and the resulting minimum contribution can be found in the “Illinois Statutory Minimum Contribution” section of this report. Defined Benefit Plan Risks Asset Growth Pension funding involves preparing plan assets to pay benefits for the members when they retire. During their working careers, assets need to build with contributions and investment earnings, and then the pension fund distributes assets during retirement. Based on the fund’s current mix of employees and funded status, the fund should be experiencing positive asset growth on average if requested contributions are made and expected investment earnings come in. In the current year, the fund asset growth was positive by approximately $2.0 million dollars. Asset growth is important long-term. Long-term cash flow out of the pension fund is primarily benefit payments. Expenses make up a smaller portion. The fund should monitor the impact of expected benefit payments and the impact on asset growth in the future. In the next 5 years, benefits payments are anticipated to increase 45-50%, or approximately $457,000. In the next 10 years, the expected increase in benefit payments is 130-135%, or approximately $1.3 million dollars. Unfunded Liability: Unfunded liability represents dollars we expect to be in the pension fund already for the fund members based on funding policy. To the extent dollars are not in the pension fund the fund is losing investment returns on those dollars going forward. Payments to unfunded liability pay for the lost investment earnings, as well as the outstanding unfunded amount. If payment is not made, the unfunded liability will grow. In the early 1990s, many pension funds in Illinois adopted an increasing payment to handle unfunded liability due to a change in legislation. The initial payments decreased, and payments were anticipated to increase annually after that. In many situations, payments early on may be less than the interest on unfunded liability, which means unfunded liability is expected to increase even if contributions are at the recommended level.
MANAGEMENT SUMMARY
Lake in the Hills Police Pension Fund Page 5
The current contribution recommendation includes a payment to unfunded liability that is approximately $128,000 more than interest on the unfunded liability. All else being equal and contributions being made, unfunded liability would still be expected to decrease. The employer and the fund should anticipate currently that improvement in the funded percent will be mitigated in the short-term. The employer and the fund should understand this impact as we progress forward to manage expectations. Actuarial Value of Assets: The pension fund smooths asset returns that vary from expectations over a five-year period. The intention over time is that asset returns for purposes of funding recommendations are a combination of several years. The impact is intended to smooth out the volatility of contribution recommendations over time, but not necessarily increase or decrease the level of contributions over the long-term. When asset returns are smoothed, there are always gains or losses on the Market Value of Assets that are going to be deferred for current funding purposes, and recognized in future years. Currently, the pension fund is deferring approximately $1.2 million dollars in losses on the Market Value of Assets. These are asset losses that will be recognized in upcoming periods, independent of the future performance of the Market Value of Assets. Plan Assets The results in this report are based on the assets held in the pension fund. Assets consist of funds held for investment and for benefit payments as of the valuation date. In addition, assets may be adjusted for other events representing dollars that are reasonably expected to be paid out from the pension fund or deposited into the pension fund after the actuarial valuation date as well. The current fund assets are audited. The actuarial value of assets under the funding policy is equal to the fair market value of assets, with unexpected gains and losses smoothed over 5 years. More detail on the Actuarial Value of Assets can be found in the funding policy section of the report.
The Plan Assets Used in
this Report are Audited.
MANAGEMENT SUMMARY
Lake in the Hills Police Pension Fund Page 6
Demographic Data Demographic factors can change from year to year within a pension fund. Changes in this category include hiring new employees, employees retiring or becoming disabled, retirees passing away, and other changes. Demographic changes can cause an actuarial gain (contribution that is less than expected compared to the prior year) or an actuarial loss (contribution that is greater than expected compared to the prior year). Demographic gains and losses occur when the assumptions over the one-year period for employee changes do not meet our long-term expectation. For example, if no employees become disabled during the year, we would expect a liability gain. If more employees become disabled than anticipated last year, we would expect a liability loss. Generally, we expect short-term fluctuations in demographic experience to create 1%-3% gains or losses in any given year, but to balance out in the long-term. In the current report, the key demographic changes were as follows: New hires: The fund added 1 new active member in the current year through hiring. When a new member is admitted to the pension fund, the employer contribution will increase to reflect the new member. The increase in the recommended contribution in the current year for new fund members is approximately $11,000. Retirement: There was 1 member of the fund who retired during the year. When a fund member retires, the normal cost will decrease. Any change in the actuarial liability will be considered when determining the amount to pay towards unfunded liability each year. The decrease in the recommended contribution in the current year due to the retirement experience is approximately $7,000. Salary Increases: Salary increases were less than anticipated in the current year. Most active members received an increase of 2.25% or less. This caused a decrease in the recommended contribution in the current year of approximately $16,000. Assumption Changes In the current valuation, we have updated the mortality assumption to include mortality improvements as stated in the most recently released MP-2016 table. In addition, the rates are being applied on a fully-generational basis. These changes were made to better reflect the future anticipated experience in the fund. See page 28 for more details on the specific mortality updates made and the table on the following page for the impact of these changes on the current valuation. Funding Policy Changes The funding policy was not changed from the prior year.
MANAGEMENT SUMMARY
Lake in the Hills Police Pension Fund Page 7
ACTUARIAL CONTRIBUTION RECOMMENDATION - RECONCILIATION Actuarial liability is expected to increase each year for both interest for the year and as active employees earn additional service years towards retirement. Similarly, actuarial liability is expected to decrease when the fund pays benefits to inactive employees. Contributions are expected to increase as expected pay increases under the funding policy for the Fund.
Actuarial Contribution
Liability Recommendation
Prior Valuation 34,440,322$ 1,293,479$
Expected Changes 2,338,181 42,038
Initial Expected Current Valuation 36,778,503$ 1,335,517$
Other increases or decreases in actuarial liability (key changes noted below) will increase or decrease the amount of unfunded liability in the plan. To the extent unfunded liability increases or decreases unexpectedly, the contribution towards unfunded liability will also change unexpectedly.
Actuarial Contribution
Liability Recommendation
Salary Increase Less than Expected (306,219) (15,768)
Demographic Changes 240,836 13,539
Assumption Changes (862,520) 3,896
Asset Return Less than Expected * - 33,582
Contributions Greater than Expected^ - (587)
Total Actuarial Experience (927,902)$ 34,662$
Current Valuation 35,850,601$ 1,370,179$
*The impact on contribution due to asset performance is based on the Actuarial Value of Assets. ^Contributions were greater than expected due to one active member’s service purchase that was completed in the current year. Key demographic changes were discussed in the prior section.
VALUATION OF FUND ASSETS
Market Value of Assets Actuarial Value of Assets
VALUATION OF FUND ASSETS
Lake in the Hills Police Pension Fund Page 9
MARKET VALUE OF ASSETS Statement of Assets
Cash and Cash Equivalents $ 546,576 $ 120,322
Money Market 843,437 541,120
Fixed Income 10,624,566 11,445,047
Mutual Funds 11,093,505 13,013,715
Receivables (Net of Payables) (4,647) (947)
Net Assets Available for Pensions $ 23,103,437 $ 25,119,258
Prior CurrentValuation Valuation
The Total Value of Assets has Increased $2,015,821 from Prior Valuation.
Statement of Changes in Assets Total Market Value - Prior Valuation $ 23,103,437
Plus - Employer Contributions 1,248,941
Plus - Employee Contributions 410,317
Plus - Return on Investments 1,386,254
Less - Benefit and Related Payments (1,002,314)
Less - Other Expenses (27,378)
Total Market Value - Current Valuation $ 25,119,258
The Return on Investment on
the Market Value of Assets
for the Fund was Approximately
5.8% Net of Administrative
Expenses.
The return on investments shown has been determined as the Return on Assets from the statement of changes in assets, as a percent of the average of the beginning and ending Market Value of Assets. Return on Investment is net of the Other Expenses as shown. The Return on Investments has been excluded from the Total Market Value of Assets at the end of the year for this calculation.
VALUATION OF FUND ASSETS
Lake in the Hills Police Pension Fund Page 10
MARKET VALUE OF ASSETS (GAIN)/LOSS Current Year (Gain)/Loss on Market Value of Assets Total Market Value - Prior Valuation $ 23,103,437
Contributions 1,659,258
Benefit Payments (1,002,314)
Expected Return on Investments 1,581,654
Expected Total Market Value - Current Valuation 25,342,036
Actual Total Market Value - Current Valuation 25,119,258
Current Market Value (Gain)/Loss $ 222,778
Expected Return on Investments $ 1,581,654
Actual Return on Investments (Net of Expenses) 1,358,876
Current Market Value (Gain)/Loss $ 222,778
The Return on the Market
Value of Assets was Lower than Expected Over
the Most Recent Year.
The (Gain)/Loss on the Market Value of Assets has been determined based on expected returns at the actuarial rate.
VALUATION OF FUND ASSETS
Lake in the Hills Police Pension Fund Page 11
DEVELOPMENT OF THE ACTUARIAL VALUE OF ASSETS Total Market Value - Current Valuation $ 25,119,258
Adjustment for Prior (Gains)/Losses
First Preceding Year $ 222,778 178,222Second Preceding Year 1,656,689 994,014Third Preceding Year 380,696 152,278Fourth Preceding Year (576,931) (115,386)
Total Deferred (Gain)/Loss 1,209,128
Initial Actuarial Value of Assets - Current Valuation $ 26,328,386
Less Contributions for the Current Year and Interest - Less Adjustment for the Corridor -
Actuarial Value of Assets - Current Valuation $ 26,328,386
Full Amount
The Actuarial Value of Assets is Equal to
the Fair Market Value of Assets with
Unanticipated Gains/Losses
Recognized over 5 Years. The Actuarial
Value of Assets is Currently 105% of the Market Value.
(GAIN)/LOSS ON THE ACTUARIAL VALUE OF ASSETS
Total Actuarial Value - Prior Valuation $ 24,416,257
Plus - Employer Contributions 1,248,941
Plus - Employee Contributions 410,317
Plus - Return on Investments 1,282,563
Less - Benefit and Related Payments (1,002,314)
Less - Other Expenses (27,378)
Total Actuarial Value - Current Valuation $ 26,328,386
The Return on Investment on the Actuarial
Value of Assets for the Fund was Approximately
5.1% Net of Administrative
Expenses.
The Actuarial Value of Assets incorporates portions of gains and losses over multiple years.
VALUATION OF FUND ASSETS
Lake in the Hills Police Pension Fund Page 12
HISTORICAL ASSET PERFORMANCE The chart below shows the historical rates of return on plan assets for both Market Value of Assets and Actuarial Value of Assets.
Market ActuarialValue Value
First Preceding Year 5.8% 5.1%
Second Preceding Year (0.5%) 5.3% The returns on assets shown above were calculated based on the annual return on investment for the year, as a percentage of the average value of the assets for the year. For purposes of determining the average value of assets during the year, the ending market value of assets has been adjusted to net out to the portion related to the investment returns themselves. All other cash flows are included. For purposes of determining the annual return on investment we have adjusted the figures shown on the preceding pages. The figures shown on the preceding pages are net of investment expenses. We have made an additional adjustment to net out administrative expenses. Netting out administrative expenses allows us to capture returns for the year that can be used to make benefit payments as part of the ongoing actuarial process. The adjustment we make is for actuarial reporting purposes only. By netting out administrative expenses and capturing return dollars that are available to pay benefits, it provides us a comparison to the estimated rate of return on assets, but does not provide a figure that would be consistent with the return rates that are determined by other parties. Therefore, this calculated rate of return should not be used to analyze investment performance of the Fund or the performance of the investment professionals.
RECOMMENDED CONTRIBUTION DETAIL
Actuarial Accrued Liability Funded Status
Development of the Normal Cost Recommended Contribution
Actuarial Methods – Recommended Contribution
RECOMMENDED CONTRIBUTION DETAIL
Lake in the Hills Police Pension Fund Page 14
ACTUARIAL ACCRUED LIABILITY
Active Employees $ 21,002,461 $ 20,824,603
Inactive EmployeesTerminated Employees - Vested 89,089 97,297 Retired Employees 8,298,807 9,735,953 Disabled Employees 5,049,965 5,192,748 Other Beneficiaries - -
Total Inactive Employees 13,437,861 15,025,998
Total Actuarial Accrued Liability $ 34,440,322 $ 35,850,601
Prior CurrentValuation Valuation
The Total Actuarial
Liability has Increased
$1,410,279 from Prior Valuation.
FUNDED STATUS
Total Actuarial Accrued Liability $ 34,440,322 $ 35,850,601
Total Actuarial Value of Assets 24,416,257 26,328,386
Unfunded Actuarial Accrued Liability $ 10,024,065 $ 9,522,215
Total Market Value of Assets $ 23,103,437 $ 25,119,258
Percent FundedActuarial Value of Assets
Market Value of Assets
Prior CurrentValuation Valuation
70.89% 73.44%
67.08% 70.07%
Funded Percentage as of
the Valuation Date is Subject to Volatility on Assets and
Liability in the Short-Term.
RECOMMENDED CONTRIBUTION DETAIL
Lake in the Hills Police Pension Fund Page 15
DEVELOPMENT OF THE EMPLOYER NORMAL COST
Total Normal Cost $ 819,172 $ 927,272
Estimated Employee Contributions (358,529) (365,395)
Employer Normal Cost $ 460,643 $ 561,877
Prior CurrentValuation Valuation At a 100%
Funding Level, the Normal Cost Contribution is Still Required.
NORMAL COST AS A PERCENTAGE OF EXPECTED PAYROLL
Expected Payroll $ 3,617,853 $ 3,687,131
Employee Normal Cost Rate
Employer Normal Cost Rate
Total Normal Cost Rate
Valuation Valuation
9.910% 9.910%
12.73% 15.24%
22.64% 25.15%
CurrentPrior
Ideally, the Employer
Normal Cost Rate will Remain
Stable.
CONTRIBUTION RECOMMENDATION
Employer Normal Cost* $ 515,937 $ 599,804
Amortization of Unfunded AccruedLiability/(Surplus) 777,542 770,375
Funding Requirement $ 1,293,479 $ 1,370,179
Prior CurrentValuation Valuation The
Recommended Contribution has Increased 5.9%
from Prior Valuation.
*Employer Normal Cost Contribution includes interest through the end of the year.
RECOMMENDED CONTRIBUTION DETAIL
Lake in the Hills Police Pension Fund Page 16
ACTUARIAL METHODS – RECOMMENDED CONTRIBUTION
Actuarial Valuation Date
Data Collection Date
Actuarial Cost Method Entry Age Normal (Level % Pay)
Amortization Method Level % Pay (Closed)
Amortization Target 100% Funded over 17 years
Asset Valuation Method 5-Year Smoothed Market Value
January 1, 2017
December 31, 2016
The contribution and benefit values of the Pension Fund are calculated by applying actuarial assumptions to the benefit provisions and census information furnished, using the actuarial cost methods described. The actuarial cost and amortization method allocates the projected obligations of the plan over the working lifetimes of the plan participants. The recommended contribution amount shown in this report is based on the methods summarized above. The Actuarial Funding Policies section of the report will include a more detail description of the funding methods being used. The Actuarial Funding Methods are meant to provide a systematic process for determining contributions on an annual basis. The methods do not impact the expectation of future benefit payments. The methods only impact the way dollars are contributed towards future benefit payments. Different Actuarial Funding Methods may achieve funding goals with differing levels of success. Certain methods are more efficient and more stable on an annual basis.
ILLINOIS STATUTORY MINIMUM CONTRIBUTION
Minimum Contribution Methods and Assumptions
ILLINOIS STATUTORY MINIMUM CONTRIBUTION
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STATUTORY MINIMUM CONTRIBUTION
MinimumContribution
Contribution Requirement $950,078
Expected Payroll $3,687,131
Contribution Requirement as aPercent of Expected Payroll 25.77%
FUNDED STATUS – STATUTORY MINIMUM
MinimumContribution
Normal Cost $1,091,222
Market Value of Assets $25,119,258
Actuarial Value of Assets $26,328,386
Actuarial Accrued Liability $32,317,741
Unfunded Actuarial Accrued Liability $5,989,355
Percent FundedActuarial Value of Assets 81.47%
Market Value of Assets 77.73%
ILLINOIS STATUTORY MINIMUM CONTRIBUTION
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The Statutory Minimum Contribution is based on funding methods and funding parameters in the Illinois statutes for pension funding. The resulting contribution is lower than the recommended contribution for the current plan year. The lower contribution amount is not recommended because it represents only a deferral of contributions when compared to the recommended contribution method. Actuarial Funding methods for pensions are best applied to provide a balance between the long-term goals of a variety of stakeholders:
1. Beneficiaries – the fund participants are interested in benefit security and having the dollars there to pay benefits when retired
2. Employers – cost control and cost stability over the long-term
3. Taxpayers – paying for the services they are receiving from active employees The Statutory Minimum Contribution methods are not intended to provide a better system in any of the above categories long-term. The parameters are not recommended for a long-term funding strategy. The Statutory Minimum methods put into place in 2011 were intended to provide short-term budget relief for Employer contributions. An employer using the Statutory Minimum parameters for current funding should view the contributions as short-term relief. Our recommendation in this situation is for a pension fund and an employer to work towards a long-term funding strategy that better achieves the long-term funding goals, over a period that does not exceed 3-5 years. The Securities and Exchange Commission in 2013 used the phrase “Statutory Underfunding” to describe situations where contributions appear to be more manageable in the short-term, but set up future contribution requirements that are less likely to be manageable.
ILLINOIS STATUTORY MINIMUM CONTRIBUTION
Lake in the Hills Police Pension Fund Page 20
ACTUARIAL METHODS – ILLINOIS STATUTORY MINIMUM CONTRIBUTION
Actuarial Valuation Date
Data Collection Date
Actuarial Cost Method Projected Unit Credit (Level % of Pay)
Amortization Method Level % Pay (Closed)
Remaining Amortization Period 90% Funded over 24 years
Asset Valuation Method 5-Year Smoothed Market Value
January 1, 2017
December 31, 2016
The contribution and benefit values of the Pension Fund are calculated by applying actuarial assumptions to the benefit provisions and census information furnished, using the actuarial cost methods described. The actuarial cost and amortization method allocates the projected obligations of the plan over the working lifetimes of the plan participants. The recommended contribution amount shown in this report is based on the methods summarized above. The Actuarial Funding Policies section of the report will include a more detail description of the funding methods being used. The Actuarial Funding Methods are meant to provide a systematic process for determining contributions on an annual basis. The methods do not impact the expectation of future benefit payments. The methods only impact the way dollars are contributed towards future benefit payments. Different Actuarial Funding Methods may achieve funding goals with differing levels of success. Certain methods are more efficient and more stable on an annual basis.
ACTUARIAL VALUATION DATA
Active Employees Retirees and Beneficiaries
ACTUARIAL VALUATION DATA
Lake in the Hills Police Pension Fund Page 22
ACTIVE EMPLOYEES
Vested 31 31Nonvested 8 8
Total Active Employees 39 39
Total Payroll $ 3,560,003 $ 3,628,173
Prior CurrentValuation Valuation
INACTIVE EMPLOYEES
Terminated Employees - Vested 1 1Retired Employees 9 10Disabled Employees 7 7Other Beneficiaries 0 0
Total Inactive Employees 17 18
Prior CurrentValuation Valuation
SUMMARY OF BENEFIT PAYMENTS
Terminated Employees - Vested $ 1,296 $ 1,296 Retired Employees 41,103 47,590 Disabled Employees 24,296 25,808 Other Beneficiaries - -
Total Inactive Employees $ 66,695 $ 74,693
Valuation ValuationPrior Current
Benefits shown for terminated employees under deferred retirement are not currently in pay status.
ACTUARIAL FUNDING POLICIES
Actuarial Cost Method Financing Unfunded Accrued Liability
Actuarial Value of Assets
ACTUARIAL FUNDING POLICIES
Lake in the Hills Police Pension Fund Page 24
ACTUARIAL COST METHOD The actuarial cost method allocates the projected obligations of the plan over the working lifetimes of the plan participants. In accordance with the Pension Fund’s Funding Policy the actuarial cost method for the recommended contribution basis is Entry Age Normal (Level Percent of Pay). The Entry Age Normal Cost Method is a method under which the actuarial present value of the projected benefits of each individual included in an actuarial valuation is allocated on a level basis over the earnings or service of the individual between entry age and assumed exit age. The portion of this actuarial present value allocated to a valuation year is called normal cost. The portion of the actuarial present value not provided at a valuation date by the actuarial present value of future normal costs is called the actuarial liability. FINANCING UNFUNDED ACTUARIAL ACCRUED LIABILITY The Unfunded Actuarial Accrued Liability may be amortized over a period either in level dollar amounts or as a level percentage of projected payroll. In accordance with the Pension Fund’s Funding Policy for the recommended contribution the unfunded actuarial accrued liabilities are amortized by level percent of payroll contributions to 100% funding target over the remaining 17 future years. ACTUARIAL VALUE OF ASSETS The pension fund is an ongoing plan. The employer wishes to smooth the effect of volatility in the market value of assets on the annual contribution. The Actuarial Value of Assets is equal to the Market Value of Assets with unanticipated gains/losses recognized over five years. The asset valuation method is intended to create an Actuarial Value of Assets that remains reasonable in relation to the Market Value of Assets over time. The method produces results that can fall above and below the Market Value of Assets. The period of recognition is short. It is intended that the period of recognition is short enough to keep the Actuarial Value of Assets within a decent range of the Market Value. The employer has not placed a specific corridor around the Market Value of Assets.
ACTUARIAL ASSUMPTIONS
Nature of Actuarial Calculations Actuarial Assumptions in the Valuation Process
Actuarial Assumptions Utilized
ACTUARIAL ASSUMPTIONS
Lake in the Hills Police Pension Fund Page 26
NATURE OF ACTUARIAL CALCULATIONS The results documented in this report are estimates based on data that may be imperfect and on assumptions about future events. Certain plan provisions may be approximated or deemed immaterial, and, therefore, are not valued. Assumptions may be made about participant data or other factors. Reasonable efforts were made in this valuation to ensure that significant items in the context of the actuarial liabilities or costs are treated appropriately, and not excluded or included inappropriately.
Actual future experience will differ from the assumptions used in the calculations. As these differences arise, the expense for accounting purposes will be adjusted in future valuations to reflect such actual experience.
A range of results different from those presented in this report could be considered reasonable. The numbers are not rounded, but this is for convenience only and should not imply precision which is not inherent in actuarial calculations. ACTUARIAL ASSUMPTIONS IN THE VALUATION PROCESS The contribution and benefit values of the Pension Fund are calculated by applying actuarial assumptions to the benefit provisions and census information furnished, using the actuarial cost methods described in the previous section. The principal areas of financial risk which require assumptions about future experience are: Long-term Rates of Investment Return Patterns of Pay Increases for Members Rates of Mortality Among Members and Beneficiaries Rates of Withdrawal of Active Members Rates of Disability Among Members Age Patterns of Actual Retirement
Actual experience of the Pension Fund will not coincide exactly with assumed experience. Each valuation provides a complete recalculation of assumed future experience and takes into account all past differences between assumed and actual experience. The result is a continual series of adjustments to the computed contribution requirement. From time to time it becomes appropriate to modify one or more of the assumptions, to reflect experience trends (but not random year-to-year fluctuations). Details behind the selection of the actuarial assumptions can be found in the assumption document provided to the client. The client has reviewed and approved the assumptions as a reasonable expectation of the future anticipated experience under the plan.
ACTUARIAL ASSUMPTIONS
Lake in the Hills Police Pension Fund Page 27
ACTUARIAL ASSUMPTIONS UTILIZED Expected Return on Investments 6.75% net of adminstrative expenses.
CPI-U 2.50%
Total Payroll Increases 3.25%
Individual Pay Increases 4.00% - 11.02% Individual salary increases include a long-term average increase
for inflation, average annual increases for promotions, and any additional increases for a step program. Sample Rates as Follows:
Service Rate Service Rate
0 11.02% 8 4.00%1 10.35% 9 4.00%2 9.78% 10 4.00%3 9.29% 15 4.00%4 8.86% 20 4.00%5 8.48% 25 4.00%6 8.14% 30 4.00%7 7.84% 35 4.00%
Retirement Rates 100% of the L&A Assumption Study Cap Age 65 for Police 2016.
Sample Rates as Follows:
Age Rate Age Rate
50 0.117 53 0.13951 0.124 54 0.14752 0.131 55 0.156
ACTUARIAL ASSUMPTIONS
Lake in the Hills Police Pension Fund Page 28
Withdrawal Rates 100% of the L&A Assumption Study for Police 2016. Sample Rates as Follows:
Age Rate Age Rate
25 0.041 40 0.02730 0.039 45 0.01435 0.036 50 0.003
Disability Rates 100% of the L&A Assumption Study for Police 2016. Sample
Rates as Follows:
Age Rate Age Rate
25 0.0005 40 0.002830 0.0010 45 0.004335 0.0018 50 0.0064
Mortality Rates Active Mortality follows the Sex Distinct Raw Rates as Developed
in the RP-2014 Study, with Blue Collar Adjustment. These Rates are Improved Generationally using MP-2016 Improvement Rates.
Retiree Mortality follows the L&A Assumption Study for Police
2016. These Rates are Experience Weighted with the Raw Rates as Developed in the RP-2014 Study, with Blue Collar Adjustment and Improved Generationally using MP-2016 Improvement Rates.
Disabled Mortality follows the Sex Distinct Raw Rates as
Developed in the RP-2014 Study for Disabled Participants, with Blue Collar Adjustment. These Rates are Improved Generationally using MP-2016 Improvement Rates.
Spouse Mortality follows the Sex Distinct Raw Rates as Developed in the RP-2014 Study. These Rates are Improved Generationally using MP-2016 Improvement Rates.
Married Participants 80% of Active Participants are Assumed to be Married. Female
Spouses are Assumed to be 4 Years Younger than Male Spouses.
SUMMARY OF PRINCIPAL PLAN PROVISIONS
Establishment of the Fund Administration
Employee Contributions Normal Retirement Pension Benefits
Pension to Survivors Termination Benefits Disability Benefits
SUMMARY OF PRINCIPAL PLAN PROVISIONS
Lake in the Hills Police Pension Fund Page 30
ESTABLISHMENT OF THE FUND The Police Pension Fund is established and administered as prescribed by “Article 3. Police Pension Fund – Municipalities 500,000 and Under” of the Illinois Pension Code. ADMINISTRATION The Police Pension Fund is administered by a Board of Trustees located in each municipality maintaining a pension fund for its police officers. Its duties are to control and manage the pension fund, to hear and determine applications for pensions, to authorize payment of pensions, to establish rules, to pay expenses, to invest funds, and to keep records. EMPLOYEE CONTRIBUTIONS Employees contribute 9.910% of salary.
NORMAL RETIREMENT PENSION BENEFIT Hired Prior to January 1, 2011
Eligibility: Age 50 with at least 20 years of creditable service and no longer a police officer.
Benefit: 50% of final salary is payable commencing at retirement for 20 years of service. An additional 2.5% of final salary is added for each additional year of service in excess of 20 years of service (not to exceed 75% of final salary). “Final salary” is the salary attached to rank held on the last day of services or for 1 year prior to the last day, whichever is greater. Annual Increase in Benefit: An officer will receive an initial increase of 1/12 of 3% for each month that has elapsed since retirement. The initial increase date will be the later of the first day of the month following the attainment of age 55, or the first anniversary of the date of retirement. Subsequent increases of 3% of the current pension amount (including prior increases) will be provided in each January thereafter.
SUMMARY OF PRINCIPAL PLAN PROVISIONS
Lake in the Hills Police Pension Fund Page 31
NORMAL RETIREMENT PENSION BENEFIT - CONTINUED Hired on or After January 1, 2011
Eligibility: Age 55 with at least 10 years of creditable service and no longer a police officer. Benefit: 2.5% of final average salary for each year of service is payable at retirement (not to exceed 75% of final average salary). “Final average salary” is determined by dividing the highest total salary over 96 consecutive months of service in the last 120 months of service by the total number of months of service in the period. Annual salary for this purpose will not exceed $106,800, indexed by the lesser of 3% or ½ of the CPI-U for the 12 months ending with the September preceding each November 1. The salary cap will not decrease.
Annual Increase in Benefit: The initial increase date will be the January 1st following the later of the attainment of age 60, or the first anniversary of the date of retirement. Subsequent increases will occur on each subsequent January 1st. The first increase and subsequent increases will be the lesser of 3% of the original benefit or ½ of the CPI-U for the 12 months ending with the September preceding each November 1, applied to the original benefit.
EARLY RETIREMENT PENSION BENEFIT Hired Prior to January 1, 2011
None Hired on or After January 1, 2011
Eligibility: Age 50 with at least 10 years of creditable service and no longer a police officer.
Benefit: The normal retirement pension benefit reduced by ½ of 1% for each month that the police officer’s age is under age 55.
Annual Increase in Benefit: The initial increase date will be the January 1st following the later of the attainment of age 60, or the first anniversary of the date of retirement. Subsequent increases will occur on each subsequent January 1st. The first increase and subsequent increases will be the lesser of 3% of the original benefit or ½ of the CPI-U for the 12 months ending with the September preceding each November 1, applied to the original benefit.
SUMMARY OF PRINCIPAL PLAN PROVISIONS
Lake in the Hills Police Pension Fund Page 32
PENSION TO SURVIVORS Hired Prior to January 1, 2011
Death - Line of Duty Surviving spouse is entitled to 100% of the salary attached to the rank of the police officer on the last day of service, payable immediately.
Death - Non-Duty
Current Pensioners (Including Disabled Pensioners): Surviving spouse to receive continuation of the pension.
Active Employee with 20+ Years of Service: Surviving spouse is entitled to the full pension earned by the police officer at the time of death.
Active Employee with 10-20 Years of service: Surviving spouse is entitled to 50% of the salary attached to the rank of the police officer on the last day of service, payable immediately
Annual Increase in Benefit: None.
Hired on or After January 1, 2011
Death - Line of Duty Surviving spouse is entitled to 100% of the salary attached to the rank of the police officer on the last day of service, payable immediately.
Death - Non-Duty
Current Pensioners (Including Disabled Pensioners), Active Employee with 20+ Years of Service, and Active Employee with 10-20 Years of service: Surviving spouse to receive 66 ⅔% of the police officer’s earned pension at the date of death. Annual Increase in Benefit: The initial increase date will be the January 1st after the attainment of age 60 by the recipient of the survivor’s pension. Subsequent increases will occur on each subsequent January 1st. The first increase and subsequent increases will be the lesser of 3% of the original benefit or ½ of the CPI-U for the 12 months ending with the September preceding each November 1, applied to the original survivor’s benefit amount.
SUMMARY OF PRINCIPAL PLAN PROVISIONS
Lake in the Hills Police Pension Fund Page 33
TERMINATION BENEFIT Hired Prior to January 1, 2011
Eligibility: At least 8 years but less than 20 years of creditable service.
Benefit: 2.5% of final salary for each year of service is payable beginning at age 60. “Final salary” is based on the greater of salary during the last year of service prior to termination of employment or the pay rate for the police officer at termination of employment.
Annual Increase in Benefit: An officer will receive an initial increase of 3% on the first anniversary of the date of start of payments. Subsequent increases of 3% of the current pension amount will be provided in each January thereafter.
Hired on or After January 1, 2011
Eligibility: At least 10 years but less than 20 years of creditable service.
Benefit: 2.5% of final salary for each year of service is payable beginning at age 60. “Final salary” is based on the greater of salary during the last year of service prior to termination of employment or the pay rate for the police officer at termination of employment. Annual salary for this purpose will not exceed $106,800, indexed by the lesser of 3% or ½ of the CPI-U for the 12 months ending with the September preceding each November 1. The salary cap will not decrease. Annual Increase in Benefit: The initial increase date will be the January 1st following the first payment. Subsequent increases will occur on each subsequent January 1st. The first increase and subsequent increases will be the lesser of 3% of the original benefit or ½ of the CPI-U for the 12 mos. ending with the September preceding each November 1, applied to the original benefit amount.
SUMMARY OF PRINCIPAL PLAN PROVISIONS
Lake in the Hills Police Pension Fund Page 34
DISABILITY BENEFIT Hired Prior to January 1, 2011
Eligibility: Disability (duty or non-duty).
Benefit: A police officer who becomes disabled on duty is entitled to receive a pension equal to the greater of 65% of final salary or the pension they would have been entitled to upon retirement at the time of disability. For a non-duty disability, the police officer is entitled to 50% of final salary. “Final salary” is based on the pay rate for the police officer on the last day of service.
Annual Increase in Benefit: The initial increase date will be the January 1st following the attainment of age 60. Subsequent increases will occur on each subsequent January 1st. The first increase is 3% of the original benefit for each full year that has passed since the pension began. Subsequent increases will be the 3% of the original pension benefit amount.
Hired on or after January 1, 2011
Eligibility: Disability (duty or non-duty).
Benefit: A police officer who becomes disabled on duty is entitled to receive a pension equal to the greater of 65% of final salary or the pension they would have been entitled to upon retirement at the time of disability. For a non-duty disability, the police officer is entitled to 50% of final salary. “Final salary” is based on the pay rate for the police officer on the last day of service.
Annual Increase in Benefit: The initial increase date will be the January 1st following the attainment of age 60. Subsequent increases will occur on each subsequent January 1st. The first increase and subsequent increases will be the lesser of 3% of the original benefit or ½ of the CPI-U for the 12 months ending with the September preceding each November 1, applied to the original benefit amount.
GLOSSARY OF TERMS
GLOSSARY OF TERMS
Lake in the Hills Police Pension Fund Page 36
GLOSSARY OF TERMS Actuarial Accrued Liability –The actuarial present value of future benefits based on employees’ service rendered to the measurement date using the selected actuarial cost method. It is that portion of the Actuarial Present Value of plan benefits and expenses allocated to prior years of employment. It is not provided for by future Normal Costs. Actuarial Cost Method – The method used to allocate the projected obligations of the plan over the working lifetimes of the plan participants. Actuarial Value of Assets – The value of the assets used in the determination of the Unfunded Actuarial Accrued Liability. The Actuarial Value of Assets is related to Market Value of Assets, with adjustments made to spread unanticipated gains and losses for a given year over a period of several years. Actuarial Value of Assets is generally equally likely to fall above or below the Market Value of Assets, and generally does not experience as much volatility over time as the Market Value of Assets. Asset Valuation Method – A valuation method designed to smooth random fluctuations in asset values. The objective underlying the use of an asset valuation method is to provide for the long-term stability of employer contributions. Funding Policy – A set of procedures for a Pension Fund that outlines the “best practices” for funding the pension benefits based on the goals of the plan sponsor. A Funding Policy discusses items such as assumptions, Actuarial Cost Method, assets, and other parameters that will best help the sponsor meet their goal of working in the best interest of the plan participant. Market Value of Assets – The value of the cash, bonds, securities and other assets held in the pension trust as of the measurement date. Normal Cost –The present value of future benefits earned by employees during the current fiscal year. It is that portion of the Actuarial Present Value of benefits and expenses which is allocated to a valuation year by the Actuarial Cost Method. Unfunded Actuarial Accrued Liability – The excess of the Actuarial Accrued Liability over the Actuarial Value of Assets. The Unfunded Actuarial Accrued Liability is amortized over a period either in level dollar amounts or as a level percentage of projected payroll.
AGENDA ITEM NO: 4.C.1
REQUEST FOR BOARD ACTION
MEETING DATE: August 8, 2017
DEPARTMENT: Police
SUBJECT: DEA Chicago Field Division Rockford Resident Office FY2018 Cooperative State and Local Agreement
EXECUTIVE SUMMARY
The U.S. Drug Enforcement Administration (DEA) leads the battle against the use of illegal drugs in the United States. The DEA Rockford Cooperative Task Force oversees drug enforcement efforts in fourteen counties in Northwestern Illinois including McHenry County. The DEA Task Force partners with state and local law enforcement agencies to conduct comprehensive drug investigations. The advantages of this partnership are increased manpower for drug investigations, expanded jurisdictional reach, close coordination between all law enforcement officials, and sharing resources. This increases the investigative ability of the Department and highlights the Department’s dedication to combat the drug problem locally by actively participating in drug investigations in and around Lake in the Hills.
The Department has been a member of the DEA Rockford Cooperative Task Force since January of 2015. The officer assigned to this duty is assigned on a fulltime basis to the McHenry County Sheriff’s Police Narcotics Task Force. This agreement replaces the agreement entered on October 1, 2016.
FINANCIAL IMPACT
None
ATTACHMENTS
1. Chicago Field Division Rockford Resident Office FY2018 Cooperative State and Local AgreementLake in the Hills Police Department
RECOMMENDED MOTION
Motion to approve the agreement between the Lake in the Hills Police Department and the DEA Rockford Cooperative Task Force.
CHICAGO FIELD DIVISION ROCKFORD RESIDENT OFFICE
FY2018 COOPERATIVE STATE AND LOCAL AGREEMENT LAKE IN THE HILLS POLICE DEPARTMENT
This agreement is made this 1st day of October, 2017, between the United States Department of Justice, Drug Enforcement Administration (hereinafter "DEA''), and the Lake in the Hills Police Department (hereinafter "LITHPD"). The DEA is authorized to enter into this cooperative agreement concerning the use and abuse of controlled substances under the provisions of 21 U.S.C. § 873.
WHEREAS there is evidence that trafficking in narcotics and dangerous drugs exists in the Rockford, Illinois area and that such illegal activity has a substantial and detrimental effect on the health and general welfare of the people of Illinois, the parties hereto agree to the following:
1. The Chicago Field Division (CFD) Rockford Resident Office (RRO) Task Force will perform the activities and duties described below:
a. disrupt the illicit drug traffic in the area by immobilizing targeted violators and trafficking organizations;
b. gather and report intelligence data relating to trafficking in narcotics and dangerous drugs; and
c. conduct undercover operations where appropriate and engage in other traditional methods of investigation in order that the Task Force activities will result in effective prosecution before the courts of the United States and the State of Illinois. ·
2. To accomplish the objectives of the CFD RRO Task Force, the LITHPD agrees to detail one (1) experienced officer to the CFD Task Force for a period of not less than two years. During this period of assignment, the LITHPD officer will be under the direct supervision and control of DEA supervisory personnel assigned to the Task Force. ·
3. The LITHPD officer assigned to the CFD RRO Task Force shall adhere to DEA policies and procedures. Failure to adhere to DEA policies and procedures shall be grounds for dismissal from the Task Force.
4. The LITHPD officer assigned to the Task Force shall be deputized as a Task Force Officer of DEA pursuant to 21 U.S.C. Section 878.
4. The LITHPD officer assigned to the Task Force shall be deputized as a Task Force Officer of DEA pursuant to 21 U.S.C. Section 878.
5. To accomplish the objectives of the CFD RRO Task Force, DEA will assign five (5) Special Agents to the Task Force. DEA will also, subject to the availability of annually appropriated funds or any continuing resolution thereof, provide necessary funds and equipment to support the activities of the DEA Special Agents and LITHPD officer assigned to the Task Force. This support will include: office space, office supplies, travel funds, funds for the purchase of evidence and information, investigative equipment, training, and other support items.
6. The LITHPD shall comply with Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, as amended, and all requirements imposed by or pursuant to the regulations of the United States Department of Justice implementing those laws, 28 C.F.R. Part 42, Subparts C, F, G, H and I.
7. The term of this agreement shall be effective from the date in paragraph one until September 30, 2018. This agreement may be terminated by either party on thirty days' advance written notice. Billing for all outstanding obligations must be received by DEA within 90 days of the date of termination of this agreement. DEA will be responsible only for obligations incurred by LITHPD during the term of this agreement.
For the Drug Enforcement Administration:
Dennis A. Wichern Special Agent in Charge
For the Lake in the Hills Police Department:
David Brey Chief
Date: ------
Date: _____ _
AGENDA ITEM NO: 4.D.1
REQUEST FOR BOARD ACTION
MEETING DATE: August 8, 2017
DEPARTMENT: Public Works
SUBJECT: 2017 Industrial Water Main Extension Project Engineering Task Order
EXECUTIVE SUMMARY
Staff presented an informational item on the proposed Industrial Drive Water Main Extension Project at the July 13 Committee of the Whole meeting, during which the Board of Trustees directed staff to have HR Green design an extension of the main to Walter Court. HR Green Inc. has submitted a task order for these services in an amount not to exceed $40,000.00. A copy of the task order and map outlining the affected area is attached for your review and consideration. A representative from HR Green will be in attendance at the Committee of the Whole Meeting to answer questions.
FINANCIAL IMPACT
The 2017 budget includes $80,000.00 for the engineering services for the 2017 Industrial Drive Water Main Extension Project. The total expense for the extension project is the not-to-exceed amount of $40,000.00.
ATTACHMENTS
1. HR Green Inc. Task Order2. Maps
RECOMMENDED MOTION
Motion to approve a task order with HR Green to provide engineering services for the 2017 Industrial Water Main Extension Project at a cost not to exceed $40,000.00
CONTRACT BETWEEN
THE VILLAGE OF LAKE IN THE HILLS
AND
HR Green, Inc.
FOR
INDUSTRIAL WATER MAIN EXTENSION PROJECT
DESIGN AND BIDDING SERVICES
JOB NO.: 171028
August 10,2017
Page 1 of7
In accordance with Section 1.1 of the Master Contract between the Village of Lake in the Hills ("Owner") and HR Green, Inc. ("CONSULTANT") for Calendar Year 2017 Professional Engineering Services, dated January 12, 2017 (the "Contract"), Owner and Consultant agree as follows:
1. Project:
Industrial Water Main Extension Project
2. Services of Consultant:
A. Basic Services:
The Scope of Services includes preliminary engineering; preparation of contract plans and specifications for the proposed water main extension for the above project. The Water Main Extension limits are detailed below and shown on the attached map. The improvements within these areas may consist of installing new water mains, valves, fire hydrants, flushing hydrants, and water services. The project includes the area determined by CONSULTANT and OWNER to be Option 3 of the Industrial Project.
Industrial Water Main Extension Project Location:
Industrial Drive (Imhoff Drive to Walter Court) Walter Court (Industrial Drive to Train Tracks)
Data Collection/Field Survey
This portion of the contract includes the completion of a topographic survey along the proposed water main routes and collection of necessary information for cross culvert replacement and ditch grading.
This work consists of locating by coordinates, both horizontally and vertically, the following features: a. Underground utilities marked by J.U.L.I.E. locate and above ground utilities; b. All culverts, utilities, manholes, catch basins, hydrants, valve boxes, power poles,
street signs, streetlights, guardrails, etc.; c. Top of frame and invert elevations of all existing manholes, catch basins, culverts,
etc.; d. Street centerlines; e. Edge of pavement; f. Fences, gates, etc.; g. Retaining walls and other walls; h. Trees; 1. Centerlines of ditches;
Page 2 of7
J. Abutting streets including widths of pavement, shoulder, curbs, sidewalks, ditches, etc.; and
Design Engineering
CONSULTANT will prepare pre-final and final engineering plans and specifications. The scope of these services include two coordination meetings with the Village of Lake in the Hills, visiting the site and coordinating with the potential property owners for property access required for implementation of the proposed watermain improvements.
Based upon the above referenced meetings, CONSULT ANT will finalize design plans and specifications as detailed below.
A typical set of contract plans and specifications will contain the following information:
I. Title Sheet/Plan Notes 2. Summary of Quantities 3. Specifications 4. Plan and Profile Sheets 5. Construction Details
CONSULTANT will amend the colored Water Main Replacement Program map to reflect changes to projects in recent years and planned changes to future projects.
Contract Administration
The following services will be provided to bid and award a contract for this project:
1. Prepare bid documents. 2. Advertise for bids. (Village to pay for cost of Advertisement) 3. Hold bid letting. 4. Review bids. 5. Provide bid tabulation. 6. Prepare contract documents. 7. Send contracts to village for coordination with the contractor for execution.
8. Meetings:
Kick -off meeting (Internal) 30% review mtg with PW 90% review mtg with PW
Proj. Eng. 2 hours 2 hours 2 hours
Page 3 of7
Tech Clerical 2 hrs. 2 hours
B. Additional Services:
CCDD Services by Sub-consultant - Soils borings and analytical testing, as necessary to satisfy form LC-662 or LC663 as necessary- Direct Cost $5000
3. Approvals and Authorizations: Consultant shall prepare and submit a Construction Permit application to the following agency:
Village of Lake in the Hills, Illinois Environmental Protection Agency - Division of Public Water Supplies
4. Commencement Date:
0 The date of execution of this Task Order by Owner.
5. Completion Date:
0 Bidding by January 15,2018
0 End of design contract tasks (technical design support only during construction phase)- February 9, 2017, plus extensions, if any, authorized by a Change Order issued pursuant to Section 2.1 of the Contract.
6. Key Project Personnel:
Names:
Chad J. Pieper, P.E. - HR Green Ryan McDill on- Village of LITH
7. Contract Price:
Telephone:
(815) 482-8706 (24 hr.) (224) 629-9612 (24 hr)
For providing, performing, and completing development of contract documents, an amount equal to Consultant's Direct Labor Costs for all Services rendered by principals and employees engaged directly on the Project, plus an amount equal to the actual costs of all Reimbursable Expenses.
Page 4 of7
Estimated Hours: --
Survey & Data Land Surveyor III 30 Hours Collection
Land Surveyor II 30 Hours
--Design & QA/QC PM 40 Hours
CEI 40 Hours
CAD Technician 70 Hours
Administrative 12 Hours
Meetings PM 4 Hours
Administrative 2 Hours
Project Administration PM 30 Hours & Coordination
Administrative 8 Hours
Estimated Dtrect Costs: $5000.00
Notwithstanding the foregoing, the total Contract Price shall not exceed $40,000.00, which includes labor and reimbursable expenses such as plan copies, except as adjusted by a Change Order issued pursuant to Section 2. I of the Contract.
The total contract price is $40,000.00
8. Payments:
For purposes of payments to Consultant, the value of the Services shall be determined as follows:
Direct Labor Costs shall mean the billing rates assigned to all Consultant personnel as set forth on the list supplied by Consultant attached hereto as Attachment A -I, including all professionals whether owners or employees, engaged directly on the Project.
Reimbursable Expenses shall mean the actual expenses incurred by Consultant directly or indirectly in connection with the Project, including expenses for transportation, telephone, postage, computer time and other highly specialized equipment, reproduction and similar Project related items.
9. Modifications to Contract:
None
Page 5 of7
10. Attachments:
Standard Bill Rates for Task Orders
Approval and Acceptance: Acceptance and approval of this Task Order, including the attachments listed above, shall incorporate this Task Order as part of the Contract.
The Effective Date of this Task Order is _________ , 2017.
VILLAGE OF LAKE IN THE HILLS
By: Russ Ruzanski Village President
HR GREEN, INC.
By:
DESIGNATED REPRESENTATIVE FOR TASK ORDER:
Nan1e: Chad J. Pieper, P.E.
Title: Project ManagerNillage Engineer
Address: 420 N. Front Street, McHenry, IL 60050
E-mail Address: [email protected]
Phone: (815)759-8346, (815)482-8706 (24 hr.) ; Fax: (815)385-1781
J:\2017\l70235\Design\Contract\agt~040617~LITH 2017 WM Contractl70235-task-order.doc
Page 6 of7
ATTACHMENT A-I
Standard Charges for Professional Services (For Billing Rate Task Orders Only)
PRINCIPAL
Akram Chaudhry
SENIOR PROFESSIONAL
Bob Davies
Steve Bicking
Todd Destree
AjayJain
PROFESSIONAL
Chad Pieper- Village Eng.
Jeff Strzalka
Chris Caldarella
Scott Symonds
JUNIOR PROFESSIONAL
SENIOR TECHNICIAN
TECHNICIAN
SENIOR FIELD PERSONNEL
FIELD PERSONNEL
JUNIOR FIELD PERSONNEL
ADMINISTRATIVE COORDINATOR
ADMINISTRA TNE
CORPORATE ADMIN
2017 Rate for all Administrative Stqff
PRINTS/IN HOUSE*
MILEAGE (Personal Vehicle)*
MILEAGE (Survey or Construction vehicle)
PROPERTY IRONS*
HUB/LATH*
MAILING/SHIPPING* *Indicates Reimbursable Items
Page 7 of7
$195 to$ 280.00/HR
$265/HR
$160 to $ 240 .00/HR
$240/HR
$235/HR
$215/HR
$211/HR
$110.00 to $180.00.00/HR
$170/HR
$160/HR
$137/HR
$150/HR
$85.00 to $135.00/HR
$90.00 to$ 125.00/HR
$45.00 to$ 105.00/HR
$100.00 to$ 165.00/HR
$60.00 to $ 145.00/HR
$50.00 to$ 90.00/HR
$85.00 to $140.00/HR
$55.00 to $115.00/HR
$70.00 to $120.00/HR
$90.00/HR
$0.45/SQ FT
$0.54/MILE
$0.85/MlLE
$2.00/EA
$0.75/EA
VARIABLE
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Page 1 of 1
AGENDA ITEM NO: 4.D.2
REQUEST FOR BOARD ACTION
MEETING DATE: August 8, 2017
DEPARTMENT: Public Works
SUBJECT: Progress Payment 1 for the 2017 MFT Road Resurfacing Project
EXECUTIVE SUMMARY
The 2017 MFT Road Resurfacing Project was awarded to Geske and Sons Inc. on June 9, 2016 for
$928,995.70. Geske and Sons Inc. requests Progress Payment 1 in the amount of $106,063.58. The Public
Works Department supports the attached progress payment. Payroll documentation is on file.
FINANCIAL IMPACT
The 2017 budget included $989,800 in the Motor Fuel Tax Fund for this contract. The total requestfor progress payment 1 is $117,848.42. The recommended payment amount is the request amount minus 10% retainage for a total of $106,063.58.
ATTACHMENTS
1. Recommendation Memo2. Pay Request and Lien Waivers
RECOMMENDED MOTION
Motion to approve Progress Payment 1 for $106,063.58 to Geske and Sons Inc. for work completed to
date on the 2017 MFT Road Resurfacing Project.
Lake in the Hills Public Works Department MEMORANDUM
To: Fred Mullard, Director of Public Works
From: Guy Fehrman, Superintendent of Streets
Date: July 31, 2017
Subject: Recommendation of Payment 1-2017 MFT Maintenance (Resurfacing)
MFT Section No. 17-00000-01-GM Various Village Streets
Attached for your review is Pay Request 1 for the above referenced project.
Work was completed in accordance with the contract documents. Contract quantities have been
field measured, and we have agreed with the contractor’s request for Pay Request 1. The bid
amount for this contract was $928,995.70. The first payment amount is recommended at
$106,063.58. Retainage of 10% of the completed contract work has been withheld and is reflected
in Pay Request 1.
I recommend that the Village of Lake in the Hills disburses payment to Geske & Sons Inc. in the
amount of $106,063.58.
VILLAGE OF LAKE IN THE HILLS PUBLIC WORKS DEPARTMENT ACCOUNTABILITY FOR PAY REQUEST AND LIEN WAIVERS
PROJECT: 2017 MFT Resurfacing Project
PURCHASE ORDER #: 129
DATE:
CONTRACTOR AWARD
AMOUNT CERTIFIED PAYROLL
400 E. Terra Cotta Ave. Crystal Lake, IL 60014-3611
AND SONS, INC. ASPHALT PAVING & EXCAVATING
Village In the Hills Altn:Street Superintendent 600 Harvest Gate Lake In the Hills, IL 60156
1. Bituminous Materials (Tack Coat) 2. HMA Surface Course, Mix "C", N50 3. Hot Mix Asphalt Surface Removal, Bull Joint 4. Hot Mix Asphalt Surface Removal, Driveway Butt Joint 5. Hot-Mix Asphalt Surface Removal- 1 3/4" 6. Hot-Mix Asphalt Surface Removal-Variable Depth1"to 3/4" 7. Hot-Mix Asphalt Driveway Removal & Replacement B. Pavement Patching (Partial Depth).· 4 Inch 9, Aggregate Shoulders, Type B 10. Combination concrete Curb and Gutter Rem & Replace 11. P .C.C. Sidewalk Removal and Replacement, 5" 12. Detectable Warnings 13. Drainage & Utility Structures to be Adjusted 14. ThermoplasUc Pavement Markings, Letters and Symbols 15. Thermoplastic Pavement Markings, 4" Line 16. Thermoplastic Pavement Markings, 6" Line 17. ThermoplasHc Pavement Markings, 12"line 18. Thermoplasttc Pavement Markings, 24" line 19. Traffic Control and Protection
Retain age Held - 10%
I ;;2. 9 P.O.#---''-'--'-------- FINAl __ _
2017 Resurfacing Program Sec #17·00000-01-GM Village or LITH MFT Funds Payment Estimate #1
' 8,975.00 1,234.00
8.00 1.35 1.40
19.00 19.00 31.00 26.78
7.50 26.50
240.00 4.12 0.57 0.77 1.55 4.12
12,000.00
1784.84
Acct. #.2uJ. 4 o 100 ,'$D. I G. f~':~ ~ --117 ""'-'v-. <-/d.. Desc. ?-<>71 MEr f!c5vJll;?.'J Acct. # :Z,o.:Z , d.e t 'P· ~~':~ ~ ~I'; 7~ f, Des c.
Work to date on contract Items. Total
www.geskeandsonsinc.com Fax# Payments/Credit
815-459-2465 Balance Due
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
79,887.42 14,496.00 4,505.00
14,180.00 0.00 0.00 0.00 0.00 0.00
4,800.00
-11,784.84
$106,063.58
$0.00
$106,063.58
HRGreen
Estimate No. ~1 -------
Route Various County McHenry
local Agenoy Lake in the Hills
Project 2017 Resurfacing Program
Engineer's Payment Estimate From ...:61=11~17"--------- To 7/6/17
Payable To: Name _G::e,s<.::k.::e_::an~d,.;S"'-!o~n,•----------------------------Address 400 E Terra Cotta Ave, Crystal lake, IL 60014
Items I
Totals carried forward rom ' P' ge
H~ surtace- :ourse. ~r~ 4 ';·2
;•~: ~ ~:.,~~"""~""'tttJ~~~~~-+--" ~ . r.w. 25,940
HMA X to 1 l'i" 47,829 HMA D >vt Rem and 283
1 (Part Depth), 4" 749
Added J n
Val tieS .,.,.~-~-~••···••·· .·_ .• ~F-f. =~Valuei!b="==J o:~~~--~~-~~--+--~s~o~-~--~
. Type B 267
Comb :C&OHema~Re~ ~~~==1~5~~t=====~=======+===J@2~~~~--~==~~====~~~ ~~::~:0 . 5" 1.lli_ 19;1~ ~==--~----:,..;~:.
:Mark. :Mark. ne.
I :Mark. ne 12" . Mark. ne : !4"
raffic and
8, 1.
1 Values ~
'FOR DAY LABOR SECTIONS SHOW ESTIMATED QUANTITIES AND VALUES Pagel of~ Printed on 7/1 t/2017 3:29:39 PM
.40
Total' I Values $ 1 17.848.42.
Project ~· . Total Brought Forward I $117 848421 ·- • Miscellaneous Extras and Credits Values
Total Miscellaneous Exlras and Credits Total Value of Comcleted Work $ 117 848.42
Deduct Relalnage $11 784.84 Balance Due on Comcleted Work $106 063.58
Miscellaneous Debits Values
(~~/ H Total Miscellaneous Debfts J H Net Amount Due $106 063.58 I
Signed: 7/d/-? / Resldori!1:nglneer/Consullant • Dare
Locel Agency
Approved: Local Agency Date
Title
Pagez of~
~ STATEOF!LLINOIS
~ COUNTY OF McHemy
TO WHOM IT MAY CONCERN:
WAIVER OF LIEN TO DATE Gty#
Escrow#
WHEREAS the undersigned has been employed by the Village of Lake in the Hills, 600 Harvest Gate, Lake in the Hills, IL to furnish HMA Mix/Paving and related items for the premises known as 2017 Road Resurfacing Program, Section 17..00000-01-GM, various locations as per contract documents of which the V111age of Lake in the Hills is the owner.
THE undersigned, for and in consideration of One Hundred Six Thousand Sixty Three and 58/I00------------------------($106,063.58) Dollars, and other good and valuable considerations, the receipt whereof is hereby acknowledged, do(es) hereby waive and release any and all lien or claim ot; or right to, lien, under the statutes of the State of lllinois, relating to mechanics' liens, with respect to and on said above-described premises, and the improvements thereon, and on the material, fixtures, apparatus or machinery furnished, and on the moneys, funds or other considerations due or to become due from the owner, on account of all labor, services, material, fixtures, apparatus or machinery, furnished to this date by the undersigned for the above-described premises. INCLUDING EXTRAS. • DATE 7/11/2017 COMPANY NAME Geske an
ADDRESS 400 E. Terra Co SIGNATUREANDTITLE ____ ~IoH<!'¥-"~~~~---.ll.l.l!IL.t:.rJ.UU.®lilL------
•EXTRAS INCLUDE BUT ARE NOT LIMITED TO C ORDERS, BOTH OR.AL AND WRITTEN, TO TiiE CONTRACT
CONIRACTOR'S AFFIDAVIT STATE OF ILLINOIS
COUNTY OF McHenry
TO WHOM IT MAY CONCERN: THE UNDERSIGNED, (NAME) Lany Geske BEING DULY SWORN, DEPOSES
AND SAYS THAT f{E OR SHE IS (POSITION) Vice President OF (COMPANY NAME) Geske and Sons, Inc. WHO lS THE CONTRACTOR FURNISHING HMA Mix/Paving and related items WORK ON THE BUILDING LOCATED AT 2017 Road Resurfacing Program, Section 17-00000-0 1-GM, various locations as per contract documents OWNED BY the Village of Lake in the Hills That·the total amount of the contract including extras• is$ 928,995.70 on which he or she has received payment of $0.00 prior to this payment. That all waivers are true, correct and genuine and delivered unconditionally and that there is no claim either legal or equitable to defeat the validity of said waivers. That the following are the names and addresses of all pa•ties who have furnished marerial or labor, or both, for said work and all parties having contracts or sub contracts for specific portions of said work or for material entering into the construction thereof and the amount due or to become due to each, and that the items mentioned include all labor and material required to complete said work according to plans and specifications:
NAMES AND ADDRESSES WHAT FOR CONTkACfPIUCB AMOUNT THIS BALANCE I'NCLOO EXTRAS• PAID PAYMENT DUB
Geske and Sons Inc 400 E Terra Cotta Ave CL IL Asphalt Paving & 818,788.24 0.00 6,876.87 811 911.37 Geske Asphalt Plant, 4020 NW Hwy. CL, IL Mix Chadwick Contracting, Lake in the Hills, IL Concrete Work 110 207.46 0.00 99,186.71 11,020.75
*All labor is fully paid. • All benefits are fully paid. TOTAL LABOR AND MATERIAL INCLUDING EXTRAS' TO COMPLETE. 928 995.70 0.00 106,063.58 822,932.12
That there are no other contracts for said work outstanding, and d10t there is nothing due or to become due to any person for material, labor or other work of any kind done or to be done upon or in connection w said k other above stated.
DATE 7/11/2017
'EXTRAS INCWDB BUT AilE NOT LIMITED TO CHANGE ORDERS, BOTH ORAL AND WRITIEN, TO THE CONTRACT.
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OFFlCIAL SFAL N~ Pub!lc- S!11tc of IIJinols
My Comutoolon l;):plfl'S Ma M,2011J
fQ\ STATE OF ILLINOIS
~ COUNTY OF MCHENRY
TO WHOM IT MAY CONCERN:
WAIVER OF LIEN TO DATE
WHEREAS the undersigned has been employed by GESKE AND SONS to furnish CONCRETE SITE WORK & ASPHALT PAVING for the premises known as VILLAGE OF LAKE IN THE HILLS 2017 of which VILLAGE OF LAKE IN THE HILLS is the owner.
Gty#
Escrow#
THE undersigned, for and in consideration of NINTY NINE THOUSAND ONE HUNDRED EIGHTY SIX & 71/100 ($99,186.71) Dollars, and other good and valuable considerations, the receipt whereof is hel'eby acknowledged, do(es) hereby waive and release any and all lien or claim of, or right to, lien, under the statutes ofthe State of Illinois, telating to mechanics' liens, with respect to and on said above-dese~ibed premises, and the improvements thereon, and on the material, fixtures, apparatus or machinery furnished, and on the moneys, funds or other considerations due or to become due from the owner, on account of all labor, services, material, fixtures, apparatus or machinery, furnished to this date by the undersigned for the above-described premises, INCLUDING EXTRAS. • DATE 07-10·17 COMPANY CHADWICK CONTRACTING COMPANY
ADDRESS '[r l;lFros)liffCoW't ·Lake in the Hills, 1L 60156
SIGNATUREANDTJTLE_·~~---~_-.. ---------------------------------------------------1
'EXTRAS INCLUDE BUT ARE NOT t: TO CHANGE ORDERS, BOTH ORAL AND WRITTEN, TO THE CONTRACT
CONTRACTOR'S AFFIDAVIT STATE OF ILLINOIS
COUNTY OF MCHENRY
TO WHOM ITMA Y CONCERN: THE UNDERSIGNED, (NAME) R.C. JOHNSON BEING DULY SWORN, DEPOSES
AND SAYS THAT HE OR SHE IS (POSITION) PRESIDENT OF (COMPANY NAME) CHADWICK CONTRACTING COMPANY WHO IS THE CONTRACTOR FURNISHING CONCRETE SITE WORK & ASPHALT PAVING WORK ON THE BUILDING LOCATED AT LAKE IN THE HILLS, IL. 60156 OWNED BY VILLAGE OF LAKE IN THE HILLS That the total amount of the contract including extras* Is $110,207.46 on which he or she has received payment of $0.00 prior to this payment. That all waivers are true, correct and genuine and delivered unconditionally and that there is no claim either legal or equitable to defeat the validity of said waivers. That the following are the names and addresses of all parties who have furnished material or labor, or both, for said work and all parties having contracts or sub contracts for specific portions of said work or for material entering into the construction thereofand the amount due or to become due to each, and that the items mentioned include all labor and material required to complete said work according to plans and specifications:
NAMES AND ADDRESSES WHAT FOR CONTIV.CT I'RIC£ AMOUNT THIS BALANCE INCU>G EXTllAS' PAID PAYMENT DUE
CHADWICK CONTRACTING COMPANY LABOR/EQUIP 110,207.46 0.00 99,186.71 11 020,75
ALL MATERIALS TAKEN FROM OUR OWN FULLY PAID STOCK AND DELIVERED IN OUR OWN TRUCKS. All labor & fiinges paid in full. No outside rental equipment used.
TOTAL LABOR AND MATERIAL INCLUDING EXTRAS' TO COMPLETE 110,207.46 0.00 99,186.71 11,020.75
That there are no other contracts for said work outstanding, and that the 's nothing due or to become due to any person for material, labor or other work of any kind done or to be done upon or in connecll\i'l( \Wit"i h said work od1er than above stated.
I DATE __ J.L:-~ _.,/D,__-_,_11..~.-____ SIGNATURE~"7L~-=--·-----------·-"-._._,.,.-------SUBSCRIBED AND SWORN TO BEFORE ME THIS. __ _,/'-"0~' _'IM _____ ,DA Y OF_-;.F!<'k'~--'-,-i~I.L.J:.. 'EXTRAS INCLUDE BUT ARE NOT LIMITED TO CHANGE ORDERS, BOTH ORAL AND WRITTEN, TO THE CONTRACT,
f.l722 RS/96 Provided by Chicago Title Insurance Company "OFFICIAL SEAL n JUDY MERGI:LE
Notaly Publk:, State at Illinois My Comml$Sion Expires 02/00121J
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AGENDA ITEM NO: 4.D.3
REQUEST FOR BOARD ACTION
MEETING DATE: August 8, 2017
DEPARTMENT: Public Works
SUBJECT: Airport Ground Lease for Hangar PAP-33
EXECUTIVE SUMMARY
The Lake in the Hills Airport Rules and Regulations require airport tenants to enter into applicable leases, licenses, or storage agreements. Alain Sassine of Cary is requesting a new ground lease on Hangar PAP-33 that is available. This lease is for the period of August 11, 2017 – August 11, 2037. The lease includes an option to renew for four additional five-year terms.
Mr. Sassine has signed the appropriate lease form and submitted acceptable proof of insurance. Since Mr. Sassine held previous leases in both the T-hangars and PAP-43, no background check was performed.
FINANCIAL IMPACT
The Airport Operating and Maintenance Fund will receive $2,346.36 annually from the ground lease and another $216 from electrical fees, subject to annual increases approved by ordinance.
ATTACHMENTS
1. Proposed Ordinance2. PAP-33 Ground Lease
RECOMMENDED MOTION
Approve the ordinance and authorize the Village President and Village Clerk to sign the ground lease for Hangar PAP-33 with Alain Sassine.
VILLAGE OF LAKE IN THE HILLS
ORDINANCE NO. 2017-______
An Ordinance Authorizing the Approval of a Ground Lease
between the Village of Lake in the Hills and Alain Sassine
for PAP-33
WHEREAS, the Village of Lake in the Hills, 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 Village's
home rule powers and functions as granted in the
Constitution of the State of Illinois.
NOW, THEREFORE, BE IT ORDAINED by the President and
Board of Trustees of the Village of Lake in the Hills,
McHenry County, Illinois, as follows:
SECTION 1: That the President is hereby authorized to
enter into a Ground Lease between the Village and Alain
Sassine for PAP-33 at the Lake in the Hills Airport:
SECTION 2: If any section, paragraph, subdivision,
clause, sentence or provision of this Ordinance shall be
adjudged by any Court of competent jurisdiction to be
invalid, such judgment shall not affect, impair, invalidate
or nullify the remainder thereof, which remainder shall
remain and continue in full force and effect.
SECTION 3: All ordinances or parts of ordinances
in conflict herewith are hereby repealed to the extent of
such conflict.
SECTION 4: This Ordinance shall be in full force
and effect upon its passage, approval and publication in
pamphlet form (which publication is hereby authorized) as
provided by law.
Passed this 10th day of August, 2017 by roll call vote
as follows:
Ayes Nays Absent Abstain
Trustee Stephen Harlfinger _ _____
Trustee Ray Bogdanowski _ _____
Trustee Bob Huckins ____ _____ _____ _____
Trustee David McPhee ____ _____ _____ _____
Trustee Bill Dustin _ _ _____
Trustee Suzanne Artinghelli_ _ _____
President Russ Ruzanski _ _ _____
APPROVED THIS 10TH DAY OF AUGUST, 2017
__________________________________
Village President, Russ Ruzanski
(SEAL)
ATTEST: ______ _____
Village Clerk, Crystal Ulen
Published: ________________________________
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VILLAGE OF LAKE IN THE HILLS
LAKE IN THE HILLS AIRPORT GROUND LEASE
THIS GROUND LEASE (this “Lease”) made and entered into at Lake in the Hills, Illinois, this tenth day August, 2017 by and between the Village of Lake in the Hills, an Illinois municipal corporation (the “Lessor”) and Alain Sassine (the “Lessee”).
W I T N E S S E T H:
WHEREAS, the Lessor does hereby let and lease to the Lessee the parcel of property
depicted on Exhibit A attached to and by this reference incorporated into this Lease at the Lake
in the Hills Airport (the “Airport”), which parcel of property is commonly known as:
PAP-33
Lot dimensions: Size B, 42’3” x 18’ by 16’5” x 20’7”admin
(The “Premises”).
ARTICLE 1: TERM; RENEWAL
1.01 This Lease shall commence on August 11, 2017 and shall continue for a period of
20 years and shall terminate August 11, 2037 (the “Initial Term”) unless sooner terminated as
hereinafter provided.
1.02 The Lessee shall have the option to renew this Lease for four (4) additional terms
of five years (the “Extension Terms”), which Extension Terms shall
commence on the day immediately following the last day of the then
existing Term, provided (i) that the Lessee notifies the Lessor in writing
(the “Extension Notice”) at least 60 days prior to the expiration of the
existing Term that the Lessee intends to renew this Lease for one of the
Extension Terms; (ii) that the Lessee is not in default of any obligation
or duty imposed upon it by this Lease; and (iii) that the Lessor may
increase, modify, or otherwise alter, for the Extension Terms, the
amount of rent paid by the Lessee. The Lessor shall notify the Lessee in
writing of any rent increase (the “Rental Increase Notice”) within 30
days of receipt of the Extension Notice. In the event the Lessee
determines that the rental increase is unreasonable, the Lessee shall have
10 days after Lessor’s delivery of the Rental Increase Notice to elect to
terminate this Lease. In the event the Lessee elects to terminate this
Lease pursuant to the terms of this Article 1.02, then the Lessee shall
provide the Lessor with written notice (the “Termination Notice”) of its
intention to do so no later than 10 days after the Lessor’s delivery of the
Rental Increase Notice. In the event the Lessor does not receive the
Termination Notice within the 10-day period of time, it shall be
conclusively presumed that the Lessee has elected not to terminate this
Lease
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ARTICLE 2: USE
2.01 The Premises shall be used, occupied, and maintained by the Lessee for the sole
purpose of supporting an Aircraft Hangar/Storage facility (the “Hangar”) for aircraft owned or
leased by the Lessee and for lease for storage of other aircraft, and uses reasonably incidental
thereto, and for no other purpose (the “Approved Uses”).
2.02 The Lessee shall not conduct any business activities or aviation-related activities
other than the Approved Uses, unless the Lessee shall also have a separate and valid commercial
activity agreement with the Lessor. The Lessee shall comply with (a) all applicable
governmental laws, ordinances, codes, rules, and regulations and applicable orders and directions
of public officers thereunder and (b) all requirements of carriers of insurance on the Premises
respecting all matters of occupancy, condition, maintenance, and use of the Premises, whether
any of the foregoing shall be directed to the Lessee or the Lessor, including but not limited to
any environmental laws or regulations by any local, state, or federal government and the Airport
rules and regulations.
2.03 The Lessee agrees to occupy the entire Premises and to properly maintain and
operate the Approved Uses at all times during the term(s) of this Lease.
2.04 The Lessee shall be entitled to the non-exclusive use, in common with other
users, of the public facilities of the Airport solely for the purpose of ingress and egress to and
from the Premises. The Lessee shall not use the public areas for the transient or permanent tie-
down of aircraft or for any purposes other that as expressly permitted by this Lease.
2.05 The Lessee shall, at the Lessee’s own expense, comply with all present and
hereinafter enacted environmental laws, including but not limited to the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq., the
Resource Conservation and Recovery Act, 42 U.S.C. Section 6941 et seq., Toxic Substances
Control Act, 15 U.S.C. Section 2601 et seq., Safe Drinking Water Act, 42 U.S.C. Section 300 et
seq., the Clean Air Act, 42 U.S.C. Section 7401 et seq., and the regulations promulgated
thereunder and any other laws, regulations, and ordinances (whether enacted by the local, state or
federal governments) now in effect or hereinafter enacted, that deal with the regulation or
protection of the environment and hazardous materials. The Lessee shall not cause or permit any
hazardous material to be used, generated, manufactured, produced, or stored on, under, or about
the Premises. The Lessee shall not keep on the Premises any inflammables, such as gasoline,
kerosene, naphtha, or benzine or other volatile chemicals or compounds or explosives or any
other articles of intrinsically dangerous nature, except such materials and equipment commonly
related to airplane maintenance. The Lessee further shall indemnify, defend, and hold harmless
the Lessor from and against any and all liability, loss, damage, expense, penalties, and legal and
investigation fees or costs arising from or related to any claim or action for injury or liability
brought by any person, entity or governmental body, alleging or arising in connection with
contamination of, or adverse effects on, the environment of the Premises.
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ARTICLE 3: RENT
3.01 The amount of rent payable to the Lessor (the “Rent”) is set forth on the rent
schedule (“the Rent Schedule”) attached to and by this reference incorporated into this Lease as
Exhibit B. The Rent, during the Initial Term and any Extension Term, is subject to an increased
adjustment by the Lessor on an annual basis based on the following: the current year’s Rent
multiplied by the Consumer Price Index (the “CPI”) for the Chicago Metropolitan Area, up to a
maximum 10 percent increase over the current year’s rent. The CPI to be used for the preceding
calculation shall be the CPI available for the most recent 12 month period. The first month’s
Rent shall be paid upon the execution of this Lease and each month’s Rent thereafter shall be
paid in advance on or before the first day of a calendar month during the term(s) of this Lease.
Rent for any partial calendar month within the Term shall be prorated on a per diem basis
assuming a 30-day month.
3.02 The Lessee agrees to pay all rent and any other amount owing hereunder on the
due date thereof to the Lessor at its office at 600 Harvest Gate, Lake in the Hills, Illinois, or to
such other person at such other address as the Lessor may from time to time designate in writing.
The Lessee hereby agrees that the Lessee’s obligation to pay such rent and other amounts shall
be absolute and unconditional under all circumstances, including, without limitation, the
following circumstances: (a) any setoff counter-claim, recoupment, defense, or other right that
the Lessee may have against the Lessor, or anyone else for any reason whatsoever; (b) any
damage to, loss, or destruction of the Premises or any interruption or cessation in the use or
possession thereof by the Lessee for any reason whatsoever, unless directly caused by the
negligent acts of Lessor; (c) any insolvency, bankruptcy, reorganization, or similar proceedings
by or against the Lessee; and (d) any other event or circumstance whatsoever, whether or not
similar to any of the foregoing. To the extent permitted by applicable law, the Lessee hereby
waives any and all rights which it may now have or which at any time hereafter may be
conferred upon it, by statutes or otherwise, to terminate, cancel, quit, or surrender any portion of
the Premises hereunder except in accordance with the expressed terms hereof. If for any reason
whatsoever this Lease shall be terminated in whole or in part by operation of law or otherwise,
except in the event of termination without the fault of Lessee or termination upon change of
ownership in accordance with Article 12 of this Lease, or dis-affirmed by the Lessee, all
remaining rent payments which would have become due and payable in accordance with the
terms hereof had this Lease not been terminated or dis-affirmed in whole or part shall become
immediately due and payable. Each rent or any other payment made by the Lessee hereunder
shall be final and the Lessee shall not seek to recover all or any part of such payment from the
Lessor for any reason whatsoever.
3.03 The Lessee shall also pay the Lessor a late charge upon payment of Rent after the
tenth day of any month in the amount of 10 percent of the amount owed. Payment of a late
charge to the Lessor shall in no way interfere with the Lessee’s obligation to pay Rent on the first
day of each month. Payment by the Lessee of a late charge shall not be deemed a waiver of or
otherwise limit the Lessor’s remedies under this Lease.
ARTICLE 4: LESSOR’S RIGHT TO RELOCATE LESSEE
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4.01 The Lessee acknowledges that at any time during the term(s) of this Lease, the
Lessor may need to relocate the Hangar to another comparable location at the Airport (the
“Relocation”). In the event the Lessor determines in its sole and absolute discretion that
Relocation is necessary, the Lessor shall provide the Lessee with 30 days written notice of its
intention to relocate. The Hangar will be relocated to another location that, in the sole discretion
of the Lessor, is comparable to the Premises, and the definition of the “Premises” shall be revised
to reflect the new location. The Lessor will pay for the following costs of Relocation:
preparation of the new site, relocation of the Hangar and hangar facilities onto the new site, and
all costs directly associated with the Relocation. The Lessee shall have no right to
reimbursement from the Lessor for any costs incurred by the Lessee as a result of the Relocation,
except for reasonable costs incurred by the Lessee as a result of Lessor’s Relocation actions.
4.02 The Lessor shall not be responsible for theft, loss, injury, damage, or destruction
of the Hangar or of any aircraft or other property on the Premises during the Relocation. The
Lessee hereby releases and discharges the Lessor for the loss of or damage to the Lessee’s
property, except for that loss or damage arising out of the Lessor’s negligence during the
Relocation.
ARTICLE 5: CONDITION OF PREMISES; REPAIR
5.01 The Lessee has inspected the Premises and accepts the Premises in an “as is”
condition. The Lessee acknowledges that its decision to enter into this Lease was based on its
own knowledge and analysis and not on any representations by the Lessor, and the Lessee
waives any and all claims against the Lessor in connections therewith. At the termination of this
Lease, the Lessee shall, at Lessee’s sole expense, remove the Hangar, including any foundation,
and restore the Premises to a natural state, including grading and grass seeding.
5.02 The Lessee agrees, at its sole cost and expense, to repair, replace, or reconstruct
the Hangar and other improvements located on the Premises that are damaged or destroyed by
fire or other casualty, or required to be repaired, removed, or reconstructed by any governmental
or military authority. Such repair, replacement, or reconstruction shall be accomplished within
such time as may be reasonable under the circumstances after allowing for delays caused by
strikes, lockouts, acts of God, fire, extraordinary weather conditions, or any other cause or
casualty beyond the reasonable control of Lessee (the “Reasonable Time Period”). The design
and specifications of such repair, replacement, or reconstruction shall be as determined by
Lessee; but such work shall restore the Premises to not less than its condition prior to said need
for repair.
ARTICLE 6: COVENANTS
The Lessee agrees to all of the following covenants:
(a) The Lessee shall not commit, suffer, or allow to be committed or suffered any acts
of waste on the Premises, or commit or permit to be committed any acts which will in any way
constitute a public or private nuisance or an unlawful or immoral act. Only the Approved Uses
shall be permitted.
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(b) All maintenance to the Hangar or other improvements or any repair of damages to
same from any cause shall be the sole responsibility of the Lessee and shall be made in the
Reasonable Time Period and at the Lessee’s expense (unless such damage was caused by the
negligence of the Lessor) and same shall comply fully with all applicable laws, ordinances, and
other government regulations, codes, and directions.
(c) The Lessee shall not erect or install any sign of any kind anywhere in or on the
Premises without the specific prior written consent of the Lessor. In addition, the Lessee shall
not use any broadcast or audio advertising media, including but not limited to loudspeakers,
phonographs, or radio or television broadcasts, in a manner visible or audible outside of the
Hangar.
(d) The Lessee shall not install any exterior lighting or plumbing fixtures, shades, or
awnings or exterior decoration or paintings or build any enclosures or audio or television
antenna, loudspeakers, sound amplifiers, or similar devices on the roof or exterior walls of the
Hangar without the specific prior written consent of the Lessor.
(e) The Lessee shall store all trash and garbage within proper receptacles in the
Hangar and around the Premises. The Lessee shall not burn any trash or garbage of any kind in
or about the Premises.
ARTICLE 7: REMEDIES
7.01 In the event of any default by the Lessee with respect to any of the events below
and the Lessee’s failure to cure said default within 10 days after written notice thereof by the
Lessor, the Lessor may immediately terminate this Lease and/or the Lessee’s right to possession
hereunder, and pursue any other remedy available to the Lessor at law or in equity and including,
without limitation, those remedies set forth at the end of this Article, upon the happening of one
or more of the following events:
(a) The making by the Lessee of an assignment for the benefit of the creditors
without
the written consent of the Village Administrator;
(b) The operation or supervision of any business other than the Approved Uses
conducted in the Premises by the Lessee, or by anyone else, except only with the
prior specific written consent of the Lessor;
(c) The levying of a writ of execution or attachment on or against the property of the
Lessee;
(d) The doing, or permitting to be done, by the Lessee of any act which creates a
mechanic’s lien or claim therefor against the Premises or any part of the Premises;
(e) The failure of the Lessee to pay any Rent when due, which shall not be in lieu of
any statutorily prescribed remedies for the Lessee’s failure to pay Rent but shall
be in addition thereto;
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(f) If the estate created hereby shall be taken in execution or by other process of law
or if proceedings are instituted in a court of competent jurisdiction for the
reorganization, liquidation, or voluntary or involuntary dissolution of the Lessee
or composition for the benefit of a creditor or for its adjudication as a bankrupt or
insolvent, or for the appointment of a receiver of the property of the Lessee for
any purpose and said proceedings are not dismissed, and any receiver, trustee, or
liquidator appointed therein discharged within 10 days after the institution of said
proceedings;
(g) Any failure of the Lessee to keep and perform fully any of its covenants under
this
Lease;
(h) The abandonment of the Premises by the Lessee or the discontinuance by the
Lessee of the proper maintenance and operation of the Approved Uses for a
consecutive period of three months or longer;
(i) If the Lessee is a corporation, the sale of any of the Lessee’s stock pledged for
any purpose, whether by virtue of execution or otherwise.
7.02 Upon the event of a default hereunder by the Lessee, the Lessor shall have the
right to cure the default, at its option, by any means reasonably necessary. In such event, the
Lessee shall reimburse the Lessor for all reasonable costs incurred by the Lessor in curing the
default.
7.03 Upon the termination of this Lease or the Lessee’s right to possession hereunder,
the Lessor may re-enter the Premises using such force as may be necessary and in compliance
with applicable law and remove all persons, fixtures, property and equipment therefrom and the
Lessor shall not be liable for damages or otherwise by reason of re-entry or termination of
possession of the term of this Lease. Upon termination of either the Lessee’s right to possession
or the Lease, the Lessor shall be entitled to recover immediately an amount equal to the
minimum rent for the balance of the term less the amount of any minimum rental obtained from
any other lessee for the balance of the term in the event the said premises are re-let. Upon and
after entry into possession without termination of this Lease, the Lessor may, but need not, re-let
the Premises or any part thereof for the account of the Lessee for such rent, for such time and
upon such terms as the Lessor in its sole discretion shall determine.
ARTICLE 8: TAXES
The Premises is owned by the Lessor and is currently tax-exempt. Therefore, in the
event the Lessee’s operations on the Premises cause a tax to be assessed against, levied upon, or
otherwise become payable in respect of the Premises or the use thereof, the Lessee shall pay all
taxes relating to the Premises or to this Lease, including all real estate taxes, personal property
taxes and leasehold taxes, unforeseen as well as foreseen, that are assessed against, levied upon
and become payable in respect of the Premises or the use thereof during the term(s) of this
Lease; provided, however, that in the event such taxes are imposed as a result of Lessor’s actions
under the Lease, then the Lessee shall not be responsible for said taxes. Such payment of taxes
by Lessee shall be in addition to the payment of Rent.
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ARTICLE 9: INSURANCE; INDEMNIFICATION
9.01 The Lessee shall, at Lessee’s sole cost, during the entire term hereof, keep in full
force and effect a policy of airport liability and property damage insurance with respect to the
Hangar and the Premises or any other occupant of the Premises, in which the limits of public
liability shall not be less that $1 million per occurrence. The policy shall name the Lessor and its
trustees, officers, employees, attorneys, legal representatives, and agents as additional insureds
and shall contain a clause that the insurer will not cancel or change the insurance without first
giving the Lessor 30 days prior written notice thereof. The insurance shall be with companies
licensed to do business in the State of Illinois. The insurance shall be in a form reasonably
acceptable to the Lessor and a copy of the policy and a certificate of insurance shall be delivered
to the Lessor prior to the commencement hereof. In the event the Lessee shall fail to procure
said insurance, the Lessor may, but shall be under no obligation to, procure such insurance in
which event the Lessee agrees to pay to the Lessor, as additional rent, the amount of premium
therefore on the first day of the month following the month in which the Lessor notifies the
Lessee of the amount of premium due hereunder.
9.02 The Lessee, shall at the Lessee’s sole cost, during the entire term hereof, keep in
full force and effect a policy for fire and property damage insurance with respect to the Hangar
and all other Lessee property contained on the Premises, as well as all other improvements on the
Premises, in such amount and form, and with such companies, as the Lessor may reasonably
determine. The Lessee shall, from time to time, as requested by the Lessor, deliver certificates of
such insurance verifying coverage to the Lessor.
9.03 Except only to the extent otherwise prohibited by law, the Lessee covenants and
agrees to indemnify and hold harmless the Lessor and its trustees, officers, employees, attorneys,
legal representatives, and agents from any and all losses, claims, damages, costs, or expenses,
including attorneys fees, the Lessor may be required to pay as a result of acts and/or omissions of
the Lessee or any agent of the Lessee.
ARTICLE 10: SUBORDINATION
The parties to this Lease desire that this Lease be prior in lien to all other documents,
including mortgages, trust deeds, or other encumbrances that may hereafter be recorded against
the Premises. Lessee agrees to subordinate any mortgage, trust deed, or other encumbrance that
may hereafter be placed on the Premises, or to any advances to be made thereunder and to
interest thereon and all renewals, replacements, and extensions thereof, to this Lease; and the
Lessee agrees to execute any instrument or instruments which the Lessor may reasonably, at the
Lessor’s sole and complete discretion, require to effect such subordination, provided that the
Lessee and its successors and assigns shall have the right to freely, peaceably, and quietly
occupy and enjoy the full possession and use of said premises as long as the Lessee shall not be
in default under this Lease, and subject to the Lessor’s right to relocate the Lessee as set forth in
Article 4 of this Lease. In the event of any mortgagee, trustee, or encumbrancer notifying the
Lessee to that effect, this Lease shall be deemed prior in lien to said mortgage, trust deed, or
encumbrance whether or not this Lease is dated prior to or subsequent to the date of said
mortgage, trust deed, or encumbrance.
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ARTICLE 11: IMPROVEMENTS; MECHANIC’S LIENS
11.01 This Section 11.01 is applicable if the Premises are unimproved as of the
effective date of this Lease. During the term of this Lease, unless this Lease shall be sooner
terminated in accordance with the terms hereof; the Lessee, at it sole cost and expense, shall
construct or place on the Premises the Hangar and related improvements in accordance with the
Lessee’s plans and specifications as set forth in Exhibit C attached to and by this reference
incorporated into this Lease (the “Plans”). The Hangar and related improvements shall be
constructed in accordance with all applicable federal, state and local laws, codes, ordinances, and
regulations and shall have the specific prior written approval of the Lessor.
11.02 All repairs, construction, modifications, alterations, or changes made by the
Lessee to the Premises shall be done or contracted for only with the Lessor’s specific prior
written consent, which the Lessor may withhold for any reason that the Lessor deems sufficient.
Notwithstanding anything to the contrary herein, no alterations to the Premises are allowed
during the term(s) of this Lease except for the construction of the Hangar and related
improvements. Any of the foregoing that the Lessee undertakes shall be done at the Lessee’s
sole cost and expense and none of the foregoing nor any other act shall be allowed or suffered
which may create any mechanic’s lien or claim for lien against the Premises. In the event any
lien or claim for lien upon the Lessor’s title or the Premises results from any act or neglect of the
Lessee, and the Lessee fails to remove said lien or dismiss such claim for lien within 10 days
after the Lessors notice to do so, the Lessor may, but need not, remove the lien or satisfy such
claim for lien by paying the full amount thereof without any investigation or contest of the
validity or amount thereof and the Lessee shall pay the Lessor promptly upon demand, and as
additional rent, the amount paid out by the Lessor, including the Lessor’s costs, expenses, and
counsel fees.
ARTICLE 12: ASSIGNMENT OR SUBLETTING
The Lessee agrees not to assign, encumber, or in any manner transfer this Lease or any
interest hereunder and not to permit the use or occupancy of the Premises, whether by license,
concession or otherwise by anyone other than the Lessee without the specific prior written
consent of the Lessor (which consent shall not be unreasonably denied); provided, however, that
the Lessee may sublet the Premises for the remainder of the then existing Term with the prior
written consent of the Lessor (which consent shall not be unreasonably denied) and subject to the
terms of this Lease. Any assignment or subletting permitted hereunder shall not be deemed to
relieve the Lessee of its obligation to pay rental and perform its other obligations hereunder.
Consent by the Lessor of one assignment or one subletting or one use or occupancy of the
Premises shall not constitute a waiver of the Lessor’s rights under this Article as to any
subsequent assignments, subletting, or use or occupancy. If the Lessee is a corporation or
partnership, and if, during the term of this Lease, the ownership of the shares of stock or
partnership interests which constitute control of the Lessee changes by reason of sale, gift, death,
or otherwise, the Lessee shall provide the Lessor with written notice and confirmation of the new
owner’s intent to be bound by the terms of the Lease, along with evidence of the new owner’s
financial information to insure that the new owner is capable of performing the obligations set
forth in this Lease. In the event the Lessor concludes, in the exercise of its discretion, that the
new owner is not capable of performing the obligations under this Lease, the Lessor may at any
time thereafter terminate this Lease by giving the Lessee written notice of such termination at
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least 30 days prior to the date of termination stated in the notice. Receipt of rent after such
change of control shall not affect the Lessor’s rights under the preceding sentence.
ARTICLE 13: UNTENANTABILITY
In the event that the Hangar shall be destroyed or so damaged by fire, explosion,
windstorm, or other casualty as to be untenantable, the Lessee shall within the Reasonable Time
Period secure the Hangar and restore it in accordance with the terms of this Lease and rents due
hereunder shall not be abated.
ARTICLE 14: SURRENDER OF PREMISES; HOLD OVER
14.01 At the expiration of the tenancy hereby created, whether by lapse of time or
otherwise, or upon termination of the Lessee’s right of possession, the Lessee shall immediately
surrender possession of the Premises to the Lessor in good condition, and shall remove the
Hangar and all other improvements therefrom. If such possession is not immediately
surrendered, then the Lessor may immediately enter the Premises and possess itself thereof and
remove all persons and effects therefrom using such force as may be necessary and in
compliance with applicable law. If the Lessee shall fail or refuse to remove all of the Lessee’s
property from the Premises, then the Lessee shall be conclusively presumed to have abandoned
the same, and title thereto shall thereupon pass to the Lessor without any cost either by set-off;
credit, allowance, or otherwise, and the Lessor may at its option accept title to such property, or
at the Lessee’s expense may remove the same or any part thereof in any manner that the Lessor
shall choose and store the same without incurring liability to the Lessee or any other person.
14.02 It is agreed and understood that any holding over by the Lessee of the
Premises at the expiration or cancellation of this Lease shall operate and be construed as a
tenancy from month to month at a rental of three times the current monthly rental, and in
addition the Lessee shall be liable to the Lessor for all loss or damage on account of any holding
over against the Lessor’s will after the expiration or cancellation of this Lease, whether such loss
or damage may be contemplated at this time or not. No receipt or acceptance of money by the
Lessor from the Lessee after the expiration or cancellation of this Lease or after the service of
any notice, after the commencement of any suit, or after any judgment for possession of the
Premises, shall reinstate, continue or extend the terms of this Lease, or affect any such notice,
demand, or suit or imply consent for any action for which the Lessor’s consent is required or
operate as a waiver of any right of the Lessor to retake and resume possession of the Premises
and remove the structures.
ARTICLE 15: COSTS AND FEES
The Lessee shall pay upon demand all of the Lessor’s costs, charges, and expenses,
including fees of attorneys, agents, and others retained by the Lessor, incurred in enforcing any
of the obligations of Lessee under this Lease or in any litigation, negotiation, or transaction in
which the Lessor shall, without the Lessor’s fault, become involved through or on account of this
Lease. In the event it becomes necessary for either party hereto to file suit to enforce this Lease
or any provision contained herein, the prevailing party in such suit shall be entitled to recover, in
addition to all other remedies or damages provided for in this Lease, reasonable attorneys’ fees
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and costs incurred in such suit at trial or on appeal or in connection with any bankruptcy or
similar proceeding.
ARTICLE 16: SUCCESSORS AND ASSIGNS
The terms, covenants, and conditions hereof shall be binding upon, apply and inure to the
benefit of the heirs, executors, administrators, successors in interest and assigns of; the parties
hereto. No rights, however, shall inure to the benefit of any assignee or sub-lessee of the Lessee
except only if such assignment or sublease has been specifically consented to by the Lessor in
writing as provided herein.
ARTICLE 17: REMEDIES CUMULATIVE
All rights and remedies of the Lessor enumerated in this Lease shall be cumulative and
none shall exclude any other right or remedy allowed by law, and said rights and remedies may
be exercised and enforced concurrently as often as occasion therefor arises.
ARTICLE 18: ESTOPPEL CERTIFICATE
Each party agrees at any time and from time to time, upon not less than 20 days prior
written request by the other, to execute, acknowledge, and deliver to the other a statement in
writing certifying that this Lease is unmodified and in full force and effect and the date to which
the rental and other charges have been paid in advance, if any, it being intended that any such
statement delivered pursuant to this paragraph may be relied upon by any prospective purchaser
of this leasehold or the fee, or mortgagee or assignee of any mortgage upon this leasehold or the
fee of the Premises.
ARTICLE 19: MISCELLANEOUS
19.01 The necessary grammatical changes required to make the provisions of this Lease
apply to the past, present, and future and in the plural sense where appropriate and to
corporations, associations, partnerships, or individuals, male or female, shall in all instances be
assumed as though in each case fully expressed.
19.02 The laws of, but not the conflicts of law rules of, the State of Illinois shall
govern the validity, performance, and enforcement of this Lease.
19.03 The headings of several articles contained herein are for convenience only and do
not limit or construe the contents of the articles.
19.04 All of the covenants of this Lease are independent covenants. If any provisions of
this Lease are found by a court of competent jurisdiction to be illegal, invalid, or unenforceable,
then the remainder of the Lease will not be affected, and in lieu of each provision which is found
to be illegal, invalid, or unenforceable, there will be added as part of this Lease a provision as
similar to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid,
and enforceable.
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19.05 Notwithstanding any other provision to the contrary herein, either Lessor or Lessee
may, in its sole discretion, terminate this Lease upon 30 day’s written notice to
the other party.
ARTICLE 20: NOTICES
Any notices required or desired to be given under this Lease shall be in writing and (i)
personally served, (ii) given by certified mail, return receipt requested, (iii) given by overnight
express delivery, or (iv) given by facsimile transmission, with any such facsimile transmission
confirmed by next business day overnight express delivery. Any notice shall be addressed to the
party to receive it at the following address or at such other address as the party may from time to
time direct in writing:
To the Lessee at:
and to the Lessor at:
Alain Sassine 6407 Kings bridge Drive Cary, IL 60017
Village of Lake in the Hills 600 Harvest Gate Lake in the Hills, Illinois 60156 Attention: Village Administrator
with a copy to: Village of Lake in the Hills 600 Harvest Gate Lake in the Hills, Illinois 60 I 56 Attention: Airport Manager
Revised March 20 I 2
Express Delivery notices shall be deemed to be given upon receipt. Postal notices shall be deemed to be given three days after deposit with the United States Postal Service. Facsimile notices shall be deemed given upon the date of transmission, provided that compliance is made with the remaining obligations of this Article 20.
ARTICLE 21: PRIOR AGREEMENTS
This Lease replaces and supersedes any other written or oral prior agreement, arrangement, or understanding between the Lessee and the Lessor or its agent, which prior agreement(s) shall be considered null and void and of no further effect whatsoever as of the date hereof.
IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year above.
LESSOR VILLAGE OF LAKE IN THE HILLS
By: Village President
Attest:------------------Village Clerk
[LESSEE] Alainp9sine --By: .. rp--Title:
Attest: ___ _
By:
Title:
12
Lake in the Hills Airport Ground Lease
EXHIBIT A
Premises
EXHIBIT C
Plans
Not applicable.
AGENDA ITEM NO: 4.E.1
REQUEST FOR BOARD ACTION
MEETING DATE: August 8, 2017
DEPARTMENT: Parks and Recreation
SUBJECT: Waiver of Section 43.09, Noise, of the Lake in the Hills Municipal Code and Section 16, Signs, of the Zoning Ordinance for the Summer Sunset Festival.
EXECUTIVE SUMMARY
The Parks and Recreation Department is requesting the Village Board waive the provisions of Section 43.09 of the Municipal Code to allow for announcements and music to be played until 11:00 pm on September 1-3, 2017. Granting of this waiver will allow announcements to be made and band music to be played via the sound system at the Summer Sunset Festival at Sunset Park. The Department further requests enforcement activities be suspended to allow the erection of temporary signage in the right-of-way at the following intersections:
Algonquin and Randall Rd. Acorn and Randall Rd. Miller and Randall Rd. Miller and Lakewood Miller and Frank Rd. Algonquin and Lakewood Square Barn and Algonquin Rd. (Northwest corner) Pyott and Rakow Rd. Pyott and Algonquin Rd. Pyott and Oak St. Crystal Lake and Algonquin Rd.
FINANCIAL IMPACT
None.
ATTACHMENTS
None.
RECOMMENDED MOTION
Motion to grant a waiver to Section 43.09, Noise, of the Municipal Code to allow announcements and to play music until 11:00 pm on Friday, September 1, Saturday, September 2, and Sunday, September 3, 2017 and to suspend enforcement activities from August 21, 2017 until September 5, 2017 to allow the installation of temporary signage at the intersections referenced above.
AGENDA ITEM NO: 4.E.2
REQUEST FOR BOARD ACTION
MEETING DATE: August 8, 2017
DEPARTMENT: Parks and Recreation
SUBJECT: Issuance of a Pyrotechnic Fireworks License to Melrose Pyrotechnics, Inc. for the Summer Sunset Festival
EXECUTIVE SUMMARY
The Parks and Recreation Department is requesting the Village Board issue a pyrotechnic fireworks license to Melrose Pyrotechnics, Inc. for the Summer Sunset Festival on Sunday, September 3, 2017. Staff contacted Mad Bomber, Five Alarm Fireworks, Johnny Rockets, Central States, and Melrose Pyrotechnics requesting quotes. Mad Bomber, Five Alarm Fireworks, and Melrose Pyrotechnics all responded with quotes totaling $12,000.00. Johnny Rockets and Central States did not respond. The Department forwarded the quotes and fireworks display proposals to the Summer Sunset Festival Committee for their review. The Summer Sunset Festival Committee selected Melrose Pyrotechnics based upon the proposed design components, special effects, types of shells, and references.
FINANCIAL IMPACT
The FY17 funds available for the fireworks display at Summer Sunset Festival is $12,000.00. Proposed expenditure total is $12,000.00.
ATTACHMENTS
1. Application for License for Public Displays of Fireworks, Pyrotechnics or Other Explosives
RECOMMENDED MOTION
Motion to issue a pyrotechnic fireworks license to Melrose Pyrotechnics, Inc. for the Summer Sunset Festival on Sunday, September 3, 2017.
VILLAGE OF LAKE IN THE HILLS APPLICATION FOR LICENSE FOR PUBLIC DISPLAYS OF FIREWORKS,
PYROTECHNICS OR OTHER EXPLOSIVES
Attached to this Application is a full copy of Chapter 43, Section 43.06 of the Lake in the Hills Municipal Code. Please review this to ensure that your application meets all criteria.
Applicant: Submit tills application and the following additional items to the Village Clerk's Office, Village ofLake in the Hills, 600 Harvest Gate, Lake in the Hills, Illinois 60156; Phone (847) 960-7410. Application must be submitted to the Village Clerk with supporting documentation at least fifteen (15) business days in advance of the proposed date of the display. Once the application has been approved, the Village will forward you a copy which will serve as evidence of your permit. Tills copy must be made available upon request during the Public Display.
I. A current BATFE license for distribution to display fireworks.
2. A copy of the Pyrotechnic license issued by the State of Illinois and a list of Pyrotechnic licenses issued to the Applicant by other states.
3. Proof of insurance coverage for General Liability of $1,000,000 per occurrence with a $2,000,000 aggregate and an additional $1,000,000 excess umbrella policy, Worker's Compensation with statutory levels and employer' s liability of $500,000 per occurrence. All Certificates of Insurance must have the Village of Lake in the Hills listed as an additional insured.
4. Proof of a current United States Department of Transportation (USDOT) Identification Number and Hazardous Materials Registration Number.
5. Proof that the applicant is eighteen years of age.
6. Application fee in the amount of$250.00.
7. Proof of approval of such proposed display by the Chief of the Fire Protection District that has jurisdiction where the display will be conducted.
8. Depiction of the site where the proposed pyrotechnic display will be conducted drawn to scale
Applicant Name: Les Mayhew ----~~------------------------------~~~~~------------
Company Name: Melrose Pyrotechnics Inc. FEIN: 35-1819463 Address: PO Box 302 Kingsbury IN, 46345 Phone Number: 219-393-5522 Date ofBirth: 11-19-1959
~~~~~---------------- ----------------------Individual in charge of firing the display: (licensed lead pyrotechnic operator) Name: Robert Wynn Cramer Address: PO Box 302 Kingsbury IN, 46345 Phone Number: 708-921-9365 Date ofBirth: 9-16-1957 ----------------------Experience of Individual in charge of firing the display: Wynn Cramer is in charge of 40 to 50 shows a year, some of the shows include Chicago White Sox, Navy Pier, Chicago Bears he has also experience with International shows.
Date and Time of day at willch display is to be held: September 3rd rain date of September 4th Dusk
Numbers and Kinds of Fireworks to be Discharged: See attached
Manner and Place of Storage of Fireworks Prior to the Display: and stored in the truck as they are loaded 1 box at a tin1e.
The ftreworks will be brought by truck
In the past 24 months, has anyone listed above received a citation for, been convicted of, or entered a guilty plea to violation(s) of the State of Illinois Fireworks Act, Federal Fireworks Laws and Regulations, other States' Firework Laws, or any court order relating to the sale or offer to sell of wholesale or retail fireworks?
0 Yes [}No IF YES, PROVIDE DETAILS:
(This section must be completed in person at the Village Clerk's Office) I swear that the statements made on this application are correct according to the best of my knowledge and belief. I further affirm that I am not currently in default of any financial obligation to the Village of Lake in e Hills. The Service rovider will hold the ViJlage of Lake in the Hills harmless for any and all
Subscribed and sworn to before me this
J V day of ;::( ~ dOt "J
navo"-0 ~*
By:
7 - ;LCP-11 (Date)
•
NANCY SUJET OFFICIAL SEAL
Notary Public. State of lllint is My Commission Expires
June 12, 2020
------~=-~~~~~--~--~~-----Village President Russ Ruzanski
Attest:
Village Clerk, Crystal Ulen
U.S. Department of Justict> Bureau of 1\lcohol. Tobacco. Firearms and Explosi,·es
Federal Explosives License/Permit (1 8 U.S. C Cllapter 40)
In a~.:cordance '' ith the provisions of Title XI. Organized Crime Control Act of 1970. and the regulations issued thereunder (27 CFR Part 555). you may engage in the activi~· specified in this license or permit within the limitations of Chapter 40. Title 18 United States Code and the regulations issued thereunder. until the e:-.piration date sho\\ n. THIS LICENSE IS NOT TRANSFERABLE l.JNDER 27 CFR 555.53. See 'WARNINGS" and "NOTICES" on reverse.
Direct A TF ATF- Chief. FELC L1cense Pen11it Correspondence To 244 Needy Road Number 4-IN-091-24-SA-00529
Martinsburg. WV 25405-9431
Name MELROSE PYROTECHNICS INC
Pn~mises Addrrss (Changes? 1\otify th~ FELC at lea'il 10 day~ heforc th~ mow.)
HEINOLD BLDG. S-1-3 KINGSBURY INDUSTRIAL PARK KINGSBURY IN 46345-0000
T' pc ofLicense or Permit
24-IMPORTE R OF EXPLOSIVES
Purchasing Certitication Statement 1l1e l i~etlsee or p....,nittee nam~d abow shall use a c-opy of this license or pcTIIlit to as!-ist a transf....-or of ~xplo,ives to Vl.'ft~· the identit~ and the hcen>.:d <3aJu< of the lic.:nsee or p<!!mitt~~ as provid~d by 27 CFR Part 555. The signature on ead1 .;oov must b" an onginal signature. A faxed. s.::umed or e-maikd cop~ of the lic~'!lse or permit with a signature int.:nded to b~ an original signature is accq>table. 1l1e signdlurc mu<;t be that oft he Federal Explosives Licetl~-e (FEL) or a responsibl.! p=on ofthe FEL. I certil\ that this is a true ~opy of a I ken~ or permit issued to the ticenseo! or permittee named above to engage m the busul"'' or op....-at ions spc~ificd above under "Type of License or Permtt."
Licensee ·Permittee Responsible Person Signature Position• Title
Printed Name Date
Exp1ra11on Date January 1, 2018
Mailing Address (Change;? Nott~· the FEI .C of an~· changes.)
MELROSE PYROTECHNICS INC P 0 BOX 302
KINGSBURY. IN 46345-
Prf'nous Ed1t1on ,, Obsolete: MfUtosr PYRorreHIIICS •c HUNOl~tltDc '' 31ulfGsluRr ~toustfli4L PARI.4Uo • • .,. ot1-2• M ~H J .... .., ' · 2011 2HfiiPORHRoF EXJ>t o:sNu
All' hxm 5-lm .J4 5-l~> t !<Pan l R<:~· tsed Ottob,.,. "'iJ I
Federal Explosives Ucense (FEL) Customer Sen ice lnfonuation
Federal Explosives Liccn~ing Center (FEI.C) 24-1 Need~ Road Martinsburg. WV 25-105-9-B t
Toll-free Telephone Number: Fa." Number: E-mail: FEJ.Ctq•atf.go,·
(877) 283-3352 (304) 616-4401
A TF llorncpage: WW\\ .at fgm·
Olange of Address f27 CFR 555.5-l{nJ{/J). Licensees or permittees may during the term of their current license or permit remove their business or operations to a new location at which they intend regularly to carry on such bu~iness or operations. The licensee or pem1ittee is required to give nntiticatinn of the ne\\ location of the business or operations not less than I 0 days prior to such removal with the Chief. Federal Explosives Licensing Center. The hcense or permit will be valid for the remainder of the tem1 of the original license or pennit. (The Otief, FELC, shall, if the licensee or pennittee is not qualified, refer thl' request for ammded licmse or pennit to tht> Director of Industry Operations for denial in accordance \\ith § 555.54.)
Right of Succession (27 CFR 555.59). (a) Certain persons other than the licensee or permittee may secure the right to ~.:ar~· on the same explosire materials business or operations at the same address sho\\ non. and for the remainder of the tem1 of. a current license or permit. Such persons arc: (I) The surviving spouse or child. or executor. administrator. or other legal representative of a deceased licensee or pennittee: and (2) A recein:r or trustee in bankruptc~·. or an assignee for henetit of creditors. (b) In order to secure the right provided bv this section. the person or persons continuing the business or operations shall furnish the license or permit for for that business or operations for endorsement of such succession to the Chief. FELC. ,,·ithin 30 days from the date on which the successor begins to carry on the business or operations.
~u.!_fie.!:e X- ___________________________ _ Fffiet·al Explosins Licrnse/Prtmit (FEL) lnfotmation Cat·d
License Permit Name: MELROSE PYROTECHNICS INC
Business Name:
License Pennit Number: 4-IN-091-24-8A-oo529
License Pennit T~l~e: 24-IMPORTER OF EXPLOSIVES
Expiration: January 1, 2018
Pleas~ Not~: Not \"alid for the Sale or Other Disposition of Explosi,~.
(Conunued on reverse s1del
STATE OF ILLINOIS OFFICE OF THE STATE FIRE MARSHAL
DIVISION OF FIRE PREVENTION
1035 Stevenson Drive • Springfield, IL 62703-4259
Pyrotechnic Distributor License
Melrose Pyrotechnics, Inc.
IL06-0PF-00030 License#
Lawrence T. Matkaitis
STATE FIRE MARSHAL
P.O. Box 302 Kingsbury, IN 46345
02/15/2018 EXPIRATION DATE
OPF CLASSIFICATION
This license may be revoked by the Office of the State Fire Marshal for failure to comply with the lawful rules regulating this program.
AE~RD8
CERTIFICATE OF LIABILITY INSURANCE I DATE (MMIDDIYYYY)
7/20/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
PRODUCER ~~~CT
Britton Gallagher r.:JgNJo Ext\:216-658-71 00 I r~~ Nol:216-658-7101 One Cleveland Center, Floor 30 E-MAIL 1375 East 9th Street ADDRESS: Cleveland OH 44114 INSURER(Sl_AFFORDING COVERAGE NAICit
INSURER A :Everest lnsuranr:e Comnan~ 10120 IN SUR EO INSURER B :LM Ins Coro Melrose Pyrotechnics, Inc. INSURERc :Everest lndemnitv Insurance Co. 0851 Kingsbury Industrial Parkway INSURER D :Maxum lndemnitv Comoanv 26743 Heinold Complex Kingsbury IN 46345 INSURERE:
INSURERF: COVERAGES CERTIFICATE NUMBER: 1613644031 REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR TYPE OF INSURANCE ~~~ = LTR POLICY NUMBER ~~~hl%~ ~~~%~ LIMITS c GENERAL UABILITY SI8ML00042-171 1/15/2017 1/15/2018 EACH OCCURRENCE $1,000,000 r--
~~~~~~ ~E~~:~nce\ ~ :5MERCIAL GENERAL LIABILITY $500,000
r-- CLAIMS-MADE El OCCUR MED EXP (Any one person) s
r-- PERSONAL & ADV INJURY $1,000,000
r--GENERAL AGGREGATE $2,000,000 n'l AGGRE~E LIMIT APnS PER: PRODUCTS- COMP/OP AGG $2,000,000
POLICY X ~~gT LOG $
A AUTOMOBILE UABILITY SI8CA00025-171 1/15/2017 1/15/2018 Ea accide~t~INuLto LIM I' S1 000 000 r--X ANY AUTO BODILY INJURY (Per person) $ r-- ALL OWNED ,- SCHEDULED
AUTOS AUTOS BODILY INJURY (Per accident) $
~ rx NON-OWNED fp~~=~d~.?AMAGE $ HIRED AUTOS AUTOS r-- r-- $
D UMBRELLA LIAB _tj OCCUR EXC6017975 1/15/2017 1/15/2018 EACH OCCURRENCE $4,000,000 r--X EXCESS LIAB CLAIMS-MADE AGGREGATE $4,000,000
OED I I RETENTION$ s B WORKERS COMPENSATION WC734S381029 (IL) 4/4/2017 4/4/2018 x 1 T~~~I~'Ws I l0l~· USL&H Included AND EMPLOYERS' UABIUTY YIN
ANY PROPRIETORIPARTNERIEXECUTlVE 0 E.L. EACH ACCIDENT $1,000,000 OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) E.L DISEASE • EA EMPLOYEE $1,000,000 If yes. describe under DESCRIPTION OF OPERATIONS below E.L DISEASE · POLICY LIMIT $1,000,000
DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (Attach ACORD 101, Additional Remari<s Schedule, if more space is required)
Additional Insured extension of coverage is provided by above referenced General Liability policy where required by written agreement. DISPLAY DATE: September 3, 2017 with a September 4, 2017 rain date LOCATION: Sunset Park, 9010 Haligus Road, Lake in the Hills, Illinois ADDITIONAL INSURED: Village of Lake in the Hills; Huntley Fire Protection District
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE Village of Lake in the Hills THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN 600 Harvest Gate ACCORDANCE WITH THE POLICY PROVISIONS. Lake in the Hills IL 60156
AUTHORIZED REPRESENTATIVE
I ~-y © 1988-2010 ACORD CORPORATION. All nghts reserved.
ACORD 25 (201 0/05) The ACORD name and logo are registered marks of ACORD
UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
HAZARDOUS MATERIALS CERTIFICATE OF REGISTRATION FOR REGISTRATION YEAR(S) 2015-2018
Registrant: MELROSE PYROTECHNICS INC Attn: LES MAYHEW POBOX302 KINGSBURY, IN 46345
This certifies that the registrant is registered with the U.S. Department of Transportation as required by 49 CFR Part 107, Subpart G.
This certificate is issued under the authority of 49 U.S.C. 5108. It is unlawful to alter or falsify this document.
Reg. No: 050415 551 017XZ
HM Company ID: 017860
Issued: 05/04/2015 Expires: 06/30/2018
Record Keeping Requirements for the Registration Program
The following must be maintained at the principal place of business for a period of three years from the date of issuance of this Certificate of Registration:
(1) A copy of the registration statement filed with PHMSA; and (2) This Certificate ofRegistration
Each person subject to the registration requirement must furnish that person' s Certificate of Registration (or a copy) and all other records and infonnation pertaining to the information contained in the registration statement to an authorized representative or special agent of the U. S. Department of Transportation upon request.
Each motor carrier (private or for-hire) and each vessel operator subject to the registration requirement must keep a copy of the current Certificate of Registration or another document bearing the registration number identified as the "U.S. DOT Hazmat Reg. No." in each truck and truck tractor or vessel (trailers and semi-trailers not included) used to transport hazardous materials subject to the registration requirement. The Certificate of Registration or document bearing the registration number must be made available, upon request, to enforcement personnel.
For information, contact the Hazardous Materials Registration Manager, PHH-52, Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation, 1200 New Jersey Avenue, SE, Washington, DC 20590, telephone (202) 366-4109.
Huntley Fire Protection District PJDBMlT'ro P.BOCBIIl AND DJBPLA.Y1JUDDWOBB8
_-!:JM=cH:.JJenW!Jirv:.....__ County lll!nojs State
TO WHOM IT MAY CONCERN: GREETINGS Julv 20 .20...1Z_
Application having been made in accordance with the laws of the State of ____ ,~~~IIILI&.IIniZioiiX.s ------
This permit Is issued to Melrose PYrotechnics Inc. I Lake in the Hills Paris Dlstrtctt
Giving them the right to exhibit display fireworks on the sill 4th Rain date day of September _, 20 17
At Dusk o'clock P.M. at Sunset Park _in said County,
In connection with _ __..su_m""'me~r...::S=un=se=.~..~t Fo.lle=st~~o~lv_ai,___ _ _______ Celebratlon.
MELROSE PYllOTECHNICS. INC. P.O.BOX302
KINGSBURY, IN 46345
QTY 120
OPENING 20
BARRAGE
150
300 SPECIAL FLIGHTS &
320
BARRAGES
150
133 MAIN DISPLAY
81
45
280
MIDWAY BARRAGE
so 160
GRAND FINALE 9
6
TOTALS 11824
Quote for 3 additional optional years
Submitted by-
Wynn Cramer - Event
I
Approximate
SHELL SIZE
I
1 1/2 11
2 1/2 11
1 1/2"
111
111
2 1/2 11
311
411
511
1 1/2"
2 1/2 11
311
4"
511
2018 $131 000 2019 $131000 2020 $131 0 00
Producer
Authorized Agent of Company (name and title)
2
TYPE OF SHELL Aerial shells
II
II
II
II
II
II
II
II
II
II
II
II
II
Date6/1/17
Setup Area :SO'xSO' Site Radius: 420ft From Setup Area.
AGENDA ITEM NO: 4.E.3
REQUEST FOR BOARD ACTION
MEETING DATE: August 7, 2017
DEPARTMENT: Parks and Recreation
SUBJECT: Recommendation to Approve Summer Camp Transportation Services provided by First Student for dates August 14 – 18, and August 21 - 22, 2017
EXECUTIVE SUMMARY
On May 8, two sealed bids for summer camp transportation services were opened at 10:00am at Village Hall. Bids were received from Durham School Services ($36,791) and First Student ($45,706.75). Durham School Services’ bid did not include 1 week of camp trips and First Student’s bid was for all weeks of camp trips. However, it was determined that First Student was still more expensive overall. School District #158 was not able to provide a bid as they are unable to transport children who do not attend the District.
In an effort to reduce expenses, staff analyzed the trips and number of buses requested. It was determined there were several opportunities to shuttle for local park trips rather than use multiple buses. Additionally, for shorter trips, children sat three to a seat. This allowed for a reduction of one bus on several trips. Making these adjustments reduced the total of Durham School Services bid to $32,507 and First Student’s bid to $39,016.75.
Transportation services are utilized for eleven weeks of summer camp to transport campers on three weekly trips. Camp is held at Marlowe Middle School and Village Hall with an average of 200 children each day. Staff is requesting approval of camp transportation to cover the remaining days not bid by Durham School Services. Camp registration numbers have exceeded projected participation and revenue since the transportation bid was discussed in May due to the popularity of “Flexi Camp.”
FINANCIAL IMPACT
The budgeted amount for transportation services is $30,000. The Board approved a contract on May 25, 2017 for $32,507 payable to Durham School Services which increased the budgeted amount by $2,507. The proposed contract from First Student is $3,038.00 which will raise the total over budget to $5,545.
ATTACHMENTS
1. First Student Quote
RECOMMENDED MOTION
Motion to waive competitive bidding and to approve an additional contract to fulfill unmet needs for
2017 Summer Camp transportation services from First Student in the amount of $3,038.00.
j ~ DATE(S} OF SERVICE DESCRIPTION
: ' : : : ~ ~ : . : : : · : · · · ::: · lnl.""''~o :
~ :~ .: .1 . : :. ~. •, •. '. : ; : : . . : .; : : ' . . . . : . . . .
: : : . : : : . . : :~ .=' .• .=' .~ :~ ,• . ,: : .:
=-: = . . . . : H ~ : .
REMIT WITH REMITTANCE COPY TO: First Student, Inc 1717 Park PI, Suite 225 Chicago, IL 60603
G/L (Office Use Only} AMOUNT ::; .: -: -
: 8/15/17 --------•• 5 hr trip @ $62/hr gate to gat._e _ ______ .: ________ ;j'--. _______ ...;,.$_40_3_
l! :.·.=,.:' 3.5 hr trip@ $62/hr gate to gate '' $310 -------- ~_;_;.;.;.__;...:.t;_"""'_«-.:....:..::.:..'--->_<..:...:..._ ::.....:.:.-£:..;_;.:,_ _______ ,. ________ ; ;. ______ __:...;;__;;._
:: 8/16/17 ii! 4 hr trip @ $62/hr gate to gate $341.00 ' =:--------,,'--. ---L--=~----"''-----.,._ ________ --------:---
:; ':2_ hr trip @ $62/hr gate to gate ·,__· _____ .--:::..$4...:..0:...:3:..:...0.:.....::.0
•• _8_/1_7_/1_7 _____ :: 3.5 hr trip@ $62/hr gate to~---- _________ j j=-· _______ $..:..3_1_0_.0_0
_______ _,::· 4 hr trip@ $62/hr gate to g,..:.cac:..:te ____ , ___ . :: $341.00
::-=8c:..:/2:...:1..:..../1:...:.7 _____ !i; 7 hr trip @ $62/hr gate to gate ___ ::--------:,,_• _______ $:;_:5..:..2..:..7:..:...0..:._0 ;:
::_8_/2_2_/1_7 _____ ::: 5 hr trip @ $62/hr gate to gate = ' · $403.00 : --------·:
:: ______ : :...,_· ----------------- ----------·--------:: \ ·:
':. -------''=--' -----------------:--------'''--· --------. : ~ ~ ~ j :
--------.:.:.: ----:,- ------- ;:.'----------:: :r ------;----------------------------- ----------
- --------l··,_j -------- ---------- ________ .,._. ---- ----::.i-: --·----------------·=
:=.: ·-------:.•.::...,_.: --- - ----------- --- ________ ::-~· --------; >-=:. :; = :: n ~ ~ . :=- -------:------------- -------------~--------
i: _ _ ______ ,i,?-· - -----_- _- _-_-_-_- _-_-_-_-_-_-_-_-_-_-_-_-_-_-_- _-;=========---11·:--•_ ================
A finance charge of the statutory limit will be charged on all past due invoices.
Branch Office Use Only:
PLEASE CHECK ONE BOX ON EACH OF THE FIVE (5) COPIES MADE:
Customer Original
Customer Remittance Copy -l
Branch Office
Copy =
TOTAL: ..
Regional Office AIR Copy
$
Area Office Copy
3,038.00