CITY COUNCIL 2018/07/02 AgendaTHE CITY OF LAKE FOREST
CITY COUNCIL AGENDA
Monday, July 2, 2018
City Hall Council Chambers
220 E Deerpath, Lake Forest
Honorable Mayor, Robert Lansing
Prudence R. Beidler, Alderman First Ward Jack Reisenberg, Alderman Third Ward
James E. Morris, Alderman First Ward James Preschlack, Alderman Third Ward
Timothy Newman, Alderman Second Ward Michelle Moreno, Alderman Fourth Ward
Melanie Rummel, Alderman Second Ward Raymond Buschmann, Alderman Fourth Ward
CALL TO ORDER AND ROLL CALL 6:30pm
PLEDGE OF ALLEGIANCE
REPORTS OF CITY OFFICERS
1. COMMENTS BY MAYOR
2. COMMENTS BY CITY MANAGER
A. Special Guest of the City Council, State Senator Julie Morrison
Update on
• Senate Resolution 1746, attached page 11.
• State Budget
• State Sales Tax
• Capitol Bill
B. Update on Forest Park Beach Bluff Activity
- Michael Thomas, Director of Public Work
- Sally Swarthout, Director of Parks & Recreation
3. COMMITTEE REPORTS
A. Adoption of the Principles, Conduct and Procedures for Meetings and Activities of
the Members of the City Council and Staff
PRESENTED BY: Finance Chairman Jed Morris and Third Ward Alderman Jim Preschlack
STAFF CONTACT: Robert Kiely, City Manager, 847-810-3675
BACKGROUND/DISCUSSION: Mid-March the City Council was presented with a draft of the
Principles, Conduct and Procedures for Meetings and Activities of the Members of the City
Council and Staff prepared by City Manager Robert Kiely. At its Monday, May 21 Workshop
meeting, the City Council had extensive discussion on the proposed document and created
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a subcommittee consisting of the Finance Committee Chairmen Jed Morris and Third Ward
Alderman Jim Preschlack.
Similar to the Decision Making Parameters, at the conclusion of the workshop meeting,
Council members were asked to submit any final thoughts to City Staff who would pass them
to the subcommittee so that a final draft could be available for tonight’s meeting. A copy is
beginning on page 15 of your packet.
It has been recommended that once adopted, the Principles, Conduct and Procedures for
Meetings and Activities of the Members of the City Council and Staff are reviewed by staff
annually, and if appropriate be brought before the Council for review and consideration as
needed.
BUDGET/FISCAL IMPACT: N/A
COUNCIL ACTION: Approval of the proposed Principles, Conduct and Procedures for Meetings
and Activities of the Members of the City Council and Staff
4. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
5. ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the June 18, 2018 City Council Meeting Minutes
A copy of the minutes can be found beginning on page 28.
COUNCIL ACTION: Approval of the June 18, 2018 City Council Meeting Minutes.
2. Consideration of an Ordinance Amending Sections 94.15 through 94.21, titled
“Open Fires” of the City Code (Final Approval)
STAFF CONTACTS: Pete Siebert, Fire Chief, 847-810-3864
Catherine Czerniak, Director of Community Development, 847-810-3504
PURPOSE AND ACTION REQUESTED: In response to concerns and questions received from
residents, the Council is asked to consider clarifications and modifications to the Code
provisions relating to open fires of various types, in particular, recreational fires on residential
properties, within the City limits.
At the June 18th Council meeting, the Council heard a presentation from staff on the
proposed Code amendments and approved first reading of the ordinance as presented.
Since first reading, staff has received no public comments or questions about the proposed
changes.
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BACKGROUND/DISCUSSION: As currently written, the City Code does not permit any type of
open fire without a permit. However, various types of open fires occur throughout the City
and enforcement occurs on a complaint basis.
In response to recent input from some residents, City staff has reviewed the City Code
language and reconsidered the current prohibitions in the context of current practice, other
life safety Codes, development patterns and past experience with open fires. The proposed
amendments give priority to life safety, while at the same time, providing some latitude for
open fires, within the City limits, for recreational, ceremonial and natural area maintenance
purposes. In summary, the amendments permit open fires on residential properties with some
limitations.
Open fires are permitted on residential properties of 60,000 square feet or larger under
the following conditions:
Conformance with established setbacks from structures and property lines.
Dry, seasoned wood is used for fuel; no burning of trash, leaves or other debris.
The fire is attended constantly until extinguished.
Fire extinguishing equipment or material is nearby.
Fires in portable, covered outdoor fire pits or containers are permitted on residential
properties of any size under similar conditions as those noted above.
Fires not meeting the above conditions may still be permitted subject to review by the
Fire Chief and the issuance of required permits.
Staff from the Fire, Parks and Recreation and Community Developments collaborated on the
proposed amendments. The amendments are presented to the City Council with the
endorsement of all three departments.
The Ordinance, with a blackline version of the Code Sections reflecting the proposed
amendments is included in the Council packet beginning on page 37. A clean copy of the
Code Sections, incorporating all of the proposed amendments as recommended by staff, is
also included in the packet for ease of reading.
COUNCIL ACTION: Grant final reading of an Ordinance amending Sections 94.15 through
94.21, titled “Open Fires” of the City Code.
3. Approval of a recommendation from the Public Works Committee in awarding the
contract for the Southwest Lift Station Forcemain Replacement Project to IHC
Construction Company in the amount of $345,560.00 plus authorization to expend, if
necessary, an additional 10% for unforeseen change orders that may occur during
the administration of this project.
STAFF CONTACT: Robert W. Ells, Superintendent of Engineering (847-810-3555)
PURPOSE AND ACTION REQUESTED: Public Works Committee requests awarding the contract
for the Southwest Lift Station Forcemain Replacement Project to IHC Construction Companies
LLC.
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BACKGROUND/DISCUSSION: The project involves replacing the 42 year-old forcemain located
along the Southside of Old Mill Road. The Southwest Lift Station Forcemain project limits are
from West Fork Drive to just east of Estate Lane. The existing 12” cast iron forcemain will be
replaced with 12” high-density poly pipe.
Each year, as part of Capital Improvement Program budget, staff evaluates the condition of
existing sanitary sewer system infrastructure in terms of age, capacity, and repairs. A majority
of the Southwest Lift Station Forcemain will be installed utilizing a trenchless, directional drilling
technique, thereby creating less excavation and disturbance in the construction area.
The preparation of plans and specifications including performing field surveys and design
were prepared by Bleck Engineering. The Engineering staff will provide daily inspection
services.
BUDGET/FISCAL IMPACT: Bids for the Southwest Lift Station Forcemain Replacement Project
were received and opened on June 5, 2018. City received a total of five (5) bids.
Has competitive pricing been obtained for proposed goods/services? - Yes
The following is a summary of the bids received:
BIDDER BID AMOUNT
IHC Construction Companies LLC $345,560.00
Apollo Trenchless, Inc. $352,785.00
RJ Underground Inc. $441,600.00
RA Mancini Contractors $515,000.00
Berger Excavating, Inc. $631,800.00
Engineer’s Estimate $475,000.00
The low bidder, IHC Construction Companies LLC has completed similar projects for other
municipalities. If awarded, the project would commence the beginning of August and be
completed by the end of September. Upon confirming the start date of the project, a letter
will be sent to the residents within the limits of the project two weeks prior to start of
construction. The City website, under Construction Updates, will also provide details on the
construction schedule.
Below is an estimated summary of Project budget:
FY2019 Funding Source Account Number Amount
Budgeted
Amount
Requested
Budgeted?
Y/N
Water and Sewer Fund 508-0001-441-75-01 $525,000 $380,116 Y
COUNCIL ACTION: Approval of a recommendation from the Public Works Committee in
awarding the contract for the Southwest Lift Station Forcemain Replacement Project to IHC
Construction Company in the amount of $345,560.00 plus authorization to expend, if
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necessary, an additional 10% for unforeseen change orders that may occur during the
administration of this project.
COUNCIL ACTION: Approval of the three (3) Omnibus items as presented
6. ORDINANCES
7. NEW BUSINESS
Approval of the Local Agency Consultant Agreement with Civiltech, Inc., the Local Public
Agency Agreement for Federal Participation with the State of Illinois Department of
Transportation for the Everett Road/Waukegan Road Intersection Improvement Project, and
Authorization to Allocate Non-Budgeted funds for the City’s 20% share.
PRESENTED BY: Robert W. Ells, Superintendent of Engineering (847-810-3555)
PURPOSE AND ACTION REQUESTED: The Public Works Committee requests approval to enter
into an agreement for professional design services with Civiltech for the Phase II design of the
Everett Road/Waukegan Road Intersection Improvement Project. Additionally, staff requests
authorization to allocate non-budgeted funds for the City’s 20% share.
BACKGROUND/DISCUSSION: The planning for this project began in 2009 when The City of
Lake Forest retained Kenig, Lindgren, O’Hara, Aboona, Inc. (KLOA) to conduct a traffic study
on Everett Road. This study was requested to evaluate existing traffic conditions in the area
along with possible impacts of a proposed residential development at the northwest corner
of Everett Road and Telegraph Road.
Consideration was given to the traffic effects of the Lake Forest Metra Station parking lots,
and Everett Elementary School as well as passenger and freight train activity on the Metra
MD-N Line railroad.
Although plans for the proposed residential development did not progress, the City continued
to look at the traffic issues in the area based on public comment and City Public Works
Committee and Council feedback.
The plan calls for the addition of a dedicated right turn lane from southbound Waukegan
Road to westbound Everett Road; lengthening the right turn lane, left turn lane and through
lane from eastbound Everett Road to west of the Metra tracks and an enhanced left turn
lane from westbound Everett road to southbound Waukegan Road.
This work will reduce traffic congestion at the intersection by adding additional vehicle
stacking and creating dedicated turn lanes. The Phase I preliminary engineering design has
been approved by both IDOT and Metra.
The City is now eligible for Federal Surface Transportation Program (STP) funding through the
Lake County Council of Mayors. This funding would reimburse the City for 80% of eligible
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Phase II design, construction and Phase III construction engineering costs. City staff has
concluded a Request for Qualifications process and has selected Civiltech Engineering, Inc.
as the Phase II engineering design consultant.
Funds will be authorized and design will begin once the agreements are executed by the
State, construction may begin as soon as summer, 2019 (FY20).
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
Public Works Committee 6/25/18 Approved
Finance Committee 3/5/18 Reviewed
City Council 1/16/18 Presented for information
Public Works Committee 9/25/17 Reviewed
BUDGET/FISCAL IMPACT: Phase II design services will be 80% funded by federal Surface
Transportation Program (STP) funds with the remaining 20% the responsibility of the City.
The City will initially pay the full amount to the consultant and be reimbursed for the 80% STP
fund share.
Has competitive pricing been obtained for proposed goods/services? No
If no, indicate the specific waiver requested:
Administrative Directive 3-5, Section 9.0A – specially authorized waiver (2/3 vote)
Administrative Directive 3-5, Section 9.0 B – Professional Services, RFP and Qualification Based
Selection.
Copies of the Agreements can be found beginning on page 45 of your packet……
Company Name Proposal
Civiltech, Inc. $328,726.00
Below is an estimated summary of Project budget:
FY2019 Funding Source Amount
Budgeted
Amount
Requested
Budgeted?
Y/N
Capital Fund $0.00 $328,726* N
* After reimbursement the net payable by the City is $65,745 to be funded from fund balance
of the Capital Improvements Fund. As this expense is not budgeted, a supplemental
appropriation ordinance would be presented for City Council approval at fiscal year-end, if
necessary.
GRANT FUNDING ASSESSMENT
Phase STP Funds City Funds Total
Phase II Design $262,981 $65,745 $328,726
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Construction $1,932,938 $585,531 $2,518,469
Phase III Eng. $160,000 $40,000 $200,000
Project Totals $2,355,919 $691,276 $3,047,195
Construction and Phase III Engineering estimates are provided for information only. Approval
to expend funds for these costs would be presented for City Council approval at a later date.
COUNCIL ACTION: Approval of the Local Agency Consultant Agreement with Civiltech, Inc.
and the Local Public Agency Agreement for Federal Participation with the State of Illinois
Department of Transportation for the Everett Road/Waukegan Road Intersection Improvement
Project. Additionally, approve $328,726 in non-budgeted expenses, with 80% to be
reimbursed from STP grant funds.
2. Consideration of Two Recommendations Related to Construction of a Hyatt
Place Hotel, in Conway Park. (Grant Final Approval of an Ordinance and
Approve a Resolution by Motion)
PRESENTED BY: Catherine J. Czerniak, Director of Community Development
Robert R. Kiely, Jr., City Manager
PURPOSE AND ACTION REQUESTED: The Council is asked to consider a recommendation from
the Building Review Board in support of the design aspects of a Hyatt Place Hotel proposed
for construction in Conway Park.
and
The Council is asked to consider a limited-term financial incentive package for the hotel to
support the following goals: 1) to provide a hotel, as an amenity in Conway Park in response
to requests from current corporate tenants of the Park; 2) to meet the needs of residents and
visitors who currently seek lodging outside of the community; and 3) to expand on and
diversify commercial development within the City.
BACKGROUND/DISCUSSION: Conway Park is a corporate office park located at the western
edge of Lake Forest, adjacent to the Illinois Tollway. The office park was annexed by the City
over 20 years ago and today, the park is nearly built out with 13 office buildings of various
sizes and the Lake Forest Graduate School of Management. A hotel is a permitted use in
Conway Park and a hotel was always envisioned along the Route 60 Corridor to serve
businesses, residents and visitors. A Hyatt Place Hotel is proposed on one of the last remaining
vacant parcels in Conway Park.
More than 20 years ago, when the property along the Route 60 Corridor near the Tollway was
annexed, a framework was put in place to support development of the area with a first-class
corporate office park and supporting ancillary uses. Today, Conway Park, along with the
office buildings located on the south side of Route 60, is home to many corporate
headquarters reflecting that early vision. However, the anticipated ancillary uses (hotels,
restaurants and limited service businesses) have not yet been established in the area to
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support, retain and attract corporate users, employees of the office park, residents of the
community and visitors.
A vibrant Route 60 Corridor is consistent with the community goals identified in the City’s
recently updated Strategic Plan. The Business and Economic Vitality Chapter of the Plan
states that the City “will use economic development tools” to engage property owners, take
advantage of opportunities and overcome challenges in achieving desired development.
The Plan specifically speaks to working with entrepreneurs and employers who complement
the City’s long-term economic vision in order to establish and maintain an appropriate
balance between the residential and commercial tax bases in the community. The Plan also
directs that the City will engage in proactive economic development efforts to attract key
businesses in commercial corridors. Council consideration of an incentive package to
achieve development of a hotel in the Route 60 Corridor, is consistent with the directives in
the Strategic Plan.
Design Review – Building Review Board
Earlier this year, over the course of two meetings, the Building Review Board considered a
request for approval of the design aspects of the proposed Hyatt Place Hotel. At the Board’s
request, the details of the design, exterior materials and overall site plan were refined after
the first meeting and enhanced plans were presented to the Board for a final
recommendation at the March, 2018 meeting. The Board heard testimony in support of the
petition from one resident. The Conway Park Owners’ Association also submitted testimony in
support of the hotel noting that final approval from the Owners’ Association is required prior
to construction, consistent with the covenants pertaining to Conway Park. The Board voted 6
to 0 in support of the petition.
The ordinance and key exhibits are included in the Board’s packet beginning on page 60.
The ordinance, complete with all exhibits, is available for review in the Community
Development Department.
Review of Incentive Request
In February, 2018, with the approval of the City Council, Michael Tobin, CBRE, was engaged
to assist the City in considering the request for financial incentives. Mr. Tobin and his
colleagues worked with the Mayor, Finance Committee Chairman, City Attorney and City
staff to assure that the right questions were asked of the developer, complete information
obtained, and a thorough analysis conducted of both the short-term and long-term benefits
of the proposed hotel development to the overall community.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
City Council June 18, 2018
Granting first reading of Ordinance
approving design aspects consistent
with Building Review Board
Recommendation.
Mayor and Finance
Committee Chairman May/June 2018
Reviewed developer’s proposal,
consulted with Michael Tobin, the
City’s Advisor on this matter,
negotiated Term Sheet.
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Monday, July 2, 2018 City Council Agenda
Building Review Board February/March
2018 Recommended Approval (6 to 0)
BUDGET/FISCAL IMPACT: A projection of the financial benefits the City will realize in the short-
term, and over the longer term, as a result of the proposed Hyatt Place, is attached
beginning on page 72 as background material.
A revised draft of the Incentive Agreement is also included in the Council’s packet. The
Resolution presented for Council action, endorsing the proposed incentive package and
directing finalization of the Agreement is included in the Council packet on page 73.
COUNCIL ACTION: If determined to be appropriate by the City Council:
1. Grant final approval of the Ordinance in accordance with the Building Review Board’s
recommendation.
2. Approve a Resolution by Motion, directing the City Manager and Attorney Victor
Filippini to finalize an Agreement with Janko LLC, substantially in conformance with the
Term Sheet presented to the City Council, and authorize the Mayor to enter into the
Agreement on behalf of the City.
8. ADDITIONAL ITEMS FOR DISCUSSION/ COMMENTS BY COUNCIL MEMBERS
1. EXECUTIVE SESSION pursuant to 5 ILCS 120/2 (c), (1), The City Council will be
discussing personnel
Adjournment into Executive Session
Reconvene into Regular Session
9. ADJOURNMENT
A copy of the Decision Making Parameters can be found beginning on page 89 of this
packet.
Office of the City Manager June 27, 2018
The City of Lake Forest 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 in order to allow them to observe and/or participate in this
meeting, or who have questions regarding the accessibility of the meeting or the facilities, are
required to contact City Manager Robert R. Kiely, Jr., at (847) 234-2600 promptly to allow the
City to make reasonable accommodations for those persons.
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Monday, July 2, 2018 City Council Agenda
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SENATE RESOLUTION
WHEREAS, Illinois and Chicago are known as the nation's
rail hub and, pursuant to data provided by the Metropolitan
Planning Council, the Chicago region serves as a national
east-west gateway for six of the seven major Class I railroads
that transport approximately 25% of all U.S. freight rail
traffic and 44% of all U.S. intermodal "container" units,
totaling more than 1.3 million loaded rail cars annually; and
WHEREAS, Metra operates 691 weekday trains, stopping at 241
stations on 11 rail lines in the Chicago region; and
WHEREAS, Amtrak operates a nationwide rail network,
serving more than 500 destinations in 46 states, the District
of Columbia, and three Canadian provinces on more than 21,400
miles of routes, with Chicago being a major hub for most of
their interstate services; and
WHEREAS, These activities provide vital transit services
for Illinois residents, Illinois commerce, and the nation; and
WHEREAS, Actual and projected growth in rail freight,
Metra, and Amtrak service continues to put pressure on existing
Illinois rail systems, often creating higher congestion and
reduced safety when passenger and freight share the same rail
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lines; and
WHEREAS, The Illinois Department of Transportation
participated in a nine-state planning effort that resulted in
publication of the Midwest Regional Rail System (MWRRS)
executive report in September of 2004, which outlined steps to
improve regional rail mobility and stimulate economic
development at an estimated budget of $7. 7 billion; it is
unclear what impact has been achieved; and
WHEREAS, The National Environmental Policy Act (NEPA)
mandates a process to use either an Environmental Assessment,
or a more comprehensive Environmental Impact Statement, to
collect data, evaluate impacts, review alternatives, and
propose project solutions; and
WHEREAS, One of the current rail projects being studied is
an Environmental Assessment of proposed improvements to the
Chicago-Milwaukee Intercity Passenger Rail Program estimated
to cost $195 million along with increased annual operating
expenses to add three daily round trips to the Amtrak Hiawatha
service; and
WHEREAS, Several communities, including the Village of
Glenview and the City of Lake Forest, have expressed strong
concerns about this Environmental Assessment's lack of data and
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missing analyses of potential impacts of, and alternatives to,
freight train holding tracks, noise, vibrations, releases into
the air to adjacent residential areas, hospital, schools, and
rare nature preserves; and
WHEREAS, It is in the public's best interest to fully
evaluate the benefits and impacts of rail projects in Illinois
prior to seeking public funding and agency permitting for such
projects; therefore, be it
RESOLVED, BY THE SENATE OF THE ONE HUNDREDTH GENERAL
ASSEMBLY OF THE STATE OF ILLINOIS, that in accordance with the
National Environmental Policy Act and, in support of
potentially impacted communities in Illinois, all proposed
Illinois rail projects with new freight train holding tracks
adjacent to residential areas, including the current
Chicago-Milwaukee Intercity Passenger Rail Program described
above, are urged to have full Environmental Impact Statement
reviews; and be it further
RESOLVED, That the Illinois Department of Transportation
is urged to pursue options to eliminate or minimize the routing
of bypass freight traffic through the Chicago metropolitan
area, including prioritizing the review and study of rail
bypass systems around Chicago that would ensure coastal rail
traffic not destined for Chicago could more efficiently bypass
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the Chicago region and significantly reduce the negative
impacts of freight rail in the highest populated areas of
Illinois; and be it further
RESOLVED, That suitable copies of this resolution be
delivered to all members of the Illinois Congressional
Delegation and the Secretary of Transportation.
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THE CITY OF LAKE FOREST
Principles, Conduct, and Procedures for Meetings and Activities
of the Members of the Lake Forest City Council and Staff
Draft June 28, 2018
The City Council, with the advice and recommendations of its appointed advisory Boards and
Commissions, Lake Forest Citizens, and City Staff, is responsible for ordinances and regulatory
oversight of the City government. The City Council is charged specifically with:
The power to pass, publish, amend and repeal all ordinances, rules and police regulations, not
contrary to the constitution of the United States or this state for the good government, peace,
and order of the City.
As prescribed in the City of Lake Forest charter:
The Mayor and Aldermen shall constitute the City Council of the City
The City Council includes the Mayor and eight Aldermen, two from each of the City's four
wards. The Mayor is elected bi-annually for a two-year term and receives a token salary of $10
per year. Aldermen are elected to staggered two-year terms, with one Alderman elected from
each ward annually. Aldermen receive no compensation.
The City operates under the Council-Manager form of government and is a recognized Home
Rule community under Illinois State Statutes. The City also operates under a City Charter. The
City Manager is appointed by the Mayor with the consent of the City Council. The City Manager
is the Chief Administrative Officer of the City and is responsible for the efficient administration
of all departments.
I. Core Values
City Council members and City Staff must adhere to the following Core Values of the
organization and apply them at all times and in every interaction with Council
members. City Staff and the public:
a. Respect and Fairness
b. Integrity
c. Excellence in Performance of Duties
d. Honesty
e. Empathy
f. Trust
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II. Principles
a. All persons will be treated fairly and with respect.
b. The long-term goal of the entire community outweighs any individual opinion or
any private or specific interest.
c. City Council members and City Staff will represent their constituents with
truthfulness, dignity and professionalism.
d. City Council members will be independent, impartial and fair in their judgment
and actions, even when in disagreement on issues.
e. All officials, whether elected or appointed, and City Staff, will comply with the
Constitution and laws of the United States of America, the State of Illinois and
the Code, ordinances and policies of the City of Lake Forest in the performance
of their duties.
f. All persons will demonstrate respect for and facilitate an open, deliberate
decision-making process. City Council members and City Staff will respect the
fact-finding and deliberations of the Boards and Commissions of the City and
accord them due deference in the deliberative process, without abdicating the
Council's ultimate responsibility as the sole legislative body of the City.
g. City Council members and City Staff will represent the official policies and
positions of the City. When presenting their personal opinions or positions, they
should state that they do not represent the City Council or the City.
h. All officials, whether elected or appointed, and City Staff, will act in a way that
will enhance public confidence in the integrity of local government.
i. Funding decisions should support effectiveness and economy in providing
services and programs, while mindful of the number of citizens benefitting from
such expenditures. As such, new initiatives should be quantified, qualified, and
evaluated for their long-term merit and overall fiscal impact and other
consequences to the community.
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j. City Council members and City Staff will maintain a productive working
relationship by adhering to the following expectations and responsibilities
inherent to the Council-Manager form of government:
C/T/ COUNCIL MEMBERS' EXPECTATIONS OF CITY STAFF
1. Responsiveness to citizenry
2. Respect for persons in elective and appointed office
3. Availability to discuss issues
4. Honesty in handling of public resources
5. hlonest feedback on policy decisions and administration
6. Adherence to Council policy direction
7. Service delivery in the most effective and efficient manner
8. Provide up-to-date information to avoid "surprises"
9. Creativity in finding solutions
10. Adherence to the established Core Values of Respect, Integrity,
Excellence, Honesty, Empathy and Trust
Cinr STAFF EXPECTATIONS OF C/7V COUNCIL MEMBERS
1. Exhibit respect for administrative and legal processes
2. Understand, appreciate and respect the past vision, goals. City policies
and plans for the community
3. Respect the vision, goals and plans associated with that vision
4. Show mutual respect for City Staff members and their professionalism
5. Promote civility in all public discourse, both to and from City Council
members. City Staff, and the public, and to show zero tolerance for
abusive conduct or personal attacks upon the character or motives of
public officials. City Staff or members of the public
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6. Demonstrate honesty and integrity in interaction with City Staff and the
public
7. Defer from temptations to micro-manage
8. Be prepared, engaged and knowledgeable about the issues before the
City Council
9. Provide up-to-date information to avoid "surprises"
C/7V COUNCIL MEMBERS' RESPONSIBILITIES TO Cinr STAFF
1. Fair compensation and recognition of performance
2. Respect for the position and office and for them as individuals
3. Receptivity to input and dialogue
4. Availability
5. Clear direction of objectives and priorities
6. Necessary resources to complete tasks
7. Adequate preparation for City Council meetings
8. Provide a safe work environment that encourages productivity and
creativity and is free of harassment, intimidation or retribution
CITY STAFF RESPONSIBILITIES TO CIFr COUNCIL MEMBERS
1. Attention to detail
2. Mutual respect for one another, the City Council and the public
3. Honesty and integrity in interactions with the City Council and the public
4. Unbiased administration of policy decisions and adherence to established
policies
5. Provide options and solutions for solving difficult problems
6. Creativity for constant improvement and maintaining best practices for
service delivery
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7. Provide up-to-date information to avoid "surprises"
CIFf COUNCIL MEMBERS'AND CIW STAFF RESPONSIBILITIES TO THE PUBLIC
1. Every member of the public should be accorded an ample opportunity to
be heard and to have grievances redressed by his or her City government
2. Every member of the public should be accorded dignity both in public and
private discourse related to City business
3. Every member of the public deserves to have their concerns replied to by
their City government
4. Every member of the public has the right to expect their taxpayer dollars
to bespentfairly, judiciously and only for the improvement of the civic
welfare of the community following due public deliberations
5. Every member of the public should expect their government to treat
them equitably and fairly
III. City Council Meetings
Meetings of the City Council bring together individuals with a variety of backgrounds,
personalities, values, and opinions for a shared purpose: To effectively promote and
protect the health, safety and general welfare of the citizens of Lake Forest for the long-
term common good.
City council meetings are intended to make decisions that formally set municipal programs
in motion, enact ordinances, adopt policy, and authorize the expenditure of city funds. This
section discusses the conduct of meetings, preparation for meetings, rules of procedure,
and encouragement of citizen participation.
a. Meeting Participation
In addition to the Mayor, who presides over City Council meetings, and the Aldermen, The
City of Lake Forest Council meetings will typically include the City Clerk, the City Manager,
and the City Attorney. Their specific meeting roles are:
1) Presiding Officer
The Mayor is the presiding officer of the City Council, and is responsible for ensuring
that meetings are orderly, conducted in conformity with the rules of procedure, and
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progress at an appropriate pace. The presiding officer is responsible for ensuring that
council members and citizens have ample opportunity to express their views. The Mayor will
recommend one of the Council members to act as presiding officer and to serve in the
Mayor's absence.
The Mayor may vote only on matters in cases of a tie vote, or where % of the
Aldermen have voted in favor of an ordinance, resolution or motion even though
there is no tie, or where a vote greater than a majority of the Corporate Authorities
is required by statute. The Mayor may veto ordinances passed by the City Council,
who, in turn, may override his or her veto by a 2/3 vote of all Aldermen holding
office.
2) The City Council as a Whole
The City Council will adhere to the City of Lake Forest "Decision-Making Parameters
for City Council and Appointed Boards and Commissions" document, adopted by the
City Council on June 18, 2018.
3) City Clerk
The City Clerk is the official record keeper. The Clerk is responsible for keeping the
official minutes of council meetings. The Clerk's duties also include preparing and
distributing the meeting agenda and minutes, keeping other records, preparing and
processing correspondence and reports, and managing the city council office. The
Clerk will typically make certain that all meetings are advertised in accordance
with the Open Meetings Act.
4) City Manager and City Attorney
The City Manager and the City Attorney serve as resources at City Council meetings,
whose responsibilities are set forth in the City Code.
IV. General Council Standards of Decorum and Conduct
The City of Lake Forest protocols and procedures for Council meetings have been
established to promote that purpose by creating an efficient, effective forum and a
positive and professional atmosphere within which the business of the City can be
conducted. This shared purpose is acknowledged and affirmed, despite the possible
divergent opinions of the individual members of the City Council. Civil discourse is
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only fostered if it is modeled by how City Council members and City Staff behave
toward one another and toward members of the public.
a. Mayor:
The Mayor has the responsibility and authority to manage the order of the
meeting. All members must respect the decisions of the Mayor, who will
respectfully manage public comment.
b. New Policy/Project Initiatives:
If a City Council member is interested in having the Council consider a new
initiative (which may or may not require the expenditure of staff time), the
matter must first be presented at a regular City Council meeting under
"Comments from Council Members" following written notification to the Mayor
and City Manager.
c. Civility:
City Council members should always be respectful of each other, of City Staff,
and of the public. All oral discourse should be polite and civil. Members should
never be belligerent, impertinent, threatening or disparaging and when
appropriate, should use titles when addressing others. Comments of a personal
nature should be avoided. Opinions and positions are more persuasive when
expressed civilly.
d. Preparation for Meetings:
City Council members are to prepare for meetings in advance. When possible,
background and informational questions should be addressed with City Staff
members during working hours rather than during City Council meetings, unless
the answers to such questions will have an educational value of broad and
general applicability. Thorough preparation improves focus on policy matters
and fosters effective, efficient meetings.
e. Focus on Business:
City Council members should keep focus on the matters of business before them,
keeping in mind the principal role of the City Council is executory as policy
makers rather than administrators. Discussion of matters not relevant to
pending business should be avoided. Members should be respectful of the roles
of others and should be good stewards of the time spent during City Council
meetings.
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f. Respect for City Staff:
City Council members should be respectful in every contact and communication
with City Staff, recognizing the scope and weight of the City Staff's duties and
responsibilities. Positive interactions with others promote greater achievement.
g. Respect for Speakers:
City Council members should be fair, patient, and respectful of all individuals
who speak before, or make presentations to, the City Council at public meetings
or public hearings. No signs of partiality, prejudice or disrespect should ever be
evident on the part of any individual City Council member. Full attention should
be given to speaker/presenters and side conversations should be kept to a
minimum or not held at all. The City Council members should always be mindful
that facial expressions and body language can be just as disrespectful as words.
Making the public feel welcomed and heard is an important part of the
democratic process.
h. Use of Electronic Technology during Meetings:
Electronic technology devices should be used by City Council members and Staff
judiciously and only for purposes related to the meeting at hand. The use of
such devices for personal/family situations is understood and should be handled
in a manner which is not disruptive to the conduct of business.
V. Meeting Rules and Procedures
a. Parliamentary Procedure:
Meetings will be conducted following these rules of Protocols and Procedures.
For all matters not governed by these rules, matters of the City Council will be
governed by the most recent edition of Robert's Rules of Order. In the case of
an inconsistency or conflict between these rules and Robert's Rules of Order.
these rules will apply and control. If a matter is not covered by these rules, then
Robert's Rules of Order will apply and control.
b. Questions of Order, Decisions:
All questions of order will be addressed to, and decided by, the Mayor. The
Mayor will decide all questions of parliamentary procedure without debate. The
decision of the Mayor may be appealed to the City Council by motion stating the
question be appealed.
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c. The Floor:
A City Council member will not speak until recognized by the Mayor, who will
decide who has the floor. City Council members always should act to ensure the
meeting is conducted in a smooth and orderly manner. City Council members
will address all comments and discussions through the Mayor. All remarks
should be addressed to the merits of the pending matter. Council members
should not feel obligated to respond to any question or comment offered
through public comment. City staff will follow up with the speaker within the
next few business days.
d. Roll Call Votes:
A roll call vote of "ayes" and "nays" will be taken and recorded in the minutes of
proceedings for all ordinances and for all resolutions or motions that create any
liability against or obligation on the part of the City, or for the expenditure or
appropriation of City money, and in all other instances where requests therefore
are made by any City Council member.
e. Subsidiary Motions:
When a motion is pending before the City Council, no other mention will be
considered except one of the following motions:
1) To adjourn
2) To lay on the table
3) To call the previous question, which, if seconded and approved by a 2/3
vote, will end debate on a topic
4) To postpone indefinitely
5) To postpone to a definite time
6) To amend the motion
7) To Adjourn: A motion to adjourn is always in order except when:
(i) A member is in possession of the floor
(ii) A motion on the main question is pending
(iii) A motion to reconsider is pending
f. Confidentiality:
City Council members will keep confidential all matters and documents discussed
in Executive Session or otherwise designated as confidential. That confidentiality
will be kept until the City Council has officially declared the matter or document
no longer is confidential. To this end, minutes of Executive Sessions should be
reviewed regularly to determine if they should be released to the public.
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g. Public Participation
1) Public Comments:
Comments from petitioners, residents, neighboring jurisdictions, the media
and guests may be made only when the applicable matter is on the agenda,
or during the time on the agenda reserved for public comment, or with the
recognition of the Mayor. Upon recognition by the Mayor, Council members
may ask clarifying questions but should refrain from debate and argument.
2) Public Hearings:
During public hearings conducted by the City Council, members of the public
will be permitted a reasonable opportunity to present relevant testimony
and evidence during the public hearing. Interested parties will also be
permitted the right to cross-examine witnesses upon request to the Mayor,
in writing (on a form provided by the City) prior to the beginning of the
hearing.
3) Rules Governing the Scope and Length of Comments:
The City Council may, from time to time, adopt specific rules governing public
comment on those matters, provided that such rules be fairly and equally
applied to all. Such rules may include, without limitation, requirements for
time limits, rules of decorum, and the use of audio or video recording
equipment; provided, however, that the use of audio or video recording
equipment will not be prohibited. Further, the City Council may set an
overall limit at any meeting on the time for public comments. In the absence
of any specific rules, the following general rules will apply: Individual
comments will be limited to one opportunity per person and to not more
than four minutes. The Mayor may also request that speakers not repeat or
reiterate what a previous speaker said.
4) Decorum.
No person may be discourteous, belligerent, impertinent, threatening,
disparaging, or otherwise uncivil. The Mayor may limit the comments of any
person who engages in such conduct. No person may continue to speak after
the Mayor has taken the floor from that person.
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5) Questions and Statements from the Floor:
All questions or statements from the floor must be directed to the Mayor.
The City Council has no obligation to answer questions during public
comment and may refer to staff to follow up with the speaker after the
meeting.
6) No Interruption of Speakers:
No City Council member should interrupt a speaker during a presentation.
The Mayor has the right to interrupt a speaker in order to enforce these or
other applicable rules.
7) Interruptions and Other Disturbances:
No person should interrupt the proceedings of a City Council meeting, or
public meeting, or cause any other form of disturbance or disruption. The
Mayor reserves the right to close public comment if, after issuing a warning,
audience members persist in cheering, booing or otherwise being disruptive.
8) Enforcement:
Any person violating the standards of process and decorum set forth in these
rules may be removed from the City Council chamber and City Hall at the
order of the Mayor.
VI. General Rules for City Council Member Conduct
a. Other Activities as City Representative:
City Council members may not act as or represent the official spokesperson or
representative of the City at any meeting, event, or forum unless and except
when authorized in advance to do so by the City Council or the Mayor. This rule
does not limit a City Council member from participating in informal or unofficial
meetings so long as it is clear that the City Council member is participating
individually and not directly on behalf of the City. City Council members are
discouraged from attending any City Board or Commission meeting to advocate
in favor of or in opposition to an issue, or on behalf of petitioners unless
expressly disclosed and approved by the City Council. This type of activity can
serve to pre-empt, and otherwise undermine, the work of the Board or
Commission and its citizen volunteer members. Every statement and activity
related to City business should be considered carefully, for all of them may have
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an impact on the City.
b. Ex-parte Contacts: MORE DISCUSSION NEEDED
City Council members are wise to avoid situations that could give rise to claims
of impropriety or that could mitigate the position of the City.
City Council members are discouraged from contacts with developers,
contractors, petitioners or other individuals or public officials that have, or may
have, official business with the City unless otherwise directed by the City Council.
Such meetings, if conducted at all, should include a relevant member of the City
Staff. At any such meeting, the City Council member must clearly show that he
or she is acting individually and not as a representative of the City Council or the
City. No confidential information of the City should be disclosed in any
communication.
c. Improper Influence:
City Council members should refrain from using their positions to improperly
influence the deliberations or decisions of City Staff, Boards, Commissions, or
non-City Council subcommittees of the City.
d. Commitment of City Resources:
No City Council member should commit the use of City Staff or other City
resource without first coordinating with the City Manager. City resources are
limited, and the City Manager is best able to determine the proper allocation of
City Staff time and other resources.
e. City Staff:
City Council members should not direct City Staff in the conduct of the duties
performed by City Staff. If a City Council member wishes to discuss an
operational or administrative matter, it should be discussed with a Department
Head or the City Manager.
f. Employee Performance:
Any concerns by City Council members regarding the behavior or performance of
City Staff will be directed to the City Manager privately and not shared with
anyone other than the City Manager, Mayor or City Attorney.
VII. General Rules for City Staff Conduct
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a. Respect for City Council:
City Staff should give the proper respect for the functions and membership of
the City Council, recognizing the fiduciary duties and stewardship responsibilities
borne by its members. City Staff should be open and forthright with the City
Council about pending matters of policy and City administration. City Council
members rely on the faithful counsel of the City Staff.
b. Informed City Council:
The office of the City Manager and all other City Departments, as appropriate,
should keep the City Council informed on a timely basis regarding pending
matters of policy and City administration. For each matter on which the City
Council must act following a hearing before a Board or Commission of the City,
the City Council will be provided with thorough information of the proceedings
of that Board or Commission and any recommendation thereon. The report
should include minority opinions, reports, and recommendations, if any. Good
decision-making results from correct and timely information.
c. Impartiality:
Information that is provided to a member of the City Council in response to a
request regarding pending matters of policy and administration should be made
available to all members of the City Council so that all have equal access to
relevant information.
d. Responsiveness to City Council:
City Staff should be prompt and thorough in following directions of the City
Council and implementing policy decisions of the City Council. City Staff should
act on such matters irrespective of personal opinions. The City Council relies on
the City Staff to faithfully carry out City policy.
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27
The City of Lake Forest
CITY COUNCIL
Proceedings of the Monday, June 18, 2018
City Council Meeting - City Council Chambers
CALL TO ORDER AND ROLL CALL: Honorable Mayor Lansing called the meeting to order at 6:31pm, and the
City Clerk, Margaret Boyer called the roll of Council members.
Present: Honorable Mayor Lansing, Alderman Beidler, Alderman Morris, Alderman Newman, Alderman
Rummel, Alderman Reisenberg, Alderman Preschlack and Alderman Buschmann.
Absent: Alderman Moreno
Also present were: Robert Kiely, Jr., City Manager; Julie Tappendorf, City Attorney; Catherine Czerniak,
Director of Community Development; Elizabeth Holleb, Director of Finance; Michael Thomas, Director of
Public Works; Pete Siebert, Fire Chief; Manager; Karl Walldorf, Chief of Police; Susan Banks,
Communications Manager; Mike Strong, Assistant to the City Manager, along with other members of City
Staff.
There were approximately 20 persons present in the Council Chamber.
CALL TO ORDER AND ROLL CALL 6:30pm
PLEDGE OF ALLEGIANCE was recited by all those present in the Chamber.
REPORTS OF CITY OFFICERS
COMMENTS BY MAYOR
A. CROYA- Ben Roemer, Scholarship Winner
-“Spirit of CROYA” Margot Martino Essay Contest
Mayor Lansing introduced CROYA Manager, Todd Nahigian. He gave an overview of recent events, service
work, and the public private partnerships that are established with CROYA. Ben Roemer was unable to
make the City Council meeting, Ryan Klein read the winning essay.
B. Consideration of a Joint Resolution of the City of Lake Forest, County of Lake and Lake
County Partners Regarding the Enhancement of Commuter Rail Service in Lake County, IL
Mayor Lansing reported during recent discussions with Metra officials regarding proposed improvements
along the MD-N Line as part of the Amtrak Hiawatha Environmental Assessment (“EA”), they emphasized
the operational and financial benefits of a universal crossover, which was included in their May 18, 2018
letter to IDOT and WisDOT. Representatives from many of the major corporations in the area have met with
Metra and Lake County officials to express their strong support for the installation of a universal crossover
as well as potential adjustments to the existing train schedule on the line. The proposed Resolution is
intended to initiate the creation of a public-private partnership to raise approximately $4.7 million in
funding for the universal crossover. This partnership would include Metra, IDOT, Canadian Pacific, the City,
Lake County, Lake County Partners and multiple employers within a five mile radius of the Telegraph Road
Station.
Mayor Lansing reported that since the introduction of the Sunrise Express reverse commuter rail service on
the Metra Union Pacific North Line in April 2014, the City has been exploring opportunities to improve
commuter service on the Metra Milwaukee District North Line. To date there is no southbound rail service
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Proceedings of the Monday, June 18, 2018
Regular City Council Meeting
from the Telegraph Rd. station to the City of Chicago between the hours of 4:47pm and 7:59pm. This has
been problematic for the corporate businesses located in Conway Office Park and surrounding area. The
installation of a universal crossover north of the Telegraph Road Station will allow northbound Metra trains
to “turn” and fill the service gap.
City Manager Robert Kiely reported that the Resolution will be presented to the Lake County Partners Board
and the Lake County Board for their consideration and approval. Since the funding for this project was not
contemplated until after FY19 budget had been prepared, it is too early in the process to know if the project
would commence in FY19 or FY20. The project will not proceed until the funding has been secured. The lead
time for ordering the crossover could be up to one-year. Further, the allocation of cost is still very much in
flux. The conceptual division of cost is as follows: Public - $2.0 million and Private - $2.7 million.
The $2 million of public funding would be split by Metra, IDOT, Canadian Pacific, City of Lake Forest and Lake
County. The City would be tentatively committing up to $500,000 or approximately 10% of the total project
cost. A final funding commitment decision by the City Council would be required at a later date when other
public and private parties have pledged their commitment and an Intergovernmental Agreement with Metra
would need to be developed and entered into.
City Manager Kiely cleared confusion around the EA, stating that the crossover switch has nothing to do
with the third track, and that the cross over switch was one of the ten projects improvements looked at as
part of the Hiawatha Amtrak EA.
Russ Graich, of AbbVie, gave an overview of its presence in Lake County and the challenges in drawing
young professionals, they and many others in the area face due to limited commuting options. Mr. Graich
stated that 14 bus service routes are used to make rail commuting available to its employees, and explained
that the limited service limits the “talent pool” in which they and others in the office park are able to pull
from.
Mayor Lansing introduced Mr. Kevin Considine of Lake County Partners. Mr. Considine reported that in
order to raise the economic vitality hundreds of businesses locate in Lake County each year to access young
professionals. Young professionals look at transportation first when deciding to live in Lake County. Lake
County Partners has reported on 1400 responses to a transportation survey that identifies a service
/transportation gap.
The City Council had lengthy discussion on:
Metra’s willingness to change scheduling.
Metra’s openness to alternatives and not waiting on grant funding (TIGER GRANT).
The cost to Metra to cover the cost of $40 million dollars to add another crew for service gaps.
The demand for the additional service.
Settlers Square economic development.
The Lake County talent pool.
Fundraising.
Keeping Lake Forest as a competitive location in which to live, work and play.
The universal crossover and how it relates to the EA
City Manager Robert Kiely and Mayor Lansing both reiterated that the Resolution was not an approval to
spend money, rather that it would allow The City of Lake Forest to collaborate with the County, Lake County
Partners, and Lake County Businesses to raise the necessary funding to add a universal crossover south of
Rte. 60 in Lake Forest.
Mayor Lansing asked if there was anyone from the public who wanted to comment.
David Rose, offered his opinion to the City Council on- failure of The City of Lake Forest government and
failure of the Lake Forest Caucus, that the railroad is not consistent with the community.
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Proceedings of the Monday, June 18, 2018
Regular City Council Meeting
Joanne Desmond, offered her opinion to the City Council on- concerns about the process of this topic,
wanted previous discussion on this topic.
Mayor Lansing thanked them both for their comments.
Mayor Lansing asked for a motion.
COUNCIL ACTION: Approval of Joint Resolution Regarding the Enhancement of Commuter Rail Service in
Lake County, IL.
Alderman Reisenberg made a motion for approval of Joint Resolution Regarding the Enhancement of
Commuter Rail Service in Lake County, IL., seconded by Alderman Newman. The following voted “Aye”:
Aldermen Beidler, Morris, Newman, Rummel, Reisenberg, Preschlack and Buschmann. The following voted
“Nay”: None. 7- Ayes, 0 Nays, motion carried.
COMMENTS BY CITY MANAGER
City Manager Kiely welcomed the new City Attorney, Julie Tappendorf.
COMMENTS BY CITY COUNCIL MEMBERS
FINANCE COMMITTEE
A. Consideration of the Annual Appropriation Ordinance for FY2019 and Approval of Rollovers
(First Reading)
Elizabeth Holleb, Finance Director, reported that this item will return to the Council with a public hearing on
July 16. She reported that the City Council approved a comprehensive fiscal plan in May 2108 and while the
Annual Municipal Budget represents the City’s financial “plan” for expenditures over the course of the fiscal
year, the annual Appropriation Ordinance is the formal legal mechanism by which the City Council
authorizes the actual expenditures of funds budgeted in the annual budget. It appropriates specific sums of
money by object and purpose of expenditures. State statutes require the passage of an Appropriation
Ordinance by the end of July.
Ms. Holleb reported that the budget and Appropriation Ordinance do differ. The Appropriation Ordinance
includes the Library, which was not included in the budget approved at the May 7, 2018 City Council
meeting. The Library expenses are approved by the Library Board. Debt service payments are included in
the budget, but are excluded from the Appropriation Ordinance. The ordinances approving the debt issues
serve as the legal authorization for these annual expenditures, additionally rollovers are items that were
included in the prior year’s budget and Appropriation Ordinance that either weren’t started or completed.
Ms. Holleb stated the Appropriation Ordinance provides for a 10% “contingency” above the budgeted
expenditures. Each separate fund includes an item labeled “contingency” with an appropriate sum
equivalent to 10% of the total funds budgeted. This practice has been followed for more than thirty years
and has worked very efficiently, while still providing for complete City Council control over budgeted
expenditures.
Mayor Lansing asked if there was anyone from the public who wanted to comment. Seeing none, he asked
for a motion.
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Proceedings of the Monday, June 18, 2018
Regular City Council Meeting
COUNCIL ACTION: Approve first reading of the FY2019 Appropriation Ordinance (page 22) and the rollovers.
A copy of the ordinance is available for review by the public in the City Clerk’s office. A public hearing will
be conducted on July 16, 2018 in conjunction with second reading of the ordinance.
Alderman Morris made a motion to approve first reading of the FY2019 Appropriation Ordinance and the
rollovers, seconded by Alderman Newman. The following voted “Aye”: Aldermen Beidler, Morris, Newman,
Rummel, Reisenberg, Preschlack and Buschmann. The following voted “Nay”: None. 7- Ayes, 0 Nays, motion
carried.
OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
Kim Reich offered her opinion to the City Council on- the withdrawal of a petition related to a berm in Oak
Knoll Woodlands, flooding and reimbursement to the City for a sound expert.
ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the June 4, 2018 City Council Meeting Minutes
2. Approval of Engagement Letter dated June 11, 2018 with Victor Filippini
3. Consideration and Approval of the Prevailing Wage Resolution as required by State Statutes
4. Approval of an agreement to maintain Membership in Northeastern Illinois Regional Crime
Laboratory (NIRCL) and Authorizing Payment of the FY2019 Membership Fees.
5. Authorization to Issue Reimbursement for City Work Costs Related to Clean-up of the City’s
Former Municipal Services Site
6. Consideration of an Ordinance Approving a Recommendation from the Building Review
Board. (First Reading and if Desired by the City Council, Final Approval)
7. Consideration of Ordinances Approving Recommendations from the Zoning Board of
Appeals. (First Reading, and if Desired by the City Council, Final Approval)
8. Consideration of an Ordinance Conveying Certain Surplus Real Estate Owned by the City to
the Park Lane Home Owners’ Association (First Reading and if Desired by the City Council,
Final Approval)
COUNCIL ACTION: Approval of the eight (8) Omnibus items as presented
Mayor Lansing asked members of the Council if they would like to remove any item or take it separately.
Seeing none, Mayor Lansing asked for a motion to approve the eight (8) Omnibus items as presented.
Alderman Beidler made a motion to approve the eight (8) Omnibus items as presented, seconded by
Alderman Rummel. The following voted “Aye”: Aldermen Beidler, Morris, Newman, Rummel, Reisenberg,
Preschlack and Buschmann. The following voted “Nay”: None. 7- Ayes, 0 Nays, motion carried.
Information such as Purpose and Action Requested, Background/Discussion, Budget/Fiscal Impact,
Recommended Action and a Staff Contact as it relates to the Omnibus items can be found on the agenda.
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Proceedings of the Monday, June 18, 2018
Regular City Council Meeting
ORDINANCES
1. Consideration of an Ordinance Amending Sections 94.15 through 94.21, titled “Open Fires”
of the City Code (First Reading)
Catherine Czerniak, Director of Community Development, gave an overview of the proposed changes that
give priority to life safety, while at the same time, providing some latitude for open fires, within the City
limits, for recreational, ceremonial and natural area maintenance purposes. In summary, the amendments
permit open fires on residential properties with some limitations.
Open fires are permitted on residential properties of 60,000 square feet or larger under the following
conditions:
Conformance with established setbacks from structures and property lines.
Dry, seasoned wood is used for fuel; no burning of trash, leaves or other debris.
The fire is attended constantly until extinguished.
Fire extinguishing equipment or material is nearby.
Fires in portable, covered outdoor fire pits or containers are permitted on residential properties of any size
under similar conditions as those noted above.
Fires not meeting the above conditions may still be permitted subject to review by the Fire Chief and the
issuance of required permits.
Pete Siebert, Fire Chief reported that the permit, fines and processes are not efficient, and that the
proposed language would be effective.
The City Council had discussion on enforcement.
Mayor Lansing asked if there was anyone from the public who would like to comment on the topic. Seeing
none, he asked for a motion.
COUNCIL ACTION: Grant first reading of an Ordinance amending Sections 94.15 through 94.21, titled
“Open Fires” of the City Code.
Alderman Preschlack made a motion to Grant first reading of an Ordinance amending Sections 94.15
through 94.21, titled “Open Fires” of the City Code, seconded by Alderman Newman. Motion carried
unanimously by voice vote.
2. Consideration of Two Recommendations Related to Construction of a Hyatt Place Hotel, in
Conway Park. (Waive First Reading of an Ordinance and if Desired by the City Council, Grant
Final Approval and if Desired by the City Council, Approve a Resolution by Motion)
Catherine Czerniak, Director of Community Development, reported that this is a recommendation from the
Building Review Board in support of the design aspects of a Hyatt Place Hotel proposed for construction in
Conway Park. In 1993 when the property along the Route 60 Corridor near the Tollway was annexed, a
framework was put in place to support development of the area with a first-class corporate office park and
supporting ancillary uses. Today, Conway Park, along with the office buildings located on the south side of
Route 60, is home to many corporate headquarters reflecting that early vision. The business park is nearly
built out with 13 office buildings of various sizes. A hotel is a permitted use in Conway Park and a hotel was
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Proceedings of the Monday, June 18, 2018
Regular City Council Meeting
always envisioned along the Route 60 Corridor to serve businesses, residents and visitors. A Hyatt Place
Hotel is proposed on one of the last remaining vacant parcels in Conway Park. The Hotel will include 158
rooms, meeting rooms, a fitness center, pool and small restaurant.
Earlier this year and over the course of two meetings, the Building Review Board considered a request for
approval of the design aspects of the proposed Hyatt Place Hotel. At the Board’s request, the details of the
design, exterior materials and overall site plan were refined after the first meeting and enhanced plans were
presented to the Board for a final recommendation at the March, 2018 meeting that included landscape,
lighting and signage.
Ms. Czerniak reported that the Council is also asked to consider a limited-term financial incentive package
for the hotel to support the following goals: 1) to provide a hotel, as an amenity in Conway Park in response
to requests from current corporate tenants of the Park; 2) to meet the needs of residents and visitors who
currently seek lodging outside of the community; and 3) to expand on and diversify commercial
development within the City. A vibrant Route 60 Corridor is consistent with the community goals identified
in the City’s recently updated Strategic Plan. The Business and Economic Vitality Chapter of the Plan states
that the City “will use economic development tools” to engage property owners, take advantage of
opportunities and overcome challenges in achieving desired development. The Plan specifically speaks to
working with entrepreneurs and employers who complement the City’s long-term economic vision in order
to establish and maintain an appropriate balance between the residential and commercial tax bases in the
community. The Plan also directs that the City will engage in proactive economic development efforts to
attract key businesses in commercial corridors. Council consideration of an incentive package to achieve
development of a hotel in the Route 60 Corridor, is consistent with the directives in the Strategic Plan.
In February, 2018, with the approval of the City Council, Michael Tobin, CBRE, was engaged to assist the City
in considering the request for financial incentives. Mr. Tobin and his colleagues worked with the Mayor,
Finance Committee Chairman, City Attorney and City staff to assure that the right questions were asked of
the developer, complete information obtained and a thorough analysis conducted of both the short-term
and long-term benefits of the proposed hotel development to the overall community.
City Manager, Robert Kiely gave an overview of the financial benefits the City will realize in the short-term,
and over the longer term, as a result of the proposed Hyatt Place
The City Council had lengthy discussion on the following:
Impressed by the analysis of City staff and Michael Tobin.
How common this type of negation is in the Hotel industry.
The incentive package as a whole.
Vibrancy to the west side of town.
The stability of the project.
Mr. Purinton spoke on behalf of Janko Group, on the market demand for the project and answered
questions of the Council relating to risk and where their data comes from.
The City Council continued discussion on the following:
Structure and scale.
Signage facing the tollway.
Deerpath Inn and no incentives.
Franchise and management.
Remodeling schedule.
Possibilities for the additional acreage for development in the future.
Since there were late changes to the Resolution, action on approval will be tabled and the Council will hear
first reading only of the Building Review Board Ordinance.
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These items will be back in front of the Council at its July 2 meeting.
Mayor Lansing asked if there was anyone from the public who wanted to comment on the topic. Seeing
none, he asked for a motion for first reading only.
COUNCIL ACTION: If determined to be appropriate by the City Council:
1. Waive first reading and grant final approval of the Ordinance in accordance with the Building
Review Board’s recommendation.
Alderman Morris made a motion to approve first reading of the Ordinance in accordance with the Building
Review Board, seconded by Alderman Buschmann. The following voted “Aye”: Aldermen Beidler, Morris,
Newman, Rummel, Reisenberg, Preschlack and Buschmann. The following voted “Nay”: None. 7- Ayes, 0
Nays, motion carried.
2. Approve a Resolution by Motion, directing the City Manager and Attorney Victor Filippini to
finalize an Agreement with Janko LLC, substantially in conformance with the Term Sheet
presented to the City Council, and authorize the Mayor to enter into the Agreement on behalf of
the City.
This portion will be tabled until the July 2 City Council meeting.
NEW BUSINESS
1. Approval for the Friends of Lake Forest Parks and Recreation Foundation to change the
venue of their annual Oktoberfest event to City Hall, 220 E. Deerpath Rd.
Rick Amos of the Friends of Lake Forest Park and Recreation Foundation reported that the Friends of Lake
Forest Park and Recreation Foundation is requesting approval to move their annual Oktoberfest Fundraising
event from the Lake Forest Recreation Center, 400 Hastings Rd, Lake Forest, IL to City Hall, 220 E. Deerpath,
Lake Forest, IL.
The Foundation has hosted Oktoberfest events in 2016 and 2017 at the Recreation Center, 400 Hastings Rd.
After flooding rains in 2016, the Foundation moved their event from the grass fields to the parking lot south
of the Fitness Center at the Recreation Center. After the 2017 event, a suggestion was made to move
Oktoberfest into a more central location in the heart of the City of Lake Forest to create an open, welcoming
community event that is accessible to all.
After discussions with the Foundation Board, Staff, and representatives from the Police and Fire
Departments it was determined that moving Oktoberfest to the City Hall parking lot location would be good
for the event allowing to double the size of the tent, residents, the Foundation, Parks and Recreation, and
the City.
Currently, the Foundation hosts the Annual Tree Lighting Ceremony in Market Square. Since the Foundation
has taken over the logistics for the Tree Lighting celebration, the community has seen an increase in
activities and participation throughout the event. The Foundation also supports the Concerts in the Square
activities throughout the summer months. Mr. Amos thanked all the staff who are part of the success of
each of their events.
The City Council had discussion on the date and time (September 22, 5-10 pm), benefit to the merchants,
parking, parking lot use and comfort stations.
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Mayor Lansing asked if there was anyone from the public who wanted to comment on the topic. Seeing
none, he asked for a motion.
COUNCIL ACTION: Approval for the Friends of Lake Forest Parks and Recreation Foundation to change the
venue of their annual Oktoberfest event to City Hall, 220 E. Deerpath Rd.
Alderman Rummel made a motion for the approval for the Friends of Lake Forest Parks and Recreation
Foundation to change the venue of their annual Oktoberfest event to City Hall, 220 E. Deerpath Rd,
seconded by Alderman Buschmann. Motion carried unanimously by voice vote.
2. Adoption of Decision Making Parameters
Mayor Lansing reported that he and Alderman Beidler combined all the input into the document and the
final draft is presented this evening. Additionally the Decision Making Parameters will be at the end of each
City Council packet, and viewed/renewed on an annual basis. Alderman Beidler added that these
Parameters will also apply to all Boards and Commissions.
Mayor Lansing asked if there was anyone from the public who wanted to comment on the topic. Seeing
none, he asked for a motion.
COUNCIL ACTION: Approval of the Proposed Decision Making Parameters
Alderman Reisenberg made a motion to approve the Proposed Decision Making Parameters, seconded by
Alderman Newman. The following voted “Aye”: Aldermen Beidler, Morris, Newman, Rummel, Reisenberg,
Preschlack and Buschmann. The following voted “Nay”: None. 7- Ayes, 0 Nays, motion carried.
8. ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
Alderman Morris reported on “Safety Town” that was recently held at Gorton .Alderman Buschmann
reported on the “Meet the Fleet” event. Both Alderman thanked staff for their work.
Mayor Lansing reported there will be no further business following executive session. Mayor Lansing asked
for a motion.
1. EXECUTIVE SESSION pursuant to 5 ILCS 120/2 (c), (1), The City Council will be discussing
personnel
Alderman Rummel made a motion to adjourn into executive session pursuant to 5 ILCS 120/2 (c), (1), The
City Council will be discussing personnel, seconded by Alderman Beidler. The following voted “Aye”:
Aldermen Beidler, Morris, Newman, Rummel, Reisenberg, Preschlack and Buschmann. The following voted
“Nay”: None. 7- Ayes, 0 Nays, motion carried.
Adjournment into Executive Session at 9:13pm
Reconvene into Regular Session at 9:40pm
ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
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ADJOURNMENT
There being no further business Mayor Lansing asked for a motion. Alderman Buschmann made a motion to
adjourn, seconded by Alderman Newman. Motion carried unanimously by voice vote at 9:41 pm
Respectfully Submitted
Margaret Boyer, City Clerk
A video of the City Council meeting is available for viewing at the Lake Forest Library and on file in the Clerk’s
office at City Hall. You can also view it on the website by visiting www.cityoflakeforest.com. Click on I Want
To, then click on View, then choose Archived Meetings Videos.
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PROPOSED HYATT PLACE HOTELDRAFTLAKE FOREST, ILLINOISESTIMATED TOTAL 20-YEAR TAX REVENUE TO LAKE FOREST FROM HYATT PLACE PROJECTear1234567891011121314151617181920ATax RateHotel TaxCityShare93,333111,176125,790126,557130,393133,652136,994140,418143,929147,527158,065312,107453,916465,264476,895488,81850^,038513.564526,403539,5635,725,403Bor City ShareRealEstateTaxes300,000355,000355,000365,000375,000384,375393,984403,834413,930424,278434,885445,757456,901468,324480,032492,032504,333516,942529,865543,112c19.74%RE TaxCityShare (1)59,23070,08870,08872,06374,03775,88877,78579,7308^,72383,76685,86088,00790,20792,46294,77497,14399,572102.061104,612107,2281,706,323DRentals/OtherIncome (2)119,352201,833305,502318,002327,641335,832344,228352,833361,654370,695379,963389,462399,198409,178419,408429,893440,640451,656462,948474,521b1.50%Safes TaxCityShare1,7903,0284,5834,7704,9155,0375,1635,2925,4255,5605,6995,8425,9886,1386,2916,4486,6106,7756,9447,118109,417FUtiliExpenses (3)235,509257,058277,429280,524287,758294,952302,326309,884317,631325,572333,711342,054350,605359,370368,355377,563387,003396,678406,595416,759G5.00%Utili TaxCityShare {3}11,77512,85313,871^4,02614,38814,74815,11615.49415,88216,27916,68617,103^7,53017,96918,41818,87819,35019,83420,33020,83833^,367A+C+E+GTotalCitySharef^,im197,145214,332217,415223,732229,325235,058240,935246,958253,132266,3^0423,059567,641581.832596,378611,2SV626,5642,234658,290674,7477,872,509NotesIncludes Municipalilty's shares of total Real Estate Taxes Including Fire and Parks. Upfront permit fees will be1 an additional $270,000.The figures shown in Column D are the annual net revenues Janko estimates to derive from F&B, Telephone,2 Gara e, Rentals & Other IncomeThe figures shown in Column F are Janko's estimated annual Energy & Utility expenes, including electricity,3) water and gas.The rate shown is an estimated average of taxes levied by the City. Actual utility rates vary.6/15/201872
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THE CITY OF LAKE FOREST
RESOLUTION NO. ______
A RESOLUTION APPROVING ECONOMIC INCENTIVE AGREEMENT
(Conway Office Park Hotel)
WHEREAS, The City of Lake Forest (“City”) is an Illinois home-rule municipality and is
authorized pursuant to its home-rule authority and 65 ILCS 5/8-1-2.5 to enter into agreements in
furtherance of economic development objective of the City; and
WHEREAS, in 1988, the City annexed the Conway Park at Lake Forest development
along Illinois Route 60 and the Tri-State Tollway (“Conway Park”), and the annexation agreement
for Conway Park contemplated the development of an upscale hotel within the office park that
would complement the high-quality office buildings to be developed in Conway Park and to serve
Conway Park, the City, and visitors to neighboring communities; and
WHEREAS, for more than 20 years, the development of an upscale hotel in Conway Park
has been hampered for various reasons, including economic factors; and
WHEREAS, a vibrant Route 60 Corridor is consistent with the community goals identified
in the City’s recently updated Strategic Plan; and
WHEREAS, the Business and Economic Vitality Chapter of the Strategic Plan states that
the City “will use economic development tools” to engage property owners, take advantage of
opportunities, and overcome challenges in achieving desired development; and
WHEREAS, Janko Group LLC (“Janko”) has proposed to develop an upscale hotel in
Conway Park (the “Proposal”), but as part of such Proposal Janko has requested the City to
provide financial assistance in connection with its initial operation and management; and
WHEREAS, the corporate authorities of the City have determined that it is in the best
interests of the City and its residents to enter into an economic incentive agreement with Janko
in substantially the form attached hereto as Exhibit A (the “Agreement”) to ensure the successful
operation of the Proposal;
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NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of The City of
Lake Forest, County of Lake, State of Illinois, as follows:
SECTION 1: Recitals. The foregoing recitals are incorporated into this Resolution as
findings of the Mayor and City Council.
SECTION 2: Approval; Authorizations.
(a) The City Council hereby approves the Agreement in substantially the form
attached hereto as Exhibit A, as determined by the Mayor and City Manager in consultation with
counsel.
(b) The Mayor and City Clerk are hereby authorized and directed to execute and
attest, on behalf of the City, the Agreement upon receipt of a signed original of the Agreement
from Janko (or an affiliated entity).
(c) The Mayor, Clerk, and City Manager are hereby authorized and directed to take
all reasonable and necessary actions consistent with the terms of the Agreement.
SECTION 3: This Resolution shall be in full force and effect upon its passage and
approval in the manner provided by law; provided, however, that this Resolution (and the
authorizations granted herein) shall be of no force or effect unless Janko delivers the executed
Agreement to the City Clerk on or before 30 September 2018.
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PASSED THIS ___ DAY OF _______, 2018.
AYES ( )
NAYS ( )
ABSENT ( )
APPROVED THIS _____ DAY OF _______, 2018.
Mayor
ATTEST:
City Clerk
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EXHIBIT A
Economic Incentive Agreement
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Prepared for and after
recording return to:
Robert R. Kiely, Jr.
City Manager
The City of Lake Forest
220 East Deerpath
Lake Forest IL 60045
Recorders Use Only
ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT
This ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT (“Agreement”) is made
and entered into as of the ____ day of ___________, 2018 (the “Effective Date”), by and
between THE CITY OF LAKE FOREST, an Illinois home-rule municipal corporation (“City”),
and JANKO GROUP LLC, an Illinois limited liability company (“the “Owner”) (collectively, the
City and the Owner shall hereinafter be referred to as the “Parties”).
IN CONSIDERATION OF the recitals and the mutual covenants and agreements set
forth in this Agreement, and pursuant to the City's home rule and statutory powers, the Parties
agree as follows:
SECTION 1. RECITALS.
A. Owner is the legal and/or beneficial owner of certain real property in Lake Forest,
Illinois, and legally described in Exhibit A attached hereto (“Property”).
B. The Property is zoned OR-2, which zoning authorizes hotels as a permitted use.
C. The Property is located within an office park development known as Conway
Park at Lake Forest that is located along Illinois Route 60 and the Tri-State Tollway (“Conway
Park”). The City annexed Conway Park in 1988 with the contemplation that an upscale hotel
would be developed within the office park that would complement the high-quality office
buildings to be developed in Conway Park and to serve Conway Park, the City, and visitors to
neighboring communities.
D. The Property is one of the few remaining lots to be developed in Conway Park.
E. For more than 20 years, the development of an upscale hotel in Conway Park
has been hampered for various reasons, including economic factors.
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F. The City has recognized that a vibrant Route 60 Corridor is consistent with the
community goals identified in the City’s recently updated Strategic Plan, including the City’s use
of “economic development tools” to engage property owners, take advantage of opportunities,
and overcome challenges in achieving desired development.
G. Owner has presented plans to the City for the development of a “Hyatt Place”
hotel (the “Hotel Development”) as more fully described in the City’s Ordinance No.____ (the
“BRB Ordinance”), which has approved the design elements of the Hotel Development. The
Owner has determined, and the City acknowledges, that following the Start Date (as hereinafter
defined) operating a hotel of the quality and character of the Hotel Development cannot be fully
and effectively accomplished at the outset without certain economic assistance.
H. The Hotel Development on the Property is expected to provide a much-needed
amenity to Conway Park and the west side of the City, and it will be a catalyst for other
economic activity in the City that will generate revenue for the City and its local economy.
I. The corporate authorities of the City (the “City Council”) have determined that it
is in the best interests of the City and its residents to provide incentives for Owner as set forth in
this Agreement to ensure that the Hotel Development, once developed, will operate consistent
with the character and quality necessary to complement the office development in Conway
Park. The City recognizes that the development of the Hotel Development on the Property will
enhance the overall economic vitality of the commercial sector and tax base of the City and
serve to enhance areas adjacent to the Property.
J. The City and Owner acknowledge and agree that this Agreement is in the City’s
best interest and, without the incentives provided in this Agreement, it would not be possible for
the Owner to pursue and commit to the high-quality operation of the Hotel Development on the
Property consistent with the “Hyatt Place” brand and in accordance with all applicable federal,
State, and local laws, rules, ordinances, or regulations, including without limitation the BRB
Ordinance, City Code, the City’s Zoning Ordinance, and Building Code (the “Requirements of
Law”).
K. Subject to the terms of this Agreement regarding the operational incentives,
Owner is willing to develop the Hotel Development on the Property so as to preserve and
strengthen the tax base and commercial sector of the City.
SECTION 2. PURPOSE AND AUTHORITY.
A. Purpose. The Parties hereby mutually agree that, in consideration of the Owner
developing the Hotel Development of the quality and character of the “Hyatt Place” brand and in
accordance with the BRB Ordinance and other Requirements of Law, and the benefits that such
operation yields to the City in the nature of maintaining and enhancing employment
opportunities, the tax base, and the commercial vitality of the City, this Agreement is intended to
provide a mechanism whereby the Owner will receive Permit Fee Benefits (as hereinafter
defined) and the City may make Incentive Payments (as hereinafter defined) to Owner. The
Parties covenant and agree that the additional tax revenues to be generated from the operation
of the Hotel Development on the Property and related employment opportunities are significant
benefits to the City and its residents, and that the Incentive Payments and Permit Fee Benefits
contemplated by this Agreement are for a valid and important public purpose.
B. Authority. The City is authorized to enter into this Agreement pursuant to its
home rule powers, as well as Section 8-1-2.5 of the Illinois Municipal Code, 65 ILCS 5/8-1-2.5.
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SECTION 3. PERMIT FEE BENEFITS. The Owner shall submit final development and
building plans for the Hotel Development in substantial conformity with the BRB Ordinance and
consistent with the Requirements of Law, which plans shall be subject to the review and
approval of the City (the “Approved Plans”). In connection with the application for and
issuance of permits by the City to Owner based upon the Approved Plans, the standard building
permit fees and other customary fees required by the City’s Community Development
Department and identified by category in Exhibit B attached hereto (the “Community
Development Fees”) shall be discounted by twenty-five percent (25%), and such discounted
Community Development Fees shall herein be referred to as the “Permit Fee Benefits.”
SECTION 4. FILING OF HOTEL TAX RETURNS. The Owner acknowledges that the
City has established a hotel tax as set forth in Section 39.125 of the City Code upon all persons
engaged in the City in the business of renting, leasing or renting rooms in a hotel based upon
gross rental receipts (the “Hotel Tax”). The Hotel Tax requires operators of hotels to file
monthly returns reporting such gross rental receipts and remitting the amount of taxes due
pursuant to Section 39.125 of the City Code (the “Hotel Tax Returns”). The Owner agrees to
comply fully with the requirements of the Hotel Tax as set forth in Section 39.125 of the City
Code (or any successor provision).
SECTION 5. LIMITED OBLIGATION. This Agreement and the Incentive Payments
due hereunder are a limited obligation of the City. The City’s obligation to make annual
Incentive Payments (as hereinafter defined) pursuant to this Agreement is limited to payment by
the City from Hotel Tax revenues received from the Property (or from the Owner, operator, or
manager of the Property or the Hotel Development). The City shall be under no obligation to
make payments required herein from any other source or funds held by the City. This is not to
be construed as a full-faith and credit or general obligation of the City for any purpose.
SECTION 6. INCENTIVE PAYMENTS.
A. Prerequisites. The Owner shall timely undertake the following activities as
conditions precedent to the receipt of any Incentive Payments:
1. No later than May 31, 2019, the Owner shall apply for a building permit for the
Hotel Development in accordance with the BRB Ordinance and the
Requirements of Law, unless such time period is extended by resolution of the
City Council.
2. Unless otherwise extended by resolution of the City Council, within 120 days
after the issuance of the building permit(s) for the Hotel Development (the
“Construction Commencement Date”), the Owner shall commence
construction of the Hotel Development, and thereafter diligently pursue such
construction to completion. It is anticipated that the Hotel Development will be
completed within 15 months after the Construction Commencement Date or by
December 31, 2020, whichever is later.
3. Upon completion or substantial completion of the Hotel Development, the Owner
shall commence operations of the Hotel Development. The earlier of (a) the
commencement of operations of the Hotel Development, and (ii) the issuance of
a final certificate of occupancy for the Hotel Development by the City shall
hereinafter be referred to as the “Start Date.”
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4 Any of the time periods in Subsections 6.A.1-3 may be extended by the City
Council upon request from the Owner. In addition, to the extent that an
extension relates to a force majeure event or conditions, the Owner shall notify
the City promptly (and in no event later than 30 days after the end such force
majeure event or condition), and Owner shall be entitled to an extension equal in
length to the duration of the force majeure event or condition.
5. Except as otherwise expressly provided in this Agreement, at all times during the
term of this Agreement beginning with the Start Date, the Owner [or any entity
controlling, controlled by, or under common control with the Owner (an “Owner’s
Affiliate”) or an “Approved Manager” (as hereinafter defined)] shall be the
manager of the Hotel Development.
6. Except as otherwise expressly provided in this Agreement, at all times during the
term of this Agreement beginning with the Start Date, the Hotel Development
shall be operated as a “Hyatt Place” hotel or an “Approved Brand” (as hereinafter
defined).
B. Calculation and Payment of Incentive Payments. At the end of the calendar year
following the Start Date, and at the end of each successive calendar year during the term of this
Agreement, the City shall calculate the gross rental receipts reported on the Hotel Tax Returns
for the Hotel Development during the year in question (the “Hotel Revenues”). Provided that all
Hotel Taxes due to the City from or with respect to the Property or the Hotel Development have
been paid by or on behalf of the Owner in accordance with the Requirements of Law and is
otherwise in compliance with the terms of this Agreement, the City shall pay to the Owner, in
consideration of Owner’s operation of the Hotel Development, an “Incentive Payment” no later
than April 15 following the end of a calendar year. The Incentive Payment shall equal 3.25% of
the Hotel Revenues, but in no event shall the Owner receive more than $2,800,000.00 in total
Incentive Payments during the term of this Agreement (the “Incentive Cap”).
C. Remittance of Incentive Payment. The City shall remit any Incentive Payment for
Owner payable to:
Janko Group LLC
2610 Lake Cook Road
Suite 100
Riverwoods, Illinois 60015
Attention: Chief Financial Officer
provided that the name of the payee or the address to which the Incentive Payment shall be
sent may be changed by notice signed by a representative of the Owner and delivered to the
City in the manner set forth in Section 21 of this Agreement.
D. Amount of Incentive Payments. When the Incentive Cap has been reached, or
after the City has remitted fifteen Incentive Payments relating to the 15 years following the Start
Date, or upon the expiration or termination of this Agreement, no further sums will be due or
owing to the Owner, and the City will not make any further Incentive Payments or any other
payments to the Owner. Any amounts due from the City to the Owner under this Agreement
shall not accrue interest, regardless of whether such payments are made by the payment due
date or thereafter.
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E. Conditions for Receiving an Incentive Payment. No Incentive Payment will be
made to the Owner if, at the time of remittance, the Owner has been notified of a violation of any
Requirement of Law relating to the Hotel Development or any violation of this Agreement and
such violation has not been cured in accordance with this Agreement.
F. Termination or Transfer of Management. If the Owner (or an Owner’s Affiliate)
discontinues its management role in the Hotel Development and is not replaced with a manager
approved by Hyatt Place Franchising, L.L.C. (or the then current franchisor of an Approved
Brand as authorized under this Agreement)(any successor manager so approved is referred to
herein as an “Approved Manager”), no further Incentive Payments will be paid by the City,
unless the City Council approves an amendment to this Agreement authorizing the continuation
of Incentive Payments.
G. Change of Hotel Development Brand. If the Owner modifies the Hotel
Development to a product other than a “Hyatt Place” hotel [or a comparable hotel product that
either is (i) in the same or higher category of Hyatt Place as reflected in the chain scales
published by Smith Travel Research (i.e., the STR chain scales) or as determined by the City,
or (ii) is at least in the “Upscale” category of the STR chain scales, whichever is the more highly
rated][any hotel described in clause (i) or (ii) is referred to herein as an “Approved Brand”], no
further Incentive Payment will be paid by the City.
H. Reimbursement of Incentive Payments. In the event that the Hotel Development
is no longer operated under the “Hyatt Place” brand or another Approved Brand at any time
during the first five years in operation (a “Brand Termination”), then Owner will be required to
return a portion of the value of the Permit Fee Benefits and Incentive Payments received
theretofore (the “Total Incentive”) from the City based on the following schedule:
If the Brand Termination occurs within
the first year following the Start Date…
Owner shall reimburse the City 100% of
the Total Incentive
If the Brand Termination occurs after the
first year but before the end of the third
year after the Start Date…
Owner shall reimburse the City 67% of
the Total Incentive
If the Brand Termination occurs after the
end of the third year but before the end
of the fifth year after the Start Date …
Owner shall reimburse the City 33% of
the Total Incentive
Notwithstanding the preceding terms of this Section 6.H, in the event that the Brand Termination
results from general adverse economic conditions in the hotel industry over which the Owner
has no control, the period during which such adverse conditions exist shall suspend the
operation of this Section 6.H and the period during which any such reimbursement might occur
shall be tolled.
The Owner acknowledges and agrees on its own behalf and on behalf of its heirs,
successors, and assigns that the City’s right to the return of a portion of the Total Incentive
constitutes both a personal obligation of Owner and a lien against the Property, and the Owner
agrees and consents to the City’s recording only of a memorandum of agreement of this
Agreement with the Lake County Recorder of Deeds to establish the City’s lien rights to the
Incentive Payments (up to the Incentive Cap amount) that may be subject to the refund terms of
this Section 6.H of this Agreement. Upon the written request of the Owner, the City agrees to
subordinate its lien interest to any mortgages on the Property as of the Start Date (a “Superior
Mortgage Lien”), as well as any other mortgage replacing a Superior Mortgage Lien [to the
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extent that any such replacement mortgage secures the repayment of a loan in the original
maximum principal amount not in excess of seventy-five percent (75%) of the value of Hotel
Development as of the date of such replacement mortgage based on a certified appraisal from
an MAI-appraiser]. The City further agrees to execute estoppel certificates relative to this City
lien upon the reasonable request of the Owner. The City’s lien interest shall attach upon the
Property upon recordation of the memorandum of this Agreement. The personal obligation of
Owner will survive any sale or other transfer of Owner’s interest in the Property or the Hotel
Development until the Owner's obligations with respect to any refund under this Section 6.H
have been satisfied. At the Owner’s request made at any time after fifth (5th) anniversary of the
Start Date provided a Brand Termination has not previously occurred, the City shall execute and
deliver to the Owner a termination of the memorandum of this Agreement, in recordable form,
and the Owner shall have the right to cause such termination of the memorandum of this
Agreement to be properly recorded.
SECTION 7. ADDITIONAL CONSIDERATION. In further consideration of the Owner’s
operation of the Hotel Development, the City agrees that it will not to deliver any incentive
payments to any other hotel development located in Lake Forest and lying west of a line which
is 1,000 feet east of the eastern boundary of the Illinois Route 43 right-of-way for a period of
four years after the Effective Date.
SECTION 8. TERMINATION OF AGREEMENT; SURVIVAL OF CERTAIN
OBLIGATIONS. The Parties agree that this Agreement shall terminate on the earlier to occur of
(a) 20 years after the Effective Date, or (b) if a Brand Termination has occurred prior to the fifth
year after the Start Date, the date on which the Owner has paid the City in full any refund
required under Section 6.H of this Agreement. Notwithstanding the foregoing, the Owner’s
obligations under Sections 9 and 12 of this Agreement (as well as any other indemnification and
defense obligations under this Agreement) shall survive the termination of this Agreement.
SECTION 9. REPRESENTATION OF OWNER; INDEMNIFICATION. The Owner
represents that it is obligated to comply with the Requirements of Law. The Owner agrees to
defend, indemnify, and hold harmless the City and its elected and appointed officials,
employees, agents, attorneys, and insurers against: (a) any claim challenging the validity of this
Agreement; (b) a breach by Owner of any covenant set forth in this Agreement; (c) a violation
against any Requirements of Law caused by the Owner or otherwise arising from the terms of
this Agreement; and (d) any claim for damages or repayment of the funds paid to the Owner
pursuant to this Agreement brought by any person, State, federal, or local agency or unit of local
government, including but not limited to any claim brought against the City as a result of any
violation of the Requirements of Law. Additionally, in the event that legislation is enacted that
declares the rebates contemplated by the Agreement unlawful, the City may terminate this
Agreement immediately on the passage of that legislation and the City will be under no further
obligation with respect to any Incentive Payments or other payments to the Owner.
SECTION 10. OBLIGATIONS OF CITY CONTINGENT ON COMPLIANCE BY
OWNER. The obligation of the City to make the Incentive Payments under this Agreement is
expressly conditioned on the Owner’s compliance with every term of this Agreement. In the
event that Owner does not fully comply with the terms of this Agreement or cure any violation of
its terms within 30 days after written notice from the City (or such longer time as may
reasonably necessary to correct such violation provided that such correction efforts are promptly
commenced and diligently pursued to completion), the City shall have no obligation to make any
Incentive Payment then due and owing. The Parties acknowledge and agree that any such
violation that is not cured within the time period described above will be deemed a termination of
this Agreement.
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SECTION 11. NO OTHER CITY INCENTIVES. The Owner acknowledges and agrees
that, during the term of this Agreement and until all obligations of the Owner under this
Agreement have been completed, there are no other rebates, reimbursements, cost
adjustments, or other incentives of any kind available from the City for the Property, and the
Owner agrees not to seek, apply for, or otherwise request such rebates, reimbursements, cost
adjustments, or other incentives with respect to this Property.
SECTION 12. PAYMENT OF ATTORNEY’S FEES AND COSTS. If a Party employs an
attorney to enforce any of the provisions of this Agreement in litigation and that Party prevails in
a final judgment of the court, then the other Party shall pay the prevailing Party all reasonable
costs and expenses, including reasonable attorneys’ fees, incurred in connection therewith.
SECTION 13. COOPERATION AND COMPLIANCE OF PARTIES. In addition to the
acts and deeds recited herein and contemplated to be performed by the Parties, each Party
agrees to perform such acts as may be reasonably necessary to consummate the terms and
intentions of this Agreement.
SECTION 14. EFFECT OF AGREEMENT. This Agreement shall be binding on and
inure to the benefit of the City and the Owner and their legal representatives, successors, and
assigns.
SECTION 15. GOVERNING LAW. This Agreement shall be governed, construed, and
enforced in accordance with the laws of the State of Illinois.
SECTION 16. ENTIRE AGREEMENT; SEVERABILITY. This Agreement (including its
recitals and exhibits) constitutes the full agreement and understanding of the Parties with
respect to the matters set forth herein, and no negotiations, communications, or other
agreements shall have any force or effect. If any portion of this Agreement is held invalid or
inoperative, then so far as is reasonable, possible, and consistent with the intent and purposes
of this Agreement, the remainder of this Agreement will be deemed valid and operative and
effect will be given to the intent manifested by the portion held invalid or inoperative. The failure
by either Party to enforce against the other Party any term or provision of this Agreement shall
be deemed not to be a waiver of that Party’s right to enforce against the other Party the same or
any other such term or provision.
SECTION 17. NO DEBT OR OBLIGATION. The Parties specifically acknowledge and
agree that no undertaking on the part of the City to make Incentive Payments as specified in this
Agreement constitutes a debt or obligation of the City within any constitutional or statutory
provision.
SECTION 18. ASSIGNMENT OF RIGHTS AND OBLIGATIONS. Except as otherwise
expressly provided in this Agreement, none of the obligations, benefits, and provisions of this
Agreement shall be assigned in whole or in any part by the Owner without the prior express
written authorization of the Corporate Authorities; provided, however, the Owner may assign or
otherwise transfer, in whole or in part, the Owner’s rights, interests, obligations and benefits
under this Agreement provided that, at the time of such assignment or transfer, the Hotel
Development is operated as a “Hyatt Place” hotel or as another Approved Brand and the
manager of the Hotel Development is the Owner, an Owner’s Affiliate or an Approved Manager..
In addition, no third party may rely on or enforce any provision of this Agreement, the same
being an agreement solely between the City and the Owner which is made for the benefit of no
other person or entity.
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SECTION 19. CORPORATE CAPACITIES. The Owner acknowledges and agrees that
the persons executing this Agreement on behalf of the City are authorized to do so in their
official capacity and have so signed this Agreement in their official capacities only, and those
persons shall have no personal liability in their individual capacities.
SECTION 20. BREACH OF AGREEMENT. In the event of a breach of this Agreement,
the Parties agree that the Party alleged to be in breach shall have 30 days after written notice of
said breach from the non-breaching Party to correct the breach (or such longer time as may
reasonably necessary to correct such violation provided that such correction efforts are promptly
commenced and diligently pursued to completion) prior to the non-breaching Party’s seeking of
any remedy provided for in this Agreement. Upon a breach of this Agreement and after the
expiration of the cure period described above, the non-breaching Party may take whatever
action at law or in equity as may appear necessary or desirable to enforce performance and
observance of any obligation set forth in this Agreement.
SECTION 21. NOTICES. Any written notices provided for or required in this Agreement
shall be deemed delivered when either personally delivered or mailed, postage fully prepaid,
certified or registered mail, return-receipt requested, to the parties at the following addresses:
To the City: City Manager
The City of Lake Forest
220 East Deerpath
Lake Forest, IL 60045
To the Owner: Janko Group LLC
2610 Lake Cook Road
Suite 100
Riverwoods, IL 60015
Attention: Gary R. Janko
provided that the name and/or the address to which notices shall be sent may be changed by
the City or Owner by notice signed by a representative of the City or Owner, as applicable and
delivered to the other in the manner set forth in this Section 21.
SECTION 31. EFFECTIVE DATE. It is understood that this Agreement shall be
effective as of the Effective Date, after adoption by the City Council of a resolution authorizing
the execution of this Agreement and the execution of this Agreement by all parties.
[Signature page to follow.]
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized representatives as of the date first above written.
ATTEST: THE CITY OF LAKE FOREST
___________________________
City Clerk Mayor
ACKNOWLEDGMENTS
STATE OF ILLINOIS )
) SS
COUNTY OF LAKE )
This instrument was acknowledged before me on _____________________,
201__ by , the Mayor of THE CITY OF LAKE FOREST, an Illinois municipal
corporation, and by , the City Clerk of said municipal corporation.
Given under my hand and notarial seal this _____ day of _______________, 201__.
Notary Public
My Commission Expires:
(SEAL)
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JANKO GROUP, LLC, an Illinois limited liability company
By:
Gary R. Janko
Its: Manager
ACKNOWLEDGMENTS
STATE OF ILLINOIS )
) SS
COUNTY OF LAKE )
I, the undersigned, a notary Public, in and for the County and State aforesaid, DO HEREBY
CERTIFY, that Gary R. Janko, personally known to me to be the Manager of Janko Group LLC,
an Illinois limited liability company, and personally known to me to be the same person whose
name is subscribed to the foregoing instrument, appeared before me this day in person
acknowledged that as such Manager he signed and delivered the said instrument pursuant to
authority as his/her free and voluntary act, and as the free and voluntary act and deed of said
company, for the uses and purposes therein set forth.
Given under my hand and official seal, this _____ day of _____________, 2018.
NOTARY PUBLIC
Commission expires
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EXHIBIT A
Legal Description of the Property
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EXHIBIT B
Community Development Fees
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THE CITY OF LAKE FOREST
DECISION-MAKING PARAMETERS FOR CITY COUNCIL,
AND APPOINTED BOARDS & COMMISSIONS
Adopted June 18, 2018
The City of Lake Forest Mission Statement:
"Be the best-managed, fiscally-responsible and appealing community and promote a community
spirit of trust, respect and citizen involvement.
The Lake Forest City Council, with the advice and recommendations of its appointed advisory
Boards and Commissions, Lake Forest Citizens, and City Staff, is responsible for policy
formulation and approval. Implementation of adopted strategy, policy, budgets, and other
directives of Council is the responsibility of City Staff, led by the City Manager and Senior
Staff. The Mayor and Aldermen, and appointed members of Boards and Commissions should
address matters in a timely, deliberate, objective and process-driven manner, making decisions
guided by the City of Lake Forest Strategic and Comprehensive Plans, the City's Codes,
policies and procedures, and the following parameters:
. Motions and votes should comprise what is in the best long-term interests of all Lake
Forest citizens, measured in decades, being mindful of proven precedents and new
precedents that may be created.
. All points of view should be listened to and considered in making decisions with the
long-term benefit to Lake Forest's general public welfare being the highest priority.
. Funding decisions should support effectiveness and economy in providing services
and programs, while mindful of the number of citizens benefitting from such
expenditures.
. New initiatives should be quantified, qualified, and evaluated for their long-term merit
and overall fiscal impact and other consequences to the community.
. Decision makers should be proactive and timely in addressing strategic planning
initiatives, external forces not imder control of the City, and other opportunities and
challenges to the community.
Community tmst in, and support of, government is fostered by maintaining the integrity of these
decision-making parameters.
The City of Lake Forest 's Decision-Making Parameters shall be reviewed by the City Council on an
annual basis and shall be included on all agendas of the City Council and Boards and Commissions.89