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CITY COUNCIL 2021/10/04 AgendaTHE CITY OF LAKE FOREST CITY COUNCIL AGENDA Monday, October 4, 2021 at 6:30 pm REMOTE ACCESS MEETING Please be advised that all of the City Council members will be remotely attending this Council meeting by electronic means, in compliance with the recent amendments to the Open Meetings Act. The Mayor of the City Council has determined that it is not prudent or practical to conduct an in-person meeting due to the COVID-19 pandemic and that it is not feasible to have the City Council members or members of the public physically present at the meeting due to the pandemic disaster. The City will be providing members of the public with various opportunities to watch or attend this meeting, as well as provide public comment at the meeting. For example, members of the public can participate remotely in the meeting by following the public audience link which will provide both video and audio means to attend the meeting. Public Access Link https://us02web.zoom.us/j/82839916857?pwd=WGFab3plZTdzWmhqYjFRSzZpWXl3QT09 Passcode: 1861 CALL TO ORDER AND ROLL CALL 6:30 p.m. Honorable Mayor, George Pandaleon James E. Morris, Alderman First Ward Jim Preschlack, Alderman Third Ward Jennifer Karras, Alderman First Ward Ara Goshgarian, Alderman Third Ward Melanie Rummel, Alderman Second Ward Raymond Buschmann, Alderman Fourth Ward Edward U. Notz, Jr., Alderman Second Ward Eileen Looby Weber, Alderman Fourth Ward PLEDGE OF ALLEGIANCE REPORTS OF CITY OFFICERS 1. COMMENTS BY MAYOR 2. COMMENTS BY CITY MANAGER 1. Ward Meetings 3. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL . Monday, October 4, 2021 City Council Agenda Members of the public can provide public comment by calling the following number during the meeting: 847-810-3643 4. COMMITTEE REPORTS PUBLIC WORKS COMMITTEE 1. Four-Year Agreement with IDOT for Snow Plowing and Salting of Route 43 and Route 60 – Alderman Jim Preschlack MARKETING COMMITTEE 1. Update on Marketing Committee Initiatives – Alderman Jennifer Karras 5. ITEMS FOR OMNIBUS VOTE CONSIDERATION 1. Approval of September 20, 2021, City Council Meeting Minutes A copy of the minutes can be found beginning on page 18 COUNCIL ACTION: Approval of September 20, 2021, City Council Meeting Minutes 2. Approval of the Check Register for the Period of August 28 to September 24, 2021 STAFF CONTACT: Elizabeth Holleb, Finance Director (847-810-3612) BACKGROUND/DISCUSSION: City Code Section 38.02 sets forth payment procedures of the City. The Director of Finance is to prepare a monthly summary of all warrants to be drawn on the City treasury for the payment of all sums due from the City (including all warrants relating to payroll and invoice payments) by fund and shall prepare a detailed list of invoice payments which denotes the person to whom the warrant is payable. The warrant list detail of invoice payments shall be presented for review to the Chairperson of the City Council Finance Committee for review and recommendation. All items on the warrant list detail recommended for payment by the Finance Committee Chairperson shall be presented in summary form to the City Council for approval or ratification. Any member of the City Council shall, upon request to the City Manager or Director of Finance, receive a copy of the warrant list detail as recommended by the Finance Committee Chairperson. The City Council may approve the warrant list as so recommended by the Finance Committee Chairperson by a concurrence of the majority of the City Council as recorded through a roll call vote. The Council action requested is to ratify the payments as summarized below. The associated payroll and invoice payments have been released during the check register period noted. Following is the summary of warrants as recommended by the Finance Committee Chairperson: Monday, October 4, 2021 City Council Agenda The amount shown as “All other Funds” includes $326,521 in medical/dental insurance program expenses. COUNCIL ACTION: Approval of the Check Register for the Period of August 28 to September 24, 2021 3. Consideration of Two Requests to Waive the Fidelity Bond Requirement in Connection with Holding a Raffle in The City of Lake Forest. (Approval by Motion) STAFF CONTACT: Margaret Boyer, City Clerk (847.810.3674) PURPOSE AND ACTION REQUESTED: Staff requests City Council consideration of waiving the fidelity bond requirement in connection with two proposed raffles. BACKGROUND: In January 2020 the City Council approved an Ordinance Amending Chapter 110, titled “Licenses and Miscellaneous” related to Raffles, to align these sections with recent State of Illinois Legislation. Section 110.0149, J, allows the raffle manager designated by the organization to seek a waiver of the bond requirement from the City Council. At this time two organizations are requesting a waiver of the bond requirement. Both Northwestern Medicine Lake Forest Hospital and the Lake Forest Lake Bluff Chamber of Commerce have submitted requests. A copy of the requests can be found beginning on page 21. BUDGET/FISCAL IMPACT: N/A COUNCIL ACTION: Consideration of Two Requests to Waive the Fidelity Bond Requirement in Connection with Holding a Raffle in The City of Lake Forest. (Approval by Motion) Fund Invoice Payroll Total 101 General 436,928 1,614,496 2,051,423 501 Water & Sewer 95,963 190,091 286,054 220 Parks & Recreation 161,837 451,935 613,772 311 Capital Improvements 341,833 0 341,833 202 Motor Fuel Tax 0 0 0 230 Cemetery 19,075 34,240 53,316 210 Senior Resources 9,192 28,974 38,165 510 Deerpath Golf Course 207,138 3,046 210,184 601 Fleet 56,052 61,964 118,016 416 - 433 Debt Funds 148,144 0 148,144 248 Housing Trust 3,188 0 3,188 201 Park & Public Land 0 0 0 All other Funds 411,283 165,767 577,049 $1,890,631 $2,550,513 $4,441,144 Check Register for August 28 - September 24, 2021 Monday, October 4, 2021 City Council Agenda 4. Approval of the Third Amendment to the Kemper Sports Management Agreement and the costs associated with the changes STAFF CONTACT: Sally Swarthout, Director- Parks, Recreation, Forestry (847-810-3942) PURPOSE AND ACTION REQUESTED: Staff requests the approval of the Third Amendment to the Kemper Sports Management Agreement. BACKGROUND/DISCUSSION: The Third Management Agreement addresses an important issue within the original contract signed in 2015 and the updated contract in 2018. It restructures the insurance articles to reflect a realignment of responsibilities by Kemper Sports Management and The City of Lake Forest. After review by IRMA, AncelGlink, and representatives for Kemper Sports Management, the realignment of the insurance responsibilities include changes to the following sections: Article 7- Insurance 7.1 Insurance coverage 7.1.1 Insurance Maintained by Owner A) Property Insurance covering loss or damage to the buildings, structures or other Improvements, contents, equipment and supplies- No changes made B) Commercial Business Automobile Liability Insurance- clearly states City owned vehicles and removes non-owned and hired vehicles from the coverage C) Business Interruption, Loss of Income and Extra Expense Insurance- removes Kemper Sports Management from coverage Note: Commercial General Liability and/or Umbrella/Excess Liability and Commercial Liquor Liability has been removed from insurance maintained by owner and moved to insurance maintained by Kemper Sports Management. 7.1.2 Insurance Maintained by Kemper Sports Management A) Employment Practices, Directors and Officers Fiduciary and Crime Liability Insurance- No change to verbiage B) Worker’s Compensation Insurance- No change to verbiage C) Fidelity Bond or Fidelity Insurance-No change to verbiage D) Commercial Liquor Liability- moved to Kemper from Owner maintained insurance E) Commercial General Liability and/or Umbrella/Excess Liability- move to Kemper from Owner maintained Insurance 7.1.3 Additional Insured Status- change acknowledges that each party has made no representation or warranty that the above coverages are sufficient to fully protect the other party. Monday, October 4, 2021 City Council Agenda 7.2 Option for Kemper Sports Management to Provide Insurance- change includes Property Insurance waiver of all recovery by way of subrogation against Kemper Sports Management has been removed 7.3 Waiver of Subrogation- removed based on recommendation from City attorneys Article 9- Indemnification 9.1 Owner’s Indemnification Obligations- removal of reference to 7.3 9.2 Kemper Sports Management Indemnification Obligations- removal of reference to 7.3 9.3 Survival- removed and verbiage added to 9.1 and 9.2 These changes to Articles 7 and 9 have clarified and corrected some issues left standing by the original 2015 and updated 2018 agreements. The existing Agreement required the City to take on liability and exposure for actions performed by Kemper Sports Management and this amendment corrects that by transferring the risk to Kemper Sports Management. A copy of the redline version of the proposed Amendment along with a clean copy is included in the packet beginning on page 23. BUDGET/FISCAL IMPACT: There will be a small cost associated with these changes. The general liability fee will be included in the golf course operational budget-Insurance Liability. FY2022 Funding Source Amount Budgeted Amount Requested Budgeted? Y/N Deerpath Golf Course 510-6301-452.52-25 $0 $6,500 N COUNCIL ACTION: Approval of the Third Amendment to the Kemper Sports Management Agreement and the costs associated with the changes 5. Approval of the Purchase of a New Automated Vehicle Entry Gate System for South Beach Access in the Amount of $41,043 STAFF CONTACT: Jim Shaw, Director of Innovation & Technology, 847-810-3590 PURPOSE AND ACTION REQUESTED: Staff requests approval to purchase a new automated sailing gate for the City’s Beach Sailing access road that includes license plate recognition. BACKGROUND/DISCUSSION: In April 2021, the IT & Parks & Recreation Department evaluated product offerings of newer technologies for improved resident experience for the Beach Sailing venue. Currently Parks & Recreation utilizes a manual gate which is seasonally staffed to monitor access to the Beach at the south entrance. Seeing an opportunity to improve operations and provide an improved resident experience, various options were considered Monday, October 4, 2021 City Council Agenda and determined that additional technologies offered an increased value over a standard mechanical gate. The evaluation identified the following desired functionalities: 1. License Plate Recognition / Automated Gate Operation 2. Temporary code assignments for day rentals 3. Opticom emergency access for Police and Fire, including considerations for mutual aid from other communities 4. Remote monitoring and gate management capability 5. 24X7 automated operation PROJECT REVIEW/RECOMMENDATIONS: Milestone Date Comments RFP Issuance 07/22/2021 RFP Published in Pioneer Press, published in publicnoticeillinois.com, 3 Vendors Notified Vendor Pre-Proposal Site Visit 08/10/2021 Proposals Submitted 08/16/2021 Three Vendor Submitted Proposals Received & Reviewed BUDGET/FISCAL IMPACT: On August 16, 2021 City staff received three proposals in response to a July 22, 2021 RFP issuance for hardware, software and installation services. A selection team was created to evaluate vendor proposals. The team comprised of representatives from the Parks & Recreation Department, IT, Fire, & Police. Proposals were evaluated based on the solution proposed, cost and experience with similar installations. Vendor Score (100 max) Total Amount EES 74 $41,043 Tiles in Style 74 $54,892 Gate Options Did Not Advance $41,980 Staff is recommending the vendor Electronic Entry Systems, Inc. (EES) to provide the City with the installation of gate hardware, software and training as their submitted proposal met all the required desired functionality outlined in the RFP and was lowest cost. FY2022 Funding Source Amount Budgeted Amount Requested Budgeted? Y/N IT Capital 311-1303-466.66-13 $62,000 $41,043 Y Has City staff obtained competitive pricing for proposed goods/services? Yes COUNCIL ACTION: Approval of the Purchase of a New Automated Vehicle Entry Gate System for South Beach Access in the Amount of $41,043 Monday, October 4, 2021 City Council Agenda 6. Approval to Renew an Agreement for Citizen Request Management System (SeeClickFix) Licensing, Software Maintenance, and Additional Licensing for a Total of $33,706 STAFF CONTACT: Jim Shaw, Director of Innovation and Technology (847-810-3590) PURPOSE AND ACTION REQUESTED: Staff requests approval to renew a one (1) year agreement with Cartegraph Systems, Inc. for the SeeClickFix Citizen Request Management System which includes maintenance services, renewal licensing, and additional licensing for expanded staff support. BACKGROUND/DISCUSSION: The City implemented SeeClickFix in 2020 and was officially launched in tandem with the City’s new website and mobile application. The system interfaces with those two platforms to provide a way for City residents to report issues directly to City staff. Those service requests are then assigned to City resources and tracked in the SeeClickFix system while maintaining status communication with the resident until final resolution of the request. As this was a new software system accompanied by new processes for internal City staff, the estimate for user licensing was kept at a modest level. Due to the success of internal City departments (Public Works and Parks & Forestry) adopting the use of the system at faster rate than expected, the need for additional licensing became apparent. Ensuring that all resources who work on service requests have access to take action in the field promotes and allows for streamlined process efficiencies for the operating areas in those departments. They are able to use the system in real time without having to rely on a supervisor to process the actions for them for the service request. BUDGET/FISCAL IMPACT: On September 8, 2021 staff received the annual renewal quote from Cartegraph. There were no additional fees associated with the renewal as presented. Has City staff obtained competitive pricing for proposed goods/services? No Per Administrative Directive 3-5, Section 6.11 – Existing Relationship FY2022 Funding Source Account Number Amount Budgeted Amount Requested Budgeted? Y/N IT Capital (new) 311-1303-466.66-13 $0 $28,706* Y IT Operating 101-1315-443.43-37 $5,000 $5,000 Y * This amount will be funded from other project line items COUNCIL ACTION: Approval to Renew an Agreement for Citizen Request Management System (SeeClickFix) Licensing, Software Maintenance, and Additional Licensing for a Total of $33,706 7. Authorize the City Manager to Enter into a Four-Year Agreement with the Illinois Department of Transportation for the Plowing and Salting of Route 43 (Rte. 176-Rte. 22) and Route 60 (Rte. 41-Field Drive) for the Winters of ‘21/’22 through 24’/’25 Monday, October 4, 2021 City Council Agenda STAFF CONTACT: Michael Thomas, Director of Public Works (810-3540) PURPOSE AND ACTION REQUESTED: Staff is requesting City Council authorization to allow the City Manager to enter into a four-year agreement with the Illinois Department of Transportation for the plowing and salting of Route 43 (Rte. 176-Rte. 22) and Route 60 (Rte. 41- Field Drive) for the winters of ‘20/’21 through ‘24/’25. BACKGROUND/DISCUSSION: The Illinois Department of Transportation (IDOT hereafter) is responsible for plowing and salting all State-owned roadways. In Lake Forest, this includes Rte. 41, 43, and 60. Equipment to plow these roads comes from IDOT’s Gurnee Maintenance Facility. Over recent years, IDOT has had its challenges meeting the obligation of plowing Rte. 43 & 60 in a timely manner. For many years, IDOT has had problems with reliability of its older snow plow fleet and was limited on the hours its mechanics could spend repairing said equipment. This, along with reductions in IDOT’s operating budget, resulted in many State roadways receiving less than expected snow removal and salting services. For the past two winters, The City of Lake Forest has entered into one year agreements with IDOT to plow and salt these two State routes. The first-year agreement was created as a pilot program to see if both the City could incorporate the added responsibilities into its snow program while meeting IDOT’s quality and response time expectations. After the first year the City had informed IDOT it would be interested in pursuing a 10-year agreement. IDOT responded that such long-term agreements were created in their Springfield office and that they did not believe they could have an agreement completed in time for the upcoming winter. IDOT therefore proposed entering into an identical agreement with the same financial terms for last winter. This past spring, the City once again requested a long term agreement. IDOT officials agreed to create such an agreement and that the term would be four years in order to align Lake Forest with all other existing maintenance agreements between the State and other municipalities. In year 2025, IDOT stated that they will review and renew all of these agreements. In 2025, if the City were interested, it could enter into a 10-year agreement with IDOT. The following chart provides a breakdown of the costs associated with the past two winter’s program. I DOT has paid the City in full per each year’s agreed amount of $93,131.36. Monday, October 4, 2021 City Council Agenda PAST PROJECT REVIEW/RECOMMENDATIONS: Reviewed Date Comments Public Works Committee September 8, 2021 Recommended City Council Approve the Four-Year Winter IDOT Agreement City Council October 5, 2020 Approved the Winter 2020/2021 IDOT Agreement City Council December 2, 2019 Approved the Winter 2019/2020 IDOT Agreement BUDGET/FISCAL IMPACT: The total four-year agreement amount is $282,972. This equates to an annual amount of $70,743; $22,388.36 less than the $93,131.36 provided for each of the past two fiscal years. Staff inquired with IDOT as to the reasoning for the reduction. Staff was told that because the City had requested a long term agreement, IDOT’s Department headquarters in Springfield creates those agreements, not staff at District 1 in Schaumburg. Springfield staff noted that the agreement calculations and terms are the same as all 10-year municipal agreements. They noted that with the past two agreements being created and approved in Schaumburg’s District 1 office, there was more flexibility to increase the amount provided. They noted that this increase was based on IDOT’s significant need for winter assistance. The City Attorney has reviewed and approved the terms of agreement as they are very similar to the past two agreements. For Fiscal Year 2021, the Department’s operating budget did not include the revenue nor the additional expenses related to this agreement, as the City was in the first pilot year for providing these services. Fiscal year 2022 had similar circumstances. Although a supplemental appropriation is not anticipated, if needed, it would be presented for City Council approval at the end of the fiscal year. With regards to salt, the City currently has 2,040 tons of salt on hand. At the March 15, 2021 City Council meeting, City Council approved the purchase of an additional 2,400 tons of salt for either the upcoming or following winter. 1,918 tons remain available to order from the approved 2,400 tons. With regards to equipment, the FY ’22 capital equipment budget included the purchase of an additional mini-loader to assist with the overall plowing and salting of the two State routes. Use of an additional mini-loader removes the need for a five-yard dump truck in the CBD. This truck has now been re-assigned to assist the current one truck working both State routes. As far as manpower and potential impacts from Covid, Department staff are updating its contingency plan for the upcoming winter. Staff is updating its plan that involves all levels of the Department as well as incorporating personnel from other Departments. Staff feels confident that it will be able to provide plowing and salting services for all Lake Forest roadways and Routes 43 & 60. COUNCIL ACTIONS: Authorize the City Manager to Enter into a Four-Year Agreement with the Illinois Department of Transportation for the Plowing and Salting of Route 43 (Rte. 176-Rte. 22) and Route 60 (Rte. 41-Field Drive) for the Winters of ‘21/’22 through 24’/’25 Monday, October 4, 2021 City Council Agenda 8. SUBJECT: Award of Bid for the Replacement of Two CSO Pick-Up Trucks for the Police Department to Miles Chevrolet in the Amount of $59,962 STAFF CONTACT: Dan Martin, Superintendent of Public Works (810-3561) PURPOSE AND ACTION REQUESTED: Staff is requesting City Council award a bid for the replacement of two Police Department CSO pick-up trucks. BACKGROUND/DISCUSSION: The Police Department CSO’s utilize a Chevrolet Silverado, a GO- 4 parking enforcement scooter, and an all-electric Polaris G.E.M. scooter. Police Department staff are requesting replacement of both the Silverado and G.E.M. scooter with two smaller pick-up trucks. The FY ’22 capital equipment budget includes funding for the replacement of an unmarked squad car, # 16. Both Police Department staff and the Fleet Maintenance Supervisor agree that the current CSO pick-up truck, with its higher mileage and current mechanical condition (149,000 miles versus 87,000 miles on car # 16) should be replaced instead of car # 16. Additionally, Police Department staff are requesting replacement of the Polaris G.E.M. scooter via the Department’s Police Restricted Fund, also referred to in the past as the Seizure Fund. The second request is due to an increased CSO presence on each patrol shift and an enhanced Department response to large scale emergency or severe weather events. The three year old Silverado has accrued approximately 149,000 miles and will be moved into the City’s vehicle pool system for various City uses throughout the year. The second of the two parking scooters, the all-electric G.E.M. has been moved to the Cemetery. The Polaris G.E.M. scooter was placed into service in 2017. With its all electric drivetrain, the CSO’s could not rely on a charge being sufficient to last an entire shift of dedicated parking enforcement. The scooter used standard nickel cadmium marine batteries; an upgrade to more energy efficient lithium-ion pack was cost prohibitive (approximately $15,000-$20,000). As it was used, Department staff learned that the unit was not built for operation in cold climates. Its heater was intentionally small to conserve an electrical charge and could not adequately heat the vehicle in temperatures below 40 degrees Fahrenheit. The electric range was significantly impacted during winter months (nearly half) which required a two-hour recharge mid-shift, negatively affecting parking enforcement efforts. Finally, the unit’s design incorporated too high of torque on its front wheels. This caused excessive wheel spin on wet or snowy pavement; alternative tires were installed, but this did not resolve wheel spin issue. PROJECT REVIEW/RECOMMENDATIONS: Reviewed Date Comments Public Works Committee November 30, 2020 Reviewed & Approved FY ’21 Capt. Eqpt. BUDGET/FISCAL IMPACT: As previously noted, the current Chevrolet Silverado will be placed in the City’s vehicle pool system. An older pick-up truck will be traded in on the first purchase and funded via the City’s Capital Fund. The second pick-up will be funded via the Police Department’s Restricted Fund which has been verified by legal counsel as an allowable use of the funds. The following bids were received on September 9, 2021: Monday, October 4, 2021 City Council Agenda Capital Fund Dealer Model Bid Amount Trade Net Anthony Buick/GMC* GMC Canyon $33,192 $10,000 $23,192 Miles Chevrolet Chevrolet Colorado $30,981 $2,000 $28,981 Ray Chevrolet Chevrolet Colorado $31,799 $1,000 $30,799 Police Restrictive Fund Dealer Model Bid Amount Miles Chevrolet Chevrolet Colorado $30,981 Anthony Buick/GMC GMC Canyon $33,192 Ray Chevrolet Chevrolet Colorado $31,799 *Anthony Buick / GMC noted eleven basic packages and/or options that were not available due to the “global supply chain”. Because of these exceptions, their bid did not meet the bid specification. The City’s fleet of pickups, one ton dumps, and building inspection vehicles is 98% GM products. The City has had very good experience with these vehicles and has a good working relationship with surrounding GM dealerships. With a majority of the fleet being GM vehicles, the mechanics are able to streamline repairs and the parts inventory is minimized due to many common parts. Warranty work can be completed at any GM dealership and parts are readily available throughout the area. Staff therefore recommends awarding the bid to lowest responsive and responsible bidder. Has competitive pricing been obtained for proposed goods/services? Yes Per the Purchasing Directive 3-5, staff sent bid specifications to multiple dealerships, had the invitation to bid printed in a local newspaper, and placed all specifications on the City’s website. If the bid is awarded by City Council, staff anticipates receiving the replacement trucks in late spring / early summer, 2022. Below is a summary of the two pick-up truck’s budgets. The $3,891 overage in the Capital Fund will be funded through savings with other FY ’22 capital equipment purchases. FY2022 Funding Source Amount Budgeted Amount Requested Budgeted? Y/N Capital Fund 311-5003-475.75-02 $25,000 *$28,981 Y *$28,981 is net of trade-in FY2022 Funding Source Account Budget Amount Requested Budgeted? Y/N Police Restricted Fund 247-7672-475.75-02 $65,000 $30,981 Y Monday, October 4, 2021 City Council Agenda COUNCIL ACTION: Award of Bid for the Replacement of Two CSO Pick-Up Trucks for the Police Department to Miles Chevrolet in the Amount of $59,962. 9. Consideration of Ordinances Approving Recommendations from the Zoning Board of Appeals. (First Reading, and if Desired by the City Council, Final Approval) STAFF CONTACT: Catherine Czerniak, Director of Community Development (810-3504) PURPOSE AND ACTION REQUESTED: The following recommendations from the Zoning Board of Appeals are presented to the City Council for consideration as part of the Omnibus Agenda. BACKGROUND/DISCUSSION: 1191 Estes Avenue – The Zoning Board of Appeals recommended approval of a variance to allow a driveway that exceeds the maximum width permitted in the front yard setback. Two letters in support of the petition were presented to the Board. (Board vote: 7-0, approved) 80 Winston Road – The Zoning Board of Appeals recommended approval of a variance to allow a driveway that exceeds the maximum width permitted in the corner side yard setback. There was no public testimony on this petition. (Board vote: 7-0, approved) The Ordinances approving the petitions as recommended by the Zoning Board of Appeals, with key exhibits attached, are included in the Council packet beginning on page 33. The Ordinances, complete with all exhibits, are available for review in the Community Development Department. COUNCIL ACTION: If determined to be appropriate by the City Council, waive first reading and grant final approval of the Ordinances approving the petitions in accordance with the Zoning Board of Appeals’ recommendations. COUNCIL ACTION: Approval of the nine (9) omnibus items as presented. 6. OLD BUSINESS 7. NEW BUSINESS 1. Consideration of an Ordinance Approving a Purchase and Donation Agreement with Hart Lake Forest, LLC and the Ragdale Foundation Regarding Property Generally Located at 1272 N. Green Bay Road, Lake Forest, Illinois (First Reading, and if Desired by the City Council, Final Approval) STAFF CONTACT: Catherine Czerniak, Director of Community Development (810-3504) PURPOSE AND ACTION REQUESTED: The Council is asked to consider approving, by Ordinance, a Purchase and Donation Agreement that will reassemble a large portion of the original Howard Van Monday, October 4, 2021 City Council Agenda Doren Shaw Ragdale Farm Property, place it under City ownership at no cost to the City, and enhance the Ragdale Campus. BACKGROUND/DISCUSSION: Through the generosity of the Hart/Lansing family, the City, in collaboration with the Ragdale Foundation, has the opportunity to reassemble a significant portion of the original Ragdale Farm. Members of the Hart and Lansing family have, for many years, envisioned reconnecting portions of the 5.581 acre Hart property with the Ragdale Campus not only for the benefit of Ragdale, but to assure that this historic and environmentally sensitive property is preserved and protected long into the future for the benefit of the Lake Forest community and artists worldwide. The Hart family has had a long and close personal relationship with the descendants of Howard Van Doren Shaw, the original owner and architect of the Ragdale Farm. The transfer of just over two acres of the Hart property to the City is made possible by the Hart/Lansing family’s desire to make a combination sale and donation of the property to the City and by the Ragdale Foundation’s willingness to fund the purchase of the property. A lead donor has stepped forward with a significant contribution to the Ragdale Foundation to make this transaction possible. After the purchase, the property will be owned by the City as is the majority of the existing Ragdale Campus, and Ragdale will continue to operate on the expanded City owned site under the terms of an Operating Agreement and Special Use Permit, both of which will be amended to reflect the expanded property. The details of the three party transaction are detailed in the Purchase and Donation Agreement included in the Council packet beginning on page 47. This transaction includes various components which are detailed in the documents included in the Council packet. Highlights of the key elements of the Purchase and Donation Agreement is provided below.  Hart Donation Parcel – Just over two acres of the Hart property will be transferred to the City of Lake Forest under the terms of the Purchase and Donation Agreement.  Ragdale Foundation – The Foundation will fund the purchase of the property from the Hart/Lansing family.  Retained Properties - The Hart/Lansing family will retain portions of the Hart property, 3.464 acres for continue use by family members.  Easement – The Hart/Lansing family will retain an access easement over a portion of the Hart donation parcel.  Right of First Refusal – The City and the Ragdale Foundation will hold a senior and junior right, respectively, of first refusal to purchase the properties retained by the Hart/Lansing family if the sale of all or any portion of the Retained Properties is contemplated in the future.  Amendments to the Operating Agreement and Special Use Permit and Property Line Shift – The Purchase and Donation Agreement acknowledges that further City reviews and approval are required to update various documents governing Ragdale’s operation on the expanded property.  “Donut Hole Parcel” – Unrelated to the Hart Donation Parcel, the City and the Ragdale Foundation are taking this opportunity to clean up a long standing ownership anomaly. A Monday, October 4, 2021 City Council Agenda small parcel internal to the Ragdale Campus, “the donut hole” was conveyed by a descendant of Howard Van Doren Shaw directly to the Ragdale Foundation. Both the City and the Foundation have discussed transfer of this parcel over many years for consistency with the ownership of the overall property. This transfer is incorporated into the Purchase and Donation Agreement. Importantly, the operation and uses on the Ragdale Campus will not change as a result of the incorporation of the additional property into the City’s ownership and the Ragdale Campus. Instead, the addition of the Hart property will provide the opportunity to improve upon the space currently available to accommodate artists with a variety of talents and abilities and will provide additional outdoor space to support the Ragdale Ring and other low intensity activities. An updated Master Plan for the expanded Ragdale Campus will be considered through a Special Use Permit amendment process. A public hearing on the amended Special Use Permit is anticipated in November before the Zoning Board of Appeals. Concurrently, work is underway to update the Operating Agreement between the City and the Ragdale Foundation. If the Council approves the Purchase and Donation Agreement, it is expected that both of these documents will be before the Council for consideration in December, 2021, with the closing on the Hart Property following shortly thereafter. Council consideration of the Purchase and Donation Agreement is an important next step in allowing the other work to proceed. In summary, the collaboration of the various parties on this project; the Hart/Lansing family, the Ragdale Foundation and staff, and the City, is yet another example of the value of long term planning but more importantly, of the amazing generosity of community members and the value placed on preserving and building upon the unique character and qualities of Lake Forest. COUNCIL ACTION: If determined to be appropriate by the City Council, waive first reading and grant final approval of the Ordinance 1) Approving the Purchase and Donation Agreement; and 2) Authorizing the Mayor and City Clerk to execute the Purchase and Donation Agreement; and 3) Authorizing and directing the City Manager to take all steps necessary to implement and enforce the terms of the Purchase and Donation Agreement. 8. ADDITIONAL ITEMS FOR DISCUSSION/ COMMENTS BY COUNCIL MEMBERS 9. ADJOURNMENT A copy of the Decision Making Parameters is included beginning on page 16 of this packet. An instruction guide on how to participate at a City Council meeting is included beginning on page 17. Office of the City Manager September 29, 2021 The City of Lake Forest is subject to the requirements of the Americans with Disabilities Monday, October 4, 2021 City Council Agenda 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 Jason Wicha, at (847) 234-2600 promptly to allow the City to make reasonable accommodations for those persons. ^Qtu^^ C^'NA<WA£BT-<^ ^.Scie^^t^wS^'X. §.. ^..,,.e-..^ f-l&ff"^ 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. . Fundmg decisions should support effectiveness and economy in providing services and programs, while mindful of the number ofcidzens benefittmg from such expenditures. . New initiatives should be quantified, qualified, and evaluated for their long-tenn merit and overall fiscal unpact and other consequences to the community. . Decision makers should be proactive and timely in addressing sto-ategic planning initiatives, external forces not under control of the City, and other opportunities and challenges to the community. Community trust 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. CITY COUNCIL – REMOTE ACCESS MEETING GUIDE Rules:  An online guide to using Zoom is available here  Participants can join using the Zoom application, using the call in number located at the top of the agenda, or can stream the meeting live via YouTube.  All Participants should use their real name (first and last) to identify themselves in the meeting. Public Participation:  Please wait to be recognized by a staff member, and the Mayor prior to making your comment.  If you would like to address your public comment to the City Council live, you can use one of two options o The Raise hand function via the zoom application.  If you are using the raise hand function, wait to be promoted to turn on your microphone to make a comment. There is a slight delay after you are promoted. You can then unmute yourself and address your comments to the City Council. o Calling the public comment line at 847-810-3643  If you are calling the public comment line, be sure to step away from your computer or TV, where you are watching the meeting, to avoid feedback. Device Audio Connection Ideal Zoom app on a desktop or Laptop A headset with microphone Wired connection via Ethernet Better Zoom app on a mobile phone or tablet A headset (using built-in microphone) Using a phone to dial in Connected Wirelessly via WiFi Okay Calling into conference line (without Zoom app) Computer speakers (using built-in microphone) Speakerphone on phone Connected via 4G / LTE (cellular data) Using a phone to dial in Tips Make sure your device is fully charged and you have access to Zoom on your device When Participating, pick a quite space to avoid any background noise If you have to use WiFi, try to pick a workspace close to your router. The City of Lake Forest CITY COUNCIL MEETING Proceedings of the Monday, September 20, 2021 City Council Meeting - City Council Chambers REMOTE ACCESS MEETING CALL TO ORDER AND ROLL CALL: The City Clerk asked for a motion to appoint Alderman Morris as Mayor Pro Tem. Alderman Rummel made a motion to appoint Alderman Morris as Mayor Pro Tem, seconded by Alderman Notz. The following voted “Aye”: Alderman Morris, Karras, Rummel, Notz, Preschlack, Goshgarian, Buschmann and Weber. The following voted “Nay”: None. 8-Ayes, 0 Nays, motion carried. Morris called the meeting to order at 6:33pm Present: Alderman Morris, Alderman Karras, Alderman Rummel, Alderman Notz, Alderman Preschlack, Alderman Goshgarian, Alderman Buschmann and Alderman Weber. Absent: Honorable Mayor Pandaleon CALL TO ORDER AND ROLL CALL PLEDGE OF ALLEGIANCE was recited. REPORTS OF CITY OFFICERS COMMENTS BY MAYOR Mayor Pro Tem Morris made the following statement as required by the Open Meetings Act. In accordance with state statute, Mayor Pro Tem Morris has made a determination that it was not practical or prudent to schedule an in-person City Council meeting because of the COVID-19 pandemic, which is why this September 20, 2021 City Council meeting is being held remotely. A. Swearing in Firefighter/Paramedic Nick Dovel Mayor Pro Tem Morris introduced Fire Chief, Pete Siebert, to present the swearing in of Firefighter/ Paramedic, Nick Dovel. Chief Siebert began by thanking the Council and community members who came to support the Fire Department during the 9/11 Ceremony. Chief Siebert then displayed a video of the swearing in of Nick Dovel, and provided extensive background of his work ethic and experience. B. Report on General Obligation Refunding Bonds Mayor Pro Tem Morris introduced Finance Director, Elizabeth Holleb, to report on the general obligation bond refinancing. Director Holleb provided a brief background, explaining what general obligation refunding is, and how it is similar to the refinancing on a mortgage. She provided a timeline, setting forth specific criteria, to allow the City to proceed with the bond issue. The online auction was held on August 19, 2021, of the 9 bidders, the City was able to get the interest rate to 1.0065%, saving the City $1.6 million over the life of the 2013 bond issue. The City Council thanked the Finance department for their work, continuously monitoring the market to provide the City with the best interest rate. The City Council asked clarifying questions regarding the true interest rate. Proceedings of the Monday, September 20, 2021 Regular City Council Meeting COMMENTS BY CITY MANAGER A. Community Spotlight - Dr. Montgomery, Superintendent for Lake Forest School Districts 67 and 115 City Manager, Jason Wicha introduced the new Lake Forest School Superintendent, by providing a brief history and background on Dr. Montgomery, and welcomed him to provide further comments to share upcoming initiatives in the Lake Forest School district. Dr. Montgomery provided background on his family, and their move to Lake Forest, learning about the community and local traditions. He provided information regarding, in-person school resuming, his entry plan for the school districts and educational philosophy. Dr. Montgomery further provided Elementary School District 67, and High School District 115 statistics from the 2020-2021 school year. The City Council asked clarifying questions regarding the statistics of current staff members pursuing advanced degrees. The City Council thanked Dr. Montgomery for his work, only having just began his work with the school district. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS Members of the public can provide public comment by calling into the following number during the meeting: 847-810-3643 COMMITTEE REPORTS ITEMS FOR OMNIBUS VOTE CONSIDERATION 1. Approval of September 7, 2021, City Council Meeting Minutes 2. Acknowledge Receipt of the Notification of Sale of General Obligation Refunding Bonds, Series 2021 3. Approval of the Purchase of a New Storage Array for the City’s Data Center in the Amount of $54,814 Based on State of Illinois Contract 4. Approval of a 3 Year Renewal Agreement for Microsoft Enterprise Licensing with Dell Marketing L.P. Based on State of Illinois Contract 5. Award of Proposal to Data Works Plus LLC. for the Purchase of a Live Scan Fingerprint System in the amount of $28,637.00 6. Approval of the Purchase of Computer Workstations, Laptops, Hybrid Tablets, and Rugged Tablets for All City Departments 7. Award of Bid for the 2021 Dickinson Hall Tuck Pointing Project to the Lowest Responsive and Responsible Bidder, Bruce Brugioni Construction, in the Amount of $130,533.47 to Include a 10% Contingency Amount of $13,053.35 for a Grand Total of $143,586.82 8. Authorization for the City Manager to enter into a Professional Services Agreement with 20- 10 Engineering Group and HOH Group for Facility Mechanical Engineering Services Proceedings of the Monday, September 20, 2021 Regular City Council Meeting 9. Award of Bid for a Three-Year Fire Alarm Testing & Inspection Services Contract to Esscoe, LLC in the Amount of $30,016 10. Approval of a Resolution Committing Local Funds for the 2021 Safe Routes to School Program for The City of Lake Forest Project Grant Application and the Authorization of the City Manager to Execute Related Grant Application Documents 11. Consideration of Ordinances Approving Recommendations from the Building Review Board. (First Reading, and if Desired by the City Council, Final Approval) 12. Consideration of Ordinances Approving Recommendations from the Zoning Board of Appeals. (First Reading, and if Desired by the City Council, Final Approval) COUNCIL ACTION: Approval of the twelve (12) Omnibus items as presented Mayor Pro Tem Morris asked members of the Council if they would like to remove any item or take it separately. Seeing none, he asked for a motion. The City Council had additional discussion regarding item #10. Alderman Weber made a motion to approve the twelve (12) Omnibus items as presented, seconded by Alderman Notz. The following voted “Aye”: Alderman Morris, Karras, Rummel, Notz, Preschlack, Goshgarian, Buschmann and Weber. The following voted “Nay”: None. 8-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. ORDINANCES OLD BUSINESS NEW BUSINESS ADDITIONAL ITEMS FOR COUNCIL DISCUSSION/COMMENTS BY COUNCIL MEMBERS ADJOURNMENT There being no further business Mayor Pro Tem Morris asked for a motion. Alderman Notz made a motion to adjourn, seconded by Alderman Rummel. Motion carried unanimously by voice vote at 7:13 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. 1 THIRD AMENDMENT TO MANAGEMENT AGREEMENT THIS THIRD AMENDMENT (“Third Amendment”) to the Management Agreement dated as of January 1, 2015 by and between The City of Lake Forest, Illinois, an Illinois home rule and special charter municipal corporation (“Owner”), and Kemper Sports Management, Inc., an Illinois corporation (“KSM”), is made and entered into as of _____, 2021, by and between Owner and KSM. Capitalized terms used herein but not defined shall have the meanings as set forth in the Agreement. W I T N E S S E T H: WHEREAS, the Owner owns the public golf course, clubhouse and related facilities located in Lake Forest, Illinois known as the “Deerpath Golf Course” and; WHEREAS, in January of 2015, the Owner and KSM entered into an Agreement for KSM to provide certain management services for the Deerpath Golf Course (“Original Agreement”); and WHEREAS, the parties have subsequently amended the Original Agreement by the First Amendment and the Second Amendment (the Original Agreement and the First and Second Amendments shall be collectively referred to as the “Agreement”); and WHEREAS, the Owner and KSM now desire to further amend the Agreement as set forth herein. NOW, THEREFORE, for and in consideration of the covenants, agreements and obligations of the respective parties as set forth herein, Owner and KSM agree as follows: Section 1. Amendment to Article 7 -Insurance. Article 7 of the Agreement is hereby deleted and replaced in its entirety with the following: “ARTICLE 7 INSURANCE 7.1 Insurance Coverage. During the Term, the following insurance shall be maintained in connection with operations at the Property: 7.1.1 Insurance Maintained by Owner. During the Term Owner shall secure and maintain, at its own cost, the insurance described in (A) and (B) below: (A) Property Insurance covering loss or damage to the buildings, structures or other Improvements, contents, equipment and supplies. KSM understands that coverage for flood, earthquake or wind damage shall be excluded from coverage and damages connected with such events shall be an Operating Expense. Special Note: the limits of liability specified in A and B above can be satisfied through a combination of primary, umbrella, or excess liability policies, provided that the coverage under such umbrella or excess liability policies is at least as broad as the primary coverage. 2 (CB) Commercial Business Automobile Liability Insurance including coverage for all owned vehicles providing coverage for bodily injury and property damage liability with combined single limits of not less than $1,000,000. (DC) Business Interruption, Loss of Income and Extra Expense Insurance that will reimburse Owner for direct and indirect loss of earnings attributable to six months of business interruption and for the actual loss sustained until the structures are substantially rebuilt after an insured property loss. Special Note: the limits of liability specified in B above can be satisfied through a combination of primary, umbrella, or excess liability policies, provided that the coverage under such umbrella or excess liability policies is at least as broad as the primary coverage. 7.1.2 Insurance Maintained by KSM. During the Term, KSM agrees to secure and maintain insurance as set forth in (A), (B), (C), (D, (E), (F) and (G) below. To the extent that KSM secures insurance only in connection with the Property, the Owner shall have the right to review and approve the policies for such coverages. To the extent that KSM meets the insurance requirements for (A), (B), (C), (D), (E), (F) and (G) below through policies applicable to multiple sites inclusive of the Property, KSM’s allocation methodology for premium costs shall be subject to the reasonable review and approval of the Owner. (A) Employment Practices (“EPLI”), Directors and Officers Fiduciary and Crime Liability Insurance of not less than $5,000,000 each occurrence. (B) Workers’ Compensation Insurance in such amounts that comply with applicable statutory requirements, and Employer’s Liability limits, including Umbrella Liability Insurance, if necessary, of not less than $1,000,000 per accident, $1,000,000 disease-policy limit, and $1,000,000 disease each employee. (C) Fidelity Bond or Fidelity Insurance covering all employees who have access to, have responsibility for, or who handle Owner funds. (D) Commercial Liquor Liability providing coverage for damages arising out of the selling, serving, serving or furnishing of any alcoholic beverage with a limit of $5,000,000 per occurrence/$5,000,000 aggregate limit or the minimum limits required by statute if higher. (E) Commercial General Liability and/or Umbrella/Excess Liability Insurance providing coverage for bodily injury and property damage arising in connection with the operation of the Property and including coverage for contractual liability providing limits of not less than: Bodily Injury and Property Damage Liability: $5,000,000 each occurrence Personal Injury and Advertising Liability: $5,000,000 per person or per organization General Policy Aggregate: $5,000,000 3 Products Liability/Completed Operations Aggregate: $5,000,000 (F) Commercial Business Automobile Liability Insurance including coverage for all non-owned, and hired vehicles providing coverage for bodily injury and property damage liability with combined single limits of not less than $1,000,000. Special Note: the limits of liability specified above can be satisfied through a combination of primary, umbrella, or excess liability policies, provided that the coverage under such umbrella or excess liability policies is at least as broad as the primary coverage The Premium expenses for the insurance requirements set forth in (A), (B), (C), (D), (E),of this Section 7.1.2 above shall be included as Operating Expenses in the Budget. 7.1.3 Additional Insured Status. All liability insurance coverage maintained by either party hereunder shall name the other party as additional insured on a primary and non- contributory basis to the extent of the Parties’ respective indemnification obligations under Article 9 and shall be maintained with insurance companies rated at least A- by Best Key Rating Guide and shall be licensed to do business in Illinois. Alternatively, Owner may maintain insurance through membership in a self-insured joint municipal risk pool. The Parties shall deliver to the other certificates of such insurance evidencing the required policies and additional insured status. Neither party shall use the Property in any way, or permit upon the Property anything, that will invalidate any policy of insurance now or hereafter carried on the Property or any building or structure thereon. Each party acknowledges that the other party has made no representation or warranty that the above coverages are sufficient to fully protect the other party. 7.2 Option for KSM to Provide Insurance. Upon Owner’s prior written request to KSM and KSM’s acknowledgement that KSM is able to secure the insurance coverage in question, KSM may procure and maintain, at Owner’s sole cost and expense (as an Operating Expense), with insurance companies rated at least A- by Best’s Key Rating Guided, and licensed to do business in Illinois, any of those lines of insurance specified in Section 7.1.1 (A) and (B) above. All such insurance shall name Owner as an additional insured. KSM shall deliver to Owner certificates of insurance evidencing such policies.” Section 2. Amendment to Article 9-Indemnification. Article 9 of the Agreement is hereby deleted in its entirety and replaced with the following: “ARTICLE 9 INDEMNIFICATION 9.1 Owner’s Indemnification Obligations. Owner shall defend, indemnify and hold KSM and each of its shareholders, members, officers, directors, managers, employees, agents, and representatives (the “KSM Related Parties”) harmless of and from all liability, loss, damage, cost, or expense (including without limitation, reasonable attorneys’ fees and expenses) arising from or relating to (i) the ownership or 4 construction of the Property; (ii) Hazardous Materials or other conditions existing at the Property prior to the Commencement Date or as otherwise set forth in Section 3.7; (iii) the authorized use by KSM of Property trade names, trademarks, logos or other intellectual property of the Owner used in connection with the Property; (iv) any negligent acts or omissions of Owner (or its officers, directors, agents, employees, representatives, contractors and others for whom Owner is responsible) relating to the Owner’s obligations under this Agreement; (v) the Owner’s operation or management of the Property prior to the Term; (vi) the relationship between Owner or any of Owner’s affiliates and the prior management company of the Property or any acts or omissions of the prior management company; and (vii) any breach by Owner of any of Owner’s covenants, representations, and warranties herein; to the fullest extent permitted by law, except to the extent such liabilities were caused by KSM’s negligent acts or omissions, willful or criminal misconduct, or fraud. Owner’s duty to defend and indemnify KSM and KSM Related Parties under this Section 9.1 shall survive the expiration of the Term. 9.2 KSM’s Indemnifications Obligations. KMS shall defend, indemnify and hold Owner and Owner’s elected officials, officers, directors, employees, agents, and representatives (“Owner Related Parties”) harmless of and from all liability, loss, damage, cost, or expense (including, without limitation, reasonable attorneys’ fees and expenses) caused in whole or in part by the negligent acts or omissions of KSM (or its officers, directors, agents, employees, representatives, contractors and others for whom KSM is responsible), any breach by KSM of any of KSM’s covenants, representations, and warranties contained in this Agreement, or any other damages related to KSM’s occupancy of, presence on, management or use of the Property or any structures thereon, including any labor or employment condition or situation related to employees hired by KSM (except to the extent legal fees and expenses, damages and other costs in connection with such labor or employment condition or situation are defined as Operating Expenses in Exhibit A), to the fullest extent permitted by law, except to the extent such acts or omissions were explicitly directed or approved by the Owner, or such liabilities were caused by Owner’s willful or criminal misconduct, negligence or fraud specifically relating to the Owner’s obligations under this Agreement. KSM’s duty to defend, indemnify, and hold harmless Owner and the Owner Related Parties shall survive the expiration of the Term.” Section 3. Full Force and Effect. Except as otherwise specifically modified by this Third Amendment, all other provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Third Amendment as of the date written above. KEMPER SPORTS MANAGEMENT, INC. CITY OF LAKE FOREST, ILLINOIS 5 By: Steven K. Skinner Chief Executive Officer By: Name: Title: Third Amendment to Management Agreement 04.07.21swk 1 THIRD AMENDMENT TO MANAGEMENT AGREEMENT THIS THIRD AMENDMENT (“Third Amendment”) to the Management Agreement dated as of January 1, 2015 by and between The City of Lake Forest, Illinois, an Illinois home rule and special charter municipal corporation (“Owner”), and Kemper Sports Management, Inc., an Illinois corporation (“KSM”), is made and entered into as of October 1, 2021 by and between Owner and KSM. Capitalized terms used herein but not defined shall have the meanings as set forth in the Agreement. W I T N E S S E T H: WHEREAS, the Owner owns the public golf course, clubhouse and related facilities located in Lake Forest, Illinois known as the “Deerpath Golf Course” and; WHEREAS, in January of 2015, the Owner and KSM entered into an Agreement for KSM to provide certain management services for the Deerpath Golf Course (“Original Agreement”); and WHEREAS, the parties have subsequently amended the Original Agreement by the First Amendment and the Second Amendment (the Original Agreement and the First and Second Amendments shall be collectively referred to as the “Agreement”); and WHEREAS, the Owner and KSM now desire to further amend the Agreement as set forth herein. NOW, THEREFORE, for and in consideration of the covenants, agreements and obligations of the respective parties as set forth herein, Owner and KSM agree as follows: Section 1. Amendment to Article 7 -Insurance. Article 7 of the Agreement is hereby deleted and replaced in its entirety with the following: “ARTICLE 7 INSURANCE 7.1 Insurance Coverage. During the Term, the following insurance shall be maintained in connection with operations at the Property: 7.1.1 Insurance Maintained by Owner. During the Term Owner shall secure and maintain, at its own cost, the insurance described in (A), (B), and (C) below: (A) Property Insurance covering loss or damage to the buildings, structures or other Improvements, contents, equipment and supplies. KSM understands that coverage for flood, earthquake or wind damage shall be excluded from coverage and damages connected with such events shall be an Operating Expense. Third Amendment to Management Agreement 04.07.21swk 2 (B) Commercial Business Automobile Liability Insurance including coverage for all owned vehicles providing coverage for bodily injury and property damage liability with combined single limits of not less than $1,000,000. (C) Business Interruption, Loss of Income and Extra Expense Insurance that will reimburse Owner for direct and indirect loss of earnings attributable to six months of business interruption and for the actual loss sustained until the structures are substantially rebuilt after an insured property loss. Special Note: the limits of liability specified in B above can be satisfied through a combination of primary, umbrella, or excess liability policies, provided that the coverage under such umbrella or excess liability policies is at least as broad as the primary coverage. 7.1.2 Insurance Maintained by KSM. During the Term, KSM agrees to secure and maintain insurance as set forth below. To the extent that KSM secures insurance only in connection with the Property, the Owner shall have the right to review and approve the policies for such coverages. To the extent that KSM meets the insurance requirements for below through policies applicable to multiple sites inclusive of the Property, KSM’s allocation methodology for premium costs shall be subject to the reasonable review and approval of the Owner. (A) Employment Practices (“EPLI”), Directors and Officers Fiduciary and Crime Liability Insurance of not less than $5,000,000 each occurrence. (B) Workers’ Compensation Insurance in such amounts that comply with applicable statutory requirements, and Employer’s Liability limits, including Umbrella Liability Insurance, if necessary, of not less than $1,000,000 per accident, $1,000,000 disease-policy limit, and $1,000,000 disease each employee. (C) Fidelity Bond or Fidelity Insurance covering all employees who have access to, have responsibility for, or who handle Owner funds. (D) Commercial Liquor Liability providing coverage for damages arising out of the selling, serving, serving or furnishing of any alcoholic beverage with a limit of $5,000,000 per occurrence/$5,000,000 aggregate limit or the minimum limits required by statute if higher. (E) Commercial General Liability and/or Umbrella/Excess Liability Insurance providing coverage for bodily injury and property damage arising in connection with the operation of the Property and including coverage for contractual liability providing limits of not less than: Bodily Injury and Property Damage Liability: $5,000,000 each occurrence Personal Injury and Advertising Liability: $5,000,000 per person or per organization General Policy Aggregate: $5,000,000 Third Amendment to Management Agreement 04.07.21swk 3 Products Liability/Completed Operations Aggregate: $5,000,000 Special Note: the limits of liability specified above can be satisfied through a combination of primary, umbrella, or excess liability policies, provided that the coverage under such umbrella or excess liability policies is at least as broad as the primary coverage The Premium expenses for the insurance requirements set forth in this Section 7.1.2 shall be included as Operating Expenses in the Budget. 7.1.3 Additional Insured Status. All liability insurance coverage maintained by either party hereunder shall name the other party as additional insured on a primary and non- contributory basis to the extent of the Parties’ respective indemnification obligations under Article 9 and shall be maintained with insurance companies rated at least A- by Best Key Rating Guide and shall be licensed to do business in Illinois. Alternatively, Owner may maintain insurance through membership in a self-insured joint municipal risk pool. The Parties shall deliver to the other certificates of such insurance evidencing the required policies and additional insured status. Neither party shall use the Property in any way, or permit upon the Property anything, that will invalidate any policy of insurance now or hereafter carried on the Property or any building or structure thereon. Each party acknowledges that the other party has made no representation or warranty that the above coverages are sufficient to fully protect the other party. 7.2 Option for KSM to Provide Insurance. Upon Owner’s prior written request to KSM and KSM’s acknowledgement that KSM is able to secure the insurance coverage in question, KSM may procure and maintain, at Owner’s sole cost and expense (as an Operating Expense), with insurance companies rated at least A- by Best’s Key Rating Guided, and licensed to do business in Illinois, any of those lines of insurance specified in Section 7.1.1 (A) and (B) above. All such insurance shall name Owner as an additional insured. KSM shall deliver to Owner certificates of insurance evidencing such policies.” Section 2. Amendment to Article 9-Indemnification. Article 9 of the Agreement is hereby deleted in its entirety and replaced with the following: “ARTICLE 9 INDEMNIFICATION 9.1 Owner’s Indemnification Obligations. Owner shall defend, indemnify and hold KSM and each of its shareholders, members, officers, directors, managers, employees, agents, and representatives (the “KSM Related Parties”) harmless of and from all liability, loss, damage, cost, or expense (including without limitation, reasonable attorneys’ fees and expenses) arising from or relating to (i) the ownership or construction of the Property; (ii) Hazardous Materials or other conditions existing at the Property prior to the Commencement Date or as otherwise set forth in Section 3.7; (iii) the authorized use by KSM of Property trade names, trademarks, logos or other intellectual property of the Owner used in connection with the Property; (iv) any Third Amendment to Management Agreement 04.07.21swk 4 negligent acts or omissions of Owner (or its officers, directors, agents, employees, representatives, contractors and others for whom Owner is responsible) relating to the Owner’s obligations under this Agreement; (v) the Owner’s operation or management of the Property prior to the Term; (vi) the relationship between Owner or any of Owner’s affiliates and the prior management company of the Property or any acts or omissions of the prior management company; and (vii) any breach by Owner of any of Owner’s covenants, representations, and warranties herein; to the fullest extent permitted by law, except to the extent such liabilities were caused by KSM’s negligent acts or omissions, willful or criminal misconduct, or fraud. Owner’s duty to defend and indemnify KSM and KSM Related Parties under this Section 9.1 shall survive the expiration of the Term. 9.2 KSM’s Indemnifications Obligations. KMS shall defend, indemnify and hold Owner and Owner’s elected officials, officers, directors, employees, agents, and representatives (“Owner Related Parties”) harmless of and from all liability, loss, damage, cost, or expense (including, without limitation, reasonable attorneys’ fees and expenses) caused in whole or in part by the negligent acts or omissions of KSM (or its officers, directors, agents, employees, representatives, contractors and others for whom KSM is responsible), any breach by KSM of any of KSM’s covenants, representations, and warranties contained in this Agreement, or any other damages related to KSM’s occupancy of, presence on, management or use of the Property or any structures thereon, including any labor or employment condition or situation related to employees hired by KSM (except to the extent legal fees and expenses, damages and other costs in connection with such labor or employment condition or situation are defined as Operating Expenses in Exhibit A), to the fullest extent permitted by law, except to the extent such acts or omissions were explicitly directed or approved by the Owner, or such liabilities were caused by Owner’s willful or criminal misconduct, negligence or fraud. KSM’s duty to defend, indemnify, and hold harmless Owner and the Owner Related Parties shall survive the expiration of the Term.” Section 3. Full Force and Effect. Except as otherwise specifically modified by this Third Amendment, all other provisions of the Agreement shall remain in full force and effect. [Signature page follows] Third Amendment to Management Agreement 04.07.21swk 5 IN WITNESS WHEREOF, the parties have executed this Third Amendment as of the date written above. KEMPER SPORTS MANAGEMENT, INC. By: Steven K. Skinner Chief Executive Officer CITY OF LAKE FOREST, ILLINOIS By: Name: Title: