CITY COUNCIL 12/05/2011
THE CITY OF LAKE FOREST
CITY COUNCIL AGENDA
Monday, December 5, 2011 7:30 p.m.
City Hall Council Chambers
CALL TO ORDER AND ROLL CALL
Honorable James J. Cowhey, Jr., Mayor
Kent Novit, Alderman First Ward Thomas Morsch, Jr., Alderman Third Ward
Catherine Waldeck, Alderman First Ward Donald Schoenheider, Alderman Third Ward
David Moore, Alderman Second Ward Robert Palmer, Alderman Fourth Ward
George Pandaleon, Alderman Second Ward Michael Adelman, Alderman Fourth Ward
PLEDGE OF ALLEGIANCE
REPORTS OF CITY OFFICERS 7:30 p.m.
1. Comments by Mayor
A. Year End Report from the 150th Committee
PRESENTED BY CO-CHAIRMEN JACK PRESCHLACK AND MICHAEL RUMMEL
B. Resolution of Appreciation honoring Heritage Families of Lake Forest
C. Resolution of Appreciation to the 150th Anniversary Committee
D. Resolution of Appreciation for Julie Carpenter for 24 Years of Service
E. Resolution of Appreciation for Elizabeth Miller for service on Plan Commission
Copies of Resolutions beginning on page 11.
2. Comments by City Manager 8:30 p.m.
A. Report from City Attorney on School Resource Officer Matter
B. Approval of a contract with KemperSports Management, Inc. for
providing consulting services and an Operations Manager for Deerpath Golf
Course
PRESENTED BY MARY VAN ARSDALE, DIRECTOR OF PARKS & RECREATION
PURPOSE AND ACTION REQUESTED: Staff requests City Council approval of a contract with
KemperSports Management, Inc. (KSM) for providing consulting services and an Operations
Manager for Deerpath Golf Course.
1
December 5, 2011 Agenda
BACKGROUND/DISCUSSION: For the past six months, a Golf Committee comprised of City
Alderman, Park Board members and City Staff has investigated options via a Request for
Qualifications (RFQ) and Request for Proposal (RFP) process to best address the potential
financial concerns at Deerpath Golf. These concerns are due to decreasing volume of daily
rounds and memberships and as a result of a stagnant golf and local economy. The following
is a brief timeline of the actions taken to date:
Date Action
June 2011 Golf Advisory Committee formed & RFQ distributed
July 2011 RFQ submittals and 4 companies interviewed
August 2011 Public Forum conducted
September 2011 Park Board recommended and City Council authorized
Staff to proceed with RFP Consultant/Manager search
October 2011 RFP submittals and 2 companies interviewed
November 2011 KemperSports Management selected for contract negotiations
The Golf Committee identified five key reasons for why they selected KemperSports
Management (KSM) as the partner to negotiate a contract: 1) lowest price per RFP for
required services, 2) willingness to tie their compensation to positive results for the City, 3)
exceptional customer service and staff training programs, 4) exceptional marketing plan with
enabling technology, and 5) superior knowledge of the Lake Forest community and
Deerpath Golf Course.
CONTRACT/FISCAL IMPACT: The City’s attorney, Holland & Knight, along with City staff
(including City Manager Bob Kiely, Director Mary Van Arsdale, and Superintendent Jeff Wait)
negotiated the details of the attached contract beginning on page 17, including the
selection and approval of an Operations Manager and the financial commitments. Key items
in the contract are highlighted as follows:
• Agreement shall be one year beginning on December 6, 2011, with an option to renew
for a second and third term per conditions specified in the agreement.
• Scope of services clearly identifies that the City maintains complete control over the
course including: the establishment of fees; course maintenance; food & beverage
services; lessons, events and programs; maintenance conditions; maintenance and
operations personnel; and all rules and regulations governing the operation of the
property.
• KSM will provide the Operations Manager (remains Kemper personnel) to assist with the
day-to-day clubhouse operations including oversight of the golf shop operations such
as merchandise, member and daily customer services, events and outings and driving
range; and will advise via consulting services in accordance with the RFP including
development of a business plan; marketing support and analysis; staff training and
customer service programs; and vendor procurement benefits.
• The City’s financial commitment is a fixed management fee of $115,000 for the initial
term of the Agreement ($25,000 base fee, and not to exceed $90,000 Operations
Manager fee inclusive of wage/benefit/payroll taxes). It is important to note that in
FY12 the total compensation package for the current Golf Pro totaled $114,916. As a
result, the proposed agreement is providing the City with similar level of expense but
with significant increase in business benefits.
• The agreement also specifies that the City shall pay KSM an annual incentive
management fee of 10% of gross revenues in excess of the adjusted base revenues
2
December 5, 2011 Agenda
established by the City. This condition allows the City to appropriately compensate
KSM for positive revenue growth achieved due to impacts attributed to the KSM
partnership.
ORGANIZATIONAL STRUCTURE INFORMATION: In addition to the contract, staff has provided a
Deerpath Golf Course Organizational Chart that outlines the hierarchy and leadership
structure for all areas of our golf course business services. This will further illustrate the
communication, authority and roles for all critical positions related to operations. As the chart
indicates, we have created a Golf Advisory Committee, to provide advice on a number of
key items including our long range pricing strategies, 2012 business and marketing plans, and
assistance with developing events and membership activities. The nine member committee,
made up of residents of diverse professional skills and representing all four wards, is advisory
only and does not circumvent the authority of staff, the Park Board or City Council.
Finally, in late November 2011, members of the Ad-hoc Golf Committee and City staff had an
opportunity to interview the proposed KSM Operations Manager candidate and found the
credentials, professionalism and interpersonal skills to be excellent. We are confident that
approving the attached agreement with this quality golf partner will allow Deerpath to
benefit from enhanced best practices, provide us with an outstanding Operations Manager,
and increase the likelihood of financial viability into the future. At a special meeting on
November 29, 2011of the Parks and Recreation Board they unanimously supported the
contract and recommended that it come before City Council for approval.
RECOMMENDED CITY COUNCIL ACTION: Approval of a one year contract with KemperSports
Management, Inc. in the amount of $115,000, not inclusive of an incentive management fee,
for providing consulting services and an Operations Manager for Deerpath Golf Course.
3. Council Committee Reports 9:00 p.m.
A. Finance Committee Report- Presented by Finance Director Kathy Reinertsen
1. Consideration of an Ordinance Establishing the Tax Levy for 2011
(Grant Final Approval)
PURPOSE AND ACTION REQUESTED: Staff requests final approval of the reading of the
2011 tax levy ordinance.
BACKGROUND/DISCUSSION: The annual tax levy must be filed with the County Clerk
before the last Tuesday in December. Spreadsheets reviewing the tax levy for 2011 are
attached for your consideration. These include: 1) the tax levy limitations under the tax
cap 2) the tax levy distributed by fund without new growth and allowances distributed
3) the tax levy by fund with new growth and allowances distributed and 4) an
explanation of the tax increase to an average homeowner.
The tax levy to be approved includes the needs of all City departments, as well as for
pensions and debt service requirements. A summary of the proposed levies is as
follows:
3
December 5, 2011 Agenda
Proposed
FUND 2011 LEVY 2010 Extension $ CHANGE % CHANGE
City General 12,134,003$ 11,869,949$ 264,054$ 2.22%
Pension Funds 4,087,973$ 4,018,750$ 69,224$ 1.72%
Fire Pension PA 93-0689 38,593 53,228 (14,635)$ -27.50%
Recreation 1,242,619$ 1,224,255 18,364$ 1.50%
Parks 2,863,426$ 2,821,109 42,317$ 1.50%
Special Recreation 326,579$ 345,985$ (19,406)$ -5.61%
Library 3,147,821$ 3,087,251$ 60,570$ 1.96%
Library sites 378,188$ 372,599$ 5,589$ 1.50%
Bond Funds 1,669,703$ 2,554,967$ (885,264)$ -34.65%
TOTAL TAX LEVY - CITY 25,888,905$ 26,348,093$ (459,188)$ -1.74%
School District 67- ESTIMATED 28,600,000$ 28,213,696 386,304$ 1.37%
The proposed tax levy for 2011 reflects a 1.74% decrease over the 2010 tax levy
extensions for the City and Library operating funds and City pension and debt service
funds. This decrease is in full compliance with the property tax cap limit of a 1.5%
increase plus new growth. Legislation allows for the exclusion of special recreation
($326,579) and a portion of the fire pension levy ($38,593) from the tax cap. Both
amounts are in the above chart and are further detailed in the attached
spreadsheets. The average decrease to existing residents will be approximately 2.19%
or $58 on a $757,000 home.
RECOMMENDED ACTION: Grant Final approval to the ordinance establishing the Tax
Levy for 2011 for The City of Lake Forest. Copy of Ordinance on page 50.
2. Abating 2011 Tax Levies for Various G.O. Alternate Revenue Bond
Issues (Grant Final Approval)
PURPOSE AND ACTION REQUESTED: Staff requests final approval of the ordinance
abating 2011 Tax Levies.
BACKGROUND/DISCUSSION: These ordinances provide for the abatement of
2011 taxes levied for the various outstanding general obligation ALTERNATE
REVENUE bond issues. The tax levies for all bond issues are established and
recorded with the County Clerk at the time the bonds are issued. Therefore, in
order to reduce the bond tax levies, an abatement ordinance must be
approved and filed with the County Clerk before December 27, 2011.
The abatement of these general obligation (ALTERNATE REVENUE) bonds is
possible due to the fact these bond funds have an adequate revenue source
from water sales, Cemetery revenue, golf fees, sales tax or payments from the
U.S. Treasury. Therefore, the general obligation tax levy can be abated as was
planned at the time the bonds were issued.
4
December 5, 2011 Agenda
a) An Ordinance Abating the Total Tax Being Levied in 2011 for the
Annual Payment of the Principal and Interest on the 2002-A General
Obligation (Waterworks and Sewerage System) Bond Issue
($1,404,000.00)
b) An Ordinance Abating the Total Tax Being Levied in 2011 for the
Annual Payment of the Principal and Interest on the 2004-A General
Obligation (Golf Course) Bond Issue ($78,000.00)
c) An Ordinance Abating the Total Tax Being Levied in 2011 for the
Annual Payment of the Principal and Interest on the 2004-B General
Obligation (Storm Sewer) Bond Issue ($155,250.00)
d) An Ordinance Abating a Portion of the Tax Being Levied in 2011 for
the Annual Payment of the Principal and Interest on the 2010-B
Taxable General Obligation Bond Issue (Recovery Zone Economic
Development Bonds) ($77,625.00)
e) An Ordinance Abating a Portion of the Tax Being Levies in 2011 for the
Annual Payment of the Principal and Interest on the 2010-C Taxable
General Obligation Bond Issue (Build America Bonds – Direct
Payment) ($90,759.00)
f) An Ordinance Abating a Portion of the Tax Being Levies in 2011 for the
Annual Payment of the Principal and Interest on the 2011-A
General Obligation Refunding Bond Issue ($516,262.50)
g) An Ordinance Abating a Portion of the Tax Being Levies in 2011 for
the payment of the Principal and Interest on the 2011-B General
Obligation Refunding Bond Issue ($827,300.00)
A summary of the proposed tax levy abatements are noted below:
Bond Issue
Original
Tax Levy
Tax
Abatement
Net Bond Tax
Levy
2002A G.O. Bonds (WATER) $1,404,000.00 $1,404,000.00 $0
2004A G.O. Bonds (GOLF) $78,000.00 $78,000.00 $0
2004B G.O. Bonds (STM SEWER) $155,250.00 $155,250.00 $0
2010-B Taxable G. O. Bonds $172,500.00 $77,625.00 $94,875
2010-C Taxable G.O. Bonds $259,311.00 $90,759.00 $168,552
2011-A G.O. Refunding Bonds $516,262.50 $516,262.50 $0
2011-B G.O. Refunding Bonds $827,300.00 $827,300.00 $0
TOTALS $3,412,623.50 $3,149,196.50 $263,427
Recommended Action: Grant Final approval of the ordinances abating
tax levies for various general obligation bond issues. Copy of Ordinances
beginning on page 58.
5
December 5, 2011 Agenda
3. Consideration of an Ordinance approving a Fee Schedule (Grant Final
Approval)
PURPOSE AND ACTION REQUESTED: Staff requests final approval of the ordinance.
BACKGROUND/DISCUSSION: As part of the budget process, all departments reviewed
their user fees. Total fee increases for established fees are estimated to be $30,965 in
the Parks and Recreation Fund and $ 51,238 in the Deerpath Golf Course Fund.
Revenue for the new fees related to development activity is estimated to be $1,720 in
the General Fund. If the City Council is in agreement with these new fees, the
ordinance will be presented at a future meeting.
RECOMMENDED ACTION: Grant final approval to the ordinance approving a fee
schedule for The City of Lake Forest. Copy of Ordinance beginning on page 65.
4. Consideration of an Ordinance Related to Annual Fees for the Parks and
Recreation Fund and the Senior Resources Fund (Grant Final Approval)
PURPOSE AND ACTION REQUESTED: Staff requests final approval of the ordinance.
BACKGROUND/DISCUSSION: As was discussed at the July 18, 2011 Finance Committee
meeting, an ordinance that will allow certain fees for the Parks and Recreation Fund
and the Senior Resources Fund to be set by their respective boards needs to be
passed by the City Council. This ordinance will also state that certain annual fees such
as memberships for the Parks and Recreation Fund and Senior Resources Fund will be
approved by the City Council.
RECOMMENDED ACTION: Grant final approval to the ordinance related to Annual Fees
for the Parks and Recreation Fund and Senior Resources Fund. Copy of Ordinance
beginning on page 72.
4. Comments by Council Members 9:15 p.m.
OPPORTUNITY FOR PUBLIC TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
CONSENT AGENDA 9:35 p.m.
6
December 5, 2011 Agenda
1. Approval of Authorized Invoices and Payrolls
Check Register For Period October 29, 2011 - November 25, 2011
Fund Invoice Payroll Total
General 548,578 1,040,451 1,589,029
Water & Sewer 64,494 110,004 174,498
Parks & Recreation 117,936 289,922 407,857
Capital Improvements 78,068 4,592 82,660
Bond Funds - Projects 64,438 0 64,438
Motor Fuel Tax 134,698 0 134,698
Cemetery 13,076 16,347 29,423
Senior Resources 13,188 19,116 32,304
Deerpath Golf Course 15,462 41,134 56,596
Fleet 145,232 41,975 187,207
Debt Funds 21,250 0 21,250
Housing Trust 0 0 0
Park & Public Land 275 0 275
All other Funds 212,292 7,739 220,031
$1,428,986
$1,571,280
$
3,000,266
2. Approval of the Minutes from the November 21, 2011 Regular City Council Meeting
A copy of the minutes is attached beginning on page 75.
RECOMMENDED ACTION: Approve consent agenda as presented.
ORDINANCES 9:25 p.m.
1. Consideration of an Ordinance Amending Real Estate Transfer Tax Exemptions
PRESENTED BY CITY ATTORNEY VICTOR FILIPPINI
The City imposes a real estate transfer tax on real estate transferred for use on infrastructure
improvements. The City Code exempts certain types of transactions from the imposition of
this tax. As the Code is currently written, transactions involving deeds issued to a holder of a
mortgage pursuant to a mortgage foreclosure proceeding and transactions where the
actual consideration is less than $100 are exempt.
With the recent increase in commercial and residential mortgage foreclosure actions, it has
come to our attention that mortgage holders are routinely foreclosing on a mortgage and
then transferring the certificate of sale for no consideration to a wholly owned subsidiary. The
wholly owned subsidiary then takes title to the property. This transaction would be exempt if
the mortgage holder were to take title first and then transfer the deed to the wholly owned
subsidiary, but mortgage holders are reluctant to do so because of the liability issues involved.
7
December 5, 2011 Agenda
The proposed change would make transactions in which a wholly owned subsidiary of a
mortgage holder takes title pursuant to a mortgage foreclosure proceeding or pursuant to a
transfer in lieu of foreclosure exempt from the real estate transfer tax.
RECOMMENDED ACTION: Waive first reading and grant final approval. Copy ordinance
beginning on page 86.
NEW BUSINESS 9:40 p.m.
1. Consideration of Recommendation to Support Phase 2 Professional Services by
Quandel Consultants, LLC evaluating the feasibility of a potential Amtrak stop at the
Telegraph Road Train Station.
PRESENTED BY CARINA WALTERS, ASSISTANT CITY MANAGER (810-3680)
PURPOSE AND ACTION REQUESTED: If appropriate, and should the City Council desire, to
execute Phase 2 Professional Services contract with Quandel Consultants, LLC.
BACKGROUND/DISCUSSION: In January 2010, the City Council authorized the approval of a
Professional Service Agreement with Charlie Quandel of Quandel Consultants, LLC, to
conduct the preliminary engineering feasibility of implementing a Lake Forest stop of the
Hiawatha Regional Passenger Rail Service. During this evening’s Committee of the Whole
meeting, Charlie Quandel and Bob Moore of Quandel Consultants, LLC provided an
overview of the Phase 1 study results.
Aspects of Phase 1 study included Quandel Consultants facilitating meetings with IDOT,
WisDot, Metra, Amtrak and the City to identify the concerns and benefits of each
transportation agency by adding a potential stop. The data collection and analysis included
a ridership study to anticipate potential riders of Amtrak and how adding a stop would affect
Metra, Amtrak and freight traffic. As a result of the study, Quandel Consultants identified
potential scheduling conflicts among the transit providers to be explored in Phase 2.
Based upon this baseline data, Quandel Consultants have revised their original proposal from
January 2010 to implement four tasks in Phase 2:
1. Gather more data to understand Amtrak and Metra operations and opportunities for
modification, identify a better mechanism to capture capacity data;
2. Analysis of operation data to identify possible changes;
3. Exploration of stakeholders to explore opportunities for change; and
4. Development of agreements for schedule and operational changes.
For your convenience, on page 89 of your packet is the original Professional Services
Agreement approved by the City Council in January 2010 and a copy of the reduced
proposal on page90 of your packet. The City Council will notice an $11,866 reduction from
the original quoted price $116,048.83. Based upon the outcomes of the Phase 1 study, staff
recommends the City Council to authorize Quandel Consultants, LLC to conduct Phase 2 of
their Professional Services Agreement not to exceed $40,000.
8
December 5, 2011 Agenda
BUDGET/FISCAL IMPACT:
FY2012
Funding Source
Account Number Account Budget Amount Requested Budgeted?
Y/N
TIF Fund
Charged TIF account
$40,000
Y
RECOMMENDED ACTION: If appropriate and should the City Council desire, Authorize the
execution of the Phase 2 Professional Services contract by Quandel Consultants, LLC
evaluating the feasibility of a potential Amtrak stop at the Telegraph Road Train Station not to
exceed $40,000.
2. Award of a professional services contract to Quandel Consultants, LLC for assisting with
the Phase I preliminary engineering on the Telegraph Rd train station pedestrian
underpass project.
PRESENTED BY: Ramesh Kanapareddy, P.E., CFM, City Surveyor & Engineer
PURPOSE AND ACTION REQUESTED: Award of an engineering services contract to Quandel
Consultants, LLC.
BACKGROUND/DISCUSSION: This past summer the City received $2 million in High-Speed Rail
grade crossing grant funds from IDOT and the federal government to build a pedestrian
underpass beneath the railroad tracks at the Telegraph Rd train station. Quandel Consultants
(Quandel) have been working with the City on the feasibility of a Lake Forest stop on the
Hiawatha regional passenger rail service. The local match for the grant is 20%.
In order to move the underpass project along IDOT requires the grant recipient (City) is
required to perform a Phase I preliminary engineering study, a Phase II final design
engineering service, and a Phase III construction that includes engineering inspectional
services. City is in the process of securing an engineering firm to perform the Phase I
preliminary engineering and initiate the IDOT grant paperwork.
Quandel will assist the City in the planning phase for Phase I preliminary engineering. With
their expertise in railroad operations and their involvement in the possibility of a new high-
speed rail connection between Milwaukee and Chicago, Quandel will play an advisory role
on the underpass project. In addition, with the reduction in staff and to coordinate with
various state and federal agencies who are involved in the underpass project, Quandel will
assist the City and selected engineering firm in complying with the regulations, especially
related to railroad authorities. Quandel will also be utilized for the following tasks:
1. Assistance with engineering and construction agreements
2. Project scope preparation and RFQ evaluation for selection of engineering firm
3. Selection of the engineering firm
4. Stakeholder coordination meetings with various agencies.
The tentative timeline for the underpass project calls for approval of Phase I preliminary
engineering by IDOT and METRA at the end of 2012, with Phase II design work approval to be
completed by 2013 and possible construction for the underpass project tentatively scheduled
9
December 5, 2011 Agenda
for summer of 2014. These are tentative timelines based on the IDOT’s paperwork approval
process and can be expedited or delayed depending on the grant requirements.
BUDGET/FISCAL IMPACT: Since the project is located in the TIF district TIF funds will be used to
pay for the engineering services contract to Quandel.
Below is a summary of Project budget:
FY 2011-12 Funding
Source
Amount
Budgeted
Amount
Requested
Budgeted?
Y/N
TIF $23,500.00 Y
RECOMMENDED ACTION: Award of a professional services contract to Quandel Consultants,
LLC for a not-to-exceed amount of $23,500.
3. iPad Discussion (Time Permitting)
ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
ADJOURNMENT 10:00 p.m.
Office of the City Manager December 2, 2011
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.
10
The City of Lake Forest
Sesquicentennial
Recognition
December 5, 2011
City Council Meeting
City Hall
150th Events
• Charter Signing Re-Enactment at City Council
Meeting
• Special Exhibits at the Historical Society
• Architecture Tours planned by the Preservation
Foundation
• 150 Tree Planting Project
• Special Lake Forest Symphony Concerts
• Earth Day Events co-sponsored by Lake Forest
Open Lands Association
• Special Home Tours held by Spirit of 67
Foundation
• Family Fun Fair in Market Square sponsored by
the Preservation Foundation
• Special Festival & Fireworks Celebration
sponsored by the Friends of Parks and Recreation
• Sunrise Service at the Beach on Lake Forest Day
• Special Lake Forest Day Parade and Carnival held
by American Legion Post 264
• Heritage Festival in Market Square with Ice Cream
Social, Taste of Lake Forest, local jazz artist Clark
Sommers and a rock concert with the Dave Ma-
son Band featuring local musicians Chris Stewart
and Louie Zagoras
11
Agenda
7:30 p.m.
Mayor James J. Cowhey, Jr. will recognize 150th Anniversary
Committee Co-Chairmen Mike Rummel and Jack Preschlack.
They will speak to the importance of the spirit of volunteerism
in the community and thank the Committee and families in Lake
Forest who have made significant contributions over the past.
While they speak, a video of Centennial Families, recognized by
the Historical Society, will be shown.
7:40 p.m.
A short video presentation that was created for the Heritage
Festival on Labor Day weekend will be shown.
7:45 p.m.
A Resolution of Appreciation will be presented to the 150th An-
niversary Committee, who planned, raised funds and executed
a multitude of events throughout 2011. A second Resolution
of Appreciation will be read recognizing the Heritage Families,
intended to complement the Centennial Families. The Heritage
Families have made significant contributions to Lake Forest over
the past two or more generations and serve as role models for
future generations of Lake Foresters.
8 p.m.
In appreciation for all who contributed to the great success of
Lake Forest’s 150th Celebration, Mayor Cowhey invites families,
donors and members of the Committee to join them at South
Gate Cafe for cake and coffee. If they are able, the City Council
and staff will join the celebration at the end of the meeting.
Donors
Abbott
Mr. and Mrs. John A. Andersen
Mr. Vernon Armour
Buchanan Family Foundation
Butler Family Foundation
Mr. and Mrs. Peter Roy Carney
Mr. and Mrs. Henry T. Chandler
Mr. and Mrs. Charles F. Clarke, Jr.
Mr. and Mrs. James J. Cowhey, Jr.
Mr. and Mrs. Wesley M. Dixon, Jr.
W. W. Grainger, Inc.
Mr. and Mrs. John K. Greene
Mrs. Augustin S. Hart, Jr.
Mr. and Mrs. Samuel J. Henry
HSBC
The Hunter Family
Mr. and Mrs. Harold S. Jensen
Mr. and Mrs. Howard J Kerr
Mr. and Mrs. John H. Krehbiel, Jr.
in Honor of Frank J. Waldeck
Lake Forest Bank & Trust
Company
Mr. and Mrs. John S. Lillard
Mr. and Mrs. David O. MacKenzie
Harold M. and Adeline S.
Morrison
Northern Trust Bank
Northwestern Lake Forest
Hospital
Mr. and Mrs. John E. Preschlack
Mr. and Mrs. S. Michael Rummel
Mr. and Mrs. Mark F. Saran
Chris and Maggie Stewart
Mr. and Mrs. Alexander D. Stuart
Mr. and Mrs. Robert D. Stuart, Jr.
Mr. and Mrs. David A.F. Sweet
Mr. and Mrs. Richard E. Uihlein
Mr. and Mrs. Frank J. Waldeck
Mr. and Mrs. Arthur M. Wood, Jr.
12
RESOLUTION
WHEREAS, during the year of 2011, The City of Lake Forest celebrated the 150th anniversary of its
founding on February 21, 1861; and
WHEREAS, The City of Lake Forest was founded on the principles of excellence in education and faith;
and
WHEREAS, The City of Lake Forest honors its founding fathers and residents who created the
community character of Lake Forest and have carried its traditions through a century and a half; and
WHEREAS, based on these philosophies of excellence, the residents of Lake Forest will perpetuate
these ideologies and pass them on to younger generations to ensure that Lake Forest will be a special
place for years to come; and
WHEREAS, this Resolution is intended to complement the Centennial Families recognized by the Lake
Forest-Lake Bluff Historical Society by paying tribute to the families who have made significant
contributions to Lake Forest over the past two or more generations and/or who serve as role models for
future generations of Lake Foresters;
THEREFORE BE IT RESOLVED that The City of Lake Forest gratefully acknowledges the Heritage
Families of Lake Forest listed below:
Chandler
Clarke
Dick
Dixon
Farwell
Faulk-Rafferty-Athenson
Foster-Stirling
Gorter
Grumhaus
Hunter
Looby
McBride-Greene
Saran
H. Brooks Smith
Strenger
Stuart-Hart
Swarthout
Waud
Dated: December 5, 2011 ______________________________
Mayor
13
RESOLUTION
WHEREAS, during the year of 2011, The City of Lake Forest celebrated the 150th anniversary of its
founding on February 21, 1861; and
WHEREAS, The City of Lake Forest, whose volunteer community and creative thinkers are the
lifeblood of the community, working hard daily in support of the City’s natural beauty, philosophies of
excellence, our local institutions and cultural arts, stepped forward to form the 150th Anniversary
Committee; and
WHEREAS, former Mayors S. Michael Rummel and John E. Preschlack volunteered to lead the noble
efforts of this Committee;
WHEREAS, this Committee was charged with raising the funds necessary to run and to operate a year-
long itinerary of events and activities to commemorate the 150th Anniversary; and
WHEREAS, the multitude of these events brought the community together on all topics of interest on
behalf of and for the betterment of The City of Lake Forest;
THEREFORE BE IT RESOLVED that The City of Lake Forest gratefully acknowledges the
accomplishments of the 150th Anniversary Committee and thanks them for their energy and spirit which
constituted the great success of the Celebration.
Dated: December 5, 2011 ______________________________
Mayor
14
RESOLUTION
2011-22
WHEREAS, JULIE M. CARPENTER has been a dedicated employee of The City of Lake
Forest for 24 years since joining the City on September 28, 1987; and
WHEREAS, JULIE M. CARPENTER began her career with the City of Lake Forest as an
administrative assistant in the City Manager’s Office at City Hall and joined the Community
Development Department in July, 1996, bringing her energy and enthusiasm to the Municipal Services
Facility; and
WHEREAS, JULIE M. CARPENTER, during her time in the Community Development
Department, provided ongoing support to five Boards and Commissions and numerous special
committees and task forces; and
WHEREAS, JULIE M. CARPENTER did whatever needed to be done to support the
department, the City organization and those around here; and
WHEREAS, JULIE M. CARPENTER had an amazing ability to recall details of various
meetings and projects; remember names, faces and addresses; find missing files and most amazing, she
could read minds and as a result, was often more than one step ahead of everyone else; and
WHEREAS, JULIE M. CARPENTER brought a unique style and sense of humor to the office,
remembered birthdays and found a way to make those around her feel special; and
WHEREAS, JULIE M. CARPENTER will be missed not only by her co-workers, but also by
the many Board members, Commissioners and residents who relied on her as their “go to person”; and
WHEREAS, JULIE M. CARPENTER will honorably retire from the City on November 30,
2011.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LAKE FOREST that the Council, on behalf of the administration and residents of the community,
hereby expresses its appreciation and gratitude to JULIE M. CARPENTER for a public service
faithfully performed; and
BE IT FURTHER RESOLVED that the City Clerk be and hereby is instructed to deliver a copy
of this resolution duly signed by the Mayor to JULIE M. CARPENTER this 5th day of December
2011.
Mayor 15
RESOLUTION OF APPRECIATION
WHEREAS
Elizabeth Miller
has served The City of Lake Forest as a member of the
Plan Commission
May 20 10 to September 2011
WHEREAS, she has devoted much valuable time and personal attention to the work of
this commission and, on behalf of the citizens of Lake Forest, continually met her
responsibilities with purpose and dedication; and
WHEREAS, the citizens of Lake Forest recognize and are deeply appreciative of the
valuable time and service she contributed to the preservation and improvement of the
quality of life in our community by serving on this commission;
NOW, THEREFORE, BE IT RESOLVED that the City Council of The City of Lake Forest,
Illinois, hereby expresses the profound gratitude of the citizens of Lake Forest to
Elizabeth Miller for the loyal and faithful public service she has given by means of this
resolution, which shall be spread upon the permanent records of the City Council.
Adopted by the City Council of
The City of Lake Forest this
Fifth day of December, 2011.
______________________________
Mayor
16
KSM Management Agreement Deerpath 11/20/11
MANAGEMENT AGREEMENT
THIS MANAGEMENT AGREEMENT (“Agreement”) is made and entered into as of
December __ 2011, by and between the City of Lake Forest, Illinois, an Illinois municipal
corporation (the “City”) and Kemper Sports Management, Inc., an Illinois corporation (“KSM”).
W I T N E S S E T H:
WHEREAS, the City owns the golf club facilities located in Lake Forest, Illinois known
as “Deerpath Golf Course” (the “Course”);
WHEREAS, the City and KSM desire for KSM to provide Management Services as
defined in Article 3 through an Operations Manager (who will be a KSM employee), subject to
the terms and conditions set forth herein;
WHEREAS, the City will retain overall control of the Course and its activities, as well as
management responsibilities of the golf course maintenance, food and beverage services, and
golf lesson services at the Course, which KSM will not oversee or manage; and
NOW, THEREFORE, for and in consideration of the mutual covenants, promises, and
agreements herein contained, the parties hereto agree as follows:
ARTICLE 1
DEFINITIONS
1.1. Definitions. All capitalized terms referenced or used in this Agreement and not
specifically defined herein shall have the meanings set forth on Exhibit A attached hereto.
ARTICLE 2
APPOINTMENT AND TERM
2.1. Appointment. The City hereby retains, engages and appoints KSM as the City’s
agent to perform the Management Services during the Term, as more fully described herein, and
KSM hereby accepts said appointment upon and subject to the terms hereof.
2.2. Term. The "Term" of this Agreement shall be one year beginning on December 6,
2011 (the “Commencement Date”) and terminating on December 6, 2012 (the "Termination
Date"); provided, however, that:
(A) the Term of this Agreement shall automatically renew for an additional term until
April 30, 2013, unless either of the Parties notifies the other prior to September 6,
2012 of its intent not to renew this Agreement for a second term; and
17
KSM Management Agreement Deerpath 11/20/11 2
(B) the Term of this Agreement shall automatically renew for a third term until April
30, 2015, unless either of the Parties notifies the other prior to September 6, 2013
of its intent not to renew this Agreement for a third term.
ARTICLE 3
MANAGEMENT SERVICES
3.1. Management Services. KSM shall provide the management services described in
this Article 3, specifically:
(A) provide an Operations Manager for Clubhouse Activities (as further described in
Section 3.3 of this Agreement);
(B) develop an annual business plan for review and approval by the City;
(C) provide oversight of golf shop operations, including without limitation
merchandise, member services, events and outings, and driving range;
(D) develop and implement Course marketing plans and initiatives;
(E) prepare course revenue reports;
(F) assist the City in evaluating the purchase of capital and bulk items utilized in
connection with the Course, and cooperate with the City in maximizing
purchasing power for such items;
(G) provide consulting services in accordance with the "Request for Proposals:
Deerpath Golf Course, Operations Manager/Consulting Services" issued by the
City on October 7, 2011 (the "RFP"); and
(H) perform such other tasks expressly directed in writing by the City's
Superintendent of Special Facilities in accordance with this agreement.
(collectively, the “Management Services”). These Management Services will be provided by
KSM on behalf of and for the account of the City, subject to the terms hereof and consistent with
the Operating Budget developed and authorized by City, as well as the City's personnel policies.
The City hereby delegates to KSM, subject to: (i) the approved business plan(s); (ii) the City’s
approval rights specifically described in this Agreement (the “Approval Rights”); (iii) Operating
Budget; and (iv) other terms and conditions set forth herein, the discretion and authority to
implement the City's operating policies and procedures, standards of operation, house rules,
standards of service, pricing, and other policies, rules, and regulations affecting the Course or the
Property or the operation thereof, to implement all of same, and to perform any act on behalf of
the City deemed by KSM to be necessary or desirable to provide the Management Services.
3.2. Use of the Property. The City hereby agrees to provide KSM with appropriate
office and other space during the Term to allow KSM to perform the Management Services (the
18
KSM Management Agreement Deerpath 11/20/11 3
"Space"). KSM shall, upon the expiration or prior termination of the Term, vacate and surrender
the Space to the City.
3.3. Scope of Services. KSM will provide the Management Services described in
Article 3.1 or as otherwise approved by the City. KSM will operate the Clubhouse Activities to
high quality standards (i.e., customer service, etc.) as provided for in the approved Operating
Budget. Subject to the terms of this Agreement and the approved Operating Budget, KSM shall
have the authority and responsibility to:
3.3.1. Manage and supervise all day-to-day operations of the Clubhouse
Activities, including tee time reservations, collecting green and cart fees, overseeing pace
of play and course conduct, clubhouse operations, outside operational services, managing
tournaments and events, and use commercially reasonable efforts to achieve the approved
Operating Budget. For purposes of this Agreement, Clubhouse Activities do not include
maintenance of the Course grounds, food and beverage services; or golf lesson services.
In the event that the Ooperations Mmanager position becomes vacant, KSM is responsible
for finding temporary and permanent replacement to fulfill this contract Agreement with
said personthat position, subject to the approval of the City;
3.3.2. Implement the policies and standards of the Course, as approved by City;
3.3.3. Establish high quality golf course standards approved by City and funded
appropriately in the Operating Budget;
3.3.4. Implement KSM's proprietary Staff Training and Customer Service
programs for City employees to improve the golf experience for all property guests;
3.3.5. Evaluate part-time operational staffing needs and assist with the hiring,
training, supervision, and evaluation of all employees required to carry out KSM's
responsibilities under this Agreement;
3.3.6. Prepare operational reports and analyses setting forth progress, adverse
trends, and conclusions and recommendations to maximize revenues and utilization of the
Course;
3.3.7. Assist in the collection of timecards, payroll, personnel scheduling and
duties, etc.
3.3.8. Help determine and monitor hours of club house operations, dress code
requirements, establish starter, marshal and other outside services and establish handicap
services;
3.3.9. Assist the City in acquiring goods and services pursuant to the KSM
Preferred Vendor Program;
3.3.10. Market the Course to achieve targeted objectives;
19
KSM Management Agreement Deerpath 11/20/11 4
3.3.11. Consult with the City and make recommendations regarding the City's
acquisition of software licenses for enhanced operations of the Clubhouse Activities,
which licenses shall be obtained in the name of the City; and
3.3.12. Comply with all insurance and other legal requirements as applicable to
the City as a governmental body; and
3.3.13. Not less than bi-annually, appropriate City representatives and KSM
representatives shall meet to discuss the contract performance.
3.4. Budgets. All budgets as hereinafter set forth (collectively the “Budgets”) shall be
prepared by the City with the advice and in consultation with KSM. The parties shall mutually
develop reasonable assumptions and projections for the preparation of such Budgets. All Budgets
shall be presented in reasonable detail and shall be subject to the review and approval of the City
Council. KSM shall not be deemed to have made any guarantee or warranty in connection with
the results of operations or performance set forth in the Budgets, and the parties acknowledge that
the Budgets are based solely upon the parties' judgment and the facts and circumstances known by
the parties at the time of preparation.
3.4.1 Operating Budget. During the Term, by November 15th preceding the
City’s fiscal year that begins on May 1, the City shall submit to KSM, for review and
written recommendation, an Operating Budget setting forth the forecasted revenues and
expenses associated with the City's and KSM’s operations of the Course for the
upcoming fiscal year or part thereof within the Term. (the “Operating Budget”).
3.4.2 Capital Expenditures Budget. During the Term, by October 1st preceding
the City's capital planning schedule, KSM in consultation with the City shall assist in the
preparation of a capital expenditure list setting forth the proposed capital improvements
(including equipment purchases and leases) relating to or affecting the Course for the
upcoming fiscal year or part thereof within the Term (the “Capital Expenditures
Budget”). These expenses will then be incorporated within the Operating Budget for
review and approval by the City and in accordance with the specified City budget
planning calendar. Said capital expenditure list shall be prepared by the City and KSM
by October 1st preceding the City’s capital planning schedule.
3.4.3 KSM Budget; City Approval of Budgets. Upon receipt of any of the
proposed Budgets, KSM shall promptly review such Budget(s) and deliver its written
comments and recommendations to the City as expeditiously as possible, but in no event
later than 30 days after receipt of a proposed Budget document from the City. In the
event of that the City fails to approve or delays its approval of any Bud gets, KSM shall
perform its Management Services based upon the Budgets then in effect from the prior
fiscal year of the City until such time as the City approves replacement Budgets.
3.4.4 Unanticipated Expenditures and Reallocation of Funds. The City agrees
that the Budgets are intended to be reasonable estimates, and, accordingly, KSM shall be
entitled from time to time to request changes to the Budgets to cover any expenditures
that were unanticipated at the time of preparation of the Budgets but are reasonable and
20
KSM Management Agreement Deerpath 11/20/11 5
necessary to carry out the provisions of this Agreement; provided, however, that except
as otherwise set forth in this Agreement, KSM shall be required to obtain the City’s prior
written approval of any expenditures which would result in the total expenditures in any
particular department category set forth within the Budget being exceeded by more than
five percent (5%). KSM is authorized to take all action reasonably deemed necessary by
KSM to implement, perform, or cause the performance of the items set forth in the
Budgets. The City acknowledges that KSM has not made any guarantee, warranty, or
representation of any nature whatsoever concerning or relating to (i) the Budgets, or (ii)
the amounts of Gross Revenues or Operating Expenses to be generated or incurred from
the operation of the Course.
3.5. Course Operations. The Parties acknowledge and agree that the overall Course
operations shall be under the control of the City, with KSM assisting the City in the Course
operations in the manner and to the extent set forth in this Agreement. With respect to the
Management Services, KSM shall use commercially reasonable efforts to perform all acts that are
necessary in the opinion of KSM to perform its Management Services, subject to the Budgets, the
Approval Rights, and terms and conditions set forth herein. KSM shall perform its Management
Services on behalf of, for the account, and at the sole cost and expense of, the City, in accordance
with the standards of quality expected at high quality golf courses in the vicinity of the Course.
KSM shall have the authority and responsibility for the performance of the Management Services
(including the administration, operation, and management of the Clubhouse Activities), except as
otherwise retained by the City. For purposes of clarity, the responsibilities of the Parties shall
include:
3.5.1 Financial Management, Accounting Records and Reporting. The financial
management, accounting, recordkeeping, and reporting for the Course will be
performed in part by both the City and KSM. All accounting records shall be
maintained in a format consistent (in all material respects) with generally
accepted accounting principles. The respective responsibilities of the Parties are
as follows:
3.5.1.1 The City will:
3.5.1.1.1 maintain all books, records, and other data associated with the
financial activities of the Course;
3.5.1.1.2 prepare all operating budgets;
3.5.1.1.3 prepare all capital expenditure budgets;
3.5.1.1.4 submit to KSM, promptly (i.e., within 5 days) after the close of each
calendar month, an unaudited financial statement showing in
reasonably accurate detail the financial activities of the Course for the
preceding calendar month and the fiscal year to date;
3.5.1.1.5 submit to KSM, promptly [i.e., within sixty (60) days] after the close
of each fiscal year, a financial statement showing in reasonably
21
KSM Management Agreement Deerpath 11/20/11 6
accurate detail the financial activities of the Course for the fiscal year
then ended
3.5.1.1.6 provide reasonably appropriate accounting, operating, and
administrative controls governing the financial aspects of the Course,
such controls to be consistent (in all material respects) with generally
accepted accounting principles; and
3.5.1.1.7 maintain a set of all financial, vendor, and operating records relating to
the Course at the Property.
3.5.1.2 KSM will:
3.5.1.2.1 prepare monthly reports as identified in 3.3.6;
3.5.1.2.2 be responsible for the day-to-day cash handling and revenue reports of
the Clubhouse Activities, including handling arrangements for daily
bank deposits at the City’s identified banking institutions;
3.5.1.2.3 submit in a timely fashion all payable invoices to the City with a
written approval regarding whether such invoices should be paid in
whole or in part. For any invoice that is not to be paid in full, KSM
shall provide a written explanation setting forth the reasons that such
invoice should not be fully paid; and
3.5.1.2.4 cause the KSM Operations Manager to be trained by the City to
prepare and deliver bank deposits to identified banking institutions of
the City.
3.5.1.3 Records and Inspections. At any time during the Term, either Party shall
have the right, after five (5) days prior written notice to the other Party, to
inspect the books, records, invoices, deposits, canceled checks, or other
financial data or transactions of the Course at reasonable times and during
normal business hours; provided, however, the inspecting Party shall use its
best efforts to not cause any disruptions in the operations of the Course in
connection with such inspections and shall perform such inspections in a
manner that does not affect the City's compliance with the Local Records Act.
Notwithstanding the foregoing, such inspection rights of the City shall not
extend to any inspection of KSM corporate records at its corporate office or
any records relating to any other projects or locations. Upon expiration or
termination of this Agreement, KSM will promptly turn over all Course
records to City.
3.5.2 Employee(s). As part of the Operating Budget, KSM the Operations Manager
shall work closely with the City to: (i) determine personnel requirements,
recruitment schedules, and compensation levels, (ii) determine or furnish job
descriptions, performance appraisal procedures, and operational and procedural
manuals for all personnel, and (iii) establish forms and procedures for employee
22
KSM Management Agreement Deerpath 11/20/11 7
compensation and Course incentive programs. KSM The Operations Manager
shall be responsible for the daily supervision and management of part-time
personnel engaged in the Clubhouse Activities, and KSM the Operations Manager
shall perform such personnel supervision and management in accordance with the
City’s personnel policies and procedures. KSM The Operations Manager will
have the authority to train, coach, and direct the conduct of personnel on a daily
basis. KSM The Operations Manager will advise on matters of hiring, promotion,
and discipline, with final authority and action the responsibility of the City.
Personnel practices of 3.5.2 do not apply to the Operations Manager, who shall be
an employee of KSM. The Parties acknowledge and agree that this Section 3.5.2
does not apply to course personnel employed outside the scope of KSM’s
responsibilities within this Agreement.
3.5.3 Marketing. KSM shall make recommendations to the City as to green fees and
other fees and rates. KSM shall develop the ongoing marketing plan for the
Course and define a schedule of marketing and advertising activities, which shall
be submitted to the City as part of the Operating Budget. Upon the City’s
approval, KSM shall indicate on the premises that the City has partnered with
KSM.
3.6 Environmental Remediation. Throughout the Term, if KSM becomes aware of
the presence of any Hazardous Material in a quantity sufficient to require remediation or
reporting under any Environmental Law in, on or under the Property, or if KSM, the City, the
Course, or the Property becomes subject to any order of any federal, state, or local agency to
investigate, remove, remediate, repair, close, detoxify, decontaminate, or otherwise clean up the
Property, KSM shall, at the City’s request and sole expense, use all commercially reasonable
efforts to carry out and complete any required investigation, removal, remediation, repair,
closure, detoxification, decontamination, or other cleanup of the Property; provided that such
remediation activities shall be at KSM’s expense if such activities are required as a direct
consequence of Hazardous Material being present in, on, or under the Property solely as a result
of grossly negligent actions undertaken (or a grossly negligent failure to act) by KSM. The City
acknowledges and agrees that the City shall be solely responsible for any legal or other liability
arising out of the presence of any Hazardous Material in, on, or under the Property, except to the
extent such Hazardous Material is present in, on, or under the Property solely as a result of
grossly negligent actions undertaken (or a grossly negligent failure to act) by KSM.
3.7 Contracts. The City, in the name of the City, shall negotiate, consummate, enter
into, and perform all contracts for the furnishing of all utilities, entertainment, operating supplies,
equipment, and other materials and services as KSM recommends and the City determines are
needed from time to time for the management and operation of the Course. KSM shall consult
with the City as requested in conjunction with any such contracts.
3.8 Licenses, Permits, and Accreditations. The City shall apply for and use its
commercially reasonable efforts to obtain and maintain, in the City’s name (or, if otherwise
required by applicable law, in KSM’s name), all licenses, permits, and accreditations required in
connection with the management and operation of the Course, the cost of which shall be an
23
KSM Management Agreement Deerpath 11/20/11 8
Operating Expense. KSM will cooperate with The City in applying for, obtaining, and
maintaining such licenses, permits and accreditations.
3.9 Legal Action. KSM may not institute any legal action by or on behalf of the City
or the Course without the prior written consent of the City. The City may not institute any legal
action by or on behalf of KSM without the prior written consent of KSM.
3.10 Compliance with Laws. KSM shall comply with all federal, state and local laws,
ordinances, rules, or governmental regulations now or hereafter in force, or by order of any
governmental or municipal power, department, agency, authority, or officer (collectively
“Laws”) applicable to the use and operation of the Course, whether or not compliance therewith
shall interfere with the use and enjoyment of the Course. KSM shall procure, maintain, and
comply with all licenses and other authorizations required in connection with the Management
Services, the costs of which shall be Operating Expenses. The City acknowledges and agrees
that The City or its construction contractors shall be responsible for procuring, maintaining and
complying with all licenses and other authorizations relating to design, construction, zoning,
erection, installation and similar matters relating to any construction or maintenance at the
Course. If at any time during the Term KSM is notified or determines that repairs, additions,
changes, or corrections in the Property (other than normal maintenance relating to the Clubhouse
Activities) of any nature shall be required by reason of any Laws, KSM shall notify the City, and
the City will be responsible to take reasonable steps to repair and correct any such repairs,
additions, changes, or corrections.
3.11 Other Duties and Prerogatives. KSM shall use commercially reasonable efforts to
perform any act that is necessary to perform the Management Services herein during the Term
(subject to the terms and conditions hereof and the approved Budgets), including without
limitation: the collection of proceeds from the operation of the Course; the incurring of trade
debts in the City’s name (subject to the approved Budgets); the approval and payment of
obligations; and the negotiating and signing of leases and contracts. KSM shall not be obligated
to advance any of its own funds to or for the account of the City or to incur any liability, unless
the City shall have furnished KSM with funds necessary for the full discharge thereof. Further,
KSM shall not be obligated to sign any leases, contracts or other agreements in KSM’s name.
However, if for any reason KSM shall have advanced funds in payment of any reasonable
expense within the scope of its authority under this Agreement in connection with the
maintenance and operation of the Course or the Property, the City shall reimburse KSM within
ten (10) days after invoice for the full amount of such payments. The City’s failure to reimburse
KSM as provided herein for any such payment shall be an Event of Default by the City.
ARTICLE 4
RESPONSIBILITIES OF THE CITY
4.1 Expenditures. In addition to its responsibilities as set forth in Section 3.5.1.1 of
this Agreement, the City acknowledges that it is solely responsible for all Operating Expenses
and capital expenditures required for or on behalf of the Course provided that such Operating
Expenses and capital improvements are made in accordance with the terms of this Agreement.
The City shall be responsible for all other expenditures and obligations in connection with the
24
KSM Management Agreement Deerpath 11/20/11 9
Course and the Property, including without limitation, all federal, state, and local taxes and all
principal and interest payments on indebtedness.
ARTICLE 5
FEES, EXPENSES AND RECEIPTS.
5.1 Management Fee. The City shall pay KSM management fees as follows (the
“Management Fee”):
A. Fixed Management Fee. During the Term, The City shall pay KSM an annual fee
(the “Fixed Management Fee”), which is comprised of the following: (1) Twenty-Five
Thousand Dollars ($25,000.00) as a base fee (the "Base Fee") to KSM; and (2) an amount
not to exceed ninety thousand dollars ($90,000.00) as reimbursement for salaries, wages,
employee benefits, payroll taxes, and health, disability and workers’ compensation
insurance associated with the Operations Manager ("Key Employee Compensation”), all
of which shall be for the operation and management of the Course. The Base Fee and
Key Employee Compensation shall be paid by the City with an itemized statement on a
monthly basis, in equal monthly installments in advance, no later than the first day of
each calendar month. The Fixed Management Fee for the initial Term of this Agreement
shall be $115,000.00. To the extent that the City utilizes KSM's services for financial
reporting and accounting services in addition to those set forth in Section 3.5.1 of this
Agreement, the Base Fee and Key Employee Compensation shall be adjusted as mutually
agreed by the Parties. The Parties acknowledge that the Key Employee Compensation is
subject to change in during any extension of the Term of this Agreement. As part of the
annual Operational Budget procedure, the City and KSM shall agree to any changes to
Key Employee Compensation.
The Base Fee shall be increased each year that the Term is extended by three percent
(3%).
Payment of the Fixed Management Fee shall in all instances be set forth in the Operating
Budget.
B. Incentive Management Fee. In addition to the Fixed Management Fee described
above, The City shall pay KSM an annual incentive management fee (the “Incentive
Management Fee”) calculated as follows (based on the revenue categories outlined in
Exhibit B): The product of (x) 0.100 and (y) the annual (calendar year) Gross Revenues (as defined herein and outlined at Exhibit B) in excess of $________ (base Gross Revenues). For example, if 2012 actual Gross Revenues are $1,100,000 and the base Gross Revenues are $1,000,000 (for illustration), KSM shall earn $10,000.00 as its Incentive Fee ($1,100,000 - $1,000,000 x 0.100 = $10,000).
5.2 Out-of-Pocket Expenses. In addition to all other fees and expenses recited herein
payable to KSM, and subject to the City’s approval of same in the Budgets, it is agreed that the
25
KSM Management Agreement Deerpath 11/20/11 10
City shall reimburse KSM within fifteen (15) days of invoice for all actual out-of-pocket
expenses incurred by KSM in the performance of this Agreement. Out-of-pocket expenses shall
include, but shall not be limited to, reasonable travel, air express, costs of recruitment (including
applicable agent’s fees), and other incidental expenses. Reimbursement for such out-of-pocket
expenses will be made at actual cost.
5.3 Late Fees. The City shall pay to KSM all of the fees described above, and any
other sums due KSM, at the times, at the places, and in the manner herein provided. If any
payment or any part thereof to be made by the City to KSM pursuant to the terms hereof shall
become overdue for a period of ten (10) days, a “late charge” may be charged by KSM for the
purpose of defraying the expense incident to handling such delinquency. The late charge shall be
equal to the lesser of (i) one percent (1%) per month, or (ii) the highest amount allowed to be
charged by applicable law. In the event any portion of this Section violates any state or federal
law or regulation, this Section shall be deemed void and shall have no other effect or make
invalid any other provision of this Agreement. Further, nothing herein shall be construed as
waiving any rights of KSM arising out of any Events of Default of the City by reason of KSM
assessing or accepting any such late payment or late charge; the right to collect the late charge is
separate and apart from any rights relating to remedies of KSM after default by the City in the
performance or observance of the terms of this Agreement. The City shall bear the costs of any
legal or collection fees and expenses incurred by KSM in attempting to enforce the City’s
payment obligations hereunder. The City understands and agrees that KSM reserves the right to
suspend further services until such time as payment is received on past due invoices. In the
event that KSM suspends its services as permitted in this paragraph, the City understands and
agrees that KSM shall not be responsible or liable for any resulting loss, damage, or expense due
to such suspension. Notwithstanding anything in this Agreement to the contrary, to the extent
that the City disputes any charges or expenses claimed by KSM in writing within the time for
payment thereof, the non-payment of any disputed charge or expense shall not be deemed an
Event of Default except in accordance with Section 11.1 of this Agreement.
5.4 Payment Prior to Insolvency Proceeding. Prior to the initiation of an Insolvency
Proceeding (as defined below) by the City, if applicable, the City shall pay all amounts then
outstanding and owing to KSM in immediately available funds by wire transfer.
ARTICLE 6
COVENANTS AND REPRESENTATIONS
6.1 The City’s Covenants and Representations. The City makes the following
covenants and representations to KSM, which covenants and representations shall, unless
otherwise stated herein, survive the execution and delivery of this Agreement:
6.1.1 Corporate Status. The City is an Illinois municipal corporation, duly organized,
validly existing, and in good standing under the laws of Illinois, and authorized to
transact business in Illinois, with full corporate power and authority to enter into
this Agreement.
26
KSM Management Agreement Deerpath 11/20/11 11
6.1.2 Authorization. The making, execution, delivery, and performance of this
Agreement by the City has been duly authorized and approved by all requisite
action, and this Agreement has been duly executed and delivered by the City and
constitutes a valid and binding obligation of the City, enforceable in accordance
with its terms.
6.1.3 Effect of Agreement. Neither the execution and delivery of this Agreement by the
City nor the City’s performance of any obligation hereunder (a) shall constitute a
violation of any law, ruling, regulation, or order to which the City is subject, or
(b) shall constitute a default of any term or provision or shall cause an
acceleration of the performance required under any other agreement or document
(i) to which the City is a party or is otherwise bound, or (ii) to which the Course,
the Property or any part thereof is subject.
6.1.4 Ownership Rights. The City shall obtain and retain the property interests in the
Course and the Property necessary to enable KSM to perform its duties pursuant
to this Agreement peaceably and quietly. The City represents and warrants that
KSM’s performance of the services required by this Agreement shall not violate
the property rights or interests of any other Person.
6.1.5 Documentation. If necessary to carry out the intent of this Agreement, the City
agrees to execute and provide to KSM, on or after the Commencement Date, any
and all other instruments, documents, conveyances, assignments, and agreements
which KSM may reasonably request in connection with the operation of the
Course.
6.2 KSM’s Covenants and Representations. KSM makes the following covenants and
representations to the City, which covenants and representations shall, unless otherwise stated
herein, survive the execution and delivery of this Agreement:
6.2.1 Corporate Status. KSM is a corporation duly organized, validly existing, and in
good standing under the laws of Illinois, and authorized to transact business in
Illinois, with full corporate power to enter into this Agreement and execute all
documents required hereunder.
6.2.2 Authorization. The making, execution, delivery, and performance of this
Agreement by KSM has been duly authorized and approved by all requisite action
of the board of directors of KSM, and this Agreement has been duly executed and
delivered by KSM and constitutes a valid and binding obligation of KSM,
enforceable in accordance with its terms.
6.2.3 Effect of Agreement. Neither the execution and delivery of this Agreement by
KSM nor KSM’s performance of any obligation hereunder (i) will constitute a
violation of any law, ruling, regulation, or order to which KSM is subject, or (ii)
shall constitute a default of any term or provision or shall cause an acceleration of
the performance required under any other agreement or document to which KSM
is a party or is otherwise bound.
27
KSM Management Agreement Deerpath 11/20/11 12
ARTICLE 7
INSURANCE
7.1 Course Insurance. During the Term, the City shall secure, at its own cost, such
insurance coverages as it determines in its reasonable discretion regarding the activities on the
Course. Further, the City agrees to secure and maintain:
A. Commercial General Liability and/or Umbrella/Excess Liability Insurance (collectively,
"CGL") providing coverage for bodily injury and property damage arising in connection
with the operation of the Course or on 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 - $5,000,000Products
Liability/Completed Operations Aggregate - $5,000,000
B. Commercial Business Automobile Liability Insurance ("Auto Insurance") including
coverage for all owned, 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 for CGL and Auto Insurance 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.
C. Business Interruption, Loss of Income and Extra Expense Insurance that will reimburse
the City and KSM 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.
D. Workers’ Compensation Insurance in such amounts that comply with applicable statutory
requirements.
E. 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.
7.2 KSM Insurance Requirements. KSM shall secure and maintain at its sole expense
insurance coverages equivalent to those set forth in Section 7.1(A, B, D, and E) with respect to
its Management Services and the employment of Operations Manager and any other personnel
that KSM employs in the performance of the Management Services. In addition, KSM shall
secure and maintain property insurance in an amount sufficient to cover the value of KSM
property kept or maintained on the Property during the Term of this Agreement. All such
28
KSM Management Agreement Deerpath 11/20/11 13
insurance shall be obtained from companies rated at least A- by Best’s Key Rating Guide, and
licensed to do business in Illinois.
7.3 Waiver of Subrogation; Proof of Insurance. Notwithstanding anything else
contained in this Agreement, the City and KSM each hereby waive all rights of recovery against
the other and their Affiliates, and against each of their officers, employees, agents and
representatives, on account of loss by or damage to the waiving party’s property or the property
of others under its control The Parties shall, upon obtaining any policies of insurance required
under this Agreement, give notice to its insurance carrier or carriers that the foregoing mutual
waiver of subrogation is contained in this Agreement. This waiver of subrogation shall survive
the expiration or termination of this Agreement. Each Party shall deliver to the other certificates
and/or policies of insurance to prove that the obligations of this Agreement are satisfied within
10 days upon a request of the other Party.
ARTICLE 8
DAMAGE AND CONDEMNATION
8.1 Substantial Destruction. In the event the Real Property, Tangible Personal
Property, and/or Improvements are damaged or destroyed by fire or other casualty to the extent
that the damage is not reasonably anticipated to be materially restored with due diligence within
two hundred seventy (270) days following such event, either party hereto may terminate this
Agreement upon written notice to the other party given within ninety (90) days following the
date of such destruction. In the event of termination of this Agreement pursuant to this Section,
the Term shall cease and come to an end as of the effective date of termination specified in the
termination notice (which shall in no event be prior to the date of receipt of the termination
notice) as though such date were the date originally fixed for the expiration of the Term. Both
parties shall pay all amounts due to the other party up to such effective date of termination (or,
with respect to amounts due to KSM, after such date if it is reasonably necessary to incur
additional expenses in the wind-down of operations of the Course, which wind-down period shall
in no event be more than 30 days).
8.2 Partial Destruction. In the event the Real Property, Tangible Personal Property,
and/or Improvements, or any portion thereof, is damaged or destroyed by fire or other casualty
and such damage can be materially restored with due diligence within two hundred seventy (270)
days following such event, the City shall have the obligation to repair the damaged Real
Property, Tangible Personal Property, and/or Improvements as nearly as practicable to the
condition the same were in prior to such damage. The City shall cause such repair to be made
with all reasonable dispatch so as to complete the same at the earliest possible date.
8.3 Substantial Condemnation. In the event (i) all or substantially all of the Real
Property is taken in any eminent domain, condemnation, compulsory acquisition, or similar
proceeding by any competent authority for any public or quasi-public use or purpose, or (ii) a
substantial portion of the Real Property is so taken, but the result is that it is unreasonable to
continue to operate the Property for the purposes contemplated by this Agreement, then either
party hereto may terminate this Agreement upon written notice to the other party given no later
than ninety (90) days following the conclusion of the condemnation proceedings. In the event of
29
KSM Management Agreement Deerpath 11/20/11 14
termination of this Agreement pursuant to this Section, the Term shall cease and come to an end
as of the effective date of termination specified in the termination notice (which shall in no event
be prior to the date of receipt of the termination notice) as though such date were the date
originally fixed for the expiration of the Term. Both parties shall pay all amounts due to the
other party up to the date of termination.
8.4 Partial Condemnation. In the event a portion of the Real Property shall be taken
by any of the events described in Section 8.3 above, or is affected but on a temporary basis, and
the result is not to make it unreasonable to continue to operate the Property for the purposes
contemplated by this Agreement, this Agreement shall not terminate. It is further agreed that any
portion of any award, damages or other compensation paid to the City on account of such partial
taking, condemnation, or sale as is necessary to render the Property equivalent to its condition
prior to such event shall be used for such purpose. The balance of such award, if any, shall be
fairly and equitably apportioned between the parties in accordance with their respective interests.
ARTICLE 9
INDEMNIFICATION
9.1 The City’s Indemnification Obligations. Except as provided in Section 7.3, The
City shall defend, indemnify and hold KSM and its Affiliates and each of their 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
performance of the Management Services on behalf of The City, and (ii) the ownership, leasing,
organization, development or construction of the Course or the Property; and (iii) Hazardous
Materials or other conditions existing at the Course or the Property (except as otherwise provided
in Section 3.6 of this Agreement); and (iv) the authorized use by KSM of Course trade names,
trademarks, logos or other intellectual property used in connection with the Course; and (v) any
acts or omissions of the City (or its officers, directors, agents, employees, representatives,
contractors and others for whom The City is responsible); and (vi) any activities in connection
with the transition of the management of the Course to KSM; and (vii) any acts or omissions
occurring in connection with the operation or management of the Course prior to the Term and
(viii) the relationship between the City or any of the City’s Affiliates and the prior management
company of the Course or any acts or omissions of the prior management company; to the fullest
extent permitted by law, except to the extent such liabilities were caused by KSM’s willful or
criminal misconduct, gross negligence, or fraud. For sake of clarity and without limiting the
foregoing, the City shall defend, indemnify and hold the KSM Related Parties harmless of and
from all liability, loss, damage, cost or expense (including, without limitation, reasonable
attorneys’ fees and expense) arising from or relating to any employees of the City or employees
who provide services as part of the Course operation, regardless of whether such claim arises
under statute or common law, tort, contract or otherwise, including but not limited to any claim
that the City and KSM are or might be “joint employers” of the Course employees. The City’s
duty to defend and indemnify KSM and the KSM Related Parties shall extend to all liability,
loss, damage, cost, or expenses hereunder arising from or relating to any event or occurrence
taking place prior to, during, or after the Term.
30
KSM Management Agreement Deerpath 11/20/11 15
9.2 KSM’s Indemnification Obligations. Except as provided in Section 7.3, KSM
shall defend, indemnify and hold the City and the City’s shareholders, officers, directors,
employees, agents, and representatives (the “City 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 the negligent acts or omissions of KSM (or its officers,
directors, agents, employees, representatives, contractors and others for whom KSM is
responsible), to the fullest extent permitted by law, except to the extent such acts or omissions
were specifically directed or approved by the City, or such liabilities were caused by the City’s
willful or criminal misconduct, gross negligence or fraud. KSM’s duty to defend and indemnify
the City and the City Related Parties shall extend to all liability, loss, damage, cost, or expenses
hereunder arising from or relating to any event or occurrence taking place prior to, during, or
after the Term. Notwithstanding anything else contained herein, the City acknowledges that
KSM shall not be responsible for any damage to property under its care custody and control and
that the City shall ensure that all such damage is covered by appropriate insurance coverage.
9.3 Survival. The defense and indemnification obligations contained in this Article 9
shall survive the expiration or termination of this Agreement for any reason.
ARTICLE 10
RIGHT TO CURE
10.1 Performance. Other than with respect to The City’s obligations pursuant to
Section 5.5 to 5.7 hereof, if, after the expiration of any permitted grace period or notice and cure
period, a party hereto shall have failed to cure any default in the performance of any
representation, covenant, or obligation on its part to be performed, then the other party may, at
any time thereafter, without further notice, perform the same for the account and at the expense
of the other party. Notwithstanding the above, in the case of an emergency, either party may,
after notice to the other party, so reasonably perform in the other party’s stead prior to the
expiration of any applicable grace period; provided, however, the other party shall not be deemed
in default under this Agreement.
10.2 Reimbursement. If, pursuant to this Article, either party at any time is compelled
or elects (as permitted by the immediately preceding Section) (i) to pay any sum of money, (ii) to
do any act which will require the payment of any sum of money, or (iii) to incur any expense
(including reasonable attorneys’ fees) in instituting, prosecuting, and/or defending any action or
proceeding instituted by reason of the other party’s failure to perform, as described in the
immediately preceding Section, the sum or sums paid or payable by such party, with all interest,
cost, and damages, shall be immediately due from the other upon receipt of a statement and
reasonable documentation therefor. Notwithstanding anything in this Agreement to the contrary,
to the extent that a party disputes any charges or expenses claimed pursuant to this Section 10.2
in writing within 15 days after the receipt of documentation for such reimbursement, the non-
payment of any disputed charge or expense shall not be deemed an Event of Default except in
accordance with Section 11.1 of this Agreement.
31
KSM Management Agreement Deerpath 11/20/11 16
ARTICLE 11
EVENTS OF DEFAULT
The occurrence of any one or more of the following events which is not cured within the
specified cure period, if any, shall constitute a default under this Agreement (hereinafter referred
to as an “Event of Default”):
11.1 Failure to Pay Sums Due. Either party’s failure to pay any sums payable under
this Agreement when and as the same shall become due and payable and such failure shall
continue for a period of five (5) days after written notice (specifying the item not paid) thereof
from the other party to the defaulting party. Notwithstanding the foregoing sentence, with
respect to any amount claimed by one party that is disputed in writing (the "Notice of Dispute")
by the other party within the time prescribed for payment, the Parties shall meet within 30 days
after the Notice of Dispute to confer regarding the disputed amount; if no resolution is reached
within 75 days after the Notice of Dispute, then either party may claim an Event of Default.
11.2 Failure to Comply. Either party’s material failure to comply with any of the
covenants, agreements, terms, or conditions contained in this Agreement and such failure shall
continue for a period of thirty (30) days after written notice thereof from the other party to the
defaulting party specifying in detail the nature of such failure. Notwithstanding the foregoing, in
the event any such failure cannot with due diligence be cured within such 30-day period, if the
defaulting party proceeds promptly and diligently to cure the same and thereafter diligently
prosecutes the curing of such failure, the time within which the failure may be cured shall be
extended for such period as may be necessary for the defaulting party to cure the failure.
11.3 Bankruptcy. If either party (i) applies for or consents to the appointment of a
receiver, trustee, or liquidator of itself or any of its property, (ii) is unable to pay its debts as they
mature or admits in writing its inability to pay its debts as they mature, (iii) makes a general
assignment for the benefit of creditors, (iv) is adjudicated as bankrupt or insolvent, or (v) files a
voluntary petition in bankruptcy or a petition or an answer seeking reorganization or an
arrangement with creditors, or taking advantage of any bankruptcy, reorganization, insolvency,
readjustment of debt, dissolution or liquidation law or statute, or admits the material allegations
of a petition filed against it in any proceedings under any such law, or if any action shall be taken
by said party for the purpose of effecting any of the foregoing (collectively, an “Insolvency
Proceeding”).
11.4 Reorganization; Receiver. An order, judgment, or decree is entered without the
application, approval, or consent of either party by any court of competent jurisdiction approving
a petition seeking reorganization of said party or appointing a receiver, trustee, or liquidator of
said party, or of all or a substantial part of any of the assets of said party, and such order,
judgment, or decree remains unstayed and in effect for a period of ninety (90) days from the date
of entry thereof.
32
KSM Management Agreement Deerpath 11/20/11 17
ARTICLE 12
REMEDIES
12.1 The City’s Remedies. Upon the occurrence of an Event of Default by KSM, The
City may:
12.1.1 Seek specific performance of KSM’s obligations, declaratory relief, or injunctive
relief, as applicable;
12.1.2 Demand and receive payment of all amounts due the City under the terms of this
Agreement and the payment of all costs, damages, expenses, and reasonable
attorneys’ fees of the City arising due to KSM’s Event of Default;
12.1.3 Proceed to remedy the Event of Default, and in connection with such remedy, the
City may pay all expenses and employ counsel. All sums so expended or
obligations incurred by the City in connection therewith shall be paid by KSM to
the City, upon demand by the City, and on failure of such reimbursement, the City
may, at the City’s option, deduct all costs and expenses incurred in connection
with remedying the Event of Default from the next sums becoming due to KSM
from the City under the terms of this Agreement; and
12.1.4 Terminate this Agreement by written notice of termination to KSM. Upon proper
termination of this Agreement, KSM shall surrender occupancy of the Space to
the City.
No remedy granted to the City is intended to be exclusive of any other remedy herein or by law
provided, but each shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law, in equity, or by statute. No delay or omission by
the City to exercise any right accruing upon an Event of Default shall impair the City’s exercise
of any right or shall be construed to be a waiver of any Event of Default or acquiescence thereto.
IN NO EVENT SHALL KSM BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL,
CONSEQUENTIAL OR PUNITIVE DAMAGES ARISING OUT OF THIS AGREEMENT OR
PERFORMANCE OR NON-PERFORMANCE HEREUNDER (INCLUDING BUT NOT
LIMITED TO LOST PROFITS, LOST BUSINESS AND LOSS OF GOODWILL) EVEN IF
ADVISED OR AWARE OF THE POSSIBILITY OF SUCH DAMAGES.
12.2 KSM’s Remedies. Upon the occurrence of an Event of Default by the City, KSM
may:
12.2.1 Seek specific performance of the City’s obligations, declaratory relief, or
injunctive relief, as applicable;
12.2.2 Demand and receive payment of all amounts due KSM under the terms of this
Agreement and the payment of all costs, damages, expenses, and reasonable
attorneys’ fees of KSM due to the City’s Event of Default;
33
KSM Management Agreement Deerpath 11/20/11 18
12.2.3 Proceed to remedy the Event of Default, and in connection with such remedy,
KSM may pay all expenses and employ counsel. All sums so expended or
obligations incurred by KSM in connection therewith shall be paid by the City to
KSM, upon demand by KSM, and on failure of such reimbursement, KSM may,
at KSM’s option, deduct all costs and expenses incurred in connection with
remedying the Event of Default from the next sums becoming due to the City
from KSM under the terms of this Agreement; and
12.2.4 Terminate this Agreement by KSM’s written notice of termination to the City. In
such event, the City shall pay to KSM within ten (10) days of termination an
amount equal to the total unpaid Management Fees that KSM would have earned
had the Agreement remained in effect until the Termination Date.
No remedy granted to KSM is intended to be exclusive of any other remedy herein or by law
provided, but each shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law, in equity, or by statute. No delay or omission by
KSM to exercise any right accruing upon an Event of Default shall impair KSM’s exercise of
any right or shall be construed to be a waiver of any Event of Default or acquiescence thereto.
IN NO EVENT SHALL THE CITY BE LIABLE FOR ANY INDIRECT, SPECIAL,
INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES ARISING OUT OF THIS
AGREEMENT OR PERFORMANCE OR NON-PERFORMANCE HEREUNDER
(INCLUDING BUT NOT LIMITED TO LOST PROFITS, LOST BUSINESS AND LOSS OF
GOODWILL) EVEN IF ADVISED OR AWARE OF THE POSSIBILITY OF SUCH
DAMAGES.
12.3 Litigation. In the event of any litigation under or respecting this Agreement, the
prevailing party shall be entitled to reasonable attorneys’ fees and court costs through all pretrial,
trial, appellate, administrative, and post-judgment proceedings.
ARTICLE 13
TERMINATION
13.1 Events of Termination. This Agreement shall terminate upon the occurrence of
any of the events set forth below:
13.1.1 An Event of Default by KSM, and the City sends to KSM a notice of
termination for cause (after the expiration of any applicable cure period);
13.1.2 An Event of Default by the City, and KSM sends to the City a notice of
termination for cause (after the expiration of any applicable cure period);
13.1.3 Both parties agree in writing to terminate this Agreement; or
13.1.4 Upon the expiration or termination of this Agreement according to its
terms.
34
KSM Management Agreement Deerpath 11/20/11 19
13.2 Payments Upon Termination. Upon expiration or termination of this Agreement,
all sums owed by either party to the other shall be paid within ten (10) days of the effective date
of such termination.
ARTICLE 14
NOTICES
14.1 Notices. Any notices or other communications required or permitted hereunder
shall be sufficiently given if in writing and (i) delivered personally, (ii) sent by certified mail,
return receipt requested, postage prepaid (“Mail”), or sent by nationally-recognized overnight
mail or courier service (“Overnight Courier”), addressed as shown below, or to such other
address as the party concerned may substitute by written notice to the other. Any notice will be
deemed received (A) upon the date personal delivery is made, (B) three (3) business days after
the date it is deposited in the Mail, (C) one (1) business day after it is deposited with an
Overnight Courier, or (D) the date upon which attempted delivery of such notice, whether by
Mail, Overnight Courier or personal delivery, is refused or rejected.
If to The City: The City of Lake Forest
Attn: Robert R. Kiely, Jr., City Manager
220 E. Deerpath
Lake Forest IL 60045
With a copy to:
Mary Van Arsdale
Director of Parks and Recreation
The City of Lake Forest
800 N. Field Drive
Lake Forest IL 60045
If to KSM: Kemper Sports Management, Inc.
500 Skokie Boulevard, Suite 444
Northbrook, Illinois 60062
Attention: Steven K. Skinner, Chief Executive
Officer
with a copy to: Kemper Sports Management, Inc.
500 Skokie Boulevard, Suite 444
Northbrook, Illinois 60062
Attention: Corporate Counsel
The addresses and addressees may be changed by giving notice of such change in the
manner provided herein for giving notice. Unless and until such written notice is received, the
last address and addressee given shall be deemed to continue in effect for all purposes.
35
KSM Management Agreement Deerpath 11/20/11 20
ARTICLE 15
MISCELLANEOUS
15.1 Exhibits. All Exhibits attached hereto are incorporated herein by this reference as
if fully set forth herein. If any Exhibits are subsequently changed by the mutual written
agreement of the parties, the Exhibits shall be modified to reflect such change or changes and
dated and initialed by the parties.
15.2 Entire Agreement. This Agreement and the Exhibits hereto embody the entire
agreement and understanding of the parties relating to the subject matter hereof and supersede all
prior representations, agreements, and understandings, oral or written, relating to such subject
matter.
15.3 Amendment and Waiver. This Agreement may not be amended or modified in
any way except by an instrument in writing executed by all parties hereto; provided, however,
either party may, in writing, (i) extend the time for performance of any of the obligations of the
other, (ii) waive any inaccuracies and representations by the other contained in this Agreement,
(iii) waive compliance by the other with any of the covenants contained in this Agreement, and
(iv) waive the satisfaction of any condition that is precedent to the performance by the party so
waiving of any of its obligations under this Agreement.
15.4 Proprietary Information. The trade names, trademarks and logos of the City
(collectively, the “City Marks”) shall be used by KSM only in connection with the performance
of the services provided under this Agreement and as otherwise provided in this Agreement or as
agreed upon by the City; provided, however, that the City agrees that KSM may use the City
Marks in its marketing and promotional materials as a course managed by KSM. All specifically
identifiable information developed by KSM for the City at the expense of the City shall be the
property of both KSM and the City and such information may continue to be used by the City at
the Course beyond any expiration or termination of this Agreement without further cost or
expense to the City; provided, however, that the City may not use or grant others the right to use
such information at any other location nor disclose or grant any rights to such information to any
third party. All of KSM’s proprietary information, including (i) trade names, trademarks and
logos as well as programs that have been or may be developed by KSM other than in connection
with this Agreement, and (ii) software and technology, shall remain the exclusive property of
KSM and neither the City nor any of its affiliates or successors may use or disclose such
proprietary information without the advance written consent of KSM. The obligations and
restrictions contained in this Section shall survive the expiration or termination of this
Agreement for any reason.
15.5 No Partnership or Joint Venture. Nothing contained herein shall be deemed or
construed by the parties hereto or by any third party as creating the relationship of (i) a
partnership, or (ii) a joint venture between the parties hereto; it being understood and agreed that
neither any provisions contained herein nor any acts of the parties hereto shall be deemed to
create any relationship between the parties hereto other than the relationship of independent
contractor.
36
KSM Management Agreement Deerpath 11/20/11 21
15.6 Restrictions as to Employees. During the Term and for a period of two (2) years
after the end of the Term, it is agreed that the City and/or its agents and contractors shall not,
directly or indirectly, seek to contact, entice, or discuss employment with any Key Employee of
KSM nor shall the City, its agents and/or contractors employ or seek to employ, directly or
indirectly, any such Key Employee, without first obtaining the written consent of KSM. For
purposes hereof, a “Key Employee” of KSM shall mean any individual holding any of the
following positions at any time during the Term: the Operations Manager of the Course, or any
employee of KSM’s corporate office.
15.7 Assignment; Successors and Assigns.
15.7.1 This Agreement may not be assigned by either party hereto without the express
written consent of the other party, except that KSM may assign this Agreement to
any of its Affiliates.
15.7.2 This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors, legal representatives, and permitted
assigns.
15.8 Severability. Except as expressly provided to the contrary herein, each section,
part, term, or provision of this Agreement shall be considered severable, and if for any reason
any section, part, term, or provision herein is determined to be invalid and contrary to or in
conflict with any existing or future law or regulation by a court or governmental agency having
valid jurisdiction, such determination shall not impair the operation of or have any other affect
on other sections, parts, terms, or provisions of this Agreement as may remain otherwise
intelligible, and the latter shall continue to be given full force and effect and bind the parties
hereto, and said invalid sections, parts, terms, or provisions shall not be deemed to be a part of
this Agreement.
15.9 Survival. All covenants, agreements, representations, and warranties made herein
shall survive the execution and delivery of (i) this Agreement, and (ii) all other documents and
instruments to be executed and delivered in accordance herewith, and shall continue in full force
and effect.
15.10 Accord and Satisfaction; Allocation of Payments. No payment by the City or
receipt by KSM of a lesser amount than that which is owed to KSM shall be deemed to be other
than on account of such amounts owed to KSM, nor shall any endorsement or statement on any
check or letter accompanying any check or payment to KSM be deemed an accord and
satisfaction, and KSM may accept such check or payment without prejudice to KSM’s right to
recover the balance of the amounts owed to KSM or pursue any other remedy provided for in
this Agreement or as otherwise provided at law or in equity. In connection with the foregoing,
and subject to the other terms of this Agreement, KSM shall have the absolute right in its sole
discretion to apply any payment received from the City, regardless of the City's designation of
such payments, to any outstanding amount of the City then not current and due or delinquent, in
such order and amounts as KSM, in its sole discretion, may elect.
37
KSM Management Agreement Deerpath 11/20/11 22
15.11 Construction and Interpretation of Agreement. This Agreement shall be governed
by and construed under the laws of the State of Illinois. Should any provision of this Agreement
require judicial interpretation, it is agreed that the court interpreting or considering same shall
not apply the presumption that the terms hereof shall be more strictly construed against a party
by reason of the rule or conclusion that a document should be construed more strictly against the
party who itself or through its agent prepared the same. It is agreed and stipulated that all parties
hereto have equally participated in the preparation of this Agreement and that legal counsel was
consulted by each party before the execution of this Agreement.
15.12 Captions. Captions, titles to sections, and paragraph headings used herein are for
convenience of reference and shall not be deemed to limit or alter any provision hereof.
15.13 Governing Document. This Agreement shall govern in the event of any
inconsistency between this Agreement and any of the Exhibits attached hereto or any other
document or instrument executed or delivered pursuant hereto or in connection herewith.
15.14 Outside Businesses. Nothing contained in this Agreement shall be construed to
restrict or prevent, in any manner, any party or any party’s affiliates, parent corporations, or
representatives or principals from engaging in any other businesses or investments, nor shall the
City or KSM have any right to share or participate in any such other businesses or investments of
the other party.
15.15 Counterparts; Facsimile Signatures. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which together shall be
deemed one and the same Agreement. Facsimile signature or scanned and e-mailed signature
shall be as effective as an original signature.
15.16 Unavoidable Delays. The provisions of this Section shall be applicable if there
shall occur during the Term any (i) strikes, lockouts, or labor disputes, (ii) inability to obtain
labor or materials, or reasonable substitutes therefor, (iii) acts of God, governmental restrictions,
regulations or controls, enemy or hostile governmental action, civil commotion, fire, or other
casualty, or (iv) other conditions beyond the reasonable control of the party obligated to perform.
If either party shall, as the result of any of the above-described events, fail punctually to perform
any obligation on its part to be performed under this Agreement, then such failure shall be
excused and not be a breach of this Agreement by the party claiming an unavoidable delay (an
“Unavoidable Delay”), but only to the extent the delay is occasioned by such event. If any right
or option of either party to take any action under or with respect to the Term is conditioned upon
the same being exercised within any prescribed period of time or at or before a named date, then
such prescribed period of time or such named date shall be deemed to be extended or delayed, as
the case may be, upon written notice, as provided above, for a time equal to the period of the
Unavoidable Delay. Notwithstanding anything contained herein to the contrary, the provisions
of this Section shall not be applicable to either party’s obligation to pay any sums, monies, costs,
charges, or expenses required to be paid pursuant to the terms of this Agreement, unless the
Unavoidable Delay directly impairs such Party's access to funds.
15.17 No Third-Party Beneficiaries. Nothing herein contained shall be deemed to
establish any rights of third parties against the parties hereto; it being the intent that the rights
38
KSM Management Agreement Deerpath 11/20/11 23
and obligations set forth herein are those of the parties hereto alone, with no third party
beneficiary rights intended.
15.18 Certain Services Excluded. Notwithstanding anything else contained in this
Agreement to the contrary, KSM’s services are limited to those specifically noted in the
Agreement and do not include, amongst others and without limitation, architectural, engineering,
design or general contracting services, facility planning services, accounting or tax-related
assistance or advice, legal advice or services, expert witness services, cost report preparation,
data processing or information services, or feasibility studies. KSM’s Services will not
constitute an audit, review or compilation or any other type of financial statement reporting, or
consulting engagement subject to the rules of the AICPA or other similar bodies. KSM will not
be expressing any professional opinions on and makes no representations or warranties in
conjunction with this engagement.
15.19 Bankruptcy Obligations. KSM shall have no obligation to provide any services
under the Agreement in the event that the City becomes a debtor under the Bankruptcy Code,
and, in accordance with Section 12 hereof, may terminate the Agreement in such event. In the
event that the City is or becomes a debtor under Chapter 11 of the Bankruptcy Code and KSM
agrees to provide services to the City post-petition, the parties shall enter into a revised written
agreement or an amendment to this Agreement to govern their respective rights and obligations
as part of the City’s bankruptcy case. Notwithstanding the foregoing, the City expressly agrees
that KSM shall be compensated by the City for all commercially reasonable efforts to comply
with all requirements or requests for information placed upon KSM in an Insolvency Proceeding
by the City, any receiver, trustee or liquidator for the City or any property of the City, any
assignee for the benefit of creditors, or any trustee in any case under chapter 7 of the Bankruptcy
Code, at a hourly rate set by KSM in its reasonable discretion, in addition to the out-of-pocket
expenses incurred by KSM in connection with the Insolvency Proceeding (the “Insolvency
Administration Fees”), subject to any applicable Laws.
[SIGNATURES ON FOLLOWING PAGE]
39
KSM Management Agreement Deerpath 11/20/11
IN WITNESS WHEREOF, the parties have executed this Agreement on the date first
written above.
KEMPER SPORTS MANAGEMENT, INC.
By:
Steven K. Skinner
Chief Executive Officer
CITY OF LAKE FOREST, IL
By:
Name:
Title:
40
KSM Management Agreement Deerpath 11/11 A-1
EXHIBIT A
DEFINITIONS
All capitalized terms referenced or used in the Management Agreement (the
“Agreement”) and not specifically defined therein shall have the meaning set forth below in this
Exhibit A, which is attached to and made a part of the Agreement for all purposes.
• Affiliate(s). The term “Affiliate(s)” shall mean a Person that directly or indirectly, or
through one or more intermediaries, controls, is controlled by, or is under common control
with the Person in question and any officer, director, or trustee, and any stockholder or
partner of any Person referred to in the preceding clause owning fifty percent (50%) or more
of such Person. For purposes of this definition, the term “control” means the ownership of
fifty percent (50%) or more of the beneficial interest of the voting power of the appropriate
entity.
• Approval Rights. The term “Approval Rights” shall have the meaning described in Section
3.1 of the Agreement.
• Budgets. The term “Budgets” shall have the meaning described in Section 3.4 of the
Agreement.
• Capital Expenditures Budget. The term “Capital Expenditures Budget” shall have the
meaning described in Section 3.4.2 of the Agreement
• Course. The term “Course” shall mean the golf course to be operated as “Deerpath Golf
Course” located on and operated from the Real Property.
• Commencement Date. The term “Commencement Date” shall have the meaning described in
Section 2.2 of the Agreement.
• Environmental Laws. The term “Environmental Laws” shall mean all current and future
federal, state, and local statutes, regulations, ordinances, and rules relating to (i) the emission,
discharge, release, or threatened release of a Hazardous Material into the air, surface water,
groundwater, or land; (ii) the manufacturing, processing, use, generation, treatment, storage,
disposal, transportation, handling, removal, remediation, or investigation of a Hazardous
Material; or (iii) the protection of human health, safety, or the indoor or outdoor
environment, including, without limitation, the Clean Air Act, the Federal Water Pollution
Control Act, the Resource Conservation and Recovery Act, the Comprehensive
Environmental Response, Compensation and Liability Act, the Occupational Safety and
Health Act, all amendments thereto, all regulations promulgated thereunder, and their state or
local statutory and regulatory counterparts.
• Event of Default. The term “Event of Default” shall have the meaning described in
Article 11 of the Agreement.
41
KSM Management Agreement Deerpath 11/20/11
• Gross Revenues. The term “Gross Revenues” shall mean all receipts related to or derived
from the operation of the Course from cash or credit transactions recognized during the
Term, computed on an accrual basis, including, but not limited to, greens fees, cart rental
fees, guest fees, the amount of all sales (wholesale or retail) of goods, wares, or
merchandise on, at, or from the Property, or for services of any nature performed on, at,
or from the Property, determined in accordance with generally accepted accounting
principles applied on a consistent basis. Gross Revenues shall be reduced by any refunds,
rebates, discounts, and credits of a similar nature given, paid, or returned by KSM or the
City in the course of obtaining such Gross Revenues.
Gross Revenues shall not include:
o Applicable gross receipts taxes, admission, cabaret, excise, sales, and use
taxes, or similar governmental charges collected directly from customers or
their guests or as a part of the sales price of any goods or services;
o Service charges that are percentage gratuities added to billings, to the extent
paid to employees of the Course;
o Proceeds of borrowings by the City;
o Income derived from the investment of Gross Revenues;
o Revenues resulting from sales (wholesale or retail) of food and beverages;
o Revenues resulting from golf lesson services;
o Grants or donations from third parties;
o Proceeds paid as a result of an insurable loss, unless paid for the loss or
interruption of business, to the extent such sums are used to remedy said loss;
or
o Advances or transfers of funds from the City.
Any of the above provisions resulting in a double exclusion from Gross Revenues shall
be allowed as an exclusion only once.
• Hazardous Material. The term “Hazardous Material” shall mean any solid, liquid, or
gaseous substance, chemical, compound, product, byproduct, waste, or material that is or
becomes regulated, defined, or designated by any applicable federal, state, or local
governmental authority or by any Environmental Law as hazardous, extremely
hazardous, imminently hazardous, dangerous, or toxic, or as a pollutant or contaminant,
and shall include, without limitation, asbestos, polychlorinated biphenyls, and oil,
petroleum, petroleum products and petroleum byproducts.
42
KSM Management Agreement Deerpath 11/20/11
• Improvements. The term “Improvements” shall mean the improvements, structures, and
fixtures placed, constructed, or installed on the Real Property for the Course, and any
additions or subsequent modifications thereto.
• Intangible Personal Property. The term “Intangible Personal Property” shall mean all
intangible property or rights owned or held by the City in connection with the Course,
including, but not limited to, security deposits, prepaid rents, liquor and operating
licenses, and all trademarks related to the Course.
• Key Employee. The term “Key Employee” shall have the meaning described in Section
15.6 of the Agreement.
• KSM. The term “KSM” means Kemper Sports Management, Inc., an Illinois
corporation, and its successors, legal representatives, and permitted assigns.
• Laws. The term “Laws” shall have the meaning described in Section 3.10 of the
Agreement.
• Management Fee. The term “Management Fee” shall have the meaning described in
Section 5.1 of the Agreement.
• Management Services. The term “Management Services” shall mean the services
provided by KSM pursuant to Article 3 of the Agreement.
• Net Operating Income. The term “Net Operating Income” or “NOI” shall be computed
as the sum of Gross Revenues less cost of goods sold, payroll, other Operating Expenses
and the Fixed Management Fees. Such calculation shall not include payments associated
with maintenance equipment leases, capital expenditures, interest expense, taxes,
depreciation and amortization
• Operating Budget. The term “Operating Budget” shall have the meaning described in
Section 3.4.1 of the Agreement
• Operating Expenses. The term “Operating Expenses” shall mean all operating expenses
of the Course incurred or paid on behalf of the City during the Term, computed on an
accrual basis, including, but not limited to, the following items:
o Salaries, wages, employee benefits, and payroll expenses, including without
limitation, payroll service bureau fees, payroll taxes, Course profit sharing
programs, and any insurance for KSM employees as provided for in this
Agreement; provided, however, service charges, which are defined as
percentage gratuities added to billings and paid to employees, shall be
excluded from Operating Expenses (collectively, the “Gross Payroll”);
o Marketing, advertising, and promotional expenses;
43
KSM Management Agreement Deerpath 11/20/11
o Purchase and replacement, as necessary, of inventories of maintenance parts
and supplies, food stores and bar supplies;
o Purchase and replacement, as necessary, of silver, chinaware, glassware,
cooking utensils, and other similar items of equipment;
o Purchase and replacement, as necessary, of office supplies, computers,
printers, facsimile machines, photocopiers, postage, printing, routine office
expenses, and accounting services incurred in the on-site operation of the
Course;
o The costs of IT consultants and other consultants utilized for the Course;
o Reasonable travel expenses of on-site employees incurred exclusively in
connection with the business of the Course;
o Accrual of a reserve for insurance (including workers’ compensation) and
property taxes each month in an amount or at a rate that is sufficient to pay
such insurance premiums or property taxes when they become due and
payable;
o Insurance premiums and property taxes, to the extent not provided for in the
reserve established therefor and any deductible amounts required to be paid
pursuant to Course insurance coverage;
o Accounts receivable previously included within Gross Revenues, to the extent
they remain unpaid ninety (90) days after the first billing;
o Auditing, accounting costs, computer fees (including costs to license and
maintain accounting software), and legal fees incurred in respect of the
operation of the Course, including any reasonable financial management and
reasonable accounting fees paid to third party accounting firms, if included in
the Budgets;
o Costs incurred for utilities, including, but not limited to, all electric, gas, and
water costs, and any other private utility charges incurred in connection with
the operation of the Course;
o Ordinary maintenance and repairs, exclusive of any capital improvements or
capital replacements, which are hereby excluded;
o The amount to be retained for purposes of maintaining Working Capital at an
appropriate level;
o All out-of-pocket expenses incurred by KSM in providing the services under
the terms of the Agreement, including without limitation, reasonable travel for
KSM employees employed on-site at the Property and KSM’s other
employees while engaged in performing the obligations of KSM hereunder,
44
KSM Management Agreement Deerpath 11/20/11
air express, costs of recruitment (including applicable agent’s fee), and other
incidental expenses included in the Budget, to the extent payable by the City
under this Agreement;
o Expenses, including legal fees, damages or other costs, involved in defending
any lawsuits, charges or claims involving the Course;
o All expenses set forth in the approved Budgets; and
o All other customary and reasonable expenses incurred in the operation of the
Course and the Improvements.
Any of the above provisions resulting in a double inclusion as an Operating Expense shall be
allowed as an inclusion only once.
Operating Expenses shall not include (i) depreciation or amortization, (ii) principal or interest
payments on indebtedness, (iii) rental or lease payments for major items of furniture, fixtures, or
equipment which, in accordance with generally accepted accounting principles, are purchased
and capitalized as fixed assets, and (iv) federal, state and local income taxes of any nature or
kind incurred by the City or KSM.
• The City. The term “The City” means The City of Lake Forest, IL and its successors,
legal representatives, and permitted assigns.
• Person. The term “Person” shall mean any individual, partnership, corporation,
association, or other entity, and the heirs, executors, administrators, legal representatives,
successors, and assigns of such Person where the context so permits; and, unless the
context otherwise requires, the singular shall include the plural, the masculine shall
include the feminine and the neuter, and vice versa.
• Personal Property. The term “Personal Property” shall mean the Intangible Personal
Property and the Tangible Personal Property.
• Positive Net Cash Flow. The term “Positive Net Cash Flow” shall mean the amount, if
any, by which Gross Revenues exceed Operating Expenses for the particular period being
measured.
• Property. The term “Property” shall mean (i) the Improvements, (ii) the Personal
Property, and (iii) the Real Property.
• Real Property. The term “Real Property” shall mean that certain parcel of land upon
which the Course is located.
• Tangible Personal Property. The term “Tangible Personal Property” shall mean all
equipment, machinery, fixtures, furnishings, accessories, and other tangible personal
property placed or installed, or to be placed or installed, on or about the Real Property
and used as a part of or in connection with the operation of the Course.
45
KSM Management Agreement Deerpath 11/20/11
• Term. The term “Term” shall have the meaning described in Section 2.2 of the
Agreement.
• Termination Date. The term “Termination Date” shall have the meaning described in
Section 2.2 of the Agreement.
• Unavoidable Delay. The term “Unavoidable Delay” shall have the meaning described in
Section 15.16 of the Agreement.
• Working Capital. The term “Working Capital” shall mean an amount sufficient to pay
Operating Expenses for any given month.
46
KSM Management Agreement Deerpath 11/20/11
EXHIBIT B
DETAIL BASE FEE REVENUES*
Account Number Account Description
510-0000-347.10-01 Seasonal Fee – Resident
510-0000-347.10-02 Seasonal Fee – Nonres
510-0000-347.10-03 Daily Fee Resident
510-0000-347.10-04 Daily Fee Nonres
510-0000-347.10-05 Locker and Shower Fee
510-0000-347.10-07 Electric Car Rental
510-0000-347.10-08 Start Time
510-0000-347.10-09 Range Fees
510-0000-347.10-11 Club Rental
510-0000-347.10-12 Pullcart
510-0000-347.10-13 Coupon – Green Fees
510-0000-347.25-01 Golf Sale of Merchandise
510-0000-347.25-03 Handicap Service
510-0000-347.25-05 USGA Handicap Fees
* Term 1 Base Fees calculated from December 1, 2010 – November 30, 2011
47
Superintendent
Special Facilities
Jeff Wait
Golf Maintenance
Supervisor
Tom Wilson
Operations Manager
(Contracted)
Marketing
Instructional
Academy
Circle Systems
Pro Shop Staff
Private Lesson Pros
Deerpath Golf Course
(A facility of the Parks & Recreation Department)
Organizational Chart
October 3, 2011
City Manager
Bob Kiely
Golf Advisory Committee
Director
Parks & Recreation
Mary Van Arsdale
Maintenance
Mechanic
Gil Barajas
Seasonal Crew
Starters/Rangers
Sandwedge Grill
Driving Range
Leagues
Outings/Events
Membership
Services
Group/Clinic Pros
Junior Golf Camps/
Elite Jr. Team
Green – Services w/Staff
Blue – Services w/o Staff
Orange - Volunteers
Gray – Full-time Staff
City Council
Parks & Recreation Board
On-going collaboration to deliver services
48
49
The City of Lake Forest
Tax Levy
2011
Explanation of Homeowner Increase
12/2/201112:26 PM taxlevy2011110411
Attachment 4
2011 LEVY 2010 Extension $ CHANGE % CHANGE
Levy before growth 23,745,964$ 23,793,126$ (47,162)$ -0.20%
Plus 2010 Growth and exclusions 473,238
TOTAL LEVY UNDER TAX CAP 24,219,202$ 23,793,126$
Bond Funds 1,669,703 2,554,967 (885,264)$ -34.65%
TOTAL TAX LEVY 25,888,905$ 26,348,093$ (459,188)$ -1.74%
2011 2010
Forecast Actual
City Equalized Assessed Value ( EAV)2,529,165,126 2,661,423,512
1/3 market value
City Levy 25,888,905 26,348,093
Tax Rate 1.0236 0.9900 levy divided by EAV X 100
Average Home Market Value 756,800$ 800,000$
EAV 252,267 266,667
EAV X Tax Rate/100 2,582$ 2,640$ (58)$ -2.19%
This is the decrease on an average existing home.
This represents 19.5% (City) and 2.9% (Library) of the entire tax bill.
individual declines may differ
50
Page 1
TAX LEVY 2011-2012
AN ORDINANCE PROVIDING FOR THE LEVY OF TAXES FOR ALL CORPORATE PURPOSES AND FOR
THE PUBLIC SCHOOLS OF THE CITY OF LAKE FOREST, COUNTY OF LAKE AND STATE OF ILLINOIS,
FOR THE FISCAL YEAR COMMENCING MAY 1, 2011 AND ENDING APRIL 30, 2012
BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF LAKE FOREST, COUNTY OF LAKE AND
STATE OF ILLINOIS:
SECTION 1: That the Annual Appropriation Bill, an ordinance making appropriation for the corporate
purposes of The City of Lake Forest and the objects and purposes stated therein according to the
departments and other separate agencies, and for the Public Schools of The City of Lake Forest, County of
Lake and State of Illinois, for the fiscal year commencing May 1, 2011 and ending April 30, 2012 was duly
passed the 18th of July, 2011 and thereafter published in pamphlet form as provided by law, which
ordinance by reference thereto is hereby made a part of hereof.
SECTION 2: That the sum of fifty-two million, eight hundred nineteen thousand, two hundred two dollars
($52,819,202) having heretofore legally appropriated for all corporate purposes of The City of Lake
Forest and for the Public Schools of The City of Lake Forest, County of Lake and State of Illinois, to be
collected from the taxes levied for the fiscal year commencing May 1, 2011 and ending April 30, 2012 be
and same hereby is levied against all property subject to taxation with The City of Lake Forest as the same
is assessed and equalized for State and County purposes for the said fiscal year.
That the purposes for which the said amount of fifty-two million, eight hundred nineteen thousand,
two hundred two dollars ($52,819,202) hereto appropriated and hereby levied, respectively are
as follows, to wit:
GENERAL FUND Tax LevyAppropriation2011-2012General Government
Salaries and Benefits 2,063,157$ 930,854$
Supplies/Other Services and Charges 5,736,091 2,588,007
Contingency - to meet expenses of emergencies
and optional expenses not otherwise provided for 3,036,286 -
TOTAL GENERAL GOVERNMENT 10,835,534$ 3,518,861$
Legal
Contractual Services 500,000$ 242,680$
TOTAL LAW 500,000$ 242,680$
Community Development
Salaries and Benefits 1,137,272$ -$
Supplies/Other Services and Charges 139,324 -
Capital Equipment - -
-
TOTAL COMMUNITY DEVELOPMENT 1,276,596$ -$
Public Works Administration
Salaries and Benefits 288,589$ 247,191$
Supplies/Other Services and Charges 136,394 116,829
-
TOTAL PUBLIC WORKS ADMINISTRATION 424,983$ 364,020$
Public Buildings
Building Maintenance Administration
Salaries and Benefits 650,737$ 289,603$
Supplies/Other Services and Charges 712,515 317,097
TOTAL PUBLIC BUILDINGS 1,363,252$ 606,700$
51
Page 2
Tax LevyAppropriation2011-2012Streets
Salaries and Benefits 718,235$ -$
Supplies/ Other Service and Charges 697,127 -
TOTAL STREETS 1,415,362$ -$
Sanitation
Salaries and Benefits 1,079,088$ 990,844$
Supplies/ Other Service and Charges 1,035,255 950,596
TOTAL SANITATION 2,114,343$ 1,941,440$
Storm Sewers
Salaries and Benefits 193,702$ 103,001$
Supplies/ Other Service and Charges 34,488 18,339
TOTAL STORM SEWERS 228,190$ 121,340$
Engineering
Salaries and Benefits 498,236$ 223,657$
Supplies/ Other Service and Charges 42,376 19,023
TOTAL ENGINEERING 540,612$ 242,680$
Fire
Fire Administration
Salaries and Benefits 5,028,609$ 2,048,117$
Supplies/ Other Service and Charges 220,420 89,776
Capital Equipment - -
Sub-Total 5,249,029$ 2,137,892$
Emergency Medical Services
Supplies/ Other Service and Charges 25,000$ 10,182$
Sub-Total 25,000$ 10,182$
Fire Suppression
Supplies/ Other Service and Charges 88,502$ 36,046$
Sub-Total 88,502$ 36,046$
TOTAL FIRE 5,362,531$ 2,184,121$
Police
Salaries and Benefits 7,262,261$ 2,664,746$
Supplies/ Other Service and Charges 674,283 247,415
TOTAL POLICE 7,936,544$ 2,912,161$
TOTAL AMOUNT APPROPRIATED FROM GENERAL FUND 31,997,947$ 12,134,003$
Less: Total amount appropriated from other sources 19,863,944
other than Tax Levy
Sub-Total 12,134,003
TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR
GENERAL FUND 12,134,003$
52
Page 3
Tax LevyAppropriation2011-2012
ILLINOIS MUNICIPAL RETIREMENT AND SOCIAL SECURITY
For ILLINOIS MUNICIPAL RETIREMENT and SOCIAL SECURITY
(Excludes Water and Sewer Department, Paid Parking, Deerpath Golf Course,
Cemetery Commission and School District 67)
General Fund - IMRF 797,715$ 544,223$
General Fund - Social Security 603,490 544,222
Parks and Recreation Fund - IMRF 333,796 252,674
Parks and Recreation Fund - Social Security 313,733 252,674
-
TOTAL AMOUNT APPROPRIATED FROM ILLINOIS 2,048,734$ 1,593,793$
MUNICIPAL RETIREMENT AND SOCIAL SECURITY
Less: Total amount appropriated from other sources 454,941
other than Tax Levy
Sub-Total 1,593,793
TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR
ILLINOIS MUNICIPAL RETIREMENT AND SOCIAL SECURITY 1,593,793$
FIREFIGHTERS'S PENSION FUND
Other Services and Charges 1,578,207$ 980,270$
Contingency to meet expenses for emergencies and expenses
not otherwise provided for 161,680 -
TOTAL AMOUNT APPROPRIATED FOR PAYMENT TO THE FIREFIGHTERS'S PENSION FUND 1,739,887$ 980,270$
Less: Total amount appropriated from other sources
other than Tax Levy 759,617
Sub-Total 980,270
TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR
THE FIREFIGHTERS'S PENSION FUND 980,270$
Other Services and Charges 38,593$ 38,593$ TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR
THE FIREFIGHTERS'S PENSION FUND LAW PA 93-0869 38,593$ 38,593$
POLICE PENSION FUND
Other Services and Charges 1,690,800$ 1,513,910$
Contingency to meet expenses for emergencies and expenses
not otherwise provided for 169,080 -
TOTAL AMOUNT APPROPRIATED FOR PAYMENT TO THE POLICE PENSION FUND 1,859,880$ 1,513,910$
Less: Total amount appropriated from other sources 345,970
other than Tax Levy
Sub-Total 1,513,910
TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR
THE POLICE PENSION FUND 1,513,910$
53
Page 4
Tax LevyAppropriation2011-2012PARKS AND RECREATION FUND
Parks and Forestry
Administration
Salaries and Benefits 2,043,534$ 1,981,115$
Supplies/ Other Service and Charges 478,899 464,271
Capital Equipment 150,000 145,418
Sub-Total 2,672,433$ 2,590,804$
Grounds Maintenance
Supplies/ Other Service and Charges 152,106$ 147,460$
Sub-Total 152,106$ 147,460$
Athletic Field Plg/Tennis
Supplies/ Other Service and Charges 45,325$ 43,941$
Sub-Total 45,325$ 43,941$
Lake Front Facilities
Supplies/ Other Service and Charges 27,500$ 26,660$
Sub-Total 27,500$ 26,660$
Tree Trimming
Supplies/ Other Service and Charges 16,500$ 15,996$
Sub-Total 16,500$ 15,996$
Tree Removal
Supplies/ Other Service and Charges 11,600$ 11,246$
Sub-Total 11,600$ 11,246$
Insect & Disease
Supplies/ Other Service and Charges 17,630$ 17,091$
Sub-Total 17,630$ 17,091$
Tree & Shrub Planting/Care
Supplies/ Other Service and Charges 10,550$ 10,228$
Sub-Total 10,550$ 10,228$
TOTAL PARKS AND FORESTRY SECTION 2,953,644$ 2,863,426$
54
Page 5
Tax LevyAppropriation2011-2012RecreationRecreation Programs
Salaries and Benefits 2,770,147$ 680,411$
Supplies/ Other Service and Charges 1,983,612 487,220
Capital Equipment 80,294 19,722
Sub-Total 4,834,053$ 1,187,354$
Parks Equipment Reserve 150,000 36,843$
Recreation Development Fund 75,000 18,422
Contingency to meet expenses of emergencies and expenses
not otherwise provided for 866,023 -
TOTAL RECREATION SECTION 5,925,076$ 1,242,619$
TOTAL AMOUNT APPROPRIATED FROM THE PARKS AND 8,878,720 RECREATION FUND
Less: Total amount appropriated from other sources 7,636,101
other than Tax Levy
Sub-Total 4,106,045
TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR
THE PARKS AND RECREATION FUND 4,106,045$
Special Recreation
Salaries and Benefits 27,000$ 27,000$
Supplies/Other Services and Charges 269,579 269,579
Capital Improvements 30,000 30,000
Contingency to meet expenses of emergencies and
operational expenses not otherwise provided for 541 - TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR
SPECIAL RECREATION 327,120$ 326,579$
PUBLIC LIBRARY FUNDLibrary Services
Salaries and Benefits 2,190,298$ 2,190,298$
Supplies/Other Services and Charges 773,764 773,764
Contingency to meet expenses of emergencies and
operational expenses not otherwise provided for 260,284 -
Total Lake Forest Public Library - General 3,224,346$ 2,964,062$
Less: Total amount appropriated from other sources 260,284
other than Tax Levy
Sub-Total 2,964,062
TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR
THE LAKE FOREST PUBLIC LIBRARY - GENERAL 2,964,062$
Social Security and IMRF
Social Security 118,500$ 91,879$
Illinois Municipal Retirement Fund (IMRF)135,000 91,880
Total Lake Forest Public Library - Social Security and IMRF 253,500$ 183,759$
Less: Total amount appropriated from other sources 69,741
other than Tax Levy
Sub-Total 183,759
TOTAL AMOUNT TO BE RAISED BY TAX LEVY FOR
THE LAKE FOREST PUBLIC LIBRARY - SOCIAL SECURITY AND IMRF 183,759$
55
Page 6
Tax LevyAppropriation2011-2012
Library Building
Salaries and Benefits 127,183$ 94,278$
Supplies/Other Services and Charges 133,000 98,590
Sub-Total 260,183$ 192,868$
Capital Equipment 150,000$ 111,192$
Capital Improvements 100,000 74,128
Sub-Total 250,000$ 185,320$
Total Lake Forest Public Library
Building Maintenance and Repair (Sites and Building)510,183$ 378,188$
Less: Total amount appropriated from other sources 131,995
other than Tax Levy
Sub-Total 378,188
TOTAL AMOUNT TO BE RAISED BY TAX LEVY FORTHE LAKE FOREST PUBLIC LIBRARY -
BUILDING MAINTENANCE AND REPAIR 378,188$
Public Schools THE CITY OF LAKE FORESTSchool District No. 67
From the Educational Fund 26,268,804$ 22,875,000$
From the Operations, Building and Maintenance Fund 4,604,652 4,415,000
From the Capital Projects Fund 998,178 -
From the Illinois Municipal Retirement Fund 324,064 330,000
From the Social Security Fund 324,064 330,000
From the Transportation Fund 1,171,232 650,000
TOTAL AMOUNT APPROPRIATED FOR PUBLIC SCHOOLSOF THE CITY OF LAKE FOREST (School District No. 67)33,690,994$ 28,600,000$
TOTAL AMOUNT TO BE RAISED BY TAX LEVY FORPUBLIC SCHOOLS OF THE CITY OF LAKE FOREST (School District 67)28,600,000$
56
Page 7
Tax LevyAppropriation2011-2012Summary of the Amounts Appropriated From thethe Several Funds
General 31,997,947$ 12,134,003$
Illinois Municipal Retirement Fund (IMRF)1,131,511 796,897
Social Security 917,223 796,896
Firefighters's Pension 1,739,887 980,270
Firefighters's Pension law PA 93-0869 38,593 38,593
Police Pension 1,859,880 1,513,910
Sub-Total 37,685,041$ 16,260,569$
Parks and Recreation 8,878,720$ 4,106,045$
Special Recreation 327,120 326,579
Public Library 3,224,346 2,964,062
Public Library - Social Security 118,500 91,879
Public Library - Illinois Municipal Retirement Fund (IMRF)135,000 91,880
Public Library - Sites and Building 510,183 378,188
Sub-Total 13,193,869$ 7,958,633$
The City of Lake Forest School District No. 67 ***
Educational 26,268,804$ 22,875,000$
Operations, Building and Maintenance 4,604,652 4,415,000
Capital Projects Fund 998,178 -
Illinois Municipal Retirement Fund 324,064 330,000
Social Security 324,064 330,000
Transportation 1,171,232 650,000
Sub-Total 33,690,994$ 28,600,000$
GRAND TOTAL 84,569,904$ 52,819,202$
*** The City of Lake Forest School District No. 67will be holding a special meeting December 13 and thesetax levy numbers could change.
Section 3: Severability. If any provision of this Ordinance is declared unconstitutional, invalid, or
otherwise unenforceable by a court of competent jurisdiction, then that provision shall be deemed severed
from this Ordinance and the remainder of this Ordinance shall remain in full force and effect.
Section 4: The City Clerk of The City of Lake Forest is hereby directed to file a certified copy of this
ordinance with the County Clerk of Lake County in the State of Illinois as required by law.
Section 5: This ordinance shall be in force and effect ten (10) days after its passage, approval
and publication.PASSED THIS ____ day of ________________, 2011
____________________________________________ City Clerk
APPROVED THIS ____ day of ________________, 2011
_____________________________________________ Mayor
ATTEST:
______________________________________ City Clerk
That this ordinance be published in pamphlet form and be made available to the
public at the City Hall service counter.57
AN ORDINANCE
ABATING THE TOTAL TAX BEING LEVIED IN 2011
FOR THE ANNUAL PAYMENT OF THE PRINCIPAL AND INTEREST
ON THE 2002 GENERAL OBLIGATION SERIES 2002-A WATERWORKS AND
SEWERAGE SYSTEM BOND ISSUE
WHEREAS, the City Council of The City of Lake Forest, Lake County, Illinois, did on the 5th day of
August, 2002 authorize the issuance of General Obligation Series 2002-A Bonds in the amount of $26,000,000 for
the purpose of financing water and sewer system improvements and provided for the levy and collection of a direct
annual tax for the payment of the principal and interest of said bonds; and
WHEREAS, the City has funds in the 2002 General Obligation Series 2002-A Waterworks and Sewerage
System Bond Fund from sufficient revenues collected from the waterworks and sewerage system; and
WHEREAS, The City of Lake Forest has on hand, sufficient funds to pay the total tax levied for the annual
payment of the principal and interest on the 2002 General Obligation Series 2002-A Waterworks and Sewerage
Bond Issue due in fiscal year commencing May 1, 2012, therefore the total levy of the tax provided in the original
bond ordinance passed August 5, 2002, a copy of which was filed in the Office of the County Clerk is unnecessary;
NOW, THEREFORE, BE IT ENACTED by the City Council of The City of Lake Forest as follows:
SECTION 1: That the County Clerk of Lake County, Illinois, is hereby authorized and directed to abate the
total 2011 Tax Levy of $1,404,000.00 hitherto provided for and levied in the ordinance providing for the issuance of
$26,000,000 General Obligation Series 2002-A Waterworks and Sewerage System Bonds of The City of Lake
Forest, Lake County, Illinois passed August 5, 2002.
SECTION 2: That this ordinance shall be in full force and effect from and after its approval and publication
as required by law.
PASSED THIS ______ day of __________________, 2011.
_________________________________
City Clerk
APPROVED THIS ______ day of _______________, 2011.
_________________________________
Mayor
ATTEST:
______________________________
City Clerk
2002A
58
AN ORDINANCE
ABATING THE TOTAL TAX BEING LEVIED IN 2011
FOR THE ANNUAL PAYMENT OF THE PRINCIPAL AND INTEREST
ON THE 2004 GENERAL OBLIGATION SERIES 2004-A GOLF COURSE BOND ISSUE
WHEREAS, the City Council of The City of Lake Forest, Lake County, Illinois, did on the 7th day of
September, 2004 authorize the issuance of General Obligation Series 2004-A Bonds in the amount of $1,195,000 for
the purpose of financing improvements to the Deerpath Golf Course and provided for the levy and collection of a
direct annual tax for the payment of the principal and interest of said bonds; and
WHEREAS, the City has funds in the 2004 General Obligation Series 2004-A Golf Course Bond Fund
from sufficient revenues collected from the City’s golf fees; and
WHEREAS, The City of Lake Forest has on hand, sufficient funds to pay the total tax levied for the annual
payment of the principal and interest on the 2004 General Obligation Series 2004-A Golf Course Bond Issue due in
fiscal year commencing May 1, 2012, therefore the total levy of the tax provided in the original bond ordinance
passed September 7, 2004, a copy of which was filed in the Office of the County Clerk is unnecessary;
NOW, THEREFORE, BE IT ENACTED by the City Council of The City of Lake Forest as follows:
SECTION 1: That the County Clerk of Lake County, Illinois, is hereby authorized and directed to abate the
total 2011 Tax Levy of $78,000.00 hitherto provided for and levied in the ordinance providing for the issuance of
$1,195,000 General Obligation Series 2004-A Golf Course Bonds of The City of Lake Forest, Lake County, Illinois
passed September 7, 2004.
SECTION 2: That this ordinance shall be in full force and effect from and after its approval and publication
as required by law.
PASSED THIS ______ day of __________________, 2011.
_________________________________
City Clerk
APPROVED THIS ______ day of _______________, 2011.
_________________________________
Mayor
ATTEST:
______________________________
City Clerk
2004A
59
AN ORDINANCE
ABATING THE TOTAL TAX BEING LEVIED IN 2011
FOR THE ANNUAL PAYMENT OF THE PRINCIPAL AND INTEREST
ON THE 2004 GENERAL OBLIGATION SERIES 2004-B STORM SEWER BOND ISSUE
WHEREAS, the City Council of The City of Lake Forest, Lake County, Illinois, did on the 7th day of
September, 2004 authorize the issuance of General Obligation Series 2004-B Bonds in the amount of $5,200,000 for
the purpose of financing storm sewer and related street and capital improvements and provided for the levy and
collection of a direct annual tax for the payment of the principal and interest of said bonds; and
WHEREAS, the City has funds in the 2004 General Obligation Series 2004-B Storm Sewer Bond Fund
from sufficient revenues collected from the City’s sales tax; and
WHEREAS, The City of Lake Forest has on hand, sufficient funds to pay the total tax levied for the annual
payment of the principal and interest on the 2004 General Obligation Series 2004-B Storm Sewer Bond Issue due in
fiscal year commencing May 1, 2012, therefore the total levy of the tax provided in the original bond ordinance
passed September 7, 2004, a copy of which was filed in the Office of the County Clerk is unnecessary;
NOW, THEREFORE, BE IT ENACTED by the City Council of The City of Lake Forest as follows:
SECTION 1: That the County Clerk of Lake County, Illinois, is hereby authorized and directed to abate the
total 2011 Tax Levy of $155,250.00 hitherto provided for and levied in the ordinance providing for the issuance of
$5,200,000 General Obligation Series 2004-B Storm Sewer Bonds of The City of Lake Forest, Lake County, Illinois
passed September 7, 2004.
SECTION 2: That this ordinance shall be in full force and effect from and after its approval and publication
as required by law.
PASSED THIS ______ day of __________________, 2011.
_________________________________
City Clerk
APPROVED THIS ______ day of _______________, 2011.
_________________________________
Mayor
ATTEST:
______________________________
City Clerk
2004B
60
AN ORDINANCE
ABATING A PORTION OF THE TAX BEING LEVIED IN 2011
FOR THE ANNUAL PAYMENT OF THE PRINCIPAL AND INTEREST
ON THE TAXABLE GENERAL OBLIGATION BONDS, SERIES 2010-B BOND ISSUE
(RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS-DIRECT PAYMENT)
WHEREAS, the City Council of The City of Lake Forest, Lake County, Illinois, did on the 19th day of
April, 2010 authorize the issuance of Taxable General Obligation Bonds, Series 2010-B (Recovery Zone Economic
Development Bonds – Direct Payment) in the amount of $3,000,000 for the purpose of financing capital
improvements and provided for the levy and collection of a direct annual tax for the payment of the principal and
interest of said bonds; and
WHEREAS, the City has funds in the Taxable General Obligation Bonds, Series 2010-B Bond Fund from
payments from the U.S. Treasury; and
WHEREAS, The City of Lake Forest has on hand, sufficient funds to pay a portion of the tax levied for the
annual payment of the principal and interest on the Taxable General Obligation Bonds, Series 2010-B Bond Issue
(Recovery Zone Economic Development Bonds- Direct Payment) due in fiscal year commencing May 1, 2012,
therefore a portion of the levy of the tax provided in the original bond ordinance passed April 19, 2010, a copy of
which was filed in the Office of the County Clerk is unnecessary;
NOW, THEREFORE, BE IT ENACTED by the City Council of The City of Lake Forest as follows:
SECTION 1: That the County Clerk of Lake County, Illinois, is hereby authorized and directed to abate a
portion of the 2011 Tax Levy of $77,625.00 hitherto provided for and levied in the ordinance providing for the
issuance of $3,000,000 Taxable General Obligation Bonds, Series 2010-B (Recovery Zone Economic Development
Bonds – Direct Payment) of The City of Lake Forest, Lake County, Illinois passed April 19, 2010.
SECTION 2: That this ordinance shall be in full force and effect from and after its approval and publication
as required by law.
PASSED THIS ______ day of __________________, 2011.
_________________________________
City Clerk
APPROVED THIS ______ day of _______________, 2011.
_________________________________
Mayor
ATTEST:
______________________________
City Clerk
2010-B
61
AN ORDINANCE
ABATING A PORTION OF THE TAX BEING LEVIED IN 2011
FOR THE ANNUAL PAYMENT OF THE PRINCIPAL AND INTEREST
ON THE TAXABLE GENERAL OBLIGATION BONDS, SERIES 2010-C BOND ISSUE
(BUILD AMERICA BONDS-DIRECT PAYMENT)
WHEREAS, the City Council of The City of Lake Forest, Lake County, Illinois, did on the 19th day of
April, 2010 authorize the issuance of Taxable General Obligation Bonds, Series 2010-C (Build America Bonds-
Direct Payment) in the amount of $5,425,000 for the purpose of financing capital improvements and provided for
the levy and collection of a direct annual tax for the payment of the principal and interest of said bonds; and
WHEREAS, the City has funds in the Taxable General Obligation Bonds, Series 2010-C Bond Fund from
payments from the U.S. Treasury; and
WHEREAS, The City of Lake Forest has on hand, sufficient funds to pay a portion of the tax levied for the
annual payment of the principal and interest on the Taxable General Obligation Bonds, Series 2010-C Bond Issue
(Build America Bonds- Direct Payment) due in fiscal year commencing May 1, 2012, therefore a portion of the levy
of the tax provided in the original bond ordinance passed April 19, 2010, a copy of which was filed in the Office of
the County Clerk is unnecessary;
NOW, THEREFORE, BE IT ENACTED by the City Council of The City of Lake Forest as follows:
SECTION 1: That the County Clerk of Lake County, Illinois, is hereby authorized and directed to abate a
portion of the 2011 Tax Levy of $90,759.00 hitherto provided for and levied in the ordinance providing for the
issuance of $5,425,000 Taxable General Obligation Bonds, Series 2010-C (Build America Bonds – Direct Payment)
of The City of Lake Forest, Lake County, Illinois passed April 19, 2010.
SECTION 2: That this ordinance shall be in full force and effect from and after its approval and publication
as required by law.
PASSED THIS ______ day of __________________, 2011.
_________________________________
City Clerk
APPROVED THIS ______ day of _______________, 2011.
_________________________________
Mayor
ATTEST:
______________________________
City Clerk
2010-C
62
AN ORDINANCE
ABATING THE TOTAL TAX BEING LEVIED IN 2011
FOR THE ANNUAL PAYMENT OF THE PRINCIPAL AND INTEREST
ON THE 2011 GENERAL OBLIGATION SERIES 2011-A REFUNDING BOND ISSUE
WHEREAS, the City Council of The City of Lake Forest, Lake County, Illinois, did on the 6th day of
September, 2011 authorize the issuance of General Obligation Series 2011-A Refunding Bonds in the amount of
$2,415,000 for the purpose of currently refunding certain maturities of the City’s outstanding General Obligation
Bonds, Series 1999, 2003C and 2003D and provided for the levy and collection of a direct annual tax for the
payment of the principal and interest of said bonds; and
WHEREAS, the City has funds in the 2011 General Obligation Series 2011-A from sufficient revenues
collected from the City owned Cemetery, the waterworks and sewerage system and the City’s sales tax; and
WHEREAS, The City of Lake Forest has on hand, sufficient funds to pay the total tax levied for the annual
payment of the principal and interest on the 2011 General Obligation Series 2011-A Refunding Bond Issue due in
fiscal year commencing May 1, 2012, therefore the total levy of the tax provided in the original bond ordinance
passed September 6, 2011, a copy of which was filed in the Office of the County Clerk is unnecessary;
NOW, THEREFORE, BE IT ENACTED by the City Council of The City of Lake Forest as follows:
SECTION 1: That the County Clerk of Lake County, Illinois, is hereby authorized and directed to abate the
total 2011 Tax Levy of $516,262.50 hitherto provided for and levied in the ordinance providing for the issuance of
$2,415,000 General Obligation Series 2011-A Refunding Bonds of The City of Lake Forest, Lake County, Illinois
passed September 6, 2011.
SECTION 2: That this ordinance shall be in full force and effect from and after its approval and publication
as required by law.
PASSED THIS ______ day of __________________, 2011.
_________________________________
City Clerk
APPROVED THIS ______ day of _______________, 2011.
_________________________________
Mayor
ATTEST:
______________________________
City Clerk
2011A
63
AN ORDINANCE
ABATING THE TOTAL TAX BEING LEVIED IN 2011
FOR THE ANNUAL PAYMENT OF THE PRINCIPAL AND INTEREST
ON THE 2011 GENERAL OBLIGATION SERIES 2011-B REFUNDING BOND ISSUE
WHEREAS, the City Council of The City of Lake Forest, Lake County, Illinois, did on the 6th day of
September, 2011 authorize the issuance of General Obligation Series 2011-B Refunding Bonds in the amount of
$24,825,000 for the purpose of advance refunding certain maturities of the City’s outstanding General Obligation
Bonds, Series 2002A, Series 2004A and Series 2004B and provided for the levy and collection of a direct annual tax
for the payment of the principal and interest of said bonds; and
WHEREAS, the City has funds in the 2011 General Obligation Series 2011-B from sufficient revenues
collected from the waterworks and sewerage system, the City’s golf fees and the City’s sales tax; and
WHEREAS, The City of Lake Forest has on hand, sufficient funds to pay the total tax levied for the annual
payment of the principal and interest on the 2011 General Obligation Series 2011-B Refunding Bond Issue due in
fiscal year commencing May 1, 2012, therefore the total levy of the tax provided in the original bond ordinance
passed September 6, 2011, a copy of which was filed in the Office of the County Clerk is unnecessary;
NOW, THEREFORE, BE IT ENACTED by the City Council of The City of Lake Forest as follows:
SECTION 1: That the County Clerk of Lake County, Illinois, is hereby authorized and directed to abate the
total 2011 Tax Levy of $827,300.00 hitherto provided for and levied in the ordinance providing for the issuance of
$24,825,000 General Obligation Series 2011-B Refunding Bonds of The City of Lake Forest, Lake County, Illinois
passed September 6, 2011.
SECTION 2: That this ordinance shall be in full force and effect from and after its approval and publication
as required by law.
PASSED THIS ______ day of __________________, 2011.
_________________________________
City Clerk
APPROVED THIS ______ day of _______________, 2011.
_________________________________
Mayor
ATTEST:
______________________________
City Clerk
2011B
64
THE CITY OF LAKE FOREST
ORDINANCE NO. _________
AN ORDINANCE APPROVING A
FEE SCHEDULE FOR THE CITY OF LAKE FOREST
WHEREAS, The City has established various fees and charges as part of its
codes, ordinances, rules, regulations, and policies, which fees and charges are
reviewed from time-to-time; and
WHEREAS, the City Council has reviewed such fees and charges, and
hereby determines that it is necessary to adjust certain existing fees and charges,
and/or to establish formally other fees and charges; and
WHEREAS, the City Council has determined that it is in the best interests
of the City and its residents to adopt this Ordinance;
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF LAKE FOREST, COUNTY OF LAKE, STATE
OF ILLINOIS, as follows:
SECTION ONE: Recitals. The foregoing recitals are incorporated as the
findings of the City Council and are hereby incorporated into and made a part of
this Ordinance.
SECTION TWO: Approval of Fee Schedule. The City Council hereby
approves the supplemental fee schedule set forth in Exhibit A (“Supplemental Fee
Schedule”). To the extent any provision of any code, ordinance, regulation, rule, or
65
2
policy of the City is contrary to the Supplemental Fee Schedule, such provision is
hereby deemed amended so that the Supplemental Fee Schedule shall control. Any
fee or charge not otherwise listed on the Supplemental Fee Schedule shall remain
unchanged and in full force and effect.
SECTION THREE: Effective Date of Supplemental Fee Schedule.
The fees and charges set forth on the Supplemental Fee Schedule shall take effect
as of the date noted on the Supplemental Fee Schedule.
SECTION FOUR: Effective Date. This Ordinance shall be in full force
and effect upon its passage, approval, and publication in pamphlet form in the
manner provided by law.
Passed this ____ day of _________________________, 2011 AYES: NAYS: ABSENT: ABSTAIN: Approved this __ day of _________________________, 2011 _____________________________ Mayor ATTEST: _______________________________ City Clerk
66
3
Exhibit A
Supplemental Schedule of Fees and Charges
67
Increases to Fees
Effective May 1, 2012 or As Noted
1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
A B C D E F
PROPOSED FY2013
Amount $$
%Projected
Fees and Charges Fund FY2012 FEE CHANGE Increase in Revenue
Senior Resources
Membership Dues
Residents of Lake Forest, Lake Bluff and unincorporated
Lake Forest and Lake Bluff Senior Resources $35 per person $35 per person 0.0%
$55 per family $55 per family 0.0%
Outside of Lake Forest and Lake Bluff Senior Resources $45 per person $45 per person 0.0%
$65 per family $65 per family 0.0%
Circuit Breaker participants Lake Forest and Lake Bluff Senior Resources $10 per person $10 per person 0.0%
residents only $15 per family $15 per family 0.0%0
Car and Bus rides Senior Resources $3/fee each direction $3/fee each direction 0.0%
$6 round trip $6 round trip 0.0%
Taxi subsidy- Lake Forest and Lake Bluff residents Senior Resources 16 coupons/month 16 coupons/month
living within the Lake Forest High School District for a value of $3/each for a value of $3/each 0.0%
Parks and Recreation
Seasonal Fees-Resident: early payment discount
Class A -Adult Single DPG 1,185 Eliminated
Class B -Adult Combo DPG 2,055 Eliminated
Class C -Limited DPG 880 Eliminated
Junior 19-22 Unlimited DPG 827 Eliminated
Class D -Junior DPG 529 Eliminated
Class F - Senior Citizen DPG 704 Eliminated
Class G -Sr. Citizen Combo DPG 1,246 Eliminated
Limited Plus DPG 750 Eliminated
Seasonal Fees (Non-Resident) - early payment discount
Class A -Adult Single DPG 1,643 Eliminated
Class B -Adult Combo DPG 2,408 Eliminated
Class C -Limited DPG 1,014 Eliminated
Class D -Junior DPG 598 Eliminated
Junior 19-22 Unlimited DPG 837 Eliminated
Class F - Senior Citizen DPG 1,003 Eliminated
Class G -Sr. Citizen Combo DPG 1,786 Eliminated
68
Increases to Fees
Effective May 1, 2012 or As Noted
2
1
2
3
4
5
A B C D E F
PROPOSED FY2013
Amount $$
%Projected
Fees and Charges Fund FY2012 FEE CHANGE Increase in Revenue
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
Limited Plus DPG 800 Eliminated
Seasonal Fees-Resident
Class A -Adult Single DPG 1,185 1,280 8%
Class B -Adult Combo DPG 2,055 2,219 8%
Class C -Limited DPG 880 950 8%
Junior 19-22 Unlimited DPG 827 Eliminated $48,883
Class D -Junior DPG 529 571 8%
Class F - Senior Citizen DPG 704 760 8%
Class G -Sr. Citizen Combo DPG 1,246 Eliminated
Limited Plus DPG 750 810 8%
Seasonal Fees (Non-Resident)
Class A -Adult Single DPG 1,643 1,742 6%
Class B -Adult Combo DPG 2,408 2,552 6%
Class C -Limited DPG 1,014 1,075 6%
Class D -Junior DPG 598 634 6%$2,355
Junior 19-22 Unlimited DPG 837 Eliminated
Class F - Senior Citizen DPG 1,003 1,063 6%
Class G -Sr. Citizen Combo DPG 1,786 Eliminated
Limited Plus DPG 800 848 6%
Boating and Beach Fees - effective February 1, 2012
Boat Ramp/Sailboat Permits-Recreation
Boat Ramp (R)Parks/Rec 394 410 4%
Boat Ramp 2nd boat/ half season Parks/Rec 197 205 4%
Boat Ramp 3rd boat Parks/Rec 100 104 4%
Boat Ramp (R) (Sen.) Parks/Rec 300 313 4%
Boat Ramp (R) (Sen) 2nd boat/ half season Parks/Rec 151 157 4%
Boat Ramp (NR) Parks/Rec 2,501 2,601 4%
Year round storage Resident Parks/Rec 1,748 1,818 4%
Year round storage Resident senior Parks/Rec 851 1,107 30%
Year round storage non-resident Parks/Rec 5,263 5,474 4%
Seasonal Boat Storage Resident Parks/Rec 1,184 1,230 4%
Seasonal Boat Storage Resident Senior Parks/Rec 620 806 30%
Seasonal Boat Storage Non-resident Parks/Rec 4,472 4,651 4%
Winter Sailboat Storage (R) Parks/Rec 620 645 4%$6,122
Winter Sailboat Storage (R) Senior Parks/Rec 620 645 4%
69
Increases to Fees
Effective May 1, 2012 or As Noted
3
1
2
3
4
5
A B C D E F
PROPOSED FY2013
Amount $$
%Projected
Fees and Charges Fund FY2012 FEE CHANGE Increase in Revenue
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
Winter Sailboat Storage (Nonresident)Parks/Rec 2,238 2,328 4%
Sailboat Racks Resident Parks/Rec 394 410 4%
Sailboat Racks Resident Senior Parks/Rec 300 313 4%
Sailboat Racks Non-resident Parks/Rec 2,324 2,417 4%
South Beach Parking Permit (R)Parks/Rec 114 119 4%
South Beach Parking Permit (R) (Sen.)Parks/Rec 85 88 4%
South Beach Parking Permit (NR)Parks/Rec 1,404 1,460 4%
South Beach Parking Permit Employee/Retiree Parks/Rec 78 81 4%
Extra Decals Parks/Rec 64 67 5%
Daily Boat Launch Parks/Rec 36 37 3%
Winter Sailboat Rack Storage Parks/Rec 94 98 4%
Fitness Center Fees - effective May 1, 2012
Fitness Center Membership Fees
Individual resident rate Parks/Rec 328 341 4%
Individual resident rate - 6 months Parks/Rec 226 235 4%
Individual resident rate - 3 months Parks/Rec 168 175 4%
Individual non-resident rate Parks/Rec 393 409 4%
Individual non-resident rate - 6 months Parks/Rec 291 303 4%
Individual non-resident rate - 3 months Parks/Rec 202 210 4%
Couple resident rate Parks/Rec 512 532 4%
Couple resident rate - 6 months Parks/Rec 410 426 4%
Couple resident rate - 3 month Parks/Rec 251 261 4%
Couple non-resident rate Parks/Rec 615 640 4%
Couple non-resident rate - 6 months Parks/Rec 513 534 4%
Couple non-resident rate - 3 months Parks/Rec 301 313 4%
Family resident rate Parks/Rec 717 746 4%
Family resident rate - 6 months Parks/Rec 615 640 4%
Family resident rate - 3 months Parks/Rec 332 345 4%
Family non-resident rate Parks/Rec 860 894 4%
Family non-resident rate - 6 months Parks/Rec 758 788 4%$24,843
Family non-resident rate - 3 months Parks/Rec 399 415 4%
Senior resident rate Parks/Rec 235 244 4%
Senior resident rate - 6 months Parks/Rec 126 131 4%
Senior resident rate - 3 months Parks/Rec 133 138 4%
Senior non-resident rate Parks/Rec 282 293 4%
Senior non-resident rate - 6 months Parks/Rec 180 187 4%
Senior non-resident rate - 3 months Parks/Rec 152 158 4%
Senior couple resident rate Parks/Rec 361 375 4%
70
Increases to Fees
Effective May 1, 2012 or As Noted
4
1
2
3
4
5
A B C D E F
PROPOSED FY2013
Amount $$
%Projected
Fees and Charges Fund FY2012 FEE CHANGE Increase in Revenue
123
124
125
126
127
128
129
130
131
132
Senior couple resident rate - 6 months Parks/Rec 259 269 4%
Senior couple resident rate - 3 months Parks/Rec 167 174 4%
Senior couple non-resident rate Parks/Rec 429 446 4%
Senior couple non-resident rate - 6 months Parks/Rec 326 339 4%
Senior couple non-resident rate - 3 months Parks/Rec 200 208 4%
Student resident rate Parks/Rec 250 260 4%
Student non-resident rate Parks/Rec 300 312 4%
Matinee resident rate Parks/Rec 165 172 4%
Matinee non-resident rate Parks/Rec 197 205 4%
71
THE CITY OF LAKE FOREST
ORDINANCE NO. _________
AN ORDINANCE REGARDING CERTAIN
FEES FOR THE CITY OF LAKE FOREST
Adopted by the Mayor and City Council of
The City of Lake Forest
this ____ day of ____________, 2011
Published in pamphlet form by direction and
authority of the City Council of The City of Lake Forest,
Lake County, Illinois
this ______ day of ________________, 2011
72
1
THE CITY OF LAKE FOREST
ORDINANCE NO. _________
AN ORDINANCE REGARDING CERTAIN
FEES FOR THE CITY OF LAKE FOREST
WHEREAS, The City has established various fees and charges as part of its codes,
ordinances, rules, regulations, and policies; and
WHEREAS, the City Council acknowledges that various programs and activities
conducted under the auspices of the Parks and Recreation Department and the Senior Center
("Special Programs") are unique with respect to their occurrence and costs; and
WHEREAS, the Special Programs are typically characterized by either (i) being
associated with non-recurring events; (ii) being associated with events sponsored by third-
parties, such as a show or travel to a special destination; or (iii) their reliance on third-party
instructors or presenters who are not fully employed by the City; and
WHEREAS, because of the uniqueness of such Special Programs, it is ordinarily
impractical to pre-establish a fee for the Special Programs, especially if such fee must first be
presented to, reviewed by, and approved by the City Council; and
WHEREAS, the City Council has determined that it is in the best interests of the City and
its residents to adopt this Ordinance for the setting of certain fees for the Special Programs;
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF LAKE FOREST, COUNTY OF LAKE, STATE OF ILLINOIS, as follows:
SECTION ONE: Recitals. The foregoing recitals are incorporated as the findings
of the City Council and are hereby incorporated into and made a part of this Ordinance.
SECTION TWO: Authority for Setting Special Program Fees. The City Council
hereby authorizes the City Manager or the Manager's designee to set fees for Special Programs
in consultation with:
73
2
a. the Parks and Recreation Board for those Special Programs conducted under the
auspices of the Parks and Recreation Department; and
b. the Senior Resource Commission for those Special Programs conducted under
the auspices of the Senior Center.
In setting such fees, the City Manager shall abide by the City's current fiscal policy and
otherwise endeavor to set fees that will not result in an expenditure of City funds unless
included within the approved budget. Nothing in this ordinance is intended to delegate the City
Council's review and approval of annual fees related to the activities of the Parks and
Recreation Department and the Senior Center.
SECTION THREE: Effective Date. This Ordinance shall be in full force and effect
upon its passage, approval, and publication in pamphlet form in the manner provided by law.
Passed this ____ day of _________________________, 2011
AYES:
NAYS:
ABSENT:
ABSTAIN:
Approved this __ day of _________________________, 2011
_____________________________
Mayor
ATTEST:
_______________________________
City Clerk
#1315151/2
74
The City of Lake Forest
CITY COUNCIL
Proceedings of the November 21, 2011 Regular Meeting
7:30 p.m. – City Hall Council Chambers
CALL TO ORDER AND ROLL CALL: Mayor Cowhey called the meeting to order at 7:50 p.m.
Deputy City Clerk called the roll of Council members. Present: Aldermen Novit, Waldeck,
Pandaleon, Schoenheider, Palmer, Adelman. Absent: Moore, Morsch. Quorum present. There
were approximately 75 present in the audience.
Also present were: Robert Kiely, City Manager; Vic Filippini, City Attorney; Marlo Del Percio, City
Attorney; Catherine Czerniak, Director of Community Development; Kathy Reinertsen, Finance
Director; Ramesh Kanapareddy, City Engineer; Mary Van Arsdale, Director of Parks &
Recreation; Cathryn Buerger, Deputy City Clerk.
PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was recited by all in attendance.
Reports of City Officers
1. Comments by Mayor
Mayor Cowhey read a prepared statement pertaining to the events with District 67. Alderman
Novit moved, seconded by Alderman Palmer to affirm and support the statement that was read
into record. The statement will be made available in the office of City Clerk.
Resolution of Appreciation for Louise Breckan for 30 years of service
Alderman Palmer moved, seconded by Alderman Novit to approve the Resolution. Motion
carried unanimously by voice vote.
Resolution of Appreciation for Julie Carpenter for 24 years of service Item will be read at the
December 5th 2011 City Council meeting.
Resolution of Appreciation for Ken Magnus for 21 years of service Alderman Palmer moved,
seconded by Alderman Pandaleon to approve the Resolution. Motion carried unanimously by
voice vote.
Resolution of Appreciation for Chris Marszlak for 24 years of service Alderman Palmer moved,
seconded by Alderman Novit to approve the Resolution. Motion carried unanimously by voice
vote.
2. Comments by City Manager
Approval of a Resolution Initiating the Submission of a Public Question to Authorize the City to
Adopt An “Opt-Out” Program for the Supply of Electricity to Residential and Small Commercial
Retail Customers Electrical Aggregation Sub-Committee Chairman David stood before Council
to seek approval to authorize the placement of a public question regarding an opt-out
program on the March 20, 2012 primary election ballot.
On August 10, 2009, Governor Quinn signed into law Public Act 96-176, amending the Illinois
Power Agency Act (“Act”) to allow municipalities to arrange for the provision of electricity to
residential and small commercial retail customers by alternative electric suppliers (instead of
75
Proceedings of the November 21, 2011
Regular City Council Meeting
ComEd). Under the new law, the City may seek bids for the provision of aggregate electricity
supply services to these customers, in hopes that the selected rate will be lower than the
standard rate offered by ComEd. The Act contemplates two types of programs: an “opt-in”
program, in which a customer must affirmatively agree to service by the selected alternative
supplier; or an “opt-out” program, in which all residential and small commercial retail customers
would be switched automatically to the alternative supplier, unless a customer affirmatively
opted out of the program and continued service through ComEd or another provider. Under
either type of program, ComEd would remain the distributor of electricity in the City; the
selected alternative supplier would merely generate the electricity provided and deliver it to
ComEd for distribution. ComEd still maintains the infrastructure.
The City Council may initiate an opt-in program without any prior approval by City residents.
However, to operate an opt-out program, City residents must first approve a referendum. The
attached Resolution would authorize the placement of a public question regarding an opt-out
program on the March 20, 2012 primary election ballot. Under the Illinois Election Code, a
resolution placing a public question on a ballot must be adopted at least 79 days prior to an
election. For the March 20, 2012 election, the deadline falls on Tuesday, January 3, 2012.
If an opt-out referendum is approved, the City may then initiate an opt-out program through the
following steps:
1. Adoption of an ordinance authorizing an opt-out program
2. Preparation of a Plan of Operation and Governance (POG)
3. Holding of two public hearings by the City Council concerning the POG
4. Adoption of the POG
5. Solicitation of bids from alternative electricity suppliers
6. Award of bid and commencement of opt-out program
City Staff estimates that the program would be initiated during the spring and early summer of
2012. City staff has met with Highland Park, Skokie, Deerfield, Northbrook, Lake Bluff, Evanston
and Park Ridge whom are interested in signing an Intergovernmental Agreement to
collaboratively work through the municipal aggregation process. There is a possibility, that
communities with similar electrical distribution and usage should see a greater savings. This
outcome may be proven during the process, in which the Sub-Committee will report back to the
Council.
RECOMMENDED ACTION: Approve a Resolution Initiating the Submission of a Public Question to
Authorize the City to Adopt An “Opt-Out” Program for the Supply of Electricity to Residential and
Small Commercial Retail Customers.
Alderman Palmer moved, seconded by Alderman Waldeck to approve a Resolution Initiating
the Submission of a Public Question to Authorize the City to Adopt An “Opt -Out” Program for the
Supply of Electricity to Residential and Small Commercial Retail Customers. The following voted
“Aye” Novit, Waldeck, Pandaleon, Schoenheider, Palmer, and Adelman, “Nay” none motion
carries.
Announcement of Golf Advisory Committee
Bob Kiely announced the new nine members of the Gold Advisory Committee. He thanked all
who applied and encouraged those who did apply, to please keep in mind there are other
boards and commissions who could use their time.
76
Proceedings of the November 21, 2011
Regular City Council Meeting
3. Council Committee Reports
A. Finance Committee- Alderman Pandaleon presented the following items:
1. Audit Committee Report Fiscal Year 2011 Annual Financial Report
The Comprehensive Annual Financial Report (CAFR) for the year ended April 30, 2011 was
presented by Audit Committee member Michelle Moreno. It has been reviewed with
McGladrey & Pullen LLP, the City’s audit firm, and has been accepted by the Audit
Committee. The City has received an unqualified (clean) opinion from McGladrey &
Pullen, LLP.
The City has been awarded The Certificate of Achievement for Excellence in Financial
Reporting from the Government Finance Officers Association for thirty-two consecutive
years. This report will be submitted for a thirty- third award.
The Audit Committee met three times during 2011 and highlights of those meetings as well
as the report will be presented tonight. Allan Jacobs, Audit Committee Chairman, was
unable to attend tonight’s meeting and Ms. Moreno volunteered to make the report.
RECOMMENDED ACTION: Receipt of audit report for the fiscal year ended April 30, 2011
Alderman Novit moved, seconded by Alderman Palmer to accept the Annual Financial
Report. Motion carried unanimously by voice vote.
2. Consideration of an Ordinance approving a Fee Schedule
As part of the budget process, all departments reviewed their user fees. Total fee
increases for established fees are estimated to be $30,965 in the Parks and Recreation
Fund and $ 51,238 in the Deerpath Golf Course Fund.
Revenue for the new fees related to development activity is estimated to be $1,720 in
the General Fund. If the City Council is in agreement with these new fees, the ordinance
will be presented at a future meeting.
RECOMMENDED ACTION: Grant first reading of the ordinance approving a fee schedule
for The City of Lake Forest.
Alderman Palmer moved, seconded by Alderman Novit to grant first reading to approve
a fee schedule for the City of Lake Forest. Motion carried unanimously by voice vote.
3. Consideration of an Ordinance Related to Annual Fees for the Parks and Recreation
Fund and the Senior Resources Fund
BACKGROUND/DISCUSSION: As was discussed at the July 18, 2011 Finance Committee
meeting, an ordinance that will allow certain fees for the Parks and Recreation Fund and
the Senior Resources Fund to be set by their respective boards needs to be passed by
the City Council. This ordinance will also state that certain annual fees such as
memberships for the Parks and Recreation Fund and Senior Resources Fund will be
approved by the City Council.
77
Proceedings of the November 21, 2011
Regular City Council Meeting
RECOMMENDED ACTION: Grant first reading to the ordinance related to Annual Fees for
the Parks and Recreation Fund and Senior Resources Fund.
Alderman Palmer moved, seconded by Alderman Novit to grant first reading of the
ordinance related to annual fees for the Parks and Recreation Fund and Senior
Resources Fund. Motion carried unanimously by voice vote.
4. Consideration of an Ordinance Establishing the Tax Levy for 2011 (First Reading)
BACKGROUND/DISCUSSION: The annual tax levy must be filed with the County Clerk
before the last Tuesday in December. Spreadsheets reviewing the tax levy for 2011 are
attached for your consideration. These include: 1) the tax levy limitations under the tax
cap 2) the tax levy distributed by fund without new growth and allowances distributed 3)
the tax levy by fund with new growth and allowances distributed and 4) an explanation
of the tax increase to an average homeowner.
The tax levy to be approved includes the needs of all City departments, as well as for
pensions and debt service requirements. A summary of the proposed levies is as follows:
Proposed
FUND 2011 LEVY 2010 Extension $ CHANGE % CHANGE
City General 12,134,003$ 11,869,949$ 264,054$ 2.22%
Pension Funds 4,087,973$ 4,018,750$ 69,224$ 1.72%
Fire Pension PA 93-0689 38,593 53,228 (14,635)$ -27.50%
Recreation 1,242,619$ 1,224,255 18,364$ 1.50%
Parks 2,863,426$ 2,821,109 42,317$ 1.50%
Special Recreation 326,579$ 345,985$ (19,406)$ -5.61%
Library 3,147,821$ 3,087,251$ 60,570$ 1.96%
Library sites 378,188$ 372,599$ 5,589$ 1.50%
Bond Funds 1,669,703$ 2,554,967$ (885,264)$ -34.65%
TOTAL TAX LEVY - CITY 25,888,905$ 26,348,093$ (459,188)$ -1.74%
School District 67- ESTIMATED 28,600,000$ 28,213,696 386,304$ 1.37%
The proposed tax levy for 2011 reflects a 1.74% decrease over the 2010 tax levy
extensions for the City and Library operating funds and City pension and debt service
funds. This decrease is in full compliance with the property tax cap limit of a 1.5%
increase plus new growth. Legislation allows for the exclusion of special recreation
($326,579) and a portion of the fire pension levy ($38,593) from the tax cap. The average
decrease to existing residents will be approximately 2.19% or $58 on a $757,000 home.
RECOMMENDED ACTION: Grant first reading of the ordinance establishing the Tax Levy for
2011 for The City of Lake Forest.
Alderman Palmer moved, seconded by Alderman Novit to grant first reading of the
ordinance establishing the Tax Levy for the 2011 for The City of Lake Forest. Motion
carried unanimously by voice vote.
78
Proceedings of the November 21, 2011
Regular City Council Meeting
5. Abating 2011 Tax Levies for Various G.O. Alternate Revenue Bond Issues (First Reading)
BACKGROUND/DISCUSSION: These ordinances provide for the abatement of 2011 taxes
levied for the various outstanding general obligation ALTERNATE REVENUE bond issues. The
tax levies for all bond issues are established and recorded with the County Clerk at the
time the bonds are issued. Therefore, in order to reduce the bond tax levies, an
abatement ordinance must be approved and filed with the County Clerk before
December 27, 2011.
The abatement of these general obligation (ALTERNATE REVENUE) bonds is possible due to
the fact these bond funds have an adequate revenue source from water sales, Cemetery
revenue, golf fees, sales tax or payments from the U.S. Treasury. Therefore, the general
obligation tax levy can be abated as was planned at the time the bonds were issued.
a) An Ordinance Abating the Total Tax Being Levied in 2011 for the
Annual Payment of the Principal and Interest on the 2002-A General
Obligation (Waterworks and Sewerage System) Bond Issue
($1,404,000.00)
b) An Ordinance Abating the Total Tax Being Levied in 2011 for the
Annual Payment of the Principal and Interest on the 2004-A General
Obligation (Golf Course) Bond Issue ($78,000.00)
c) An Ordinance Abating the Total Tax Being Levied in 2011 for the
Annual Payment of the Principal and Interest on the 2004-B General
Obligation (Storm Sewer) Bond Issue ($155,250.00)
d) An Ordinance Abating a Portion of the Tax Being Levied in 2011 for the
Annual Payment of the Principal and Interest on the 2010-B Taxable
General Obligation Bond Issue (Recovery Zone Economic
Development Bonds) ($77,625.00)
e) An Ordinance Abating a Portion of the Tax Being Levies in 2011 for the
Annual Payment of the Principal and Interest on the 2010-C Taxable
General Obligation Bond Issue (Build America Bonds – Direct Payment)
($90,759.00)
f) An Ordinance Abating a Portion of the Tax Being Levies in 2011 for
the Annual Payment of the Principal and Interest on the 2011-A
General Obligation Refunding Bond Issue ($516,262.50)
g) An Ordinance Abating a Portion of the Tax Being Levies in 2011 for
the Annual Payment of the Principal and Interest on the 2011-B
General Obligation Refunding Bond Issue ($827,300.00)
A summary of the proposed tax levy abatements are noted below:
79
Proceedings of the November 21, 2011
Regular City Council Meeting
Bond Issue
Original
Tax Levy
Tax
Abatement
Net Bond Tax
Levy
2002A G.O. Bonds (WATER) $1,404,000.00 $1,404,000.00 $0
2004A G.O. Bonds (GOLF) $78,000.00 $78,000.00 $0
2004B G.O. Bonds (STM SEWER) $155,250.00 $155,250.00 $0
2010-B Taxable G. O. Bonds $172,500.00 $77,625.00 $94,875
2010-C Taxable G.O. Bonds $259,311.00 $90,759.00 $168,552
2011-A G.O. Refunding Bonds $516,262.50 $516,262.50 $0
2011-B G.O. Refunding Bonds $827,300.00 $827,300.00 $0
TOTALS $3,412,623.50 $3,149,196.50 $263,427
Recommended Action: Grant First reading of the ordinances abating tax levies for
various general obligation bond issues.
Alderman Novit moved, seconded by Alderman Palmer to grant first reading of the
ordinance abating tax levies for the various general obligation bond issues. Motion
carried unanimously by voice vote.
6. Loan Forgiveness Request from Ragdale Association
Alderman Novit moved, seconded by Alderman Palmer to approve the loan forgiveness of
$100,000.00 total interest. The following voted “Aye” Aldermen Novit, Waldeck, Pandaleon,
Schoenheider, Palmer, and Adelman. “Nays” none. Motion carries.
7. Gorton Budget Presentation
Gorton Commission member, Michael Ley gave a power point presentation and summary of the
status of Gorton and its budget to City Council. Alderman Adelman encouraged residents to
utilize Gorton’s programs. Alderman Novit moved, seconded by Alderman Palmer to accept the
Gorton Budget. Motion carried unanimously by voice vote.
8. Consideration of Health Insurance Contract Renewals
Staff recommended retaining current health plan providers and changing preferred provider
network administration.
BACKGROUND/DISCUSSION: The City provides a self-funded medical and dental plan. The cost
of the City plan each year is determined by actual claims, fixed costs for administration,
reinsurance, and costs for life insurance.
Administration and billing services are currently provided by Professional Benefit Administrators
(PBA). Stop Loss coverage is placed with ING. Life coverage is placed with CIGNA. Preferred
Provider Network administration is provided through PHCS MultiPlan. Pharmacy card services are
provided by Serve You Rx.
A formal Request for Proposal process was completed in the fall of 2011 for all services, with the
specific objective of seeking bids for administration and insurance coverage, as well as
evaluating different managed care services including PPO networks and Pharmacy services.
Twenty-six (26) vendors and carriers were solicited.
Recommendations based on the bid results:
• Retain Professional Benefit Administrators (PBA) for administration and billing services
o PBA costs are among the lowest and service levels meet expectations
• Change preferred provider network administration to CIGNA, through PBA
o Estimated savings from managed care would increase by 4-5% of claim cost
80
Proceedings of the November 21, 2011
Regular City Council Meeting
Fee Type Payment Basis Total Rate
Base Fee Annual $1000
Employee Medical Monthly per Employee/Retiree $14.00
Employee Dental Monthly per Employee/Retiree $2.50
Medical Reimbursement
Account
Monthly per Employee/Retiree $5.00
Vision Discount Program Annual per Employee/Retiree $2.50
Utilization Review Liaison Fee Monthly per Employee/Retiree $1.50
CIGNA PPO and Utilization
Review Fee (paid to PBA)
Monthly per Employee/Retiree $15.25
CIGNA Large Case
Management Fee
Hourly $150
• Retain ING for stop loss coverage
o Covers paid claims estimated to be consistent with projections, and provide no
significant exclusions to normal contract terms
o Coverage is billed through PBA Billing Services
Premium Type/Liability
Estimate
Payment Basis Total Rate
Total Medical, Rx and Vision
Claim Liability
Monthly Liability Cap per
Employee/Retiree
$1,274.19
Aggregate Premium Monthly per Employee/Retiree $4.12
Specific Premium Monthly per Single Coverage $59.27
Specific Premium Monthly per Family Coverage $167.66
• Retain Excess Health/National Union Fire Insurance for Transplant Coverage, a component of
Stop Loss Coverage
o Transplant premiums reduce cost for Stop Loss Coverage
o Coverage is billed through PBA Billing Services
Premium Type Payment Basis Total Rate
Transplant Premium Monthly per
Employee/Retiree
$5.95
• Retain Serve You Rx for pharmacy card services
o Serve You Rx essentially matched the best offer received, with no coverage
limitations beyond our plan design
o Costs are billed as claim charge to the City Medical and Dental plan through PBA
Fee Type Payment Basis Total Rate
Dispensing Fee Per Retail Prescription $1.50
Retail Discount, Brand Per Retail Prescription 17%
Retail Discount, Generic Per Retail Prescription 17% or AWP less 66%-68%
Mail Discount, Brand Per Mail Prescription 24%
Mail Discount, Generic Per Mail Prescription 24% or AWP less 68%-71%
Specialty Medications
Discount
Per Specialty Medication
(retail or mail)
17%
Rebates Paid to City Per Brand Retail Prescription $12.00
Rebates Paid to City Per Brand Retail Prescription $43.00
81
Proceedings of the November 21, 2011
Regular City Council Meeting
Retain CIGNA for life insurance
o CIGNA matched the best rate with higher guarantee issue limits and a three year
rate guarantee
o The City pays CIGNA directly for Life Coverage
Premium Type Basis Total Rate
Employee Basic Life and
Accidental Death
Monthly rate per $1,000 of
coverage
$.16 per $1,000
The PCA Committee considered these recommendations on November 14 and moved to
approve the recommendations.
RECOMMENDED ACTION: Authorize the City Manager to execute contracts retaining Professional
Benefit Administrators (PBA) for administration and billing services, change preferred provider
network administration to CIGNA through PBA, retain ING for stop loss coverage, retain Excess
Health/National Union Fire Insurance for transplant coverage, a component of stop loss
coverage, retain Serve You Rx for pharmacy card services and retain CIGNA for life insurance.
Alderman Palmer moved, seconded by Alderman Pandaleon to Authorize the City Manager to
execute contracts retaining Professional Benefit Administrators (PBA) for administration and
billing services, change preferred provider network administration to CIGNA through PBA, retain
ING for stop loss coverage, retain Excess Health/National Union Fire Insurance for transplant
coverage, a component of stop loss coverage, retain Serve You Rx for pharmacy card services
and retain CIGNA for life insurance. The following voted “Aye” Aldermen Novit, Waldeck,
Pandaleon, Schoenheider, Palmer, and Adelman. “Nays” none. Motion carries.
B. Property and Public Lands Committee- Alderman Schoenheider
1. Rejection of a Request for Bid offering by Bay Tree Bank located at the east Lake Forest
Train Depot.
BACKGROUND/DISCUSSION: The Union Pacific owns the east Lake Forest train station. The City of
Lake Forest leases the train station and sub-leases the interior space to provide services to
residents and commuters.
In 2008 Northern Trust made a business decision to remove the interior banking operation leasing
approximately 2,800 sq. ft. of interior space in the depot and in summer 2011, removed the
exterior ATM machine.
As businesses have closed within the depot, staff has held off from seeking new tenants as the
lease between the Union Pacific needed negotiating and in receiving the ITEP grant for exterior
renovations staff was unaware of any potential business impact.
As the exterior renovations are underway and the lease between the City and Union Pacific has
been finalized, on August 29, 2011 staff released a request for bid offering to sub-lease the
space in the Union Pacific train station and the exterior ATM to another financial institution.
On September 29, 2011the City received one bid from Bay Tree bank identifying two options:
1. Operate the outdoor ATM for $12,000 a year; or
2. Operate a drive-thru only facility out of the station with two lanes one ATM and one
pneumatic teller for $10,000 per year.
82
Proceedings of the November 21, 2011
Regular City Council Meeting
On November 14, 2011 the Property and Public Land Committee recommended to reject the
bid from Bay Tree bank and solicit a request for interest to incorporate all empty locations within
the train station and potentially identify other uses for the train station.
RECOMMENDED ACTION: Staff requested the City Council to reject the bid proposal from Bay
Tree Bank.
Alderman Pandaleon moved, seconded by Alderman Novit to reject the bid proposal from Bay
Tree Bank. Motion carried unanimously by voice vote.
4. Comments by Council Members
Alderman Adelman wanted residents to know that the golf pro at Deerpath Golf Course,
Richard Franklin, has installed a software program that analyzes golf swings. Thought residents
would like to know for something to do during the winter months to prepare for spring golf.
Tree Lighting will be taking place the Friday after Thanksgiving in Market Square.
OPPORTUNITY FOR PUBLIC TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
No one stood before Council.
CONSENT AGENDA
1. Approval of Code Amendment, Chapter 27-Park and Recreation Board
PURPOSE AND ACTION REQUESTED: Staff requested Council approval of an ordinance amending
Chapter 27 of the City Code regarding the Park and Recreation Board terms and duties.
BACKGROUND/DISCUSSION: As initially presented at the October 17, 2011 City Council meeting
the Park and Recreation Board Section 27 of the City Code did not reflect current practices and
could benefit from revising the term recital portion of the ordinance. City Council approved the
reduction of terms from 5 years to 2 years at the October 17, 2011 meeting but requested that
the description of Park and Recreation Board duties receive an expanded clarification.
Section 27-16 entitled “Powers and Duties” has been expanded to clearly identify the Park
Board’s liaison and advisory role with respect to delivery of all park, forestry and recreation
services and their role with policy development, implementation of the budget and oversight of
the program plan.
RECOMMENDED ACTION: Staff requested waive first reading and grant final approval to amend
Chapter 27 of the City Code regarding the Park and Recreation Board terms and duties.
Alderman Novit moved, seconded by Alderman Palmer to waive first reading to amend
Chapter 27 of the City Code regarding the Park and Recreation Board terms and duties.
Motion carried unanimously by voice vote.
Alderman Pandaleon moved, seconded by Alderman Palmer to grant final approval to amend
Chapter 27 of the City Code regarding the Park and Recreation Board terms and duties. The
following voted “Aye” Aldermen Novit, Waldeck, Pandaleon, Schoenheider, Palmer, and
Adelman. “Nays” none. Motion carries.
83
Proceedings of the November 21, 2011
Regular City Council Meeting
2. Approval of the Minutes from the November 7, 2011 Regular City Council Meeting
Alderman Schoenheider moved, seconded by Alderman Palmer to approve the minutes from
the November 7, 2011 regular City Council meeting. Motion carried unanimously by voice vote.
ORDINANCES
1. Consideration of an Ordinance Amending the Historic District Boundaries as
Established by Chapter 51 “Historic Preservation”, of the City Code of Lake Forest to
Remove Old Main, Located on a Portion of Barat Campus, from the District.(First
Reading, and if desired by the City Council, Final Approval)
At the November 7, 2011 City Council meeting, the City Council considered a recommendation
from the Historic Preservation Commission in response to a request from Woodlands Academy to
remove Old Main and the associated property from the City’s original historic district. After a
presentation, Council questions and discussion, and public testimony, the Council directed staff,
in consultation with the City Attorney and two members of the City Council, to prepare an
ordinance for Council consideration as a first step in amending the historic district as requested
by Woodlands Academy.
Consistent with the Council’s direction, the ordinance takes the first step toward the ultimate de-
designation of Old Main. This first step establishes the justification for the de-designation under
the City's Historic Preservation Ordinance, but the effectiveness of the ordinance is conditioned
upon the subsequent approval of a Special Use Permit incorporating the Barat property into the
Woodlands Academy Campus. Although the terms of the Special Use Permit are not prescribed
in the de-designation ordinance out of respect of the Plan Commission's review process, the de-
designation ordinance states that it will not be effective until the City Council approves a
Special Use Permit which must: (a) incorporate the entire 23-acre Barat Campus into the
Woodlands Academy Campus; (b) contain terms and conditions acceptable to the City
Council and agreed upon by Woodlands Academy; and (c) is approved within 12 months. If
the conditions of the de-designation ordinance are not met, no map amendment will occur
and Old Main will remain in the historic district.
If the City Council approves the de-designation ordinance, the next step of the process will be
consideration of a request for a Special Use Permit by the Plan Commission to authorize the
expansion of the Woodlands Academy Campus to include the entire Barat Campus. The Plan
Commission will be advised of the staff's recommendations, based on discussions to date, for
redevelopment parameters and limitations for the enlarged Woodlands campus (as initially set
forth in the staff report to the Historic Preservation Commission), as well as the City Council's
concerns for the preservation of the front lawn area, assuring education-related use of the
campus, ravine protection measures, and establishing a time frame for the removal of Old Main
if all required approvals are obtained. Ultimately, the recommendation of the Plan Commission
will come back to the City Council for consideration and action. Only if that action is favorable
and expressly provides for the de-designation will an approval of the de-designation ordinance
have full force and effect.
RECOMMENDED ACTION: In light of the City Council's extensive discussion during its November
7, 2011 meeting and the future action that will be required to effectuate a de-designation of the
"Old Main Area" from the City's 1857 Historic District, staff recommends that the City Council
waive first reading of the de-designation ordinance, and if desired, grant final approval.
84
Proceedings of the November 21, 2011
Regular City Council Meeting
Discussion was held with City Attorney regarding the special use permit that will be associated
with this project. Alderman Novit requested some clarification of the ordinance pertaining to
the time line that was established.
Resident Pauline Moore 2000 Knollwood Rd stood before Council to give her opinion regarding
the proposed ordinance.
Alderman Adelman moved, seconded by Alderman Waldeck to waive first reading of the
Ordinance amending the Historic District Boundaries as Established by Chapter 51 “Historic
Preservation”, of the City Code of Lake Forest to Remove Old Main, Located on a Portion of
Barat Campus, from the District. Motion carried unanimously by voice vote.
Alderman Palmer moved, seconded by Alderman Waldeck to approve the de-designation
ordinance amending the Historic District Boundaries as Established by Chapter 51 “Historic
Preservation”, of the City Code of Lake Forest to Remove Old Main, Located on a Portion of
Barat Campus, from the District. The following voted “Aye” Aldermen Novit, Waldeck,
Pandaleon, Schoenheider, Palmer, and Adelman. “Nays” none. Motion carries.
NEW BUSINESS
1. Resolution Approving Public Comment Rules
City Attorney, Vic Filippini reported to Council on the recent changes in the Open Meetings Act,
the City is required to provide public comment at all meetings of its public bodies. Although
the City has traditionally provided for public comment, in order to ensure compliance with this
new legal requirement, it is recommended that the City adopt the formal public comment rules
to codify its practices. These rules will provide the baseline for public comment opportunities for
the City Council as well as all other public bodies within the City. The Rules also provide an
opportunity to for comment to other City officials outside the scope of a public meeting.
RECOMMENDED ACTION; Approve the Resolution as presented.
Alderman Palmer moved, seconded by Alderman Schoenheider to approve the Resolution
approving Public Comment Rules. Motion carried unanimously by voice vote.
ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
None
ADJOURNMENT
There being no further business, Alderman Palmer moved, seconded by Alderman Pandaleon to
adjourn the meeting at 9:53 p.m. The motion carried unanimously by voice vote.
Cathryn H. Buerger
Deputy City Clerk
85
THE CITY OF LAKE FOREST
ORDINANCE NO. 2011-____
AN ORDINANCE AMENDING ARTICLE XI OF CHAPTER 39 OF THE
CITY CODE RELATING TO THE REAL ESTATE TRANSFER TAX
Adopted by the
Mayor and City Council
of
The City of Lake Forest
this ___ day of __________, 2011
Published in pamphlet form by direction
and authority of The City of Lake Forest,
Lake County, Illinois
this ___ day of __________, 2011
86
THE CITY OF LAKE FOREST
ORDINANCE NO. 2011-____
AN ORDINANCE AMENDING ARTICLE XI OF CHAPTER 39 OF THE
CITY CODE RELATING TO THE REAL ESTATE TRANSFER TAX
WHEREAS, The City of Lake Forest is a special charter, Home Rule municipal
corporation operating and existing under the Illinois Constitution; and
WHEREAS, on March 21, 2006, the voters approved a referendum authorizing the
establishment of a real estate transfer tax ("RETT") in an amount not to exceed $4.00 per
$1,000.00 of real estate transferred for use on infrastructure improvements; and
WHEREAS, in light of the referendum results, the Mayor and City Council have
previously established a RETT by adopting Ordinance No. 2006-18, which ordinance has been
amended from time-to-time; and
WHEREAS, Ordinance No. 2006-18, as amended, provided full exemptions from the
RETT for certain exempt transactions; and
WHEREAS, it has become common practice in foreclosure actions for mortgage holders
to take title to property in the name of a wholly owned subsidiary rather than their own names,
but the language of the Code does not specifically address such transactions; and
WHEREAS, the Mayor and City Council have determined that it is in the best interests of
the City and its residents to amend certain provisions of the RETT as hereinafter set forth;
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF LAKE FOREST, COUNTY OF LAKE, STATE OF ILLINOIS, as follows:
SECTION ONE. Recitals. The foregoing recitals are hereby adopted by this reference
as the findings of the City Council and are hereby incorporated into this Section as if fully set
forth.
87
SECTION TWO. Amendment of Section 39-93. Subsection M of Section 39-96,
entitled "Deed Exempted from Tax," of Article XI, entitled "Real Estate Transfer Tax," of Chapter
39, entitled "Taxation," is hereby amended in the following respects:
(M) Deeds issued to holder of a mortgage, or the wholly owned subsidiary
of a holder of a mortgage, as defined in Section 15-103 of the Code of Civil
Procedure, pursuant to a mortgage foreclosure proceeding or pursuant to a
transfer in lieu of foreclosure; and
SECTION THREE: Filing with the Lake County Recorder. The City Clerk is hereby
authorized and directed to file with the Lake County Recorder of Deeds a certified copy of this
Ordinance.
SECTION FOUR: Effective Date. This Ordinance shall be in full force and effect from
and after its passage, approval, and publication in pamphlet form in the manner provided by
law.
PASSED THIS ____ DAY OF ________, 2011.
AYES:
NAYS:
ABSENT:
APPROVED THIS _____ DAY OF _______________, 2011.
_________________________
Mayor
ATTEST:
_________________________
City Clerk
88
Quandel Consultants, LLC
Engineering Services
203 North LaSalle Street, Suite 2100
Chicago, IL 60601
(312) 558-1345
Fax: (312) 346-9603
E-Mail: cquandel@quandelconsultants.com
www.quandel.com
A Quandel Enterprises Company
Additional Office Locations in Harrisburg, Minersville, Scranton & Reading, PA – Columbus & Cincinnati, OH
January 26, 2010
Mr. Robert Kiely
City Manager
The City of Lake Forest
220 East Deerpath
Lake Forest, Illinois 60045
Re: Proposal for Project Development and
Conceptual Engineering
City of Lake Forest
Amtrak Hiawatha Service
Dear Mr. Kiely
Quandel Consultants, LLC is pleased to submit to the City of Lake Forest a proposal for the project
development and conceptual engineering for the City of Lake Forest relative to future Amtrak Hiawatha
service. The following documents are attached for your review:
Scope of Services dated January 26, 2010
Appendix A to the Scope
Schedule of Costs for Base Proposal
Schedule of Costs for Alternative 1 – Adder
The project development and conceptual engineering as presented in the scope of services will be
completed within six months of your Notice to Proceed.
Please note that effective February 1, 2010, our new office address will be:
161 N Clark St
Suite 2060
Chicago, IL 60601
Main Telephone Number: 312-634-6200
Direct Dial – Charlie Quandel 312-634-6201
Thank you for the opportunity to submit this proposal to you. If you have any questions or remarks
concerning this proposal, please contact me at your convenience.
Respectfully submitted,
Quandel Consultants, LLC
Charles H Quandel, P.E.
89
Quandel Consultants, LLC
Engineering Services
203 North LaSalle Street, Suite 2100
Chicago, IL 60601
(312) 558-1345
Fax: (312) 346-9603
E-Mail: cquandel@quandelconsultants.com
www.quandel.com
A Quandel Enterprises Company
Additional Office Locations in Harrisburg, Minersville, Scranton & Reading, PA – Columbus & Cincinnati, OH
Scope of Services
January 26, 2010
Project Development and Conceptual Engineering for
City of Lake Forest Amtrak Station
Purpose
The purpose of this study is to undertake project development and conceptual engineering for a proposed intermodal
station located at the existing Lake Forest station served by Amtrak. Currently, the Amtrak Hiawatha service operates
seven (7) round trips between Chicago and Milwaukee without stopping at the Lake Forest Station located at Everett Rd.
and Waukegan Rd, and currently is used as a stop on Metra’s Milwaukee District North (MD-N) line.
This study analyzes the impact of the new Amtrak stop on existing Metra MD-N rail traffic, and performs conceptual
engineering for rail infrastructure, the Lake Forest station, and the surrounding area. Conceptual engineering design
develops improvements to a 5% completion level.
The proposed Amtrak Hiawatha service at Lake Forest is analyzed in this project considering two service alternatives.
These alternatives are: 1) all seven Amtrak Hiawatha trains stopping at the Lake Forest Station, and 2) four of seven
Amtrak Hiawatha trains stopping at the Lake Forest Station. Since Phase 1 of the Midwest Regional Rail Initiative
increases the Amtrak Hiawatha service to ten (10) round trips, a third alternative, at the City’s option, will be analyzed with
ten trains stopping at the Lake Forest Station.
Task 1 - Project Management
The purpose of this task is to coordinate between parties that have an interest in establishing Amtrak Hiawatha service to
the Lake Forest Station. As part of this task, the Consultant shall:
Organize and attend meetings with the City of Lake Forest to refine study goals and understanding, review
progress, and receive input
Organize and attend meetings with Amtrak, Metra, IDOT, or other agencies to coordinate efforts with other
projects that could impact the development of a Lake Forest Amtrak stop
Prepare a Project Management Plan
The Consultant shall schedule and attend up to four meetings with the City or other agencies, and will provide meeting
agendas and records for all meetings.
Task 1 Deliverables
Meeting Agendas and Meeting Minutes
Project Management Plan
Task 2 - Rail Operations Analysis
The purpose of this task is to use stringline analysis to assess the impact that a new Lake Forest Amtrak stop would have
on existing rail traffic. A stringline diagram is a plot of the rail traffic in a corridor on a time-space diagram, and shows
where scheduled trains are located in the corridor at a particular point in time. In order to investigate conflicts that the new
Amtrak stop may impose on existing Metra schedules, the Consultant shall perform a stringline analysis using the baseline
scenario and the proposed service alternatives. The third service alternative will also be analyzed at the City’s option. The
Consultant will collect existing Amtrak schedules, Metra schedules, and Canadian Pacific freight movements in the MD-N
90
Quandel Consultants, LLC
Engineering Services
Page 2
and Chicago-Milwaukee Corridor. The Consultant will develop stringline diagrams that present the impacts of the service
alternatives. Conflicts shall be analyzed and possible Amtrak schedule changes will be developed to accommodate the
new stop. The Consultant will develop new stringline diagrams that show the recommended schedule changes. The
Consultant will identify conceptual engineering improvements along track rights-of-way in the Chicago-Milwaukee corridor
that mitigate any adverse impacts the new stop may have, or that may be required to accommodate the recommended
schedule change.
Stringline diagrams and analysis, and a description of the improvements and estimated capital costs will be included in a
technical report. The locations of improvements will be shown on track schematic diagrams.
Task 2 Deliverables
Technical Report – Rail Operations Analysis
Task 3 - Ridership Forecasts
The Consultant shall prepare ridership forecasts for the City using AECOM as a subconsultant. AECOM’s scope
agreement with the Consultant is included as Appendix A.
Task 4 – Lake Forest Station Conceptual Engineering
The results of the Rail Operations Analysis and the Ridership Forecasts in Tasks 2 and 3 shall identify the need for
improvements to the station and the surrounding area. Additional changes are also needed to increase commuter safety
in the area surrounding the station. These improvements and upgrades are analyzed in Task 4 as part of conceptual
engineering.
4.1 Traffic and Parking Analysis
The results of the ridership model will show changes in the number of commuters and vehicles accessing the station,
station parking lots, and surrounding streets. The Consultant shall perform an analysis of the impact of new
commuters at the station and surrounding roadway network for each of the alternatives. Everett Rd, Telegraph Rd,
Waukegan Rd, existing parking lots, and existing Pace bus facilities shall be assessed for the ability to accommodate
increases in traffic and provide efficient and safe vehicle and pedestrian movement. The City will provide existing
vehicle and traffic data around the station, including ADT’s and parking lot usage data. The Consultant shall also
identify the need for further studies, such as arterial or parking capacity analysis, intersection studies, or signal
warrants.
4.2 Station Analysis
The Consultant will evaluate the ability of the existing station (depot) and the station platform to accommodate new
ridership, and meet Amtrak design standards for criteria such as platform dimensions, ticketing, waiting areas, or
system communications. Details of this analysis will be discussed in a technical report.
4.3 Analysis of Safety Improvements
The Consultant shall identify opportunities to increase the safety of vehicles and pedestrians at the area surrounding
the station. Potential opportunities may include grade separation of the Metra track from pedestrian or vehicle
crossings, pedestrian overpasses, fencing, or other improvements. The Consultant shall investigate best practices,
previous studies, and federal guidelines for improving safety at commuter rail stations. These improvements shall be
detailed in a technical report and shown on concept engineering drawings.
4.4 Conceptual Plans and Cost Estimates 91
Quandel Consultants, LLC
Engineering Services
Page 3
Based on the analysis done in Tasks 4.1, 4.2, and 4.3, the Consultant shall prepare conceptual engineering plans for
the station and surrounding area. Plans will identify potential rights-of-way acquisition, station area expansion needs,
additional capacity needs along Waukegan Rd, Telegraph Rd, and Everett Rd, and potential safety improvements.
The City of Lake Forest will provide the Consultant with land parcel data in CADD format (.dgn or .dwg), and base
mapping or aerial photography to be used for developing the concept plans. The Consultant will produce plans at a
50’:1” scale. The Consultant shall develop concept level capital cost estimates associated with the conceptual
engineering improvements.
4.5 Technical Report – Lake Forest Amtrak Station Concept Report
The Consultant shall prepare a technical report that includes the operations analysis, results of the ridership forecasts,
conceptual engineering improvement plans, and a concept capital cost estimate. The report will summarize the
findings of the study, and recommend the next steps needed for the development of the Lake Forest Station needed for
the Amtrak Hiawatha service.
Task 4 Deliverables
Technical Report – Lake Forest Amtrak Station Conceptual Report
92
APPENDIX A
AECOM SCOPE OF WORK
Task 3 - Lake Forest Station Ridership Forecasting
Scope of Work
AECOM will prepare intercity passenger rail ridership forecasts for proposed service
alternatives that add a stop at Lake Forest, IL on the Hiawatha (Chicago-Milwaukee)
route. A maximum of 3 such alternatives will be addressed in addition to baseline (no
intercity service at Lake Forest) service. The alternatives will include:
Four Hiawatha trains stopping at Lake Forest (and 3 not stopping)
All seven existing Hiawatha trains stopping at Lake Forest
With future Phase 1 MWRRI development, all 10 trains stopping at Lake Forest
The third alternative would be addressed as an optional task and would also require the
analysis of a future baseline 10 train scenario not serving Lake Forest, for comparison.
These optional analyses would also consider improved highway access to/from I-94 and
the impact of improved MWRRI service to additional markets beyond the Chicago-
Milwaukee segment that offered by Phase 1 MWRRI development (e.g., direct service
extensions to Madison and other points beyond Milwaukee as well connections in
Chicago to improved services to/from St. Louis and Detroit). AECOM will use the travel
demand model approach it has developed and applied to many states and Amtrak. Using
currently available sources, three sets of data inputs will be assembled, including:
Travel market data (from MWRRI, state, and local sources as may be available)
Socio-economic data and forecasts (official population, employment, etc. by area
from local, state, and national sources, as needed)
Service characteristics by mode (highway network data, published timetables,
cost and fare data, etc.)
Once all the new inputs and data have been assembled and loaded into the model,
AECOM will first validate the model against existing baseline conditions. AECOM will
then apply the model to each of the proposed alternatives and produce ridership forecasts.
Schedule
AECOM proposes the following schedule for completing the above:
Assemble data and validate model to Baseline conditions
o within 4-6 weeks of notice to proceed
Prepare draft forecasts for all Baseline and Proposed alternatives
o within 7-9 weeks of notice to proceed
93
Prepare final forecasts and documentation
o within 9-11 weeks of notice to proceed
94
Quandel Consultants, LLC
Lake Forest Proposal 1/26/2010
Base Proposal
Project 906 Principal Proj Mgr Op. Eng Sr Eng Proj Eng Clerical Total Expenses
Task Description 120$ 100$ 100$ 43$ 35$ 20$
1 Project Management
1.1 Meeting with Lake Forest (6)48 24
1.2 Meetings with CP (1)0 0
1.3 Meeting with Amtrak, Metra (2)0 0
1.4 Preparation of PMP 2 8 4
1.5 Quality control 2
Subtotal Hours Task 1 PM 2 50 0 0 32 4 88
Subtotal Labor Task 1 PM 240$ 5,000$ -$ -$ 1,120$ 80$ 6,440$
2 Rail Operations Analysis
2.1 Prepare Stringlines 4 8 20
2.2 Modify to depict add stops 4 8 20
2.3 Analyze impacts and mitigate 4 8 20
2.4 Review Results w/stakeholders 24 16
2.5 Prepare Report 4 8 2
2.6 Quality Control 2
Subtotal Hours Task 2 2 40 24 0 84 2 152
Subtotal Labor Task 2 240$ 4,000$ 2,400$ -$ 2,940$ 40$ 9,620$
3 Ridership Forecasts 35,000$
4 Conceptual Engineering
4.1 Traffic and Parking Analysis 6 8 72
4.2 Station Analysis 4 0 14 40
4.3 Analysis of Safety Improvement 8 6 32
4.4 Conceptual Plans/Cost Estimates 4 6 8 84
4.5 Technical Report 4 16 40 0 8
Subtotal Hours Task 4 4 38 6 76 228 8 360
Subtotal Labor Task 4 480$ 3,800$ 600$ 3,268$ 7,980$ 160$ 16,288$
Total Labor 32,348.00$
Overhead @ 115%37,200.20$
Labor and Overhead 69,548.20$
Fee@ 15%10,432.23$
Labor, Overhead, and Fee 79,980.43$
Sub consultant 35,000.00$
Expenses 1,068.40$
Total Contract Base Amount 116,048.83$
Expenses Unit Unit Cost Total
Mileage 300 0.50$ 150.00$
B/W copies 500 0.14$ 70.00$
Color Copies 500 1.55$ 775.00$
B/W Plots 50 0.58$ 29.00$
Postage 10 0.44$ 4.40$
Overnight 2 20.00$ 40.00$
Total Expenses 1,068.40$
95
Quandel Consultants, LLC
Lake Forest Proposal 1/26/2010
Alternative for 10 trains - addition to Base Contract
Project 906 Principal Proj Mgr Op. Eng Sr Eng Proj Eng Clerical Total Expenses
Task Description 120$ 100$ 100$ 43$ 35$ 20$
1 Project Management
1.1 Meeting with Lake Forest (6)
1.2 Meetings with CP (1)
1.3 Meeting with Amtrak, Metra (2)
1.4 Preparation of PMP
1.5 Quality control
Subtotal Hours Task 1 PM 0 0 0 0 0 0 0
Subtotal Labor Task 1 PM -$ -$ -$ -$ -$ -$ -$
2 Rail Operations Analysis
2.1 Prepare Stringlines 2 4 10
2.2 Modify to depict add stops 2 4 10
2.3 Analyze impacts and mitigate 2 4 10
2.4 Review Results w/stakeholders 8 8
2.5 Prepare Report 2 2 1
2.6 Quality Control 1
Subtotal Hours Task 2 1 16 12 0 40 1 70
Subtotal Labor Task 2 120$ 1,600$ 1,200$ -$ 1,400$ 20$ 4,340$
3 Ridership Forecasts 15,000$
4 Conceptual Engineering
4.1 Traffic and Parking Analysis
4.2 Station Analysis
4.3 Analysis of Safety Improvement
4.4 Conceptual Plans/Cost Estimates
4.5 Technical Report
Subtotal Hours Task 4 0 0 0 0 0 0 0
Subtotal Labor Task 4 -$ -$ -$ -$ -$ -$ -$
Total Labor 4,340.00$
Overhead @ 115%4,991.00$
Labor and Overhead 9,331.00$
Fee@ 15%1,399.65$
Labor, Overhead, and Fee 10,730.65$
Sub consultant 15,000.00$
Expenses 198.58$
Total Alternative 1 Add 25,929.23$
Expenses Unit Unit Cost Total
Mileage 0 0.50$ -$
B/W copies 100 0.14$ 14.00$
Color Copies 100 1.55$ 155.00$
B/W Plots 15 0.58$ 8.70$
Postage 2 0.44$ 0.88$
Overnight 1 20.00$ 20.00$
Total Expenses 198.58$
96
Quandel Consultants, LLC
Engineering Services
161 North LaSalle Street, Suite 2060
Chicago, IL 60601
(312) 634-6201
Fax: (312)
E-Mail: cquandel@quandelconsultants.com
www.quandel.com
A Quandel Enterprises Company
Additional Office Locations in Harrisburg, Minersville, Scranton & Reading, PA – Columbus & Cincinnati, OH
October 20, 2011
Mr. Robert R. Kiely
City Manager
The City of Lake Forest
220 East Deerpath
Lake Forest, Illinois 60045
Re: Project Development and
Conceptual Engineering
City of Lake Forest
Amtrak Hiawatha Service
Dear Mr. Kiely:
The intent of this letter is to set forth recommendations associated the project development and
conceptual engineering for the City of Lake Forest proposed Amtrak Hiawatha Service.
Quandel Consultants, LLC has completed Phase 1 in accordance with your letter dated March 18, 2010
announcing the award for a Professional Services Agreement with our firm for Project Development and
Conceptual Engineering associated with a potential Amtrak Hiawatha service stop in Lake Forest in an
amount not to exceed $116,048.83. Your letter provided authorization to undertake project
management and ridership studies for a cost not to exceed $40,662.00.
The Phase 1 project management activities included oversight of AECOM’s services associated with the
ridership forecast and professional services to coordinate tasks and attend meetings with Amtrak, Metra,
and IDOT associated with the pedestrian grade separation required by Amtrak as a prerequisite for a
stop in Lake Forest.
Phase 2 included project management and rail operations analysis employing stringline diagrams to evaluate
service alternatives. The original Phase 2 budget was $29,447.00. Based on recent progress including the
planned implementation of the pedestrian underpass and developments with Metra and Amtrak, we
propose to modify the Phase 2 program to implement four tasks as follows:
1. Data collection to understand Amtrak and Metra operations and opportunities for modification,
employing stringlines or recent capacity analysis data;
2. Analysis of operation data to identify possible changes;
3. Discussions among stakeholders to explore opportunities for change; and
4. Development of agreements for schedule and operation changes.
We recommend that the City of Lake Forest proceed immediately with the Phase 2 scope at a revised cost
not to exceed $40,000.00.
97
Quandel Consultants, LLC
Engineering Services
161 North LaSalle Street, Suite 2060
Chicago, IL 60601
(312) 634-6201
Fax: (312)
E-Mail: cquandel@quandelconsultants.com
www.quandel.com
A Quandel Enterprises Company
Additional Office Locations in Harrisburg, Minersville, Scranton & Reading, PA – Columbus & Cincinnati, OH
Page 2 of 2
The original scope of Phase 3 included traffic and parking analysis, station analysis, and an analysis of safety
improvements at the Lake Forest Station.
As you are aware, Amtrak has stated emphatically that a prerequisite for a station stop in the City of Lake
Forest is a pedestrian underpass. In order to expedite the engineering design and construction of this
pedestrian underpass, we recommend that Phase 3 activities should be modified in order to provide
engineering support services for the Pedestrian Underpass Program with the following tasks:
1. Assistance with engineering and construction agreements
2. Project Scope Preparation and RFQ Evaluation
3. Engineer selection
4. Stakeholder Coordination Meetings
We further recommend that the City of Lake Forest proceed immediately with Phase 3 at a revised cost not
to exceed of $23,500.00.
The total upset limit of the cost not to exceed in the March 18, 2010 letter will be $104,162.00, a reduction
of $11,886.00.
Thank you for the opportunity to submit this information to you. If you have any questions or remarks
concerning this proposal, please contact me at your convenience.
Respectfully submitted,
Quandel Consultants, LLC
Charles H Quandel, P.E.
98