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HomeMy WebLinkAboutu - November 6, 2019 CC468 NOVEMBER 6, 2019 VOLUME LXXXIV COUNCIL OF THE CITY OF ELGIN, ILLINOIS COUNCIL-MANAGER FORM OF GOVERNMENT REGULAR MEETING The regular meeting of the Council of the City of Elgin, Illinois, was held on November 6, 2019, in the Council Chambers. The meeting was called to order by Mayor Kaptain at 7:00 p.m. The Invocation was given by Pastor Carol Book, Bethlehem Church and the Pledge of Allegiance was led by Jennifer Phillips, 311 Citizen Services Manager. ROLL CALL Roll call was answered by Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Absent: None. MINUTES OF THE OCTOBER 23, 2019, COUNCIL MEETING APPROVED AS DISTRIBUTED Councilmember Shaw made a motion, seconded by Councilmember Martinez, to approve the October 23, 2019, Council Meeting Minutes as distributed. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. COMMUNICATIONS Veterans Day Proclamation Mayor Kaptain read the following proclamation: PROCLAMATION WHEREAS, the citizens of our country are justly proud of the men and women who have fought to defend the principles of liberty and freedom on which our nation was founded and our veterans reflect the preeminent qualities of patriotism and courage in all of us and continue to make countless contributions to military and civilian life; and WHEREAS, from the Revolutionary-era militias through today's sophisticated defense structure, American service members have defended our country in times of challenge, brought honor to the United States and created a solid foundation for its continued security, growth and prosperity; and VOLUME LXXXIV NOVEMBER 6, 2019 469 WHEREAS, despite the tremendous perils and pressures of wartime, our Armed Forces have bravely defended the country and the citizens of the United States will forever owe an immense debt of gratitude to our veterans for the sacrifices they have made to secure the safety of our country; and WHEREAS, as an expression of that gratitude, President Dwight D. Eisenhower signed into law an act calling for the observance of Veterans Day in remembrance of the end of World War I, and as a perpetual reminder of the blessings of peace; and WHEREAS, many men and women from the Illinois National Guard are serving in various areas in the Middle East along with many other Elgin residents serving in the United States Army, Air Force, Navy, Marines and Coast Guard and we honor the contributions and accomplishments of all our veterans. NOW THEREFORE, I, David Kaptain, Mayor of the City of Elgin, am proud to proclaim Tuesday, November 11, 2019 as Veterans Day in the City of Elgin and urge the American Flag to be displayed on our public buildings and homes and that the citizens of Elgin attend the ceremony to be held at Veterans Park located north of the Gail Borden Library on the 11th of November 2019 at 11:00 am. IN WITNESS WHEREOF, I have hereunto set my hand this 6th day of November, 2019. David Kaptain Mayor RECOGNIZE PERSONS PRESENT Krisilee Murphy, Executive Director for Elgin Area Convention & Visitors Bureau, announced the Bureau received a $30,000 state grant. She thanked the city council for their continued support. Vaughn Kursner, Waste Management, thanked the city for their continuing partnership. BID 19-051 AWARDED TO TRICO MECHANICAL, INC. FOR FURNACE AND AIR CONDITIONING REPLACEMENT Councilmember Shaw made a motion, seconded by Councilmember Gavin, to approve a contract with Trico Mechanical, Inc. in the amount of $312,730 to replace sixteen furnace and air conditioning units that have reached the end of their useful life. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. NOVEMBER 6, 2019 VOLUME LXXXIV 470 US COMMUNITIES JOINT PURCHASING COOPERATIVE APPROVED WITH KONE ELEVATOR FOR ELEVATOR UPGRADES Councilmember Gavin made a motion, seconded by Councilmember Martinez, to approve a contract with Kone Elevator in the amount of $30,255 to upgrade elevators to provide safer and more dependable operation. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. US COMMUNITIES JOINT PURCHASING COOPERATIVE AGREEMENT APPROVED WITH TRANE FOR THE LEO NELSON RIVERSIDE WATER TREATMENT PLANT CHILLER PURCHASE Councilmember Steffen made a motion, seconded by Councilmember Martinez, to approve a contract with Trane in the amount of $27,601 to purchase a new chiller to support the lab at the Leo Nelson Riverside Water Treatment Plant. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. JOB ORDER CONTRACT APPROVED WITH F. H. PASCHEN FOR LEO NELSON RIVERSIDE WATER TREATMENT PLANT CHILLER INSTALLATION Councilmember Shaw made a motion, seconded by Councilmember Steffen, to approve a contract with F. H. Paschen in the amount of $169,988 to install a new chiller to support the lab at the Leo Nelson Riverside Water Treatment Plant. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. RESOLUTION 19-155 ADOPTED REPEALING RESOLUTION NO. 19-150 REGARDING AN AGREEMENT WITH MC SQUARED ENERGY SUPPLY, LLC AND RATIFYING THE EXECUTION OF AN AGREEMENT WITH MC SQUARED ENERGY SUPPLY, LLC, TO PROVIDE RETAIL ELECTRIC SERVICE TO THE CITY OF ELGIN AND ITS MUNICIPAL FACILITIES There was discussion regarding green energy, wholesale energy and the costs associated with each type. Also discussed was the way green energy credits were applied. Councilmember Steffen made a motion, seconded by Councilmember Shaw, to adopt the following resolution. Upon a roll call vote: Yeas: Councilmembers Dixon, Lopez, Martinez, Powell, Rauschenberger, Steffen, and Mayor Kaptain. Nays: Councilmembers Gavin and Shaw. VOLUME LXXXIV NOVEMBER 6, 2019 471 Resolution No. 19-155 RESOLUTION REPEALING RESOLUTION NO. 19-150 REGARDING AN AGREEMENT WITH MC SQUARED ENERGY SUPPLY, LLC AND RATIFYING THE EXECUTION OF AN AGREEMENT WITH MC SQUARED ENERGY SUPPLY, LLC, TO PROVIDE RETAIL ELECTRIC SERVICE TO THE CITY OF ELGIN AND ITS MUNICIPAL FACILITIES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Resolution No. 19-150 adopted on October 23, 2019, providing for the execution of an agreement with MC Squared Energy Supply, LLC, be and is hereby repealed. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that pursuant to Elgin Municipal Code Section 5.02.020B9 the City Council hereby finds that an exception to the requirements of the procurement ordinance is necessary and in the best interests of the city; and BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that it hereby ratifies and approves the execution of an Agreement on behalf of the City of Elgin by Richard G. Kozal, City Manager and Kimberly A. Dewis, City Clerk, with MC Squared Energy Supply, LLC, to provide retail electric service to the City of Elgin and its municipal facilities, a copy of which is attached hereto and made a part hereof by reference. s/ David J. Kaptain David J. Kaptain, Mayor Presented: November 6, 2019 Adopted: November 6, 2019 Vote: Yeas: 7 Nays: 2 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk RESOLUTION 19-156 ADOPTED AUTHORIZING THE PROPOSAL OF BLUE CROSS BLUE SHIELD OF ILLINOIS FOR THE CITY OF ELGIN’S HMO AND PPO MEDICAL INSURANCE PROGRAM AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATED THERETO Councilmember Gavin made a motion, seconded by Councilmember Martinez, to adopt the following resolution. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. NOVEMBER 6, 2019 VOLUME LXXXIV 472 Resolution No. 19-156 RESOLUTION AUTHORIZING THE PROPOSAL OF BLUE CROSS BLUE SHIELD OF ILLINOIS FOR THE CITY OF ELGIN'S HMO AND PPO MEDICAL INSURANCE PROGRAM AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATED THERETO BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that the City of Elgin hereby accepts the proposal of Blue Cross Blue Shield of Illinois for the City of Elgin's HMO and PPO medical insurance program for the period of January 1, 2020 through December 31, 2020. BE IT FURTHER RESOLVED that Richard G. Kozal, City Manager, be and is hereby authorized and directed to execute all documents necessary and incident to such proposal of Blue Cross Blue Shield of Illinois for the City of Elgin's HMO and PPO medical insurance program. s/ David J. Kaptain David J. Kaptain, Mayor Presented: November 6, 2019 Adopted: November 6, 2019 Vote: Yeas: 9 Nays: 0 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk RESOLUTION 19-157 ADOPTED AUTHORIZING EXECUTION OF A SECOND AMENDMENT AGREEMENT WITH WASTE MANAGEMENT OF ILLINOIS, INC. FOR PROVISION OF REFUSE, RECYCLABLES AND YARDWASTE COLLECTION SERVICES There was discussion regarding the organics program, the senior rate for single family and multifamily units. Also discussed was the marketing plan for program changes. Councilmember Shaw made a motion, seconded by Councilmember Gavin, to adopt the following resolution. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. VOLUME LXXXIV NOVEMBER 6, 2019 473 Resolution No. 19-157 RESOLUTION AUTHORIZING EXECUTION OF A SECOND AMENDMENT AGREEMENT WITH WASTE MANAGEMENT OF ILLINOIS, INC. FOR PROVISION OF REFUSE, RECYCLABLES AND YARDWASTE COLLECTION SERVICES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard G. Kozal, City Manager, and Kimberly A. Dewis, City Clerk, be and are hereby authorized and directed to execute a Second Amendment Agreement on behalf of the City of Elgin with Waste Management of Illinois, Inc. for provision of refuse, recyclables and yardwaste collection services, a copy of which is attached hereto and made a part hereof by reference. s/ David J. Kaptain David J. Kaptain, Mayor Presented: November 6, 2019 Adopted: November 6, 2019 Vote: Yeas: 9 Nays: 0 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk CONSENT AGENDA By unanimous consent, Councilmember Gavin made a motion, seconded by Councilmember Martinez, to pass Ordinance Nos. G58-19 through G61-19 and adopt Resolution Nos. 19-151 through 19-154 by omnibus vote. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. RESOLUTION 19-151 ADOPTED AUTHORIZING EXECUTION OF A RIDE IN KANE PACE SUBSIDY AGREEMENT WITH PACE, THE SUBURBAN BUS DIVISION OF THE REGIONAL TRANSPORTATION AUTHORITY FOR SERVICES DURING 2019 Councilmember Gavin made a motion, seconded by Councilmember Martinez, to adopt the following resolution. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. NOVEMBER 6, 2019 VOLUME LXXXIV 474 Resolution No. 19-151 RESOLUTION AUTHORIZING EXECUTION OF A RIDE IN KANE PACE SUBSIDY AGREEMENT WITH PACE, THE SUBURBAN BUS DIVISION OF THE REGIONAL TRANSPORTATION AUTHORITY FOR SERVICES DURING 2019 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that David J. Kaptain, Mayor, and Kimberly A. Dewis, City Clerk, be and are hereby authorized and directed to execute a Ride in Kane Pace Subsidy Agreement on behalf of the City of Elgin with Pace, the Suburban Bus Division of the Regional Transportation Authority, for services during 2019, a copy of which is attached hereto and made a part hereof by reference. s/ David J. Kaptain David J. Kaptain, Mayor Presented: November 6, 2019 Adopted: November 6, 2019 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk RESOLUTION 19-152 ADOPTED AUTHORIZING EXECUTION OF A RIDE IN KANE NEW FREEDOM/JARC AND 5310 SERVICE AGREEMENT WITH ASSOCIATION FOR INDIVIDUAL DEVELOPMENT REGARDING THE RIDE IN KANE PROGRAM (PHASE 17 THROUGH 18 – AUGUST 2019 THROUGH AUGUST 2021) Councilmember Gavin made a motion, seconded by Councilmember Martinez, to adopt the following resolution. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. Resolution No. 19-152 RESOLUTION AUTHORIZING EXECUTION OF A RIDE IN KANE NEW FREEDOM/JARC AND 5310 SERVICE AGREEMENT WITH ASSOCIATION FOR INDIVIDUAL DEVELOPMENT REGARDING THE RIDE IN KANE PROGRAM (Phase 17 through 18 – August 2019 through August 2021) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that David J. Kaptain, Mayor, and Kimberly A. Dewis, City Clerk, be and is hereby authorized and directed to execute a Ride in Kane New Freedom/JARC and 5310 Service Agreement, (Phase VOLUME LXXXIV NOVEMBER 6, 2019 475 17 through 18-August 2019 through August 2021), on behalf of the City of Elgin with Association for Individual Development regarding the Ride in Kane Program, a copy of which is attached hereto and made a part hereof by reference. s/ David J. Kaptain David J. Kaptain, Mayor Presented: November 6, 2019 Adopted: November 6, 2019 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk RESOLUTION 19-153 ADOPTED ACCEPTING GRANT OF THE DEPARTMENT OF JUSTICE FY2017 AND FY2018 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT (JAG) PROGRAM AWARD FOR TRAINING AND SOFTWARE PURCHASES AND RATIFYING THE EXECUTION OF INTERGOVERNMENTAL AGREEMENTS RELATING THERETO Councilmember Gavin made a motion, seconded by Councilmember Martinez, to adopt the following resolution. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. Resolution No. 19-153 RESOLUTION ACCEPTING GRANT OF THE DEPARTMENT OF JUSTICE FY2017 AND FY2018 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT (JAG) PROGRAM AWARD FOR TRAINING AND SOFTWARE PURCHASES AND RATIFYING THE EXECUTION OF INTERGOVERNMENTAL AGREEMENTS RELATING THERETO BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that the City of Elgin, Illinois hereby accepts the Department of Justice FY2017 Edward Byrne Memorial Justice Assistance Grant (JAG) Program Award in the amount of $13,297 and ratifying the execution of an Intergovernmental Agreement between the City of Aurora, the City of Elgin and the County of Kane, Justice Assistance Grant (JAG) Program Award by Richard G. Kozal, City Manager, regarding training and software purchases. BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS that the City of Elgin, Illinois hereby accepts the Department of Justice FY2018 Edward Byrne Memorial Justice Assistance Grant (JAG) Program Award in the amount of $13,005 and NOVEMBER 6, 2019 VOLUME LXXXIV 476 ratifying the execution of an Intergovernmental Agreement between the City of Aurora, the City of Elgin and the County of Kane, Justice Assistance Grant (JAG) Program Award by Richard G. Kozal, City Manager, regarding training and software purchases. s/ David J. Kaptain David J. Kaptain, Mayor Presented: November 6, 2019 Adopted: November 6, 2019 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk RESOLUTION 19-154 ADOPTED APPROVING SETTLEMENTS OF CERTAIN WORKERS' COMPENSATION CASES Councilmember Gavin made a motion, seconded by Councilmember Martinez, to adopt the following resolution. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. Resolution No. 19-154 RESOLUTION APPROVING SETTLEMENTS OF CERTAIN WORKERS' COMPENSATION CASES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that the proposed settlement of the pending workers' compensation case of Joshua Miller, Case No. 17 WC 13237, in the total amount of $67,828.25 is approved. BE IT FURTHER RESOLVED that the proposed settlement of the pending workers' compensation case of Michael Villareal, Case No. 18 WC 184, in the total amount of $158,128 is approved. BE IT FURTHER RESOLVED that the proposed settlement of the pending workers’ compensation case of Rick Wallace, Case No. 17 WC 6208, in the total amount of $64,727.53 is approved. s/ David J. Kaptain David J. Kaptain, Mayor VOLUME LXXXIV NOVEMBER 6, 2019 477 Presented: November 6, 2019 Adopted: November 6, 2019 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk ORDINANCE G58-19 PASSED ESTABLISHING AN AMENDED POLICY FOR INCURRING DEBT FOR THE CITY OF ELGIN Councilmember Gavin made a motion, seconded by Councilmember Martinez, to pass the following ordinance. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. Ordinance No. G58-19 AN ORDINANCE ESTABLISHING AN AMENDED POLICY FOR INCURRING DEBT FOR THE CITY OF ELGIN WHEREAS, the City of Elgin is a home rule unit pursuant to Article VII Section 6 of the Constitution of the State of Illinois; and WHEREAS, as a home rule unit, the City of Elgin may exercise any power and perform any function pertaining to its government affairs; and WHEREAS, a policy for incurring debt for the City of Elgin pertains to the government and affairs of the City of Elgin; and WHEREAS, the City of Elgin’s current policy for incurring debt was established pursuant to Resolution 02-161 approved by the city council of the City of Elgin on April 24, 2002; and WHEREAS, the city council of the City of Elgin has determined that it is necessary and desirable to update the city’s policy for incurring debt. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Resolution 02-161 adopted by the city council of the City of Elgin on April 24, 2002, establishing a policy of incurring debt, be and hereby is amended in its entirety and an amended policy for incurring debt for the City of Elgin be and is hereby established to read as follows: NOVEMBER 6, 2019 VOLUME LXXXIV 478 Section 1. Purpose. The City’s Debt Management Policy provides comprehensive guidelines for the issuance and management of debt, as well as the reporting and continuing disclosure requirements related to the City of Elgin’s debt financing. It is the objective of the policy for the City to obtain financing only when necessary, establish conditions to obtain financing at the lowest cost, retain the highest practical credit rating, and to maintain full and complete financial disclosure and reporting. In addition to adherence to this policy, the City’s financing will also be in compliance with applicable Federal law, U.S. Securities and Exchange Commission (SEC) regulations, and Illinois Compiled Statutes (ILCS) as supplemented by the City’s home rule powers. This policy provides a functional tool for debt management, as well as, enhancing the City's reputation for managing its debt in a conservative and prudent manner. Adherence to the policy is essential to ensure the City maintains a sound financial position and protects the credit quality of its obligations. Section 2. Scope. This policy will be all-inclusive of debt issued by the City including, but not limited to, general obligation bonds, revenue bonds, installment contracts, leases, special service area bonds, special assessment bonds, working cash bonds, tax anticipation warrants, tax anticipation notes, revenue anticipation notes, and tax increment bonds. In addition, refunding bonds may be issued and can save municipalities interest costs. This policy contains certain elements on procedures and practices to achieve the objectives of the policy and to ensure professional standards are defined and met in the policy’s implementation. Section 3. Legal and Regulatory Requirements. A. Federal: The Internal Revenue Code (IRC) of 1986 as amended and its arbitrage and rebate regulations govern the tax-exempt status of municipal bonds. Upon issuance of any municipal bonds, the City will covenant to follow certain federal rules and regulations in order to maintain the tax-exempt status of the bonds. To receive these benefits, the City must ensure that the requirements under the IRC are met, generally for as long as the bonds remain outstanding. These requirements include, but are not limited to: 1. File Internal Revenue Service (IRS) Form 8038-G, Information Return for Tax-Exempt Governmental Obligations ($100,000 or greater) or Form 8038-GC, Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales (less than $100,000); 2. Bond proceeds must be used to finance activities of, or facilities owned, operated or used by, the issuer for its purpose or another state or local government for its own purposes; VOLUME LXXXIV NOVEMBER 6, 2019 479 3. Allocate to expenditures not later than 18 months after the later of the date each expenditure is paid or the date the project, if any, that is financed by the issue is placed in service; and 4. Rebate to the IRS for investments earning a yield materially higher than the yield of the bond issue (arbitrage), unless an appropriate exception to the rebate requirement is met. B. U.S. Securities and Exchange Commission (SEC): Congress passed the Securities Act of 1933 with the objective of providing investors full disclosure of material facts about securities offered and sold. In 1934, Congress passed the Securities Exchange Act of 1934 that created the Securities and Exchange Commission (SEC) and empowered the SEC with broad authority over most aspects of the securities industry. Although municipal securities are exempt from many of the requirements, the City is still subject to: 1. Rule 10b-5 of the Securities Exchange Act of 1934: Sets out the general statement of federal intent to protect investors against misleading statements or omissions of important facts in official statements or other documents pertaining to the bond issuance; and 2. Rule 15c2-12 of the Securities Exchange Act of 1934 (“Rule 15c2-12”): Governs the preparation and distribution of official statements for municipal securities and meeting continuing disclosure requirements. C. State: By virtue of its population and pursuant to the provisions of Section 6 of Article VII of the Constitution of the State of Illinois (the “Constitution”), the City is a home rule unit and may exercise any power or perform any function pertaining to its government and affairs including, but not limited to, the power to tax and to incur debt. Pursuant to the provisions of said Section 6, the City has the power to incur debt payable from ad valorem property tax receipts or from any other lawful source and maturing within 40 years from the time it is incurred without prior referendum approval. On the 23rd day of April, 1975, the City Council of the City adopted an ordinance determining the procedures to be followed in the borrowing of money for public purposes of the City and in evidence of such borrowing the issuing of full faith and credit bonds of the City without referendum approval, such ordinance being entitled: Ordinance No. G22-75 AN ORDINANCE establishing procedures to be followed by the City of Elgin, Kane and Cook Counties, Illinois, in issuing non-referendum general obligation bonds which ordinance was amended by Ordinance No. G14-80 adopted on January 28, 1980, by Ordinance No. 64-80 adopted on October 8, 1980, by Ordinance NOVEMBER 6, 2019 VOLUME LXXXIV 480 No. G39-82 adopted on July 28, 1982, and by Ordinance No. G31-92 adopted on June 17, 1992 (Ordinance No. G22-75 as so amended, the “Enabling Ordinance”). Any borrowing of money undertaken by the City shall be necessary for the welfare of the government and affairs of the City, for a proper public purpose or purposes and in the public interest. In addition, any borrowing shall be authorized pursuant to the applicable provisions of the Illinois Municipal Code, as amended, as further supplemented and, where necessary, superseded, by the powers of the City as a home rule unit under the provisions of Section 6 of Article VII of the Constitution and the Enabling Ordinance adopted pursuant to such home rule powers, and as further supplemented by the Local Government Debt Reform Act, as amended. Section 4. Guidelines for Use. Debt is a financing tool which should be thoughtfully used and will be considered when some or all of the following conditions exist: A. Adequate resources – future revenues sufficient to cover debt service; B. Characteristics – projects represent a one-time investment (e.g. building) rather than ongoing operations (e.g. maintenance of building); C. Favorable market conditions – interest rates and construction costs are reasonable; D. Intergenerational equity – help distribute costs and benefits of capital assets over their useful lives; E. Length of issuance – term of financing will not exceed expected life of capital asset; F. Mandates – improvements required by federal or state authorities; G. Options – other financing has been explored and is not viable for the timely acquisition or completion of a capital asset; and H. Within financial limits – consistent with federal, state, and local regulations. Section 5. Types of Debt. The types of debt permitted by the City to meet its financing objectives includes, but is not limited to: A. General obligation bonds – financing secured by the credit and taxing power of the City; with a defined source of revenue often times being used to abate all or a portion of the property taxes supporting the general obligation bonds. B. Revenue bonds – financing secured only by a defined source of revenue (not property tax); C. Capital leases – financing of a vehicle or equipment over time with a provision to transfer ownership at a nominal amount at the termination of the lease; D. Loans – federal and state low interest financing secured by a defined source of revenue (not property tax) typically used for water and wastewater projects; and E. Other – special circumstances may exist when other forms of debt are appropriate, necessary, and advantageous to the City. VOLUME LXXXIV NOVEMBER 6, 2019 481 State and local governments receive tax benefits under the IRC that lower borrowing costs on their bonds. Bondholders are willing to accept a lower interest rate because interest paid to bondholders on these obligations is not includable in their gross income for federal income tax purposes. The City will generally issue tax-exempt bonds. However, the City may occasionally issue taxable bonds which have a higher interest rate. In addition, the City shall be mindful of the potential benefits of bank qualified bonds. This designation is given to a bond issuance if the City reasonably expects to issue in the calendar year of such offering no more than $10 million of bonds. When purchased by a commercial bank for its portfolio, the bank may deduct a portion of the interest cost of carry for the position. Therefore, the City will strive to limit its annual issuance of bonds to $10 million or less, as amended from time to time, when the estimated benefits are greater than the benefits of exceeding the bank qualification limit. The City shall not be permitted to use derivative instruments including interest rate swaps, forward swaps, swap options, basis swaps, caps, floors, collars, rate locks, cancellation options or any similar hedge, derivative, or synthetic instrument. Section 6. Standards of Care. A. Prudence: Debt shall be issued with judgment and care under the circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs. The standard of prudence to be used by debt management officials shall be the “prudent person” standard and shall be applied in the context of managing an overall debt portfolio. City officers and employees acting in accordance with this policy, and any other written procedures, and exercising due diligence shall be relieved of personal liability, provided that officers and employees report deviations from expectations in a timely fashion and take appropriate action to control adverse developments. B. Maintaining the Public Trust: All participants in the debt management process shall seek to act responsibly as custodians of the public trust and shall avoid any transaction that might impair public confidence in the City. C. Ethics and Conflicts of Interest: Officers and employees of the City who are involved in the debt management process shall refrain from personal business activity that could conflict with proper execution and management of the debt program, or which could impair their ability to make impartial decisions. Employees and officials shall disclose to the Board any material interests in financial institutions with which they conduct business. Section 7. Structuring Practices. The duration of a bond issue shall not exceed the economic or useful life of the improvement or asset that the issue is financing. The City shall design the financing schedule and repayment of bonds to take best advantage of market conditions and, as practical, to recapture or maximize its credit capacity for future use, and moderate the impact to the taxpayer. NOVEMBER 6, 2019 VOLUME LXXXIV 482 A. Maturity guidelines 1. Governmental activities – maturity limited to twenty years 2. Business-type activities – maturity limited to forty years B. Debt service schedule 1. A level or declining debt service schedule will be employed unless operational matters dictate otherwise, or except to achieve overall level debt service with existing bonds. 2. The City will use the debt service schedule which will best fit with the overall debt structure or revenue source of the City’s bonds at the time the new bonds are issued. 3. Consideration will be given to coordinating the length of the issue with the lives of assets, whenever practicable. C. Use of redemption features A call option, or optional redemption provision, gives the City the right to prepay or retire bonds prior to their stated maturity. These prepayment provisions are structured into the original bond issuance to provide the City an opportunity to manage its debt portfolio. The exercise of these prepayment provisions is usually through the issuance of refunding bonds, although cash on hand is also a source. Bonds can be refunded to achieve one or more of the following objectives: 1. Reduce future interest costs – shall be at least 2% present value savings for current refunding; 2. Restructure future debt service in response to evolving conditions regarding anticipated revenue sources; 3. Alter bond characteristics, such as call provisions or payment dates, on existing bonds; and 4. Change the legal requirements, termed covenants, of the original issue to reflect more closely the changing conditions of the City or the type of bond. Section 8. Debt Issuance Process A. Approval of issuance – The City Council shall adopt an ordinance authorizing the issuance of bonds. B. Method of sale The City will select the method of sale which best fits the type of bonds being sold, market conditions, and the desire to structure bond maturities to enhance the overall performance of the debt portfolio. The general methods for the sale of municipal bonds include: 1. Competitive sale – Bonds are marketed to a wide audience of investment banking firms (underwriting). Their bids are submitted electronically at a specific time and the bonds will be sold to the bidder proposing the lowest true interest cost (TIC). VOLUME LXXXIV NOVEMBER 6, 2019 483 2. Negotiated sale – The City will negotiate all rates and terms of the sale with an underwriter who is selected in advance of the bond sale. 3. Private placement – The City sells its bonds to a limited number of sophisticated investors, but not the general public. C. Selection and use of professional service providers The City will procure professional services as needed to successfully authorize, structure, and market bonds due to the complex nature of the transactions. These professional service providers may include arbitrage consultants, bond counsel, escrow agents, financial advisors, paying agents, underwriters, and verification agents. 1. Financial Advisor The Financial Advisor will recommend the financing structure; prepare and review preliminary and official statements; review ordinances concerning the authorization and award of financing; assist the City in developing and presenting information to rating agencies; provide the electronic bidding platform; and provide assistance with the closing and delivery of securities. To ensure independence, the Financial Advisor will not bid on or underwrite any City bond issues on which it is advising. 2. Bond Counsel Involvement Bond Counsel will prepare and review the ordinances authorizing and awarding the bonds; provide a written opinion regarding the validity and binding effect of the bonds; determine the federal tax status of any bonds; and prepare bound official transcripts related to the authorization, offering, sale and delivery of the bond issue. The City will also seek assistance from Bond Counsel on other types of debt financing, as well as on any questions involving federal tax or arbitrage law. To ensure independence, Bond Counsel will not simultaneously represent any other party involved in the financing unless a conflict waiver is obtained from the City. D. Credit ratings The City may seek a rating on all new bond issues being sold in the public market. Municipal bond ratings determine the amount of investment risk and interest cost on bonds used for financing City projects. These ratings assess several factors including, but not limited to, current state of the economy, debt structure, financial condition, and management practices. The City will use both formal and informal methods to disseminate information and communicate with the rating agencies as follows: 1. Full disclosure of the financial condition of the City on an annual basis; 2. Formal presentation on a regular basis covering economic, financial, operational, and other issues that impact the City’s credit; 3. Disclosure of financial events that may impact the City’s credit; 4. Dissemination of the Comprehensive Annual Financial Report (CAFR); and 5. Distribution of any documents pertaining to the sale of bonds. NOVEMBER 6, 2019 VOLUME LXXXIV 484 Section 9. Debt Management Process A. Investment of proceeds- The City acknowledges its ongoing fiduciary responsibilities to actively manage the proceeds of bonds issued for public purposes in a manner that is consistent with the City’s investment policy, Illinois statutes that govern the investment of public funds, and consistent with the covenants of related bond documents. The investment of bond proceeds requires significant diligence in meeting the objectives of regulatory compliance, management of the covenants described in financing documents, and the needs of the projects being funded. B. Compliance practices 1. Arbitrage – It is the City’s policy to minimize the cost of arbitrage rebate and yield restriction while strictly complying with the federal arbitrage and rebate regulations. The City will take the following steps to minimize any rebate liability through proactive management in the structuring and oversight of its bonds. a. Examine whether the City met the arbitrage rebate exception rules; b. Use bond proceeds only for the purpose and authority for which they were issued; c. Monitor the expenditure of bond proceeds and exercise best efforts to spend proceeds in such a manner that the City will meet one of the spend-down exemptions from arbitrage rebate; d. Maintain detailed investment records and monitor the investment of bond proceeds with awareness of rules pertaining to yield restrictions; and e. Perform arbitrage rebate calculations as determined by the IRS. 2. Continuing disclosure – The City has covenanted and agreed in the bond ordinances authorizing its various bond issues, in accordance with Rule 15c2-12, to provide certain financial information and operating data relating to the City within 210 days after the close of the City’s fiscal year; and, in a timely manner, to provide notices of the occurrence of certain reportable events. The following will be filed by the City with the Municipal Securities Rulemaking Board (MSRB) for disclosures on its Electronic Municipal Market Access (EMMA) system: a. Audited financial statements; b. Financial and operating data included in the original official statement; c. Required event notices; and d. Voluntary event notices. 3. Legal covenants – The City shall comply with all covenants and conditions contained in any legal document entered into at the time of the bond offering. VOLUME LXXXIV NOVEMBER 6, 2019 485 Section 10. That this ordinance shall be in full force and effect upon its passage in the manner provided by law. s/ David J. Kaptain David J. Kaptain, Mayor Presented: November 6, 2019 Passed: November 6, 2019 Omnibus Vote: Yeas: 9 Nays: 0 Recorded: November 6, 2019 Published: November 7, 2019 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk ORDINANCE G59-19 PASSED ESTABLISHING AN AMENDED INVESTMENT POLICY OF MUNICIPAL FUNDS FOR THE CITY OF ELGIN Councilmember Gavin made a motion, seconded by Councilmember Martinez, to pass the following ordinance. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. Ordinance No. G59-19 AN ORDINANCE ESTABLISHING AN AMENDED INVESTMENT POLICY OF MUNICIPAL FUNDS FOR THE CITY OF ELGIN WHEREAS, the City of Elgin is a home rule unit pursuant to Article VII Section 6 of the Constitution of the State of Illinois; and WHEREAS, as a home rule unit, the City of Elgin may exercise any power and perform any function pertaining to its government affairs; and WHEREAS, an investment policy of municipal funds for the City of Elgin pertains to the government and affairs of the City of Elgin; and WHEREAS, the City of Elgin’s current investment policy of municipal funds was established pursuant to Ordinance No. S37-04 passed by the city council of the City of Elgin on December 15, 2004; and WHEREAS, the city council of the City of Elgin has determined that it is necessary and desirable to update the city’s investment policy of municipal funds. NOVEMBER 6, 2019 VOLUME LXXXIV 486 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Ordinance No. S37-04 be and is hereby amended in its entirety, and an amended investment policy of municipal funds for the City of Elgin be and is hereby established to read as follows: Section 1. Scope of Investment Policy. The provisions of this ordinance shall not apply to the investment of such funds which by law are in the control of an officer other than the City Treasurer. All financial assets of funds, including: the General Fund, Special Revenue Funds, Capital Project Funds, Debt Service Funds, Enterprise Funds, Internal Service Funds, Nonexpendable Trust Funds, and such other funds that may be created from time to time shall be administered in accordance with the provisions of this ordinance. Any monies received for independent funds including but not limited to the Police Pension Fund and the Firefighter’s Pension Fund shall be administered by the written order of the respective Board of Trustees of each fund. In the absence of such orders, money received and securities held by the City of Elgin on behalf of such funds shall be administered in accordance with the provisions of this ordinance. Section 2. Objectives. Funds of the City shall be invested in accordance with the Public Funds Investment Act, 30 ILCS 235/01, et seq., as amended from time to time, this ordinance, and policies and written administrative procedures consistent with the Act and this ordinance. The purpose of this ordinance is to establish cash management and investment guidelines for City officials responsible for the stewardship of public funds. Primary objectives include: a. Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. 1. Credit Risk. The City will minimize credit risk, which is the risk of loss due to the failure of the security issuer or backer, by: • Limiting investments to the types of securities listed within this Investment Policy. • Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business. • Diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized. 2. Interest Rate Risk. The City will minimize interest rate risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by: VOLUME LXXXIV NOVEMBER 6, 2019 487 • Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity. • Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools and limiting the average maturity of the portfolio in accordance with this policy. b. Legality. All investments shall be made in conformance with Federal, State, and other legal requirements. c. Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, a portion of the portfolio may be placed in money market mutual funds or local government investment pools which offer same-day liquidity for short-term funds. d. Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The core investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall generally be held until maturity with the following exceptions: • A security with declining credit may be sold early to minimize loss of principal. • A security swap would improve the quality, yield, or target duration in the portfolio. • Liquidity needs of the portfolio require that the security be sold. e. Diversification. To avoid incurring unreasonable risks regarding specific security types and individual financial institutions, investments shall be diversified based upon type of funds invested and cash flow needs of the fund. f. Public Confidence. In managing its investment portfolio City officials shall avoid any transactions that might impair public confidence of the government of the City. Investments shall be made with judgment and care under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as their probable income to be derived. Section 3. Standards of Care. 1. Prudence The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. NOVEMBER 6, 2019 VOLUME LXXXIV 488 Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the liquidity and the sale of securities are carried out in accordance with the terms of this policy. The “prudent person” standard states that, “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” 2. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual(s) with whom business is conducted on behalf of the City. 3. Delegation of Authority Management administrative responsibility for the investment program is vested in the Treasurer who shall establish written procedures for the operation of the Investment Program consistent with these policies. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and procedures established by the Treasurer. The Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Section 4. Cash Management. The City's policy regarding cash management shall be based upon the fact that there is a time value to money. Temporarily idle cash may be invested for a period of one day to an excess of one year depending upon when the money is authorized to be needed. Accordingly, the Treasurer shall cause to be prepared written cash management procedures which shall include, but not be limited to, the following: A. Receipts All monies due the City shall be collected as promptly as possible. Monies that are received shall be deposited in an approved financial institution no later than the next business day VOLUME LXXXIV NOVEMBER 6, 2019 489 after receipt by the City. Amounts that remain uncollected after a reasonable length of time shall be subject to any available legal means of collection. B. Disbursements Any disbursements to suppliers for goods or services or to employees for salaries and wages shall be contingent upon an available budget appropriation. All disbursements shall be supported by proper documentation and approved by the City Council. C. Cash Forecast At least monthly, a cash forecast shall be prepared using the expected revenue sources and items of expenditure to project cash requirements over the fiscal year. The forecast shall be updated from time to time to identify the probable investable balances that will be available. D. Pooling of Cash Except for cash in certain restricted and special accounts, pool the cash of various funds to maximize investment earnings. Interest income earned from investments will be allocated to the various funds based on their respective participation. Section 5. Accounting. The City shall maintain its accounting records based on the basis of Fund and Account Groups, each of which is considered a separate accounting entity. All investment transactions shall be recorded in the various funds of the City in accordance with Generally Accepted Accounting Principles as promulgated by the Government Accounting Standards Board. Accounting treatment shall include: • Investments with a maturity equal to or less than one year when purchased will be carried at cost or amortized cost. Investments with a maturity greater than one year when purchased will be reported at fair value. • Premium or discount shall be amortized over the life of the investment. • Gains or losses of investments in all funds shall be recognized at the time of disposition of the security. Section 6. Internal Controls. The Treasurer shall establish a written procedure of internal controls. The internal controls shall be reviewed by an independent certified public accountant in conjunction with the annual examination of the financial statements of the City. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the City of Elgin. Section 7. Investment Selection. NOVEMBER 6, 2019 VOLUME LXXXIV 490 The City of Elgin may invest in any type of security allowed by law as set out in the Illinois Compiled Statutes, Chapter 30 ILCS 235/2. Approved investments include, but are not limited to: • Bonds, notes, certificates of indebtedness, treasury bills, treasury strips or other securities, including obligation of the Governmental National Mortgage Association, which are guaranteed by the full faith and credit of the government of the United States of America, or other similar obligations of the United States of America or its agencies. • Interest bearing savings accounts, interest bearing certificates of deposit or interest bearing time deposits or any other investment constituting direct obligations of any institution as defined by the Illinois Banking Act and is insured by the Federal Deposit Insurance Corporation. • Local Government Investment Pools • Obligations of corporations (commercial paper) organized in the United States with assets exceeding $500 million and rated at the time of purchase at one of the three highest classification established by at least two standard rating services. Must mature within three years from the date of purchase. • Investment grade municipal obligations (rated AA or better by a nationally recognized ratings agency) of state, provincial and local governments and public authorities. • Short-term discount obligations of the Federal National Mortgage Association or in shares of other forms of securities legally by savings and loan associations incorporated under the laws of this state or any other state or under the laws of the United States. Investments may be made only in those savings and loan associations of which the shares, or investment certificates are insured by the Federal Deposit Insurance Corporation. All investments, except for the Illinois Public Funds or similar type of investments/money market pools, shall be selected on the basis of competitive bids. Financial Institutions located within the City of Elgin will be awarded a bid if the local bid is not less than the prevailing rate. Section 8. Diversification of Maturities. The City shall diversify its use of investment instruments to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions or maturities. Maturities selected shall provide for stability of income and reasonable liquidity. A. Diversification The investments shall be diversified by: • Limiting investments to avoid overconcentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities and Federal Agency securities), • Limiting investments in securities that have higher credit risks, • Investing in securities with varying maturities, and • Continuously investing a portion of the portfolio in readily available funds such as local government investment pools (LGIP’s), money market funds or VOLUME LXXXIV NOVEMBER 6, 2019 491 overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. B. Maturity Scheduling Investment maturities for operating funds shall be scheduled to coincide with anticipated cash flow needs, taking into account large routine expenditures (payroll, accounts payable, bond payments) as well as considering sizable blocks of anticipated revenue (sales tax, property tax). Investment maturities in the General Fund and Special Revenue Funds shall be limited to a maximum maturity of 36 months from the date of purchase. Investments in other funds may be purchased with maturities to match future projects or liability requirements. Notwithstanding, the provisions of the above paragraph, no investment in any fund shall have a maturity date greater than the period allowed by the Illinois Compiled Statutes, City ordinance, or by other standards of this policy. C. Delivery vs. Payment All trades where applicable will be executed by delivery vs. payment (DVP) to be sure that securities are deposited in an eligible financial institution prior to the release of funds. Securities will be held by a third party custodian as evidenced safekeeping receipts. D. Safekeeping Securities will be held by an independent third-party custodian selected by the entity as evidenced by safekeeping receipts in the City of Elgin’s name. The safekeeping institution shall annually provide a copy of their most recent report on internal controls (Statement of Auditing Standards No. 70, or SAS 70). Section 9. Competitive Selection of Investment Instruments. Before the City invests its surplus funds, a competitive "bid" process shall be conducted. If a specific maturity date is required, either for cash flow purposes or for conformance to maturity guidelines, bids will be requested for instruments which meet the maturity requirement. If no specific maturity is required, a market trend (yield curve) analysis will be conducted to determine which maturities would be most advantageous. Section 10. Qualified Institutions. The City will maintain a listing of financial institutions authorized to provide investment services. In addition, a list also will be maintained of approved security brokers/dealers selected by credit worthiness. All financial institutions and brokers/dealers who desire to become qualified for investment transactions must supply the following as appropriate: A. Audited financial statements NOVEMBER 6, 2019 VOLUME LXXXIV 492 B. Proof of Financial Industry Regulatory Authority, Inc. (FINRA) Certification. C. Proof of State Registration D. Certification of having read & understood and agreeing to comply with the City's investment policy E. Evidence of adequate insurance coverage An annual review of the financial condition and registration of qualified financial institutions and broker/dealers will be conducted by the Treasurer. Section 11. Collateral. The City requires that funds on deposit in excess of FDIC limits be secured by some form of collateral. Any of the following assets would be acceptable as collateral: -U.S. Government Securities -Obligations of the Federal Agencies -Obligations of the Federal Instrumentalities -FHLB Letter of Credit -Obligations of the State of Illinois -Obligations of the City of Elgin -General Obligation Municipal Bonds rated "A" or better -Any other collateral identified in Illinois Complied Statutes as acceptable The amount of collateral provided shall not be less than 105% of the fair market value of the net amount of public funds secured. The ratio of fair market value of collateral to the amount of funds secured shall be reviewed weekly and additional collateral will be requested when the ratio declines below the level required. Collateral shall be held in third party safekeeping and shall be evidenced by a tri-party signed safekeeping agreement. Collateral agreements will preclude the release of the pledged assets without an authorized signature from the City of Elgin, but they will allow for an exchange of collateral of like value. Section 12. Reporting Requirements. The Treasurer shall generate monthly reports for management purposes. In addition, the City Council will be provided quarterly reports which will include data on investment instruments being held, as well as any narrative necessary for clarification. The monthly report shall include, at a minimum: VOLUME LXXXIV NOVEMBER 6, 2019 493 1. Principal and type of investment by fund 2. Earnings for the current month and year to date 3. Annualized yield 4. Current market value of portfolio The annual financial report of the City shall include all required information of the Governmental Accounting Standards Board Statement #40 as updated. Section 13. Policy Considerations. This policy shall be reviewed on an annual basis. Any changes must be approved by the investment officer and formally adopted by the governing body of the City of Elgin. Section 14. That this ordinance shall be in full force and effect upon its passage in the manner provided by law. s/ David J. Kaptain David J. Kaptain, Mayor Presented: November 6, 2019 Passed: November 6, 2019 Omnibus Vote: Yeas: 9 Nays: 0 Recorded: November 6, 2019 Published: November 7, 2019 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk ORDINANCE G60-19 PASSED GRANTING DEVELOPMENT PLAN APPROVAL (LOT 5 OF THE RESUBDIVISION OF LOT 2 OF THE ELGIN WAL-MART/SAM'S CLUB SUBDIVISION 1110 S. RANDALL ROAD) Councilmember Gavin made a motion, seconded by Councilmember Martinez, to pass the following ordinance. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. NOVEMBER 6, 2019 VOLUME LXXXIV 494 Ordinance No. G60-19 AN ORDINANCE GRANTING DEVELOPMENT PLAN APPROVAL (Lot 5 of the Resubdivision of Lot 2 of the Elgin Wal-Mart/Sam’s Club Subdivision 1110 S. Randall Road) WHEREAS, the territory described herein has been previously classified in the PAB Planned Area Business District pursuant to Ordinance No. G114-06; and WHEREAS, by adopting Ordinance No. G32-10 on July 14, 2010, the City Council of the City of Elgin, Illinois (hereinafter “the City Council”) amended Ordinance No. G114-06 in its entirety; and WHEREAS, by adopting Ordinance No. G6-16 on February 24, 2016, the City Council amended the permitted and conditional land uses provisions of Ordinance No. G32-10; and WHEREAS, Ordinance No. G32-10 requires that building and building additions other than the Wal-Mart and Sam’s Club building submit a development plan for a public hearing and approval by the City Council pursuant to the provisions of Chapter 19.60, Planned Development, of the Elgin Municipal Code, 1976, as amended; and WHEREAS, the City Council has approved Petition 26-15, one element of which was the resubdivision of Lot 2 of Elgin Wal-Mart/Sam’s Club Subdivision at 1000 South Randall Road into five lots; and WHEREAS, written application has been made requesting development plan approval as required by Ordinance No. G32-10 for the Lot 5 within the resubdivision of Lot 2 of the Elgin Wal-Mart/Sam’s Club Subdivision, which Lot 5 is legally described herein (the “Subject Property”); and WHEREAS, the Planning & Zoning Commission conducted a public hearing concerning said application on October 7, 2019 following due notice including by publication; and WHEREAS, the Community Development Department and the Planning & Zoning Commission have submitted their Findings of Fact concerning said application; and WHEREAS, the Community Development Department and the Planning & Zoning Commission recommend approval of said application, subject to the conditions articulated below; and WHEREAS, the City Council of the City of Elgin, Illinois, has reviewed the findings and recommendations of the Community Development Department and the Planning & Zoning Commission; and VOLUME LXXXIV NOVEMBER 6, 2019 495 WHEREAS, the City of Elgin is a home rule unit and as a home rule unit may exercise any power and perform any function pertaining to its government and affairs; and WHEREAS, zoning, including, but not limited to, this ordinance granting development plan approval pursuant to the process required for a planned development as required by PAB Planned Development Ordinance G32-10, pertains to the government and affairs of the city. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1. That the City Council of the City of Elgin hereby adopts the Findings of Fact, dated October 7, 2019, and the recommendations made by the Community Development Department and the Planning & Zoning Commission, a copy of which is attached hereto and made a part hereof by reference as Exhibit A. Section 2. That a development plan for an approximately 5,000-square foot one-story restaurant building on Lot 5 within the resubdivsion of Lot 2 of the Elgin Wal-Mart/Sam’s Club Subdivision, be and is hereby approved, where said Lot 5 is the following legally described parcel: PARCEL 1: LOT 5 IN ELGIN WAL-MART-SAM'S CLUB SUBDIVISION BEING A SUBDIVISION OF LOT 2 OF THE ELGIN WAL-MART SAM'S CLUB SUBDIVISION, BEING PART OF THE SOUTHEAST QUARTER OF SECTION 28, TOWNSHIP 41 NORTH, RANGE 8, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED DECEMBER 6, 2011, AS DOCUMENT NUMBER 2011K073547, IN KANE COUNTY, ILLINOIS, ACCORDING TO THE PLAT THEREOF RECORDED AUGUST 30, 2016, AS DOCUMENT NUMBER 2016K046039. PARCEL 2: A NON-EXCLUSIVE EASEMENT FOR THE BENEFIT OF PARCEL 1, AS CREATED BY DECLARATION OF OPERATION AND EASEMENT AGREEMENT RECORDED JUNE 22, 2016, AS DOCUMENT NUMBER 2016K31248 FOR INGRESS AND EGRESS AND FOR PURPOSES AS SET FORTH THEREIN. (commonly known as 1110 S. Randall Road). Section 3. That the development plan approval for the Subject Property as authorized by this ordinance shall be subject to the following additional conditions: 1. Substantial conformance to the Development Application submitted by Chick-fil-A, Inc., as applicant, and Richport Property II, LLC-Richport Commons, as property owner, received September 6, 2019, and supporting documents including: a. Undated Planned Development Statement of Purpose and Conformance, received September 26, 2019; NOVEMBER 6, 2019 VOLUME LXXXIV 496 b. Undated lighting specifications, received September 26, 2019; c. ALTA/NSPS Land Title Survey, prepared by HR Green, dated August 5, 2019; d. Site Plan Sheet C-200, prepared by HR Green, dated September 3, 2019, with such further revisions as required by the Community Development Director; e. Photometric Plan Sheet E-603, prepared by Dickerson Engineering, Inc., dated September 4, 2019, last revised for progress print dated September 24, 2019, with such further revisions as required by the Community Development Director; f. Landscape Plans Sheets L-100, L-101, and L-102, prepared by HR Green, dated September 3, 2019, with such further revisions as required by the Community Development Director; g. Perspective Views, Elevations, and Floor Plan, prepared by Chick-fil-A, Inc., dated September 25, 2019, with such further revisions as required by the Community Development Director; h. Grading Plan Sheet C-300, prepared by HR Green, dated September 3, 2019, with such further revisions as required by the City Engineer; i. Plumbing Site Plan Sheet PS-100, prepared by HR Green, dated September 3, 2019, with such further revisions as required by the City Engineer; j. Chick-fil-A Signage Plans, Store Number L04527, prepared by Clayton Signs, dated July 24, 2019, last revised August 21, 2019, with such further revisions as required by the Community Development Director; and k. Undated “Coming Soon” banner, received September 26, 2019, with such further revisions as required by the Community Development Director. In the event of any conflict between such documents and the terms of this ordinance or other applicable city ordinances, the terms of this ordinance or other applicable city ordinances shall supersede and control. 2. A departure is hereby granted to permit a total of 43 parking spaces on the property for the proposed restaurant building. 3. A departure is hereby granted to permit the construction of a refuse enclosure which is not affixed structurally as part of the primary building wall system. 4. A departure is hereby granted to allow the construction of a refuse collection area within the required building setback six feet from the north property line. 5. A departure is hereby granted to allow the construction of an accessory structure affixed to the refuse collection area within the required building setback six feet from the north property line. 6. A departure is hereby granted to allow the construction of a 8 foot – 8 inches high wall for the refuse collection area enclosure. 7. A departure is hereby granted to allow a minimum vehicle use area setback of 0 feet from the west property line, and a minimum vehicle use area setback of 3.4 feet from the south property line. VOLUME LXXXIV NOVEMBER 6, 2019 497 8. A departure is hereby granted to allow a total of four wall graphics shall be permitted on the building in substantial compliance with: a. Chick-fil-A Signage Plans, Store Number L04527, prepared by Clayton Signs, dated July 24, 2019, last revised August 21, 2019, with such further revisions as required by the Community Development Director; 9. The applicant shall install a parking lot curb along the south property line to connect the parking lot curb of the existing parking lot islands located on the western and eastern portion of the property adjacent to the south, commonly known as 1120 S. Randall Road. 10. Compliance with all applicable codes and ordinances. Section 4. That except as amended herein, the use and development of Subject Property shall be controlled pursuant to the provisions of Ordinance Nos. G32-10 and G6-16. In the event of any conflict between this ordinance, which expressly includes those documents detailed within Section 3, and Ordinance Nos. G32-10 and G6-16, this ordinance and associated documents shall control and prevail. Section 5. That this ordinance shall be in full force and effect immediately after its passage in the manner provided by law. s/ David J. Kaptain David J. Kaptain, Mayor Presented: November 6, 2019 Passed: November 6, 2019 Omnibus Vote: Yeas: 9 Nays: 0 Recorded: November 6, 2019 Published: November 7, 2019 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk ORDINANCE G61-19 PASSED GRANTING A CONDITIONAL USE TO ESTABLISH A DRINKING PLACE (ALCOHOLIC BEVERAGES) IN THE NB NEIGHBORHOOD BUSINESS DISTRICT (219 WALNUT AVENUE) Councilmember Gavin made a motion, seconded by Councilmember Martinez, to pass the following ordinance. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. NOVEMBER 6, 2019 VOLUME LXXXIV 498 Ordinance No. G61-19 AN ORDINANCE GRANTING A CONDITIONAL USE TO ESTABLISH A DRINKING PLACE (ALCOHOLIC BEVERAGES) IN THE NB NEIGHBORHOOD BUSINESS DISTRICT (219 Walnut Avenue) WHEREAS, written application has been made requesting conditional use approval to establish a drinking place (alcoholic beverages) and a commercial event space for activities pertaining to assembly of people at 219 Walnut Avenue; and WHEREAS, the zoning lot with the building containing the premises at 219 Walnut Avenue is legally described herein (the “Subject Property”); and WHEREAS, the Subject Property is located within the NB Neighborhood Business District, and a drinking place (alcoholic beverages), and a commercial event space for activities pertaining to assembly of people are listed as a conditional use within the NB Neighborhood Business District; and WHEREAS, the Planning & Zoning Commission conducted a public hearing concerning said application on October 7, 2019 following due notice including by publication; and WHEREAS, the Community Development Department and the Planning & Zoning Commission have submitted their Findings of Fact concerning said application; and WHEREAS, the Community Development Department and the Planning & Zoning Commission recommend approval in part of the application related to establishing a drinking place (alcoholic beverages), and denial in part of the application related to establishing a commercial event space for activities pertaining to assembly of people, subject to the conditions articulated below; and WHEREAS, following the public hearing by the Planning and Zoning Commission the applicant withdrew the request for conditional use approval to establish a commercial events space for activities pertaining to assembly of people, and WHEREAS, the City Council of the City of Elgin, Illinois, concurs with the findings and recommendations of the Community Development Department and the Planning & Zoning Commission; and WHEREAS, the City of Elgin is a home rule unit and as a home rule unit may exercise any power and perform any function pertaining to its government and affairs; and WHEREAS, zoning, including, but not limited to, this ordinance granting a conditional use in the NB Neighborhood Business District pertains to the government and affairs of the city. VOLUME LXXXIV NOVEMBER 6, 2019 499 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1. That the City Council of the City of Elgin hereby adopts the Findings of Fact, dated October 7, 2019, and the recommendations made by the Community Development Department and the Planning & Zoning Commission, a copy of which is attached hereto and made a part hereof by reference as Exhibit A. Section 2. That a conditional use for a drinking place (alcoholic beverages) is hereby granted for the property commonly known as 219 Walnut Avenue which is part of the property commonly identified by Kane County Property Index Number 06-23-232-002, and legally described as follows: Lot 1 in Block 13 of Lord’s Second Addition to Elgin, in the City of Elgin, Kane County, Illinois. (commonly known as 219-221 Walnut Avenue) Section 3. That the conditional use for the Subject Property as authorized by this ordinance shall be subject to the following additional conditions: 11. Substantial conformance to the Development Application submitted by Alexander Giannopoulos, as applicant, and Maxam LLC, as property owner, received May 21, 2019 and supporting documents including: a. Undated Statement of Purpose and Conformance, received May 21, 2019; b. Letter from Alex Giannopoulos, dated May 8, 2019; c. Letter from Alex Giannopoulos, dated June 18, 2019; d. Plat of Survey, prepared by Alan J. Coulson, P.C. Professional Land Surveyors, dated June 27, 2018; and e. Undated Proposed Floor Plan, prepared by John W. Roberson, Architect, received May 21, 2019, with such further revisions as required by the Community Development Director. In the event of any conflict between such documents and the terms of this ordinance or other applicable city ordinances, the terms of this ordinance or other applicable city ordinances shall supersede and control. 12. The sale of alcohol is limited to only 6:00 AM to 2:00 PM. 13. All street graphics must comply with the zoning ordinance requirements. 14. For the purpose of clarification, the applicant’s request for a conditional use approval to establish a commercial event space for activities pertaining to the assembly of people has been withdrawn and is not approved by this ordinance, notwithstanding any reference to the proposed commercial event space in the development application and NOVEMBER 6, 2019 VOLUME LXXXIV 500 supporting documents submitted by the applicant and/or in the documents referred to in the foregoing subsection 1 of Section 3 of this ordinance. 15. Compliance with all applicable codes and ordinances. Section 4. That this ordinance shall be full force and effect upon its passage in the manner provided by law. s/ David J. Kaptain David J. Kaptain, Mayor Presented: November 6, 2019 Passed: November 6, 2019 Omnibus Vote: Yeas: 9 Nays: 0 Recorded: November 6, 2019 Published: November 7, 2019 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk REPORTS/MINUTES RECEIVED AND ORDERED PLACED ON FILE Councilmember Shaw made a motion, seconded by Councilmember Martinez, to place the following reports and minutes on file. Upon a roll call vote: Yeas: Councilmembers Dixon, Lopez, Gavin, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. E-911 Board, September 19, 2019 Heritage Commission DRSC- October 8, 2019 Committee of the Whole, October 9, 2019 City Council Minutes, October 9, 2019 Electricity Tax Revenue Hotel/Motel Tax Revenue Natural Gas Tax Revenue Authorization for Payments ANNOUNCEMENTS Mayor Kaptain made announcements regarding forthcoming meetings. VOLUME LXXXIV NOVEMBER 6, 2019 501 ADJOURNMENT Councilmember Lopez made a motion, seconded by Councilmember Gavin, to adjourn the meeting. Upon a roll call vote: Yeas: Councilmembers Dixon, Gavin, Lopez, Martinez, Powell, Rauschenberger, Shaw, Steffen, and Mayor Kaptain. Nays: None. The meeting adjourned at 7:41 p.m. s/ Kimberly Dewis November 20, 2019 Kimberly Dewis, City Clerk Date Approved