Lake County Gazette

City of Lake Forest City Council met Nov.7.

Here is the agenda provided by the council:

CALL TO ORDER AND ROLL CALL 6:30 pm

PLEDGE OF ALLEGIANCE

REPORTS OF CITY OFFICERS

1. COMMENTS BY MAYOR

A. Introduction of Niamh Bruce, Mayor for a Day

B. GFOA Triple Crown Award Presentation and Recognition of Finance

Department

2. COMMENTS BY THE CITY MANAGER

A. Community Spotlight

- Native Voices Initiative

Carol Summerfield, Lake Forest Lake Bluff History Center

B. Public Works Capital Projects Recap

-Michael Thomas, Director of Public Works

C. Looking Forward – Planning for the Future of Our Central Business District -Introduction of Website

-Upcoming Community Workshop

3. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL

4. COMMITTEE REPORTS

AUDIT COMMITTEE REPORT

1. Audit Committee Report and Presentation of the Fiscal Year 2022 Annual Comprehensive Financial Report

PRESENTED BY: Tara Janos, Audit Committee Chair

STAFF CONTACT: Diane Hall, Assistant Finance Director (847-810-3614)

PURPOSE AND ACTION REQUESTED: Staff requests receipt of the audit report for the fiscal year ended April 30, 2022.

BACKGROUND/DISCUSSION: The Annual Comprehensive Financial Report for the fiscal year ended April 30, 2022 is provided beginning on page 14. A bound copy of the report is available upon request and an electronic copy will be made available on the City web site following City Council acceptance of the report. The document has been reviewed by the Audit Committee with Baker Tilly Virchow Krause, the City’s independent audit firm, and has been accepted by the Audit Committee. The City has received an unmodified opinion on its Fiscal Year 2022 financial statements.

The City has been awarded the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for forty-three (43) consecutive years. This year’s report will once again be submitted to GFOA for consideration of this award.

The Audit Committee met four times in 2022 and highlights of those meetings as well as the audit report will be presented this evening by Audit Committee Chair Tara Janos.

COUNCIL ACTION: Receipt of the audit report for the fiscal year ended April 30, 2022.

5. ITEMS FOR OMNIBUS VOTE CONSIDERATION

1. Approval of October 17, 2022, City Council Meeting Minutes

A copy of the minutes can be found beginning on page 206.

COUNCIL ACTION: Approval of October 17, 2022, City Council Meeting Minutes 2. Approval of the Check Register for the Period of September 24 – October 28, 2022 STAFF CONTACT: Elizabeth Holleb, Finance Director (847-810-3612)

BACKGROUND/DISCUSSION: City Code Section 38.02 sets forth payment procedures of the City. The Director of Finance is to prepare a monthly summary of all warrants to be drawn on the City treasury for the payment of all sums due from the City (including all warrants relating to payroll and invoice payments) by fund and shall prepare a detailed list of invoice payments which denotes the person to whom the warrant is payable. The warrant list detail of invoice payments shall be presented for review to the Chairperson of the City Council Finance Committee for review and recommendation. All items on the warrant list detail recommended for payment by the Finance Committee Chairperson shall be presented in summary form to the City Council for approval or ratification. Any member of the City Council shall, upon request to the City Manager or Director of Finance, receive a copy of the warrant list detail as recommended by the Finance Committee Chairperson. The City Council may approve the warrant list as so recommended by the Finance Committee Chairperson by a concurrence of the majority of the City Council as recorded through a roll call vote.

The Council action requested is to ratify the payments as summarized below. The associated payroll and invoice payments have been released during the check register period noted.

The subtotal labeled “All other Funds” includes Self Insurance Fund Medical/Dental claims expenses of $863,428.

COUNCIL ACTION: Approval of the Check Register for the Period of September 24 – October 28, 2022

3. Approval of Health Insurance Contract Renewals for Calendar Year 2023

STAFF CONTACT: Amber Campbell, Director of Human Resources (847-810-3532)

PURPOSE AND ACTION REQUESTED: PCA Committee and staff are recommending the following renewals of the City’s various health insurance vendors:

The City provides a self-funded medical and dental plan and insured life insurance, transplant coverage, and reinsurance (stop loss) for large claims and total liability. The cost is determined by forecasts based on actual claims, fixed costs for administration, reinsurance, and costs for life insurance. The City periodically requests bids for administration and stop loss insurance. Staff is preparing to conduct a more comprehensive review of benefit plan alternatives in FY24. Human Resources is not recommending changes this year for strategic considerations as the plan is meeting expectations.

Cigna has provided Life Insurance since 2004, providing a contract that allows for a custom designed package developed with Benefit Committee input of employer provided insurance, and supplemental coverage that is able to be continued after leaving the City. The City has a contract which automatically renews. No premium increase has been received, although Cigna has the ability to change the rate with advance notice. The contract was last bid in 2014, and Cigna remained the best option. The costs are determined on a pooled basis, and were last changed in 2018.

The City purchases Stop Loss insurance for individual claims and total plan liability. Insurance consultant Wright Benefit Strategies (WBS) recommended bidding stop loss this year after a full RFP and moving to Sun Life effective in 2021. We typically bid this service approximately every two to three years, as more bidding and changing carriers reduces leverage in negotiations in difficult claim years and puts the City at greater risk of large exclusions, rate increases, or both. The City contracts administration services and PPO Managed Care services through PBA, which includes Cigna PPO. Staff is recommending retaining PBA and Cigna managed care services.

The City contracts with Asset Health to manage our Think Healthy Wellness plan programming and website, which employees use to access learning, resources and tracking tools. Staff recommends retaining Asset Health for a successive one-year term.

Bidding other services is not recommended at this time due to existing multi-year contracts, favorable renewals and contractual features relating to our benefit structure.

BUDGET/FISCAL IMPACT: Recommendations based on renewal quotes:

• Retain Cigna for Life Insurance Coverage Cigna provides a unique contract design and is meeting expectations. Cigna has not provided notice of renewal.

• Retain Professional Benefit Administrators (PBA) for Administration and Billing Services PBA bills per capita fees, including Cigna PPO fees. The fee increase reflects additional services required by the No Surprises Act, requiring the Plan to disclose reimbursement rates for services, among other requirements. PBA is a low-cost provider for administration of the City health and dental plan, including claims administration and coordination of medical plan services and the City flexible spending account. WBS bid TPA services in 2020, and PBA’s cost were low in comparison to bids. Staff and the City’s insurance consultant recommend retaining PBA based on their service and the nature of the City’s benefit structure. PBA is meeting expectations.

• Retain preferred provider network administration with CIGNA through PBA Cigna provides networks and managed care services through a contracted relationship with PBA. CIGNA provides broad access and favorable discounts. Services are meeting expectations.

• Change to Symetra for Stop Loss Coverage and Retain Optum Health for Transplant coverage. WBS manages placement of Specific reinsurance for large claims and Aggregate reinsurance for total claims in a calendar year. The City entered a new contract with Sun Life in 2021. WBS recommended bidding stop loss coverage for the 2023 plan year. Three carriers provided bids below Sun Life. Sun Life is requesting an increase in premiums, while Symetra provided a bid that will reduce stop loss premiums from the current level, and reduce assumed risk by the City. WBS recommends moving to Symetra for stop loss coverage at the $170,000 deductible. Optum provides a separate Transplant policy, which helps protect the Stop Loss experience by carving out transplant expenses. Optum rates are increasing 6%, the first increase since 2020. WBS recommends retaining Optum carve out coverage.

• Retain Serve You Rx Pharmacy Benefit Administration for Prescription Drug Card for an additional one-year term. Serve You Pharmacy Card services are provided through a contract that renews annually. The City last bid this coverage in 2018, and Serve You provided the most favorable contract. WBS negotiated an increase in discounts, and rebates for 2023. The changes are expected to reduce costs through better discounts and increased rebates. Serve You services are meeting expectations. Staff and the City’s benefit consultant WBS recommend retaining Serve You.

• Retain Asset Health services for Think Healthy Wellness Program

Staff is recommending renewing the contract for wellness services through Asset Health, a leading provider of wellness technology and administration for 1 million members including fortune 500 companies. Asset Health provides consulting, participant administration through a website, health and wellbeing learning exercises, activity “challenges” (time sensitive activities designed to reinforce positive behaviors linked to improved health), as well education by self-determined and programmatic learning. The services are meeting expectations for reduced staff time in administration, improved communication, and education resources available to participants, while reducing health cost growth over time. The service has been well received by employees and is actively managed through our Employee Wellness Committee. Through reporting from Asset Heath and the City’s health plan, WBS has observed that costs may be trending lower than other employers through reduced utilization. Results suggest the City continues to see positive behavioral change and lower health plan utilization particularly for drugs compared to other plans. Participation is widespread among employees. The City did not bid the service this year due to the unique and integrated nature of the service to the relatively new Think Healthy wellness program, which has been in its current form since 2018.

o Retain Benistar Medicare Supplement and Part D Plans as Retiree Benefit Effective since 2018, the City makes available a separate fully insured Retiree Medical and Drug program for retirees eligible for Medicare through Benistar. Retirees pay 100% of the cost. The City provides billing remittance and Benistar provides customer service and coordination of a Harford Medicare Supplement Plan, and an Express Scripts Part D prescription drug plan. This policy is less costly for retirees over 65 and is fully insured, so the city has no liability. The plans are subject to annual cost adjustments for Medicare Supplement and Part D Drug Coverage. Staff recommends continuing to offer this coverage.

Has City staff obtained competitive pricing for proposed goods/services? NO If no, indicate the specific exception or waiver requested:

Administrative Directive 3-5, Section 6.1I – Existing Relationship

COUNCIL ACTION: Approval of Health Insurance Contract Renewals for Calendar Year 2023

4. Approval of the FY23 Personnel Policies and Practices

STAFF CONTACT: Amber Campbell, Director of Human Resources (847-810-3532)

PURPOSE AND ACTION REQUESTED: The Personnel Compensation Administration (PCA) Committee is seeking City Council approval of the FY23 Personnel Policies.

BACKGROUND/DISCUSSION: As a part of the FY23 budget process City Council approved the recommendation to increase the amount paid for 20+ years of service from $75 to $90 per year of service. The Police MAP contract effective FY22-FY25 adjusted longevity and for 20+ years of service from $75 to $90 per year of service.

BUDGET/FISCAL IMPACT: The budget impact for employees with 20+ years of service is $22,777 and is included in the current FY23 budget.

COUNCIL ACTION: Approval of the FY23 Personnel Policies and Practices Changes

5. Approval of Revised Employment Agreement for City Manager Wicha STAFF CONTACT: Amber Campbell, Director of Human Resources, 847-810-3530

PURPOSE AND ACTION REQUESTED: Consistent with recent Mayor and City Council discussion, approval of an updated Employment Agreement for City Manager Jason Wicha is requested.

BACKGROUND/DISCUSSION: The City Manager’s current Employment Agreement, which was most recently revised in July 2020, includes a City residency requirement with a corresponding residence loan. In recognition of City Manager Wicha’s performance and years of service to the City, the amended Employment Agreement provides a gradual annual reduction in the balance of the residence loan through May 1, 2032, contingent upon City Manager Wicha’s continued employment with the City.

In addition, the City Manager’s annual salary is being adjusted to be consistent with the mid range of salaries in comparable communities, which reflects the City Council’s broader guidance on employee compensation.

BUDGET/FISCAL IMPACT:

Sufficient funding is available within the FY23 budget for the salary adjustment and loan forgiveness. Beginning on page 210 of your packet is a copy of the revised Employment Agreement.

COUNCIL ACTION: Approval of Revised Employment Agreement for City Manager Wicha

6. Approve the contract to Camp Nageela Midwest, dba Camp Henry Horner in the amount of $35,000.

STAFF CONTACT: Todd Nahigian, CROYA Manager 810-3982

PURPOSE AND ACTION REQUESTED: The CROYA Board and Staff are recommending approval of a contract with Camp Nageela Midwest, dba Camp Henry Horner in the amount of $35,000.

BACKGROUND/DISCUSSION: CROYA High School weekend Retreats date back to 1987 with over 5,000 high school students attending over 30 years. CROYA youth and staff consider the Retreats the most meaningful and impactful programs CROYA provides. Over the years, the CROYA Staff has investigated multiple camps in Illinois and Wisconsin, after a previously attended camp stopped hosting groups during the school year. CROYA staff found Camp Henry Horner in Ingleside, IL, which provides the highest quality experience while maintaining reliability. CROYA began attending Camp Henry Horner in the Fall of 2016, and has continued this valuable tradition. Their facilities, location, service quality, price and overall experience are a great fit for CROYA. The Camp Henry Horner staff is accessible and responsive to our needs. The total cost of the two annual retreats has typically been below $25,000. In FY2022, City Council approved CROYA’s request of $30,000 for the 2 Retreats. This was necessary because we increased the number of participants and the costs went up. The circumstances are similar this year, as the cost of the Fall, 2022 and Spring, 2023 Retreats will be over $25,000.

BUDGET/FISCAL IMPACT: CROYA currently charges students $180 each to attend a Retreat. Revenue for the 2 Retreats during this fiscal year is estimated to be $30,000. There are other expenses for the retreat, but I wanted to acknowledge that the cost of the Retreat site, lodging and meals is commensurate with the revenue CROYA receives.

Has City staff obtained competitive pricing for proposed goods/services? No

Administrative Directive 3-5, Section 6.1I – Existing Relationship

COUNCIL ACTION: Approval of the contract to Camp Nageela Midwest, dba Camp Henry Horner in the amount of $35,000

7. Consideration of a Request to Waive the Fidelity Bond Requirement in Connection with Holding a Raffle in the City of Lake Forest for Lake Forest College Chapter of the American Marketing Association and Lake Forest College Athletics (Approval by Motion)

STAFF CONTACT: Margaret Boyer, City Clerk (847.810.3674)

PURPOSE AND ACTION REQUESTED: Staff requests City Council consideration of waiving the fidelity bond requirement in connection with a proposed raffle from Lake Forest College Chapter of the American Marketing Association and Lake Forest College Athletics.

BACKGROUND: In January 2020 the City Council approved an Ordinance Amending Chapter 110, titled “Licenses and Miscellaneous” related to Raffles, to align these sections with recent State of Illinois Legislation. Section 110.0149, J, allows the raffle manager designated by the organization to seek a waiver of the bond requirement from the City Council.

At this time Lake Forest College Chapter of the American Marketing Association and Lake Forest College Athletics are requesting a waiver of the bond requirement and has submitted a request. A copy of the requests can be found beginning on page 215

BUDGET/FISCAL IMPACT: N/A

COUNCIL ACTION: Consideration of a Request to Waive the Fidelity Bond Requirement in Connection with Holding a Raffle in the City of Lake Forest for Lake Forest College Chapter of the American Marketing Association and Lake Forest College Athletics. (Approval by Motion)

8. Determination of a Non-Binding Estimate of the Amount of Revenue to be Generated from Property Taxes for the 2022 Calendar Year and Establishment of December 5, 2022 as a Public Hearing Date (if required) in Accordance with the Truth in Taxation Statute

STAFF CONTACT: Elizabeth Holleb, Finance Director (847-810-3612)

PURPOSE AND ACTION REQUESTED: Staff requests City Council approval of a non-binding estimate of the amount of revenue to be generated from property taxes in calendar year 2022 and setting of a public hearing date if this estimate exceeds 105% of the prior year’s tax extension in accordance with State Statutes.

BACKGROUND/DISCUSSION: Under the Truth in Taxation Act, the City Council is required to determine the estimated amount of money to be raised by taxation twenty (20) days prior to the adoption of the annual tax levy. The amount determined is an estimate, and may be increased or decreased under the statute, provided that any increase does not exceed 105% of the prior year’s tax extension without the required notice and public hearing. This estimate is preliminary and initiates the public process for the 2022 tax levy by establishing an estimated amount from which staff can prepare a proposed levy ordinance.

The 2022 property tax levy estimate, as considered by the Finance Committee on October 17, is as follows:

The tax levy cap applicable to the 2022 tax levy is 5.0%. The 2022 tax levy estimate reflects:

• Assessed valuation estimates provided by the Lake County Assessor’s Office (up 2.4%),

• Required funding for police and fire pension purposes as established by a 4/30/22 independent actuarial valuation and reflecting the Pension Funding Policy approved 8/3/20, as well as additional funding as recommended by the Lake Forest Pension Subcommittee to accelerate implementation of the 15-year open amortization model,

• Required debt service levy amounts as established by bond ordinances approved at the time of debt issuance,

• Capital Improvements Fund levy consistent with FY23-27 Five-Year Forecast, increased by $350,000 to phase in impacts of potential future bond issue for athletic field improvements,

• 5.0% PTELL increase on library and parks/recreation levy line items which have consistently been limited to PTELL, and

• An estimate of new growth, which impacts the General Fund and Library operating levies.

Based on the preliminary estimate, a public hearing would not be required under the Truth in Taxation Act.

A discussion regarding the 2022 tax levy is scheduled for the November 14 Finance Committee budget workshop. The tax levy ordinance will be considered by the City Council on November 21 and again on December 5, 2022.

COUNCIL ACTION: Determination of a Non-Binding Estimate of the Amount of Revenue to be Generated from Property Taxes for the 2022 Calendar Year and Establishment of December 5, 2022 as a Public Hearing Date (if required) in Accordance with the Truth in Taxation Statute.

9. Consideration of an Ordinance Approving a Recommendation from the Building Review Board. (First Reading, and if Desired by the City Council, Final Approval)

STAFF CONTACT: Catherine Czerniak,

Director of Community Development (810-3504)

PURPOSE AND ACTION REQUESTED: The following recommendation from the Building Review Board is presented to the City Council for consideration as part of the Omnibus Agenda.

BACKGROUND/DISCUSSION:

549 King Muir Road – The Building Review Board recommended approval of a building scale variance to allow the addition of a mudroom and covered entrance at the rear of the home. No public testimony was presented to the Board on this petition. (Board vote: 6 - 0, approved)

The Ordinance approving the petition as recommended by the Building Review Board, with key exhibits attached, is included in the Council packet beginning on page 217. The Ordinance, complete with all exhibits, is available for review in the Community Development Department.

COUNCIL ACTION: If determined to be appropriate by the City Council, waive first reading and grant final approval of the Ordinance approving the petition in accordance with the Building Review Board’s recommendation.

COUNCIL ACTION: Approval of the nine (9) omnibus items as presented.

6. OLD BUSINESS

7. NEW BUSINESS

8. ADDITIONAL ITEMS FOR DISCUSSION/ COMMENTS BY COUNCIL MEMBERS

1. EXECUTIVE SESSION pursuant to 5ILCS120/2(c), 11 The City Council will be discussing pending litigation

Adjournment into Executive Session

Reconvene into Regular Session

9. ADJOURNMENT

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