McHenry County Blog

Morning came and the snow was high.

Snow half covered the dormer windows.

And, there was a beeping noise in the Skinner household.

It was in the basement next to the furnace.

The carbon monoxide detector.

The furnace was off, but why?

Expert in all sorts of things mechanical Marty Walter of Walter Alarm suggested that the pipes to the outside might be covered with snow and he was right.

The 7th graders dug out the exhaust and intake pipes.

NICOR redirected my call to the Lakewood Fire Department and a fire truck appeared.

Wading down the driveway toward the fire truck on Lake Avenue in Lakewood.

I sent my son and a friend down the driveway to show the firemen which house had made the call.

The boys returned with two firemen.

The boys accomplished their mission.

The firemen made sure the pipes were clear of snow.

The sleepover guys had already shoveled out the pipes, but the fireman made sure.

We were just the second call of the day.

Standing at the intersction of Meridian Street and Lake Avenue looking east, the only vehicle was the fire truck and it was parked.

Although the roads were passable, there was no traffic.

Looking west from Meridian Street, Lake Avenue, usually having plenty of commuter traffic after 7 AM, was empty.

Lakewood Fire Department

At its Tuesday night meeting in the village-owned Red Tail Golf Course trailer complex, the Lakewood Village Board voted to hire the Woodstock Fire Protection District to replace American Emergency Service Corporation.

The Gary Jensen firm, which provides privatized fire protection services, provided service to the village when the City of Crystal Lake wanted to charge an amount which village officials thought would eat up a disproportionate proportion of the budget.

Woodstock Fire Protection District Chief Ralph Webster attended the meeting to answer questions.

Crystal Lake wanted to charge an amount equal to the tax rate levied on city residents, even though the mix of buildings needing protection in Lakewood was far different than that in Crystal Lake.

One of my economics professors probably would have observed that Crystal Lake officials did not know the meaning of marginal cost, that they did not compare marginal cost with marginal benefit.

In other words, Crystal Lake could provide Lakewood with the fire protection its mainly homes needed for far less than it wanted to charge. The result of the break-up was that Crystal Lake’s Fire Department lost about $500,000 a year.

And the creation of an new Lakewood Fire Department.

Lakewood Village Board met in the Redtail Golf Course Club House and voted with out dissent to have the Woodstock Fire Protection District provide coverage.

Now, Lakewood village officials have cut a five-year deal with Woodstock’s fire department with a five-year automatic extension that allows the savings of $100,000 next year, despite the $120,000 buyout.

While that is good news for village coffers, the news was decidedly bad for the golf course.

That will be explained tomorrow.

Ken Santowski

Lakewood Village Trustees provides a public service to constituents who don’t attend village board meetings by jotting down his thoughts of what happened. Friday he covered the tax levy and dam in Turnberry, which is funded by a Special Service Area Assessment.

Saturday, the topic was the SportsPlex and the stimulus bonds to finance it.

Today, he discusses the village’s golf course and fire department.

Red Tail Golf Club

Incidentally, during the previous board meeting of October 26th the Retail Committee presented an option to replace the trailers with a permanent clubhouse.

I was impressed that the committee came back with a feasible, workable option. Based on the preliminary figures the new clubhouse would cost about $2.5M to build and the loan would be paid off using a lease back option and user fees.

The style and design have not been discussed in detail but the vision portrayed by the committee shows a simple yet productive use of space and materials to achieve the highest rate of return. More specific details will follow in the next coming months, especially since the last bond payment will be made in October 2011.

There has been a lot of discussion regarding the Fire Department, Sportscomplex and budgets.

Fire Department

As you read in the newspaper, the Lakewood Fire department could possibly be run by a different entity by the end of this year. Negotiations are still under way and we as a board have not yet voted on any change. Gary Jensen and AES have a valid contract through December 31st, 2011.

I, as a member of the board will be asked to make some tough decisions concerning every aspect of the village’s expenditures for 2011. We shall leave no area alone.

We will have to review every aspect, including public works, the police department and village staff.

Many decisions, some very unpopular, will have to be made during the budget process.

I invite you to attend these meetings. You have entrusted me to spend your money wisely and represent you at these meetings and I thank-you.

Kenneth M Santowski

As always you have been sent this email as a courtesy from me to you. You may share this with anyone you wish. You have the right to agree and disagree with me. If you disagree with my vote or my ideas, please contact me. After all I am YOUR public servant. I never give out your email address for any reason. If you no longer wish to receive correspondences from me simply ask and I shall remove your name immediately.Lakewood Trustee Shares Thoughts on Village Board Meeting.

Four years ago negotiations broke down between the City of Crystal Lake and the Village of Lakewood concerning fire protection.

Crystal Lake officials insisted that Lakewood residents pay an amount calculated by using the tax rate Crystal Lake residents pay.

Sounds reasonable, doesn’t it?

The problem was that, with projected increases, most of Lakewood’s budget would be eaten up by providing fire protection in the foreseeable future.

Because there were other essential services–police protection and snow removal come to mind–a more economical approach was sought.

And, one was found by contracting with Gary Jensen’ American Emergency Service Corporation.

And Crystal Lake officials, seemingly not understanding the concept of marginal income and marginal expense, lost about a half a million a year in revenue which most assuredly did not cost that much in expenses.

Here's the unostentatious Lakewood Fire Station.

The privatized bargain resulted in Lakewood having its own fire station (nothing that looks like a traditional fire station, but serviceable) and ownership of the fire equipment.

Now, after shopping around, Lakewood officials are on the verge of contracting with the Woodstock Fire Protection District for the five years beginning on January 1st.

Because there is one year left in the contract with Jensen’s firm, there will be some kind of a buyout. I would imagine that there would still be less total outlay than if the switch to Woodstock were not made.

I got an email from a fireman last night which expressed fears that all would lose their jobs.

According to the letter below, that is not automatically to be the case. I’m told supervisory personnel will not be officer positions in Woodstock, but regular firemen will have the chance to take the entry level test and, if successful, would be hired by Woodstock.

Because Woodstock is a union shop, anyone hired would undoubtedly be required to join.

But with Woodstock FPD employment would probably come better fringe benefits than are now offered.

The letter below from Village President Erin Smith says Lakewood residents will notice no differences.

The fire trucks will still have “Lakewood Fire Department” painted on their sides. The equipment will still be housed on Haligus Road.

RE: Lakewood Fire Department

Dear Resident:

Approximately four years ago, you received a letter from Village President Julie Richardson and the Board of Trustees regarding the creation of the Lakewood Fire Department. This announcement was the culmination of many months of study and discussion.

At midnight on January 1, 2007 the Lakewood Fire Department began to provide services to our residents. It was a proud and historic day for our community.

As you may recall from the original letter, the fire protection and paramedic services of the Lakewood Fire Department are being provided by American Emergency Services (AES). Under this business model, the Village of Lakewood owns the Fire Station on Haligus Road and all of the fire equipment.

A contractor provides the oversight and personnel for the daily operations. AES has acted with the utmost professionalism, and we will forever owe Gary Jensen a debt of gratitude for his pivotal role in the creation of the Lakewood Fire Department.

From the beginning of this endeavor, we contemplated that the contractual relationship would be reviewed periodically to ensure that the services were being provided in the most effective and cost efficient manner possible.

At this time, we have determined that the Woodstock Fire/Rescue District (WFRD) is best able to provide these services.

This is in no way a reflection of the quality of services being provided by AES. The WFRD simply has economies of scale that are not available to AES.

As proposed, the current firefighters and paramedics (not the supervisory staff) will keep their jobs and will be eligible to apply for full-time positions with the WFRD during the next testing cycle. For our residents, this transition will be seamless.

A Lakewood Fire Truck on Lake Avenue at Gate 10.

If emergency services are needed, a call will be made to 911 and a Lakewood Fire Department engine and ambulance will be dispatched to the scene. All parties are working towards a January 1, 2011 effective date.The WFRD will begin its formal deliberations of this proposal this week, and our Board of Trustees will consider the intergovernmental agreement at our meeting on December 14.

As always, please do not hesitate to contact me if you have questions regarding the changes at the Lakewood Fire Department.

Sincerely,

Erin Smith, Village President

John Pfeuffer

Dorothy Pfeuffer

It’s not often that a husband a wife serve on the same governmental body, but Dorothy and John Pfeuffer did so on the Lakewood Village Board.

They were elected in different election cycles.  John was in his first term, but Dorothy had been elected to a second term after her husband won a seat on the board.

Two months ago they put their home on the market. They were pretty surprised it sold so fast.

Now they are living with a son in Naperville.

The two resigned as of May 1st.

The Pfeuffers and Ken Santowski were often aligned together in votes that split 4-3.

Below is Dorothy Pfeuffer’s parting letter to her neighbors:

Dear Friends and Neighbors,

On a personal level, this is clearly the most difficult communication I have written to you. It has been my pleasure and an honor being chosen by you and serving as your Trustee on the Village of Lakewood Board. As many of you know we have sold our home and plan on relocating outside of the Village of Lakewood. In today’s market you literally come down to the wire to know you will close on the sale of your home, otherwise this communication would have come to you sooner.

Again, it has been a privilege and honor to represent you and I wish you and your family the best of luck in the future. I leave knowing that I have always put your best efforts first with all of my actions as Trustee. Whether it was

• voting to not increase taxes or fees, or
• standing in a flooded yard at 6:00 AM to find a solution to a drainage problem, or working with the McHenry County Chairman to install flashing stop signs at Lakewood and Ackman and
• especially being on the committee to choose and start up our own Lakewood Fire Department ( which was one of the proudest tasks I participated in)

please know that I have always put your safety and well being first.

In the 10+ years I have lived in Lakewood, it becomes clearer and clearer to me how fortunate I was to have met many wonderful people and to contribute to the growth of the community. Thank you for all of your support and friendship and please know that I will always be grateful that I had the opportunity to represent your voice in Lakewood. Please keep in touch our email stays the same and our cell number is 815-341-1177.

Warmest Regards,Dorothy

Following is John’s:

Dear Friends and Neighbors,On a personal level, this is clearly the most difficult communication I have written to you. It has been my pleasure and an honor being chosen by you and serving as your trustee on the Village of Lakewood Board. As many of you know we have sold our home and plan on relocating outside of the Village of Lakewood. In today’s market you literally come down to the wire to know you will close on the sale of your home, otherwise this communication would have come to you sooner.

Again, it has been a privilege and honor to represent you and I wish you and your family the best of luck in the future. I leave knowing that I have always put your best efforts first with all of my actions as Trustee. Whether it was

• voting to not increase taxes or fees, or
• standing in a flooded yard at 6:00 AM to find a solution to a drainage problem, or
• working with the McHenry County Chairman to install flashing stop signs at Lakewood and Ackman, or
• working with the Lakes Committee to represent your tax dollars and the beautification of the village,

please know that I have always put your safety and well being first.

In the 10+ years I have lived in Lakewood, it becomes clearer and clearer to me how fortunate I was to have met many wonderful people and to contribute to the growth of the community. Thank you for all of your support and friendship and please know that I will always be grateful that I had the opportunity to represent your voice in Lakewood. Please keep in touch, our email stays the same and our cell number is 815-341-1177.

Warmest Regards,

John

Lakewood Fire Department on Feb. 16, 2010.

The Lakewood Fire Department has been awarded $530,550.00 grant from the Assistance to Firefighters grant fund. We will be using this grant money to upgrade our communication equipment.

The money is from the Federal government.

The end of January Northwest Herald Editor Dan McCaleb got Lakewood Village President Erin Smith to say that “in the future” Lakewood might be willing to discuss returning its fire protection to the Crystal Lake Fire Department. (The link provided is is not a link to the story; it’s a link to a page that will allow you buy the story for $2.95, if you so desire.)

For as long as I can remember (back to 1958 in McHenry County), Lakewood’s fire protection was provided by Crystal Lake.

But a couple of years ago Crystal Lake proposed a pricing structure that would have eventually eaten up Lakewood’s entire budget,.

While fire protection is important, Lakewood residents also value snow removal, road repair and police protection. Some even want a bicycle path and algae removal.

So the village staff and board did some hard-nosed cost-benefit analysis and concluded that it could start its own fire department, run by a private firm, American Emergency Service Corporation, and save money after the second year.

Lakewood now has begun the fourth year of a five-year contract for privatized service. Twenty-two months are left.

The Lakewood Village Board before it went into Executive Session Tuesday night. From left to right, you see Village Trustees Carl Davis, John Pfeuffer and Gene Furey,Village Clerk Janice Hansen and Village President Erin Smith.

But “the future” mentioned in McCaleb’s column is now.

The rest of the Lakewood Village Board before closing doors on the public to discuss litigation and personnel. From left to right are Village Manager Catherine Peterson, Village Attorney Richard Flood and Village Trustees Kenneth Santowsk, Dorothy Pfeuffer and John Burton.

At the Tuesday before last’s closed session to discuss litigation, the Lakewood Village Board talked about settling the suit with Crystal Lake over disputed non-payment for fire protection service and returning to the fire protection umbrella of Crystal Lake.

Crystal Lake has lost about $750,000 in revenue each year because of Lakewood’s pull-out.

On a 6-1 vote (Jeff Thorsen voting “No”), it has raised its city sales tax rate by 75% at Mayor Aaron Shepley’s behest.

Crystal Lake First Station nearest to Lakewood

Empty stores are everywhere.

Clearly Crystal Lake would love to have Lakewood return to its fire protection foal.

But, unlike the headline on McCaleb’s column, it’s more about the money than the good government goal of shared services.

Bryn Mawr subdivision sign on Route 176 near Route 47

(Logic would say that the Lakewood fire station should serve the subdivision in Crystal Lake that is closer to Route 47 than Route 14.

(Likewise, the Crystal Lake Fire station on Bard Road should be protecting Country Club Additions, Turnberry and other nearby Lakewood subdivisions.

(But, logic doesn’t always work in local governmental relations.)

Lakewood Fire Department on Haligus Road near Route 176

Before Crystal Lake wanted to charge Lakewood residents the same tax rate that Crystal Lake residents and businesses paid. Just as Lakewood residents would pay for Crystal Lake library services.

The city would not recognize that the mix of buildings in Lakewood is markedly different from that in Crystal Lake.

Lakewood does not have much business property. No high rise hotels.

Lakewood does not need all of the equipment that Crystal Lake needs to protect its large corporate structures.

In the past, Crystal Lake officials have failed to understand the concepts of marginal costs and marginal revenue.

The marginal cost of providing fire protection to Lakewood is low.

Any extra revenue is almost pure gravy.

Now, it may not seem fair to some city council folks that homeowners in Lakewood would pay less than those in Crystal Lake.

I can tell you it doesn’t seem fair to me that Crystal Lake gets to keep all my sales tax.

So, where one lives has advantages and disadvantages.

But getting “less” than one wants for something may be worth thinking about.

And maybe Crystal Lake is having such thoughts now that it thinks it has a stretched thin budget.

Main Crystal Lake Fire Station

Right not the city budget is getting less than “less,” that is, nothing.

That resulted from a misconception of its bargaining position, of thinking Crystal Lake thought it had all the fire protection marbles in town.

Obviously, Lakewood came up with a satisfactory solution.

But, now the two sides are back at the bargaining table again.

And, it appears serious discussions are taking place.

I can’t imagine more isn’t on the table that fire protection. After all, what Lakewood has in place seems to be working well.

There has to be a third leg to the negotiations. Maybe even a fourth leg.

From left to right, Council members Ellen Brady Mueller, Ralph Dawson, Cathy Ferguson, Attorney John Cowlin, City Manager Gary Mayerhofer, Mayor Aaron Shepley, City Clerk Nick Kachiroubas, and Council members Brett Hopkins, Carolyn Schofield and Jeff Thorsen.

I would observe that if Crystal Lake wants to settle the suit, maybe Crystal Lake is not so sure it can win its collection case against Lakewood.

Likewise, if Lakewood wants to settle the suit, maybe Lakewood is not so sure it can emerge victorious.

It’s been my experience when one side of a lawsuit wants to settle, they are nervous about the outcome of their case.

What will the resolution be?

It certainly will be discussed in public if the contract with American Emergency Service Corporation (Lakewood’s fire protection firm) is to be amended.  I am not aware that contract changes can be kept out of an open meeting.

And, any lawsuit settlement will have to be at least voted upon in public, while it may be discussed in private by both ruling bodies.

Last night the sunset over Crystal Lake was magnificent.

It was storming hard when I picked up my son at South Elementary School at 3:45.

But, it cleared up enough for a great sunset.

I was standing on the shore and a pier at Lakewood’s Gate 7 taking pictures.

The view just kept getting better and better.

There was a strong wind from the northeast that had blown foam up on the grass, so it was not warm.

And there I was standing in a short sleeve shirt and shorts..

Although the wind chill factor must have been in the 40′s it was worth it.

For at least a half hour.

In the middle picture the sun’s reflection off Crystal Lake’s surface almost looks like the moon.

In the bottom picture, my color blind eyes told me that it looked Arizona.

Erin Smith and John O’Hara are running for the Lakewood village presidency being vacated by Julie Richardson.

For the three village trustee vacancies, only three have filed petitions:

Dorothy Pfeuffer (incumbent)
John Burton (incumbent)
Eugene Furey

The fire engine is from the Lakewood Fire Department. The department was created January 1, 2007, as a result of the Crystal Lake City Council’s deciding to charge Lakewood based on something other than the marginal cost of providing the service. The result was the creation of a hole in Crystal Lake’s budget.

Crystal Lake officials argued that Lakewood residents should pay on the same basis as its own taxpayers did. That sounds reasonable, except that Lakewood is mainly composed of residential property whose fire protection does not cost as much to provide as it does for homes, plus commercial and industrial properties.

Lakewood officials figured out that they could provide their own fire protection for less money over the long-run than it would cost to continue buying the service from Crystal Lake.

The result is less than a logical way to provide public service.

Eventually, Crystal Lake officials will overcome their resentment of Lakewood’s decision and agree that Lakewood’s fire engines should serve Ryland Homes’ Bryn Mawr subdivision. In exchange, the Crystal Lake Fire Department could serve the Country Club Additions part of Lakewood (where we live).

Erin Smith and John O’Hara are running for the Lakewood village presidency being vacated by Julie Richardson.

For the three village trustee vacancies, only three have filed petitions:

Dorothy Pfeuffer (incumbent)
John Burton (incumbent)
Eugene Furey

The fire engine is from the Lakewood Fire Department. The department was created January 1, 2007, as a result of the Crystal Lake City Council’s deciding to charge Lakewood based on something other than the marginal cost of providing the service. The result was the creation of a hole in Crystal Lake’s budget.

Crystal Lake officials argued that Lakewood residents should pay on the same basis as its own taxpayers did. That sounds reasonable, except that Lakewood is mainly composed of residential property whose fire protection does not cost as much to provide as it does for homes, plus commercial and industrial properties.

Lakewood officials figured out that they could provide their own fire protection for less money over the long-run than it would cost to continue buying the service from Crystal Lake.

The result is less than a logical way to provide public service.

Eventually, Crystal Lake officials will overcome their resentment of Lakewood’s decision and agree that Lakewood’s fire engines should serve Ryland Homes’ Bryn Mawr subdivision. In exchange, the Crystal Lake Fire Department could serve the Country Club Additions part of Lakewood (where we live).