HomeMy WebLinkAbout2017-03-27 Agendav
MORTON GROVE
Incredibly Close ,• Amazingly Open
VILLAGE BOARD OF TRUSTEES
REGULAR MEETING NOTICE/AGENDA
TO BE FIELD AT THE RICHARD T_ FLICKINGER MUNICIPAL CENTER
SCANLON CONFERENCE ROOM
March 27, 2017
6:00 pm
(The hour between 6:00 and 7.:00 pm is set aside for Executive Session
per 1-5-7A of the Village of Morton Grove Municipal Code.
If the Agenda does not include an Executive Session, the meeting will begin at 7:00 pm.)
Call to Order
Pledge of Allegiance
Executive Session — Six Month Review of Executive Session Minutes
THE BALANCE OF THE MEETING SHALL COMMENCE AT 7:00 PM
IN THE COUNCIL CHAMBERS
OF THE RICHARD T. FLICKINGER MUNICIPAL CENTER
4. Reconvene Meeting
5. Pledge of Allegiance
6. Roll Call
7. Approval of Minutes — Regular Meeting —March 13, 2017
8. Special Reports
9. Public Hearings
10. Residents' Comments (agenda items only)
11. President's Report — Administration, Northwest Municipal Conference, Council of Mayors, Strategic
Plan, Comprehensive Plan
12. Clerk's Report — Community Relations Commission
13. Staff Reports
a. Village Administrator
1) Miscellaneous Reports and Updates
b. Corporation Counsel
14. Reports by Trustees
a. Trustee Grear -- Police Department, Community and Economic Development Department, Fire
and Police Commission, Police Facility Committee, NIPSTA, Lehigh/Ferris TIF, Prairie View
TIF, Special Events Commission (Trustee Witko)
b. Trustee Minx — Natural Resource Commission, Plan Commission/Zoning Board of Appeals,
Building Department (Trustee Pietranj
1) Ordinance 17-04 (Introduced March 13, 2017) (Second Reading)
Approving a Minor Amendment to a Special Use Permit for a Drive -Through Facility for
a New Restaurant at 9480 Waukegan Road
c. Trustee Pietron —Public Works Department, Condominiurn Association, Economic
Development Commission, Dempster Street Corridor Plan, Chamber of Commerce (Trustee
Minx)
d. Trustee Ramos — Legal, Finance Advisory Commission, Traffic Safety Commission, Waukegan
Road TIF, Capital Projects (Trustee Thill)
e. Trustee Thill — Fire Department, Emergency Management Agency, RED Center, Environmental
Health, Solid Waste Agency of Northern Cook County, Appearance Commission, Advisory
Commission on Aging (Trustee Ramos)
1) Resolution 17-19 (Introduced March 27, 2017)
Authorizing the Funding for the Extension of an Existing Contract for Maintenance of a
Municipally Owned Wireless Fire Alarm Network
f. Trustee Witko — IT Communications, Strategic Plan Committee, Finance Department, Family
and Senior Services Department (Trustee Grear)
1) Resolution 17-20 (Introduced March 27, 2017)
Authorizing the Approval and Execution of an Agreement for Municipal Finance
Advisory Services Related to the Implementation and Financing of a New Water Supply
Delivery System with the City of Evanston as Water Supplier (Villages of Morton Grove
and Niles, and Speer Financial, Inc.)
15. Other Business
16. Presentation of Warrants $758,108.44
17. Residents' Comments
18. Executive Session — Personnel Matters, Labor Negotiations, Pending Litigation, and Real Estate
19. Adjournment - To ensure full accessibility and equal participation for all interested citizens, individuals with disabilities
who plan to attend and who require certain accommodations in order to observe and/or participate in this meeting, or who
have questions regarding the accessibility of these facilities, are requested to contact Susan or Marlene (847/470-5220
promptly to allow the Village to make reasonable accommodations.
MINUTES OF A REGULAR MEETING OF THE PRESIDENT
AND THE BOARD OF TRUSTEES OF THE VILLAGE OF MORTON GROVE
COOK COUNTY, ILLINOIS, HELD AT THE
RICHARD T. FLICKINGER MUNICIPAL CENTER
flIARCH 13, 2017
CALL TO ORDER
I — Village President Dan DiMaria called the meeting to order at 7:00 pm. in the Council
V. Chambers of Village Hall, and led the assemblage in the Pledge of Allegiance,
VI. Village Clerk Connie Travis called the roll. Present were: Trustees Bill Grear, Rita Minx,
John Pietron, Ed Ramos, John Thiil, and Janine Witko.
APPROVAL OF MINUTES
Regarding the February 27, 2017 Regular Board Meeting, Trustee Minx moved to approve
the Minutes as presented, seconded by Trustee Thill. Motion passed unanimously via
voice vote.
VIII.
1.
a.
SPECIAL REPORTS
Announcement of the "Dine Morton Grove" Contest Winners
Mayor DiMaria asked Village Administrator Ralph Czerwinski to pick 10 winners who would
receive $25 gift certificates for participating in the "Dine Morton Grove" contest. Mr. Czerwinski
asked each member of the Board to draw a name, with the Mayor and Clerk each drawing a
second name. The winners were:
• Richard Zimny
• Jessica Eisenberg
• Donna Ratner (won 3 gift certificates)
• Pat Pearson
• Vicki Zimny
• Susan Filerman
• Scott DiBasilio
• Jeff Schorsch
Mr. Czerwinski thanked everyone who participated, and said the winners would have their
certificates mailed to them.
Mayor DiMaria encouraged everyone to shop locally and dine locally—even without a contest!
Minutes of March 13, 2017 Board Meeting
VIII.
SPECIAL REPORTS (continued)
2. Presentation of the Illinois Law Enforcement Accreditation Program Award
a. Mayor DiMaria introduced Chief James Black of the Crystal Lake Police Department, here today
representing the Illinois Association of Chiefs of Police to present the Illinois Law Enforcement
Tier 2 Accreditation award to Chief Michael Simo and Accreditation Manager, Commander
Paul Yaras.
b.
c.
d.
Chief Black said he has known Chief Simo for the past 10 years, adding that he was honored
to present this award to him this evening. He said that the accreditation program is designed
for law enforcement agencies to attain excellence in policing, and Tier 2 status is the highest
level of achievement, In order to attain this status, the Morton Grove Police Department had
to provide that they complied with over 180 law enforcement standards pertaining to
Administration, Operations, Personnel, and Training. It was an 18 -month process, during
which the department's policies and operations were reviewed to ensure compliance, while
pre -inspections were performed with the assistance of other accredited law enforcement
agencies to assist in preparation for the two-day on-site inspection, which included ride-alongs.
Only seven minor discrepancies were found, and they were addressed while the on-site
assessors were present.
Chief Black said that Morton Grove is ane of 25 Police Department in the State of Illinois
that has achieved this level of accreditation. It is a sign of adherence to best practices and
transparency,
Chief Simo thanked Chief Black for coming tonight in the inclement weather. He said that
achieving this accreditation was a team effort and it will continue. He complimented
Commander Yaras who coordinated these efforts from start to finish. Chief Simo introduced
the other members of the MGPD's leadership team: Commander Mike Weitzel, Defensive
Tactics Training; Commander Ed Pankc, Evidence Technicians, Commander Dan Stueber,
Firearms Training and Overall Training Coordinator; and Deputy Chiefs Norm Stromberg and
Brian Fennelly. Chief Simo thanked each of these men, as well as Mayor DiMaria, Board liaison
Trustee Grear, the other Board members, and Administrator Czerwinski for their faith in and
support of the Morton Grove Police Department.
e. Trustee Minx congratulated Chief Simo and the Department on this prestigious award_ She said
she knew the tremendous hours of effort and preparedness it took, and said that this shows our
Police Department's dedication. She gave a heartfelt thanks to all.
f. Mayor DiMaria said that he and the Board are always here to support the Police Department,
adding that he's extremely proud of the Department. The mayor said the Village is blessed to
have this dedicated group of men and women, and complimented the Department on this
outstanding accomplishment.
3. Announcement of the Winners of the Winter Photo Contest
a.
b.
In the absence of Chairperson Arcelia Pimentel, who was not feeling well, Community Relations
Commissioners Janice Cha and Robert Burkhart joined Board liaison Connie Travis to
congratulate the winners of the Winter Photo Contest.
Clerk Travis briefly reviewed the Commission's mission and then announced the winners of the
Winter Photo Contest:
2
VIII.
c.
Minutes of March 13, 2417 Board Meetin
SPECIAL REPORTS (continued)
Sascha Hedjbeii, Shalini Patel, Petra Maton, and Sandra Covey, with Sascha Hedjbeli named as the
overall winter.
d. The Board and assemblage congratulated the winners who were present. The winning photos have
been matted and framed and will be on display at the Morton Grove Village Hall for the next several
months.
e. Clerk Travis said the Community Relations Commission would be sponsoring a Spring Photo
Contest, to be held from April 3 to June 3, 2017. Residents can submit up to five photos at Village
Hall or at crcmortongroveil.orq.
Clerk Travis said the Commission currently has 11 members but they're always looking for more.
The Commission meets the second Tuesday of every month at 6:30 p.m. in the Scanlon Conference
Room at Village Hall. Their next meeting is tomorrow night.
g. Mayor DiMaria thanked Clerk Travis and Commissioners Cha and Burkhart, and said the
Commission has done a great job of implementing programs that help bring the community
together. He thanked the Community Relations Commissioners for all their hard work.
f.
Update on Morton Grove -Niles Water Commission
Mayor DiMaria turned the meeting aver to Administrator Czerwinski for this update.
a. Mr. Czerwinski said that this is the next step in the alternative water supply process, as he
presented Ordinance 17-6, Determining and Electing to Acquire, Construct, and Operate
a Common Source of Supply of Water and Related Waterworks System with the Village
of Niles, Illinois, to Establish the Morton Grove -Niles Water Commission Pursuant to
Division 135 of Article 11 of the Illinois Municipal Code, and Approving an Intergovern-
mental Agreement for the Establishment and Operation of the Morton Grove -Niles Water
Commission and for the Purchase and Sale of Water to the Commission for Commission
Use and to Commission Wholesale Water Customers.
b. Mr. Czerwinski said this ordinance will establish one entity, and that entity will then be able to
apply for federal and state (I)EPA grants. The Water Commission will have representatives from
both Morton Grove and Niles, as well as a representative from Cook County, per State statute.
c. The Water Commission being established will be very similar to the Northwest Water
Commission. The Water Commission will help to regulate, maintain, and operate the
waterworks system for both communities. Mr. Czerwinski said that a great deaf of due diligence
has already gone into this project to get the partner communities to this point. He added that
Niles will be voting on a similar ordinance tomorrow.
d. Mr. Czerwinski noted that staff is requesting that the second reading of this ordinance be
waived due to time constraints for applications to state and federal agencies for low-interest
loans/grants.
Trustee Minx moved to waive the second reading of Ordinance 17-05, seconded by
Trustee Witko.
3
• f U - r I { 7 C .. t 1 --
Tr.--
VIII.
e.
SPECIAL REPORTS (continued)
Motion passed: 6 ayes, 0 nays.
Tr. Grear Tr. Minx aye
Tr. Ramos aye Tr. Thill aye
Tr. Pietron
Tr. Witko
Trustee Thill asked if there would even be an Environmental Protection Agency.
Mr. Czerwinski responded that there is funding available; last year, the interest rate for the EPA
loans was 1.68%. He noted that all of the calculations that had been done, getting to the
amount of the savings over the life of this alternative water supply agreement, has been based
on 5% interest, and even at that conservative estimated rate, the savings still totaled nearly
$100 million dollars.
Trustee Pietron then moved to adopt Ordinance 15-7, seconded by Trustee Minx.
Motion passed: 6 ayes, 0 nays.
Tr. Grear aye Tr. Minx Tr. Pietron 2y1
Tr. Ramos Tr. Thill aye Tr. Witko aye
f. Trustee Pietron commented that he was quite impressed with the level of detail included in this
ordinance, and complimented Mr. Czerwinski and staff. Mr. Czerwinski said his goal was for
people who look at this ordinance over the next 40 years witl have a good understanding of
what was done and why.
Ix.
X.
xI.
PUBLIC HEARINGS
NONE
RESIDENTS' COMMENTS (Agenda Items Only)
NONE
PRESIDENT'S REPORT
1, Mayor DiMaria thanked everyone who had attended the Taste of Morton Grove. He said it was a
night of great fellowship and good. He complimented the many restaurants who had participated,
saying they were a hallmark of this wonderful community event.
2. Mayor DiMaria invited the assemblage and all residents to attend the next Community Outreach,
which would be held on March 16 at 6:00 p.m. at the Civic Center. He said this is an opportunity
for residents to meet with the Board and staff and ask questions or give feedback. He said these
outreach events are held quarterly and, to date, have been very successful.
Mayor DiMaria said the Village was changing the vehicle sticker cycle. Current vehicle stickers,
expiring at the end of April, will not expire until the end of August. The new stickers will be sold
starting June 1. He explained that they wanted to change it to make it easier for people—now
they won't have to deal with cold or snow in order to get and affix their stickers.
4
Minutes of March 13, 2017 Board Meehinc
xl.
PRESIDENT'S REPORT (continued)
4. Mayor DiMaria noted that March is "Severe Weather Preparedness Month' and advised
residents to develop a safety plan for use in their home, workplace, school, and vehicle, as well
as for outdoor activities. For more information, see the emergency preparedness guide on the
Village's website (www.mortongroveil.orq) or visit www.readv.Iilinois.gov.
XII.
CLERK'S REPORT
Clerk Travis reminded the assemblage that the last day to register to vote in the April 4th
Consolidated Election is March 19. Early voting begins on March 20 and ends on April 3.
Early voting is available at Niles Village Hall. On Election Day, April 4, polls will be open from
6:00 a.m. to 7:00 p.m.
kill. STAFF REPORTS
A. Village Administrator:
Village Administrator Czerwinski had no further report.
B. Corporation Counsel:
Corporation Counsel Liston had no report.
XIV. TRUSTEES' REPORTS
A. Trustee Grear:
1.
a.
Trustee Grear presented Resolution 17-17, Authorization For the Purchase of Police Squad
Cars Through the Suburban Purchasing Cooperative.
He explained that, ever three years, high mileage squad vehicles are replaced to ensure that key
equipment utilized by MG police officers doesn't fail during their duties. The squad vehicles are
utilized 2417 and they need to be in excellent condition at all times. Total cost is $81,262 for two
sports utility police squad cars and one regular police squad car.
Trustee Grear moved to approve Resolution 17-17, seconded by Trustee Minx.
Motion passed: 6 ayes, 0 Trays.
Tr. Grear ay/ Tr. Minx Ave Tr. Pietron Rya
Tr. Ramos Eys Tr. ThiII Tr. Witko
2. Trustee Grear reminded residents to beware of "after -storm" solicitors. These are people who,
after any major storm, may knock on a resident's door to talk about roofing damage. He said
anyone who is approached with an offer for post -storm roof repair should ask to see proof of in-
surance and check the roofer's license status with the Morton Grove Building Department at
847-663-4040. He noted that the Village requires all door-to-door solicitors to have a permit.
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Minutes of March 13, 2017 Board Meetin
XIV.
A.
a.
TRUSTEES' REPORTS (continued)
Trustee Greer: (continued)
Trustee Greer said that if a resident has any doubts whatsoever about a solicitor, they should
NOT allow the person inside their home, and they should call 911 to the Police Department can
verify that that the solicitor is "legal."
B. Trustee Minx:
1 Trustee Minx introduced for a first reading Ordinance 17-04, Approving a Minor Amendment
to a Special Use Permit for a Drive -Through Facility for a New Restaurant at 9480
Waukegan Road, Morton Grove, Illinois.
a,
b.
Trustee Minx explained that the Board had approved a Special Use for a drive-through for a
new Dunkin Donuts restaurant in August of 2015, and then in July of 2016, had granted the
Applicant's request for a one-year extension of time to commence and proceed with construction
of the proposed project. The Applicant was finalizing the designs for construction, and proposed
minor modifications which would improve site circulation. They are therefore now seeking
approval of an amendment to the Special Use and updated site plan. Specifically, the Applicant
is proposing to add a bypass lane for the drive-through and a dedicated left -turn egress lane out
onto Waukegan Road.
These improvements are consistent with suggestion made by the Plan Commission to the
Applicant at the public hearing for their original Special Use application. To accommodate these
changes, the Applicant reduced the number of parking spaces from 12 to 11. The modified
building and site plan comply with all the bulk, density, and parking requirements. The Applicant
is also proposing to improve the existing alleyway to accommodate bypass lane circulation and
will also provide, as necessary, new and/or additional fencing along the alley to help minimize
any potential noise impact from the menu board.
c. Trustee Minx said the Village's Unified Development Code allows for minor amendments of
existing special use permits upon review by the Building Commission or his/her designee, the
Plan Commission Chairperson, the Village Administrator, and Corporation Counsel. All of these
required people have reviewed the plans and consulted with the Fire Department and Public
Works, and determined this requested amendment is in substantial compliance with and does
not change the intent of the original special use permit.
Trustee Minx said that, as this is a first reading, no action will be taken this evening.
2. Trustee Minx complimented Public Works for the outstanding job they did clearing the streets
after today's snowstorm. She said that Morton Grove's streets were noticeably clearer than some
of our neighboring municipalities.
C. Trustee Pietron:
Trustee Pietron thanked Trustee Minx for giving his report at the previous Board meeting
6
C.
2.
a.
Minutes of March 13, 2017 Board Meetin
TRUSTEES' REPORTS (continued)
Trustee Pietron; (continued)
Speaking of the snowstorm, he said that Public Works had deployed nine salt trucks to plow and
treat all snow routes and State routes at 3:00 a.m. At 8:00 a.m., they deployed all divisions to
plow all residential and State route street. Streets were treated with salt as needed. Tomorrow's
forecase calls for an additional one to three inches of lake effect snow, and temperatures are
expected to stay below 32 degrees for the next three days. He said the Village asked all drivers
to be respectful of the snow plow drivers, of whom we ail are very proud.
Trustee Pietron then presented Resolution 17-15, Authorizing the Execution of a Service
Contract Extension with Precision Pavement Markings, Inc. For the 2017 Pavement
Marking Program.
He explained that Morton Grove, Evanston, Niles, and Glenview have formed a Cooperative
Procurement Program to provide pavement marking services for a three-year term (one-year in
2016, with renewals in 2017 and 2018), The larger quantities included in a cooperative purchase
help reduce the cost of the work for each municipality. Precision Pavement Markings performed
the work satisfactorily in 2012 through 2016 and is available to complete the work. This project is
required to comply with the Illinois Prevailing Wage Act. The cost will be $30,000, but since this
is a unit price contract, the final contract amount will be based on the actual quantity of work
performed.
Trustee Pietron moved to approve Resolution 17-15, seconded by Trustee Grear.
Motion passed: 6 ayes, 0 nays.
Tr. Grear aye Tr. Minx Lys Tr. Pietron aye
Tr. Ramos Lys Tr. Thill Lys Tr. Witko Lyre
3. Next, Trustee Pietron presented Resolution 17-16, Authorizing the Execution of a Service
Contract Extension With Lyons Electric Company for the 2017 Traffic Signal and Street
Lighting Maintenance Program.
He explained that, each year, the Village contracts with an electrical contractor to assist in the
maintenance of street lighting and traffic control signals within the Village. Lyons Electric has
satisfactorily performed work on this contract in 2016 and the contract contains provisions
allowing for an extension for 2017 and 2018. This contract is required to comply with the Illinois
Prevailing Wage Act. The estimated contract value for routine maintenance is $24,489.48.
Trustee Pietron moved, seconded by Trustee Grear, to approve Resolution 17-16.
Motion passed: 6 ayes, 0 nays.
Tr. Greer aye Tr. Minx Lit Tr. Pietron Lys
Tr. Ramos aye Tr. Thil1 aye Tr. Witko aye
a.
7
Minutes of March 13, 2017 Board Mooting
XIV.
TRUSTEES' REPORTS (continued)
D. Trustee Ramos:
Trustee Ramos had no formal report, but welcomed Father Dennis O'Neill, pastor of St. Martha's
Church, who was attending this meeting tonight.
E. Trustee Thill:
1. Trustee Thill had no formal report, but announced that Morton Grove has once again been
named a Tree City USA for 2016 by the Arbor Foundation. This honor is brought to the Village
as it meets several criteria of the Arbor Foundation for the distinction, including having a tree
department, a tree care ordinance, a tree budget of at least $2.00 per capita, and Arbor Day
observed and proclaimed. This is the 16th consecutive year the Village has attained this status.
a. Trustee Thill complimented Public Works for making this a reality for Morton Grove, as it is a
distinction desired by the residents. He added that, sixteen years ago, Marian Thill was the one
who brought this to the Village's attention.
F. Trustee Witko:
xv.
XVI.
Trustee Witko had no report.
OTHER BUSINESS
NONE
WARRANTS
Trustee Witko presented the Warrant Register for March 13, 2017, in the amount of
$488,334.39. She moved that the Warrants be approved as presented. Trustee Thill seconded
the motion.
Motion passed: 6 ayes, 0 nays.
Tr. Greer aye Tr. Minx Eta
Tr. Ramos Tr. Thill aye
XVII. RESIDENTS' COMMENTS
1.
Tr. Pietron ave
Tr. Witko
John Lahn of Americans in Solidarity—Chicago and a Morton Grover resident, asked about
the status of a draft welcoming ordinance that had been submitted to the Board at the end of
January. He said that he has been working with other groups an this as well, and thanked
Father Dennis O'Neill for being here tonight. He said his organization continues to work on this
and he was asking the officials to take a position on it.
S
xvll.
Minutes of March 13, 2017 Board Moetin
RESIDENTS' COMMENTS (continued)
a. Mr. Lahn said there is no doubt that Morton Grove is a diverse and welcoming community;
that's not in question. But those values are being threatened, and his organization feels that a
welcoming ordinance will ensure that all residents feel secure, and that problems arising in other
communities due to fear will not happen here. Mr. Latin said this is not just a moral issue, but a
practical one as well. It is in no way intended as a "condemnation" or an insinuation that there is
currently anything wrong occurring in the Village. Rather, it's providing a framework to address
potential problems. Mr. Lahn said he would like to further the discussion on this topic. He noted
that one of his mentors was Martin Ashman, former judge and Morton Grove Corporation
Counsel, and said that, as Morton Grove led the way in passing the first gun ban legislation, it
should also lead the way on this issue.
2. Sascha Hedjbeli thanked the Mayor and the Board, and the Community Relations Commission
members for supporting and judging the photos submitted for the photo contests. He said he was
aware that a lot of time and effort goes into that, and appreciated the chance to showcase talent and
bond with others in the Village. Mr. Hedjbeli said that he was now retiring from the photo contests to
be fair to others participating. He had two winning photos in the Winter Photo Contest and was also
named overall winner. He said he was grateful for the humbling opportunity and felt that it has gotten
everyone "incredibly closer."
XViI
ADJOURNMENT
Trustee Minx moved to adjourn the meeting, seconded by Trustee Witko.
Motion passed: 6 ayes, 0 nays.
Tr. Greer Tr. Minx
Tr. Ramos aye Tr. Thill
The meeting adjourned at 7:50 p.m.
Tr. Pietron
Tr. Witko afire
9
Minutes of March 13, 2017 Sward Meeting
PASSED this 27th clay of March, 2017
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED by me this 27th day of March, 2017,
Daniel P. DiMaria, Village President
Board of Trustees, Morton Grove, Illinois
APPROVED and FILED in my office this 28th day of March, 2017.
Connie J. Travis, Village Clerk
Village of Morton Grove, Cook County, Illinois
Minutes by: Teresa Cousar
14
Letrislative Summary
Ordinance 17-04
APPROVING A MINOR AMENDMENT TO A SPECIAL USE PERMIT
FOR A DRIVE-THROUGH FACILITY FOR A NEW RESTAURANT
AT 9480 WAiUKEGAN ROAD, MORTON GROVE, ILINOIS
In trod action:
Purpose:
Background:
Programs, Departs
or Groups Affected
Fiscal Impact:
Source of Funds:
Workload Impact:
Admin Recommend:
Second Reading:
Special Consider or
Requirements:
Submitted by:
Prepared by:
March 13, 2017
Approval of a minor amendment to a Special Use Permit (Ord. 05-17) to allow for the
modification of the approved site plan to improve site circulation through the addition of a
dedicated left -turn egress lane onto Waukegan Road and a by-pass lane for the drive-through at
9480 Waukegan Road.
On August 10, 20/5, the Board approved a special use for a drive-through for a new Dunkin
Donuts restaurant at 9480 Waukegan Road (Ord. 05-17) and, on July 11, 2016, the Board
approved the Applicant's request for a one-year extension of time to commence and proceed
with construction of the proposed project (Ord. 16-16). As the Applicant was finalizing their
designs for construction, they proposed minor modifications which would improve site
circulation and, accordingly, is seeking approval of an amendment to the special use and
updated site plan. Specifically, the Applicant is proposing to add a by-pass lane for the drive-
through and a dedicated left -turn egress lane out onto Waukegan Road. These improvements are
consistent with suggestions made by the Plan Commission to the Applicant at the public hearing
for original special use application. To accommodate these changes, the Applicant reduced the
size of the restaurant from 1,833 sq. ft. to 1,661 sq. ft, and the number of parking spaces
from 12 to 11. The modified building and site plan comply with all the bulk, density and
parking requirements. The Applicant is also proposing to improve the existing alleyway to
accommodate by-pass lane circulation and, as necessary, will also provide new andlor additional
fencing along the alley to help minimize any potentia] noise impacts from the menu board.
Sectionl2-16-4.B of the Unified Development Code allows for minor amendments of existing
special use permits upon the review by the Building Commissioner or hislher designee, the Plan
Commission Chairperson, Village Administrator, and Corporation Counsel. All required
staff/commissioners have reviewed the plans, in consultation with the Fire and Public Works
Departments, and determined this requested amendment is in substantial compliance with and
does not change the intent of the original special use permit.
Community and Economic Department
NIA
N/A
The amendment will be implemented by staff in the normal course of business.
Approval as presented
March 27, 2017
1: die ch, + ' unity and Economic Development Director
Reviewed by
illage Administrator Teresa Hoffman Listoin; Corporation Counsel
ORDINANCE 17-04
APPROVING A MINOR AMENDMENT TO A SPECIAL USE PERMIT
FOR A DRIVE-THROUGH FACILITY FOR A NEW RESTAURANT
AT 9480 WAUKEGAN ROAD, MORTON GROVE, ILINOIS
WHEREAS, the Village of Morton Grove, located in Cook County, Illinois, is a Horne Rule
unit of government and under the provisions of Article 7 of the 1970 Constitution of the State of
Illinois, and as such can exercise any power and perform any function pertaining to its government
affairs, including but not limited to, the power to tax and incur debt; and
WHEREAS, the subject property is zoned in the C 1 General Commercial District pursuant
to the provisions of the Village of Morton Grove Unified Development Code; and
WHEREAS, on August 10, 2015, pursuant to Ordinance 15-17, a special use permit
application from Panjwani Restaurant Networks (the "Applicant") for a drive-through restaurant for
a new Dunkin Donuts restaurant to operate at 9480 Waukegan Road was approved by the Village
Board; and
WHEREAS, on July 11, 2016, pursuant to Ordinance 16-16, the Village Board granted the
Applicant's request for a one-year extension of time to commence and proceed with the
construction of the approved drive-through restaurant facility at 9480 Waukegan Road; and
WHEREAS, pursuant to Ordinance 07-07 the Village adopted a Unified Development Code
which set forth an abbreviated procedure for minor revisions to special use permits which allows for
the granting of such amendments without a formal public hearing process subject to the
recommendation for approval by the Village Administrator, Corporation Counsel, Building
Commissioner and Plan Cornmission Chairperson and subsequent approval by the Village Board;
and
WHEREAS, the Applicant, pursuant to Plan Commission Case PC17-06, has made proper
application to the Village of Morton Grove for a minor amendment to the approved special use
permit (Ord. 15-17) to modify the approved site plan, dated June 8, 2015, in order to improve site
circulation; and
WHEREAS, based on some challenges they have experienced at a recently constructed
Dunkin' Donuts restaurant, the Applicant has proposed an amended site plan which includes the
addition of a by-pass lane for the drive-through and a dedicated left -turn lane to facilitate improved
vehicular egress from the site out onto Waukegan Road; and
WHEREAS, in order to accommodate the proposed site circulation improvements, the
Applicant is proposing to reduce the size of the building from 1,833 sq. ft. to 1,661 sq. ft. and
reduce the number of parking spaces from 12 to 11, and such modifications comply with all the
bulk, density, and parking requirements established in the Unified Development Code (Title 12 of
the Municipal Code); and
WHEREAS, in accordance with Village of Morton Grove Alley Construction Program,
dated December 14, 2015, the applicant will be responsible for all the work and costs associated
with the proposed improvements to the public alley and any necessary improvements to the fencing
along the alleyway to provide additional protection from potential noise impacts from the drive-
through menu board; and
WHEREAS, the Village Administrator, Corporation Counsel, Building Commissioner and
Plan Commission Chairperson, in consultation with the Fire and Public Works Departments, have
found this amendment with certain conditions as set forth in this ordinance, meets the standard for
the abbreviated process described above, and as such recommend approval of the minor amendment
to Ord. 15-17; and
WHEREAS, pursuant to the provisions of the Village of Morton Grove Unified
Development Code, the Corporate Authorities have determined the proposed amendment to the
special use shall be approved subject to conditions and restrictions as set forth herein.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MORTON GROVE, COOK COUNTY, ILLINOIS, AS
FOLLOWS:
SECTION 1: The Corporate Authorities do hereby incorporate the foregoing WHEREAS
clauses into this Ordinance, as though fully set forth herein, thereby making the findings as
hereinabove set forth.
SECTION 2: The Applicant is hereby granted an amendment to the previously granted
special use permit, pursuant to Ordinance 16-16, to allow for modifications to the approved site plan
including the addition of a drive-through by-pass lane and a dedicated left-turn egress lane, and an
associated reduction in the size of the building and number of on-site parking spaces for a new
restaurant with a drive-through facility at 9480 Waukegan Road, with the following conditions and
restrictions which shall be binding on the owners/lessees, occupants and users of this property, their
successors and assigns for the duration of the special use:
1. All conditions of Ordinance 15-17 shall remain in effect unless specifically modified by this
amendment,
2. The Applicant shall develop the site in accordance with the approved amended site plan,
dated February 3, 2017, included herewith as EXHIBIT A.
3, The applicant shall be responsible for all the costs and work for the proposed improvements
to public alley, immediately west of the subject property, in accordance with the
requirements established in the Alley Construction Program, dated December 14, 2015.
4, As needed to control the noise from the menu board, the Applicant shall be responsible for
costs and work associated with installing a new fence along the west side of the newly
improved alleyway.
5. Prior to beginning work on the new building and site and alley improvements, the Applicant
shall have filed all necessary building and site engineering plans for review and approval by
the Village, and shall have received all necessary building permits.
6. Should the Morton Grove Police Department, Director of Community and Economic
Development and/or Village engineer be advised of any significant vehicular/pedestrian
traffic, parking, or emergency vehicle accessible issues related to the reconfigured site plan
at 9480 Waukegan Road, the Applicant shall be required to develop and submit a plan to the
Village Administrator within fifteen (15) business days of such notice, which outlines
specific ways to address such issues. Such plan shall be reviewed by the Director of
Community and Economic Development, Village Engineer, Fire Chief, and Chief of Police
who will be charged with making suggested changes arid/or approving such a plan. Any
remedies which alter the nature of this approved use may require an amendment of the
special use permit and further review by the Traffic Safety Commission.
7. The applicant shall advise the Director of Community and Economic Development of any
proposed change in ownership or operation of the existing commercial retail use at 9480
Waukegan Road. Such changes may subject the owners, lessees, occupants, and users of
9480 Waukegan Road to additional conditions and may serve as the basis for further
amendment to the special use permit.
SECTION 3: The Village Clerk is hereby authorized and directed to amend all pertinent
records of the Village of Morton Grove to show and designate the special use permit as amended
hereunder.
SECTION 4: The Applicant/Owner shall comply with all applicable requirements of the
Village of Morton Grove Ordinances and Codes.
SECTION 5: This Ordinance shall be in full force and effect from and after its passage,
approval and publication in pamphlet form according to law.
PASSED this 27th of March 2017.
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED by me this 27th day of March 2017.
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
APPROVED and FILED in my office this
28th day of March 2017.
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Illinois
ROPOSED SITE PLAN
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LeEisiative Summary
Resolution 1749—
AUTHORIZING
7-19
AUTHORIZING THE FUNDING FOR THE EXTENSION OF AN EXISTING CONTRACT
FOR MAINTENANCE OF A MUNICIPALLY OWNED WIRELESS FIRE ALARM NETWORK
Introduced:
Synopsis:
Background:
Departs
Affected:
Fiscal
Impact:
Source of
Funds:
Work
Impact:
Admin
Recommend:
First Read:
Special
Consider
Requirement:
March 27, 2017
This resolution will authorize the extension of a contract with Chicago Metropolitan Fire
Prevention, Inc. for the continued purchasing and maintenance of equipment necessary to ensure
fire alarm radio continuity to the municipalities of Morton Grove and Niles.
In September 2009, the Village of Morton Grove entered into an intergovernmental agreement
with area municipalities to investigate the feasibility and benefits of maintaining a
municipally -owned fire alarm radio network with the cost of the equipment to form the
infrastructure to be shared by the participating departments (aka "RED South Headend"). The
Village of Niles was the "lead agency" and solicited bids for the equipment at that time. The
group then recommended and accepted the lowest qualified bid in the amount of $78,446. To
expedite the installation and build -out of the network, the Village of Morton Grove then
financed the purchase of the equipment from funds existing in the RED Center Alarm Fee
Terminal Reserve Account. The other communities then purchased "shares" in the equipment
and reimbursed the Village of Morton Grove. In April 2011 the Village entered into a five year
contract agreement with Chicago Metropolitan Fire Prevention, Inc. (CMFP) to install and
maintain the headend radio equipment. Since that time the vendor has performed adequately
and met all the performance criteria originally solicited in the agreement. Since the contract
term has expired, the members of the D3RAN wish to invoke the option to extend the agreement
as stated in Section 1, Paragraph 3 of the agreement. The renewal will maintain the
maintenance, replacement hardware, and service fees charged by the vendor.
Legal, Finance, and Fire Departments
Expenditures will remain the same as in previous years.
This contract will continue to be funded by the Village Fire Alarm Special Revenue Fund
Account #41
The management and implementation of the program and agreement will be performed by the
Fire Department as part of their normal work activities.
Approval as presented.
N/A
None
Respect ubmitted:
Prepared by: -w _
Teresa 1'Inan T,iOnn f nrnnrat;.,,+
inski, V = e Administrator
Reviewed by:
RESOLUTION 17-19
AUTHORIZING THE FUNDING FOR THE EXTENSION OF AN EXISTING
CONTRACT FOR MAINTENANCE OF
A MUNICIPALLY OWNED WIRELESS FIRE ALARM NETWORK
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a home
rule unit of government under the provisions of Article 7 of the 1970 Constitution of the State of Illinois,
can exercise any power and perform any function pertaining to its government affairs, including but not
limited to the power to tax, purchase, and incur debt; and
WHEREAS, the Village of Morton Grove is a unit of local government authorized to exist under
the terms of the Illinois Compiled Statutes; and
WHEREAS, the Village desires to provide a means by which businesses in the community are
able to transmit wireless fire alarms in a more rapid fashion with reduced incidences of false alarms and
service interruptions; and
WHEREAS, the Village of Morton Grove became a member of the Division 3 Radio Alarm
Network (D3RAN) in 2009 in order to cooperatively solicit bids for the purchase and maintenance of
equipment necessary to receive, retransmit, and monitor business fire alarms; and
WHEREAS, the D3RAN, with the Village as the Lead Agency, issued a Request for Proposal
for the purchase and subsequent maintenance of headend equipment capable of supporting a multi -
jurisdictional fire alarm radio alarm network; and
WHEREAS, in April 2011 the Village entered into a 5 -year contract agreement (Fire Alarm
Monitoring System Purchase and Maintenance Agreement attached) with Chicago Metropolitan Fire
Prevention (CMFP) Inc. to install and maintain headend radio equipment pursuant to Resolution 10-53;
and
WHEREAS, in the 5 years since, the vendor has performed adequately and met all performance
criteria within the agreement; and
WHEREAS, the original contract term limit has expired and the Fire Chief and members of the
D3RAN party to the contract desire to invoke the option to extend the current agreement pursuant to the
requirements of Section 1, paragraph 3 of the agreement: This agreement may be renewed for one (1)
five-year successive period upon terms mutually agreed upon by both parties.; and
WHEREAS, renewal of this agreement will represent no increase in maintenance, replacement
hardware or service fees charged by the vendor;
NOW, THERFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF MORTON GROVE, COOK COUNTY, ILLINOIS AS FOLLOWS:
SECTION l : The Corporate Authorities do hereby incorporate the foregoing WHEREAS clauses
into this Resolution as though fully set forth therein thereby making the findings as hereinabove set
forth.
SECTION 2: The Village of Morton Grove is authorized, and the Clerk is authorized to attest, to
an agreement with Chicago Metropolitan Fire Prevention Inc. of Elmhurst, Illinois in order to exercise
one five-year extension of the existing Fire Alarm Monitoring System Purchase and Maintenance
Agreement for the ongoing maintenance of the municipally owned wireless radio alarm network per the
specifications contained in the Agreement.
SECTION 3: The Village Administrator, Fire Chief and/or their designees are hereby authorized
to take all steps necessary to implement and perform the Village's obligations pursuant to this
agreement, including taking all steps necessary to contract with CMFP for an extension to the existing
agreement.
SECTION 4: This Resolution shall be in full force and effect upon its passage and approval.
PASSED THIS 27th DAY OF MARCH 2017
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED BY ME THIS 27th DAY OF MARCH 2017
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
ATTESTED and FILED in my office
This 28th DAY OF MARCH 2017
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Illinois
Legislative Summary
Resolution 10-53
AUTHORIZING THE FUNDING OF THE PURCHASE OF EQUIPMENT AND SERVICES
NECESSARY TO CREATE A MUNICPALLY OWNED WIRELESS FIRE ALARM NETWORK
Introduced:
Synopsis:
Purpose:
Background:
Programs, Departments
or Groups Affected
Fiscal Impact:
Source of Funds:
Workload Innpact:
Admin Rectnn`ufldtion:
First Reading:
Special Considerations
respectfully submitted:
Prepared by:
August 9, 2010
Authorizes the Village Administrator and/or Fire Chief to execute a contract with
Chicago Metropolitan Fire Prevention Inc. for the financing and purchase of all
equipment necessary to ensure fire alarm radio continuity to a location to be shared
by the communities of Niles, Morton Grove, Lincolnwood, and Prospect Heights.
The purchase is required to increase the efficiencies and effectiveness of the
operation of the fire alarm network.
In September 2009, the Village entered into an intergovernmental agreement (IGA)
with the above communities to investigate the feasibility and benefits of
maintaining a municipally -owned fire alarm radio network. The cost of the
equipment necessary to form the infrastructure will be shared by the participating
departments (aka "RED South Headend"). The Village of Niles acted as the "lead
agency" and solicited bids for the equipment. After analysis, the group has
recommended the lowest qualified bid for acceptance in the amount of $78,446. In
order to expedite the installation and build -out of the network, the Village of
Morton Grove will finance the purchase of the equipment from funds existing in
the RED Center Alarm Fee Terminal Reserve account. Participating communities
will purchase "shares" in the equipment and reimburse the Village the costs no
later than June of 2011.
Fire Department.
$78,446.
To be funded by the RED Center Alarm Fee Terminal Reserve account
The management and implementation of the program will be performed by the Fire
Department as part of their normal work activities.
Approval as presented
Not Required
None
Joseph altd, Villa Administrator
tar
Tom Friel, Fire Chi
Reviewed by:
ejlf
Teresa Hof r : is on, Corporation Counsel
RESOLUTION 10-53
AUTHORIZING THE FUNDING OF THE PURCHASE OF
EQUIPMENT AND SERVICES NECESSARY TO CREATE
A MUNICIPALLY OWNED WIRELESS FIRE ALARM NETWORK
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a
home rule unit of government under the provisions of Article 7 of the 1970 Constitution of the State of
Illinois, can exercise any power and perform any function pertaining to its government affairs,
including but not limited to the power to tax, purchase, and incur debt; and
WHEREAS, the Village of Morton Grove as a unit of local government authorized to exist
under the terms of the Illinois Compiled Statutes; and
WHEREAS, the Village desires to provide a means by which businesses in the community are
able to transmit wireless fire alarms in a more rapid fashion with reduced incidences of false alarms
and service interruptions; and
WHEREAS, the Intergovernmental Cooperation Act provides a public agency may jointly
exercise or combine any power, privilege, function or authority with other public agencies, ILCS 220/1
et seq. (2008); and
WHEREAS, the Village entered into an intergovernmental agreement with other interested
communities including Niles, Skokie, Lincolnwood, and Prospect Heights Fire Protection District in
September of 2009 in order to share the costs associated with the purchase and maintenance of the
equipment necessary to receive, retransmit, and monitor business fire alarms; and
WHEREAS, participation in this cooperative effort is an efficient means of managing the
requirements of the Village's adopted fire code, as well as the means by which businesses comply with
the code. This efficiency will result in the following advantages:
{i} Allow the. Village to more affirmatively control and maintain the health and continuity of the
existing fire alarm radio network.
(ii) Provide for stabilized subscriber fees to Village businesses.
(iii) Reduce the incidence of false alarms associated with current direct connect phone circuits and
digital dialing systems.
(iv) Costs for infrastructure improvements will be offset by associated monthly user fees.
(v) The cooperative approach shares hardware expenses between the Village and the Participating
Members and provides system redundancy not available if the Village developed its own
wireless network; and
WHEREAS, as a result of the execution of the Intergovernmental Agreement the MABAS
Division 3 Radio Alarm Network (D-3 RAN) was formed and included the formation of the D-3 RAN
Technical Group consisting of the Fire Chiefs from Morton Grove, Niles, Lincolnwood, Skokie, and
Prospect Heights; and
WHEREAS, in accordance with the Intergovernmental Agreement, the Niles Purchasing
Department created, distributed and administered the issuance of a Request for Proposal (RFP) for the
equipment and services; and
WHEREAS, two qualified bidders submitted proposals for the shared equipment and
installation in the following amounts:
Chicago Metropolitan Fire Protection Inc. $78,446
Fox Valley FiTC & Safety S80,306
WHEREAS, after review of the proposals submitted, the D-3 RAN Technical Group has
recommended the Chicago Metropolitan Fire Prevention Inc, (CMFP) be awarded the contract and
designated as the authorized vendor for this project; and
WHEREAS, although the activities stipulated by the Intergovernmental Agreement specify the
Village of Niles will, provide a funding resource for the initial purchase of the shared equipment and
services known as the "RED South Headend", the Village of Niles is unable to commit funding until
May 2011; and
WHEREAS, the Village of Morton Grove desires to expedite the process to purchase, install,
and build-out the network; and
WHEREAS, D-3 RAN participants have agreed to reimburse the Village of Morton Grove the
proportionate share of funds necessary to purchase and install the "RED South Headend" no later than
June 2011 through the issuance and purchase of "shares" in the shared equipment; and
WHEREAS, funds to finance this project are available to the Village of Morton Grove through
the RED Center Alarm Fee Terminal Reserve Account,
NOW, THERFORE, BE IT RESOLVED 13Y THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MORTON GROVE, COOK COUNTY, ILLINOIS AS
FOLLOWS:
SECTION I: The Corporate Authorities do hereby incorporate the foregoing WHEREAS
clauses into this Resolution as though fully set forth therein thereby making the findings as
hereinabove set forth,
SECTION 2: The Village of Morton Grove is authorized, and the Clerk to attest, to enter into
an agreement with Chicago Metropolitan Fire Prevention Inc. of Elmhurst, Illinois on behalf of the
aforementioned participating communities for the purchase, installation, and build -out of the
municipally owned wireless radio alarm network per the specifications contained in the
Intergovernmental Agreement.
SECTION 3: The Village Administrator and the Fire Chief and their designees are hereby
authorized to take all steps necessary to implement and perform the Village's obligations pursuant to
this agreement, including taking all steps necessary to contract with CMFP for the work recommended
by the D-3 RAN Technical Group.
SECTION 4: This Resolution shall be in full force and effect upon its passage and approval.
PASSED THIS 9th DAY OF AUGUST 2010
Trustee DiMaria •
Trustee Gomberg
Trustee Great
Trustee Marcus
Trustee Thill
Trustee Toth
APPROVED BY ME THIS 9th DAY OF AUGUST 201
ATTESTED and FILED in my office
This 10`'' DAY OF A G ST 2010
Tony S. K'er.r os, Village Clerk
Village o ► orton Grove
Cook County, Illinois
0
1/'
- : . f ann, Village President
Village of `Frton Grove
Cook County, Illinois
ASSIGNMENT OF WIRELESS FIRE ALARM LEASES, MAINTENANCE
AND MONITORING AGREEMENTS AND GENERAL RELEASES
WHEREAS, the Village of Morton Grove (Village), located in Cook County, Illinois, is a
horne rule unit of government under the provisions of Article 7 of the 1970 Constitution of the
State of Illinois, can exercise any power and perform any function pertaining to its government
affairs., including but not limited to the power to tax, purchase, and incur debt; and
WHEREAS the Village of Morton Grove operates a fire department (MGFD) which
provides fire protection and emergency medical services to residents and businesses, including
Fire & Security Systems (FSS) subscribers within the Village; and
WHEREAS, Title 9, Chapter 2-2F requires all buildings with automatic fire
extinguishing systems must be connected to and monitored by the Fire Department
Communications Center in a manner approved by the Fire Chief or hisfher designee; and
WHEREAS, Fire and Security Systems, Inc. of Arlington Ileights, Illinois (FSS) has
certain lease agreements with property and business owners within the Village of Morton Grove
(subscribers) for leased radio equipment; and
WHEREAS, FSS also has certain rights, interest and obligations in certain service and
monitoring agreements associated with the aforedescribed FSS's leased radios; and
WHEREAS, the Village of Morton Grove as well as other members of MAGAS Division
III Radio Alarm Network (D3RAN) plan to establish their own and operate a common wireless
alarm network; and
WHEREAS, in order to transition FSS's leased radio subscribers to the Village's wireless
alarm network, FSS and the Village have agreed that FSS shall transfer and assign all of their
leased radio agreements to the Village under the terms and conditions set forth in this agreement;
and
WHEREAS, a complete Iist of FSS's leased radio subscribers and addresses for FSS's
leased radio subscribers in Morton Grove will be provided concurrently with payment being
made to FSS attorneys, Denkewalter & Angelo, to be deposited into a Client Funds IGLTA
account. The check shall be in the amount of $46,758.00; and
WHEREAS, the Village of Morton Grove and FSS understand FSS will assign their
leased radio agreements to the Village of Morton Grove on November 30, 2011 and Morton
Grove subscribers will terminate the FSS Remote Station Signaling Monitoring Agreements
1
upon the sale of said leased radio agreements or until Village assumes monitoring of the Morton
Grove subscribers on Village owned network, whichever occurs later; and
WHEREAS, the Village of Morton Grove and FSS understand that the Village also
intends to provide monitoring services to Morton Grove subscribers who own its/their own radio
transmitter in the near future; and
WHEREAS, the Village.D3RAN wireless alarm network shall, after September 30, 2011,
be the approved manner for monitoring wireless alarm radios pursuant to Village Code Section
9-2-2F; and
WHEREAS, FSS will provide the Village of Morton Grove original agreements and
current agreements of all its leased radio subscribers agreements to the Village within three (3)
days after receipt of payment by Denkewalter & Angelo.
IT IS THEREFORE AGREED the Village of Morton Grove and Fire and Security
Systems, Inc. of Arlington Heights, Illinois agree as follows:
1. Recitals. The preceding WHEREAS clauses are made a part of this Agreement.
2. Assignment. In consideration of payment in the amount of $46,758.00 subject to
verification and modification as set forth in Exhibit A-1 , FSS hereby transfers and
assigns all its rights, title and interest to their leased radio agreement for all of its leased
radio subscribers in Morton Grove. The assignment for all individual leased radio
agreements shall take place on dates to be determined by the Village but not less than
fifteen (15) nor more than seventy-five (75) days after the effective date of this
agreement. Until a respective Morton Grove lease radio has been installed, FSS shall
continue to provide monitoring for its Morton Grove leased radio subscriber. FSS shall
have the right to collect all payments due to FSS pursuant to said lease agreements, up to
and including the date of the sale. FSS shall collect all fees due to it from its Morton
Grove subscribers directly from the subscribers and shall be liable for all claims arising
out of FSS's interest or obligation in its Morton Grove leases, monitoring or service
agreements through the date of the transfer/assignment of the respective lease. The
Village shall assist FSS in collecting any past due balance owed to FSS from any such
subscriber prior to the date of the sale. The price set forth above is based upon the sales
price of the leases on the attached Exhibit "A" subject to verification when the current
lease agreements are provided. The prices are based upon prices standard in the industry
based upon the length of time that the leases have remaining on them. The Village will
have a period of time to determine that the correct charge has been made, but said time is
set for a maximum of two weeks (14 days). Exhibit "A-1" shall explain the process.
3. Exchange of Equipment. Morton Grove will cause their subcontractor to create and
maintain a list of Morton Grove subscribers who have moved to the Morton Grove
network. Their subcontractor will cooperate with FSS, its engineers and experts to change
2
over the sold leases in a manner deemed unlikely to cause disruption of service to the
subscribers or to the remaining subscribers still on the RED CenterIFSS network. The
radios will be changed over to create the least amount of damage to the remaining radios
in the network. The Village or its subcontractor will deliver the removed radios to FSS at
its Arlington Heights office at a mutually agreed time for testing and acceptance by FSS
personnel.
4. Antennae. All outside antennas utilized at leased radio subscriber locations will
remain FSS's property, and the Village will have no right to said antennas or any
obligation to remove them.
5. Village Payments. So long as FSS is not in default under this Agreement Morton
Grove will pay to FSS the following monthly payments covering any applicable period
after the sale date (TBD):
a. Fifty Dollars ($50.00) per month for each leased radio until disconnected from
FSS monitoring.
b. Sixteen Dollars ($1600) per month for monitoring each leased and owned radio
until disconnected.
c. Monitoring and lease payments are to be received by FS S no later than the 15th of
the month for the preceding month.
6. Billing During Transition. FSS shall not invoice or collect fees from Morton Grove
subscribers after the sale. Any fees collected by FSS from Morton Grove subscribers after
the sale shall be paid to the Village. An accounting of each party's financial obligations
shall be provided at least every thirty (30) days until all payments have been made with a
final accounting within sixty (60) days of all accounts being tamed over to Morton
Grove.
7. Payments and Credits During Transition. Payments and credits will be calculated on
or about the fifth of the following month for the preceding month. The monitoring and
lease radio fees owed to FSS for non -converted subscribers will be determined on the 15th
of each month. If the subscriber is converted on or before the 15th of the month then one-
half of the monitoring and lease fee, if applicable, will be owed to FSS. If the subscriber
is converted on or after the 15th of the month, then the monitoring and lease fees will be
due FSS for the entire month.
8. Exclusions. This agreement does not include the transfer/assignment of FSS's service
and inspection agreements regarding equipment owned by a Morton Grove subscriber, or
pertaining to Digital alarms currently being monitored through FSS at RED Center.
Nothing in this agreement precludes FSS from selling fire alarm systems or equipment, or
providing related services to Morton Grove subscribers, The Village acknowledges and
will notify the Morton Grove subscribers and its subcontractors that such subcontractors
do not have the exclusive right to sell fire alarm systems or equipment or provide related
services to Morton Grove subscribers except for those service and monitoring services
pertaining to the Village radio network specified in Village contracts with such
3
subcontractors. FSS will be provided with a copy of such letter for their records. The
Village will use "best efforts" to have its subcontractor comply with this paragraph.
9. Maintenance of Equipment. FSS shall maintain all its existing equipment associated
with its Morton Grove leases including continuous signals to RED Center in good
working order until such time as the equipment is replaced by the Village or its designee
but not later than December 31, 2011. If Morton Grove's or their subcontractor's actions
cause problems with the existing RED Center network, FSS will be reimbursed its costs
and expenses to reestablish the network communication up to a maximum of $5,000.00
per event. Nothing in this agreement shall be construed to create any liability of Morton
Grove for any degradation of signal strength, loss of signal pathway(s) or disruption of
network communication caused solely by the removal of a Morton Grove subscriber from the
FSS network which the parties acknowledge will occur due to the design of the FSS network.
This section is solely meant to address isolated acts of network disruption. The Village, in
cooperation with FSS, will use reasonable efforts to remove radios from the FSS network in a
manner least likely to cause disruptions to said network.
10. Return of Equipment. Upon the replacement of the FSS equipment, the Village or its
designee shall remove FSS's equipment except the antennas from the subscriber's
premises and shall return it to FSS in substantially the same condition as existed prior to
removal in accordance with Paragraph 3.
11. Mutual, Complete and General Releases. The Village and FSS hereby release and
forever discharges each other, as well as its officials, employees and assigns from any
and all claims, demands, damages, actions, causes of actions or suits of any kind or
nature, and in particular all claims and liabilities relating to this agreement, and any
litigation pertaining to the Village or FSS' s right or ability to provide alarm services to
subscribers within the corporate limits of the Village of Morton Grove.
12. Mutual Indemnification. FSS agrees to indemnify, defend and hold harmless the Village, its
officers, employees, agents or representative from and against any claims, demands,
damages, liabilities, or cause of actions, including, but not limited to, reasonable attorney's
fees and court costs, incurred by the Village resulting from any action, conduct or omission
of FSS in relation to its Morton Grove leases or its services and monitoring agreements or
arising out of FSS's obligations in this agreement. The Village agrees to indemnify defend
and hold harmless FSS, its officers, employees, agents, and representatives from any and all
claims, demands, damages, liabilities or causes of action including but not limited to
attorney's fees and court costs incurred by FSS resulting from any action, conduct or
omission of the Village in relation to the assigned Morton Grove leases or the actions of the
Village in regards to the service and monitoring agreements or the newly installed equipment
that is under the control of the Village of Morton Grove and is covered under the agreement,
13. Remaining Radia Transmitters. The Village and FSS agree that the Village shall
provide, at no cost to FSS, adequate space, access and power for FSS to maintain a radio
transmitter at each of Morton Grove's fire stations, if necessary, to provide signal paths
for communication to RED Center for five (5) years from the date of this Agreement. The
Village shall take reasonable steps to protect the transmitters from abuse by Village
4
employees or agents but shall not be liable for the maintenance of the transmitters or damage
to the transmitters caused by acts beyond the Village's reasonable control.
14. Agreements Remain in Effect. The Village agrees not to take any action to seek to
terminate or otherwise interfere with the existing Alarm Receiving Equipment Agreement
between FSS and RED Center until FSS no longer has any obligation to provide
monitoring services to those subscribers listed in Exhibit "A". After the turnover of all
radios on the network located in Morton Grove to the Village, the parties agree to
cooperate to provide the best service to all subscribers in Morton Grove.
15. Anti -Disparagement Clause. The parties agree to use their best efforts to acknowledge
the cooperation of both parties to this Agreement and to discourage and to the extent
possible prohibit any statement, written or oral, in disparagement of the other. The
Village will inform and request the same with their subcontractors.
16. Full Cooperation Agreement. The parties to this Agreement agree, at any time and
from time to time, to execute and deliver any and all documents reasonably requested by
the other to carry out the intent of this Agreement. The parties further agree to cooperate
with each other and Morton Grove's subcontractor to effectuate the intent of this
Agreement.
17. Validity Under Illinois Statutes. The validity, meaning and effect of this Agreement
shall be determined in accordance with the laws of the State of Illinois applicable to
contracts made and to be performed in the State.
18. Severability. If any term, provision, covenant or condition of this Agreement is held by
a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of
the provisions shall remain and shall in no way be affected, impaired or invalidated.
19. Notices. All notices required or permitted to be given or made under this Agreement
may be effected by personal delivery in writing or by certified rnail, postage prepaid,
return receipt requested, facsimile or by overnight courier_ Notices shall be addressed to
the parties as their addresses appear but each party may change its address by written
notice in accordance with this paragraph.
20. Counterparts. This Agreement may be executed in duplicate counterparts and shall be
fully effective and enforceable upon exchange of such executed counterparts. Execution
of this Agreement by facsimile signature and transmission shall be effective.
Agreed this day of , 2011
5
Fire and Security Systems, Inc. by Zolkt.1
Signature:
Village of Morton Grove, I
Signature:
Attested:
Imam, Village President
Village of Morton Grove
f
ony S. K. IMFakos, Vi :1".ge Clerk
Village of Morton Grove
its President.
Addresses for Notice:
Fire &. Security Systems, Inc.
Attn: Mr_ John Fischer, President
516 W. Campus Drive
Arlington Heights, IL 60004
Village of Morton Grove
Attn: Mr. Daniel J. Staarkxnann, President
6101 Capulina Avenue
Morton Grove, IL 60053
Mr. Kim R. Denkewalter
Denkewalter & Angelo — FSS Attorney
5215 Old Orchard Rd., #1010
Skokie, IL 60077
6
Fire & Security Systems, Inc.
Attn: Mr. Kevin Preble, V.P/Secretary
516 W. Campus Drive
Arlington Heights, IL 60004
Village of Morton Grove
Attn: Mr. Tony S. Kalogerakos, Clerk
6101 Capulina Avenue
Morton Grove, IL 60053
Ms. Terry Liston
Morton Grove — Corporation Counsel
6101 Capulina Avenue
Morton Grove, IL 60053
FiA & SECURITY SYSTEMS, Mc. DESIGN, INSTALLATION & SERVICE SINCE 1970
Exhibit 1-A
Village of Morton Grove
Lease Radio Buyout with Radio Returned to FSS Formula
Months Remaining on Leased Radio Agreement Buyout Figure
12 Months or Less S413.00
24 Months to 13 Months $824.00
36 Months to 25 Months $1,248.00
4814 -oaths to 37 Months $1.714.00
All Leased Radios are to be returned to FSS for inspection to verify proper operation and
acceptance_ If Radio is not operational at the time of -delivery, Village will repair or replace
Radio at Village's expense.
516 W CAMPUS DRIVE ARLINGTON HEIGHTS. IL 60004 847-577-1950 FAX 847-577-1997
AGENCY # 127-000144 CONTRACTOR 124-000440
Le islative Summa
Resolution 17-20
AUTHORIZING THE APPROVAL AND EXECUTION OF AN AGREEMENT
FOR MUNICIPAL FINANCE ADVISORY SERVICES
RELATED TO THE IMPLEMENTATION AND FINANCING
OF A NEW WATER SUPPLY DELIVERY SYSTEM
WITH THE CITY OF EVANSTON AS WATER SUPPLIER
(VILLAGE OF MORTON GROVE, VILLAGE OF NILES, AND SPEER FINANCIAL, INC.)
Introduced: March 27, 2017
Purpose:
Background:
Departs Affected:
Fiscal Impact:
Source of Funds:
Work Impact:
Admin
Recommend:
First Reading:
Special Consider
or Requirements:
Respectfu submitted:
This Resolution will authorize an Agreement with Speer Financial, Inc. to provide
financial advisory and consulting services for the implementation and financing of a new
water supply delivery system with the City of Evanston as the water supplier. The
proposed contract with Speer Financial will provide the Village with expert financial
consultation services regarding funding for these projects which could include the sale of
market securities.
On December 14. 2016 the Villages of Morton Grove and Niles issued a Request for
Proposal to municipal finance advisory firms to solicit proposals for financial advisory
services to create a plan of finance that would produce adequate financing options for all
aspects of a water delivery system project including land acquisition, short-term and long-
term capital costs of the new water system, professional services, and construction of
water transmission lines, pumping and storage, and other related water delivery and
receiving infrastructure that will extend from the City of Evanston's point of delivery to
existing water receiving points owned and operated by the Villages of Morton Grove and
Niles. The proposed submitted by Speer Financial on January 11, 2017, was deemed to
best meet the needs and expectations of the Villages. The proposal was further negotiated
and the scope of services were refined pursuant to the engagement letter attached to this
resolution dated March 21, 2017.
Legal, Administration, and Finance Departments
Speer Financial's fees will be based on the actual amount of work performed. The
Village's share will be one-half of the total expenditures which will be paid equally by the
Villages of Morton Grove and Niles. Speer's fees in connection with any debt offerings
shall be $25,000 plus a percentage between 1/1 0th of one percent to 1120`h of one percent of
the securities issued not to exceed $75,000 per sale. The cost relative to EPA loans shall
be $5,000 plus travel reimbursements.
The Village Administrator, Finance Director, and Corporation Counsel will oversee the
implementation of the Agreement.
Approval as presented.
Not required.
None.
Prepared by;
Ralp E.
Reviewed by:
zerwinski, Vil .ge Administrator Hanna Sullivan, Finance Director
Teresa Ho fin'n Liston, Corporation Counsel
RESOLUTION 17-20
A RESOLUTION AUTHORIZING
THE APPROVAL AND EXECUTION OF AN AGREEMENT
FOR MUNICIPAL FINANCE ADVISORY SERVICES RELATED TO
THE IMPLEMENTATION AND FINANCING OF A NEW WATER SUPPLY
DELIVERY SYSTEM WITH THE CITY OF EVANSTON AS WATER SUPPLIER
(VILLAGE OF MORTON GROVE, VILLAGE OF NILES AND SPEER FINANCIAL, INC.)
(Village of Morton Grove)
WHEREAS, the President and Board of Trustees of the Village of Morton Grove, a home rule
Illinois municipal corporation ("Morton Grove"), desire to approve and enter into an "Agreement For
Municipal Finance Advisory Services Related To The Implementation And Financing Of A New
Water Supply Delivery System With The City Of Evanston As Water Supplier (Village Of Morton
Grove, Village Of Niles And Speer Financial, Inc.)" (the "Agreement") in substantially the same form
as the copy of the Agreement attached hereto as Exhibit "A" and made a part hereof; and
WHEREAS, on December 14, 2016, Morton Grove and the Village of Niles, an Illinois home rule
municipal corporation ("Niles"), issued a Request for Proposals, entitled "Request for Proposals For An
Independent Financial Advisor Services For a New Water Supply Delivery System Issued December 14,
2016" (the "MG -N RFP"), to municipal finance advisory firrns to solicit proposals to provide municipal
financial advisory services to create a plan of finance that will produce adequate financing options for al]
aspects of the below -described water delivery system project, including land acquisition, short-term and
long-term capital costs of the new water system, incurred professional services (e.g., engineering, legal and
other required consultants), and construction of water transmission lines, pumping and storage, and other
related water delivery and receiving infrastructure that will extend from the City of Evanston's
("Evanston") point of delivery near the intersection of Emerson Street and McCormick Boulevard, which is
Evanston's western border, to existing water receiving points (e.g., reservoirs and pumping facilities)
owned and operated respectively by Morton Grove and Niles, and located in Niles near the intersection of
Harlem Avenue and Touhy Avenue, and located in Morton Grove near the intersection of Caldwell Avenue
and Oakton Street, for Morton Grove and Niles (the "Services"); and
WHEREAS, the construction of the water transmission lines, pumping and storage, and other
related water delivery and receiving infrastructure between Evanston's point of delivery to the existing
water receiving points of Niles and Morton Grove is referred to as the "Project," as further defined and set
forth in the Agreement; and
377363_2
WHEREAS, Speer Financial, Inc. ("Consultant") submitted a response to the MG -N RFP,
dated January 11, 2017, to perform the Services relative to the Project, and Morton Grove, Niles and the
Consultant further negotiated and refined the Services that are to be performed as set forth in the
Agreement; and
WHEREAS, Morton Grove agrees to retain the Consultant to perform the Services with Niles,
in accordance with the terms of the Agreement, subject to Niles' consent; and
WHEREAS, the Consultant has agreed to perform the Services in accordance with the terms of
the Agreement; and
WHEREAS, the President and Board of Trustees of the Village of Morton Grove have the
authority to enter into the Agreement pursuant to Morton Grove's home rule powers as provided by
Article VII, Section 10 of the 1970 Constitution of the State of Illinois, the Illinois Intergovernmental
Cooperation Act (5 ILCS 220/1, et seq.) and the Illinois Municipal Code (65 ILCS 5/1, et seq.), and
find that entering into the Agreement is in the best interests of Morton Grove.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MORTON GROVE, ILLINOIS, AS FOLLOWS:
SECTION I: Each Whereas paragraph above is incorporated by reference into this Section 1
and made a part hereof as material and operative provisions of this Resolution.
SECTION 2: The President and Board of Trustees of the Village of Morton Grove authorize
the approval of the economic terms and the attached form of an "Agreement For Municipal Finance
Advisory Services Related To The Implementation And Financing Of A New Water Supply Delivery
System With The City Of Evanston As Water Supplier (Village Of Morton Grove, Village Of Niles
And Speer Financial, Inc.)" (the "Agreement") for the purposes set forth in the Agreement, attached
hereto as Exhibit "A". The President and Board of Trustees of the Village of Morton Grove authorize
and direct the Village Administrator, or his designee, to execute the final version of the Agreement,
which may contain certain non -substantive and non-financial modifications that are approved by the
Village Attorney, and to execute and deliver all other instruments and documents and pay all costs that
are necessary to fulfill Morton Grove's obligations under the Agreement.
SECTION 3: This Resolution shall be in full force and effect upon its passage and approval.
377363_2 2
PASSED THIS 27TH DAY OF MARCH 2017,
Trustee Grear
Trustee Minx
Trustee Pietron
Trustee Ramos
Trustee Thill
Trustee Witko
APPROVED BY ME THIS 27`h DAY OF MARCH 2017
Daniel P. DiMaria, Village President
Village of Morton Grove
Cook County, Illinois
ATTESTED and FILED IN MY OFFICE
THIS 28th DAY OF MARCH 2017
Connie Travis, Village Clerk
Village of Morton Grove
Cook County, Illinois
377353_2 3
Exhibit "A"
Agreement For Municipal Finance Advisory Services Related To
The implementation And Financing Of A New Water Supply Delivery System
With The City Of Evanston As Water Supplier
(Village Of Morton Grove, Village Of Niles And Speer Financial, Inc.)
(attached)
377363_2 4
Speer Financial, Inc.
INDEPENDENT MUNICIPAL ADVISORS
ESTABLISHED 1954
NEV 31J
McCANNA
Chu+rvurrr
DANIEL
PURSES
President
March 21, 2017
Mr. Steven Vinezeano
Village Manager
Village of Niles
1000 Civic Center Drive
Niles, Illinois 60714
DAVID
PHI LL]PS
Excogivu VP
Mr. Ralph Czerwinski
Village Administrator
Village of Morton Grove
6101 Capulina Ave.
Morton Grove, Illinois 60053
R AP I IALLM-A
McKEN2]E
S'ermr VP
MAGGTE
BURGER
SCri1W VP
ANTI-10NY
MICELI
Senior VP
Mr, William Balling
Managing Director
WRB LLC
412 So. Prindle Ave.
Arlington Heights, Illinois 60004
LARRY MARK
BURGER ]ERETINA
ViCe Preudersr Vice Prr.rider7r
Re: Village of Niles and the Village of Morton Grove, Illinois.
Municipal Advisory Services Related to the Implementation and Financing of a New Water Supply
Delivery System
Dear Mr. Vineziano, Mr. Czerwinski and Mr. Balling:
Speer Financial, Inc. ("Speer") is pleased to provide this Engagement Letter to the Village of Niles,
Illinois and the Village of Morton Grove, Illinois (the "Clients") for our services as Municipal Advisor in
connection with the issuance of the implementation and financing of a new water supply delivery system
(the "Project"). This Engagement Letter is provided to memorialize the terms of Speer's engagement (the
"Engagement") as your Municipal Advisor with respect to the Project.
Speer is providing this Engagement Letter to you to remorialize the terms of our engagement (the
"Engagement") as your Municipal Advisor with respect to the Project. This Engagement Letter is
required under current Federal securities law and serves to provide certain additional information to the
Clients, such as disclosures of services, fees, terms and termination, conflict of interest and any material
disciplinary actions.
Should the Clients choose to create and form a third party commission or agency for the purposes of the
Project, Speer will consider such agency or commission a Client with respect to this Engagement.
Services. Speer agrees to provide to the Clients the municipal advisory services (the "Services") set forth
in the attached Exhibit A. Certain limitations to Speer's Services are set forth in the attached Exhibit B.
The Clients, as issuers of municipal securities, are also subject to certain other terms as it relates to the
issuance of securities and Speer's Engagement. These terms are detailed in the attached Exhibit C.
Authorization. The Clients hereby authorize their Village Manager/Administrator and Finance Director
and Project Manager related to the new water supply delivery system (the "Client Contacts") to receive
this Engagement Letter and discuss with Speer the terms and disclosures of this Engagement Letter. Speer
may also rely on the authority of such Client Contacts when receiving direction from such Client Contacts
in the course of Speer providing its Services.
SUITE 4100.ONE NORT3-1 LASALLE STREET • CHICAGO, ILLINOIS 60602 • (312) 346-3700 • FAX (312) 3464833
SUITE 608.531 COMMERCIAL STREET • WATERLOO, IOWA 50701 • (319) 291-2077 • FAX (319) 291-8628
SPEER FINANCIAL, INC,
Term and Termination. Speer's Engagement shall remain in effect until terminated by the Clients or
Speer upon at least thirty (30) days written notice to the other party. If the CIients terminate the
Engagement prior to completion of the Project, Speer expects to negotiate with the Clients a mutually
agreeable compensation for the Services provided by Speer prior to such termination,
Compensation. Speer's compensation for Services on the Project is set forth below.
A. Fees in connection with any debt offering, regardless of sale method, shall be calculated as follows
and contingent on the sale of the securities:
Financial Advisory Services
Related to a bond issuance:
Financial Advisory Services
Related to a Illinois Environmental
Protection Agency (TEPA) Loan:
$25,000 plus 1/10 of 1% of the municipal
securities issued up to $30,000,000 and
1/20 of 1% in excess of $30,000,000, not
to exceed $75,000 per sale.
$5 ,000 plus travel reimbursement if a trip
to Springfield is required. This fee will
only be charged if the Clients choose to
engage Speer on the TEPA loan
transaction.
B. Fees in connection with any post -issuance continuing disclosure services rendered shall be
provided at the following hourly rates:
Municipal Advisor Personnel: $1 DOlhour
Administrative Personnel: $50/hour
Speer will also charge $100 for each filing made by it in accordance with SEC Rule 15c2-12,
including any fling made with. the Municipal Securities Rulemaking Board's Electronic Municipal
Market Access (EMMA) system.
C. Fees in connection with any non -issuance services rendered shall be provided at the following not
to exceed hourly rates. Such fees will only be assessed upon discussion and approval with the
Client Contacts regarding a non -issuance service:
Municipal Advisor Personnel: $ 150/hour
Administrative Personnel: $50/hour
Any non -issuance fees incurred in relation creation of a plan of finance, should the Client decide
not to move forward with any debt offering, will be capped at $5,000.00.
These fees do not include the payment of Speer's out-of-pocket costs as further described in Exhibit B.
See the attached Exhibit D for a description of the conflicts of interest in connection with each form of
compensation
2
SPEER FINANCIAL, INC.
Representations of Client. MSRB Rules, in particular Rule 0-42, require that Speer make a reasonable
inquiry as to the facts that are relevant to the Clients' determination whether to proceed with a course of
action or that form the basis for any advice provided by Speer to the Clients. MSRB Rule G-42 also
requires that Speer undertake a reasonable investigation to determine that it is not basing any
recommendation on materially inaccurate and incomplete information. Speer is also required to use
reasonable diligence to know the essential facts about the Clients and the authority of each person acting on
the Clients' behalf. Speer's Engagement does not include the verification of the truth or accuracy of such
factual representations, as further described in the attached Exhibit C.
As such, the Clients represent and warrant that they will cooperate, and cause their agents to cooperate,
with Speer in carrying out these regulatory duties, including providing to Speer accurate and complete
information and reasonable access to relevant documents, other information and personnel needed to fulfill
such duties and to not intentionally omit any material information relevant to Speer's provision of services.
In addition, to the extent the Clients seek to have Speer provide advice with regard to any recommendation
made by a third party, the Clients shall provide Speer written direction to do so as well as any information
it has received from such third party relating to its recommendation.
Integration and Amendment. This Engagement Letter constitutes and expresses the entire agreement of
the parties with respect to the subject matter hereof, and all promises, undertakings, representations,
agreements, understandings and arrangements, whether oral or written, with reference thereto are merged
herein. No amendments to or alterations or variations of this Engagement Letter shall be valid unless
made in writing and signed by the parties.
Counterparts. This Engagement Letter may be executed in any number of counterparts via facsimile or
other electronic transmission, each of which will be deemed an original, and all of which together will
constitute one and the same instrument.
Dodd -Frank Compliance. Speer is a registered municipal advisor in good standing with both the SEC
{#867-00043) and the MSRB 0143162),
Required Disclosures. MSRB Rule G-42 requires that Speer provide the Clients with disclosures of
material conflicts of interest and information regarding certain legal events and disciplinary history. Such
disclosures are provided in the attached Exhibit D. Should the Clients have any questions or concerns
with this disclosure, the Clients should promptly contact Speer.
Risk Disclosure. Each form of financing has particular financial characteristics and inherent risks.
Provided in the attached Exhibit E is a general description of the most commonly used security structures
of fixed rate municipal bonds in Illinois as well disclosures on the risks of each structure known to Speer at
this time. Should the Clients have any questions or concerns with this disclosure, the Clients should
promptly contact Speer.
3
SPEER FINANCIAL, INC.
We sincerely appreciate this opportunity to be of service, and look forward to working with you,
Sincerely,
SPEER FINANCIAL, INC.
By:
Its: Chairman
Telephone: 312-780-2279
Email: kmccanna@speerfinancial.com
Accepted on behalf of:
VILLAGE OF NILES, ILLINOIS
13y :
Its:
VILLAGE OF MORTON GROVE, ILLINOIS
By:
Its:
4
EXHIBIT A
SPEER FINANCIAL, INC. MUNICIPAL ADVISOR SERVICES FOR
THE VILLAGE OF MORTON GROVE AND THE VILLAGE OF NILES
Phase One: Preparation of Plan of Finance
Speer will provide the services necessary to create a Plan of Finance for the Clients' consideration. The
Plan of Finance should address the phased needs of the project including:
1. Providing immediate assistance to the Villages consulting engineer in completing the
project plan application to be filed with the IEPA by January 31, 2017,
Providing funding plan for the final design engineering services. The expectation is that
the final engineering design work will continence August 1, 2017.
3. Providing funding plan for any land acquisition where public right-of-way may not be
available. The expectation is that the land acquisition needs will be identified in the
corridor route study as early as May 2017.
4. Assisting the Clients in securing financing for the physical construction elements likely
to be assigned to multiple contractors. The expectation is that construction work will
take place between January 2018 through November 2019.
5. Providing a recommendation on the allocation of project capital costs and the long-term
operating costs to the participating members. Currently the intent of the Villages is to
have both capital demand charges and operating charges proportional to actual use. The
plan shall also provide for expanding the numbers of Members participating in the
project.
The Plan of Finance must maximize the use of long-term, low-interest financing available from the
IEPA and also should evaluate the conceptual proposal informally offered by the City of Evanston to
finance the entire system for the Clients.
The Plan of Finance shall also identify the optimal strategy to complete the financing. All reasonable
public funding alternatives may be considered to achieve the optimal financing.
Speer will work with the established Morton Grove and Niles teams in the development of the Plan of
Finance. The Project Manager will serve as the Speer's contact point to discuss alternative approaches
to the Plan of Finance in its development phase. This phase will include at least the following analysis.
1. Speer will become familiar with the Villages' respective financial conditions and
policies, and will advise the Villages on debt policies and other policies that might
affect the marketability of the Villages and or Water Commission bonds and its bond
rating.
2. Speer will become familiar with the project and the Villages' plans for the project as
well as the need for internal improvements for each Village to implement the project.
3. Speer will work with the Clients' Management Team and Village Managers, Finance
Directors, and Villages' staff as may be necessary to determine the most advantageous
5
ways for the Villages or new Water Commission to issue debt, including but not
limited to the type of debt, repayment schedule, expected interest rates, annual
maturity amounts, and call features.
The Plan of Finance should be prepared and presented to the Clients" Management Team in draft form for
comment and evaluation and include a short executive summary of the plan, the key financing objectives and
hurdles for the capital phase of the plan, and options to consider, including Speer's recommended plan to
allocate the long-term operating costs. The final plan should be published and publicly presented,
with Speer prepared to defend the primary recommendations.
The completed Plan of Finance should be a published document, and two Village Board -level
presentations in May 2017, with one presentation for each Village, provided for in the proposal.
Phase Two: Securing the Financing
Speer will serve in advisory and or management capacity to implement on a phased basis the
elements of the Plan of Finance, including the following tasks:
1. Plan and take such actions as necessary to provide for competitive or negotiated sale
of proposed debt or issuance of IEPA loans or combination thereof.
2. Prepare tentative financing timetables setting out action dates for each respective
party/person.
3. Assist the Villages and or Water Commission in the selection and forrnatian of a
financial team, including a list of services required from an underwriter, trustee,
verification agent and other professionals, as agreed upon.
4. Prepare an estimate of all costs of issuance.
5. Provide bond counsel with all relevant information needed for the bond ordinance and
other closing documents.
6. Prepare the Preliminary Official Statement (POS) or other disclosure documents and
arrange for its issuance. The Villages will provide reasonable assistance and
information. Speer will provide a draft POS to the Villages and or Water Commission
and bond counsel for review prior to its release to the investment community.
7. Examine the Villages and or Water Conunission current bond ratings, prepare
credit profiles if required, and coordinate the submittal of requests for bond rating
reviews to rating agencies selected by the Villages/entity.
8. Coordinate any presentations to the rating agencies and bond insurance companies
that might be required for rating reviews or issuance of bond insurance.
9. Assist in negotiation with bond insurers or letter of credit providers.
10. Distribute the POS and any other disclosure documents to the bond market
community.
6
11. Arrange for the publishing of the notice of bond sale in the appropriate
publications.
12. Manage the competitive or negotiated sale process. Arrange for advertising and
premarketing of issue. Represent the Villages and or Water Commission at any bid
opening for a public sale and analyze the bids, identify the most favorable bid, and
make a recommendation as to award of the bid.
Act as the Villages and or Water Commission agent if bid negotiations are required. After
the bid is awarded, prepare an actual debt service table based on accepted coupon rates.
In the event of a negotiated offering, assist the Villages/entity in negotiating appropriate
terms, reviewing spreads, comparing deals, analyzing market levels, and clarifying
syndicate roles with selected underwriter or purchaser.
13. Attend the Board meetings immediately following the bond bid openings to present a
summary of the bid opening.
14. Notify the successful bidder of the results of the bid opening and Board actions.
Prepare the Final Official Statement and any other required disclosure documents
and distribute as required.
15. Coordinate the delivery of the bonds and provide any other documents normally
provided by a financial advisor in order for the bonds to close.
16. Attend bond closings if requested by the Villages/entity or bond counsel.
17. Review and explain the applicability of existing or proposed federal and state laws
which affect the proposed issuance, with particular emphasis on federal arbitrage rules.
1$. Provide continual assistance to member of the Clients' team in procuring IEPA
low interest loans currently available with 20 -year repayment schedules and any
potential WIFFIA 30 -year financing through the IEPA which may become available.
7
EXIIIBIT B
LIMITATIONS TO SPEER'S MUNICIPAL ADVISOR SERVICES
Speer's duties as Municipal Advisor are limited to the Services detailed in Exhibit A. Among other
things, Speer's Engagement does not include:
1. Giving any advice, opinion or representation as to the fiscal prudence or policy priority of
issuing the securities or any other aspect of the securities transaction, including, without limitation, the
undertaking of any project to be financed with the proceeds of the securities, as those are the Clients'
policy decisions.
2. Giving any opinion or advice on the legality of the securities or the tax status of the securities.
3. Preparing any of the following: requests for tax rulings from the Interna] Revenue Service, blue
sky or investment surveys with respect to the securities, state legislative amendments, or pursuing test
cases or other litigation.
4. Undertaking rebate calculations for the securities or anything related to monitoring investments
of securities proceeds or expenditure of securities proceeds, as that is a specialty service provided by
others when appropriate.
5. Participating in the underwriting of the debt, as prohibited by Federal securities law.
6. Monitoring the actual use of proceeds, the timely expenditure of proceeds and the project
completion status.
7. Verifying the accuracy of audited and unaudited financial statements.
8. Giving advice on the investment of securities proceeds.
9. Monitoring ongoing obligations and covenants entered into by the Clients with respect to the
securities, as these tasks are performed by the Clients.
10, The Services do not include the payment by Speer of its "out of pocket" expenses, including but
not limited to, the utilization of a bidding platform (SpeerAuction or SpeerBids), verification services as
requested by the Clients, mailing, overnight and messenger delivery and printing and copying costs.
11. Filing material events notices or otherwise assisting the Clients with its continuing disclosure
obligations.
8
EXHIBIT C
OTHER TERMS OF THE SPEER ENGAGEMENT
Please note the following with respect to the Clients' role in connection with each issuance of securities.
1. It is important for the Clients to read and understand the documents Speer provides to the Clients
because the Clients will be confirming the truth, accuracy and completeness of matters contained in
those documents at the issuance of the securities. If the documents contain incorrect or incomplete
factual statements, the Clients must call those to Speer's attention. Speer will not perform an
independent investigation or verification to determine the accuracy, completeness or sufficiency of
any such document or render any advice, view or comfort that the Disclosure Document or other
disclosure document does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements contained therein, in light of the circumstances under
which they were made, not misleading. Any information in such documents does not constitute a
review, audit or certified forecast of future events and any such financial information may not
conform to accounting principles applicable to compilations of financial information. Any untruth,
inaccuracy or incompleteness may have adverse consequences affecting either the tax exemption of
interest paid on the securities or the adequacy of disclosures made in the Disclosure Document
under State and Federal securities laws, with resulting potential liability for the Clients. During the
course of its Engagement, Speer will assume and rely on the Client to provide Speer with complete
and timely information on all developments pertaining to any aspect of the securities and their
security. Speer understands that the Clients will cooperate with Speer in this regard.
2. To the extent that during the course of Speer's advising the Clients a relevant matter comes to
Speer's attention which appears to be contrary to what is contained in the transaction documents
including any representations in the transaction documents or in the Disclosure Document, Speer
may ask the Clients about such apparent divergence of the facts; but to the extent that the facts and
representations stated in the documents Speer provides to the Clients, and are not corrected by the
Clients, Speer is then relying upon the Clients' signed certifications for their truth, accuracy and
completeness.
3. Issuing the securities as "securities" under State and Federal securities laws and on a tax-exempt
basis is a serious undertaking. As the issuer of the securities, the Clients are obligated under that
State and Federal securities laws and the Federal tax laws to disclose all material facts. The Clients
have a duty to exercise "due diligence" in determining the accuracy and completeness of the
information used in the Disclosure Document and the information upon which legal opinions related
to the securities are based, The Clients' lawyers, accountants and advisors can assist the Clients in
fulfilling these duties, but the Clients in their corporate capacity, including the Clients' knowledge,
has the collective knowledge of the facts pertinent to the transaction and the ultimate responsibility
for the presentation and disclosure of the relevant information.
4. Requirements of issuing debt include that the Clients are current in its annual continuing disclosure
obligations, including material events notices, and current in its arbitrage rebate obligations. These
requirements arc the obligation of the Clients and not of Speer or bond counsel.
9
EXHIBIT D
REQUIRED DISCLOSURES
1, DISCLOSURE OF CONFLICTS OF INTEREST
A. Various Forms of Compensation
The Municipal Securities Rulemaking Board (MSRB) requires us, as your municipal advisor, to provide written
disclosure to you about the actual or potential conflicts of interest presented by various forms of compensation.
We must provide this disclosure unless you have required that a particular form of compensation be used. You
should select a form of compensation that best meets your needs and the agreed upon scope of services.
The forms of compensation for municipal advisors vary according to the nature of the engagement and
requirements of the Client, among other factors. Various forms of compensation present actual or potential
conflicts of interest because they may create an incentive for an advisor w recommend one course of action over
another if it is more beneficial to the advisor to do so. This document discusses various forms of compensation
and the timing of payments to the advisor.
Fixed fee. Under a fixed fee form of compensation, the municipal advisor is paid a fixed amount established at
the outset of the transaction. The amount is usually based upon an analysis by the Client and the advisor of,
among other things, the expected duration and complexity of the transaction and the agreed-upon scope of work
that the advisor will perform. This form of compensation presents a potentia] conflict of interest because, if the
transaction requires more work than originally contemplated, the advisor may suffer a loss. Thus, the advisor may
recommend less time-consuming alternatives, or fail to do a thorough analysis of alternatives. There may be
additional conflicts of interest if the municipal advisor's fee is contingent upon the successful completion of a
financing, as described below.
Hourly fee. Under an hourly fee form of compensation, the municipal advisor is paid an amount equal to the
number of hours worked by the advisor times an agreed-upon hourly billing rate. This form of compensation
presents a potential conflict of interest if the Client and the advisor do not agree on a reasonable maximum
amount at the outset of the engagement, because the advisor does not have a financial incentive to recommend
alternatives that would result in fewer hours worked. In some cases, an hourly fee may be applied against a
retainer (e.g., a retainer payable monthly), in which case it is payable whether or not a financing closes.
Alternatively, it may he contingent upon the successful completion of a financing, in which case there may be
additional conflicts of interest, as described below.
Fee contingent upon the completion of a financiLig or other transaction. Under a contingent fee form of
compensation, payment of an advisor's fee is dependent upon the successful completion of a financing or other
transaction. Although this form of compensation may be customary for the Client, it presents a conflict because
the advisor may have an incentive to recommend unnecessary financings or financings that are disadvantageous to
the Client. For example, when facts or circumstances arise that could cause the financing or other transaction to
be delayed or fail to close, an advisor may have an incentive to discourage a full consideration of such facts and
circumstances, or to discourage consideration of alternatives that may result in the cancellation of the financing or
other transaction.
Fee paid under a retainer agreement. Under a retainer agreement, fees are paid to a municipal advisor
periodically (e.g., monthly) and axe not contingent upon the completion of a financing or other transaction. Fees
paid under a retainer agreement may be calculated on a fixed fee basis (e.g., a fixed fee per month regardless of
the number of' hours worked) or an hourly basis (e.g., a minimum monthly payment, with additional amounts
payable if a certain number of hours worked is exceeded)_ A retainer agreement does not present the conflicts
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associated with a contingent fee arrangement (described above).
Fee based upon principal or notional amount and term of transaction. Under this form of compensation, the
municipal advisor's fee is based upon a percentage of the principal amount of an issue of securities (e.g., bonds)
or, in the case of a derivative, the present value of or notional amount and term of the derivative. This form of
compensation presents a conflict of interest because the advisor may have an incentive to advise the Client to
increase the size of the securities issue or modify the derivative for the purpose of increasing the advisor's
compensation.
B. Other Material Conflicts of Interest
The MSRB requires us, as your municipal advisor, to provide written disclosure to you about material conflicts of
interest. The following represent Speer material conflicts of interest known to Speer as of the date of this
Engagement Letter.
As of the date of this Engagement, Speer is unaware of any material conflicts of interest.
2. DISCLOSURE OF LEGAL EVENTS AND DISCIPLINARY ACTION
The MSRB requires us, as your municipal advisor, to provide written disclosure to you of any legal or
disciplinary events material to your evaluation of Speer or the integrity of Speer's management or advisory
personnel,
Material Legal or Disciplinary Event. There are no legal or disciplinary events that are material to the Client's
evaluation of Speer or the integrity of Speer's management or advisory personnel disclosed, or that should be
disclosed, on any Form MA or Form MA -1 filed with the SEC.
How to Access Form MA and Form MA -I Filings. Speer's most recent form MA and each most recent Form
MA -I filed with the SEC are available on the SEC's EDGAR system at:
http://www.sec,govicgi-binibrowse-edgar?action = getcompany &C IK = 0001606944
Most Recent Change in Legal or Disciplinary Event Disclosure. Speer has not made any materia] legal or
disciplinary event disclosures on Form MA or any Farm MA -I filed with the SEC.
3. FUTURE DISCLOSURES
As required by MSRB Rule G-42, the Required Disclosures found in this Exhibit D may be supplemented or
amended, from time to time as needed, to reflect changed circumstances resulting in new conflicts of interest or
changes in conflicts of interest described above, or to provide updated information with regard to any legal or
disciplinary events of Speer. Speer will provide the Client with any such supplemental or amended information as
it becomes available through the term of the Municipal Advisory Relationship.
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EXHIBIT E
FINANCIAL CHARACTERISTICS AND RISKS OF MUNICIPAL BONDS IN ILLINOIS
The following is a general description of the financial characteristics, security structures and risks of
municipal fixed rate bonds ("Municipal Bonds') issued in Illinois. The risks being disclosed in this
Exhibit E are those that are known to Speer at this time and should be considered by the Client prior to
deciding whether to issue Municipal Bonds. If you have any questions or concerns about any disclosure
made, please notify Speer immediately.
Financial Characteristics
Maturity and Interest. Municipal Bonds are interest-bearing debt securities issued by state and local
governments, political subdivisions and agencies and authorities. Maturity dates for Municipal Bonds
are fixed at the time of issuance and may include serial maturities (specified principal amounts are
payable on the same date in each year until final maturity) or one or more term maturities (specified
principal an aunts are payable on each term maturity date) or a combination of serial and term
maturities. The final maturity date typically will range between 10 and 30 years from the date of
issuance. Interest on the Municipal Bonds typically is paid semiannually at a stated fixed rate or rates
for each maturity date.
Redemption. Municipal Bonds may be subject to optional redemption, which allows you, at your
option, to redeem some or all of the bonds on a date prior to scheduled maturity, such as in connection
with the issuance of refunding bonds to take advantage of lower interest rates. Municipal Bonds will be
subject to optional redemption only after the passage of a specified period of time, often approximately
ten years from the date of issuance, and upon payment of the redemption price set forth in the bonds,
which may include a redemption premium. You will be required to send out a notice of optional
redemption to the holders of the bonds, usually not less than 30 days prior to the redemption date.
Municipal Bonds with term maturity dates also may be subject to mandatory sinking fund redemption,
which requires you to redeem specified principal amounts of the bonds annually in advance of the term
maturity date. The mandatory sinking fund redemption price is 100 % of the principal amount of the
bonds to be redeemed.
Security
Payment of principal of and interest on a municipal security, including Municipal Bonds, may be
backed by various types of pledges and forms of security, some of which are described below. The
description below regarding "Security" is only a brief summary of certain possible security provisions
for the bonds and is not intended as legal advice. You should consult with your bond counsel for further
information regarding the security for the bonds.
General Obligation Bonds. "General obligation bonds" are debt securities to which your full faith and
credit is pledged to pay principal and interest. If you have taxing power, generally you will pledge to
use your ad valorem (property) taxing power to pay principal and interest. All taxable property in the
taxing body is subject to the levy of taxes to pay the same without limitation as to rate or amount. The
term 'limited" tax is used when a limit exists as to the amount of the tax (see below). General
obligation bonds constitute a debt and, depending on applicable state law, may require that you obtain
approval by voters prior to issuance. In the event of default in required payments of interest or
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principal, the holders of general obligation bonds have certain rights under state law to compel you to
impose a tax levy.
Limited Bonds. Taxing bodies, subject to the Property Tax Extension Limitation Law of the State of
Illinois, as amended (the "Extension Limitation Law"), can issue limited bonds. Limited bonds are
issued in lieu of general obligation bonds that otherwise have been authorized by applicable law. They
are payable from a separate property tax levy that is unlimited as to rate, but the amount of taxes that
will be extended to pay the bonds is limited by the Extension Limitation Law, Limited bonds are
payable from your debt service extension base (the "Base"), which is an amount equal to that portion of
the extension for the applicable levy year for the payment of non -referendum bonds (other than alternate
bonds or refunding bonds issued to refund bonds initially issued pursuant to referendum), increased
each year, beginning with the 2009 levy year, by the lesser of 5% or the percentage in the Consumer
Price Index for All Urban Consumers (as defined in the Extension Limitation Law) during the 12 -month
calendar year preceding the levy year, The Limitation Law further provides that the annual amount of
taxes to be extended to pay the limited bonds and all other limited bonds heretofore and hereafter issued
by you shall not exceed the Base less the amount extended to pay certain other non -referendum bonds
heretofore and hereafter issued by you and bonds issued to refund such bonds.
Limited bonds constitute a debt. In the event of default in required payments of interest or principal, the
holders of limited bonds have certain rights under state law to compel you to impose a tax levy (limited
as set forth in the previous paragraph),
Alternate Bands. Section 15 of the Local Government Debt Reform Act of the State of Illinois, as
amended (the "Debt Reform Act"), permits you to issue alternate or "double-barrelled" bonds, Alternate
bonds are general obligation bonds payable from enterprise revenues or from a revenue source, or both,
with your genera] obligation acting as backup security for the bonds. Once issued, and until paid or
defeased, alternate bonds are a general obligation, for the payment of which you pledge your full faith
and credit. Such bonds are payable from the levy of ad valorem property taxes upon all taxable property
in your taxing body without limitation as to rate or amount. The intent of the Debt Reform Act is for
the enterprise revenues or the revenue source to be sufficient to pay the debt service on the alternate
bonds so that taxes need not be levied, or, if levied, need not be extended, for such payment.
The Debt Reform Act prescribes several conditions that must be met before alternate bonds may be
issued. First, alternate bonds roust be issued for a lawful corporate purpose. If issued in lieu of revenue
bonds (as described below), then the revenue bonds must have been authorized under applicable law
(including satisfying any backdoor referendum requirements) and the alternate bonds must be issued for
the purpose for which the revenue bonds were authorized. If issued payable from a revenue source
limited in its purposes or applications, then the alternate bonds must be issued only for such Limited
purposes or applications.
Second, alternate bonds are subject to a backdoor referendum. The issuance of alternate bonds roust be
submitted to referendum if, within 30 days after publication of the authorizing ordinance and notice of
intent to issue the alternate bonds, a petition is filed. The petition must be signed by the greater of (i)
7.5% of your registered voters or (ii) the lesser of 200 of the registered voters or 15% of the registered
voters, asking that the issuance of the alternate bonds be submitted to referendum. Backdoor
referendum proceedings for revenue bonds and for alternate bonds to be issued in lieu of revenue bonds
may be conducted at the same time.
Notwithstanding the previous paragraph, in governmental units with fewer than 500,000 inhabitants that
propose to issue alternate bonds payable solely from enterprise revenues, except for alternate bonds that
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finance or refinance projects concerning public utilities, public streets and roads or public safety
facilities and related infrastructure and equipment, if no petition is filed within 45 days of publication of
the authorizing ordinance and notice, the alternate bonds may be issued. For purposes of this paragraph,
the required number of petitioners for a governmental unit with more than 4,000 registered voters is the
lesser of (i) 5% of the registered voters or (ii) 5,000 registered voters and the required number of
petitioners for a governmental unit with 4,000 or fewer registered voters is the lesser of (i) 15 % of the
registered voters or (ii) 200 registered voters.
Third, you must demonstrate that the enterprise revenues are, or that the revenue source is, sufficient to
meet the requirements of the Debt Reform Act. If enterprise revenues are pledged as security for the
alternate bonds, you must demonstrate that such revenues are sufficient in each year to pay all of the
following:
(a) costs of operation and maintenance of the utility or enterprise, excluding depreciation;
(b) debt service on all outstanding revenue bonds payable from such enterprise revenues;
(e) all amounts required to meet any fund or account requirements with respect to such outstanding
revenue bonds;
(d) other contractual or tort liability obligations, if any, payable from such enterprise revenues; and
(e) in each year, an amount not less than 1.25 times debt service on all:
(i) outstanding alternate bonds payable from such enterprise revenues; and
(ii) the alternate bonds proposed to be issued.
If one or more revenue sources are pledged as security for the alternate bonds, you trust demonstrate
that such revenue sources are sufficient in each year to provide not less than 1.25 times (1.10 times if
the revenue source is a government revenue source) debt service on all outstanding alternate bonds
payable from such revenue source and on the alternate bonds proposed to be issued. You need not meet
the test described in this paragraph for the amount of debt service set aside at closing from bond
proceeds or other moneys.
The determination of the sufficiency of enterprise revenues or revenue source or sources, as applicable,
must be supported by reference to the most recent audit of the governmental unit, which roust be for a
fiscal year ending on a date that is not more than 18 months prior to the date of issuance of the alternate
bonds_ If such audit does not adequately show such enterprise revenues or revenue source, as
applicable, or if such enterprise revenues or revenue source, as applicable, are shown to be insufficient,
then the determination of sufficiency must be supported by the report of an independent accountant or
feasibility analyst, the latter having a national reputation for expertise in such matters, who is not
otherwise involved in the project being financed or refinanced with the proceeds of the alternate bonds,
demonstrating the sufficiency of such revenues and explaining, if appropriate, by what means the
revenues will be greater than as shown in the audit.
Alternate bonds may be issued to refund alternate bonds without meeting any of the conditions set forth
above if the term of the refunding bonds is not longer than the term of the refunded bonds and that the
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debt service payable in any year on the refunding bonds does not exceed the debt service payable in
such year on the refunded bonds.
Alternate bonds are not regarded or included in any computation of indebtedness for the purpose of any
statutory provision or limitation unless taxes, other than a designated revenue source, are extended to
pay the bonds. In the event taxes are extended, the amount of alternate bonds then outstanding counts
against your debt limit until your audit shows that the alternate bonds have been paid from the pledged
enterprise revenues or revenue source for a complete fiscal year.
In the event of default in required payments of interest or principal, the holders of alternate bonds have
certain rights under state law to compel you to increase the pledged revenues or have the tax levy
extended for such payment.
Debt Certificates. You may issue "debt certificates" to evidence your payment obligation under an
installment contract or lease. Your governing body may provide for the treasurer, comptroller, finance
officer or other officer of the governing body charged with financial administration to act as
counterparty to the installment contract or lease, as nominee- seller or lessor. The installment contract
or lease is then executed by your authorized officer and is filed with and executed by the nominee -seller
or lessor. As contracts for the acquisition and construction of the project to be financed are executed
(the "Work Contracts"), the governing body orders those Work Contracts to be filed with the nominee -
seller or lessor. The nominee- seller or lessor identifies the Work Contracts to the particular installment
contract or lease. Such identification permits the payment of the Work Contracts from the proceeds of
the debt certificates.
Debt certificates are paid from your lawfully available funds. You are expected to agree to annually
budget/appropriate amounts to pay the principal of and interest on the debt certificates. There is no
separate levy available for the purpose of making such payments.
Debt certificates constitute a debt. In the event of default in required payments of interest or principal,
the holders of the debt certificates cannot compel you to impose a tax levy, but you have promised the
holders of the debt certificates that you will pay the debt certificates and they can proceed to file suit to
enforce such promise.
Special Service Area Bonds. When special services are provided to a particular contiguous area within
a municipality, in addition to the services generally provided throughout the municipality, a
municipality may create a special service area. The cost of the special services may be paid from taxes
levied upon the taxable real property within the area, and such taxes may be levied in the special
service area at a rate or amount sufficient to produce revenues required to provide the special services.
Prior to the first levy of taxes in the special service area and prior to or within 60 days after the
adoption of the ordinance proposing the establishment of the special service area, you are required to
hold a public hearing and to publish and mail notice of such hearing. At the public hearing, any
interested person may file written objections or give oral statements with respect to the establishment of
the special service area and the levy of taxes therein. As a result of the hearing, you may delete areas
from the special service area as long as the remaining area is contiguous. After the heating, an
ordinance establishing the special service area must be timely filed with the county recorder and the
county clerk.
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Bonds secured by the full faith and credit of the special service area territory may be issued for the
purpose of providing special services. Such bonds are paid from the levy of taxes unlimited as to rate or
amount against the taxable real property in the special service area. The county clerk will annually
extend taxes against all of the taxable real property in the area in amounts sufficient to pay the
principal and interest on the bonds. Such bonds are exempt from the Extension Limitation Law of the
State of Illinois, as amended.
Prior to the issuance of special service area bonds, you must give published and mailed notice and hold
a hearing at which any interested person may file written objections, or be heard orally, with respect to
the issuance of the bonds. The questions of the creation of the special service area, the levy of a tax on
such area and the issuance of special service area bonds may all be considered at the same hearing.
The creation of the special service area, the levy of a tax within the area and the issuance of bonds for
the provision of special services to the area are subject to a petition process. If, within 60 days after the
public hearing, a petition signed by not Tess than 51% of the electors residing within the special service
area and 51% of the owners of record of land located within the special service area is filed with the
municipal clerk objecting to the creation of the special service area, the levy of a tax or the issuance of
bonds, then the area may not be created, the tax may not be levied and the bonds may not be issued. If
such a petition is filed, the subject matter of the petition may not be proposed relative to any of the
signatories within the next two years.
Special service area bonds do not constitute an indebtedness of the municipality, and no exercise of
your taxing power may be compelled on behalf of the special service area bondholders other than the ad
valorem property taxes to be extended on the taxable real property in the special service area.
Revenue ,fonds. "Revenue bonds" are debt securities that are payable only from a specific source or
sources of revenues. Revenue bonds are not a pledge of your full faith and credit and you are obligated
to pay principal and interest on your revenue bonds only from the revenue source(s) specifically
pledged to the bonds. Revenue bonds do not permit the bondholders to compel you to impose a tax levy
for payment of debt service. Pledged revenues may be derived from operation of the financed project or
system, grants or excise or other specified taxes. Generally, subject to state law or local charter
requirements, you are not required to obtain voter approval prior to issuance of revenue bonds.
Revenue bonds may, however, be subject to a backdoor referendum. If the specified source(s) of
revenue become inadequate, a default in payment of principal or interest may occur. Various types of
pledges of revenue may be used to secure interest and principal payments on revenue bonds. The nature
of these pledges may differ widely based on state law, the type of issuer, the type of revenue stream and
other factors.
Some revenue bonds, referred to as conduit revenue bonds, may be issued by a governmental issuer
acting as conduit for the benefit of a private sector entity or a 501(c)(3) organization (the obligor).
Conduit revenue bonds commonly are issued for not-for-profit hospitals, educational institutions, single
and multi -family housing, airports, industrial or economic development projects, and student loan
programs, among other obligors. Principal and interest on conduit revenue bonds normally are paid
exclusively from revenues pledged by the obligor.
Unless otherwise specified under the terms of the bonds, you are not required to make payments of
principal or interest if the obligor defaults.
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Tax Increment Financing. Tax increment financing provides a means for municipalities, after the
approval of a "redevelopment plan and project," to redevelop blighted, conservation or industrial park
conservation areas. The Tax Increment Allocation Redevelopment Act of the State of Illinois, as
amended, allows incremental property taxes to be used to pay certain redevelopment project costs and
to pay debt service with respect to tax increment bonds issued to pay redevelopment project costs. The
municipality is authorized to issue tax increment bonds payable from, and secured by, incremental
property tax revenues expected to be generated in the redevelopment project area. Incremental property
tax revenues are derived from the increase in the current equalized assessed valuation of the real
property within the redevelopment project area over and above the certified initial equalized assessed
valuation for such redevelopment project area.
Before adopting the necessary ordinances to designate a redevelopment project area, a municipality
must hold a public hearing and convene a joint review board to consider the proposal. At the public
hearing, any interested person or taxing district may file written objections and may give oral
statements with respect to the proposed financing. After the municipality has considered all comments
made by the public and the joint review board, it may adopt the necessary ordinances to designate a
redevelopment project area.
Tax increment bonds may be secured by the full faith and credit of the municipality. The issuance of
general obligation tax increment bonds is subject to a "backdoor," rather than a direct, referendum.
Once a municipality has authorized the issuance of tax increment obligations secured by its full faith
and credit, the ordinance authorizing the issuance must be published in a newspaper of general
circulation in the municipality. In response, voters may petition to request that the question of issuing
obligations using the full faith and credit of the municipality as security to pay for redevelopment
project costs be submitted to the electors of the municipality. If, within 30 days after the publication,
l0% of the registered voters of the municipality sign such a petition, the question of whether to issue tax
increment bonds secured by the municipality' s full faith and credit must be approved by the voters
pursuant to referendum. Such bonds are not exempt from the Extension Limitation Law unless first
approved at referendum.
Tax increment revenues may also be treated as a "revenue source" and be pledged to the payment of
alternate bonds under Section 15 of the Debt Reform Act.
Risk Considerations
Certain risks may arise in connection with your issuance of Municipal Bonds, including some or all of
the following (generally, the obligor, rather than you, will bear these risks for conduit revenue bonds);
Issuer Default Risk. You may be in default if the funds pledged to secure your bonds are not sufficient
to pay debt service on the bonds when due. The consequences of a default may be serious for ycu and,
depending on applicable state law and the terms of the authorizing documents, the holders of the bonds,
the trustee and any credit support provider may be able to exercise a range of available remedies against
you. For example, if the bonds are secured by a general obligation pledge, you tray be ordered by a
court to raise taxes. Other budgetary adjustments also may be necessary to enable you to provide
sufficient funds to pay debt service on the bonds. If the bonds are revenue bonds or alternate bonds, you
may be required to take steps to increase the available revenues that are pledged as security for the
bonds. A default may negatively impact your credit ratings and may effectively limit your ability to
publicly offer bonds or other securities at market interest rate levels. Further, if you are unable to
provide sufficient funds to remedy the default, subject to applicable state law and the terms of the
17
authorizing documents, you may find it necessary to consider available alternatives under state Iaw,
including (for some issuers) state -mandated receivership or bankruptcy. A default also may occur if you
are unable to comply with covenants or other provisions agreed to in connection with the issuance of the
bonds.
This description is only a brief summary of issues relating to defaults and is not intended as legal
advice. You should consult with your bond counsel for further information regarding defaults and
remedies.
Redemption Risk. Your ability to redeem the bonds prior to maturity may be limited, depending on the
terms of any optional redemption provisions. In the event that interest rates decline, you may be unable
to take advantage of the lower interest rates to reduce debt service.
Refinancing Risk. If your financing plan contemplates refinancing some or all of the bonds at maturity
(for example, if you have term maturities or if you choose a shorter final maturity than might otherwise
be permitted under the applicable federal tax rules), market conditions or changes in law may limit or
prevent you from refinancing those bonds when required. Further, limitations in the federal tax rules
on advance refunding of bonds (an advance refunding of bonds occurs when tax-exempt bonds are
refunded more than 90 days prior to the date on which those bonds may be retired) may restrict your
ability to refund the bonds to take advantage of lower interest rates,
Reinvestment Risk. You may have proceeds of the bonds to invest prior to the time that you are able to
spend those proceeds for the authorized purpose. Depending on market conditions, you may not be able
to invest those proceeds at or near the rate of interest that you are paying on the bonds, which is
referred to as "negative arbitrage."
Tar Compliance Risk. The issuance of tax-exempt bonds is subject to a number of requirements under
the United States Internal Revenue Code, as enforced by the Internal Revenue Service (IRS)_ You must
take certain steps and make certain representations prior to the issuance of tax-exempt bonds. You also
must covenant to take certain additional actions after issuance of the tax-exempt bonds, A breach of
your representations or your failure to comply with certain tax -related covenants may cause the interest
on the bonds to become taxable retroactively to the date of issuance of the bonds, which may result in
an increase in the interest rate that you pay on the bonds or the mandatory redemption of the bonds.
The IRS also may audit you or your bonds, in some cases on a random basis and in other cases targeted
to specific types of bond issues or tax concerns. If the bonds are declared taxable, or if you are
subject to audit, the market price of your bonds may be adversely affected. Further, your ability to
issue other tax-exempt bonds also may be limited.
This description of tax compliance risks is not intended as legal advice and you should consult with
your bond counsel regarding tax implications of issuing the bonds.
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