CITY COUNCIL 2015/08/03 Agenda
THE CITY OF LAKE FOREST
CITY COUNCIL AGENDA
August 3, 2015
City Hall Council Chambers
Honorable Mayor, Donald Schoenheider
Catherine Waldeck, Alderman First Ward Stanford Tack, Alderman Third Ward
Prudence R. Beidler, Alderman First Ward Jack Reisenberg, Alderman Third Ward
George Pandaleon, Alderman Second Ward Michael Adelman, Alderman Fourth Ward
Timothy Newman, Alderman Second Ward Michelle Moreno, Alderman Fourth Ward
CALL TO ORDER AND ROLL CALL 6:30 p.m.
REPORTS OF CITY OFFICERS
1. COMMENTS BY MAYOR
A. 2015-2016 Board and Commission Appointments/Reappointments
HISTORIC PRESERVATION COMMISSION
NAME OF MEMBER APPOINT/REAPPOINT WARD
Pete Schaefer Appoint 3
A copy of Volunteer Profile sheet can be found on page 19.
COUNCIL ACTION: Approve the Mayors Appointment
2. COMMENTS BY CITY MANAGER
A. Police Department Towing Policy Review and Update
STAFF CONTACT: James Held, Chief of Police (847) 810.3802
PURPOSE AND ACTION REQUESTED: For information only purposes the Police Department
is presenting an updated towing policy in response to concerns raised by a local towing
vendor. The new policy is included on page 20.
BACKGROUND/DISCUSSION: On many occasions, the Police Department needs to utilize
towing services for a variety of reasons; the most common being for accidents when a
vehicle is not drivable. It has been the practice of the Lake Forest Police Department to
maintain a tow list that would be used for these types of situations. This list is only utilized
when vehicle operators are unable to arrange for a tow on their own, usually because
most people do not know what tow services are available in the area. They may contact
or have the police contact a preferred tow service if it will not delay the removal of the
inoperable vehicle. In most cases, the police will utilize the tow list when drivers do not
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August 3, 2015 City Council Agenda
have a preference. The officer on scene will contact central dispatch and request the
“next tow on the list” for the car. The police dispatcher will contact the tow company
next on the tow list and request a response to the scene of the accident. This process has
worked very well in the past.
Along with other surrounding communities, Lake Forest has established a fee structure for
tow services in order to avoid one company charging more than another for the same
service. Tow vendors desiring to be included on the tow list must abide by this fee
structure.
The Police Department may also need to utilize a tow service for “arrest tows”. This
procedure is somewhat different in that the police department utilizes only one vendor.
The vendor utilized is on the City’s approved vendor list (adopted last May), utilized by
the City for the towing of City vehicles when necessary. This vendor must meet other
requirements separate from the standard “tow list” vendors.
BUDGET/FISCAL IMPACT: None. The City does not incur costs for tow services unless the
service is for a City owned vehicle.
COUNCIL ACTION: No action required. The revised towing policy was prepared by the
Police Department with assistance from the City Attorney. The policy was then reviewed
and endorsed by the Legal Committee. With the new policy in place, the Police
Department will be notifying each of its current tow list companies of the new
requirements and application procedure to be included on the list.
B. Update on City’s Special Events Policy
Attached beginning on page 27 is a staff report including a copy of the City’s current
Special Event Policy and a listing of annual events in the community. The City Manager
will report on the staff’s review of the policy.
3. COMMENTS BY COUNCIL MEMBERS
FINANCE COMMITTEE
A. Consideration of an Ordinance providing for the issuance of up to
$10,000,000 General Obligation Bonds, Series 2015, for the purpose of
financing certain capital improvements within the City, including but not
limited to, infrastructure improvements in the City’s Laurel Avenue Tax
Increment Financing District, providing for the levy and collection of a direct
annual tax sufficient to pay the principal and interest on the bonds, and
authorizing the sale of the bonds to the purchaser thereof. (Second Reading
and Final Approval)
PRESENTED BY: ELIZABETH HOLLEB, FINANCE DIRECTOR (847) 810-3612
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August 3, 2015 City Council Agenda
PURPOSE AND ACTION REQUESTED: Staff requests that City Council grant final approval of
the ordinance authorizing issuance of 2015 general obligation bonds.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
City Council 7/20/15 First reading of bond Ordinance
BACKGROUND/DISCUSSION: The City’s Five-Year Capital Improvement Program
anticipates the issuance of bonds in Fiscal Year 2016 of approximately $4.8 million to fund
capital improvements in the City. The remaining bond proceeds will be used to support
Tax Increment Financing (TIF)-eligible improvements in the recently approved TIF district
for redevelopment of the Laurel and Western Avenue property. The TIF bond proceeds
associated with this issue will reimburse costs associated with property acquisition, site
preparation, environmental mitigation and public works improvements, as well as fund
capitalized interest on the bonds.
The bond issue is currently estimated at $10,000,000 but is subject to change based on
bids received to ensure bank-qualified status of the issue. Moody’s Investors Service
conducted a rating review with Finance Director Elizabeth Holleb on July 16 and on July
24, the City was notified that Moody’s had issued a Aaa rating on this issue and affirmed
the Aaa rating on all outstanding obligations.
FISCAL IMPACT: The interest rate on the bond issue will be determined at the online bid
auction scheduled for August 3. Debt service on the bond issue is scheduled through
December 2035 and will be paid from the City’s property tax levy for debt and TIF
increment. The bonds will be callable in whole or in part on or after December 15, 2023.
RECOMMENDED ACTION: Grant final approval of the bond ordinance (page 39). An
online bid will occur on Monday, August 3. At the August 3 City Council meeting, a final
bond ordinance will be presented for Council consideration that will include the
successful bidder information and financial details
PUBLIC WORKS COMMITTEE
1. Request City Council Approval to Direct the Water Plant’s Design Engineer to
Provide Filter Bids for Both an 11 and 14 Million Gallons / Day (MGD) Plant
Capacity
PRESENTED BY: PUBLIC WORKS COMMITTEE CHAIRMAN WALDECK
CONTACT: Michael Thomas, Director of Public Works (810-3540)
PURPOSE AND ACTION REQUESTED: Staff is requesting City Council approval to direct
Strand Associates to provide the City Council with formal bids for the water plant’s filters
at both an 11 and 14 million gallons / day (mgd) capacity.
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August 3, 2015 City Council Agenda
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
City Council Workshop July 27, 2015 Reviewed & Recommended
BACKGROUND/DISCUSSION: In May, 2014, the City received a letter from its water plant
filter supplier, AquaSource, stating that the filters utilized at the water plant would no
longer be manufactured. AquaSource had decided to change their business model and
focus on the installation of filters supplied by other membrane suppliers. The City was
able to purchase an additional twenty-four filters in September, 2014. The purchase has
provided a timeline of approximately five years for the City to retrofit its water plant with a
membrane filter provided by a different manufacturer.
Beginning in June, 2014, the Public Works Committee performed a very comprehensive
evaluation of the various options available to address a new filter system at the plant.
After thirteen meetings analyzing the options and associated costs, the Public Works
Committee provided its recommendation to the City Council at the July 27, 2015 City
Council Workshop Meeting. The Committee recommended that the design engineering
firm, Strand Associates, proceed with bidding the filter acquisition at both the 11 and 14
million gallons / day capacity. Bids will be reviewed by the Public Works Committee in
December, 2015 and a formal recommendation will be provided to the City Council for
their approval at the January 19, 2016 City Council meeting.
BUDGET/FISCAL IMPACT: Strand Associates estimated the cost difference between an 11
and 14 million gallons / day filter capacity at approximately $400,000. At the July, 2015
workshop, City Council acknowledged the increase in cost between the two filter
capacities and agreed that a final decision on either an 11 or a 14 mgd plant capacity
would be determined based upon the bids and the recommendations received by the
Public Works Committee in January, 2016.
COUNCIL ACTION: Staff Requests City Council Approval to Direct the Water Plant’s Design
Engineer to Provide Filter Bids for Both an 11 and 14 Million Gallons / Day (MGD) Plant
Capacity. Both Capacities Will Be Reviewed by the Public Works Committee in
December, 2015 and a Recommendation Forward for City Council Approval in January,
2016.
2. Consideration of an Ordinance Proposing the Establishment of a Special
Service Area for the Installation of a Sanitary Sewer System along Regency
Lane (SSA #40). (First Reading and if Desired by the City Council, Final
Approval)
PRESENTED BY: PUBLIC WORKS COMMITTEE CHAIRMAN WALDECK
CONTACT: Michael Thomas, Director of Public Works (847-810-3540)
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August 3, 2015 City Council Agenda
PURPOSE AND ACTION REQUESTED:
1. Staff requests granting first reading and final approval, if desired by City Council,
for the Ordinance beginning on page 96, proposing a special service area No. 40
for the Regency Lane Sanitary Sewer Improvement Project.
2. Staff is requesting that the City Council authorize Gewalt Hamilton & Associates to
proceed with Phase I and II engineering for an expense not to exceed $18,100.
3. Staff is requesting that the City Council authorize Gewalt Hamilton & Associates to
proceed with the creation of easement documents for an expense not to exceed
$9,200.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
Public Works Committee July 20, 2015 Reviewed
BACKGROUND/DISCUSSION: Over the past several years, City Staff has received
comments from residents in the Regency Lane and Winwood Drive neighborhoods who
have suggested that the installation of sanitary sewers would benefit the neighborhood
and replace outdated septic systems. Since this type of infrastructure improvement
project can be expensive, the City has traditionally utilized a Special Service Area (SSA)
as a funding mechanism to pay for this type of improvement.
Under an SSA, the City defines an area in which all property owners are benefited by the
proposed improvement. Based on the actual cost of the project, a tax rate is established
which, when applied against each property, is sufficient to pay for the public
improvement costs over a period of years.
In March 2015, the City sent letters to approximately 45 properties in these neighborhoods
addressing these concerns, and introducing the opportunity to discuss establishing an
SSA to pursue a sanitary sewer improvement. The City received a response from one
resident in the Regency Lane neighborhood asking for more information about the SSA
process.
City Engineering staff first met with Regency Lane residents on May 11, 2015, to discuss
the process of installing a public sanitary sewer system. There were a few residents who
attended this meeting and expressed interest in moving the process forward to establish
an SSA. A second meeting was held with residents on June 23, 2015, to go over
preliminary engineering plans, SSA costs, and the steps that would need to be taken to
propose an SSA for this project. The engineering plans provided details on the proposed
location of a new sanitary system, and residents were informed that ongoing
maintenance responsibility of the new public infrastructure would be assumed by the City
in perpetuity.
An official petition endorsed by a majority of the neighbors has been submitted to the
City, in accordance with City policy, along with an initiation letter (A copy of which is
provided on page 103) requesting that the City Council establish a Special Service Area
(SSA) to finance the installation of a sanitary sewer system to serve 15 parcels in the
Regency Lane Area.
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August 3, 2015 City Council Agenda
The Regency Lane Sanitary Sewer Improvement Project includes a new 8” sanitary sewer
system (including design and construction costs); legal expenses; prepaid connection
fees; Northshore Water Reclamation District annexation and connection fees; and the
City of Lake Forest building permit fee.
Included below is a tentative scheduling showing the various steps required to complete
the SSA process for the Regency Lane Sanitary Sewer Improvement Project. The
Ordinance proposing the establishment of SSA No. 40 for the project is also attached on
page 96. The attached proposing Ordinance accomplishes the following:
1. Acknowledges property owners’ request of necessary infrastructure upgrades;
2. Calls for a public hearing on August 17, 2015, to start the 60-day objection period
prior to establishment of the SSA; and
3. Establish SSA No. 40 at the Council Meeting on October 19, 2015.
The contract management, including preparation of plan bids and specifications
including the sanitary sewer design, was prepared by contractual engineering staff. The
City’s Engineering staff will also be inspecting this project on an ongoing basis.
BUDGET/FISCAL IMPACT: The preliminary estimate for the residents’ share of the project,
for the installation of a new public sanitary sewer system, is $862,675. The following is a
breakdown of preliminary costs for this project.
Cost Item Est. Fees
Engineering (Phase I-III) $50,100
Construction $750,000
Easement Document Preparation $9,200
Legal Expenses $1,000
Administration Fee $5,000
Prepaid Connection Fee $12,375
NSWRD Annexation & Connection Fee $32,000
Lake Forest Building Permit Fee $3,000
Total Project Estimate $862,675
This is a conservative estimate based on the information regarding the location of the
main utility and scope of the improvement available at the present time.
As recommended by the residents of the proposed SSA area, a special tax pursuant to a
special tax roll will divide taxes equally among developable lots within the SSA territory.
The amount of the taxes to be levied for the initial year of the SSA, and the maximum
amount of taxes to be levied in any year thereafter by the proposed SSA, shall be
$58,900. It should be noted that the residents’ share of the project and their annual tax
levy will be recalculated to reflect the actual total cost of the project once final costs are
received.
Costs associated with the installation and connection of a lateral service line to each
residence, interior plumbing work, and decommissioning of septic tanks shall be the
responsibility of each property owner in the SSA area, and have not been included in the
SSA tax.
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August 3, 2015 City Council Agenda
F.Y. 2016
Funding Source
Account Number
Account
Budget
Amount
Requested
Budgeted?
Y/N
Fund Reserves To be Assigned N/A $27,300 N
City staff is proposing that this project be funded internally from fund balance reserves.
Annual tax levies would be recorded and deposited, and the interest accrued would be
credited to the City for advancing the funds on behalf of the benefiting property owners.
REGENCY LANE SANITARY SEWER IMPROVEMENT PROJECT
TENTATIVE SPECIAL SERVICE AREA (SSA) NO. 40 SCHEDULE
May 11, 2015 1st Informational meeting with Regency Lane residents
June 23, 2015 2nd Informational meeting with Regency Lane residents
July 20, 2015 Majority of Regency Lane residents favor SSA and majority
Voted for a 20-yr amortization period
July 20, 2015 Review by Public Works Committee concerning the
proposition of the SSA
July 31, 2015 Notice to be sent to Newspaper regarding Public Hearing
August 2, 2015 Publication of Public Hearing Notice
August 3, 2015 First and second consideration of an ordinance introducing
proposing the establishment of the SSA
August 7, 2015 Certified mail to be sent to residents regarding Public Hearing
August 17, 2015 Public Hearing held at the City Council Meeting. Start of 60-
day objection period
October 5, 2015 Public Works Committee meeting to review construction bids
October 5, 2015 First consideration of an ordinance establishing the SSA.
October 16, 2015 End of 60-day period in which 51% of electors and 51% of
owners of record of land can prevent establishment of SSA by
notarized petition
October 19, 2015 Second consideration of an ordinance establishing the SSA.
SSA established
October 19, 2015 Recommend award of construction contract to the City
Council
October 26, 2015 Tentative start date of construction
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August 3, 2015 City Council Agenda
COUNCIL ACTION:
1. Grant first reading and final approval for the Ordinance proposing the
Establishment of a Special Service Area for the Installation of a Sanitary Sewer
System along Regency Lane (SSA #40)
2. Authorize Gewalt Hamilton & Associates to proceed with Phase I and II
engineering for an expense not to exceed $50,100
3. Authorize Gewalt Hamilton & Associates to proceed with the creation of easement
documents for an expense not to exceed $9,200
4. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA
ITEMS
5. ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the July 20, 2015 City Council meeting Minutes
A copy of the minutes begins on page 104.
2. Approval of the July 27, 2015 Special City Council Workshop meeting
Minutes
A copy of the minutes begins on page 111.
3. Check Register for Period June 27-July 24, 2015
Fund Invoice Payroll Total
General 543,056 1,118,598 1,661,655
Water & Sewer 85,715 114,977 200,692
Parks & Recreation 158,790 407,190 565,980
Capital Improvements 764,628 0 764,628
Motor Fuel Tax 0 0 0
Cemetery 2,942 17,791 20,733
Senior Resources 4,148 20,165 24,313
Deerpath Golf Course 21,186 489 21,675
Fleet 80,813 38,743 119,556
Debt Funds 0 0 0
Housing Trust 0 0 0
Park & Public Land 45,375 0 45,375
All other Funds 680,777 138,308 819,085
$2,387,430 $1,856,261 $4,243,691
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August 3, 2015 City Council Agenda
4. Revisions to FY16 Annual Vendor Approval
PRESENTED BY: Elizabeth Holleb, Finance Director (847-810-3612)
PURPOSE AND ACTION REQUESTED: Staff requests approval of the vendors listed on page
113 for FY2016, which reflects four additional vendors omitted from the May 4, 2105
approved vendor list.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
City Council 5/4/15 Approval of FY16 Vendors
BACKGROUND/DISCUSSION: On September 19, 2011, the City Council approved Code
amendments revising the method for approving vendors. Consistent with the revised
policy, payments for services provided on an unspecified ongoing basis exceeding
$20,000 annually in aggregate are to be approved by the City Council as part of the
budget process. The attached list provides the vendors approved for FY2012-FY2015 as
well as the recommendations submitted for City Council approval for FY2016.
The City Council will continue to approve any single purchase over $20,000 as established
by the purchasing code.
BUDGET/FISCAL IMPACT: Approval of the attached vendor list does not have an
immediate fiscal impact. The amounts designated for each vendor for FY2016 have
been included in the annual budget.
COUNCIL ACTION: Approval of the attached list of vendors (page 113) for Fiscal Year
2016.
5. Approval of a Pension Funding Policy
STAFF CONTACT: Elizabeth Holleb, Finance Director (847-810-3612)
PURPOSE AND ACTION REQUESTED: Staff requests approval of a Pension Funding Policy
defining the manner in which the City funds the long-term costs of pension benefits.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
Finance Committee 4/20/15 Approved revisions to City’s Fiscal Policy
City Council Workshop 7/27/15 Discussed draft Pension Funding Policy
BACKGROUND/DISCUSSION: At the April 20, 2015, Finance Committee meeting, revisions
to the FY2016 Fiscal Policy were approved, including reference to a Pension Funding
Policy to be presented for City Council approval this summer. In light of new accounting
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August 3, 2015 City Council Agenda
and financial reporting requirements promulgated by the Governmental Accounting
Standards Board (GASB 67/68) and increased scrutiny regarding the funding of municipal
pension benefits, the Pension Funding Taskforce including the International City/County
Management Association (ICMA), National League of Cities (NLC) and Government
Finance Officers Association (GFOA) have made recommendations regarding the
components of a Pension Funding Policy for state and local governments. The attached
Pension Funding Policy incorporates recommendations of the Pension Funding Taskforce
as well as GFOA Best Practices.
On July 27, the City Council considered a draft pension funding policy and favored a
change in actuarial assumptions for police and fire to 90% by 2033. In consultation with
the City’s actuary, it was recommended that 100% funding by 2040 would accomplish
the primary goals of the Council, maintain flexibility on tax levy requirements, but also
allow the City to avoid unintended negative consequences associated with GASB 67/68.
The attached policy therefore makes the change recommended by the actuary to
reflect a 100% funded ratio by 2040.
The auditors will review the City’s financial reporting for adherence to the Pension
Funding Policy and the City’s independent actuary will prepare the City’s annual
actuarial valuation of the police and fire pension funds in accordance with the policy.
BUDGET/FISCAL IMPACT: While the approval of the policy does not have an immediate
budget impact, it will set forth the guidelines to be used for actuarial determinations of
annual funding requirements by the City for the police and fire pension funds.
COUNCIL ACTION: Approval of proposed Pension Funding Policy (page 114).
6. Award of a Thirty Six (36) Month Contract with XO Communications and a
Twelve (12) Month Contract with Call One for Telecommunication Services
STAFF CONTACT: Elizabeth Holleb, Director of Finance/IT (847-810-3612)
PURPOSE AND ACTION REQUESTED: Staff requests approval to enter into an agreement for
a period of thirty six (36) months for two (2) business exchange access lines (SIP Trunks),
local and long distance services and an agreement for a period of twelve (12) months
for one hundred fourteen (114) analog telephone lines (Plain Old Telephone Service
(POTs)).
BACKGROUND/DISCUSSION: Staff has contracted with Wilson Consulting to develop
specifications and proposal review for the new SIP service and renewal of existing POTs
service. Wilson Consulting’s recommendation is included in this packet beginning on
page 117.
SIP Service
The City’s recently approved new telephone and voicemail system (ShoreTel) will utilize
Session Initiated Protocol (SIP) service to connect it to the public telephone network. This
service will provide the City with a more resilient telephone system than the current ISDN
PRI circuits currently used in conjunction with the current telephone system.
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August 3, 2015 City Council Agenda
Additionally, the current contract for the City’s existing PRI and POTs services will expire in
September.
POTs Service
In 2012, The City executed a three-year contract with Call One which is set to expire in
September. Call One was awarded the 2015 Suburban Purchasing Cooperative (SPC)
Telecommunications contract. The SPC, a cooperative of one hundred fifty six (156)
municipalities and townships in Illinois, has subsequently awarded five (5) consecutive
one-year contract extensions for telecommunications services to Call One, which
currently expires March 31, 2016. Every municipality and government agency in the State
of Illinois is authorized to participate in this program.
BUDGET/FISCAL IMPACT:
SIP Service
Between May 26, 2015 and July 21, 2015, Wilson Consulting solicited proposals from SIP
service providers. Staff received the following proposals from 9 vendors for the new
service. Proposals from three (3) vendors were non-responsive. The prices submitted by
the responsive vendors were:
Vendor Monthly Cost
Access One $1,667
XO Communications $2,546
CallOne $2,677
AT&T $2,780
Level 3 $2,927
Century Link $3,075
The lowest cost proposal was submitted by Access One. However, Access One SIP
service has not been certified by ShoreTel, the City’s new telephone system
manufacturer. As a result, ShoreTel would not provide assistance with problems related
to the SIP service both during the implementation and subsequent to the installation.
It is recommended that the City enter into a thirty six (36) month agreement with XO
Communications for the new SIP service. Its proposal met all the specified requirements.
Additionally, ATI (City’s new telephone system dealer) will assume all ordering,
provisioning and subsequent maintenance support for the XO Communications service
creating administrative efficiencies for City staff. A check of XO’s reference with similarly
proposed service has been acceptable.
An added feature to the contract with XO is single source billing, optimizing the accounts
receivable, trending and budgetary review processes for telecommunications services.
POTs Service
Between July 1, 2015 and July 21, 2015, Wilson Consulting solicited two proposals for POTs
analog telephone lines. Staff also received information from Wilson Consulting regarding
AT&T’s CompleteLink contract pricing. The following is a cost summary of each option.
Telephone Company Estimated Annual Charges
Call One $38,304
AT&T $47,880
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August 3, 2015 City Council Agenda
Access One $69,090
It is recommended that the City enter into a twelve (12) month renewal agreement with
Call One for the existing POTs service pursuant to its SPC telecommunications contract.
Its proposal met all the specified requirements and was the lowest cost.
Below is an estimated summary of the telecommunications budget:
FY2016
Funding
Source
Account Number*
Account
Budget
Amount
Requested
Budgeted?
Y/N
General Fund
Non-Dept.
101-2501-499.53-10 $56,000 $36,000 Y
Parks & Rec.
Administration
220-8065-451.53-10 $28,000 $18,000 Y
Water & Sewer
Non-Dept.
501-2501-499.53-10 $21,000 $15,000 Y
* Telecommunications costs are also allocated to other cost centers in minor amounts.
COUNCIL ACTION: If desired and appropriate by the City Council, approve a thirty six (36)
month contract with XO Communications for SIP local and long distance service at an
annual estimated expense of $30,552, approve a twelve (12) month contract with Call
One for telecommunications analog telephone service in an annual estimated amount of
$38,304 based on the Suburban Purchasing Cooperative Telecommunications contract,
and seek City Council approval of said contracts.
7. Award of Contract for Thermoplastic Lane Marking
STAFF CONTACT: DAN MARTIN, SUPERINTENDENT OF PUBLIC WORKS (810-3561)
PURPOSE AND ACTON REQUESTED: Staff requests approval to award the contract for
thermoplastic lane marking to Superior Road Striping.
BACKGROUND/DISCUSSION: The City of Lake Forest, as a member of the Northwest
Municipal Conference (NWMC), also belongs to the Suburban Purchasing Cooperative
(SPC). The SPC is made up of 134 communities in the Northwest Municipal Conference,
the South Suburban Mayors and Managers Association, the DuPage Mayors Conference,
and the Will County Government League.
One of SPC’s annual joint purchasing initiatives is the thermoplastic lane marking bid for
member agencies. The City has been participating in the thermoplastic lane marking for
the last 14 years. SPC’s lane marking specifications meet Illinois Department of
Transportation (IDOT) standards. Bids and selection of the lowest responsible and
responsive bidder are approved by IDOT.
The 2012 SPC/IDOT lane marking contract was awarded to Superior Road Striping, Inc. of
Melrose Park, Illinois. In February 2015, the Suburban Purchasing Cooperative’s Governing
Board approved the third of three possible one-year extensions of the SPC Lane Marking
Contract #123 to Superior Road Striping from April 12, 2015 through April 11, 2016, with no
price increase. The table below shows the unit price cost of the contract that city council
approved in 2014 which will stay the same in 2015 as there are no increases to the
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August 3, 2015 City Council Agenda
contract. With the contract extension, Superior Road Striping agrees to all terms and
conditions as set forth in the specifications contained within the original contract and
Superior Road Striping must comply with all IDOT rules and regulations.
DESCRIPTION UOM
2014
UNIT $
2015
NO INCREASE UNIT $
4” Line LF $0.54 $0.54
6” Line LF $0.81 $0.81
12” Line LF $1.63 $1.63
24” Line LF $4.09 $4.09
Letters & Symbols SF $4.09 $4.09
Removal SF $0.75 $0.75
BUDGET/FISCAL IMPACT: The City of Lake Forest’s lane marking needs are split into four
zones. The third of four zones was completed in 2014.
This year, the City is requesting 135,000 linear feet of thermoplastic pavement marking to
include 4”, 6”, 12”, and 24” wide lines, as well as various letters and symbols, which will
cover the fourth of the four zones. The total cost for the Lake Forest’s 2015 striping and
marking will be $74,000. This is less than the $75,000 included in the FY2016 Capital
Improvement Budget for this work.
FY2016 Funding Source Amount
Budgeted
Amount
Requested
Budgeted?
Y/N
Capital: 311-0050-431.67-22 $75,000 $74,000 Y
COUNCIL ACTION: Staff requests that City Council approve the thermoplastic lane
marking contract to Superior Road Striping, Inc. in the amount of $74,000.
8. Consideration of Ratification of a Professional Services Contract for
Surveying of the McCormick Nature Preserve.
STAFF CONTACT: Catherine Czerniak, Director of Community Development (810-3540)
PURPOSE AND ACTION REQUESTED: To facilitate the transfer of land between the City and
Lake Forest Open Lands Association which was previously endorsed by the City Council,
ratification of a contract with Bleck Engineering for professional services is requested.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
Property and Public
Lands Committee
April 6, 2015
Endorsed Concept of the
Land Transfer
City Council April 6, 2015 Community Spotlight – Lake
Forest Open Lands
Presentation: City Council
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August 3, 2015 City Council Agenda
Endorsed the Concept of the
Land Transfer
Property and Public
Lands Committee
June 15, 2015 Update on Preparation of
Land Transfer Documents:
Endorsement of Proceeding
with Land Transfer
BACKGROUND/DISCUSSION: The City requires surveying services in connection with the
planned land transfer of McCormick Nature Preserve to Lake Forest Open Lands. The
transfer will facilitate the restoration and preservation of the McCormick Ravine. Survey
work is underway on the parcels in Lake Forest Open Lands which are part of the
planned transfer.
Consistent with State law, the City must select surveyors based on qualifications. The City
has a longstanding and satisfactory professional relationship with Bleck Engineering.
Accordingly, the City has obtained a proposal from Bleck to undertake the needed
surveying work. A copy of the Professional Services Agreement is included in the
Council’s packet beginning on page 119. Due to the time sensitive nature of this work in
light of the Army Corps of Engineers’ timeline and requirements as the lead for the
restoration work, the survey has already been authorized.
The City also contacted Gewalt-Hamilton, the City’s consulting engineer, about
performing the required survey work however, due to the complexity of the survey work
required, the timeline for the planned land transfer and its other obligations, Gewalt-
Hamilton was not able to provide the City with a proposal for this work at this time.
BUDGET/FISCAL IMPACT:
F.Y. 2016
Funding Source
Account Number
Account
Budget
Amount
Requested
Budgeted?
Y/N
Land Sale
/Acquisition Fund
311-0050-413-3511 $70,000 $25,000 Y
The Land Sale/Acquisition Fund is intended for expenses related to the disposition of City
owned property.
COUNCIL ACTION: Approve a motion ratifying the City Manager’s approval of a
professional services contract with Bleck Engineering for services related to preparing a
survey of the McCormick Nature Preserve for an amount not to exceed $25,000.
9. Consideration of Ordinances Approving Recommendations from the
Building Review Board. (First Reading and if Desired by the City Council,
Final Approval)
STAFF CONTACT: Catherine Czerniak,
Director of Community Development (810-3504)
The following recommendations from the Building Review Board are presented to the City
Council for consideration as part of the Omnibus Agenda.
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August 3, 2015 City Council Agenda
395 Spruce Avenue - The Building Review Board recommended approval of a 2-story addition
to the rear of the residence and approval of the associated building scale variance. No public
testimony was presented to the Board on this petition. (Board vote: 7-0, approved)
366 Bluffs Edge Drive - The Building Review Board recommended approval of the demolition of
the existing residence and approval of the replacement residence, attached garage and the
overall landscape plan. The Board heard testimony from one member of the public offering
some input on the design of the front entry. (Board vote: 7-0, approved)
The Ordinances approving the petitions as recommended by the Building Review Board, with
key exhibits attached, are included in the Council packet beginning on page 123. The
Ordinances, complete with all exhibits, are available for review in the Community
Development Department.
COUNCIL ACTION: If determined to be appropriate by the City Council, waive first
reading and grant final approval of the Ordinances approving the petitions in
accordance with the Building Review Board’s recommendation.
10. Consideration of an Ordinance Approving a Recommendation from the
Historic Preservation Commission. (First Reading and if Desired by the City
Council, Final Approval)
STAFF CONTACT: Catherine Czerniak,
Director of Community Development (810-3504)
The following recommendation from the Historic Preservation Commission is presented to the
City Council for consideration as part of the Omnibus Agenda.
450 Illinois Road - The Historic Preservation Commission recommended approval of a rear
addition to an existing residence and the associated building scale and height variances. A
height variance is requested to allow the addition to conform to the height of the existing
historic residence which was constructed prior to current regulations. No public testimony was
presented to the Commission. (Commission vote: 4-0, approved)
The ordinance approving the petition with conditions of approval as recommended by the
Historic Preservation Commission, with key exhibits attached, is included in the Council’s packet
beginning on page 145. The Ordinance and complete exhibits is available for review in the
Community Development Department.
COUNCIL ACTION: If determined to be appropriate by the City Council, waive first
reading and grant final approval of the Ordinance approving the petition in accordance
with the Historic Preservation Commission’s recommendation.
COUNCIL ACTION: Approve the ten (10) Omnibus items as presented.
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August 3, 2015 City Council Agenda
6. ORDINANCES
7. ORDINANCES AFFECTING CODE AMENDMENTS
Opening Comments by City Manager, Robert Kiely, Jr.
In 2013 the City entered into an agreement with American Legal Publishing to review,
edit and compile current Ordinances. A draft copy of the Code and a list of questions
were returned to the City in early March 2014. At that time Staff had an opportunity to
review sections. As a result, Staff made two types of recommended changes, minor and
substantive. Minor changes were submitted when the Code was approved by Council in
January, 2015. Staff is now bringing recommended substantive changes that reflect the
actions of the City.
1. Consideration of an Ordinance Amending Sections 51.075, 51.077, 39.156,
39.159, 39.160 and 39.164 of the City Code as Recommended by the
Finance Committee. (First Reading)
PRESENTED BY: Elizabeth Holleb, Finance Director (847-810-3612)
PURPOSE AND ACTION REQUESTED: Staff requests City Council grant first reading of an
amendment to the City Code pertaining to real estate transfer taxes, water shutoff valve (b-
box) inspections and water leaks. The proposed Ordinance would amend City Code to reflect
current practices, allow for a mechanism to ensure location and accessibility of water shutoff
valves (b-box) prior to transfer of title to property, and amend provisions to address water leaks
on private property.
On January 20, 2015, City Council granted final approval of an Ordinance adopting an
updated City Code. As a follow up, City Staff and the City Attorney have begun to
review certain provisions of the Code to determine whether changes are required to
reflect changes in practices or policies of the City.
As part of that review, the City Manager, Executive Staff, the Finance Committee and
the City Attorney have reviewed the City Code provisions relating to real estate transfer
taxes, water shutoff valve inspections and water leaks, and proposed amendments to
the City Code relating to these items as included in the Council packet beginning on
page 155.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
Staff Review Various 2014-2015 Staff in Public Works, Community
Development and Finance
Finance Committee July 20, 2015 Recommend approval
BACKGROUND:
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August 3, 2015 City Council Agenda
The City Code currently prohibits all water customers from affecting the operation or
function of a water shutoff valve. An article is planned in a future issue of the Dialogue to
make residents aware of the water shutoff valves on each property, to explain the
importance of making sure the valves are accessible and to alert them to the applicable
Code requirements.
In 2014, the City initiated an inventory of all water shutoff valves in the City, and the
inventory is scheduled to be completed later this fall. A list of all properties for which the
water shutoff valve cannot be located will be compiled. Letters will be sent to impacted
property owners to encourage them to locate the shutoff valve and to contact City staff
to update City records in order to avoid a delay in the future issuance of building permits
or issuance of a real estate transfer tax.
The proposed Ordinance will allow the City to delay the issuance of permits or real estate
transfer tax stamps in the event a water shutoff valve cannot be located on a property or
is inaccessible. At such time, the property owner would be required to remedy the
situation in accordance with long standing Code requirements.
It should be noted that on occasion, the City determines that a property owner’s water
shutoff valve is nonfunctional. While not part of the inventory or inspection process, the
proposed Ordinance would also allow for delay in the issuance of permits or real estate
transfer stamps in the event a water shutoff valve requires repair. In these cases, letters
will also be sent to notify the property owner.
BUDGET/FISCAL IMPACT: No budget impact is anticipated. Community Development
staff will make water shutoff valve inspections as a part of the sanitary sewer inspection.
Staff will track additional time spent on home inspections and make a recommendation
to City Council if a fee adjustment for inspections is determined to be warranted.
COUNCIL ACTION: Approve first reading of the proposed Ordinance recommending
changes to City Code relating to real estate transfer taxes, water shutoff valve (b-box)
inspections and water leaks.
8. NEW BUSINESS
9. ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
10. ADJOURNMENT
Office of the City Manager July 29, 2015
The City of Lake Forest is subject to the requirements of the Americans with Disabilities
Act of 1990. Individuals with disabilities who plan to attend this meeting and who require
certain accommodations in order to allow them to observe and/or participate in this
meeting, or who have questions regarding the accessibility of the meeting or the
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August 3, 2015 City Council Agenda
facilities, are required to contact City Manager Robert R. Kiely, Jr., at (847) 234-2600
promptly to allow the City to make reasonable accommodations for those persons.
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THE CITY OF LAKE FOREST
Office of the Chief of Police
THE CITY OF LAKE FOREST TOWING POLICY
1.0 Purpose
The purpose of this Policy is to establish the minimum standards for towing companies
which are engaged in or intend to engage in towing, removing, and storing motor vehicles at the
request of the Lake Forest Police Department.
It is of vital importance that, when necessary, vehicles are towed as promptly as possible
because a delay in removal can impede the movement of traffic and can cause further
accidents. Additionally, the solicitation of tows at accident scenes can lead to unnecessary
traffic congestion and unsafe conditions, and that the towing of vehicles is a matter affecting
public safety. Consequently, vehicle tows should be subject to City supervision and
administrative control for the purpose of safeguarding the public.
It is further declared that in order to protect the public, to protect the rights of persons
whose cars may be towed, and to preserve the peace and safety of the community, any entity
desiring to tow vehicles at the request of the Lake Forest Police Department shall be required to
acknowledge, accept, and abide by the terms and conditions as hereinafter provided.
Subject to the approval of the Lake Forest Chief of Police, any entity desiring to perform
towing services at the request of the Lake Forest Police Department, and that satisfies the
requirements of all other provisions of this Policy, shall be eligible to be placed on a the City’s
Tow List and be called upon accordingly.
2.0 Towing Procedures and Standards
a) Qualifications. Minimum requirements for owners of tow companies and their drivers:
1. Tow Companies requesting to be on the City’s list of approved towing companies
(the “Tow List”) must complete an Acknowledgement and Acceptance of Terms
and Conditions of Lake Forest Towing Policy and deliver it to the Lake Forest
Police Department, 255 West Deerpath Rd., Lake Forest, IL, 60045 during
regular business hours.
2. Upon request, owners of tow companies shall provide the Lake Forest Police
Department their names, driver’s license numbers, business addresses, and
business telephone numbers as well as their drivers’ names and their respective
driver’s license numbers.
3. Shall own, lease, or otherwise have sufficient rights to access and use a storage
lot for Lake Forest Police tows within a reasonable driving distance of the Lake
Forest Police Department located at 255 West Deerpath Rd., Lake Forest, IL,
60045 (typically under three miles, but under no circumstances further than
seven miles). The tow company must maintain insurance on said storage facility
that is sufficient to cover its liabilities related thereto.
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4. The main entrance to the tow storage lot shall be clearly and prominently posted
with a sign displaying name of the tow company, the phone number of the tow
company, and instructions about how a vehicle can be claimed, including fees,
hours of operation, a direct access after-hours telephone number, and the words
“For Questions or Concerns, Contact the Lake Forest Police Department at 847-
234-2601.”
5. Shall have an attendant available at the tow facility/storage lot to which the
vehicle is towed Monday through Friday, 7am to 5pm.
6. Shall have an attendant on‐call for release of vehicles Monday through Friday,
5pm to 11pm.
7. Shall have an attendant on‐call 7am to 5pm for releasing vehicle Saturdays,
Sundays, and holidays.
b) Disqualifying Conditions. Tow companies will be disqualified from the Tow List if they
cannot satisfy the following terms and conditions:
1. No tow company owner or driver may be a convicted of a felony within last five
years.
2. No tow company owner or driver may be listed as a sex offender as defined by
the Illinois Sex Offender Registration Act (730 ILCS 150/1 et seq.) or other
similar statute.
3. No tow company owner or driver may be convicted by the State of Illinois or any
other state for theft of motor vehicle and/or motor vehicle parts.
4. No tow company owner may be indebted to The City of Lake Forest for past
fines.
c) Operational Standards—Vehicles and Equipment. Each tow truck used by a towing
company shall:
1. Display the full legal name of company (or a properly certified assumed name
pursuant to the Assumed Business Name Act, 805 ILCS 405), on each side. The
lettering cannot be smaller than two inches and shall be in contrast of
background color; the display shall include full address and telephone number of
company and the display shall be permanently affixed.
2. Have proper warning lights as defined in the Illinois Vehicle Code.
3. Have one or more brooms and shovels.
4. Have one or more trash cans at least five gallons in capacity.
5. Carry a fire extinguisher that is in good working order (dry chemical or C02 style).
6. Have oil dry (or an equivalent style absorbent product) to absorb oils and fluids.
7. Have general liability insurance of $500,000.00 and carry proof of such insurance
inside the vehicle.
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8. Have proper registration on flat bed tow vehicles that include the weight of the
tow vehicle and the carried vehicle.
d) Operational Standards for Tows. While at a police requested tow scene, each tow truck
driver and tow company shall:
1. Have and use apparel that clearly defines the company’s name and be reflective.
2. Be professional and courteous to citizens and City employees.
3. Obey all lawful orders of Lake Forest Police officers and abide by all applicable
towing laws.
4. Provide the driver and/or owner of towed vehicle documents that list the tow
company’s name, contact information, tow truck driver’s name, and related fee
amounts as defined in the fee schedule established by the Lake Forest Police
Department.
5. Remove all glass and debris by the vehicle being serviced and spread oil dry
upon any portion of the roadway where any fluids have been deposited.
6. Take reasonable steps to secure the items from the vehicle at their facility if the
vehicle’s owner and/or driver cannot take their personal property from the
vehicle.
e) Responsiveness and General Performance. Each tow company:
1. Shall be available for callouts 24 hours a day, 7 days a week.
2. Shall issue legible receipts to customers with a detailed and articulated
description of services and fees. Legible and itemized tow bills shall be promptly
faxed or emailed to the Chief of Police upon request.
3. Shall make printed fee schedules available upon demand to any person receiving
services. Additionally, a copy of the printed fee schedule shall be posted in plain
view to the public in a conspicuous place at the tow company’s place of business
and shall be provided to Lake Forest Police Department.
4. Shall be on‐call 24 hours a day, 7 days a week for any emergency releases of
vehicles.
5. Shall, upon request, respond to scene in 15 minutes or less (for larger vehicles
requiring specialized equipment, vehicle tows in no more than 60 minutes). If a
towing company fails to respond in their allotted time, the next towing company
on the Tow List may be called and the tardy towing company will forfeit its turn on
the tow rotation.
6. Shall follow all Illinois towing laws.
7. Shall maintain a 90% response rate for police requested tow service.
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8. Shall, upon discovery that a towed vehicle does not have valid auto insurance,
hold the vehicle at the tow company until the owner or designated driver
produces proof of insurance that is for the vehicle.
9. Shall not respond to or “appear” at a crash scene unless called by the Lake
Forest Police Department; however, tow truck drivers may check on the
well‐being of persons involved in a crash if they happen to drive upon a crash
scene. Tow truck drivers shall not use this as an opportunity to solicit business.
10. Shall refrain from calling dispatch or the department to determine if they are next
on the Tow List, or to claim that they are next on the Tow List.
11. May “outsource” their tow rotation directly with another tow company on the Tow
List; however, by doing so, the outsourcing tow company will lose their turn in the
tow rotation.
12. When the Lake Forest Police Department places a “hold” on a towed vehicle, the
vehicle shall not be released, serviced, inspected, repaired, contracted for
service or repair, or have personal property on or within the vehicle removed
from it without a release from the Lake Forest Police Department. Any vehicle
impounded or seized for evidentiary purposes shall be deemed to have a “hold”
on it.
3.0 Requests for Particular Towing Companies
a) When the driver or owner of a vehicle requiring a tow has no preference for a towing
company, the towing company eligible for the current tow is to be called. If there is more than
one vehicle to be towed, the tow company eligible for the current tow will be contacted to see
how many vehicles they can tow at one time without having to make a second trip for another
vehicle. If they cannot take all vehicles at once, then the next tow company on the list will be
contacted as well.
b) If the driver or owner requests a particular tow company, that tow company is to be
called. However, if the requested tow company cannot respond in an appropriate amount of
time (typically 15 minutes) and the vehicle is a hazard in traffic, the next tow company on the
Tow List may be called. Consistent with this Section 3(b), if the vehicle being towed is owned
by the City or if the City will be paying the tow company directly for the tow service in question,
then the Tow List shall not be applicable, and the tow company shall be selected from the City’s
approved vendor list in accordance with the City’s procurement policies.
4.0 Arrests and Abandoned Autos
The Tow List will not be used for arrests and abandoned vehicle tows conducted by the
Lake Forest Police Department. These types of tows shall be performed by a tow company
selected from the City’s approved vendor list in accordance with the City’s procurement policies
and the requirements of this Section 4.0. The tow company called to tow a vehicle pursuant to
an arrest shall hold the towed vehicle in a secure area and make the towed or impounded
vehicle available to authorized members of the Lake Forest Police Department as needed. For
purposes of this Section 4.0, “secure area” is one which is entirely enclosed by a fence or other
structure of sufficient size and quality as to prevent any person from accessing that area without
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permission. If any vehicle is left unclaimed for three or more days, the Chief of Police or
designee is to be notified and appropriate notification will be made to the registered owner in
accordance with Illinois law. Vehicles left unclaimed will only be disposed of by order of the
Lake Forest Police Department Chief of Police in accordance with Illinois law and policies of the
Lake Forest Police Department.
5.0 Rotation on the Tow List
It is the general intention of this Policy to establish a protocol whereby the Lake Forest
Police Department will maintain a list of authorized tow service providers to be used in providing
rotation tow services for the City. The customary utilization of the Tow List under this Policy is
as follows:
a) When a tow is needed, the police officer will communicate the need for a tow to the
police dispatcher on duty. On receiving this communication, the dispatcher shall call the current
authorized tow service provider on the rotation tow list to remove the vehicle. On each
succeeding communication, the next tow company on the list is assigned. In the event an
authorized tow service provider cannot be reached by the dispatcher or cannot provide the
requested tow pursuant to the terms of this Policy, that tow service provider shall forfeit its turn
and the dispatcher shall call the next succeeding tow company on the Tow List. The dispatcher
shall keep a continuous rotation of each authorized provider on the Tow List.
b) Placement on the Tow List shall be by alphabetical order. In the event a new tow
company becomes authorized, it shall be placed on the list in alphabetical order, regardless of
its resulting place in the rotation.
c) The Lake Forest Police Department shall not be obligated to use the Tow List for special
events. Instead, the City may enter into an agreement with one or more authorized tow service
providers for the rights to tow vehicles, as needed at the request of the City, during those
special events. For purposes of this section, special events shall include, but not be limited to,
festivals, sobriety checkpoints, or any other similar type event that is outside the regular duties
of the Lake Forest Police Department.
d) Nothing in this Policy, or the designation as an authorized tow service provider on the
Tow List, shall confer any contractual or vested property rights upon the tow company to be on
the City's Tow List.
6.0 Protection of Public Health and Safety and Police Investigations
Though the Lake Forest Police Department will make every effort to follow the order
provided in the Tow List, it reserves the right to disregard the Tow List during emergencies, or
when, in the sole and absolute discretion of the Lake Forest Police Department, doing so
protects the health or safety of the public. Recognizing that circumstances which delay towing a
vehicle endangers the public by increasing the likelihood of further traffic accidents, the Lake
Forest Police Department may disregard the Tow List when, by doing so, such delays may be
reduced or eliminated. These circumstances include, but are not limited, to when (a) given the
condition or location of the vehicle, specialized equipment is required to perform a tow, and (b)
the vehicle being towed is a second division vehicle with a gross weight of 28,000 pounds or
more.
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Additionally, the Lake Forest Police Department may disregard the Tow List for investigative
purposes, including when (a) the driver of the vehicle being towed is placed under arrest, (b) the
vehicle being towed or its contents may be used as evidence in a court proceeding, (c) the
vehicle being towed is being seized by the Lake Forest Police Department, and (d) when the
Lake Forest Police Department has reason to believe that the vehicle may be abandoned.
7.0 Removal From The Tow List and Nondiscrimination Policy
More than one similar infraction of the standards, terms, and requirements in this Policy
within a twenty-four month period by any towing company shall be sufficient grounds for the
Chief of Police to temporarily or permanently remove that towing company from the Tow List.
The standards, terms, and requirements listed in Section 2.0 represent only the minimum
qualifications necessary to be eligible to be on the Tow List and a towing company’s placement
on the Tow List is ultimately within the discretion of the City. The City does not discriminate in
the placement of towing companies on the Tow List, or the removal therefrom, on the basis of
race, color, religion, creed, sex, sexual orientation, gender identity, national origin, ancestry,
age, veteran status, disability unrelated to job requirements, genetic information, membership in
a union, military service, or other protected status.
Additionally, a towing company may request to be removed from the Tow List at any
time and shall be so removed as soon as is practicable.
8.0 Public Availability
This Policy and the Tow List shall be made available on the City’s website. Copies of
the Policy and Tow List shall be provided upon request.
9.0 Fee Schedule
• Accident Tow ‐ $185
• Roll‐over Fee ‐ $100 (Winching fee will not be added if vehicle was simply rolled over
upright)
• Winching Fee ‐ $60
• Clean Up Fee ‐ $35
• Labor Fee ‐ $35 (labor fee will only be applied if labor involved goes beyond a regular
call for service)
• Oil Dry Application (at crash scenes only) ‐ $35
• Arrest Tow ‐ $145
• Disabled Vehicle ‐ $125
• Jump Start ‐ $75
• Tire Change ‐ $95
• Lock Out ‐ $75
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• Gas Delivery ‐ $75 (plus fee of gas delivered)
• After Hours Services‐ 6pm to 7am‐ add $35 (only if called between these hours)
• Storage Fee ‐ storage fee is $0 if vehicle is picked up within 24 hours of the time the
vehicle was towed from the scene. After the first 24 hours, a storage fee may be
assessed but the fee shall not exceed $55 for every 24 hours thereafter.
• If the towing company is called to perform a tow in Lake Bluff, Lake Forest, Highwood or
Highland Park, there will be no mileage charge. For tows outside of those areas, a
charge of $3.00 per mile will be applied for each mile travelled outside those areas.
• An itemized tow receipt shall be faxed to Sergeant Martin A. Blitstein at (847) 615-4382
no later than the next business day following the tow of the vehicle. Failure to fax the
receipt could result in removal from the Tow List. Over charging, or other violations of
this Policy, may result in removal from the Tow List.
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Bond Ordinance_draft 071015
2229953
EXTRACT OF MINUTES of a regular public meeting of the City
Council of the City of Lake Forest, Lake County, Illinois, held at
City Hall, 220 East Deerpath, in the City, at 6:30 o’clock P.M. on
the 3rd day of August, 2015.
The Mayor called the meeting to order and directed the City Clerk to call the roll. Upon
the roll being called, Donald P. Schoenheider, the Mayor, and the following Aldermen were
physically present at said location: __________________________________________________
______________________________________________________________________________
______________________________________________________________________________
The following Aldermen were allowed by a majority of the Aldermen in accordance with
and to the extent allowed by rules adopted by the City Council to attend the meeting by video or
audio conference: _______________________________________________________________
______________________________________________________________________________
No Alderman was not permitted to attend the meeting by video or audio conference.
The following Aldermen were absent and did not participate in the meeting in any
manner or to any extent whatsoever: ________________________________________________
______________________________________________________________________________
The Mayor announced that a proposal had been received from ________, ___________,
__________, for the purchase of $10,000,000 general obligation bonds to be issued by the City
pursuant to its home rule powers for the purpose of financing certain capital improvements
within the City, and that the City Council would consider the adoption of an ordinance providing
for the issue of said bonds and the levy of a direct annual tax sufficient to pay the principal and
interest thereon. The Mayor also summarized the pertinent terms of said proposal and said
bonds, including the length of maturity, rates of interest, purchase price and tax levy for said
bonds.
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WHEREUPON, Alderman _________________________ presented, and the City Clerk
made available to the Aldermen and interested members of the public, complete copies of an
ordinance entitled:
AN ORDINANCE providing for the issuance of $10,000,000 General
Obligation Bonds, Series 2015, of the City of Lake Forest, Lake
County, Illinois, for the purpose of financing certain capital
improvements within the City, providing for the levy and
collection of a direct annual tax sufficient to pay the principal and
interest on said bonds, and authorizing the sale of said bonds to
_________.
(the “Bond Ordinance”).
Alderman ______________________________ then moved and Alderman
______________________________ seconded the motion that the Bond Ordinance as presented
be adopted.
After a full discussion thereof, the Mayor directed that the roll be called for a vote upon
the motion to adopt the Bond Ordinance.
Upon the roll being called, the following Aldermen voted AYE: ____________________
______________________________________________________________________________
______________________________________________________________________________
and the following Aldermen voted NAY: _____________________________________________
WHEREUPON, the Mayor declared the motion carried and the Bond Ordinance adopted,
and henceforth did approve and sign the same in open meeting, and did direct the City Clerk to
record the same in full in the records of the City Council of the City of Lake Forest, Lake
County, Illinois.
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Other business was duly transacted at said meeting.
Upon motion duly made and carried, the meeting adjourned.
_______________________________________
City Clerk
38
ORDINANCE NO. 2015-____
AN ORDINANCE providing for the issuance of $10,000,000 General
Obligation Bonds, Series 2015, of the City of Lake Forest, Lake
County, Illinois, for the purpose of financing certain capital
improvements within the City, providing for the levy and
collection of a direct annual tax sufficient to pay the principal and
interest on said bonds, and authorizing the sale of said bonds to
_________.
WHEREAS, the City of Lake Forest, Lake County, Illinois (the “City”), has elected
pursuant to the provisions of the 1970 Constitution of the State of Illinois and particularly
Article VII, Section 6(a) thereof, to become a home rule unit and as such may exercise any
power or perform any function pertaining to its government and affairs, including, but not
limited to, the power to tax and to incur debt; and
WHEREAS, pursuant to the provisions of said Section 6, the City has the power to incur
debt payable from ad valorem property tax receipts or from any other lawful source and maturing
within 40 years from the time it is incurred without prior referendum approval; and
WHEREAS, the City Council of the City (the “Council”) has considered the needs of the
City and has determined and does hereby determine that it is necessary, desirable and in the best
interests of the City to borrow at this time the sum of $10,000,000 to finance capital municipal
improvements, including, but not limited to, infrastructure improvements in the City’s Laurel
Avenue Tax Increment Financing District (the “Laurel Avenue TIF”), and paying expenses
incidental thereto (the “Project”); and
WHEREAS, it is in the best interest of the City to issue bonds of the City (the “Bonds”) in
the aggregate principal amount of $10,000,000 to evidence said borrowing and for the purpose of
paying costs of the Project; and
WHEREAS, the Bonds shall be payable from a direct annual ad valorem tax levied against
all taxable property in the City, without limitation as to rate or amount; and
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WHEREAS, pursuant to Ordinance No. 2013-070, adopted by the Council on the 2nd day
of December, 2013 (“Ordinance No. 2013-070”), notwithstanding the City’s home rule status,
the City has adopted a limit on the amount of property taxes it may levy on an annual basis to
provide for debt service payments on its outstanding general obligation bonds to an amount not
exceeding its 2004 debt service property tax levy (as adjusted for Consumer Price Index
increases) plus levies for capital improvements (the “City Debt Limit”); and
WHEREAS, the City has not levied any separate property taxes for capital improvements,
but has two outstanding series of general obligation bonds that are expected to be repaid from
sources other than general property taxes, namely, the City’s General Obligation Refunding
Bonds, Series 2011A, and General Obligation Refunding Bonds, Series 2011B (collectively, the
“Series 2011 Bonds”); and
WHEREAS, a portion of the Bonds are expected to be repaid from property tax increment
from the Laurel Avenue TIF (the “TIF Portion of the Bonds”, and together with the Series 2011
Bonds, the “Self-Supporting Bonds”); and
WHEREAS, the Council does hereby find and determine that issuance of the Bonds, taking
into account the debt service necessary to pay the Self-Supporting Bonds are expected to be paid
from sources other than general property taxes, meets the restrictions of the City Debt Limit; and
WHEREAS, the County Clerk of The County of Lake, Illinois (the “County Clerk”), is
therefore authorized to extend and collect direct annual ad valorem taxes so levied for the
payment of the Bonds without limitation as to rate or amount;
NOW THEREFORE BE IT ORDAINED by the City Council of the City of Lake Forest, Lake
County, Illinois, in the exercise of its home rule powers, as follows:
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Section 1. Incorporation of Preambles. The Council hereby finds that all of the
recitals contained in the preambles to this Ordinance are true, correct and complete and does
incorporate them into this Ordinance by this reference.
Section 2. Authorization. It is hereby found and determined that pursuant to the
provisions of the Illinois Municipal Code, as supplemented and amended, and the home rule
powers of the City under Section 6 of Article VII of the Illinois Constitution of 1970 (in the
event of conflict between the provisions of said code and home rule powers, the home rule
powers shall be deemed to supersede the provisions of said code) (the “Act”), the Council has
been authorized by law to borrow the sum of $10,000,000 upon the credit of the City and as
evidence of such indebtedness to issue bonds of the City in said amount, the proceeds of said
bonds to be used for the Project, and that it is necessary to borrow $10,000,000 of said
authorized sum and issue the Bonds in evidence thereof, and these findings and determinations,
together with those set forth in the preambles to this Ordinance, shall be deemed conclusive.
Section 3. Bond Details. There be borrowed by for and on behalf of the City the sum
of $10,000,000 for the purpose aforesaid, and that bonds of the City shall be issued in said
amount and shall be designated “General Obligation Bonds, Series 2015”. The Bonds shall be
dated August 20, 2015, and shall also bear the date of authentication, shall be in fully registered
form, shall be in denominations of $5,000 each or authorized integral multiples thereof (but no
single Bond shall represent installments of principal maturing on more than one date), and shall
be numbered 1 and upward. The Bonds shall become due and payable serially (subject to prior
redemption as hereinafter set forth) on December 15 of each of the years, in the amounts and
bearing interest per annum as follows:
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YEAR OF
MATURITY
PRINCIPAL
AMOUNT
RATE OF
INTEREST
2017 $ %
2018 %
2019 %
2020 %
2021 %
2022 %
2023 %
2024 %
2025 %
2026 %
2027 %
2028 %
2029 %
2030 %
2031 %
2032 %
2033 %
2034 %
2035 %
The Bonds shall bear interest from their date or from the most recent interest payment
date to which interest has been paid or duly provided for, until the principal amount of the Bonds
is paid, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being
payable on June 15 and December 15 of each year, commencing on June 15, 2016.
Interest on each Bond shall be paid by check or draft of Wells Fargo Bank, National
Association, Chicago, Illinois, as bond registrar and paying agent (the “Bond Registrar”),
payable upon presentation thereof in lawful money of the United States of America, to the person
in whose name such Bond is registered at the close of business on the 1st day of the month of the
interest payment date. The principal of the Bonds shall be payable in lawful money of the
United States of America upon presentation thereof at the principal corporate trust office of the
Bond Registrar.
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Section 4. Execution; Authentication. The Bonds shall be executed on behalf of the
City by the manual or facsimile signature of its Mayor and attested by the manual or facsimile
signature of its City Clerk, as they shall determine, and shall have impressed or imprinted
thereon the corporate seal or facsimile thereof of the City. In case any such officer whose
signature shall appear on any Bond shall cease to be such officer before the delivery of such
Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as if
such officer had remained in office until delivery. All Bonds shall have thereon a certificate of
authentication, substantially in the form hereinafter set forth, duly executed by the Bond
Registrar as authenticating agent of the City and showing the date of authentication. No Bond
shall be valid or obligatory for any purpose or be entitled to any security or benefit under this
Ordinance unless and until such certificate of authentication shall have been duly executed by the
Bond Registrar by manual signature, and such certificate of authentication upon any such Bond
shall be conclusive evidence that such Bond has been authenticated and delivered under this
Ordinance.
Section 5. Registration of Bonds; Persons Treated as Owners. (a) General. The City
shall cause books (the “Bond Register”) for the registration and for the transfer of the Bonds as
provided in this Ordinance to be kept at the principal corporate trust office of the Bond Registrar,
which is hereby constituted and appointed the registrar of the City. The City is authorized to
prepare, and the Bond Registrar shall keep custody of, multiple Bond blanks executed by the
City for use in the transfer and exchange of Bonds.
Upon surrender for transfer of any Bond at the principal corporate trust office of the
Bond Registrar, duly endorsed by, or accompanied by a written instrument or instruments of
transfer in form satisfactory to the Bond Registrar and duly executed by, the registered owner or
his or her attorney duly authorized in writing, the City shall execute and the Bond Registrar shall
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authenticate, date and deliver in the name of the transferee or transferees a new fully registered
Bond or Bonds of the same maturity of authorized denominations, for a like aggregate principal
amount. Any fully registered Bond or Bonds may be exchanged at said office of the Bond
Registrar for a like aggregate principal amount of Bond or Bonds of the same maturity of other
authorized denominations. The execution by the City of any fully registered Bond shall
constitute full and due authorization of such Bond and the Bond Registrar shall thereby be
authorized to authenticate, date and deliver such Bond, provided, however, the principal amount
of outstanding Bonds of each maturity authenticated by the Bond Registrar shall not exceed the
authorized principal amount of Bonds for such maturity less previous retirements.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period beginning at the close of business on the 1st day of the month of any interest payment
date on such Bond and ending at the opening of business on such interest payment date, nor to
transfer or exchange any Bond after notice calling such Bond for redemption has been mailed,
nor during a period of fifteen (15) days next preceding mailing of a notice of redemption of any
Bonds.
The person in whose name any Bond shall be registered shall be deemed and regarded as
the absolute owner thereof for all purposes, and payment of the principal of or interest on any
Bond shall be made only to or upon the order of the registered owner thereof or his or her legal
representative. All such payments shall be valid and effectual to satisfy and discharge the
liability upon such Bond to the extent of the sum or sums so paid.
No service charge shall be made for any transfer or exchange of Bonds, but the City or
the Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or exchange of Bonds,
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except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond
surrendered for redemption.
(b) Global Book-Entry System. The Bonds shall be initially issued in the form of a
separate single fully registered Bond for each of the maturities of the Bonds determined as
described in Section 3 hereof. Upon initial issuance, the ownership of each such Bond shall be
registered in the Bond Register in the name of Cede & Co., or any successor thereto (“Cede”), as
nominee of The Depository Trust Company, New York, New York, and its successors and
assigns (“DTC”). All of the outstanding Bonds shall be registered in the Bond Register in the
name of Cede, as nominee of DTC, except as hereinafter provided. Any officer of the City who
is a signatory on the Bonds is authorized to execute and deliver, on behalf of the City, such
letters to or agreements with DTC as shall be necessary to effectuate such book-entry system
(any such letter or agreement being referred to herein as the “Representation Letter”), which
Representation Letter may provide for the payment of principal of or interest on the Bonds b y
wire transfer.
With respect to Bonds registered in the Bond Register in the name of Cede, as nominee
of DTC, the City and the Bond Registrar shall have no responsibility or obligation to any
broker-dealer, bank or other financial institution for which DTC holds Bonds from time to time
as securities depository (each such broker-dealer, bank or other financial institution being
referred to herein as a “DTC Participant”) or to any person on behalf of whom such a DTC
Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence,
the City and the Bond Registrar shall have no responsibility or obligation with respect to (i) the
accuracy of the records of DTC, Cede or any DTC Participant with respect to any ownership
interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than a
registered owner of a Bond as shown in the Bond Register, of any notice with respect to the
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Bonds, including any notice of redemption, or (iii) the payment to any DTC Participant or any
other person, other than a registered owner of a Bond as shown in the Bond Register, of any
amount with respect to the principal of or interest on the Bonds. The City and the Bond
Registrar may treat and consider the person in whose name each Bond is registered in the Bond
Register as the holder and absolute owner of such Bond for the purpose of payment of principal
and interest with respect to such Bond, for the purpose of giving notices of redemption and other
matters with respect to such Bond, for the purpose of registering transfers with respect to such
Bond, and for all other purposes whatsoever. The Bond Registrar shall pay all principal of and
interest on the Bonds only to or upon the order of the respective registered owners of the Bonds,
as shown in the Bond Register, or their respective attorneys duly authorized in writing, and all
such payments shall be valid and effective to fully satisfy and discharge the City’s obligations
with respect to payment of the principal of and interest on the Bonds to the extent of the sum or
sums so paid. No person other than a registered owner of a Bond as shown in the Bond Register,
shall receive a Bond evidencing the obligation of the City to make payments of principal and
interest with respect to any Bond. Upon delivery by DTC to the Bond Registrar of written notice
to the effect that DTC has determined to substitute a new nominee in place of Cede, and subject
to the provisions in Section 3 hereof with respect to the payment of interest to the registered
owners of Bonds at the close of business on the 1st day of the month of the applicable interest
payment date, the name “Cede” in this Ordinance shall refer to such new nominee of DTC.
In the event that (i) the City determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (ii) the agreement among the
City, the Bond Registrar and DTC evidenced by the Representation Letter shall be terminated for
any reason or (iii) the City determines that it is in the best interests of the beneficial owners of
the Bonds that they be able to obtain certificated Bonds, the City shall notify DTC and DTC
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Participants of the availability through DTC of certificated Bonds and the Bonds shall no longer
be restricted to being registered in the Bond Register in the name of Cede, as nominee of DTC.
At that time, the City may determine that the Bonds shall be registered in the name of and
deposited with such other depository operating a universal book-entry system, as may be
acceptable to the City, or such depository’s agent or designee, and if the City does not select
such alternate universal book-entry system, then the Bonds may be registered in whatever name
or names registered owners of Bonds transferring or exchanging Bonds shall designate, in
accordance with the provisions of Section 5(a) hereof.
Notwithstanding any other provisions of this Ordinance to the contrary, so long as any
Bond is registered in the name of Cede, as nominee of DTC, all payments with respect to
principal of and interest on such Bond and all notices with respect to such Bond shall be made
and given, respectively, in the name provided in the Representation Letter.
Section 6. Redemption. The Bonds maturing on or after December 15, 2024, shall be
subject to redemption prior to maturity at the option of the City as a whole or in part in integral
multiples of $5,000 in any order of their maturity as determined by the City (less than all of the
Bonds of a single maturity to be selected by the Bond Registrar), on December 15, 2023, and on
any date thereafter, at the redemption price of par plus accrued interest to the redemption date.
The Bonds shall be redeemed only in the principal amount of $5,000 and integral
multiples thereof. The City shall, at least forty-five (45) days prior to any optional redemption
date (unless a shorter time period shall be satisfactory to the Bond Registrar) notify the Bond
Registrar of such redemption date and of the principal amount and maturity or maturities of
Bonds to be redeemed. For purposes of any redemption of less than all of the outstanding Bonds
of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected
by lot by the Bond Registrar from the Bonds of such maturity by such method of lottery as the
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Bond Registrar shall deem fair and appropriate; provided that such lottery shall provide for the
selection for redemption of Bonds or portions thereof so that any $5,000 Bond or $5,000 portion
of a Bond shall be as likely to be called for redemption as any other such $5,000 Bond or $5,000
portion. The Bond Registrar shall make such selection upon the earlier of the irrevocable deposit
of funds with an escrow agent sufficient to pay the redemption price of the Bonds to be
redeemed or the time of the giving of official notice of redemption.
The Bond Registrar shall promptly notify the City in writing of the Bonds or portions of
Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the
principal amount thereof to be redeemed.
Section 7. Redemption Procedure. Unless waived by any holder of Bonds to be
redeemed, notice of the call for any such redemption shall be given by the Bond Registrar on
behalf of the City by mailing the redemption notice by first class mail at least thirty (30) days
and not more than sixty (60) days prior to the date fixed for redemption to the registered owner
of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other
address as is furnished in writing by such registered owner to the Bond Registrar.
All notices of redemption shall state:
(1) the redemption date,
(2) the redemption price,
(3) if less than all outstanding Bonds are to be redeemed, the identification (and,
in the case of partial redemption, the respective principal amounts) of the Bonds to be
redeemed,
(4) that on the redemption date the redemption price will become due and
payable upon each such Bond or portion thereof called for redemption, and that interest
thereon shall cease to accrue from and after said date,
(5) the place where such Bonds are to be surrendered for payment of the
redemption price, which place of payment shall be the principal corporate trust office of
the Bond Registrar, and
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(6) such other information then required by custom, practice or industry
standard.
Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed at the
option of the City shall have been received by the Bond Registrar prior to the giving of such
notice of redemption, such notice may, at the option of the City, state that said redemption shall
be conditional upon the receipt of such moneys by the Bond Registrar on or prior to the date
fixed for redemption. If such moneys are not received, such notice shall be of no force and
effect, the City shall not redeem such Bonds, and the Bond Registrar shall give notice, in the
same manner in which the notice of redemption shall have been given, that such moneys were
not so received and that such Bonds will not be redeemed. Otherwise, prior to any redemption
date, the City shall deposit with the Bond Registrar an amount of money sufficient to pay the
redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date.
Subject to the provisions for a conditional redemption described above, notice of
redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed
shall, on the redemption date, become due and payable at the redemption price therein specified,
and from and after such date (unless the City shall default in the payment of the redemption
price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such
Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Bond
Registrar at the redemption price. Installments of interest due on or prior to the redemption date
shall be payable as herein provided for payment of interest. Upon surrender for any partial
redemption of any Bond, there shall be prepared for the registered holder a new Bond or Bonds
of the same maturity in the amount of the unpaid principal.
If any Bond or portion of Bond called for redemption shall not be so paid upon surrender
thereof for redemption, the principal shall, until paid, bear interest from the redemption date at
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the rate borne by the Bond or portion of Bond so called for redemption. All Bonds which have
been redeemed shall be cancelled and destroyed by the Bond Registrar and shall not be reissued.
Section 8. Form of Bond. The Bonds shall be in substantially the following form;
provided, however, that if the text of the Bond is to be printed in its entirety on the front side of
the Bond, then paragraph [2] and the legend, “See Reverse Side for Additional Provisions”, shall
be omitted and paragraphs [6] through [11] shall be inserted immediately after paragraph [1]:
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[FORM OF BOND - FRONT SIDE]
REGISTERED REGISTERED
NO. ______ $_________
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTY OF LAKE
CITY OF LAKE FOREST
GENERAL OBLIGATION BOND, SERIES 2015
See Reverse Side for
Additional Provisions
Interest Maturity Dated
Rate: ____% Date: December 15, 20__ Date: August 20, 2015 CUSIP: 509696 ___
Registered Owner:
Principal Amount:
[1] KNOW ALL PERSONS BY THESE PRESENTS that the City of Lake Forest, Lake County,
Illinois, a municipality, home rule unit, and political subdivision of the State of Illinois (the
“City”), hereby acknowledges itself to owe and for value received promises to pay to the
Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity
Date identified above, the Principal Amount identified above and to pay interest (computed on
the basis of a 360-day year of twelve 30-day months) on such Principal Amount from the later of
the Dated Date of this Bond identified above or from the most recent interest payment date to
which interest has been paid or duly provided for, at the Interest Rate per annum identified
above, such interest to be payable on June 15 and December 15 of each year, commencing
June 15, 2016, until said Principal Amount is paid or duly provided for. The principal of this
Bond is payable in lawful money of the United States of America upon presentation hereof at the
principal corporate trust office of Wells Fargo Bank, National Association, Chicago, Illinois, as
bond registrar and paying agent (the “Bond Registrar”). Payment of interest shall be made to
the Registered Owner hereof as shown on the registration books of the City maintained by the
Bond Registrar, at the close of business on the 1st day of the month of the interest payment date.
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Interest shall be paid by check or draft of the Bond Registrar, payable upon presentation in
lawful money of the United States of America, mailed to the address of such Registered Owner
as it appears on such registration books, or at such other address furnished in writing by such
Registered Owner to the Bond Registrar. For the prompt payment of this Bond both principal
and interest at maturity, the full faith, credit and resources of the City are hereby irrevocably
pledged.
[2] Reference is hereby made to the further provisions of this Bond set forth on the
reverse hereof, and such further provisions shall for all purposes have the same effect as if set
forth at this place.
[3] It is hereby certified and recited that all conditions, acts and things required by the
Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the
issuance of this Bond, including the hereinafter defined Act, have existed and have been properly
done, happened and been performed in regular and due form and time as required by law; that
the indebtedness of the City, represented by the Bonds, and including all other indebtedness of
the City, howsoever evidenced or incurred, does not exceed any constitutional or statutory or
other lawful limitation; and that provision has been made for the collection of a direct annual tax,
in addition to all other taxes, on all of the taxable property in the City sufficient to pay the
interest hereon as the same falls due and also to pay and discharge the principal hereof at
maturity.
[4] This Bond shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by the Bond Registrar.
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[5] IN WITNESS WHEREOF, the City of Lake Forest, Lake County, Illinois, by its City
Council, has caused this Bond to be executed by the manual or duly authorized facsimile
signature of its Mayor and attested by the manual or duly authorized facsimile signature of its
City Clerk and its corporate seal or a facsimile thereof to be impressed or reproduced hereon, all
as appearing hereon and as of the Dated Date identified above.
SPECIMEN
Mayor, Lake Forest,
Lake County, Illinois
ATTEST:
SPECIMEN
City Clerk, Lake Forest
Lake County, Illinois
[SEAL]
Date of Authentication: ___________, 20__
CERTIFICATE Bond Registrar and Paying Agent:
OF Wells Fargo Bank, National Association,
AUTHENTICATION Chicago, Illinois
This Bond is one of the Bonds described in
the within mentioned ordinance and is one of
the General Obligation Bonds, Series 2015, of
the City of Lake Forest, Lake County, Illinois.
WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Bond Registrar
By SPECIMEN
Authorized Officer
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[FORM OF BOND - REVERSE SIDE]
[6] This Bond is one of a series of bonds (the “Bonds”) issued by the City for the
purpose of financing capital improvements in the City including, but not limited to, infrastructure
improvements in the City’s Laurel Avenue Tax Increment Financing District, and paying
expenses incidental thereto, all as described and defined in the Ordinance of the City, passed by
the City Council on the 3rd day of August, 2015, authorizing the Bonds (the “Ordinance”),
pursuant to and in all respects in compliance with the applicable provisions of the Illinois
Municipal Code, as amended; as further supplemented and, where necessary, superseded, by the
powers of the City as a home rule unit under the provisions of Section 6 of Article VII of the
Illinois Constitution of 1970 (collectively, such Illinois Municipal Code and constitutional home
rule powers, being the “Act”), and with the Ordinance, which has been duly approved by the
Mayor, and published, in all respects as by law required.
[7] Bonds of the issue of which this Bond is one maturing on and after December 15,
2024, are subject to redemption prior to maturity at the option of the City as a whole, or in part in
integral multiples of $5,000 in any order of their maturity as determined by the City (less than all
the Bonds of a single maturity to be selected by lot by the Bond Registrar), on December 15,
2023, and on any date thereafter, at the redemption price of par plus accrued interest to the
redemption date.
[8] Notice of any such redemption shall be sent by first class mail not less than thirty
(30) days nor more than sixty (60) days prior to the date fixed for redemption to the registered
owner of each Bond to be redeemed at the address shown on the registration books of the City
maintained by the Bond Registrar or at such other address as is furnished in writing by such
registered owner to the Bond Registrar. When so called for redemption, this Bond will cease to
bear interest on the specified redemption date, provided funds for redemption are on deposit at
the place of payment at that time, and shall not be deemed to be outstanding.
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[9] This Bond is transferable by the Registered Owner hereof in person or by his or her
attorney duly authorized in writing at the principal corporate trust office of the Bond Registrar in
Chicago, Illinois, but only in the manner, subject to the limitations and upon payment of the
charges provided in the Ordinance, and upon surrender and cancellation of this Bond. Upon
such transfer a new Bond or Bonds of authorized denominations of the same maturity and for the
same aggregate principal amount will be issued to the transferee in exchange therefor.
[10] The Bonds are issued in fully registered form in the denomination of $5,000 each or
authorized integral multiples thereof. This Bond may be exchanged at the principal corporate
trust office of the Bond Registrar for a like aggregate principal amount of Bonds of the same
maturity of other authorized denominations, upon the terms set forth in the Ordinance. The
Bond Registrar shall not be required to transfer or exchange any Bond during the period
beginning at the close of business on the 1st day of the month of any interest payment date on
such Bond and ending at the opening of business on such interest payment date, nor to transfer or
exchange any Bond after notice calling such Bond for redemption has been mailed, nor during a
period of fifteen (15) days next preceding mailing of a notice of redemption of any Bonds.
[11] The City and the Bond Registrar may deem and treat the Registered Owner hereof
as the absolute owner hereof for the purpose of receiving payment of or on account of principal
hereof and interest due hereon and for all other purposes, and neither the City nor the Bond
Registrar shall be affected by any notice to the contrary.
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ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assign, and transfers unto ____________________
Here insert Social Security Number,
Employer Identification Number or
other Identifying Number
______________________________________________________________________________
______________________________________________________________________________
(Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and appoint _______________________
______________________________________________________________________________
as attorney to transfer the said Bond on the books kept for registration thereof with full power of
substitution in the premises.
Dated: ________________________ ____________________________
Signature guaranteed: _____________________________
NOTICE: The signature to this transfer and assignment must correspond with the name of the
Registered Owner as it appears upon the face of the within Bond in every particular,
without alteration or enlargement or any change whatever.
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Section 9. Sale of Bonds. The Bonds shall be executed as in this Ordinance provided
as soon after the passage hereof as may be, shall be deposited with the City Treasurer, and shall
be by the City Treasurer delivered to ________, ___________, __________, the purchaser
thereof (the “Purchaser”), upon receipt of the purchase price therefor, the same being
$_____________; the contract for the sale of the Bonds (the “Purchase Contract”) heretofore
entered into is in all respects ratified, approved and confirmed, and the officers of the City
designated in the Purchase Contract are authorized and directed to execute the Purchase Contract
on behalf of the City, it being hereby declared that, to the best of the knowledge and belief of the
Council, after due inquiry, no person holding any office of the City, either by election or
appointment, is in any manner financially interested, either directly in his or her own name or
indirectly in the name of any other person, association, trust or corporation, in the Purchase
Contract.
The use by the Purchaser of any Preliminary Official Statement and any final Official
Statement relating to the Bonds and before the Council at the time of the adoption hereof (the
“Official Statement”) is hereby ratified, approved and authorized; the execution and delivery of
the Official Statement is hereby authorized; and the officers of the Council are hereby authorized
to take any action as may be required on the part of the City to consummate the transactions
contemplated by said contract for the purchase of the Bonds, this Ordinance, said Preliminary
Official Statement, the Official Statement and the Bonds.
Section 10. Tax Levy; Abatement. For the purpose of providing funds required to pay
the interest on the Bonds promptly when and as the same falls due, and to pay and discharge the
principal thereof at maturity, there is hereby levied upon all of the taxable property within the
City, in the years for which any of the Bonds are outstanding, a direct annual tax sufficient for
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that purpose; and there is hereby levied on all of the taxable property in the City, in addition to
all other taxes, the following direct annual tax (the “Pledged Taxes”), to-wit:
FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE SUM OF:
2015 $ for interest and principal up to and including
December 15, 2016
2016 $ for interest and principal
2017 $ for interest and principal
2018 $ for interest and principal
2019 $ for interest and principal
2020 $ for interest and principal
2021 $ for interest and principal
2022 $ for interest and principal
2023 $ for interest and principal
2024 $ for interest and principal
2025 $ for interest and principal
2026 $ for interest and principal
2027 $ for interest and principal
2028 $ for interest and principal
2029 $ for interest and principal
2030 $ for interest and principal
2031 $ for interest and principal
2032 $ for interest and principal
2033 $ for interest and principal
2034 $ for interest and principal
Principal or interest maturing at any time when there are not sufficient funds on hand
from the foregoing tax levy to pay the same shall be paid from the general funds of the City, and
the fund from which such payment was made shall be reimbursed out of the taxes hereby levied
when the same shall be collected.
The City covenants and agrees with the purchasers and the holders of the Bonds that so
long as any of the Bonds remain outstanding, the City will take no action or fail to take any
action which in any way would adversely affect the ability of the City to levy and collect the
foregoing tax levy and the City and its officers will comply with all present and future applicable
laws in order to assure that the foregoing taxes will be levied, extended and collected as provided
herein and deposited in the fund established to pay the principal of and interest on the Bonds.
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In the event that funds from any other lawful source are made available for the purpose of
paying any principal of or interest on the Bonds so as to enable the abatement of the taxes levied
herein for the payment of same, the Council shall, by proper proceedings, direct the transfer of
such funds to the hereinafter defined Bond Fund, and shall then further direct the abatement of
the taxes by the amount so deposited. The City covenants and agrees that it will not direct the
abatement of taxes until money has been deposited into the Bond Fund in the amount of such
abatement. A certified copy or other notification of any such proceedings abating taxes may then
be filed with the County Clerk in a timely manner to effect such abatement.
Section 11. Filing with County Clerk. Forthwith upon the passage of this Ordinance,
the City Clerk of the City is hereby directed to file a certified copy of this Ordinance with the
County Clerk; and the County Clerk shall in and for each of the years 2015 to 2034, inclusive,
ascertain the rate necessary to produce the tax herein levied; and the County Clerk shall extend
the same for collection on the tax books in connection with other taxes levied in said years in and
by the City for general corporate purposes of the City; and, subject to abatement as stated
hereinabove, in said years such annual tax shall be levied and collected by and for and on behalf
of the City in like manner as taxes for general corporate purposes for said years are levied and
collected, and in addition to and in excess of all other taxes, and when collected, the taxes hereby
levied shall be placed to the credit of a special fund to be designated “Bond and Interest Fund
Account of 2015” (the “Bond Fund”), which taxes are hereby irrevocably pledged to and shall
be used only for the purpose of paying the principal of and interest on the Bonds.
Section 12. Use of Bond Proceeds. Accrued interest, if any, received on the delivery of
the Bonds and $___________ are hereby appropriated for the purpose of paying first interest due
on the Bonds and are hereby ordered deposited into the Bond Fund. The balance of the principal
proceeds of the Bonds and any premium received from the sale of the Bonds are hereby
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appropriated to pay the costs of issuance of the Bonds and for the purpose of paying the cost of
the Project, and that portion thereof not needed to pay such costs of issuance is hereby ordered
deposited into the Capital Improvement Account of the City (the “Project Fund”). At the time
of the issuance of the Bonds, the costs of issuance of the Bonds may be paid by the Purchaser on
behalf of the City from the proceeds of the Bonds.
Section 13. Non-Arbitrage and Tax-Exemption. One purpose of this Section is to set
forth various facts regarding the Bonds and to establish the expectations of the Council and the
City as to future events regarding the Bonds and the use of Bond proceeds. The certifications,
covenants and representations contained herein (except for paragraph 7.10) and at the time of the
Closing are made on behalf of the City for the benefit of the owners from time to time of the
Bonds. In addition to providing the certifications, covenants and representations contained
herein, the City hereby covenants that it will not take any action, omit to take any action or
permit the taking or omission of any action within its control (including, without limitation,
making or permitting any use of the proceeds of the Bonds) if taking, permitting or omitting t o
take such action would cause any of the Bonds to be an arbitrage bond or a private activity bond
within the meaning of the Internal Revenue Code of 1986, as amended (the “Code”) or would
otherwise cause the interest on the Bonds to be included in the gross income of the recipients
thereof for federal income tax purposes. The City acknowledges that, in the event of an
examination by the Internal Revenue Service (the “IRS”) of the Bonds, under present rules, the
City may be treated as the “taxpayer” in such examination and agrees that it will respond in a
commercially reasonable manner to any inquiries from the IRS in connection with such an
examination. The Council and the City certify, covenant and represent as follows:
1.1. Definitions. In addition to such other words and terms used and defined in
this Ordinance, the following words and terms used in this Section shall have the
following meanings unless, in either case, the context or use clearly indicates another or
different meaning is intended:
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“Affiliated Person” means a Person that is affiliated with another Person
(including the City) because either (a) at any time during the six months prior to the
execution and delivery of the Bonds, more than five percent of the voting power of the
governing body of either Person is in the aggregate vested in the other Person and its
directors, officers, owners, and employees, or (b) during the one-year period beginning
six months prior to the execution and delivery of the Bonds, the composition of the
governing body of the Person (or any Person that controls the Person) is modified or
established to reflect (directly or indirectly) representation of the interests of the other
Person (or there is an agreement, understanding, or arrangement relating to such a
modification or establishment during that one-year period).
“Bond Counsel” means Chapman and Cutler LLP or any other nationally
recognized firm of attorneys experienced in the field of municipal bonds whose opinions
are generally accepted by purchasers of municipal bonds.
“Capital Expenditures” means costs of a type that would be properly chargeable
to a capital account under the Code (or would be so chargeable with a proper election)
under federal income tax principles if the City were treated as a corporation subject to
federal income taxation, taking into account the definition of Placed-in-Service set forth
herein.
“Closing” means the first date on which the City is receiving the purchase price
for the Bonds.
“Code” means the Internal Revenue Code of 1986, as amended.
“Commingled Fund” means any fund or account containing both Gross Proceeds
and an amount in excess of $25,000 that are not Gross Proceeds if the amounts in the
fund or account are invested and accounted for, collectively, without regard to the source
of funds deposited in the fund or account. An open-ended regulated investment company
under Section 851 of the Code is not a Commingled Fund.
“Control” means the possession, directly or indirectly through others, of either of
the following discretionary and non-ministerial rights or powers over another entity:
(a) to approve and to remove without cause a controlling portion of the
governing body of a Controlled Entity; or
(b) to require the use of funds or assets of a Controlled Entity for any
purpose.
“Controlled Entity” means any entity or one of a group of entities that is subject
to Control by a Controlling Entity or group of Controlling Entities.
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“Controlled Group” means a group of entities directly or indirectly subject to
Control by the same entity or group of entities. A Controlled Group includes the entity
that has Control of the other entities.
“Controlling Entity” means any entity or one of a group of entities directly or
indirectly having Control of any entities or group of entities.
“Costs of Issuance” means the costs of issuing the Bonds, including underwriter’s
discount and legal fees.
“External Commingled Fund” means a Commingled Fund in which the City and
all members of the same Controlled Group as the City own, in the aggregate, not more
than ten percent of the beneficial interests.
“GIC” means (a) any investment that has specifically negotiated withdrawal or
reinvestment provisions and a specifically negotiated interest rate and (b) any agreement
to supply investments on two or more future dates (e.g., a forward supply contract).
“Gross Proceeds” means amounts in the Bond Fund and the Project Fund.
“Person” means and includes any individual, body politic, governmental unit,
agency or authority, trust, estate, partnership, association, company, corporation,
joint-stock company, syndicate, group, pool, joint venture, other unincorporated
organization or group, or group of any of the above.
“Placed-in-Service” means the date on which, based on all facts and
circumstances (a) a facility has reached a degree of completion that would permit its
operation at substantially its design level and (b) the facility is, in fact, in operation at
such level.
“Private Business Use” means any use of the Project by any Person (including
the federal government) other than a state or local governmental unit, including as a
result of (i) ownership, (ii) actual or beneficial use pursuant to a lease or a management,
service, incentive payment, research or output contract or (iii) any other similar
arrangement, agreement or understanding, whether written or oral, except for use of the
Project on the same basis as the general public. Private Business Use includes any formal
or informal arrangement with any Person other than a state or local governmental unit
(i) that conveys special legal entitlements to any portion of the Project, or (ii) under
which any Person other than a state or local governmental unit has any special economic
benefit with respect to any portion of the Project that is not available for use by the
general public.
“Qualified Administrative Costs of Investments” means (a) reasonable, direct
administrative costs (other than carrying costs) such as separately stated brokerage or
selling commissions but not legal and accounting fees, recordkeeping, custody and
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similar costs; or (b) all reasonable administrative costs, direct or indirect, incurred by a
publicly offered regulated investment company or an External Commingled Fund.
“Qualified Tax Exempt Obligations” means (a) any obligation described in
Section 103(a) of the Code, the interest on which is excludable from gross income of the
owner thereof for federal income tax purposes and is not an item of tax preference for
purposes of the alternative minimum tax imposed by Section 55 of the Code; (b) an
interest in a regulated investment company to the extent that at least ninety-five percent
of the income to the holder of the interest is interest which is excludable from gross
income under Section 103 of the Code of any owner thereof for federal income tax
purposes and is not an item of tax preference for purposes of the alternative minimum tax
imposed by Section 55 of the Code; and (c) certificates of indebtedness issued by the
United States Treasury pursuant to the Demand Deposit State and Local Government
Series program described in 31 C.F.R. pt. 344 (this clause (c) applies only to demand
deposit SLGS, not to other types of SLGS).
“Rebate Fund” means the fund, if any, identified and defined in paragraph 4.1
herein.
“Rebate Provisions” means the rebate requirements contained in Section 148(f)
of the Code and in the Regulations.
“Regulations” means United States Treasury Regulations dealing with the
tax-exempt bond provisions of the Code.
“Reimbursed Expenditures” means any expenditures of the City paid prior to
Closing to which Sale Proceeds or investment earnings thereon are or will be allocated.
“Reserve Portion of the Bond Fund” means the portion of the Bond Fund funded
in excess of the amount of debt service payable each year.
“Sale Proceeds” means amounts actually or constructively received from the sale
of the Bonds, including (a) amounts used to pay underwriter’s discount or compensation,
(b) accrued interest, other than accrued interest for a period not greater than one year
before Closing but only if it is to be paid within one year after Closing and (c) amounts
derived from the sale of any right that is part of the terms of a Bond or is otherwise
associated with a Bond (e.g., a redemption right).
“Yield” means that discount rate which when used in computing the present value
of all payments of principal and interest paid and to be paid on an obligation produces an
amount equal to the obligation’s purchase price (or in the case of the Bonds, the issue
price as established in Section 5.1), including accrued interest. For purposes of
computing the Yield on the Bonds and on investments, the same compounding interval
(which must be an interval of not more than one year) and standard financial conventions
(such as a 360-day year) must be used.
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“Yield Reduction Payment” means a rebate payment or any other amount paid to
the United States in the same manner as rebate amounts are required to be paid or at such
other time or in such manner as the IRS may prescribe that will be treated as a reduction
in Yield of an investment under the Regulations.
2.1. Purpose of the Bonds. The Bonds are being issued to finance the Project in
a prudent manner consistent with the revenue needs of the City. A breakdown of the
sources and uses of funds is set forth in the preceding Section of this Ordinance. Except
for any accrued interest on the Bonds and $_________ in bond proceeds used to pay first
interest due on the Bonds, no proceeds of the Bonds will be used more than 30 days after
the date of issue of the Bonds for the purpose of paying any principal or interest on any
issue of bonds, notes, certificates or warrants or on any installment contract or other
obligation of the City or for the purpose of replacing any funds of the City used for such
purpose.
2.2. The Project—Binding Commitment and Timing. The City has incurred or
will, within six months of the Closing, incur a substantial binding obligation (not subject
to contingencies within the control of the City or any member of the same Controlled
Group as the City) to a third party to expend at least five percent of the Sale Proceeds on
the Project. It is expected that the work of acquiring and constructing the Project and the
expenditure of amounts deposited into the Project Fund will continue to proceed with due
diligence through the last date shown on the draw schedule to be attached to the
Treasurer’s Receipt as an Exhibit (the “Exhibit”) at the time of Closing, which is no later
than three years after Closing, at which time it is anticipated that all Sale Proceeds and
investment earnings thereon will have been spent.
2.3. Reimbursement. With respect to expenditures for the Project paid within the
60 day period ending on this date and with respect to which no declaration of intent was
previously made, the City hereby declares its intent to reimburse such expenditures and
hereby allocates Sale Proceeds in the amount indicated in the Treasurer’s Receipt to be
delivered in connection with the issuance of the Bonds to reimburse said expenditures.
Otherwise, none of the Sale Proceeds or investment earnings thereon will be used for
Reimbursed Expenditures.
2.4. Working Capital. All Sale Proceeds and investment earnings thereon will
be used, directly or indirectly, to finance Capital Expenditures other than the following:
(a) working capital expenditures directly related to Capital Expenditures
financed by the Bonds, in an amount not to exceed five percent of the Sale
Proceeds;
(b) payments of interest on the Bonds for a period commencing at
Closing and ending on the later of the date three years after Closing or one year
after the date on which the Project is Placed-in-Service;
(c) Costs of Issuance and Qualified Administrative Costs of Investments;
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(d) payments of rebate or Yield Reduction Payments made to the United
States;
(e) principal of or interest on the Bonds paid from unexpected excess
Sale Proceeds and investment earnings thereon; and
(f) investment earnings that are commingled with substantial other
revenues and are expected to be allocated to expenditures within six months of the
date commingled.
2.5. Consequences of Contrary Expenditure. The City acknowledges that if Sale
Proceeds and investment earnings thereon are spent for non-Capital Expenditures other
than as permitted by paragraph 2.4 hereof, a like amount of then available funds of the
City will be treated as unspent Sale Proceeds.
2.6. Payments to City or Related Persons. The City acknowledges that if Sale
Proceeds or investment earnings thereon are transferred to or paid to the City or any
member of the same Controlled Group as the City, those amounts will not be treated as
having been spent for federal income tax purposes. However, Sale Proceeds or
investment earnings thereon will be allocated to expenditures for federal income tax
purposes if the City uses such amounts to reimburse itself for amounts paid to persons
other than the City or any member of the same Controlled Group as the City, provided
that the original expenditures were paid on or after Closing or are permitted under
paragraph 2.3 of this Section, and provided that the original expenditures were not
otherwise paid out of Sale Proceeds or investment earnings thereon or the proceeds of
any other borrowing. Any Sale Proceeds or investment earnings thereon that are
transferred to or paid to the City or any member of the same Controlled Group as the City
(other than as reimbursement permitted by paragraph 2.3 or as a result of investment
earnings commingling under paragraph 2.4(f)) will remain Sale Proceeds or investment
earnings thereon, and thus Gross Proceeds, until such amounts are allocated to
expenditures for federal income tax purposes. If the City does not otherwise allocate any
such amounts to expenditures for the Project or other expenditures permitted under this
Ordinance, any such amounts will be allocated for federal income tax purposes to the
next expenditures, not otherwise paid out of Sale Proceeds or investment earnings
thereon or the proceeds of any other borrowing, for interest on the Bonds prior to the later
of the date three years after Closing or one year after the date on which the Project is
Placed-in-Service. The City will consistently follow this accounting method for federal
income tax purposes.
2.7. Investment of Bond Proceeds. Not more than 50% of the Sale Proceeds and
investment earnings thereon are or will be invested in investments (other than Qualified
Tax Exempt Obligations) having a Yield that is substantially guaranteed for four years or
more. No portion of the Bonds is being issued solely for the purpose of investing a
portion of Sale Proceeds or investment earnings thereon at a Yield higher than the Yield
on the Bonds.
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It is expected that the Sale Proceeds deposited into the Project Fund, plus
investment earnings on the Project Fund, will be spent to pay costs of the Project,
including any capitalized interest on the Bonds, in accordance with the estimated
drawdown schedule contained in the Exhibit, the investment earnings on the Bond Fund
will be spent to pay interest on the Bonds, or to the extent permitted by law, investment
earnings on amounts in the Project Fund and the Bond Fund may be commingled with
substantial revenues from the governmental operations of the City, and the earnings are
reasonably expected to be spent for governmental purposes within six months of the date
commingled. Interest earnings on the Project Fund and the Bond Fund have not been
earmarked or restricted by the Board for a designated purpose.
2.8. No Grants. None of the Sale Proceeds or investment earnings thereon will
be used to make grants to any person.
2.9. Hedges. Neither the City nor any member of the same Controlled Group as
the City has entered into or expects to enter into any hedge (e.g., an interest rate swap,
interest rate cap, futures contract, forward contract or an option) with respect to the
Bonds. The City acknowledges that any such hedge could affect, among other things, the
calculation of Bond Yield under the Regulations. The IRS could recalculate Bond Yield
if the failure to account for the hedge fails to clearly reflect the economic substance of the
transaction. The City acknowledges that if it wishes to take any such hedge into account
in determining Bond Yield, various requirements under the Regulations, including
prompt identification of the hedge with the Bonds on the City’s books and records, need
to be met.
The City also acknowledges that if it acquires a hedging contract with an
investment element (including e.g., an off-market swap agreement, or any cap agreement
for which all or a portion of the premium is paid at, or before the effective date of the cap
agreement), then a portion of such hedging contract may be treated as an investment of
Gross Proceeds of the Bonds, and be subject to the fair market purchase price rules,
rebate and yield restriction. The City agrees not to use proceeds of the Bonds to pay for
any such hedging contract in whole or in part. The City also agrees that it will not give
any assurances to any Bondholder or any credit or liquidity enhancer with respect to the
Bonds that any such hedging contract will be entered into or maintained. The City
recognizes that if a portion of a hedging contract is determined to be an investment of
Gross Proceeds, such portion may not be fairly priced even if the hedging contract as a
whole is fairly priced.
2.10. IRS Audits. The City represents that the IRS has not contacted the City
regarding any obligations issued by or on behalf of the City. To the best of the knowledge
of the City, no such obligations of the City are currently under examination by the IRS.
3.1. Use of Proceeds. (a) The use of the Sale Proceeds and investment earnings
thereon and the funds held under this Ordinance at the time of Closing are described in
the preceding Section of this Ordinance. No Sale Proceeds will be used to pre-pay for
goods or services to be received over a period of years prior to the date such goods or
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services are to be received. No Sale Proceeds and no investment earnings thereon will be
used to pay for or otherwise acquire goods or services from the City, any member of the
same Controlled Group as the City, or an Affiliated Person.
(b) Only the funds and accounts described in said Section will be funded at
Closing. There are no other funds or accounts created under this Ordinance, other than
the Rebate Fund if it is created as provided in paragraph 4.1.
(c) Principal of and interest on the Bonds will be paid from the Bond Fund.
(d) Any Costs of Issuance incurred in connection with the issuance of the Bonds
to be paid by the City will be paid at the time of Closing.
(e) The costs of the Project will be paid from the Project Fund and no other
moneys (except for investment earnings on amounts in the Project Fund) are expected to
be deposited therein.
3.2. Purpose of Bond Fund. The Bond Fund (other than the Reserve Portion of
the Bond Fund) will be used primarily to achieve a proper matching of revenues and
earnings with principal and interest payments on the Bonds in each bond year. It is
expected that the Bond Fund (other than the Reserve Portion of the Bond Fund) will be
depleted at least once a year, except for a reasonable carry over amount not to exceed the
greater of (a) the earnings on the investment of moneys in the Bond Fund (other than the
Reserve Portion of the Bond Fund) for the immediately preceding bond year or (b) 1/12th
of the principal and interest payments on the Bonds for the immediately preceding bond
year.
The City will levy taxes to produce an amount sufficient to pay all principal of
and interest on the Bonds in each bond year. To minimize the likelihood of an
insufficiency, the amount levied to pay the Bonds may in most years be in excess of the
amount extended to pay principal and interest within one year of collection.
Nevertheless, except for the Reserve Portion of the Bond Fund, the Bond Fund will be
depleted each year as described above. The Reserve Portion of the Bond Fund will be
treated as a separate account not treated as part of the bona fide debt service fund. The
Reserve Portion of the Bond Fund is subject to yield restriction requirements except as it
may otherwise be excepted as provided in 5.2 below. It is also subject to the rebate
requirements.
3.3. No Other Gross Proceeds. (a) Except for the Bond Fund and the Project
Fund, and except for investment earnings that have been commingled as described in
paragraph 2.6 and any credit enhancement or liquidity device related to the Bonds, after
the issuance of the Bonds, neither the City, any member of the same Controlled Group as
the City nor any other Person has or will have any property, including cash, securities or
will have any property, including cash, securities or any other property held as a passive
vehicle for the production of income or for investment purposes, that constitutes:
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(i) Sale Proceeds;
(ii) amounts in any fund or account with respect to the Bonds (other than
the Rebate Fund);
(iii) amounts that have a sufficiently direct nexus to the Bonds or to the
governmental purpose of the Bonds to conclude that the amounts would have
been used for that governmental purpose if the Bonds were not used or to be used
for that governmental purpose (the mere availability or preliminary earmarking of
such amounts for a governmental purpose, however, does not itself establish such
a sufficient nexus);
(iv) amounts in a debt service fund, redemption fund, reserve fund,
replacement fund or any similar fund to the extent reasonably expected to be used
directly or indirectly to pay principal of or interest on the Bonds or any amounts
for which there is provided, directly or indirectly, a reasonable assurance that the
amount will be available to pay principal of or interest on the Bonds or any
obligations under any credit enhancement or liquidity device with respect to the
Bonds, even if financial difficulties are encountered;
(v) any amounts held pursuant to any agreement (such as an agreement to
maintain certain levels of types of assets) made for the benefit of the Bondholders
or any credit enhancement provider, including any liquidity device or negativ e
pledge (e.g., any amount pledged to secure the Bonds held under an agreement to
maintain the amount at a particular level for the direct or indirect benefit of
holders of the Bonds or a guarantor of the Bonds); or
(vi) amounts actually or constructively received from the investment and
reinvestment of the amounts described in (i) or (ii) above.
(b) No compensating balance, liquidity account, negative pledge of property
held for investment purposes required to be maintained at least at a particular level or
similar arrangement exists with respect to, in any way, the Bonds or any credit
enhancement or liquidity device related to the Bonds.
(c) The term of the Bonds is not longer than is reasonably necessary for the
governmental purpose of the Bonds. One hundred twenty percent of the average
reasonably expected economic life of the Project is at least 15 years. The weighted
average maturity of the Bonds does not exceed 15 years and does not exceed 120 percent
of the average reasonably expected economic life of the Project. The maturity schedule
of the Bonds (the “Principal Payment Schedule”) is based on an analysis of revenues
expected to be available to pay debt service on the Bonds. The Principal Payment
Schedule is not more rapid (i.e., having a lower average maturity) because a more rapid
schedule would place an undue burden on tax rates and cause such rates to be increased
beyond prudent levels, and would be inconsistent with the governmental purpose of the
Bonds as set forth in paragraph 2.1 hereof.
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3.4. Final Allocation of Proceeds. Subject to the requirements of this Section,
including those concerning working capital expenditures in paragraph 2.4, the City may
generally use any reasonable, consistently applied accounting method to account for
Gross Proceeds, investments thereon, and expenditures. The City must account for the
final allocation of proceeds of the Bonds to expenditures not later than 18 months after
the later of the date the expenditure is paid or the date the property with respect to which
the expenditure is made is Placed-in-Service. This allocation must be made in any event
by the date 60 days after the fifth anniversary of the issue date of the Bonds or the date
60 days after the retirement of the Bonds, if earlier.
Reasonable accounting methods for allocating funds include any of the following
methods if consistently applied: a specific tracing method; a Gross Proceeds spent first
method; a first-in, first-out method; or a ratable allocation method. The City may also
reallocate proceeds of the Bonds from one expenditure to another until the end of the
period for final allocation, discussed above. Unless the City has taken an action to use a
different allocation method by the end of the period for a final allocation, proceeds of the
Bonds will be treated as allocated to expenditures using the specific tracing method.
4.1. Compliance with Rebate Provisions. The City covenants to take such
actions and make, or cause to be made, all calculations, transfers and payments that may
be necessary to comply with the Rebate Provisions applicable to the Bonds. The City
will make, or cause to be made, rebate payments with respect to the Bonds in accordance
with law.
The City is hereby authorized to create and establish a special fund to be known
as the Rebate Fund (the “Rebate Fund”), which, if created, shall be continuously held,
invested, expended and accounted for in accordance with this Ordinance. Moneys in the
Rebate Fund shall not be considered moneys held for the benefit of the owners of the
Bonds. Moneys in the Rebate Fund (including earnings and deposits therein) shall be
held and used for any required payment to the United States as required by the Rebate
Provisions and by the Regulations and as contemplated under the provisions of this
Ordinance.
4.2. Records. The City agrees to keep and retain or cause to be kept and retained
for the period described in paragraph 7.9 adequate records with respect to the investment
of all Gross Proceeds and any amounts in the Rebate Fund. Such records shall include:
(a) purchase price; (b) purchase date; (c) type of investment; (d) accrued interest paid;
(e) interest rate; (f) principal amount; (g) maturity date; (h) interest payment date; (i) date
of liquidation; and (j) receipt upon liquidation.
If any investment becomes Gross Proceeds on a date other than the date such
investment is purchased, the records required to be kept shall include the fair market
value of such investment on the date it becomes Gross Proceeds. If any investment
ceases to be Gross Proceeds on a date other than the date such investment is sold or is
retained after the date the last Bond is retired, the records required to be kept shall
include the fair market value of such investment on the date the last Bond is retired.
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Amounts or investments will be segregated whenever necessary to maintain these
records.
4.3. Fair Market Value; Certificates of Deposit and Investment Agreements. In
making investments of Gross Proceeds and any amounts in the Rebate Fund the City shall
take into account prudent investment standards and the date on which such moneys may
be needed. Except as provided in the next sentence, all amounts that constitute Gross
Proceeds and all amounts in the Rebate Fund shall be invested at all times to the greatest
extent practicable, and no amounts may be held as cash or be invested in zero yield
investments other than obligations of the United States purchased directly from the
United States. In the event moneys cannot be invested, other than as provided in this
sentence due to the denomination, price or availability of investments, the amounts shall
be invested in an interest bearing deposit of a bank with a yield not less than that paid to
the general public or held uninvested to the minimum extent necessary.
Gross Proceeds and any amounts in the Rebate Fund that are invested in
certificates of deposit or in GICs shall be invested only in accordance with the following
provisions:
(a) Investments in certificates of deposit of banks or savings and loan
associations that have a fixed interest rate, fixed payment schedules and
substantial penalties for early withdrawal shall be made only if either (i) the Yield
on the certificate of deposit (A) is not less than the Yield on reasonably
comparable direct obligations of the United States and (B) is not less than the
highest Yield that is published or posted by the provider to be currently available
from the provider on reasonably comparable certificates of deposit offered to the
public or (ii) the investment is an investment in a GIC and qualifies under
paragraph (b) below. Investments in federally insured deposits or accounts,
including certificates of deposit, may not be made except as allowed under
paragraph 5.4.
(b) Investments in GICs shall be made only if
(i) the bid specifications are in writing, include all material terms
of the bid and are timely forwarded to potential providers (a term is
material if it may directly or indirectly affect the yield on the GIC);
(ii) the terms of the bid specifications are commercially reasonable
(a term is commercially reasonable if there is a legitimate business
purpose for the term other than to reduce the yield on the GIC);
(iii) all bidders for the GIC have equal opportunity to bid so that,
for example, no bidder is given the opportunity to review other bids (a last
look) before bidding;
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(iv) any agent used to conduct the bidding for the GIC does not bid
to provide the GIC;
(v) at least three of the providers solicited for bids for the GIC are
reasonably competitive providers of investments of the type purchased
(i.e., providers that have established industry reputations as competitive
providers of the type of investments being purchased);
(vi) at least three of the entities that submit a bid do not have a
financial interest in the Bonds;
(vii) at least one of the entities that provided a bid is a reasonably
competitive provider that does not have a financial interest in the Bonds;
(viii) the bid specifications include a statement notifying potential
providers that submission of a bid is a representation that the potential
provider did not consult with any other provider about its bid, that the bid
was determined without regard to any other formal or informal agreement
that the potential provider has with the City or any other person (whether
or not in connection with the Bonds) and that the bid is not being
submitted solely as a courtesy to the City or any other person for purposes
of satisfying the federal income tax requirements relating to the bidding
for the GIC;
(ix) the determination of the terms of the GIC takes into account
the reasonably expected deposit and drawdown schedule for the amounts
to be invested;
(x) the highest-yielding GIC for which a qualifying bid is made
(determined net of broker’s fees) is in fact purchased; and
(xi) the obligor on the GIC certifies the administrative costs that it
is paying or expects to pay to third parties in connection with the GIC.
A single investment, or multiple investments awarded to a provider based
on a single bid, may not be used for funds subject to different rules relating to
rebate or yield restriction.
(c) If a GIC is purchased, the City will retain the following records with
its bond documents until three years after the Bonds are redeemed in their
entirety:
(i) a copy of the GIC;
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(ii) the receipt or other record of the amount actually paid for the
GIC, including a record of any administrative costs paid, and the
certification under subparagraph (b)(xi) of this paragraph;
(iii) for each bid that is submitted, the name of the person and entity
submitting the bid, the time and date of the bid, and the bid results; and
(iv) the bid solicitation form and, if the terms of the GIC deviated
from the bid solicitation form or a submitted bid is modified, a brief
statement explaining the deviation and stating the purpose for the
deviation.
All investments made with Gross Proceeds or amounts in the Rebate Fund shall
be bought and sold at fair market value. The fair market value of an investment is the
price at which a willing buyer would purchase the investment from a willing seller in a
bona fide, arm’s length transaction. Except for investments specifically described in (a)
or (b) of this paragraph and United States Treasury obligations that are purchased directl y
from the United States Treasury, only investments that are traded on an established
securities market, within the meaning of regulations promulgated under Section 1273 of
the Code, will be purchased with Gross Proceeds. In general, an investment is traded on
an established securities market only if at any time during the 31-day period ending
15 days after the purchase date: (i) within a reasonable period of time after the sale, the
price for an executed purchase or sale of the investment (or information sufficient to
calculate the sales price) appears in a medium that is made available to issuers of debt
instruments, persons that regularly purchase or sell debt instruments (including a price
provided only to certain customers or to subscribers), or persons that broker purchases or
sales of debt instruments; (ii) there are one or more firm quotes for the investment (a firm
quote is considered to exist when a price quote is available from at least one broker,
dealer, or pricing service (including a price provided only to certain customers or to
subscribers) for property and the quoted price is substantially the same as the price for
which the person receiving the quoted price could purchase or sell the property; a price
quote is considered to be available whether the quote is initiated by a person providing
the quote or provided at the request of the person receiving the quote; the identity of the
person providing the quote must be reasonably ascertainable for a quote to be considered
a firm quote for this purpose; a quote will be considered a firm quote if the quote is
designated as a firm quote by the person providing the quote or if market participants
typically purchase or sell, as the case may be, at the quoted price, even if the party
providing the quote is not legally obligated to purchase or sell at that price); or (iii) there
are one or more indicative quotes for the investment (an indicative quote is considered to
exist when a price quote is available from at least one broker, dealer, or pricing servi ce
(including a price provided only to certain customers or to subscribers) for property and
the price quote is not a firm quote described in the prior clause). However, a maturity of
a debt instrument is not treated as traded on an established market if at the time the
determination is made the outstanding stated principal amount of the maturity that
includes the debt instrument does not exceed $100,000,000 (or, for a debt instrument
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denominated in a currency other than the U.S. dollar, the equivalent amount in the
currency in which the debt instrument is denominated).
An investment of Gross Proceeds in an External Commingled Fund shall be made
only to the extent that such investment is made without an intent to reduce the amount to
be rebated to the United States Government or to create a smaller profit or a larger loss
than would have resulted if the transaction had been at arm’s length and had the rebate or
Yield restriction requirements not been relevant to the City. An investment of Gross
Proceeds shall be made in a Commingled Fund other than an External Commingled Fund
only if the investments made by such Commingled Fund satisfy the provisions of this
paragraph.
The foregoing provisions of this paragraph satisfy various safe harbors set forth in
the Regulations relating to the valuation of certain types of investments. The safe harbor
provisions of this paragraph are contained herein for the protection of the City, who has
covenanted not to take any action to adversely affect the tax-exempt status of the interest
on the Bonds. The City may contact Bond Counsel if it does not wish to comply with the
provisions of this paragraph.
4.4. Arbitrage Elections. The Mayor, City Clerk and City Treasurer of the City
are hereby authorized to execute one or more elections regarding certain matters with
respect to arbitrage.
5.1. Issue Price. For purposes of determining the Yield on the Bonds, the
purchase price of the Bonds is equal to the first offering price (including accrued interest)
at which the Purchaser reasonably expected that at least ten percent of each maturity of
the Bonds would be sold to the public (excluding bond houses, brokers or similar persons
or organizations acting in the capacity of underwriters, placement agents or wholesalers).
All of the Bonds have been the subject of a bona fide initial offering to the public
(excluding bond houses, brokers, or similar persons or organizations acting in the
capacity of underwriters, placement agents or wholesalers) at prices equal to those set
forth in the Official Statement. Based upon prevailing market conditions, such prices are
not less than the fair market value of each Bond as of the sale date for the Bonds.
5.2. Yield Limits. (a) Except as provided in paragraph (b), all Gross Proceeds
shall be invested at market prices and at a Yield (after taking into account any Yield
Reduction Payments) not in excess of the Yield on the Bonds plus, if only amounts in the
Project Fund are subject to this yield limitation, 1/8th of one percent.
(b) The following may be invested without Yield restriction:
(i) amounts qualifying for a temporary period consisting of:
(A) amounts on deposit in the Bond Fund (except for capitalized
interest) (other than the Reserve Portion of the Bond Fund) that have not
been on deposit under this Ordinance for more than 13 months, so long as
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the Bond Fund continues to qualify as a bona fide debt service fund as
described in paragraph 3.2 hereof;
(B) amounts on deposit in the Project Fund prior to the earlier of
three years after Closing or the date the City no longer expects to spend all
such amounts;
(C) amounts in the Bond Fund to be used to pay capitalized interest
on the Bonds prior to the earlier of three years after Closing or the
payment of all capitalized interest;
(ii) amounts qualifying for other exceptions consisting of:
(A) an amount not to exceed the lesser of $100,000 or five percent
of the Sale Proceeds;
(B) amounts invested in Qualified Tax Exempt Obligations;
(C) amounts in the Rebate Fund;
(D) all amounts other than Sale Proceeds for the first 30 days after
they become Gross Proceeds; and
(E) all amounts derived from the investment of Sale Proceeds or
investment earnings thereon for a period of one year from the date
received.
5.3. Federal Guarantees. Except as otherwise permitted by the Regulations, no
portion of the payment of principal or interest on the Bonds or any credit enhancement or
liquidity device relating to the foregoing is or will be guaranteed, directly or indirectly (in
whole or in part), by the United States (or any agency or instrumentality thereof),
including a lease, incentive payment, research or output contract or any similar
arrangement, agreement or understanding with the United States or any agency or
instrumentality thereof. No portion of the Gross Proceeds has been or will be used to
make loans the payment of principal or interest with respect to which is or will be
guaranteed (in whole or in part) by the United States (or any agency or instrumentality
thereof). This paragraph does not apply to any guarantee by the Federal Housing
Administration, the Federal National Mortgage Association, the Federal Home Loan
Mortgage Corporation, the Government National Mortgage Association, the Student
Loan Marketing Association or the Bonneville Power Administration pursuant to the
Northwest Power Act (16 U.S.C. 839d) as in effect on the date of enactment of the Tax
Reform Act of 1984.
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5.4. Federally Guaranteed Investments. (a) Certain Gross Proceeds may not be
invested in a manner that is considered to create a federal guarantee. The restrictions in
this paragraph 5.4 apply to all Gross Proceeds except:
(i) amounts on deposit in the Project Fund prior to the earlier of three
years after Closing or the date the City no longer expects to spend all such
amount;
(ii) amounts on deposit in the Bond Fund (other than the Reserve Portion
of the Bond Fund) to the extent the Bond Fund qualifies as a bona fide debt
service fund described in paragraph 3.2; and
(iii) amounts in the Bond Fund to be used to pay capitalized interest on
the Bonds prior to the earlier of three years after Closing or the payment of all
capitalized interest.
(b) If the City holds any Gross Proceeds other than those listed in the preceding
paragraph (a), then any such Gross Proceeds in an amount in excess of five percent of the
Sale Proceeds shall not be invested in:
(i) federally insured deposits or accounts, such as bank accounts and
C.D.s;
(ii) Obligations of or directly or indirectly guaranteed, in whole or in part,
by the United States (or any agency or instrumentality of the United States), other
than the following:
(a) United States Treasury Obligations;
(b) obligations issued by the Ordinance Funding Corporation
pursuant to Section 21B(d)(3) of the Federal Home Loan Bank Act, as
amended by Section 511 of the Financial Institutions Reform, Recovery
and Enforcement Act of 1989, or any successor provision (e.g., Refcorp
Strips); and
(c) obligations guaranteed by the Federal Housing Administration,
the Federal National Mortgage Association, the Federal Home Loan
Mortgage Corporation, the Government National Mortgage Association,
the Student Loan Marketing Association or the Bonneville Power
Administration pursuant to the Northwest Power Act (16 U.S.C. 839d) as
in effect on the date of enactment of the Tax Reform Act of 1984.
Because of these investment limitations, after the date three years after Closing,
any amounts remaining in the Project Fund must be invested in U.S. Treasury obligations
(including obligations of the State and Local Government Series, known as SLGS) or
otherwise invested to avoid violating the restrictions set forth in this section.
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6.1. Payment and Use Tests. (a) No more than five percent of the Sale Proceeds
plus investment earnings thereon (not including amounts used to pay costs of issuance
and other common costs (such as capitalized interest and fees paid for a qualified
guarantee or qualified hedge) and amounts invested in a reserve or replacement fund),
will be used, directly or indirectly, in whole or in part, in any Private Business Use.
(b) The payment of more than five percent of the principal of or the interest on
the Bonds will not be, directly or indirectly (i) secured by any interest in (A) property
used or to be used in any Private Business Use or (B) payments in respect of such
property or (ii) on a present value basis, derived from payments (whether or not to the
City or a member of the same Controlled Group as the City) in respect of property, or
borrowed money, used or to be used in any Private Business Use.
(c) No more than the lesser of five percent of the sum of the Sale Proceeds and
investment earnings thereon (not including amounts used to pay costs of issuance and
other common costs (such as capitalized interest and fees paid for a qualified guarantee or
qualified hedge) and amounts invested in a reserve or replacement fund) or $5,000,000
will be used, directly or indirectly, to make or finance loans to any persons.
(d) No user of the Project other than a state or local governmental unit will use
more than five percent of the Project, in the aggregate, on any basis other than the same
basis as the general public.
6.2. I.R.S. Form 8038-G. The information contained in the Information Return
for Tax-Exempt Governmental Obligations, Form 8038-G, is true and complete. The
City will file Form 8038-G (and all other required information reporting forms) in a
timely manner.
6.3. Bank Qualification. (a) The City hereby designates each of the Bonds as a
“qualified tax-exempt obligation” for the purposes and within the meaning of
Section 265(b)(3) of the Code.
(b) The City has not entered into and will not enter into any agreements under
which obligations issued by any other entity in calendar year 2015 were or will be
allocated to the City for purposes of Section 265(b)(3) of the Code.
(c) The City is not subject to the Control of any entity, and there are no entities
subject to Control of the City that issued or may issue tax-exempt obligations during
calendar year 2015. During calendar year 2015, the City has not and will not issue tax-
exempt bonds on behalf of any other entity. The City has not and will not borrow the
proceeds or otherwise use the proceeds of any tax-exempt bonds issued by another entity
during calendar year 2015.
(d) The par amount of the Bonds does not exceed $10,000,000 and the issue
price of the Bonds does not exceed $10,000,000. The Bonds have not been sold in
conjunction with any other obligations.
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(e) In calendar year 2015, other than the Bonds, no tax-exempt obligations of
any kind have been issued, are reasonably expected to be issued, or will be issued (A) by
or on behalf of the City or (B) by any entity subject to Control by the City (including any
entity which may hereafter come into existence).
(f) In calendar year 2015, no entity has issued or will issue tax-exempt
obligations which, but for the $10,000,000 limitations of Section 265(b)(3) of the Code
would have been or would be issued (A) by or on behalf of the City or (B) by any entity
subject to Control by the City (including any entity which may hereafter come into
existence). The City will receive substantial benefits from the project financed by the
Bonds.
(g) The City may take an action or permit an action to be taken that is contrary
to the requirements of this paragraph 6.3 only if, in addition to the requirements of
paragraph 7.8, the action will not adversely affect the treatment of the Bonds as
“qualified tax-exempt obligations” for the purpose and within the meaning of
Section 265(b)(3) of the Code and the City obtains an opinion of Bond Counsel to that
effect.
7.1. Termination; Interest of City in Rebate Fund. The terms and provisions set
forth in this Section shall terminate at the later of (a) 75 days after the Bonds have been
fully paid and retired or (b) the date on which all payments, if any, required to satisfy the
Rebate Provisions of the Code have been made to the United States. Notwithstanding the
foregoing, the provisions of paragraphs 4.2, 4.3(c) and 7.9 hereof shall not terminate until
the third anniversary of the date the Bonds are fully paid and retired.
7.2. Separate Issue. Since a date that is 15 days prior to the date of sale of the
Bonds by the City to the Purchaser, neither the City nor any member of the same
Controlled Group as the City has sold or delivered any tax-exempt obligations other than
the Bonds that are reasonably expected to be paid out of substantially the same source of
funds as the Bonds. Neither the City nor any member of the same Controlled Group as
the City will sell or deliver within 15 days after the date of sale of the Bonds any
tax-exempt obligations other than the Bonds that are reasonably expected to be paid out
of substantially the same source of funds as the Bonds.
7.3. No Sale of the Project. (a) Other than as provided in the next sentence,
neither the Project nor any portion thereof has been, is expected to be, or will be sold or
otherwise disposed of, in whole or in part, prior to the earlier of (i) the last date of the
reasonably expected economic life to the City of the property (determined on the date of
issuance of the Bonds) or (ii) the last maturity date of the Bonds. The City may dispose
of personal property in the ordinary course of an established government program prior to
the earlier of (i) the last date of the reasonably expected economic life to the City of the
property (determined on the date of issuance of the Bonds) or (ii) the last maturity of the
Bonds, provided: (A) the weighted average maturity of the Bonds financing the personal
property is not greater than 120 percent of the reasonably expected actual use of that
property for governmental purposes; (B) the City reasonably expects on the issue date
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that the fair market value of that property on the date of disposition will be not greater
than 25 percent of its cost; (C) the property is no longer suitable for its governmental
purposes on the date of disposition; and (D) the City deposits amounts received from the
disposition in a commingled fund with substantial tax or other governmental revenues
and the City reasonably expects to spend the amounts on governmental programs within
six months from the date of the commingling.
(b) The City acknowledges that if Bond-financed property is sold or otherwise
disposed of in a manner contrary to (a) above, such sale or disposition may constitute a
“deliberate action” within the meaning of the Regulations that may require prompt
remedial actions to prevent interest on the Bonds from being included in gross income for
federal income tax purposes. The City shall promptly contact Bond Counsel if a sale or
other disposition of Bond-financed property in a manner contrary to (a) above is
considered by the City.
7.4. Purchase of Bonds by City. The City will not purchase any of the Bonds
except to cancel such Bonds.
7.5. First Call Date Limitation. The period between the date of Closing and the
first call date of the Bonds is not more than 10-1/2 years.
7.6. Registered Form. The City recognizes that Section 149(a) of the Code
requires the Bonds to be issued and to remain in fully registered form in order that
interest thereon be exempt from federal income taxation under laws in force at the time
the Bonds are delivered. In this connection, the City agrees that it will maintain the
Bonds in registered form and will not take any action to permit the Bonds to be issued in,
or converted into, bearer or coupon form.
7.7. Future Events. The City acknowledges that any changes in facts or
expectations from those set forth herein may result in different Yield restrictions or rebate
requirements from those set forth herein. The City shall promptly contact Bond Counsel
if such changes do occur.
7.8. Permitted Changes; Opinion of Bond Counsel. Any restriction or covenant
contained in this Section need not be observed, and any provision of this Section may be
changed or amended, only if (in addition to any requirements for a particular change
contained elsewhere in this Section) such nonobservance, change or amendment will not
result in the loss of the exclusion from gross income for federal income tax purposes of
interest on the Bonds or the inclusion of interest on the Bonds as an item of tax
preference in computing the alternative minimum tax for individuals and corporations
under the Code and the City receives an opinion of Bond Counsel to such effect. Unless
the City otherwise directs, such opinion shall be in such form and contain such
disclosures and disclaimers as may be required so that such opinion will not be treated as
a covered opinion for purposes of Treasury Department regulations governing practice
before the IRS (Circular 230) 31 C.F.R. pt. 10.
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7.9. Records Retention. The City agrees to keep and retain or cause to be kept
and retained sufficient records to support the continued exclusion of the interest paid on
the Bonds from federal income taxation, to demonstrate compliance with the covenants in
this Ordinance and to show that all tax returns related to the Bonds submitted or required
to be submitted to the IRS are correct and timely filed. Such records shall include, but
are not limited to, basic records relating to the Bond transaction (including this Ordinance
and the Bond Counsel opinion); documentation evidencing the expenditure of Bond
proceeds; documentation evidencing the use of Bond-financed property by public and
private entities (i.e., copies of leases, management contracts and research agreements);
documentation evidencing all sources of payment or security for the Bonds; and
documentation pertaining to any investment of Bond proceeds (including the information
required under paragraphs 4.2 and 4.3 hereof and in particular information related to the
purchase and sale of securities, SLGs subscriptions, yield calculations for each class of
investments, actual investment income received from the investment of proceeds,
guaranteed investment contracts and documentation of any bidding procedure related
thereto and any fees paid for the acquisition or management of investments and any
rebate calculations). Such records shall be kept for as long as the Bonds are outstanding,
plus three (3) years after the later of the final payment date of the Bonds or the final
payment date of any obligations or series of obligations issued to refund directly or
indirectly all or any portion of the Bonds.
7.10. Post-Issuance Compliance Policy. The City acknowledges that the IRS
encourages issuers of tax-exempt bonds to adopt written post-issuance compliance
policies in addition to its bond documents, and provides certain potential benefits to
issuers that do so. For example, issuers may receive more favorable terms on any
voluntary settlement pursuant to the IRS’ voluntary closing agreement program if an
issuer has adopted written procedures that, at a minimum, specify the official(s) with
responsibility for monitoring compliance, a description of the training provided to such
responsible official(s) with regard to monitoring compliance, the frequency of
compliance checks (must be at least annual), the nature of the compliance activities
required to be undertaken, the procedures used to timely identify and elevate the
resolution of a violation when it occurs or is expected to occur, procedures for the
retention of all records material to substantiate compliance with the applicable federal tax
requirements, and an awareness of the availability of the IRS’ voluntary closing
agreement program and other remedial actions to resolve violations. Generally, a
reference to reliance on the bond documents, without more, will not qualify as sufficient
written procedures for these purposes.
The City has adopted written post-issuance compliance policies that meet the
foregoing, which are contained in this Ordinance. The post-issuance compliance policies
do not constitute part of this Section, and the City may modify or eliminate any
post-issuance compliance policies without the consent of the holders of the Bonds and
without regard to paragraph 7.8.
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7.11. Successors and Assigns. The terms, provisions, covenants and conditions of
this Section shall bind and inure to the benefit of the respective successors and assigns of
the Board and the City.
7.12. Expectations. The Board has reviewed the facts, estimates and
circumstances in existence on the date of issuance of the Bonds. On the basis of the facts
and estimates contained herein, the City has adopted the expectations contained herein.
Such expectations are reasonable and there are no other facts, estimates and
circumstances that would materially change such expectations.
The City also agrees and covenants with the purchasers and holders of the Bonds from
time to time outstanding that, to the extent possible under Illinois law, it will comply with
whatever federal tax law is adopted in the future which applies to the Bonds and affects the
tax-exempt status of the Bonds.
The Council hereby authorizes the officials of the City responsible for issuing the Bonds,
the same being the Mayor, City Clerk and City Treasurer, to make such further covenants and
certifications as may be necessary to assure that the use thereof will not cause the Bonds to be
arbitrage bonds and to assure that the interest on the Bonds will be exempt from federal income
taxation. In connection therewith, the City and the Council further agree: (a) through their
officers, to make such further specific covenants, representations as shall be truthful, and
assurances as may be necessary or advisable; (b) to consult with counsel approving the Bonds
and to comply with such advice as may be given; (c) to pay to the United States, as necessary,
such sums of money representing required rebates of excess arbitrage profits relating to the
Bonds; (d) to file such forms, statements, and supporting documents as may be required and in a
timely manner; and (e) if deemed necessary or advisable by their officers, to employ and pay
fiscal agents, financial advisors, attorneys, and other persons to assist the City in such
compliance.
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Section 14. List of Bondholders. The Bond Registrar shall maintain a list of the names
and addresses of the holders of all Bonds and upon any transfer shall add the name and address
of the new Bondholder and eliminate the name and address of the transferor Bondholder.
Section 15. Duties of Bond Registrar. If requested by the Bond Registrar, the Mayor
and City Clerk of the City are authorized to execute the Bond Registrar’s standard form of
agreement between the City and the Bond Registrar with respect to the obligations and duties of
the Bond Registrar hereunder which may include the following:
(a) to act as bond registrar, authenticating agent, paying agent and transfer agent
as provided herein;
(b) to maintain a list of Bondholders as set forth herein and to furnish such list
to the City upon request, but otherwise to keep such list confidential;
(c) to give notice of redemption of the Bonds as provided herein;
(d) to cancel and/or destroy Bonds which have been paid at maturity or
submitted for exchange or transfer;
(e) to furnish the City at least annually a certificate with respect to Bonds
cancelled and/or destroyed; and
(f) to furnish the City at least annually an audit confirmation of Bonds paid,
Bonds outstanding and payments made with respect to interest on the Bonds.
Section 16. Continuing Disclosure Undertaking. The Mayor or City Treasurer is
hereby authorized, empowered and directed to execute and deliver a Continuing Disclosure
Undertaking (the “Continuing Disclosure Undertaking”) in connection with the issuance of the
Bonds, with such provisions therein as he or she shall approve, his or her execution thereof to
constitute conclusive evidence of his or her approval of such provisions. When the Continuing
Disclosure Undertaking is executed and delivered on behalf of the City as herein provided, the
Continuing Disclosure Undertaking will be binding on the City and the officers, employees and
agents of the City, and the officers, employees and agents of the City are hereby authorized,
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empowered and directed to do all such acts and things and to execute all such documents as may
be necessary to carry out and comply with the provisions of the Continuing Disclosure
Undertaking as executed. Notwithstanding any other provision of this Ordinance, the sole
remedies for failure to comply with the Continuing Disclosure Undertaking shall be the ability of
the beneficial owner of any Bond to seek mandamus or specific performance by court order, to
cause the City to comply with its obligations under the Continuing Disclosure Undertaking.
Section 17. Record-Keeping Policy and Post-Issuance Compliance Matters. It is
necessary and in the best interest of the City to maintain sufficient records to demonstrate
compliance with its covenants and expectations to ensure the appropriate federal tax status for
the Bonds and other debt obligations of the City, the interest on which is excludable from “gross
income” for federal income tax purposes or which enable the City or the holder to receive federal
tax benefits, including, but not limited to, qualified tax credit bonds and other specified tax credit
bonds (including the Bonds, the “Tax Advantaged Obligations”). Further, it is necessary and in
the best interest of the City that (i) the Council adopt policies with respect to record-keeping and
post issuance compliance with the City’s covenants related to its Tax Advantaged Obligations
and (ii) the Compliance Officer (as hereinafter defined) at least annually review the City’s
Contracts (as hereinafter defined) to determine whether the Tax Advantaged Obligations comply
with the federal tax requirements applicable to each issue of the Tax Advantaged Obligations.
The Council and the City hereby adopt the following Record-Keeping Policy and, in doing so,
amend any similar Record-Keeping Policy or Policies heretofore adopted:
(a) Compliance Officer is Responsible for Records. The Director of Finance of
the City (the “Compliance Officer”) is hereby designated as the keeper of all records of
the City with respect to each issue of the Tax Advantaged Obligations, and such officer
shall report to the Council at least annually that he/she has all of the required records in
his/her possession, or is taking appropriate action to obtain or recover such records.
(b) Closing Transcripts. For each issue of Tax Advantaged Obligations, the
Compliance Officer shall receive, and shall keep and maintain, a true, correct and
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complete counterpart of each and every document and agreement delivered in connection
with the issuance of the Tax Advantaged Obligations, including without limitation (i) the
proceedings of the City authorizing the Tax Advantaged Obligations, (ii) any offering
document with respect to the offer and sale of the Tax Advantaged Obligations, (iii) any
legal opinions with respect to the Tax Advantaged Obligations delivered by any lawyers,
and (iv) all written representations of any person delivered in connection with the
issuance and initial sale of the Tax Advantaged Obligations.
(c) Arbitrage Rebate Liability. The Compliance Officer shall review the
agreements of the City with respect to each issue of Tax Advantaged Obligations and
shall prepare a report for the Council stating whether or not the City has any rebate
liability to the United States Treasury, and setting forth any applicable exemptions that
each issue of Tax Advantaged Obligations may have from rebate liability. Such report
shall be updated annually and delivered to the Council.
(d) Recommended Records. The Compliance Officer shall review the records
related to each issue of Tax Advantaged Obligations and shall determine what
requirements the City must meet in order to maintain the tax-exemption of interest paid
on its Tax Advantaged Obligations, its entitlement to direct payments by the United
States Treasury of the applicable percentages of each interest payment due and owing on
its Tax Advantaged Obligations, and applicable tax credits or other tax benefits arising
from its Tax Advantaged Obligations. The Compliance Officer shall then prepare a list
of the contracts, requisitions, invoices, receipts and other information that may be needed
in order to establish that the interest paid on the Tax Advantaged Obligations is entitled
to be excluded from “gross income” for federal income tax purposes, that the City is
entitled to receive from the United States Treasury direct payments of the applicable
percentages of interest payments coming due and owing on its Tax Advantaged
Obligations, and the entitlement of holders of any Tax Advantaged Obligations to any tax
credits or other tax benefits, respectively. Notwithstanding any other policy of the City,
such retained records shall be kept for as long as the Tax Advantaged Obligations relating
to such records (and any obligations issued to refund the Tax Advantaged Obligations)
are outstanding, plus three years, and shall at least include:
(i) complete copies of the transcripts delivered when any issue of Tax
Advantaged Obligations is initially issued and sold;
(ii) copies of account statements showing the disbursements of all Tax
Advantaged Obligation proceeds for their intended purposes, and records showing
the assets and other property financed by such disbursements;
(iii) copies of account statements showing all investment activity of any
and all accounts in which the proceeds of any issue of Tax Advantaged
Obligations has been held or in which funds to be used for the payment of
principal of or interest on any Tax Advantaged Obligations has been held, or
which has provided security to the holders or credit enhancers of any Tax
Advantaged Obligations;
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(iv) copies of all bid requests and bid responses used in the acquisition of
any special investments used for the proceeds of any issue of Tax Advantaged
Obligations, including any swaps, swaptions, or other financial derivatives
entered into in order to establish that such instruments were purchased at fair
market value;
(v) copies of any subscriptions to the United States Treasury for the
purchase of State and Local Government Series (SLGS) obligations;
(vi) any calculations of liability for arbitrage rebate that is or may
become due with respect to any issue of Tax Advantaged Obligations, and any
calculations prepared to show that no arbitrage rebate is due, together, if
applicable, with account statements or cancelled checks showing the payment of
any rebate amounts to the United States Treasury together with any applicable
IRS Form 8038-T; and
(vii) copies of all contracts and agreements of the City, including any
leases (the “Contracts”), with respect to the use of any property owned by the
City and acquired, constructed or otherwise financed or refinanced with the
proceeds of the Tax Advantaged Obligations effective at any time when such Tax
Advantaged Obligations are, will or have been outstanding. Copies of contracts
covering no more than 50 days of use and contracts related to City employees
need not be retained.
(e) IRS Examinations or Inquiries. In the event the IRS commences an
examination of any issue of Tax Advantaged Obligations or requests a response to a
compliance check, questionnaire or other inquiry, the Compliance Officer shall inform
the Council of such event, and is authorized to respond to inquiries of the IRS, and to hire
outside, independent professional counsel to assist in the response to the examination or
inquiry.
(f) Annual Review. The Compliance Officer shall conduct an annual review of
the Contracts and other records to determine for each issue of Tax Advantaged
Obligations then outstanding whether each such issue complies with the federal tax
requirements applicable to such issue, including restrictions on private business use,
private payments and private loans. The Compliance Officer is expressly authorized,
without further official action of the Council, to hire outside, independent professional
counsel to assist in such review. To the extent that any violations or potential violations
of federal tax requirements are discovered incidental to such review, the Compliance
Officer may make recommendations or take such actions as the Compliance Officer shall
reasonably deem necessary to assure the timely correction of such violations or potential
violations through remedial actions described in the United States Treasury Regulations,
or the Tax Exempt Bonds Voluntary Closing Agreement Program described in Treasury
Notice 2008-31 or similar program instituted by the IRS.
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(g) Training. The Compliance Officer shall undertake to maintain reasonable
levels of knowledge concerning the rules related to tax-exempt bonds (and build America
bonds and tax credit bonds to the extent the City has outstanding build America bonds or
tax-credit bonds) so that such officer may fulfill the duties described in this Section. The
Compliance Officer may consult with counsel, attend conferences and presentations of
trade groups, read materials posted on various web sites, including the web site of the
Tax Exempt Bond function of the IRS, and use other means to maintain such knowledge.
Recognizing that the Compliance Officer may not be fully knowledgeable in this area, the
Compliance Officer may consult with outside counsel, consultants and experts to assist
him or her in exercising his or her duties hereunder. The Compliance Officer will
endeavor to make sure that the City’s staff is aware of the need for continuing
compliance. The Compliance Officer will provide copies of this Ordinance and the Tax
Exemption Certificate and Agreement or other applicable tax documents for each series
of Tax Advantaged Obligations then currently outstanding (the “Tax Agreements”) to
staff members who may be responsible for taking actions described in such documents.
The Compliance Officer should assist in the education of any new Compliance Officer
and the transition of the duties under these procedures. The Compliance Officer will
review this Ordinance and each of the Tax Agreements periodically to determine if there
are portions that need further explanation and, if so, will attempt to obtain such
explanation from counsel or from other experts, consultants or staff.
(h) Amendment and Waiver. The procedures described in this Section are only
for the benefit of the City. No other person (including an owner of a Tax Advantaged
Obligation) may rely on the procedures included in this Section. The City may amend
this Section and any provision of this Section may be waived, without the consent of the
holders of any Tax Advantaged Obligations and as authorized by passage of an ordinance
by the Council. Additional procedures may be required for Tax Advantaged Obligations
the proceeds of which are used for purposes other than capital governmentally owned
projects or refundings of such, including tax increment financing bonds, bonds financing
output facilities, bonds financing working capital, or private activity bonds. The City
also recognizes that these procedures may need to be revised in the event the City enters
into any derivative products with respect to its Tax Advantaged Obligations.
Section 18. Defeasance. Any Bond or Bonds which (a) are paid and cancelled,
(b) which have matured and for which sufficient sums been deposited with the Bond Registrar to
pay all principal and interest due thereon, or (c) for which sufficient (i) full faith and credit
obligations of the United States, the timely payment of which are guaranteed by the United
States Treasury, (ii) certificates of participation in a trust comprised solely of full faith and credit
obligations of the United States, or (iii) cash, have been deposited with the Bond Registrar or
similar institution to pay, taking into account investment earnings on such obligations, all
85
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principal of and interest on such Bond or Bonds when due at maturity or as called for
redemption, pursuant to an irrevocable escrow or trust agreement, shall cease to have any lien on
or right to receive or be paid from the Pledged Taxes and shall no longer have the benefits of any
covenant for the registered owners of outstanding Bonds as set forth herein as such relates to lien
and security of the outstanding Bonds. All covenants relative to the tax-exempt status of the
Bonds; and payment, registration, transfer, and exchange; are expressly continued for all Bonds
whether outstanding Bonds or not.
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Section 19. Superseder and Effective Date. All ordinances, resolutions, and orders, or
parts thereof, in conflict herewith, are to the extent of such conflict hereby superseded, including
expressly Ordinance No. 2013-070 to the extent necessary for the Bonds to be payable from a
direct annual ad valorem tax levied against all taxable property in the City, without limitation as
to rate or amount; and this Ordinance shall be in full force and effect immediately upon its
passage and approval.
ADOPTED: August 3, 2015
AYES: _________________________________________________________
_________________________________________________________
NAYS: _________________________________________________________
ABSENT: _________________________________________________________
Approved: August 3, 2015
_______________________________________
Mayor, City of Lake Forest,
Lake County, Illinois
ATTEST:
__________________________________
City Clerk, City of Lake Forest,
Lake County, Illinois
Recorded in the City Records on August 3, 2015.
87
STATE OF ILLINOIS )
) SS
COUNTY OF LAKE )
CERTIFICATION OF ORDINANCE AND MINUTES
I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of
the City of Lake Forest, Lake County, Illinois (the “City”), and as such official I am the keeper
of the records and files of the City Council of the City (the “Council”).
I do further certify that the foregoing constitutes a full, true and complete transcript of the
minutes of the meeting of the Council held on the 3rd day of August, 2015, insofar as same
relates to the adoption of Ordinance No. _____ entitled:
AN ORDINANCE providing for the issuance of $10,000,000 General
Obligation Bonds, Series 2015, of the City of Lake Forest, Lake
County, Illinois, for the purpose of financing certain capital
improvements within the City, providing for the levy and
collection of a direct annual tax sufficient to pay the principal and
interest on said bonds, and authorizing the sale of said bonds to
_________.
a true, correct and complete copy of which said ordinance as adopted at said meeting appears in
the foregoing transcript of the minutes of said meeting.
I do further certify that the deliberations of the Council on the adoption of said ordinance
were conducted openly, that the vote on the adoption of said ordinance was taken openly, that
said meeting was held at a specified time and place convenient to the public, that notice of said
meeting was duly given to all of the news media requesting such notice, that an agenda for said
meeting was posted at the location where said meeting was held and at the principal office of the
Council at least 72 hours in advance of the holding of said meeting, that at least one copy of said
agenda was continuously available for public review during the entire 72-hour period preceding
said meeting, that said agenda contained a separate specific item concerning the proposed
adoption of said ordinance, a true, correct and complete copy of the agenda as so posted being
attached hereto as Exhibit A, that said meeting was called and held in strict compliance with the
provisions the Open Meetings Act of the State of Illinois, as amended, and with the provisions of
the Illinois Municipal Code, as amended, and that the Council has complied with all of the
applicable provisions of said Act and said Code and its procedural rules in the adoption of said
ordinance.
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IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of the City, this
3rd day of August, 2015.
_______________________________________
City Clerk
[SEAL]
89
STATE OF ILLINOIS )
) SS
COUNTY OF LAKE )
FILING CERTIFICATE
I, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk
of The County of Lake, Illinois, and as such official I do further certify that on the ____ day of
August, 2015, there was filed in my office a duly certified copy of Ordinance No. _____ entitled:
AN ORDINANCE providing for the issuance of $10,000,000 General
Obligation Bonds, Series 2015, of the City of Lake Forest, Lake
County, Illinois, for the purpose of financing certain capital
improvements within the City, providing for the levy and
collection of a direct annual tax sufficient to pay the principal and
interest on said bonds, and authorizing the sale of said bonds to
_________.
duly adopted by the City Council of the City of Lake Forest, Lake County, Illinois, on the 3rd
day of August, 2015, and approved by the Mayor, and that the same has been deposited in (and
all as appearing from) the official files and records of my office.
IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of said County,
this ____ day of August, 2015.
_______________________________________
County Clerk of The County of Lake, Illinois
[SEAL]
90
STATE OF ILLINOIS )
) SS
COUNTY OF LAKE )
CERTIFICATE OF PUBLICATION IN PAMPHLET FORM
I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of
the City of Lake Forest, Lake County, Illinois (the “City”), and as such official I am the keeper
of the official journal of proceedings, books, records, minutes and files of the City and of the
City Council (the “Council”) of the City.
I do further certify that on the ____ day of August, 2015 there was published in pamphlet
form, by authority of the Council, a true, correct, and complete copy of Ordinance
____________ of the City entitled:
AN ORDINANCE providing for the issuance of $10,000,000 General
Obligation Bonds, Series 2015, of the City of Lake Forest, Lake
County, Illinois, for the purpose of financing certain capital
improvements within the City, providing for the levy and
collection of a direct annual tax sufficient to pay the principal and
interest on said bonds, and authorizing the sale of said bonds to
_________.
and providing for the issuance of said bonds, and that the ordinance as so published was on that
date readily available for public inspection and distribution, in sufficient number so as to meet
the needs of the general public, at my office as City Clerk located in the City.
IN WITNESS WHEREOF, I have affixed hereto my official signature and the seal of the City
this ____ day of August, 2015.
_______________________________________
City Clerk
[SEAL]
91
EXTRACT OF MINUTES of a regular public meeting of the City
Council of the City of Lake Forest, Lake County, Illinois, held at
City Hall, Lake Forest, Illinois, at 6:30 p.m., on the 20th day of
July, 2015.
The Mayor called the meeting to order and directed the City Clerk to call the roll. Upon
the roll being called, Donald P. Schoenheider, the Mayor, and the following Aldermen were
physically present at said location: __________________________________________________
______________________________________________________________________________
______________________________________________________________________________
The following Aldermen were allowed by a majority of the members of the City Council
in accordance with and to the extent allowed by rules adopted by the City Council to attend the
meeting by video or audio conference: _______________________________________________
______________________________________________________________________________
No Alderman was not permitted to attend the meeting by video or audio conference.
The following Aldermen were absent and did not participate in the meeting in any
manner or to any extent whatsoever: ________________________________________________
The Mayor announced that the City Council is considering issuing general obligation
bonds pursuant to its home rule powers for the purpose of financing certain capital improvements
within the City, and that the City Council would consider the adoption of an ordinance providing
for the issue of said bonds and the levy of a direct annual tax sufficient to pay the principal and
interest thereon. The Mayor also summarized the pertinent terms of said proposal and said
bonds, including the length of maturity, rates of interest, purchase price and tax levy for said
bonds.
WHEREUPON, Alderman _____________ moved and Alderman ______________
seconded the motion that there be introduced for first reading an ordinance entitled:
92
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AN ORDINANCE providing for the issuance of approximately
$10,000,000 General Obligation Bonds, Series 2015, of the City of
Lake Forest, Lake County, Illinois, for the purpose of financing
certain capital improvements within the City, providing for the
levy and collection of a direct annual tax sufficient to pay the
principal and interest on said bonds, and authorizing the sale of
said bonds to the purchaser thereof.
(the “Bond Ordinance”).
Thereupon the Mayor directed that the roll be called for a vote upon the motion to
introduce the Bond Ordinance for first reading.
Upon the roll being called, the following Aldermen voted:
AYE: ___________________________________________________________________
___________________________________________________________________
NAY: ___________________________________________________________________
ABSENT: ___________________________________________________________________
Whereupon the Mayor declared the motion carried and did direct the City Clerk to record
the same in full in the records of the City Council, which was thereupon done.
Other business not pertinent to the adoption of said ordinance was duly transacted at said
meeting.
Upon motion duly made and seconded, the meeting was adjourned.
____________________________________
City Clerk
93
STATE OF ILLINOIS )
) SS
COUNTY OF LAKE )
CERTIFICATION OF INTRODUCTION OF ORDINANCE AND MINUTES
I, the undersigned, do hereby certify that I am the duly qualified and City Clerk of the
City of Lake Forest, Lake County, Illinois (the “City”), and as such officer I am the keeper of
the books, records, files, and journal of proceedings of the City and of the City Council (the
“Council”) of the City.
I do further certify that the foregoing constitutes a full, true and complete transcript of the
minutes of the legally convened meeting of the Council held on the 20th day of July, 2015,
insofar as same relates to the introduction for first reading of an ordinance entitled:
AN ORDINANCE providing for the issuance of approximately
$10,000,000 General Obligation Bonds, Series 2015, of the City of
Lake Forest, Lake County, Illinois, for the purpose of financing
certain capital improvements within the City, providing for the
levy and collection of a direct annual tax sufficient to pay the
principal and interest on said bonds, and authorizing the sale of
said bonds to the purchaser thereof.
a true, correct and complete copy of which said ordinance as introduced at said meeting appears
in the foregoing transcript of the minutes of said meeting.
I do further certify that the deliberations of the Council on the introduction of said
ordinance were taken openly, that the vote on the introduction of said ordinance was taken
openly, that said meeting was held at a specified time and place convenient to the public, that
notice of said meeting was duly given to all of the news media requesting such notice of said
meeting was duly given to all of the news media requesting such notice; that an agenda for said
meeting was posted at the location where said meeting was held and at the principal office of the
Council at least 72 hours in advance of the holding of said meeting, that at least one copy of said
agenda was continuously available for public review during the entire 72-hour period preceding
said meeting, that said agenda contained a separate specific item concerning the proposed
adoption of said ordinance, a true, correct and complete copy of the agenda as so posted being
attached hereto as Exhibit A, that said meeting was called and held in strict compliance with the
provisions the Open Meetings Act of the State of Illinois, as amended, and with the provisions of
the Illinois Municipal Code, as amended, and that the Council has complied with all of the
applicable provisions of said Act and said Code and its procedural rules in the introduction of
said ordinance.
94
-2-
IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of the
City, this 20th day of July, 2015.
____________________________________
City Clerk
[SEAL]
95
THE CITY OF LAKE FOREST
ORDINANCE NO. 15-___
AN ORDINANCE PROPOSING THE ESTABLISHMENT
OF THE LAKE FOREST SPECIAL SERVICE AREA NO. 40
(REGENCY LANE AREA SANITARY IMPROVEMENT PROJECT)
WHEREAS, various residents ("Petitioners") of The City of Lake Forest,
Lake County, Illinois (“City”) have filed petitions with the City requesting the
establishment of a special service area for sanitary sewer services; and
WHEREAS, the City desires to establish Special Service Area No. 40 to
improve sanitary sewer service for the area legally described in Exhibit A attached to and,
by this reference, made a part of this Ordinance ("SSA No. 40”), as authorized pursuant to
35 ILCS 200/27-5, et seq. (“SSA Law”); and
WHEREAS, the City Council of the City has determined that it is in the best
interest of the residents of SSA No. 40 and the City to conduct a public hearing pursuant to
the SSA Law to consider the establishment of SSA No. 40 for the purpose of improving
sanitary sewer service;
NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF LAKE FOREST, COUNTY OF LAKE, STATE OF ILLINOIS, as follows:
SECTION ONE: Recitals. The foregoing recitals are incorporated
herein as if fully set forth.
SECTION TWO: Findings.
(a) Pursuant to Section 27-20 of the SSA Law, the Petitioners have filed
petitions with the City requesting that the City establish the proposed SSA No. 40.
96
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(b) It is in the public interest that the Mayor and City Council consider
the establishment of the proposed SSA No. 40.
(c) The properties within the proposed SSA No. 40 are contiguous as
required by the SSA Law and as depicted on the map of the proposed SSA No. 40 attached
as Exhibit B and, by this reference, made a part of this Ordinance.
(d) The proposed sanitary sewer improvements will provide properties
within the proposed SSA No. 40 with a safer and more adequate, efficient, and appropriate
system for disposing of and treating sanitary sewage.
SECTION THREE: Proposal. In its determination of the need to promote
the public health, safety, and welfare of the City and its residents, the City Council of the
City hereby proposes the establishment of SSA No. 40 in order to provide services in the
nature of improving sanitary sewer service.
SECTION FOUR: Public Hearing. Pursuant to the SSA Law, a public
hearing shall be held on August 17, 2015, at 6:00 p.m., in the City Council Chambers of the
Lake Forest City Hall, 220 Deerpath Road, Lake Forest, Illinois, to consider establishment
of SSA No. 40. At the hearing, the City will consider the imposition or levy by the City of a
tax in the proposed SSA No. 40 sufficient to produce revenues to provide special municipal
services to the proposed SSA No. 40. The maximum rate of such taxes to be extended in
any year for special services under this Ordinance within the proposed SSA No. 40 shall not
exceed the amount necessary to produce total revenues of $58,900.00. As requested by the
Petitioners, it is proposed that this tax shall be levied equally upon each developable lot
within the proposed SSA No. 40 pursuant to a special tax roll.
SECTION FIVE: Notice of Hearing. The City Council hereby ratifies
the publication of notice of the public hearing at least 15 days prior to the date scheduled
97
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for the commencement of the public hearing in the Lake County News Sun, a newspaper of
general circulation within the City (“Notice”). In addition, notice will be given to the
persons in whose name the general taxes for the last preceding year were paid on the
property located within SSA No. 40 by United States mail not less than 10 days prior to the
time set for public hearing in the manner required by the SSA Law.
SECTION FIVE: Objections. If a petition signed by at least 51 percent
of the electors residing within the proposed SSA No. 40 and at least 51 percent of the
owners of record of property within the proposed SSA No. 40 is filed with the City Clerk
within sixty days following the adjournment of the public hearing, objecting to the
establishment of SSA No. 40, then SSA No. 40 shall not be established.
SECTION SIX: Effective Date. This Ordinance shall be in full force and
effect upon its passage, approval, and publication in pamphlet form in the manner provided
by law.
PASSED this ___ day of August, 2015.
AYES:
NAYS:
ABSENT:
ABSTAIN:
APPROVED this ____ day of August, 2015.
______________________________ Mayor ATTEST:
______________________________________ City Clerk
98
Exhibit A
EXHIBIT A
LEGAL DESCRIPTION OF SSA NO. 40
THAT PART OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF
SECTION 19 AND THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF
SECTION 30, TOWNSHIP 44 NORTH, RANGE 12 EAST OF THE THIRD PRINCIPAL
MERIDIAN, CITY OF LAKE FOREST, LAKE COUNTY, ILLINOIS DESCRIBED AS
FOLLOWS:
BEGINNING AT THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE
SOUTHWEST QUARTER OF SECTION 19, THENCE NORTH ALONG THE WEST LINE
OF THE SAID SOUTHEAST QUARTER OF THE SAID SOUTHWEST QUARTER 33 FEET,
THENCE EAST PARALLEL WITH AND 33.00 FEET NORTH OF THE SOUTH LINE OF
THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 19, 438.31
FEET; THENCE NORTH PARALLEL WITH THE WEST LINE OF THE SOUTHEAST
QUARTER OF THE SOUTHWEST QUARTER OF SECTION 19, 496.90 FEET; TO A POINT
438.31 FEET EAST OF AFORESAID WEST LINE OF THE SOUTHEAST QUARTER OF
THE SOUTHWEST QUARTER OF SECTION 19; THENCE EAST PARALLEL WITH SAID
SOUTH LINE OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF
SECTION 19, 767.00 FEET, MORE OR LESS, TO A POINT ON A LINE PARALLEL TO
AND 109.90 FEET WEST OF THE EAST LINE OF SAID SOUTHEAST QUARTER OF THE
SOUTHWEST QUARTER OF SECTION 19; THENCE SOUTH ALONG SAID PARALLEL
LINE 529.90 FEET TO A POINT ON THE SOUTH LINE OF THE SOUTHEAST QUARTER
OF THE SOUTHWEST QUARTER OF SECTION 19, 767.80 FEET, MORE OR LESS, FROM
THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE SOUTHWEST
QUARTER OF SECTION 19;
THENCE 109.90 FEET EAST ALONG THE SOUTH LINE OF THE SOUTHEAST QUARTER
OF THE SOUTHWEST QUARTER OF SECTION 19 TO THE NORTH AND SOUTH
QUARTER SECTION LINE OF SECTION 19, THENCE 123.3 FEET EAST ALONG THE
SOUTH LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF
SECTION 19, THENCE N 00°01’27” W ALONG THE WEST LINE OF LOT 4 OF O’LEARY
ESTATES SUBDIVISION 203.80 FEET, THENCE EAST PARALLEL WITH THE SOUTH
LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION
19 TO THE EAST LINE OF SAID LOT 4. THENCE NORTH ALONG SAID EAST LINE
140.25 FEET TO THE NORTHWEST CORNER OF LOT 2 OF O’LEARY ESTATES
SUBDIVISION, THENCE EAST ALONG THE NORTH LINE OF SAID LOT 2, 400.61 FEET
TO THE WEST RIGHT-OF-WAY LINE OF WAUKEGAN ROAD (ROUTE 43). THENCE
SOUTHEASTERLY ALONG THE WEST RIGHT-OF-WAY OF WAUKEGAN ROAD TO
THE SOUTH LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER
OF SECTION 19, THENCE EAST ALONG SAID SOUTH LINE TO A POINT ON THE WEST
RIGHT-OF-WAY OF WAUKEGAN ROAD 33 FEET FROM THE CENTERLINE OF THE
SAID RIGHT-OF-WAY;
THENCE SOUTHEASTERLY ALONG THE WEST RIGHT-OF-WAY OF WAUKEGAN
ROAD TO A POINT ON A LINE PARALLEL TO AND 252 FEET SOUTH OF THE NORTH
LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION
30, THENCE WEST ALONG A LINE PARALLEL WITH THE NORTH LINE OF SAID
NORTHEAST QUARTER, 17.5 FEET, MORE OR LESS, TO A POINT ON A LINE 50 FEET
99
WEST FROM THE CENTERLINE OF THE RIGHT-OF-WAY OF WAUKEGAN ROAD.
THENCE SOUTH ALONG THE WEST RIGHT-OF-WAY OF WAUKEGAN ROAD TO A
POINT ON A LINE PARALLEL TO AND 964.84 FEET SOUTH OF THE NORTH LINE OF
THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 30,
THENCE WEST ALONG SAID PARALLEL LINE 647.91 FEET TO A POINT ON THE
NORTH LINE OF LOT 3 OF THE MACKENZIE SUBDIVISION 360 FEET EAST OF THE
NORTHWEST CORNER OF SAID LOT 3, THENCE ALONG A STRAIGHT LINE
SOUTHEASTERLY 178.95 FEET, MORE OR LESS, TO A POINT ON A LINE PARALLEL
TO AND 80.00 FEET SOUTH OF THE NORTH LINE OF SAID LOT 3, THENCE WEST
ALONG A LINE PARALLEL TO AND 80 FEET SOUTH OF THE NORTH LINE OF LOT 3,
200 FEET, THENCE NORTH ALONG A LINE 89.00 FEET EAST OF AND PARALLEL TO
THE WEST LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF
SECTION 30 683.56 FEET, THENCE WEST 1404.00 FEET, MORE OR LESS ALONG A
LINE 360.96 FEET SOUTH OF AND PARALLEL TO THE NORTH LINE OF THE
NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 30 TO A POINT
ON THE WEST LINE OF THE NORTHEAST QUARTER OF THE NORTHWEST QUARTER
OF SECTION 30. THENCE NORTH ALONG THE WEST LINE OF THE NORTHEAST
QUARTER OF THE NORTHWEST QUARTER OF SECTION 30, 360.96 FEET TO THE
POINT OF BEGINNING.
commonly known as 1100 – 1200 Regency Lane, 1500 – 1590 Waukegan Road, and 0 Waukegan Road,
all in Lake Forest, Illinois, and further identified by the following property tax index numbers (PINs): 12-
30-201-002, 12-30-201-003, 12-30-201-004, 12-19-300-002, 12-19-405-003, 12-19-405-005, 12-19-405-
006, 12-30-100-003, 12-30-200-001, 12-30-200-003, 12-30-201-005, 12-30-201-014, 12-30-201-018, and
12-30-201-019
100
Exhibit B
EXHIBIT B
MAP OF PROPOSED SSA NO. 40
101
N WAUKEGAN RD
KNOLLWOOD RD
REGENCY LN
WINWOOD DR
W KESWICK LN KNOLLWOOD LN N WAUKEGAN RD
1404
1700
1396
1570
1590
1890
1400
1400
1500
1402
1380
1590
13801380
1696
1150
1700
1500
183418541844
1100
1266
1890
1100
1540
1700
1504
1826
1200 1552
1502
1160
1801
1760
1050
1830
1262
1742
1720
1088
1566
1350
1210 108012001264
975
12751270
1500
110611341240115411901220
1298
1404
1300
1404
1570
1300
1300
1300
1400
1300
µ
REGENCY LANESANITARY SEWERSPECIAL SERVICEAREA #40
102
Jan Marsden-Johnson
1566 N. Waukegan Road
Lake Forest IL, 60045
847-815-9620
To: City Manager
City of Lake Forest
220. E. Deerpath,
Lake Forest, IL 60045
6/30/2015
I am writing this letter to the City of Lake Forest, as the Initiation letter for the formation of an SSA. Jan
Marsden-Johnson is the lead volunteer in the SSA formation process to install sanitary and storm sewers
in the Regency Lane neighborhood of Lake Forest. My address, and phone contact are provided above.
I am a home owner, and registered voter in Lake Forest/Lake County.
This request is made for the city of Lake Forest to provide needed infrastructure services to the
neighborhood (15 lots) surrounding Regency Lane. The two projects that are to be provided are:
1. Sanitary sewer
2. Storm sewer
The projects are limited to the 15 lots shown on the map (provided by the city).
If additional information is required, please feel free to contact me via cell phone 847-815-9620, or by
email janmj13@comcast.net
Thanks very much!
Jan Marsden-Johnson
Jan Marsden-Johnson
103
The City of Lake Forest
CITY COUNCIL
Proceedings of the Monday, July 20, 2015
City Council Meeting - City Council Chambers
CALL TO ORDER AND ROLL CALL: Honorable Mayor Schoenheider called the meeting to order at
pm, and Deputy City Clerk Margaret Boyer called the roll of Council members.
Present: Honorable Mayor Schoenheider, Alderman Waldeck, Alderman Beidler, Alderman
Pandaleon, Alderman Newman, Alderman Tack, Alderman Reisenberg, Alderman Moreno and
Alderman Adelman.
Absent:
Also present were: Robert Kiely, City Manager; Elizabeth Holleb, Finance Director; Victor Filippini,
City Attorney; Catherine Czerniak, Director of Community Development; Susan Banks,
Communication Director; Sally Swarthout, Director of Parks & Recreation, Michael Thomas,
Director of Public Works; James Held, Chief of Police; Kevin Issel, Deputy Chief of Police; Mike
Strong, Assistant to the City Manager; Matt Havlik, Management Intern; Jim Lockefeer,
Management Intern and Anne Whipple.
There were approximately 25 present in the audience.
PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was recited by all in attendance.
REPORTS OF CITY OFFICERS
COMMENTS BY MAYOR
A. Swear in Firefighter Paramedic- Richard Brija
Mayor Schoenheider and Deputy Fire Chief Kevin Issel
Mayor Schoenheider introduced Deputy Chief Issel who presented Richard Brija to be sworn in by
the Mayor.
B. 2015-2016 Board and Commission Appointments/Reappointments
SENIOR RESOURCE COMMISSION
NAME OF MEMBER APPOINT/REAPPOINT WARD
Mary Jo Davis Appoint LB
COUNCIL ACTION: Approve the Mayors appointment
Alderman Beidler made a motion to approve the Mayors appointment, seconded by Alderman
Moreno. Motion carried unanimously by voice vote.
104
Proceedings of the July 20, 2015
Regular City Council Meeting
COMMENTS BY CITY MANAGER
A. Consideration of supporting the Mayor’s Endorsement of Lake County’s Letter to the Illinois
Tollway Board Directors in Support of the Route 53 Extension Project
City Manager Robert Kiely introduced Mike Rummel, Lake County Board Representative who gave
a brief history of Lake Forest’s relationship with the Route 53 Extension. Mr. Rummel introduced
Aaron Lawlor, Chairman Lake County Board and Barry Burton, Lake County Administrator. Mr.
Lawlor updated the City Council on the Feasibility Analysis, Funding Recommendations that
included State and Tollway System commitments.
Mayor Schoenheider asked if there was anyone from the public who would like to comment on
the topic. Dan Seabald of 560 Ivy Ct, Lake Forest offered his opinion to the Council.
Mary Matthews of 1111 S Waukegan Road, Lake Forest offered her opinion to the Council.
Seeing no one else from the public, Mayor Schoenheider asked for a motion.
COUNCIL ACTION: Approval of endorsing Lake County’s letter to be sent to the Illinois Tollway
Board Directors reaffirming The City of Lake Forest’s commitment to the advancing of the Route
53 Extension Project.
Alderman Reisenberg made a motion granting approval of endorsing Lake County’s letter to be
sent to the Illinois Tollway Board Directors reaffirming The City of Lake Forest’s commitment to
the advancing of the Route 53 Extension Project, seconded by Alderman Pandaleon. Motion
carried unanimously by voice vote.
B. Presentation of the Commonwealth Edison Annual Report
-Jim Dudek, External Affairs Director
City Manager Robert Kiely introduced External Affairs Director, Jim Dudek who gave an update to
the City Council on the annual reliability report, which included system improvements, planned
work and overall reliability. Mr. Dudek then introduced Mike McMahan, Mark Falcone and
Rommel Noguera. Mike McMahan reported on the ComEd Smart Meter Installation schedule. Mr.
McMahan also gave a demonstration using actual smart meters and reported on the radio
frequency that is associated with smart meters.
COMMENTS BY COUNCIL MEMBERS
FINANCE COMMITTEE
A. GFOA Certificate of Achievement for Excellence in Financial Reporting for FY13 CAFR
Finance Committee Chairman, Alderman Pandaleon reported that the City recently received
notification that it has once again been awarded the Government Finance Officers Association
Certificate of Achievement for Excellence in Financial Reporting for its FY14 comprehensive annual
financial report. The Certificate of Achievement is the highest form of recognition in the area of
governmental accounting and financial reporting, and its attainment is a significant
accomplishment by a government and its management. The GFOA is a nonprofit professional
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Regular City Council Meeting
association serving 17,500 government finance professionals in the United States and Canada.
The City has received this prestigious award for the 36th consecutive year.
An Award of Financial Reporting Achievement is presented by the GFOA to the individual
designated as instrumental in their government unit’s achievement of the Certificate, Diane Hall,
Assistant Finance Director, who serves as the primary liaison to the City’s independent audit firm,
coordinating the annual audit process and preparation of the City’s CAFR. Finance Committee
Chairman, Alderman Pandaleon then presented the award.
B. ***PUBLIC HEARING ON THE CITY’S ANNUAL APPROPRIATION ORDINANCE***
Open Public Hearing
Mayor Schoenheider
Close Public Hearing
Mayor Schoenheider opened the Public Hearing at 9:00 pm; the Mayor asked if there was anyone
who wanted to address the Council, seeing none, he closed the Public Hearing at 9:01pm
1. Consideration of the Annual Appropriation Ordinance for FY2016 and Approval of Rollovers
(Final Reading – Public Hearing Required)
Finance Director Elizabeth Holleb stated that this is a request approving the final reading of the
ordinance and the rollovers. Ms. Holleb stated that this is a driven by State statue and is a legal
mechanism holding staff to budgeted amounts.
Mayor Schoenheider asked if there any questions from the Council or if there was anyone from
the public wanting to comment, seeing none he asked for a motion.
COUNCIL ACTION: Conduct a public hearing on the City’s FY16 Annual Appropriations Ordinance.
Upon closing the public hearing, approval of the final reading of the ordinance and the rollovers.
A copy of the ordinance is available for review by the public in the City Clerk’s office.
Alderman Pandaleon made a motion to approve the final reading of the ordinance and the
rollovers, seconded by Alderman Reisenberg. The following voted “Yea”: Aldermen Waldeck,
Beidler, Pandaleon, Newman, Tack, Reisenberg, Adelman and Moreno. The following voted “Nay”:
None. 8 Yeas, 0 Nays, motion carried.
PERSONNEL, COMPENSATION and ADMINISTRATION COMMITTEE
A. Report and Recommendation from the Personnel, Compensation and
Administration Committee on the employment agreement with the City
Manager
Mayor Schoenheider asked the City Council if there were questions or comments, seeing none he
asked for a motion.
COUNCIL ACTION: Approve the Agreement with the City Manager
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Alderman Moreno made a motion to approve the agreement with the City Manager, seconded by
Alderman Beidler. The following voted “Yea”: Aldermen Waldeck, Beidler, Pandaleon, Newman,
Tack, Reisenberg, Adelman and Moreno. The following voted “Nay”: None. 8 Yeas, 0 Nays, motion
carried.
Mayor Schoenheider thanked City Manager Robert Kiely for his great work and leadership in the
community.
OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
None.
ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the June 29, 2015 Special City Council meeting Minutes
2. Approval of the July 6, 2015 City Council meeting Minutes
3. Award of Contract with Advanced Telecommunications of Illinois, Inc. to Purchase a
ShoreTel Telephone System and Implementation Services as Budgeted in FY16 Capital
Plan
4. Consideration of a Recommendation from the Plan Commission in Support of the
Tentative Plat for the Westleigh Farm Planned Preservation Subdivision Proposed for the
Southwest Corner of Route 60 and Ridge Road. (If desired by the Council, Approve a
Motion Granting Approval of the Tentative Plat of Subdivision.)
5. Consideration of an Ordinance Approving a Recommendation from the Building Review
Board. (First Reading and if Desired by the City Council, Final Approval)
6. Consideration of a Recommendation from the Zoning Board of Appeals in Support of an
Ordinance Granting a Zoning Variance. (First Reading, and if Desired by the City Council,
Final Approval)
7. Award of Bid for the Replacement of a Turf Sprayer for Deerpath Golf Course Included in
the F.Y. 2016 Capital Equipment Budget
8. Consideration of a recommendation from the City’s Owner’s Representative, Jacob &
Hefner Associates, to enter into a Contract for Demolition of Buildings and Excavation of
Impacted Soils from the Former Municipal Services Site Located at Western and Laurel
Avenues. (Approval of a Motion)
9. Ratification of City Manager’s Authorization to Waive the Bidding Process and Purchase
a Replacement Diesel Engine for Refuse Truck # 188
COUNCIL ACTION: Approve the nine (9) Omnibus items as presented.
Mayor Schoenheider asked members of the Council if they would like to remove any item or take
it separately. After discussion and with the following; (i) correcting a scriveners error in the 7/6/15
City Council minutes item #2 and (ii) modifying the action relating to item#4, the Westleigh farms
Planned Preservation Subdivision, to include an additional condition that the request must also
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receive a Special Use permit under the provisions of the Historic residential and Open Space
Preservation District, the Mayor asked for a motion to approve the nine Omnibus items.
Alderman Reisenberg made a motion to approve the Omnibus items as amended, seconded by
Alderman Newman. The following voted “Yea”: Aldermen Waldeck, Beidler, Pandaleon, Newman,
Tack, Reisenberg, Adelman and Moreno. The following voted “Nay”: None. 8 Yeas, 0 Nays, motion
carried.
Information such as Purpose and Action Requested, Background/Discussion, Budget/Fiscal Impact,
Recommended Action and a Staff Contact as it relates to the Omnibus items can be found on the agenda.
ORDINANCES
A. Consideration of an Ordinance Authorizing the Issuance of General Obligation Bonds, Series 2015 (First
Reading)
Finance Director, Elizabeth Holleb reported that this is first reading of the ordinance authorizing issuance of
2015 general obligation bonds. Ms. Holleb reported that the City’s Five-Year Capital Improvement Program
anticipates the issuance of bonds in Fiscal Year 2016 of approximately $4.8 million to fund capital
improvements in the City. The remaining bond proceeds will be used to support Tax Increment Financing
(TIF)-eligible improvements in the recently approved TIF district for redevelopment of the Laurel and
Western Avenue property. The TIF bond proceeds associated with this issue will reimburse costs associated
with property acquisition, site preparation, environmental mitigation and public works improvements, as
well as fund capitalized interest on the bonds.
The bond issue is currently estimated at $10,000,000 but is subject to change based on bids received to
ensure bank-qualified status of the issue. A rating review is scheduled to be conducted by Moody’s with
Finance Director Elizabeth Holleb on July 16. The interest rate on the bond issue will be determined at the
online bid auction scheduled for August 3. Debt service on the bond issue is scheduled through December
2035 and will be paid from the City’s property tax levy for debt and TIF increment.
The City Council had a discussion on the Bidding process.
Mayor Schoenheider asked for a motion.
COUNCIL ACTION: Approval of first reading of the bond ordinance (page 160). An online bid will occur on
Monday, August 3. At the August 3 City Council meeting, a final bond ordinance will be presented for
Council consideration for second reading and granting final approval.
Alderman Reisenberg made a motion for Approval of first reading of the bond ordinance, seconded by
Alderman Newman. The following voted “Yea”: Aldermen Waldeck, Beidler, Pandaleon, Newman,
Tack, Reisenberg, Adelman and Moreno. The following voted “Nay”: None. 8 Yeas, 0 Nays, motion
carried.
B. Consideration of an Ordinance Amending The City of Lake Forest Liquor Code, Section
111.037, Number of Licenses. (Waive first reading and if desired by the City Council, grant final
approval.)
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Deputy City Clerk, Margaret Boyer reported that the Ordinance before the Council is to
accommodate a request from Elawa Farms for a liquor license.
Mayor Schoenheider asked for a motion.
COUNCIL ACTION : Waive first reading of an ordinance amending section 111.037 of the City
Code increasing the number of liquor licenses by one and if desired by the City Council, grant
final approval.
Alderman Moreno made a motion to waive first reading of an ordinance amending section
111.037 of the City Code increasing the number of liquor licenses by one, seconded by Alderman
Newman. The following voted “Yea”: Aldermen Waldeck, Beidler, Pandaleon, Newman, Tack,
Reisenberg, Adelman and Moreno. The following voted “Nay”: None. 8 Yeas, 0 Nays, motion
carried.
ORDINANCES AFFECTING CODE AMENDMENTS .
In 2013 the City entered into an agreement with American Legal Publishing to review, edit and
compile current Ordinances. A draft copy of the Code and a list of questions were returned to the
City in early March 2014. At that time Staff had an opportunity to review sections. As a result,
Staff made two types of recommended changes, minor and substantive. Minor changes were
submitted when the Code was approved by Council in January, 2015. Staff is now bringing
recommended substantive changes that reflect the actions of the City.
A. Consideration of an Ordinance Amending Section 110.215 of the City Code, Landscape and
Lawn Care Professionals as Recommended by City Staff. (First and Final Approval)
Matt Havlik, Management Intern reported that Staff requests approval of an amendment to the
City Code pertaining to landscape license year period. Mr. Havlik reported that the amendment
would change landscape license year from March 1 through February 29 to January 1 through
December 31.
After a brief discussion with the Council , Mayor Schoenheider asked for motion.
COUNCIL ACTION: Approval of recommended changes to City Code relating to landscape
licensing year by waiving first reading and granting final approval of the attached Ordinance.
Alderman Moreno made a motion to waive first reading and grant approval of recommended
changes to City Code relating to landscape licensing year by waiving first reading and granting final
approval of the attached Ordinance, seconded by Alderman Newman. The following voted “Yea”:
Aldermen Waldeck, Beidler, Pandaleon, Newman, Tack, Reisenberg, Adelman and Moreno. The
following voted “Nay”: None. 8 Yeas, 0 Nays, motion carried.
NEW BUSINESS
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None
ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
None
ADJOURNMENT
There being no further business. Alderman Pandaleon made a motion to adjourn, seconded by
Alderman Reisenberg. Motion carried unanimously by voice vote at 9:20 p.m.
Respectfully Submitted,
Margaret Boyer
Deputy City Clerk
A video of the City Council meeting is available for viewing at the Lake Forest Library and on file in
the Clerk’s office at City Hall. You can also view it on the website by
visiting www.cityoflakeforest.com. Click on I Want To, then click on View, then choose Archived
Meetings Videos.
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The City of Lake Forest
CITY COUNCIL
Proceedings of the Special City Council Workshop, Monday, July 27, 2015
City Council Workshop- Municipal Services Building, 800 N Field Drive
Alderman Adelman made a motion to appoint Alderman Pandaleon as Acting Mayor, seconded by
Alderman Reisenberg.
CALL TO ORDER AND ROLL CALL: Acting Mayor Pandaleon called the meeting to order at 6:33 pm,
and Deputy City Clerk Margaret Boyer called the roll of Council members.
Present: Acting Chair Pandaleon, Alderman Waldeck, Alderman Beidler, Alderman Newman,
Alderman Tack, Alderman Reisenberg, Alderman Moreno and Alderman Adelman.
Absent: Honorable Mayor Schoenheider
Also present were: Elizabeth Holleb, Finance Director; Susan Banks, Communication Director;
Michael Thomas, Director of Public Works; Dan Martin, Superintendent of Public Works and Mike
Strong, Assistant to the City Manager.
There were approximately 7 present in the audience.
1. Water Plant
Plant Capacity (8, 11, 14 MGD)
a. Peak Shaving
b. Privatization
Discussion Summary: Director of Public Works Michael Thomas gave an overview of the Public
Works Committee and the City Council’s review of the Water Plant to date. After a lengthy
discussion with the City Council, Staff and Brian Hackman of Strand Associates, the City Council
gave direction to staff via consensus to prepare bids using specifications for options 3b and 3c for
Capacity Recommendations.
2. Privatization/Outsourcing
a. Methodology and Approach
Discussion Summary: City Manager Robert Kiely Jr., and Alderman Moreno reviewed The City of
Lake Forest’s current outsourcing, Alderman Moreno demonstrated a new perspective on the
methodology on privatization and outsourcing.
3. General Revenues/FY17 Budget Introduction
a. State Legislation Update
i. Property Tax Freeze
ii. Reduction in Local Government Distributive Fund (LGDF)
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Special City Council Workshop
Discussion Summary: City Manager Bob Kiely and Finance Director Elizabeth Holleb provided an
update on the current status of proposed and/or anticipated legislation that could impact the
City’s Fiscal Year 2017 budget.
b. Pension Funding Policy
Discussion Summary: Finance Director Elizabeth Holleb reviewed the proposed draft Pension
Funding Policy. After a lengthy discussion on the preliminary actuarial results, the City Council
gave direction to staff via consensus to draft the policy. The Pension Policy will be seen at the
August 3 City Council meeting.
4. Other Topics for Discussion
None.
Adjournment
There being no further business. Alderman Moreno made a motion to adjourn, seconded by
Alderman Adelman. Motion carried unanimously by voice vote at 9:07 p.m.
Respectfully Submitted,
Margaret Boyer
Deputy City Clerk
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The City of Lake Forest
FY2016 Vendor Approvals - Revised August 2015
Approved Approved Approved Approved Proposed
Department Vendor FY2012 FY2013 FY2014 FY2015 FY2016 Description:
PW-Streets Peter Baker & Son 30,000 55,000 55,000 Asphalt patching
City Manager Susan Kelsey 31,800 31,800 50,000 50,000 50,000 Professional Services - economic development
Human Resources Wright Benefit Strategies, Inc.33,000 33,000 30,000 30,000 30,000 Professional Services - employee benefits
Human Resources Clark Baird Smith 30,000 40,000 50,000 50,000 Professional Services - legal
Police Smith & LaLuzerne 46,000 46,000 55,000 55,000 50,000 Professional Services - City Prosecutor
Finance-IT ClientFirst Consulting 90,000 155,500 65,360 65,000 90,000 Professional Services - IT Consulting
Finance-IT Katten Muchin Zavis Rosenman 25,000 Bond Counsel Services
Finance-IT Speer Financial 25,000 25,000 Financial Advisory Services
City Manager Municipal GIS Partners, Inc.177,034 206,583 164,000 184,066 190,379 Professional Services - GIS Consortium
City Manager Whipple Consulting 36,000 36,000 36,000 36,000 36,000 Professional Services - public relations
PW-Engineering Gewalt-Hamilton Assoc 24,000 44,000 40,000 Professional Services - engineering consulting
City Manager Filippini Law Firm 340,000 Professional Services - legal
City Manager Lake County Press 25,000 Dialogue Publication
Community Dev.Thompson Elevator Inspection 24,700 25,000 Professional Services - elevator inspections
PW-Engineering T. Y. Lin International, Inc.80,000 80,000 Professional Services - engineering consulting
Non-Department North Shore Gas Company 40,000 45,000 45,000 Utility Services
Non-Department ComEd 52,000 60,000 75,000 Utility Services
PW-Fleet Bell Fuels Inc.50,000 50,000 Fuel supplier
PW-Sanitation Zion Landfill 300,000 300,000 Refuse disposal
Non-Department AT&T 54,000 60,000 55,000 Utility Services
Human Resources IL Dept of Employment Security 60,000 60,000 60,000 Unemployment insurance
Non-Department Integrys Energy Services 423,000 450,000 425,000 Utility Services
PW-Engineering H W Lochner Inc.88,000 88,000 Professional Services - engineering consulting
Miscellaneous Conserv FS 117,000 90,000 Fuel, fertilizer, herbicide, pesticide
PW-Fleet World Fuel Services, Inc.124,000 124,000 Fuel supplier
PW-Engineering HDR Engineering, Inc.550,000 Professional Services - engineering consulting
PW-Engineering Ayres Associates, Inc.75,433 42,883 GIS Data Provider
PW-Engineering Baxter & Woodman 20,000 Engineering Consulting
PW-Engineering ESRI 36,610 Software licensing
Human Resources IRMA 1,050,000 1,300,000 1,300,000 Member Contribution and Deductibles
Human Resources Morrison Associates 20,000 Employee Development/Training
Parks/Recreation NSSRA 225,000 235,000 245,000 Special Recreation Expenses
Parks/Recreation Richard Franklin 125,000 210,000 210,000 Independent contractor - golf instruction
PW-Fleet Al Warren Oil Company, Inc 233,000 300,000 250,000 Fuel supplier
Finance-IT HTE Sungard 65,000 65,000 Software maintenance/licensing - sole source
Finance-IT Siemens/Unify Inc.32,000 30,000 Phone system support
Community Dev.Lynch Construction 30,000 Community entrance signs
Finance-IT InterDev 40,000 IT Consulting Services
PW-Fleet Gas Depot, Inc 150,000 Fuel supplier
Submitted for City Council consideration: August 3, 2015 113
DRAFT – City Council 8/3/15
City of Lake Forest, Illinois
Pension Funding Policy
I. Introduction
The purpose of this policy statement is to define the manner in which the City of Lake
Forest, Illinois funds the long-term costs of benefits promised to plan participants and
defines the calculation of Lake Forest’s “annual required contribution” (ARC) to its
pension funds.
II. Background and Scope
The financial objective of a defined benefit pension plan is to fund the long-term cost
of benefits provided to the plan participants. In order to assure that the plan is
financially sustainable, the plan should accumulate adequate resources in a systematic
and disciplined manner over the active service life of benefiting employees.
This Pension Funding Policy applies to the pension funds in which employees of the
City of Lake Forest are enrolled. The specific funds covered by this policy include:
Lake Forest Fire Pension Fund
Lake Forest Police Pension Fund
Illinois Municipal Retirement Fund (IMRF)
III. Objectives
a. Actuarially Determined Contributions - Ensure pension funding plans are
based on actuarially determined annual required contributions (ARC) that
incorporate both the cost of current benefits and the amortization of the plan’s
unfunded actuarial accrued liability.
b. Funding Discipline – A commitment to make timely contributions to the pension
funds to ensure that sufficient assets will be available to pay benefits as promised.
c. Intergenerational Equity – Annual contributions should be reasonably related to
the expected and actual cost of each year of service so that the cost of employee
benefits is borne by the generation of taxpayers who receive services from those
employees.
d. Contributions as a Stable Percentage of Payroll – Manage contributions so that
employer costs remain consistent as a percentage of payroll over time.
e. Accountability and Transparency – Clear reporting of pension funding to
include an assessment of how and when the City will ensure sufficient assets will
be available to pay benefits as promised.
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IV. Ethics and Conflicts of Interest
Officers and employees involved in the pension funding process shall refrain from
personal business activity that could potentially conflict (or appear to conflict) with
the proper execution and management of the pension funding program or that could
impair their ability to make impartial decisions.
V. Annual Required Contribution
The City of Lake Forest will determine its Annual Required Contribution (ARC)
using the following principles:
The ARC will be calculated by an enrolled actuary.
The ARC will include the normal cost for current service and amortization to
account for any under or over-funded amount.
Police and Fire Pension Funds:
o The normal cost will be calculated for the police and fire pension
funds using the entry age normal level of percentage of payroll
actuarial cost method using the following assumptions:
o Investment rate of assumption – 7.0% per year
o Salary increase assumption – 5.5% per year
o Non-economic assumptions such as rates of separation, disability,
retirement, and mortality shall be determined by City management in
consultation with the actuary to reflect current experience.
o The difference between the accrued liability and actuarial value of
assets will be amortized to achieve 100% funding in 2040 based upon
a level percentage of payroll.
o Actuarial assets will be determined using a five-year average market
valuation.
Illinois Municipal Retirement Fund:
o The normal cost calculation, actuarial assumptions, amortization
period and valuation of actuarial assets shall be determined by IMRF.
The City will make its actuarially determined contribution to the Police and Fire
pension funds as property tax collections are receipted. Contributions will be made to
IMRF on a monthly basis.
VI. Reporting
Funding of the Lake Forest pension funds shall be transparent to vested parties
including plan participants, annuitants, pension board trustees, the City Council and
Lake Forest residents. To achieve transparency, the following data shall be
distributed:
A copy of the annual actuarial valuation shall be made available to the City
Council and applicable Board of Trustees.
The City’s annual budget shall include the City’s contribution to the City
pension funds.
The City’s Comprehensive Annual Financial Report (CAFR) shall be
published on its web site. In this report, the City will make all required
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DRAFT – City Council 8/3/15
disclosures in accordance with Governmental Accounting Standards Board
(GASB) guidelines.
VII. Future Amendments
Funding a defined benefit pension plan requires a long-term horizon. Assumptions
and inputs into the policy should focus on long-term trends, not year-to-year shifts in
the economic or non-economic environment. The City will review this policy at least
every five years to determine if changes to this policy are needed to ensure adequate
resources are being accumulated. The City reserves the right to make changes to this
policy at any time if it is deemed appropriate.
VIII. Effective Date
This policy shall be effective immediately upon approval by the City Council.
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July 23, 2015
Mr. Joe Gabanski
Assistant Director of Technology
City of Lake Forest
800 North Field Drive
Lake Forest, IL 60045
Dear Joe,
I have reviewed the proposals submitted to the City for the following services:
• SIP (Session Initiated Protocol) service for the City’s new telephone system.
• (114) POTs (Plain Old Telephone) lines
Specifications for the SIP service and detailed information about the POTs lines were
issued to 9 companies.
SIP Services
The City of Lake Forest has two (2) ISDN PRI circuits for its incoming and outgoing
telephone calls. It also has 114 POTS (Plain Old Telephone Service) lines miscellaneous
fax, alarm and emergency back-up services.
CallOne currently provide these services.
Proposals for the services were received from:
• AT&T (SIP service and POTs)
• Access One (SIP service and POTs)
• CallOne (SIP service and POTs)
• CenturyLink (SIP service)
• First Communications (SIP service)
• IntelePeer (SIP service)
• Level 3 (SIP service)
• Netrix (SIP service)
• XO (SIP service)
The proposals from First Communications, IntelePeer and Netrix were unresponsive.
Only the AT&T, Access One and CallOne provided pricing for the City’s POTs lines.
This is consistent with the fact that the demand for this type of service has diminished
dramatically over the last 10 years. The underlying service is provided and maintained
by AT&T and that any offering by another company is essentially a resale of their service
based on a discount agreement with AT&T. The tariffed (non-discounted) rate for POTS
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service is now in excess of $50/line. At tariffed rates the City’s bill for these services
would be approximately $68,400.
The prices (exclusive of taxes and other regulatory fees) submitted for these services
were:
SIP Service (annual cost)
Vendor Annual Cost
Access One $20,005
XO $30,557
CallOne $32,119
AT&T $33,360
Level 3 $35,130
Century Link $36,899
POTS Lines (annual cost)
Telephone Company Monthly Cost
CallOne $38,304
AT&T $47,880
Access One* $69,090
*no special discount agreement with AT&T
Wilson Consulting recommends that City of Lake Forest enter a 36 month contract with
XO Communications for the SIP service.
Wilson Consulting also recommends that the City extend its current contract with
CallOne for its POTS lines. CallOne provides a significant savings compared to
procuring the same services from AT&T directly or from Access One.
Please feel free to contact me should you have any questions or should you require
additional information.
Sincerely,
David Wilson
WILSON CONSULTING
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1
THE CITY OF LAKE FOREST
ORDINANCE NO. _________
AN ORDINANCE AMENDING THE
LAKE FOREST CITY CODE RELATING TO REAL ESTATE TRAN SFER TAXES,
WATER SHUTOFF VALVE INSPECTIONS, AND WATER LEAKS
WHEREAS, The City of Lake Forest (the “City”) is a home rule, special charter
municipality existing in accordance with the Illinois Constitution of 1970; and
WHEREAS, the City operates a water system that provides water service to
properties within its jurisdiction (the “Water System”); and
WHEREAS, regulations pertaining to the Water System are generally set forth in
Chapter 51 of Title V of the City Code, entitled “Water”; and
WHEREAS, pursuant to its home rule authority, the citizens of the City have
authorized the imposition of a tax upon the transfer of real property within the City (the
“Transfer Tax”); and
WHEREAS, in order to promote the cost-effectiveness and operational efficiency
of the Water System, the City has established regulations requiring the presence of a
functioning water shutoff valve, commonly known as a “Buffalo Box” or “b-box” (the
“Shut-Off Valve”), on the property of each water customer within the City; and
WHEREAS, the lack of an accessible or functioning Shut-Off Valve can
adversely affect the safe and effective operation of the Water System; and
WHEREAS, in order to protect the integrity and viability of the Water System, it is
important and desirable to have means and procedures to regularly check the
accessibility and functionality of the Shut-Off Valves serving properties in the City; and
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2
WHEREAS, in order to provide for the careful management of water resources,
the City also desires to establish procedures that must be undertaken in the event a
leakage has occurred that affect the Water System; and
WHEREAS, in furtherance of the City’s efforts to protect and enhance the Water
System, the City has established requirements for pre-transfer inspections to identify
certain code deficiencies (the “Transfer Inspections”); and
WHEREAS, the Transfer Inspections are conducted in connection with, and as a
pre-requisite to the issuance of, transfer stamps from the City, which stamps are issued
upon payment of the City’s Transfer Tax; and
WHEREAS, including the inspection of Shut-Off Valves on properties as part of
the Transfer Inspections is a cost-effective means for ensuring that such Shut-Off
Valves remain located and accessible; and
WHEREAS, the failure to comply with the requirements relating to the Transfer
Tax and Transfer Inspections could result in a delay in the issuance of transfer stamps;
and
WHEREAS, the Mayor and City Council have determined that it is in the best
interest of the City and its residents to amend certain provisions of Chapter 51 of Title V
of the City Code, “Water,” as hereinafter set forth to include Shut-Off Valves as part of
the Transfer Inspection program; and
WHEREAS, the Mayor and City Council have determined that it is in the best
interest of the City and its residents to amend certain provisions of Chapter 51 of Title V
of the City Code, “Water,” to address leakage matters; and
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3
WHEREAS, in connection with the incorporation of the Shut-Off Valves into the
Transfer Inspection program, the City Council has determined that it is in the best
interests of the City and its residents to update and clarify the terms, provisions,
enforceability, and requirements of the City Code with respect to the Transfer Tax,
water leakage, and Shut-Off Valves;
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL
OF THE CITY OF LAKE FOREST, COUNTY OF LAKE, STATE OF ILLINOIS, as
follows:
SECTION ONE: Recitals. The foregoing recitals are incorporated as the
findings of the City Council and are hereby incorporated into and made a part of this
Ordinance.
SECTION TWO: Amendment to Section 51.075 of the City Code.
Section 51.075, entitled “Repairs, Leaks,” of Chapter 51, entitled “Water,” of Title
V, entitled “Public Works, of the City Code is hereby amended so that said Section shall
hereafter be and read as follows:
(A) Property owners will be held liable for the maintenance of and repairs
to (i) all plumbing within or on their property, and (ii) private service
lines leading from any city water main to their property, including such
parts of any service lines lying within a city street, alley, easement or
across other private property. Known leakage or loss of water from any
service line will not be permitted, and failure of the property owner or user
to make immediate repairs upon the discovery of such leakage shall be
cause for the city to restrict or shut off water service until the necessary
repair or replacement is made, under § 51.031 of this chapter; all
plumbing must be kept in proper condition in such manner as to prevent
any unnecessary wastage of water.
(B) No discount will be allowed for water wasted through leakage; except
that, where a In the event leakage occurs on a service line where water
is taken from the public water mains for private consumption after
passing through a meter the meter is in a pit at the street and the owner
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is unaware of such leakage and an excessive water bill is created by such
circumstance, beyond the knowledge or control of the owner or user, the
owner or user may, within 90 days from the receipt by him or her of any
water bill from the city, make application for an adjustment of that water
bill in writing stating the conditions causing the excessive water bill and
stating that the source of the leakage has been repaired and the Council,
in its discretion, may allow a reduction in said water bill in accordance with
the rules and regulations established by the city. The owner or user
must supply the city with a sworn affidavit executed by a duly
licensed plumber that such leak has been repaired and that there are
no other leaks on the premises. Said affidavit must include copies of
paid receipts accompanying the request. If approved, the
adjustment will be calculated based on the city policy averaging the
three previous year’s consumption during the corresponding period.
The calculated adjustment will be 50% of the amount that the water
bill in question exceeds the three year average.
No adjustments will be made in instances where, in the judgment of
the city manager or the manager’s designee, the leak would have
been discovered by the owner or user upon exercise of ordinary care
and diligence; and/or the leak was apparent to and/or within the
knowledge of the owner or user for 10 or more days.
SECTION THREE: Amendment to Section 51.077 of the City Code.
Subsections (B) and (C) of Section 51.077, entitled “Water Shutoff Valve Access,” of
Chapter 51, entitled “Water,” of Title V, entitled “Public Works,” of the City Code are
hereby amended so that said Subsections shall hereafter be and read as follows:
(B) Conditions of water service. As a condition of water service, all
Customers must abide by the terms in this Division (B). No Customer or
other person may access, operate, or otherwise act in a manner to affect
the operation or function of a water shutoff valve, except under the
direction of the City. Upon notice from the City, a Customer (or an agent
of a Customer) shall undertake maintenance, repair, removal, or
replacement work of a water shutoff valve at no expense to the City, and
such repair or replacement work shall be subject to inspection and review
by the City. Failure to perform maintenance, repair, removal, or
replacement work in a timely fashion pursuant to notice from the City shall:
(1) be a violation of this Section; and
(2) authorize the City to undertake such maintenance,
repair, removal, or replacement, the cost of which shall be deemed an
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additional cost of water service. If, pursuant to this Chapter, water
service to a property ceases for any reason, the City may charge a
reasonable fee for the re-establishment of water service to that
property. Any outstanding costs, charges, taxes, fixed fees, fees
related to water consumption, penalties, or other amounts relating to
water service, the re-establishment of water service, or water shutoff
valves associated with a property shall be deemed to be costs
attributable to the property irrespective of ownership or occupancy,
and payment of any such outstanding amounts is a condition of re-
establishing water service to that property, whether or not the
Customer who incurred such costs, charges, taxes, fees, penalties,
or other amounts currently owns the property, previously owned the
property, or is a current or previous tenant upon the property.
(C) City access. Each Customer must maintain the water shutoff valve for
any premises in an area to which the City has access. Any Customer
receiving water service from the City has, by acceptance of water service,
granted the City an easement and license to access the water shutoff
valve when required, as may be determined by the City.
(1) Should the water shutoff valve be located in an area to which the
City’s access is impaired by any landscaping or other
improvements installed by or on behalf of a Customer, the City may
still access the water shutoff valve, but the City shall have no
responsibility to restore the premises other than to fill any
excavation and return it to the surrounding grade.
(2) No person may interfere with the City’s access to a water
shutoff valve, including, but not limited to, camouflaging or
otherwise concealing the location of a water shutoff valve.
(3) In connection with any transfer of real property within the City,
the City shall have the right to inspect a Customer’s property
to confirm the accessibility and functionality of any water
shutoff valve serving such property.
(4) To the extent that the Customer has directly or indirectly
concealed or permitted the concealment, or otherwise
interfered with access to a water shutoff valve in a manner that
causes the City to incur additional costs when accessing a
water shutoff valve, the City has the discretion to charge the
Customer for such additional costs as a cost of water service.
(5) In the event any Customer interferes with the City’s access to a
water shutoff valve, such interference shall be a violation of this
section and shall:
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(a1) Subject the Customer to fines in an amount not less than
$250, but not more than $750, per occurrence, and each day
a violation occurs or continues shall be deemed a separate
occurrence; and
(b2) Be grounds for terminating such Customer’s water service.
SECTION FOUR: Amendment to Section 39.156 of the City Code.
Subsections (A), (B), and (E) of Section 39.156, entitled “Collection of Tax; Declaration,”
of Chapter 39, entitled “Taxation,” of Title III, entitled “Administration,” of the City Code
are hereby amended so that said Subsections shall hereafter be and read as follows:
(A) Except as otherwise provided in connection with § 39.159, the
taxes herein levied and imposed in this § 39.156, shall be collected for
and on behalf of the City by the City Clerk or the Clerk's designee through
the sale of a revenue stamp, which shall be prepared by said City Clerk in
such quantities as the Clerk may prescribe. Such revenue stamp shall be
available for sale at the City Clerk's office during regular business hours of
the City Clerk and/or at other locations or times designated by the City
Clerk.
(B) At the time the tax imposed by § 39.155 is paid or an application is
made for exemption therefrom, there shall also be presented to the City
Clerk or the Clerk's designee, on a form prescribed by the Clerk, a
declaration signed by at least one of the sellers and also signed by at least
one of the buyers involved in the transaction or by their attorneys or
agents for the sellers or buyers. The declaration shall state information
including, but not limited to:
(a) the value of the real property located in the City subject to a
Real Estate Transfer;
(b) the parcel identifying number of the property;
(c) the legal description of the property;
(dc) the date of the deed, the date the transfer was effected, or
the date of the trust document;
(ed) the type of deed, transfer, or trust document;
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(fe) the address of the property;
(gf) the type of improvement, if any, on the property;
(hg) information as to whether the transfer is between related
individuals or corporate affiliates or is a compulsory
transaction;
(i) the lot size or acreage;
(j) the value of personal property sold with the real estate;
(k) the year the contract was initiated if an installment sale;
(l) the name, address, and telephone number of the person
preparing the declaration;
(mh) a written statement by both the grantor or grantor's agent
and the grantee or grantee's agent that the information
contained in the declaration is true and correct to the best of
his or her knowledge and belief; and
(ni) a complete and accurate copy of the declaration to be
submitted pursuant to the Real Estate Transfer Tax Law, 35
ILCS 200/31, as such law may be amended from time-to-
time.
Except as provided in § 39.159, no Deed shall be accepted for
recordation unless it bears on its face the transfer stamps of the City, and
no transfer stamps shall be issued unless such Deed is accompanied by a
declaration containing all the information requested in the declaration.
When a declaration is signed by an attorney or agent on behalf of sellers
or buyers who have the power of direction to deal with the title to the real
estate under a land trust agreement, the trustee being a mere repository
of record legal title with a duty of conveying the real estate only when and
if directed in writing by the beneficiary or beneficiaries having the power of
direction, the attorneys or agents executing the declaration on behalf of
the sellers or buyers need only identify the land trust that is the repository
of record legal title and not the beneficiary or beneficiaries having the
power of direction under the land trust agreement.
…
(E) Notwithstanding any provision in this Article to the contrary, the City
Clerk shall not issue any transfer stamps for any real property that:
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(1) Has any due but unpaid fees, charges, taxes, penalties, or other
amounts due to the City unless and until such amounts (plus any
applicable interest) shall have been paid in full;
(2) Has any outstanding violations relating to the real property for
which the City has issued notice unless and until every such
violation is corrected;
(3) Has any incomplete permit activity unless and until such activity is
completed and inspected in accordance with applicable permits and
codes; or
(4) Has been the subject of a transfer that is exempt under
Section 39-159 but has not paid the Minimum Tax (as defined
in Section 39-159) and any fines, penalties, or interest relating
thereto; or
(5) Has not obtained a receipts of for the final water bill
payment, payment of all amounts due pursuant to Section
51.077, and successfully completed completion of all required
inspections related to the closing or transfer of a water account with
the City.
SECTION FIVE: Amendment to Section 39.159 of the City Code. The
preamble and Subsection (M) to Section 39.159, entitled “Deed Exempted From Tax,”
of Chapter 39, entitled “Taxation,” of Title III, entitled “Administration” of the City Code
are hereby amended so that said preamble and Subsection shall hereafter be and read
as follows:
The following Deeds shall be exempt from the tax imposed pursuant to
this Article (except for the first $50.00 of the tax imposed pursuant to §
39.155 [the “Minimum Tax”], which Minimum Tax shall defray the
cost of processing any exemption:
…
(M) Deeds issued to holder of a mortgage, or the wholly owned
subsidiary of a holder of a mortgage, pursuant to a mortgage foreclosure
proceeding or pursuant to a transfer in lieu of foreclosure. The filing of a
declaration in connection with such deeds is not required provided that the
notification requirements of Section 39-96.1 are satisfied; and
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SECTION SIX: Amendment to Section 39.160 of the City Code. Section
39.160, entitled “Required Notifications,” of Chapter 39, entitled “Taxation,” of Title III,
entitled “Administration” of the City Code is hereby eliminated in its entirety:
Section 39.160 Required notifications.
(A) A deed that is exempt from the tax imposed under this subchapter
pursuant to § 39.159(M) shall not be required to file a declaration pursuant
to § 39.156 provided that the grantee shall have filed with the Finance
Clerk prior to the recording of the deed a written notification setting forth at
least the following information:
(1) The address of the property that is the subject of the deed;
(2) The name of the grantor(s) and grantee(s) under such deed;
(3) An explanation of the circumstances giving rise to such deed
(e.g., foreclosure sale, deed in lieu of foreclosure and the like);
(4) The name, address, phone number(s) and e-mail address of
a person who may be contacted on behalf of the grantee in connection
with the property that is the subject of the deed:
(5) A statement regarding the intended use of the property that
is the subject of the deed, including whether it will be immediately
occupied or be left unoccupied; and
(6) An acknowledgment that the grantee assumes responsibility
for the condition of the property that is the subject of the deed including
conditions pre-dating the date of the deed.
(B) The City Manager may cause appropriate forms to be prepared for
the notifications required under this section, in which case the
requirements of this section may only be satisfied by completing and filing
such form.
SECTION SEVEN: Amendment to Section 39.164 of the City Code.
Subsection (C) of Section 39.164, entitled “Refunds,” of Chapter 39, entitled “Taxation,”
of Title III, entitled “Administration” of the City Code is hereby eliminated:
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(C) Notwithstanding the foregoing, for any Taxpayer that had paid or will
pay the tax imposed under § 39.155 of this Article between 17 November
2007 and 17 November 2009, the time period for qualifying or applying for
a refund of the transfer tax shall be extended to two (2) years.
SECTION EIGHT: Effective Date. This Ordinance shall be in full force and
effect upon its passage, approval, and publication in pamphlet form in the manner
provided by law.
Passed this ____ day of _________________________, 2015.
AYES:
NAYS:
ABSENT:
ABSTAIN:
Approved this __ day of _________________________, 2015.
_____________________________
Mayor
ATTEST:
_______________________________
City Clerk
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