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6. NEW BUSINESS 05/21/02
Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: FROM: DATE: SUBJECT: MICHAEL JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE MAY 10, 2002 INTERGOVERNMENTAL AGREEMENT - LIBRARY BONDS PURPOSE: To present a revised intergovernmental agreement providing for the issuance of $20.5 million general obligation bonds for the benefit of the Mount Prospect Public Library. BACKGROUND: On April 16, 2002 the Village Board approved a resolution authorizing the execution of an intergovernmental agreement between the Village and the Mount Prospect Public Library for the issuance of $20.5 million of general obligation bonds. DISCUSSION: Village staff, the Village Attorney. and the attorneys representing the Mount Prospect Public. Library are recommending certain changes to the intergovernmental agreement that was presented to the Village Board on April 16, 2002. The Library had neither approved nor signed the original intergovernmental agreement. There are four substantive changes to the document that should be brought to the Village Board's attention. They are as follows: There is concern that the intergovernmental agreement cannot exceed a twenty- year period. The debt service schedule developed by the Library provides for a final bond payment in December of 2022. This would be seven months longer than twenty years. To resolve this matter we incorporated into the agreement a balloon payment in the year 2021 that would require the library to make the 2022 debt service payments on November 1, 2021 (Section 6). The Village incorporated a hold harmless and indemnification clause that would protect the Village in the unlikely case that bondholders or the Internal Revenue Service charge the Village with violating the tax laws covering the issuance of tax- exempt debt (Section 9). ntergovernmental Agreement - Library May 10, 2002 Page 2 3. The agreement was changed to give the Library authority to direct the depository with regard to investment of bond proceeds, subject to the written approval of the Village (Section 5). 4. The document was clarified in a few sections to reflect a depository arrangement with a financial institution rather than a trustee relationship. The section requiring the trustee to post a surety bond was deleted. The Library Board is expected to approve and execute the document at its meeting scheduled for May 16t~. The Village Board should consider approving and executing this agreement prior to accepting the best bid on the pending bond sale and passing the bond ordinance at their meeting on May 21 st. RECOMMENDATION: It is recommended the Village Board pass the accompanying resolution authorizing the Village President to execute the attached intergovernmental agreement between the Village and the Library. DRE/ I:~Debt~002 Ubrary G.O~Board Memo 5-10-02.doc DOUGLAS R. ELLSWORTH, CPA DIRECTOR OF FINANCE INTERGOVERNMENTAL AGREEMENT THIS day of PROSPECT, ILLINOIS INTERGOVERNMENTAL AGRE~ is entered into this · 2002, by and between the VILLAGE OF MOUNT (hereinafter "the VILLAGE"), an Illinois home rule municipal corporation, (hereinafter "the LIBRARY"), WHEREAS, Article VII, provides that units of themselves· to and the MOUNT PROSPECT LIBRARY an Illinois Village Public Library. Section 10, of the Illinois Constitution local government may contract among obtain or share services, to exercise, combine or transfer any power or function in any manner not prohibited by law or ordinance, and may use their revenues to pay costs related to intergovernmental activities, and the Illinois Intergovernmental Cooperation Act, and that one or more public agencies may contract with any one or more other public agencies to perform any governmental service, activity or undertaking which any of the public agencies entering into the contract is authorized by law to perform; and WHEREAS, the LIBRARY, not having the legal authority to directly cause municipal bonds to be issued, desires the VILLAGE to cause general obligation bonds to be issued in the amount of $20,500,000 to fund the expansion of and improvement to the existing public library (the "Project"); and WHEREAS, the VILLAGE has approved the plan of the LIBRARY for the construction of the Project; and WHEBEAS, the VILLJ%GE has agreed to provide for the issuance of general obligation bonds in the amount of $20,500,000(the "Bonds") to pay the costs of the Project pursuant to 75 ILCS 5/5-2; WHEREAS, the VILLAGE, in return for issuing the Bonds, and desires assume full inclusive of with the bond the LIBRARY, pursuant to 75 ILCS 5/4-7, to responsibility for the repayment of the bonds, principal and interest, and all costs associated issue as well as for the construction of the Project; and WHEREAS, the VILLAGE and the LIBRARY desire a third party depository to retain control of the proceeds of the Bonds (the "Bond Proceeds") and that the LIBRARY shall remit to the VILLAGE all monies received from the Cook County Collector as taxes collected for payment of principal and interest thereon, as more particularly set forth in Section 6 herein below; and W~mREAS, the VILLAGE and the LIBRARY have subsequently entered into negotiations and, as a result of these negotiations, the VILLAGE and the LIBRARY have each determined that it is advisable and in their best interests to enter into an agreement. NOW, T~_.~EFORE, based on the mutual promises and consideration set forth herein, the terms and conditions hereof, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: - 2 - Section 1. The foregoing into and made part Incorporation of Recitals recitals shall be and are hereby incorporated of this Agreement as though they were fully set forth in this Section 2. The VILLAGE Section 1. Issuance of the Bonds shall issue its Bonds pursuant to an ordinance (the ~Bond Ordinance"). The proceeds of the Bonds shall be initially in the care and custody of its Treasurer/Finance who shall provided for in Section 3 pursuant to all applicable regulations. legal counsel Issue. Section 3. The VILLAGE and financial institution retained Director thereupon remi% the proceeds to the financial institution of this Agreement and shall do so federal, state and local laws and The VILLAGE shall have the right to select both bond and an appropriate financial advisor for the Bond Administrator of Bond Proceeds the LIBRARY shall select an independent (the "DEPOSITORY") to retain custody of and administer the Bond Proceeds during the period that this Agreement remains in force. section 4. Payments from Bond Proceeds The VILLAGE's and the LIBRARY's agreement with the DEPOSITORY shall provide that the DEPOSITORY shall receive warrants issued by the Treasurer of the Board of Library Trustees. The warrants shall be supported by certificates, as required by the Contract between - 3 the LIBRARY and its architect and contractor, for payments and payees. the listed payees the and shall list items The DEPOSITORY shall then distribute to amounts so listed and certified, in accordance with the terms of the Contract between the LIBRARY and its Contractor. In addition, the DEPOSITORY shall, upon receipt of the warrants issued by the Treasurer of the Board of Library Trustees, distribute to the listed payees the amounts requested as required by the Local Government Prompt Payment Act, 50 ILCS 505/1, et seq. The warrants shall list for payment any other items related to the Project as are allowed to be paid from the Bond Proceeds by the provision of the Bond Ordinance and the payees. The Treasurer of the Board of Library Trustees shall issue such warrants in a timely fashion. The VILLAGE does not make any warranty, either express or implied, that the moneys on deposit in the Project Fund will be sufficient to pay all costs incurred in connection with the Project. The DEPOSITORY shall also pay the legal, fiscal and administrative costs of issuance out of the Bond Proceeds. During the period when there are funds remaining in the Project Fund, the DEPOSITORY shall also be rebate calculation each Internal Revenue Service. required to contract for the arbitrage year as required by the United States Section 5. Investment of Bond Proceeds The VILLAGE's and the LIBRARY's agreement with the DEPOSITORY shall provide that the DEPOSITORY shall invest the Bond Proceeds as - 4 provided by law and as directed by the LIBRARY subject to written approval by the VILLAGE, which approval shall not be unreasonably conditioned or delayed, and shall report monthly to the withheld, VILLAGE Intergovernmental and the LIBRARY, pursuant to Section 6 of the Agreement, interest earnings and expenses pertaining to such investment as such expenses are charged by any third parties. Section 6. Custod~ of Taxes Collected for Debt Service The LIBRARY shall approve and certify budgets and levy tax extension determinations in amounts sufficient to cover the repayment of all principal and interest on the Bonds issued by the VILLAGE as they come due, as well as all costs incurred by the VILLAGE under Section 8 of this Agreement. The LIBRARY shall hold monies received from such determinations as they are received from the Cook County Treasurer and remit the monies to the VILLAGE on a The payments shall be due on May 1, and November year. Furthermore, the LIBRARY agrees to remit to the semiannual basis. 1, of each VILLAGE a balloon payment on November 1, 2021 in an amount sufficient to cover th~ December 1, 2021 principal and interest payment, the June 1, 2022 interest payment, and the December 1, 2022 principal and interest payment. The VILLAGE shall also keep in the care and custody of its Treasurer/Finance Director the property taxes remitted to it which have been collected pursuant to statute for payment of the principal and interest on the Bonds. Section 7. Re~orts The VILLAGE and the LIBRARY's agreement with the DEPOSITORY shall provide that the DEPOSITORY shall provide the VILLAGE and the LIBRARY with monthly reports containing an accounting of all activity pertaining to the Bond Proceeds and interest earned thereon which the DEPOSITORY holds in his or her care and custody pursuant to this Agreement. The DEPOSITORY shall also be required to report the results of the annual arbitrage rebate calculation as provided in Section 4 of this Agreement to the VILLAGE and the LIBRARY. Such reports shall be made and presented in accordance with generally accepted accounting principles. Section 8. Costs of Bond Issuance and Administration The LIBRARY shall pay the costs of the Bond Issuance and administrative costs due to third parties, including but not limited to, attorney's fees, including fees for bond counsel and fees for the Village Attorney associated with the Bond Issuance and/or administration, and for underwriter, financial consultant, investment and arbitrage services where such services are reasonably necessary and appropriate and the services of the DEPOSITORY. Should arbitrage laws make rebates necessary and amounts required to be rebated are not available from Bond Proceeds, the LIBRARY shall provide all additional amounts necessary to meet the requirements of the law. - 6 - Section 9. Tax Covenants. omit to take any action lawful and within its power to take, action or omission would cause interest on any Bond to The Library shall not take or which become subject to federal income taxes in addition to federal income taxes to which interest on such Bond is subject on the date of original issuance thereof. The Library shall not permit any Bond Proceeds, or any facilities financed with such proceeds, to be used in any manner that would cause any Bond to constitute a ~private activity bond" within the meaning of Section 141 of the Internal Revenue Code of 1986. The Library shall not permit any Bond Proceeds, or other moneys to be invested in any manner that would cause any Bond to constitute an ~arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986 or a ~hedge bond" within the meaning of Section 149(g) of the Internal Revenue Code of 1986. Concurrently with the issuance of the Bonds, the Village and the Library will jointly execute and deliver a tax compliance certificate establishing their reasonable expectations as to the investment and expenditure of the Bond Proceeds and the use of the facilities to be financed by the application of such proceeds. The Library shall hold the Village, its officers, agents and employees harmless and indemnified from and against any claims of whatever - 7 - kind or nature that might be made against the Village on account of the Village's execution of the tax compliance certificate. Section 10. Tez~ination This Agreement shall terminate upon the final payment of principal and interest on the Bonds. The agreement with the DEPOSITORY shall cease upon the final disbursement of moneys in the Project Fund. Section 11. This Agreement conditions and Complete Understanding. sets forth all of the understandings between the promises, parties agreements, regarding the subject matter of this Agreement, and there are no promises, agreements, conditions and understandings, either oral or written, other than the contents.of this Agreement. Section 12. Binding Effect. This Agreement shall be binding upon and inure of the VILLAGE, and the LIBRARY, and their representatives and successors. Section 13. Partial Invalidity. to the benefit respective legal The clauses, provisions and sections of this Agreement are deemed by the parties to be separable and the invalidity of any portion of this Agreement shall not effect the validity of the remainder. Section 14. Notices. All notices and demands required hereunder shall be in writing and shall be deemed to have been given or made when delivered personally or when mailed by registered or certified mail, postage prepaid, addressed as follows: For the VILLAGE: 1. Village Treasurer/Finance Director Village Hall 100 South Emerson Avenue Mount Prospect, Illinois 60056 with a required copy to: Everette M. Hill, Jr., Esq. Klein, Thorpe and Jenkins, Ltd. 20 North Wacker Drive, Suite 1660 Chicago, IL 60606-2903 2. Library Director Mount Prospect Public Library 10 South Emerson Street Mount Prospect, Illinois 60056 with a required copy to: Lawrence L. Summers, Esq. Shawn S. Magee, Esq. Vedder Price 222.N.LaSalle Street, Suite 2400 Chicago, IL 60601 or at other such addresses as the parties may indicate in writing to the other either by personal delivery or by certified or registered mail, return receipt requested, with proof of delivery thereof. - 9 - Section 15. Execution This Agreement is entered into by the duly authorized agents of the Parties, each acting pursuant to the laws and ordinances governing their designation as signatories of the Agreement. VILLAGE OF MOUNT PROSPECT, an Illinois home rule Municipal corporation ATTEST: By: Village President By: ATTEST: Village Clerk MOUNT PROSPECT PUBLIC LIBRARY By: President, Board Trustees of the Mount Prospect of Library Village of By: Secretary, Board of Library trustees of the Village of Mount Prospect I: \Debt\2002 Library G.O\intergovernmentalagreementre_bondissue-5-10-02.doc - 10 5/16/02 RESOLUTION A RESOLUTION AUTHORIZING EXECUTION OF AN AMENDED INTERGOVERNMENTAL AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND THE MOUNT PROSPECT LIBRARY WHEREAS, a Pdmary Election was held in and for the Village of Mount Prospect on March 19, 2002; and WHEREAS, a referendum question was presented to the electors of the Village of Mount Prospect in said Primary Election, at which time the referendum question received a greater number of affirmative votes, determining that the Village should issue general obligation bonds for the renovation and expansion of the Mount Prospect Library; and WHEREAS, on April 16, 2002, the Corporate Authorities of the Village of Mount Prospect determined that it was in the best interests of the Village to participate with the Mount Prospect Library in the issuance of general obligation bonds in an amount not to exceed $20,500,000, bearing interest at a rate not to exceed six-percent (6%) per annum; and WHEREAS, on April 16, 2002, Resolution No. 25-02 was approved by the Mount Prospect Village Board, authorizing the Village to enter into an intergovernmental agreement ("the Agreement'3 for the issuance of said bonds; and WHEREAS, subsequent to April 16, 2002, upon further review by the Mount Prospect Library Board and legal counsel, said Agreement was amended. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor is hereby authorized to sign and the Clerk is authorized to attest his signature on the amended Agreement between the Village of Mount Prospect and the Mount Prospect Library, being the subject of this Resolution, a copy of said Agreement is attached hereto and hereby made a part hereof as Exhibit "A". F VOMP/MPL bonds Page 2/2 SECTION TWO: That this Resolution shall be in full rome and effect from and after its passage and approval in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of ,2002. ATTEST: Gerald L. Farley Mayor Velma W. Lowe Village Clerk illage of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: FROM: DATE: SUBJECT: PURPOSE: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE MAY 10, 2002 $20,500,000 G.O. SERIES 2002 LIBP~Y BONDS To present for the Village Board's consideration an ordinance authorizing the issuance of $20,500,000 general obligation bonds for the benefit of the Mount Prospect Public Library. BACKGROUND: On April 16, 2002 the Village Board authori~d staff to proceed with the issuance of $20.5 million of general obligation bonds to fund the expansion and improvements to the Mount Prospect Public Library. DISCUSSION: The accompanying bond ordinance is presented for the Board's consideration. 7he sections of the ordinance dealing with interest rates (page 3), the purchaser ofthe bonds and the purchase price (page 5), and the taxlevy requirements (page 15) have been left blank for now since bids on the proposed financing will not be opened until 12:00 noon on Tuesday, May 21, 2002. At the Board meeting that evening I will present a summaryof the bid results and shall distribute a completed bond ordinance. Attached hereto is a current estimate ofthe debt service on the proposed bond issue. A separate intergovernmental agreement has been dratted between the Library and the Village that will require the Libraryto levy taxes sufficient to cover the annual debt service payments. The intent is for the Village to be able to abate its debt ser~ce levy requirements provided for in the attached bond ordinance. The increased taxes associated with this bond issue will appear on the Library's line item of propertytax bills. This agreement should be approved and entered into prior to the bonds being sold. RECOMMENDATION: It is recommended the Village Board waive the rules requiring two readings and adopt an ordinance authorizing the sale of $20,500,000 of general obligation library bonds. DOUGLAS R. ELLSV~)RTH, CPA I:\Debt~002 Library G.O\Bond Ordinance Board Memo 5-10.doc /////~5/08/02 16:12 FAX 18479985503 R.V.Norene Assoc ~02 Nount Prospect - $20,500,00~ ~,0, Library Bonde~ Interest start date: 06/01/02 First interest payment: 06.101103 ~eries ~02 ~20 Yesr Ascending) Bid per $1000 NIC Avg coupon Avg li~e Bond yrs 990.00000000 4.80510~ 4.72841~ 13.03951219 267,310.00 Interest start date: 06/01/02 First interest payment: 06/01/03 DEBT SERVICE SCHEDULE PERIOD ANNUAL ENDING PRINCIPAL RATE 12/01/03 185,000.00 1.950 12/01/04 645,000.00 2.500 12/01/05 660,000.00 2.950 12/01/06 680,000.00 3.200 12/01107 700,000.00 3.500 6 12/01/08 730,000.00 3.750 7 12/01/09 850,000.00' 3.950 8 12/01/10 800~000.00 4.100 9 12/01/11 920,000.00 4.200 '10 12101112 965,000.00 4.300 11 12101/13 1,000, 000.00 4. 400 12 12/01114 1,050,000.00 4. 550 13 12/0t/15 1,095, 000.00 4. 650 14 12/01/16 1, 250, 000. 00 4. 750 15 12/01/17 I, 505, 000.00 4. 850 16 12/01/18 1,370,000.00 4.900 17 12/01/19 l, 440, 000.00 5. 000 18 12101/20 1,510,000.00 5. 050 19 12/01/21 1, 585~ 000. 00 5. 100 20 12/01/22 1,670,000.00 5. 150 TOTAL 20,500, 000.00 INTEREST TOTAL 1,365,933' 75 907,015.00 890, 890. Ob 871,420.00 849,660.00 825,160.00 797,785.00 764,210.00 727,720.00 689,080.00 647,585.00 603,585.00 555,810.00 504,892.50 382,225.00 315,095.00 243,095.00 166,840.00 639,523.75 1,550, 933.75 l, 552, 015.00 L, 550, 890.00 1,551,420.00 l, 549,660.00 I, 555, 160.00 1,647, 785.00 1,654, 210.00 1, 647,720.00 1, 65~,~S0.00 1,647,585.00 1,653, 585.00 1,650, S10. 00 1,754,892.50 I, 750, 517.5~ 1,752, 225.00 1,755' 095; 00 1,753, 095.00 I, 751,840.00 1,756, 005.00 33, 139, 523.75 ORDINANCE NO. ORDINANCE AUTHORIZING THE ISSUANCE OF ~20,500,000 GENERAL OBLIGATION LIBRARY' BONDS, SERIES 2002, OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS, AS FOLLOWS: Section 1. Authority, Purpose and Findings. This ordinance is adopted pursuant to and under the authority of Section 6 Of Article VII' of the Illinois COnstitutiOn of 1970 for the purpose of financing the renovation and expansion of the Mount Prospect Public Library, including relocation costs, library materials and furnishings (the "Library Project'). The foregoing improvement is authorized to be made or. undertaken by the Village of Mount Prospect, Illinois. At the general primary election held on March 19, 2002, the following advisory referendum public question was submitted to and approved by the electors of the Village: "Shall the Village of Mount Prospect, on behalf of the Mount Prospect Library Board of Trustees, issue general obligation bonds to renovate and expand the Mount Prospect Public Library, in an amount not to exceed ~20,500,000, bearing interest at a rate not to exceed 6% per annum?" Pursuant to Section 10 of Article VII of the Illinois Constitution of 1970, the Mount Prospect Library and the Village have entered into an Intergovernmental Agreement relating to the Library Project. Section 2. Authorization and Terms of Bonds. The sum of ~20,500,000 is appropriated to meet part of the estimated cost of the Library Project. Said estimated cost is inclusive of the cost of issuance of the bonds herein authorized. Pursuant to the home rule powers of the Village to incur debt payable from ad valorem property tax receipts and for the purpose of financing said appropriation, general obligation bonds of the Village are authorized to be issued and sold in an aggregate principal amount of $20,500,000, and shall be designated "General Obligation Library Bonds, Series 2002." Bonds shall be isSuable in the denominations of $5,000 or any integral multiple thereof and may bear such identifying numbers or letters as shall be useful to facilitate the registration, transfer and exchange of bOnds. Unless otherwise determined in the order to authenticate the bonds, each bond delivered upon the original issuance of the bonds shall be dated as of June 1, 2002. Each bond thereafter issued upon any transfer, exchange or replacement of bonds shall be dated so that no gain or loss of interest shall result from such transfer, exchange or replacement. The bonds shall mature on December 1 in each year shown in the following table in the respective principal amount set forth opposite each such year and the -2- bonds maturing in each such year shall bear interest at the respective rate per annum set forth opposite such year: Principal Interest Principal Interest Year Amount Rate Year Amount Rate 2003 $185,000 2013 81,000,000 2004 645,000 2014 1,050,000 2005 660,000 2015 1,095,000 2006 680,000 2016 1,250,000 2007 700,000 2017 1,305,000 2008 730,000 2018 1,370,000 2009 850,000 2019 1,440,000 2010 890,000 2020 1,510,000 2011 920,000 2021 1,585,000 2012 965,000 2022 1,670,000 Each bond shall bear interest from its date, computed on the basis of a 360 day year consisting of twelve 30 day months and payable in lawful money of the United States of America on June 1, 2003 and semiannually thereafter on each June I and December 1 at the rates per annum herein determined. The principal of the bOnds shall be payable in lawful money of the United States of America upon presentation and surrender thereof at the principal corporate trust office of American National Bank and Trust Company of Chicago, in the City of Chicago, Illinois, which is hereby appointed as bond registrar and p~ing agent for the bonds. Interest on the bonds shall be payable on each interest payment date to the registered owners of record thereof appearing on the registration books maintained by the Village for such purpose at the principal corporate trust office of the bond registrar, as of the close of business on the 15th day of the calendar month next preceding the applicable interest payment date. Interest on the bonds shall be paid by check or draft mailed to such .registered owners at their addresses appearing on the registration books -3- or by wire transfer pursuant to an agreement by and between the Village and the registered owner. The bonds maturing on or after December 1, 2012 shall be subject to redemption prior to maturity at the option of the Village and upon notice as herein provided, in such principal amounts and from such maturities as the Village shall determine and by lot within a single maturity, on June 1, 2012 and on any date thereafter, at a redemption price equal to the principal amount thereof to be redeemed. In the event of the redemption of less than all the bonds of like maturity, the aggregate principal amount thereof to be redeemed shall be 95,000 or an integral multiple thereof and the bond registrar shall assign to each bond of such maturity a distinctive number for each $5~000 principal amount of sUch bond and shall select by lot from the numbers so assigned as many numbers as, at 95,000 for each number, shall equal the principal amount of such bonds ~o be redeemed. The bonds to be redeemed shall be the bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each bond shall be redeemed as shall equal 95,000 for each number assigned to it and so selected. Notice of the redemPtion of bonds Shall be mailed not less than 30 days nOr more than 60 days prior tOthe date fixed for such redemption to the registered owners of bonds to be redeemed at their last addresses appearing on said registration books. The bonds or portions thereof specified in said notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemption date, moneys for payment of the redemption price of all the bonds or portions thereof to be redeemed, together with interest to the redemption date, shall -4- be available for such payment on said date, and if notice of redemption shall have been mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt thereof by any registered owner) then from and after the redemption date interest on such bonds or portions thereof shall cease to accrue and become payable. If there shall be drawn for redemption less than all of a bond, the Village shall execute and the bond registrar shall authenticate and deliver, upon the surrender of such bond, without charge to the owner thereof, in exchange for the unredeemed balance of the bond so surrendered, b~nds of like maturity and of the denomination of $5,000 or any integral multiple thereof. The bond registrar shall not be required to transfer or exchange any bond after notice of the redemption of all or a portion thereof has been mailed. The bond registrar shall not be required to transfer or exchange any bond during a period of 15 days next preceding the mailing of a notice of redemption that could designate for redemption all or a portion of such bond. Section 3. Sale and Delivery. The bonds are sold to , as purchaser, at a price of $ and accrued interest from their date to the date of delivery and payment therefor. The Official Statement prepared with respect to the bonds is approved and ~deemed final" as of its date for purposes of Securities and Exchange Commission Rule 15(c)2-12 promulgated under the Securities Exchange Act ~of 1934. The Village President, Village Clerk and other officials of the Village are authorized and directed to do and perform, or cause to be done or performed for~ Or on -5- behalf of the Village each and every thing necessary for the issuance of the bonds, including the proper execution and delivery of the bonds and the Official statement. Section 4. Execution and Authentication~ Each bond shall be executed in the name of the Village by the manual or authorized facsimile signature of its Village President and the corporate seal of the Village, or a facsimile thereof, shall be thereunto affixed or otherwise reproduced thereon and attested by the manual or authorized facsimile signature of its Village Clerk. In case any officer whose signature, or a facsimile of whose signature, shall appear on any bond shall cease to hold such office before the issuance of the bond, such bond shall nevertheless be valid and sufficient for all purposes, the same as if the · person whose signature, or a facsimile thereof, appears on such bond had not ceased to hold such office. Any bond may be signed, sealed or attested on behalf of the Village by any person who, on the date of such act, shall hold the I~oper office, notwithstanding that at the date of such bond such person may not have held such office. No recourse shall be had for the payment of any bonds against any officer who executes the bonds. Each bond shall bear thereon a certificate of authentication executed manually by the bond registrar. No bond shall be entitled to any right or benefit under this ordinance or shall be valid or obligato, ry for any purpose until such certificate of authentication shall have been duly executed by the bond registrar. Section 5. Transfer, Exchange and Registry. The bonds shall be negotiable, subject to the provisions for registration of transfer contained herein. Each bond shall be transferable only upon the registration bool(s maintained by the Village for that -6- purpose at the principal corporate trust office of the bond registrar, by the registered owner thereof in person or by his attorney duly authorized in writing, upon surrender thereof together with a written instrument of transfer satisfactory to the bond registrar and duly executed by the registered owne~ or his duly authorized attorney. Upon the surrender for transfer of any such bond, the Village shall execute and the bond registrar shall authenticate and deliver a new bond or bonds registered in the name of the transferee, of the same aggregate principal amount, maturity and interest rate as the surrendered bond. Bonds, upon surrender thereof at the principal corporate trust office of the bond registrar, with a written instrument satisfactory to the bond registrar, duly executed by the registered owner or his attorney duly authorized in writing, may be exchanged for an equal aggregate principal amount of bonds of the same maturity and interest rate and of the denominations of $5,000 or any integral multiple thereof. For every such exchange or registration of transfer of bonds, the Village or the bond registrar may make a charge sufficient for the reimbursement of any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. No other charge shall be made for the privilege of making such transfer or exchange. The provisions of the Illinois Bond Replacement Act shall govern the replacement of lost, destroyed or defaced bonds. The Village and the bond registrar may deem and treat the person in Whose name any bond shall be registered upon the registration books as the absolute owner -7- of such bond, whether such bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of or interest thereon and for all other purposes whatsoever, and all such payments so made tO any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such bond to the extent of the sum or sums so paid, and neither the Village nor the bond registrar shall be affected by any notice to the contrary. Section 6. General Obligations. The full faith and credit of the Village are hereby irrevocably pledged to the punctual payment of the principal of and interest on the bonds. The bonds shall be direct and general obligations of the Village, and the Village shall be obligated to levy ad valorem taxes upon all the taxable property in the Village for the payment of the bonds and the interest thereon, without limitation as to rate or amount. Section 7. Form of Bonds. The bonds shall be issued as fully registered bonds and shall be in substantially the following form, the blanks to be appropriately completed when the bonds are printed: -8- No. United States of America State of Illinois County of Cook VILLAGE OF MOUNT PROSPECT GENERAL OBLIGATION LIBRARY BOND, SERIES 2002 INTEREST RATE MATURITY DATE DATED DATE CUSIP · % December 1, 20 June 1, 2002 REGISTERED OWNER: PRINCIPAL AMOUNT: The VILLAGE OF MOUNT PROSPECT, a municipal corporation and a home ~ule unit of the State of Illinois situate in the County of Cook, acknowledges itself indebted and for value received hereby promises to pay to the registered owner of this bond, or registered assigns, the principal amount specified above on the maturity date specified above, and to pay interest on such principal amount from the date hereof at the interest rate per annum specified above, computed on the basis of a 360 day year consisting of twelve 30 day months and payable in lawful money of the United States of America on June 1, 2003 and semiannually thereafter on June I and December 1 in each year until the principal amount shall have been paid, to the registered owner of record hereof as of the 15th day of the calendar month next preceding such interest payment date, by wire transfer pursuant to an agreement by and between the Village and the registered owner, or otherwise by check or draft mailed to the registered owner at the address of such owner appearing on the registration books maintained -9- by the Village for such purpose at the principal corporate trust office of American National Bank and Trust Company of Chicago, in the City of Chicago, Illinois, as bond registrar or its successor (the #Bond Registrar"). This bond, as to principal when due, will be payable in lawful money of the United States of America upon presentation and surrender of this bond at the principal corporate trust office of the Bond Registrar. The full faith and credit of the Village are irrevocably pledged for the punctual payment of the principal of and interest on this bond according to its terms. This bond is one of a series of bonds issued in the aggregate principal amount of 920,500,000, which are authorized and issued under and pursuant to Section 6 of Article VII of the Illinois Constitution of 1970 and under and in accordance with an ordinance adopted by the President and Board of Trustees of the Village on May 21, 2002 and entitled: "Ordinance Authorizing the Issuance of 920,500,000 General Obligation Library Bonds, Series 2002, of the Village of Mount Prospect, Illinois." The bonds of such series maturing on or after December 1,2012 are subject to redemption prior to matUrity at the option of the Village and upon notice as herein provided, in such principal amounts and from such maturities as ~the Village shall determine and by lot within a single maturity, on June 1, 2012 and on any date thereafter, at a redemption price equal to the principal amount thereof to be redeemed. Notice of the redemption of bonds will be mailed not less than 30 days nor more than 60 days prior to the date fixed for such redemption to the registered owners of bonds to be redeemed at their last addresses appearing on such registration books. The bonds or portions thereof specified in said notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, -10- on the redemption date, moneys for payment of the redemption price of all the bonds or portions thereof to be redeemed, together with interest to the redemption date, shall be available for such payment on said date, and if notice of redemption shall have been mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt thereof by any registered owner) then from and after the redemption date interest on such bonds or portions thereof shall cease to accrue and become payable. This bond is transferable only upon such registration books by the registered owner hereof in person, or by his attorney duly authorized in writing, upon surrender hereof at the principal corporate trust office of the Bond Registrar together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or by his duly authorized attorney, and thereupon a new registered bond or bonds, in the authorized denominations of $5,000 or any integral multiple · thereof and of the same aggregate principal amount, maturity and interest rate as this bond shall be issued to the transferee in exchange therefor. In like manner, this bond may be exchanged for an equal aggregate principal amount of bonds of the same maturity and interest rate and of any of such authorized denominations. The Village or the Bond Registrar may make a charge sufficient for the reimbursement of any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange of this bond. No other charge shall be made for the privilege of making such transfer or exchange. The Village and the Bond Registrar may treat and consider the person in whose name this bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal and interest~ due hereon and for all other purposes whatsoever. -11- This bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been duly executed by the Bond Registrar. It is hereby certified, recited and declared that all acts, conditions and things required to be done, exist and be performed precedent to and in the issuance of this bond in order to make it a legal, Valid and binding obligation of the Village have been done, exist and have been performed in regular and due time, form and manner as required by law, and that the series of bonds of which this bond is one, together with all other indebtedness of the Village, is within every debt or other limit prescribed by law. -12- IN WITNESS WHEREOF, the Village of Mount Prospect has caused this bond to be executed in its name and on its behalf by the manual or facsimile signature of its Village President, and its corporate seal, or a facsimile thereof, to be hereunto affixed or otherwise reproduced hereon and attested by the manual or facsimile signature of its Village Clerk. Dated: June 1, 2002 VILLAGE OF MOUNT PROSPECT Village President Attest: Village Clerk CERTIFICATE OF AUTHENTICATION This bond is one of the General Obligation Library Bonds, Series 2002, described in the within mentioned Ordinance. AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO, as Bond Registrar By Authorized Signer -13- For value received ASSIGNMENT the undersigned sells, irrevocably constitutes and appoints assigns and transfers unto the within bond and hereby attorney to transfer the said bond on the books kept for registration thereof, with full power of substitution in the premises. Dated Signature Guarantee: -14- Section 8. Levy and Extension of Taxes. For the purpose of providing the money required to pay the interest .on the bonds when and as the same falls due and to pay and discharge the principal thereof as the same shall mature, there is hereby levied upon all the taxable property in the Village, in each year while any of the bonds shall be outstanding, a direct annual tax sufficient for that purpose in addition to all other taxes, as follows: Tax Levy Year A Tax Sufficient to Produce 2OO2 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Interest or principal coming due at any time when there shall be insufficient funds on hand to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of the taxes herein levied; and when said taxes shall have been collected, reimbursement shall be made to the said funds in the amounts thus advanced. -15- As soon as this ordinance becomes effective, a copy thereof certified by the Village Clerk, which certificate shall recite that this ordinance has been duly adopted; shall be filed withlthe County Clerk of Cook County, Illinois, Who is hereby directed to ascertain the rate per cent required to produce the aggregate tax hereinbefore provided to be levied in the years 2002 to 2021, inclusive, and to extend the same for collection on the tax books in connection with other taxes levied in said years, in and by the Village for general corporate purposes of the Village, and in said years such annual tax shall be levied and collected in like manner as taxes for general corporate purposes for said years are levied and collected and, when collected, such taxes shall be used for the purpose of paying the principal of and interest on the bonds herein authorized as the same become due and payable. Section 9. Debt Service Fund. Moneys derived from taxes herein levied are appropriated and set aside for the purpose of paying principal of and interest on the bonds when and as the same come due. All of such moneys, and all other moneys to be used for the payment of the principal of and interest on the bonds, shall be deposited in the ~2002 Debt Service Fund", which is hereby established as a special fund of the Village and shall be administered as a bona fide debt service fund under the Internal Revenue Code of 1986. All accrued interest received upon the issuance of the bonds shall be deposited in the 2002 Debt Service Fund. The moneys deposited or to be deposited into the 2002 Debt Service Fund, including the tax receipts derived from the taxes levied pursuant to this ordinance, are pledged as security for the payment of the principal of and interest on the bonds'. The pledge is made pursuant to Section 13 of the Local Government Debt Reform Act and -16- shall be valid and binding from the date of issuance of the bonds. All such tax receipts and the moneys held in the 2002 Debt Service Fund shall immediately be subject to the lien of such pledge without any physical delivery or further act and the lien of such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Village irrespective of whether such parties have notice thereof. Section 10. Bond Proceeds Fund. All of the proceeds of sale of the bonds (exclusive of accrued interest) shall be deposited in the =2002 Bond Proceeds Fund", which is hereby established as a special fund of the Village. Moneys in the 2002 Bond Proceeds Fund shall be used for the purposes specified in Section I of this ordinance ~and for the payment of costs 0f issuance of the bonds, but may hereafter be reappropriated and used for other purposes if such reappropriation is permitted under Illinois law and will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the bonds. Section 11. Investment Regulations. · No investment shall 'be made of any moneys in the 2002 Debt Service Fund or the 2002 Bond Proceeds Fund except in accordance with the tax covenants set forth in Section 12 of this ordinance. All income derived from such investments in respect of moneys or securities in any Fund shall be credited in each case to the Fund in which such moneys or securities are held. Any moneys in any Fund that are subject to investment yield restrictions may be invested in United States Treasury Securities, State and Local Government Series, pursuant to the regulations of the United States Treasury Department, Bureau of Public Debt, or in any tax-exempt bond that is not an "investment property" within the -17- meaning of Section 148(b)(2) of the Internal Revenue Code of 1986. The Village Treasurer and agents designated by him are hereby authorized to submit, on behalf of the Village, subscriptions for such United states Treasury Securities and to request redemption of suCh United States Treasury Securities. Section 12. Tax Covenants. The Village shall not take, or omit to take, any action lawful and within its power to take, which action or omission would cause interest on any bond to become subject to federal income taxes in addition to federal income taxes to which interest on such bond is subject on the date of original issuance thereof. The Village shall not permit any of the proceeds of the bonds, or any facilities financed with such proceeds, t° be used in any manner that would cause any bond to constitute a ~private activity bond" within the meaning of Section 141 of the internal Revenue Code of 1986. The Village shall not permit any of the proceeds of the bonds or other moneys to be invested in any manner that WOUld Cause any bond to constitute an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986 or a "hedge bond" within the meaning of Section 149(g) of the Internal Revenue Code of 1986. The Village shall comply with the provisions of Section 148(f) of the Internal Revenue Code of 1986 relating to the rebate of certain investment earnings at periodic intervals to the United States of America. Section 13. Continuing Disclosure. For the benefit of the beneficial owners of the bonds, the Village covenants and agrees to provide an annual report containing -18- certain financial information and operating data relating to the Village and to provide notices of the occurrence of certain enumerated events, if material. The annual report shall be filed with each Nationally Recognized Municipal Securities Information Repository and with the Illinois state information depository, if any, within 210 days after the close of the Village's fiscal year. The information to be contained in the annual report shall consist of the annual audited financial statement of the Village and such additional information as noted in the Official Statement under the caption "Continuing Disclosure." Each annual audited financial statement will conform to generally accepted accounting principles applicable to governmental units and will be prepared in accordance with standards of the Governmental Accounting Standards Board. Ifthe audited financial statement is not available, then an unaudited financial statement shall be included in the annual report and the audited financial statement shall be filed within 30 days after it becomes available. The Village also covenants and agrees, for the benefit of the beneficial owners of the bonds, to provide timely notice to the Municipal Securities Rulemaking Board and to the Illinois state information depository, if any, of any failure of the Village to file any such annual report within the 21© day period and of the occurrence of any of the following events with respect to the bonds, if material: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions or events affecting the tax-exempt status of the bonds; (7) modifications to rights of bondholders; (8) bond -19- calls; (9) d efeasances; (1 O) release, substitution or sale of property securing repayment of the bonds; and (11) rating changes. It is found and determined that the Village has agreed to the undertakings contained in this Section in order to assist participating underwriters of the bonds and brokers, dealers and municipal securities dealers in complying with Securities and Exchange Commission Rule 15c2-12(b)(5) promulgated under the Securities Exchange Act of 1934. The chief financial officer of the Village is authorized and directed to do and perform, or cause to be done or performed, for or on behalf of the Village, each and every thing necessary to accomplish the undertakings of the Village contained in this Section for so long as Rule 15c2-12(b)(5) is applicable to the bonds and the Village remains an ~obligated person" under the Rule with respect to the bonds. The undertakings contained in this Section may be amended by the Village upon a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of the obligated person, or type of business conducted, provided that (a) the undertaking, as amended, would have complied with the requirements of Rule 15(c)2-12(b)(5) at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances and (b) in the opinion of nationally recognized bond counsel Selected by the Village, the amendment does not materially impair the interests of the beneficial owners of the bonds. Section 14. Bond Registrar. The Village covenants that it shall at all times retain a bond registrar with respect to the bonds, that it will maintain at the designated office of such bond registrar a place where bonds may be presented for payment and -20- registration of transfer or exchange and that it shall require that the bond registrar maintain proper registration books and perform the other duties and obligations imposed upon the bond registrar by this ordinance in a manner consistent with the standards; customs and practices of the municipal securities business. The bond registrar shall signify its acceptance of the duties and obligations imposed upon it by this ordinance by executing the certificate of authentication on any bond, and by such execution the bond registrar shall be deemed to have certified to the Village that it has all requisite power to accept, and has accepted such duties and obligations not only with respect to the bond so authenticated but with respect to all the bonds. The bond registrar is the agent of the Village and shall not be liable in connection with the performance of its duties except for its own' negligence or default. The bond registrar shall, however, be responsible for any representation in its certificate of authentication on the bonds. The Village may remove the bond registrar at any time. In case at any time the bond registrar shall resign or shall be removed or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator of the bond registrar, or of its prOperty, shall be appointed, or if any public officer shall take charge or control of the bond registrar or of its property or affairs, the Village covenants and agrees that it will thereupon appoint a successor bond registrar. The Village shall mail notice of any such appointment made by it to each registered owner of bonds within twenty days after such appointment. Section 15. Book-Entry System. In order to provide for the initial issuance of the bonds in a form that provides for a system of book-entry only transfers, the -21- ownership of one fully registered bond for each maturity, in the aggregate principal amount of such maturity, shall be registered in the name of Cede & Co., as a nominee of The Depository Trust Company, as securities depository for the bonds. The Village Treasurer is authorized to execute and deliver on behalf of the Village such letters to, or agreements with, the securities depository as shall be necessary to effectuate such bool(-entry system. The Village may remove the securities depository at any time. In case at any time the securities depository shall resign or shall be removed or shall become incapable of acting, then the Village shall appoint a successor securities depository to provide a system of book-entry only transfers for the bonds, by written notice to the predecessor securities depoSitorY direCting it to notify its participants (those persons for whom the securities depository holds securities) of the appointment of a successor securities depository. The Village may terminate the system of book-entry only transfers for the bonds at any time, by written notice to the securities depository directing it to notify its participants of the availability of bond certificates. In such event,.the Village shall issue and the bond registrar shall authenticate, register and deliver to the beneficial owners of the bonds, bond certificates in replacement of such beneficial owners' beneficial interests in the bonds, all as shown in the records maintained by the securities depository. Section 16. Defeasance and Payment of Bonds. (A) If the Village shall pay or cause to be paid to the registered owners of the bonds, the principal and interest due or to become due thereon, at the times and in the manner stipulated therein and in this -22- ordinance, then the pledge of taxes, securities and funds hereby pledged and the covenants, agreements and other obligations of the Village to the registered owners and the beneficial owners of the bonds shall be discharged and satisfied. (B) Any bonds or interest installments appertaining thereto, whether at or prior to the maturity or the redemption date of such bonds, shall be deemed to have been paid within the meaning of paragraph (A) of this Section if (1) in case any such bonds are to be redeemed prior to the maturity thereof, there shall have been taken all action necessary to call such bonds for redemption and notice of such redemption shall have been duly given or provision shall have been made for the giving of such notice, and (2) there shall have been deposited in trust with a bank, trust company or national banking association aCfin~ ~S fiduciary for Such purPose either (i) moneys in an amount which shall be sufficient, or ~ii) ~Federal Obligations" as defined in paragraph (C) of this Section, the principal of and the interest on which when due will provide moneys which, together with any moneys on deposit with such fiduciary at the same time for such purpose, shall be sufficient, to pay when due the principal of and interest due and to become due on said bonds on and prior to the applicable redemption date or maturity date thereof. (C) As used in this Section, the term "Federal Obligations" means (i) non- callable, direct obligations of the United States of America, (ii) non-callable and non- prepayable, direct obligatiOns of any agency of the United States of America, which are unconditionally guaranteed by the United States of America as to full and timely payment of principal and interest, (iii) non-callable, non-prepayable coupons or interest installments from the securities described in clause (i) or clause (ii) of this paragraph, -23- which are stripped pursuant to programs of the Department of the Treasury of the United States of America, or (iv) coupons or interest installments stripped from bonds of the Resolution Funding Corporation. Section 17. Ordinance to Constitute a Contract. The provisions of this ordinance shall constitute a contract between the Village and the registered owners of the bonds. Any pledge made in this ordinance and the provisions, covenants and agreements herein set forth to be performed by or on behalf of the Village shall be for the equal benefit, protection and security of the owners of any and all of the bonds. All of the bonds, regardless of the time or times of their issuance, shall be of equal rank without preference, priority or distinction of any of the bonds over any other thereof except as expressly provided in or pursuant to this ordinance. This ordinance shall constitute full authority for the issuance of the bonds and to the extent that the provisions of this ordinance conflict with the provisions of any other ordinance or resolution of the Village, the provisions of this ordinance shall control. If any section, paragraph Or provision of this ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, parag[aph or provision shall not affect any of the remaining provisions of this ordinance. Section 18. Publication. The Village Clerk is hereby authorized and directed to publish this ordinance in pamphlet form and to file copies thereof for public inspection in her office. Section 19. Effective Date. This ordinance shall become effective upon its passage, approval and publication in pamphlet form. -24- List Names Adopted this 21't day of May, 2002, by roll call vote as follows: Ayes: Nays: Approved: May 21, 2002 Village President Published in pamphlet form: May 22, 2002 (SEAL) Attest: Village Clerk -25- Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM DATE: MAY 15, 2002 SUBJECT: PROPOSED LEASE TERMS FOR TV SERVICES RELO("' In anticipation of the relocation of TV Services during the construction of the new Village Hall staff has entered into discussions with the Mt. Prospect Park District to utilize unused space at the Central Community Center (CCC) and the cable ready beard room. Discussions with the Park District have been very friendly and the Park District is quite interested in assisting the Village wherever possible. Details for the Proposed Lease Aqreement: Attached is a copy of the projected cost schedule for the use of the cable-ready board room at the CCC. You will note that the Mt. Prospect Park District is proposing to charge the Village $25 per hour, or a maximum of $75 per meeting, for Village Board meetings and Planning/Zoning meetings (all televised meetings). The standard charge of $75 would be for a meeting of any length and it is assumed that the time dedicated to meetings will balance out and be very near the typical 3-hour charge. The Park District must also allow the TV Services personnel access to the room for set-up purposes a minimum of two hours before the scheduled meeting time which effectively keeps the room from being utilized from the late afternoon through the end of a meeting on meeting days. The proposed schedule assumes that there are four meetings per month and does not account for the summer meeting schedule of only three meetings per month. Regardless of the number of meetings, the charge of $75 per meeting dOes not appear to be unreasonable since the Park District would have to have an employee in the building during all meeting times and such expense is assumed in the proposed cost. The proposed rate is typical for meeting room use. The Park District would also allow the Village to utilize an interior meeting room for closed sessions at no charge. The proposed rates would be for the period of July 2002 to June 2003, with a renewal' at conclusion of the period. The Park District did not want to commit to a multi-year agreement with regard to rental cost until some experience was obtained. Park Distdct staff has assured Village staff that the cost will not likely change significantly, if at all, for the PROPOSED LEASE TERMS FOR TV SERVICES RELOCATION May 15, 2002 Page 2 following year(s). Based on the projected number of televised meetings (Village Board projected maximum cost: $3450; Planning/Zoning projected maximum cost: $1800)the maximum projected cost for room rental for televised meetings is $5250. Cable TV Operations Office Space: The use of the currently vacant Cyber Caf~ at the Central Community Center would be an additional cost for TV Services office space. The Village and Park District staffs have tentatively negotiated a lease rate of $9 per square foot for the 864 SF of Cyber Caf6 office space. The lease rate includes the utility costs and the use of the Park District phone system. Using the $9 per square foot cost the Cyber Cafb rent would be projected at $7776 per year. Set-up Costs: Cable Broadcast Costs: Village staff has confirmed with the two cable providers (AT&T and Wide Open West (WOW)) that the CCC will require a fiber cable connection to allow for TV broadcast purposes of meetings and programming. The equipment necessary for broadcast purposes would be relocated to CCC from the Senior Center by the Public Works department, so no additional moving expenses would be incurred. The projected cost for the AT&T connection into the CCC is $6600, this connection would be brought under Central Road into the CCC. The projected cost for the WOW connection into CCC is $13,850. Again this connection would be brought under Central Road, but only after the fiber has been extended some 1000' to the point it can be placed under the street. The projected total expense is $20,450 for both cable providers. These connections would allow for the two Village channels to be broadcast from the CCC site and allow for live public meeting broadcasts of the Village Board and Planning/Zoning Commission. Village and Park District staffs have tentatively agreed that if the Park District were ever to utilize the fiber connection in the future for broadcasting purposes, the Park District would reimburse the Village 50% of the cost of the fiber connection expenses. However, the Park District has no long term plans for utilizing the connection in the future at this time. Cable Broadcast Alternative: Staff also reviewed another option for broadcasting on the two Village channels. The equipment necessary for broadcasting could be relocated into the Village Hall or Police/Fire Building and the programming could originate from one of these sites during the construction process. The cost for the connection into the Village Hall or Police/Fire Building of the necessary fiber was quoted at $2500 from WOW and $1000 from AT&T. However, if the broadcasts originate from the Village Hall or the Police/Fire Building there PROPOSED LEASE TERMS FOR TVSERVICES RELOCATION May15,2002 Page 3 will be NO live Village Board and Planning/Zoning meetings, all meetings will be on tape delay. Also with the staff from TV Services operating out of the CCC there would substantial travel required between the two sites for equipment monitoring and programming. Such an arrangement would likely increase the frequency of the station(s) going "dark" because of the limited ability to monitor breakdowns on a timely basis. For example, if there was a programming glitch that caused the system to terminate broadcasts there would be a delay until someone from TV Services could reset the equipment instead of resetting it on the fly, if they were on site. This same situation currently exists during the weekends, if the system needed to be reset. Computer Data Link Cost: MIS Coordinator Joan Middleton has researched the equipment necessary to allow the staff from TV Services to continue to utilize the Village computer and e-mail systems. The equipment and installation cost has been quoted at $1629. this cost would be a one-time expenditure and would operate the entire period that the TV Services staff were operating out of the CCC. Cost Summary: Proposed Televised Board Room Rental Cost: $ 5250 Proposed Office Space Rental Cost: $ 7776 Proposed Set-up Costs: $20,450* Proposed Computer Connection: $ 1629 Total: $35,105 *Proposed price assumes the connection at the Central Community Center (CCC) instead of the Village Hall. If the connection were made at the Village Hall the total cost would be reduced to $18,155 instead of $35,105. Bud.qet Issues: The 2002 Budget includes $22,300 for TV Services relocation. It is estimated that the relocation expenses for Human Services will come in below the 2002 budgeted amount of $130,000, so the balance of the expense necessary for the TV Services relocation can be absorbed into the savings anticipated by the Human Services relocation. The lease and set-up expenses for the relocation of Human Services is expected to be concluded within the next 30 days. Once there is a tentative lease agreement and quotes on other set-up costs staff will come before the Village Board for approval. ROPOSED LEASE TERMS FOR TV SERVICES RELOCATION May 15, 2002 Page 4 Recommendation: Staff would recommend Village Board approval to enter into a lease with the Mt. Prospect Park District to rent the board room for broadcast purposes at a maximum cost of $5250 for the period of July 1,2002 through June 30, 2003. The lease would be renewed as needed until the Village Hall construction is completed. Staff would recommend Village Board approval to enter into a lease with the Mt. Prospect Park District for 864 square feet (Cyber Caf6) at a cost of $7776 for the period of July 1, 2002 through June 30, 2003. The lease would be renewed as needed until the Village Hall construction is completed. Staff would recommend Village Board approval to contract with AT&T to make the necessary fiber connections into the Central Community Center for channel broadcast purposes for an amount not to exceed $6600. Staff would recommend Village Board approval to contract with Wide Open West (WOW) to make the necessary fiber connections into the Central Community Center for channel broadcast purposes for an amount not to exceed $13,850. Staff would recommend Village Board approval to contract with Bartlett-Bishop Enterprises to purchase and install the necessary computer communication equipment in the Central Community Center in an amount not to exceed $1629 to allow TV Services personnel to utilize the Village computer system, If you have any questions, please contact me. David Strahl c: Cable Production Coordinator Ross Rowe H:\GEN\Village Hall\TV Service Relocation MPPD Proposal.doc Mt., Prospect Park District 1000 W. Central Road · Mt. Prospect, IL 60056-2223 · (847) 255-5380 · Fax (847) 255-1438 Mt. Prospect Park District Board Room Rental at Park Affiliated Rates is $25.00 per hour. Village Trustee Meetings - 4 (3 during summer) Tuesdays per month July 3 meetings ~ 3 hours each ~$25/hr. z $75/mtg $225.00 August 3 meetings ~ 3 hours each ~$25/hr. - $75/mtg $225.00 September 4 meetings @ 3 hours each @$25gnr~ - $75/mtg $300.00 October 4 meetings @ 3 hours each @$25gnr. - $75/mtg $300.00 November 4 meetings ~ 3 hours each ~$25/hr. - $75/mtg $300.00 December 4 meetings ~ 3 hours each @$25gnr. - $75/mtg $300.00 January 4 meetings ~ 3 hours each ~$25/hr. - $75/mtg $300.00 February 4 meetings ~ 3 hours each ~$25/hr. - $75/mtg $300.00 March 4 meetings ~ 3 hours each ~$25/hr. - $75/mtg $300.00 April 4 meetings ~ 3 hours each ~$25/hr. - $75/mtg $300.00 May 4 meetings @ 3 hours each ~$25/hr. - $75/mtg $300.00 June 4 meetings ~ 3 .hours each ~$25Rtr. ~ $75/mtg $300.00 Village Trustee Meetings Total $3,450.00 Village Zoning Board Meetings - 2 Thursdays per month July 2 meeting ~ 3 hours each ~$25/hr - $75/mtg $150.00 August 2 meeting ~ 3 hours each ~$25/hr ~ $75/mtg $150.00 September 2 meeting ~ 3 hours each @$25/hr - $75/mtg $150.00 October 2 meeting ~ 3 hours each ~$25/hr - $75/mtg $150.00 November 2 meeting ~ 3 hours each ~$25/hr - $75/mtg $150.00 December 2 meeting ~ 3 hours each ~$25/hr - $75/mtg . . $150.00 January 2 meeting ~ 3 hours each ~$25?hr - $75/mtg $150.00 February 2 meeting @ 3 hours each @$25/hr - $75/mtg $150.00 March 2 meeting ~ 3 hours each ~$25/hr -$75/mtg $150.00 April 2 meeting.~ 3 hours each @$25/hr - $75/mtg $150':00 May 2 meeting @ 3 .hours each ~$25/hr - $75/mtg $150.00 ~June 2 -meeting ~ 3 hours each ~$25/hr - $75/mtg $150.00 Village Zoning Board Meetings Total GRAND TOTAL $1,800.00 $5,250.00 Serving Portions of Mt. Prospect · Oes Plaines * Arlington Heights · Elk Grove Village VWL 5/15/02 RESOLUTION NO. A RESOLUTION AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE MOUNT PROSPECT PARK DISTRICT AND THE VILLAGE OF MOUNT PROSPECT FOR OFFICE SPACE AT 1000 WEST CENTRAL ROAD WHEREAS, the Mount Prospect Park Distdct is the owner of property located at 1000 West Central Road; and WHEREAS, the properly referenced herein is used for the operations of the Mount Prospect Park District; and WHEREAS, it has been determined that the best interests of the Village of Mount Prospect would be served by leasing office space at 1000 West Central Road to the Village of Mount Prospect TV Services Division, for the purpose of conducting daily operations and broadcasting meetings of the Mount Prospect Village Board and the Mount Prospect Planning and Zoning Commission. NOW, THEREFORE, BE IT RESOLVED BYTHE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: The Mayor and Board of Trustees of the Village of Mount Prospect do hereby authorize execution of a Lease between the Mount Prospect Park District and the Village of Mount Prospect for the purpose of conducting daily operations and broadcasting meetings of the Mount Prospect Village Board and the Mount Prospect Planning and Zoning Commission from offices at 1000 West Central Road, a copy of the lease attached hereto and hereby made a part hereof as "Exhibit SECTION TWO: This Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this · day of ,2002. ATTEST: Gerald L. Farley Mayor Velma W. Lowe Village Olerk