HomeMy WebLinkAbout6. New Business 02/21/2012Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO: MICHAEL E. JANONIS, VILLAGE MANAGER
FROM: FINANCE DIRECTOR
DATE: FEBRUARY 15, 2012
SUBJECT: PROPOSED WATER AND SEWER RATE INCREASE
PURPOSE:
To present for the Board's consideration an ordinance increasing the Village's water and sewer
rates.
BACKGROUND:
The Village follows the practice of approving moderate annual increases in water and sewer
rates, as opposed to implementing large increases periodically. The 2012 Budget included a
5.0% increase in water and sewer rates. This rate increase became effective with billings after
January 1, 2012. Results from an updated five -year rate study prepared in response to the City
of Chicago water rate increase indicate a need for a subsequent rate adjustment of 9.5% for
billings after May 1, 2012.
DISCUSSION:
Attachment A is a summary of water and sewer rate projections needed to support the water
and sewer fund over the next five years. This five -year forecast includes the rate increases
scheduled by the City of Chicago for the supply of water through the Joint Action Water Agency.
Also built into the calculations is the gradual reduction in the Special Service Area (SSA) #5
property tax levy. The SSA #5 levy will be reduced over a period of six years from its current
$1.5 million to $0. The summary table shows the projected water rate (column a), projected
sewer rate (column b), the combined total rate (column c) and percent increase from the prior
year (column d). Based on the forecast, rates in the first year are projected to go up 13.2 %.
The larger first -year increase is due to the extraordinary rate increase (25.0 %) from the City of
Chicago that went into effect on February 15. Increases to the water and sewer rates generated
from the study range from 6.5% to 9.1 % over the following four years of the forecast.
A level rate increase scenario, similar to the one found in the five -year forecast, was presented
to the Village Board at the January 24 Committee of the Whole. The level rate scenario
smoothes the rate spikes expected over the next four years. Using the level rate scenario, the
increase becomes 9.5% (versus 13.2% using five -year forecast). The increase in the following
two years is also projected at 9.5 %. The projected rate increase drops to 9.0% and 5.0% for
2015 and 2016 respectively. Detail on the proposed rates and percent increase using the level
rate scenario is shown in columns (e) and (f) of the forecast.
Water and Sewer Rate Increase
February 15, 2012
Page 2
The following table illustrates the recommended rates as reflected in the proposed ordinance.
Inside Village
Current Rate
Per 1,000 Gallons
Proposed Rate
Per 1,000 Gallons
Percent
Change
Water
$5.31
$5.98
12.6%
Sewer
$1.71
$1.71
0.0%
Combined
$7.02
$7.69
9.5%
For sewer users not connected to the Village's water system, whether located inside or outside
the Village, the monthly charge per dwelling unit will not change from the current rate of $4.58.
No increase is proposed for the $5.00 per month sewer construction fee.
If a Mount Prospect household uses 15,000 gallons of water over a two -month period, their
bimonthly water and sewer usage fee would be $125.35, an increase of $10.05 from the current
rate.
No increase is being proposed for the monthly availability charge assessed customers outside
of Special Service Area No. 5. For most customers, those with a 5/8" water line, the charge will
remain at $10.
RECOMMENDATION:
It is recommended the Village Board approve the attached ordinance increasing water and
sewer rates effective for bills rendered on or after May 1, 2012.
David O. Erb
Finance Director
DOE/
CADocuments and Settings \derb \Local Settings \Temporary Internet Files \Content.Outlook \LX8XUAY4 \Board Memo -
February 2012.docx
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Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO: MICHAEL E. JANONIS, VILLAGE MANAGER
FROM: FINANCE DIRECTOR
DATE: JANUARY 20, 2012
SUBJECT: WATER & SEWER RATE STUDY
PURPOSE
To present the results of a water and sewer rate study conducted for the purpose of determining
funding needs for water and sewer operations.
BACKGROUND
A water and sewer rate study is done each year during the budget process to determine an
appropriate combined utility rate for water and sewer service for the upcoming year.
Subsequent to the 2012 budget process the Village was notified that the City of Chicago (Mount
Prospect's Lake Michigan water supplier) will implement a four year extraordinary water rate
increase amounting to 25% in 2012 and 15% in each of the three subsequent years. This will
likely result in a supplemental and potentially substantial increase in municipal water and sewer
rates (over and above the 5% programmed increase) early in 2012. In response to this news, a
revised water rate study was conducted to determine the extent of an increase absent any
adjustments to the water and sewer budget. The study takes into consideration the regular
growth in operating expenses, ongoing capital needs, and the pending City of Chicago water
rate increase.
DISCUSSION
The Water and Sewer Fund is classified as a Proprietary Fund, which means revenue
generated through user charges and other water and sewer related functions is intended to fully
support the operation of the fund.
An analysis was conducted on the water and sewer fund to determine the appropriate level of
user charges needed to support regular operating expenditures. Expenditures include the
programmed increase in water charges by the City of Chicago. Included in the attachments are
summary sheets of the results of the study. Attachment A is a summary of projected operating
and capital expenses for the five -year period 2012 -2016. Attachment B is a summary of water
and sewer rate projections needed to support the projected spending plan during the same five -
year period. Attachments C1 -05 are the individual rate calculation sheets illustrating how the
rate projections were derived. Attachment D is a summary of rates being charged by other
JAWA communities, Mount Prospect residents supplied by Illinois American Water and select
neighboring communities. An explanation of each of the attachment will follow.
Attachment A is a summary of projected operating and capital expenses for the five -year
period beginning 2012. This information was pulled from the 2012 Budget with no changes
Water & Sewer Rate Study
January 20, 2012
Page 2
except for one item. Total capital expenditures for the 2013 Forecast were proposed at
$4,343,000. In preparing the rate study, the annual amount of capital spending was limited to
$2.5 million for 2013 and all the remaining years of the study.
Column (a) of Attachment A shows total annual expenditures for the Water and Sewer Fund.
Columns (b -d) show capital expenditures broken down by water and sewer functions with a sub-
total for all capital expenditures. Columns (e -g) show the operating expenditures again broken
down by water and sewer with an operating sub - total. The final column, column (h) is the
average growth in operating expenditures over the five -year period. Based on this information,
the growth in operating expenditures averages 6.33°/x. The annual increase to water rates has
been 4 -5% the past several years. This was done to have more moderate increases on a
regular basis than large spikes to the rate every few years.
Attachment B is a summary of water and sewer rate projections needed to support the
projected spending plan during the five -year period. The summary table shows the projected
water rate, projected sewer rate, the combined total rate and percent increase from the prior
year. Based on the current spending plan, rates in the first year are projected to go up 13.2 %.
This is in addition to the 5.0% programmed increase that went into effect January 1, 2012. The
larger first -year increase is due to the extraordinary rate increase (25.0 %) from the City of
Chicago that also went into effect on January 1. Increases to the water and sewer rates
generated from the study range from 2.5% to 8.3% over the next four years.
Attachments C1 through C5 are the individual rate calculation worksheets illustrating how the
rate projections were derived. The top section of each worksheet includes the formula used to
arrive at the projected water rate. The water rate includes both an operating and a capital
expense component. Revenues generated outside the water charge are deducted from total
expenses. For water purposes these are Special Service Area taxes and other miscellaneous
revenues (interest income, tap -on fees, etc.). The new total is then divided by estimated
number of gallons billed (1.3 billion) to come up with the projected water rate. As a side note,
the Special Service Levy adds approximately $1.19 per 1,000 gallons to the water rate
and is set to expire in 2017 per Village Ordinance.
The next section of the worksheet includes the formula used to arrive at the projected sewer
rate. Again, the sewer rate consists of an operating and a capital expense component. Like the
water rate, revenues generated outside of sewer charges are deducted from total expenses.
For sewer purposes this includes the sewer construction fee, interest income and other
miscellaneous revenues. The new total is then divided by estimated number of gallons billed to
come up with the projected sewer rate.
The third section of the worksheet provides information on the current rate and proposed rate
according to the expenditure formula. This section also includes the dollar and percent increase
from the current rate to the proposed rate adjustment. For example, on Attachment C1, the
current water rate is $5.31. The current sewer rate is $1.71 for a total combined rate of $7.02.
The proposed rate per the formula is $6.27 for water and $1.67 for sewer for a total combined
rate of $7.94. The rate increase to support the new rates by City of Chicago is $0.92 or 13.2 %.
The same methodology is used to determine water and sewer rates for years two through five of
the study.
Water & Sewer Rate Study
January 20, 2012
Page 3
Attachment D is a summary of rates being charged by other JAWA communities, Mount
Prospect residents supplied by Illinois American Water and select neighboring communities.
The current Mount Prospect combined rate for those users on the Village water system is $7.02
(per 1,000 gallons). The average rate among the communities surveyed is $7.07 with a high
rate being charged to Mount Prospect residents serviced by Illinois American Water, $6.82 plus
monthly service fee of $50.11. The low rate is from Arlington Heights with a rate of $4.74 plus a
monthly service fee of $5.20.
CONCLUSION
Barring any relief from the City of Chicago from their planned rate increase or significant
reductions in operating or water system capital projects, the increase to rates resulting from the
study are necessary to maintain funding needed to support ongoing operations. The additional
cost to the typical homeowner as a result of implementing the rate increase in year one is
$82.80 per year (assuming 15,000 gallons of usage every two months).
Another item that will need to be addressed is the elimination of the Special Service Area #5
levy which is set to expire in 2017. Options for dealing with this loss of revenue include: 1) a
level reduction approach (having smaller, regular reductions in the levy beginning in 2012) or, 2)
deferring reduction of the levy until the programmed increases from the City of Chicago are
absorbed (2015 levy). The level reduction scenario will add an additional $0.17 to the water
rate beginning in 2013 while the deferred reduction scenario will add an additional $0.29 to the
water rate beginning in 2016.
Information provided with this memo will be included in my presentation on the water rate study
at the January 24 Committee of the Whole meeting. Please let me know if you have any
additional questions.
DAVID O. ERB
FINANCE DIRECTOR
DOE
Copy: Finance Commission
lAWater & Sewer\2012 Rate Increase \Strategic Planning Meeting - January 2012\2012 W &S Rate Study.docx
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Attachment B
Village of Mount Prospect
Water /Sewer Rate Summary
2012-2016
Year Water Rate Sewer Rate Total Rate
% Increase
Current Water a Sewer Rates
2012
$5.31
Proposed Water and Sewer Rates
$1.77
2012
$6.27
2013
$6.61
2014
$7.27
2015
$7.76
2016
$7.98
$1.71 $7.02
4.93%
$1.67
$7.94
13.2%
$1.77
$8.37
5.4%
$1.79
$9.06
8.3%
$1.82
$9.58
5.7%
$1.84
$9.82
2.5%
Attachment C -1
Village of Mount Prospect
Water and Sewer Rate Calculation
2012 Budget Year
Water Rate
Formula:
WR= (OP +DS + Cap - SSA5 - OR) /Vol
Where:
WR = Water Rate SSA5 = Special Service Area #5 Tax Revenue
OP = Operations Expenditures OR = Other Revenue
DS = Debt Service Expenditures Vol = Annual Water Billing ( per 1,000 gallons)
Cap = Capital Expenditures
WR = (OP + DS + Cap - SSA5 - OR) / Vol
$6.27 8,419,237 0 1,417,800 (1,516,000) (164,500) 1,300,000
Sewer Rate
Formula:
SR= (OP +DS + Cap -OR -new rev) /Vol
Where
SR = Sewer Rate OR = Other Revenue
OP = Operations Expenditures Vol = Annual Water Billing ( per 1,000 gallons)
DS = Debt Service Expenditures SWR Fee = $5 per month, per account fee
Cap = Capital Expenditures
SR = (OP + DS + Cap - OR - SWR Fee)/ Vol
$1.67 1,576,638 0 1,415,000 (34,500) (786,000) 1,300,000
Water Sewer Total
Total Current Rate $5.31 $1.71 $7.02
2012 Proposed Rate Per Expenditure Formula $6.27 $1.67 $7.94
$ Increase $0.92
% Increase 13.2%
Attachment C -2
Village of Mount Prospect
Water and Sewer Rate Calculation
2013 Budget Year
Water Rate
Formula:
WR = (OP + DS + Cap - SSA5 - OR) / Vol
Where:
WR = Water Rate SSA5 = Special Service Area #5 Tax Revenue
OP = Operations Expenditures OR = Other Revenue
DS = Debt Service Expenditures Vol = Annual Water Billing ( per 1,000 gallons)
Cap = Capital Expenditures
WR = (OP + DS + Cap - SSA5 - OR) / Vol
$6.61 9,268,885 0 1,000,000 (1,516,000) (164,500) 1,300,000
Sewer Rate
Formula:
SR = (OP + DS + Cap - OR - new rev) / Vol
Where:
SR = Sewer Rate
OR = Other Revenue
OP = Operations Expenditures
Vol = Annual Water Billing ( per
1,000 gallons)
DS = Debt Service Expenditures
SWR Fee = $5 per month, per account fee
Cap = Capital Expenditures
SR= (OP + DS +
Cap - OR -
SWR Fee)/ Vol
$1.77 1,615,765
0 1,500,000 (34,500)
(786,000) 1,300,000
Water Sewer
Total
2012 Rate Per Expenditure Formula
$6.27 $1.67
$7.94
2013 Rate Per Expenditure Formula
$6.61 $1.77
$8.37
$ Increase[
ncrease
$0.43
% Increase
5.4%
Attachment C -3
Village of Mount Prospect
Water and Sewer Rate Calculation
2014 Budget Year
Water Rate
Formula:
WR = (OP + DS + Cap - SSA5 - OR) / Vol
Where:
WR = Water Rate
OP = Operations Expenditures
DS = Debt Service Expenditures
Cap = Capital Expenditures
WR = (OP + DS +
$7.27 10,136,046 0
SSA5 = Special Service Area #5 Tax Revenue
OR = Other Revenue
Vol = Annual Water Billing ( per 1,000 gallons)
Cap - SSA5 - OR) /
1,000,000 (1,516,000) (164,500)
Vol
1,300,000
Sewer Rate
Formula:
SR = (OP + DS + Cap - OR - new rev) / Vol
Where:
SR = Sewer Rate
OR = Other Revenue
OP = Operations Expenditures
Vol = Annual Water Billing ( per 1,000 gallons)
DS = Debt Service Expenditures
SWR Fee = $5 per month, per account fee
Cap = Capital Expenditures
SR= (OP + DS +
Cap - OR - SWR Fee)
Vol
$1.79 1,648,080 0
1,500,000 (34,500) (786,000)
1,300,000
Water Sewer Total
2013 Rate Per Expenditure Formula
$6.61 $1.77 $8.37
2014 Rate Per Expenditure Formula
$7.27 $1.79 $9.06
$ Increasel $0.69
% Increase 8.3%
Attachment C -4
Village of Mount Prospect
Water and Sewer Rate Calculation
2015 Budget Year
Water Rate
Formula:
WR = (OP + DS + Cap - SSA5 - OR) / Vol
Where:
WR = Water Rate SSA5 = Special Service Area #5 Tax Revenue
OP = Operations Expenditures OR = Other Revenue
DS = Debt Service Expenditures Vol = Annual Water Billing ( per 1,000 gallons)
Cap = Capital Expenditures
WR = (OP + DS + Cap - SSA - OR) / Vol
$7.76 10,772,669 0 1,000,000 (1,516,000) (164,500) 1,300,000
Sewer Rate
Formula:
SR = (OP + DS + Cap - OR - new rev) / Vol
Where:
SR = Sewer Rate OR = Other Revenue
OP = Operations Expenditures Vol = Annual Water Billing ( per 1,000 gallons)
DS = Debt Service Expenditures SWR Fee = $5 per month, per account fee
Cap = Capital Expenditures
SR = (OP + DS + Cap - OR - SWR Fee)/ Vol
$1.82 1,681,042 0 1,500,000 (34,500) (786,000) 1,300,000
Water Sewer Total
2014 Rate Per Expenditure Formula $7.27 $1.79 $9.06
2015 Rate Per Expenditure Formula $7.76 $1.82 $9.58
$ Increase $0.52
%Increase 5.7%
Attachment C -5
Village of Mount Prospect
Water and Sewer Rate Calculation
2016 Budget Year
Water Rate
Formula:
WR= (OP +DS + Cap - SSA5 - OR) /Vol
Where:
WR = Water Rate SSA5 = Special Service Area #5 Tax Revenue
OP = Operations Expenditures OR = Other Revenue
DS = Debt Service Expenditures Vol = Annual Water Billing ( per 1,000 gallons)
Cap = Capital Expenditures
WR = (OP + DS + Cap - SSA5 - OR) / Vol
$7.98 11,048,407 0 1,000,000 (1,516,000) (164,500) 1,300,000
Sewer Rate
Formula:
SR= (OP +DS + Cap -OR -new rev) /Vol
Where:
SR = Sewer Rate OR = Other Revenue
OP = Operations Expenditures Vol = Annual Water Billing ( per 1,000 gallons)
DS = Debt Service Expenditures SWR Fee = $5 per month, per account fee
Cap = Capital Expenditures
SR= (OP + DS + Cap - OR - SWR Fee)/ Vol
$1.84 1,714,663 0 1,500,000 (34,500) (786,000) 1,300,000
Water Sewer Total
2015 Rate Per Expenditure Formula $7.76 $1.82 $9.58
2016 Rate Per Expenditure Formula $7.98 $1.84 $9.82
$ Increase $0.24
% Increase 2.5%
Attachment D
Village of Mount Prospect, Illinois
Water Rate Comparison
JAWA Communities, Neighboring Communities
and Illinois American Water (MP)
Water
JAWA Communites
$7.25
Elk Grove Village
$5.50
Hanover Park
$4.91
Hoffman Estates
$4.67
Mount Prospect
$5.31
Rolling Meadows
$7.40
Schaumburg
$5.48
Streamwood
$5.54
Neighboring Communities
$2.48
Arlington Heights
$4.14
Des Plaines
$5.45
Illinois American Water
$5.20
Mount Prospect
6.76
High
Rolling Meadows
Low
Arlington Heights
Average
All Communities
Monthly
Sewer Total Service Fee
$1.75
$7.25
$0.00
$1.85
$6.76
$0.00
$0.98
$5.65
$0.00
$1.71
$7.02
$0.00
$2.50
$9.90
$3.00
$1.14
$6.62
$2.48
$3.69
$9.23
$0.00
$0.60
$4.74
$5.20
$1.22
$6.67
$0.00
0.06
$6.82
$50.11
$9.90
$4.74
$7.07
(1)
(1)
Notes:
(1) Rates adjusted for increase from City of Chicago.
ORDINANCE NO.
AN ORDINANCE TO AMEND WATER AND SEWER RATES SET FORTH IN
APPENDIX A, DIVISION II OF THE VILLAGE CODE
Passed and approved by
the President and Board of Trustees
the day of March, 2012.
Published in pamphlet form by authority
of the corporate authorities of the
Village of Mount Prospect, Illinois,
the day of March, 2012.
ORDINANCE NO.
AN ORDINANCE TO AMEND WATER AND SEWER RATES SET FORTH IN
APPENDIX A, DIVISION II OF THE VILLAGE CODE
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE That Section 22.504.2 entitled "Water Rates" of Appendix A, Division II of the Village Code,
as amended, is hereby further amended in its entirety; so that hereinafter said Section 22.504.2 of Appendix A,
Division II shall be and read as follows:
" See. 22.504.2 WATER RATES:
A. All village users within the village, having a direct or indirect connection with village water mains or
pipes: $5.98 per 1,000 gallons of water consumed or portion thereof.
All village users outside the corporate limits of the village having a direct or indirect connection with
village water mains or pipes: $11.96 per 1,000 gallons of water consumed or portion thereof.
All village users located outside the boundaries of Special Service Area Number 5 shall pay an
additional monthly availability charge based upon the size of the water meter as follows:
5/8 inch meter
$ 10.00
3 /4 inch meter
$ 15.00
1 inch meter
$ 30.00
1% inch meter
$ 50.00
2 inch meter
$ 90.00
3 inch meter
$150.00
4 inch meter
$250.00
6 inch meter
$475.00
8 inch meter
$990.00
B. Hook -up charge for water furnished by the truckload: $10.00."
SECTION TWO That Section 22.504.3 entitled "Sewer Rates" of Appendix A, Division II of the Village
Code, as amended, is hereby further amended in its entirety; so that hereinafter said Section 22.5043 of
Appendix A, Division II shall be and read as follows:
" See. 22.504.3 SEWER RATES:
C. All village seNver users within the corporate limits of the village having a direct or indirect connection
with the village seNver and water mains or pipes: $1.71 per 1,000 gallons of water consumed or portion
thereof.
All village sewer users within the corporate limits of the village having a direct or indirect connection
with the village's sewer mains or pipes and not with the village water mains or pipes: $4.58 per month
per dwelling unit.
All village sewer users outside the corporate limits of the village having a direct or indirect connection
with the village's water and sewer mains or pipes: $1.71 per 1,000 gallons of water consumed or
portion thereof.
All village sewer users outside the corporate limits of the village having a direct or indirect connection
with the village's sewer mains or pipes, but not with village water mains or pipes: $4.58 per month per
dwelling unit."
SECTION THREE That the fees set forth in this Ordinance shall be applied to all water and sewer bills
rendered on or after Mav 1, 2012.
SECTION FOUR That this Ordinance shall be in full force and effect from and after its passage, approval and
publication in pamphlet form in the manner provided by law.
AYES:
NAYS:
ABSENT:
PASSED and APPROVED this day of 2012.
Irvana K. Willcs, Village President
ATTEST:
M. Lisa Angell, Village Cleric
Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO: VILLAGE MANAGER t'J
FROM: PUBLIC INFORMATION OFFICER ZI
DATE: FEBRUARY 16, 2012
SUBJECT: PUBLIC ART PROJECT
Background 0
nt y ,. spe
Rainbow Hospice is a not - for - profit organization that recently moved to Mouct,
opening their headquarters here in the summer of 2011. Rainbow Hospice has
approached the Village to request permission for a Public Art Project to be displayed in
Mount Prospect in 2012. Prior to moving here, their main office was in Park Ridge. They
have conducted similar public art displays in Park Ridge in 2008 and 2010.
Description
Rainbow Hospice is proposing in 2012 a public art installment featuring fiberglass
butterfly sculptures titled "Promises Take Flight." The sculptures will be located in
various locations throughout Mount Prospect, Des Plaines and Park Ridge. Each
location in Mount Prospect must be approved by the Village Manager's Office. The
display will be in place from June 20 through the week of October 1.
The sculptures will be sponsored by individuals, local businesses and organizations that
will also have the responsibility of decorating them or having them decorated. The
sponsorship amount is $1,000.00 per sculpture. The proceeds of the initiative will go
toward a "Good Mourning," a bereavement program for children, teens and their
families.
Recommendation
For this as well as future projects, staff is recommending that the Village Board
establish a Public Art Policy to establish guidelines for such proposals.
1. Staff seeks approval of the proposed Public Art Policy by way of resolution.
2. Staff recommends approval of the Rainbow Hospice public art project for 2012
(pursuant to the Village's guidelines as described in the Public Art Policy).
RESOLUTION NO.
A RESOLUTION AUTHORIZING ADOPTION OF
THE VILLAGE OF MOUNT PROSPECT
"PUBLIC ART POLICY"
WHEREAS, the President and Board of Trustees supports the charitable endeavors of not - for - profit
organizations utilizing visual art displays; and
WHEREAS, the display of public art celebrates and enriches the welcoming and family - friendly
environment of our community; and
WHEREAS, the President and Board of Trustees recognize the need for a Public Art Policy that
preserves and enhances public space within the Village of Mount Prospect;
WHEREAS, it is in the best interests of the Village of Mount Prospect to adopt a "Public Art Policy" to
preserve and enhance public and private space within the Village of Mount Prospect.
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE The President and Board of Trustees of the Village of Mount Prospect do hereby
adopt the "Village of Mount Prospect Public Art Policy," attached hereto and presented as "Exhibit A."
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 February, 2012.
Irvana K. Wilks
Mayor
ATTEST:
M. Lisa Angell
Village Clerk
H: \CLKO\ WIN\ RESOLUTION \publicartpolicyfeb2012.doc
E
VILLAGE OF MOUNT PROSPECT
PUBLIC ART POLICY
PURPOSE
The purpose is to establish a policy for temporary public art displays on public and
private property.
RATIONALE
This policy allows for temporary public art displays and sets parameters for such
displays. It includes content - neutral restrictions that limit the length of time of display,
number of displays and location of display. It also includes insurance requirements.
POLICY STATEMENT (DRAFT)
1. Not - for - profit organizations located in Mount Prospect are eligible to apply to the
Village for approval to exhibit a temporary art display on designated areas of
Village property. Preference will be given to those organizations that have not
previously done a project. Only one temporary art display will be allowed at any
one time.
2. The areas available for such displays are: Village right -of -ways, as long as the
pieces do not impede pedestrian traffic or interfere with vehicular traffic, and
Village Hall property. The number of pieces that will be allowed to be displayed
will depend on the size of each individual piece and the available locations for
display. Locations of the pieces need to be mapped out specifying public
property versus private property.
3. Temporary art displays will be allowed to be displayed for a six -month period of
time, unless otherwise approved.
4. Liability insurance will be required in the amount of $2,000,000 with the Village of
Mount Prospect named as an additional insured. The organization will be
required to provide proof of such insurance coverage to the Village.
5. An organization that wishes to have a temporary public art installation will be
required to enter into an agreement with the Village regarding these
requirements. An application must be completed by the organization and
submitted to the Village by October 1 of the year prior to the proposed project.
Review and presentations to the Village Manager's office will begin in
October /November. All applications must comply with this policy.
Village of Mount Prospect Page 1 February 17, 2012
6. The Village Manager or his /her designee will review applications for temporary
art displays and make a recommendation to the Village Board regarding
approval. Art displays that comply with this policy and the following guidelines will
be recommended by for approval:
a. The display does not refer to an election or referendum;
b. The display is not obscene or defamatory; and
c. The display does not impede pedestrian traffic or create a safety or traffic
issue due to its size.
7. Pieces placed on private property must have the written permission of the
property owner and proof of such written permission should be submitted to the
Village with the executed agreement.
8. The organization will be required to place and remove the art from the
designated locations. A deposit will be required with the executed agreement to
cover any costs. The deposit will be returned once the art is removed provided
there are no expenses to the Village as a result. The amount of the deposit will
depend on the number, size and location of art displays.
9. The organization will also be required to indemnify and hold the Village harmless
from any and all claims, demands, costs, theft, vandalism and expenses,
including attorney's fees, which may arise due to the art displays on Village
property.
10. Applicant is responsible for removal of graffiti and repair of damage within 24
hours.
Village of Mount Prospect Page 2 February 17, 2012
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PROMISES TAKE FLIGHT 2012
Butterfly Temporary Public Art
Concept Proposal
to
The Village of Mount Prospect
February 9, 2012
One of Allo err 1- loo'thcxo s Bost Places to Work 2010
1550 Bishop Court
Mount Prospect, IL 60056
P:847- 685 -9900
F:847- 294 -9613
/ H o s p i c
Toll Free: 888 -70- RAINBOW
www.RainbowHospice.org
St. Joseph Hospital
2900 N. Lake Shore Drive
Manor Building
Chicago, IL 60657
P:773- 237 -5950
F:773-348-2493
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PROMISES TAKE FLIGHT 2012
Butterfly Temporary Public Art
Concept Proposal
to
The Village of Mount Prospect
February 9, 2012
One of Allo err 1- loo'thcxo s Bost Places to Work 2010
/ Hosplc(,
Rainbow hospice and Palliative Care, in a potential collaboration with the Village of
Mount Prospect, intends to embark on a temporary public art project for the Village of
Mount Prospect to be held during Summer 2012. The project is in response to the
positive results of Promise of Park Ridge 2008 and 2010.
Concept: Large, decorated, fiberglass sculptures will be displayed throughout summer
2012. The anticipated timeline is from the week following Wednesday, June 20, 2012 to
the week of October 1, 2012. These sculptures will be sponsored by individuals, local
businesses and organizations that will also have the responsibility of decorating them or
having them decorated. Sculpture sponsors will be invited to use their creativity when
decorating their individual sculpture and will be asked to stay within determined
guidelines. The uniquely decorated sculptures will add color, humor and life to the
community of Mount Prospect. Temporary public art projects create excitement and
visual appeal but also have a significant positive impact on the community as well as on
economic development.
In addition to providing the host sites, we request the assistance of the Village of Mount
Prospect with placing and securing each sculpture in its designated location and
disassembling each sculpture from its designated location. All sculptures will be placed
during the week following Wednesday, June 20, 2012. Sculptures will be disassembled
the week of October 1, 2012. Rainbow Hospice will be responsible for delivering
sculptures to a designated location as well as picking them up at the conclusion of the
project. The pieces will be stored onsite at the Rainbow Hospice office building for one
week after the completion of the project in order for sponsors to claim their sculpture(s).
After the allotted time, unclaimed sculptures will be disposed of by Rainbow Hospice.
An unveiling celebration will take place at Rainbow Hospice and Palliative Care, 1550
Bishop Court, Mount Prospect, IL 60056 on Wednesday, June 20, 2012.
2.
We are seeking the approval of the Village of Mount Prospect to display butterfly
sculptures featured in the Promises Take Flight 2012 exhibition.
In gratitude for your commitment and support, we promise to deliver a very high quality
product, thorough communication that is tailored to meet your needs and a coordinated
public relations effort. Additionally, the greatest benefit we can offer to you is a deeper
relationship with Rainbow Ilospice and Palliative Care.
Jackie Mathews, Director of Major Gifts and Special Events for Rainbow Hospice, will
serve as lead on the project. Jackie directed Promise of Park Ridge 2008 and 2010,
served as a consultant on the Cows on Parade project for the City of Chicago and has
worked with Mayor Richard M. and Mrs. Maggie C. Daley on various civic,
philanthropic and personal projects.
Contact Information:
Jackie Mathews
Director of Major Gifts and Special Events
847 - 292 -2353
imathews@rainbowhospice.org
Promises tike Might
Arrives Summer of 2012
A public art exhibition sponsored by Rainbow Hospice and
Palliative Care
For additional information and to discuss sponsorship
opportunities, please contact:
Jackie Mathews
Director of Special Events and Major Gifts
)Mathews @RainbowHospice.org
847 - 292 -2353
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1550 Bishop Court
Mount Prospect, IL 60056
www.RainbowHospice.org
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