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HomeMy WebLinkAbout1516_001COMMITTEE OF THE WHOLE AGENDA Meeting Location: Meeting Date and Time: Mount Prospect Senior Center Tuesday, August 8, 1995 50 South Emerson Street 7:30 P.M. 1. CALL TO ORDER - ROLL CALL If. ACCEPTANCE OF MINUTES OF JULY 119 1995 All Earlier this year, the Village Board indicated a desire to devote some time to a general reviewof our participation in the S• • Waste Agencyof • •• County SWANCCis comprised ofcities andvillageslocated north and • Cook County. The 23 member communities formed SWANCC to provide for the economically r • environmentally sound r•- of municipal •• waste. ,-r The Agency currently operates the Wheeling Township Transfer Station and over the past several years has been attempting to construct a high-tech balefill (landfill) in the Bartlett area but has not been able to secure approval from the U. S. Army Corps of Engineers. This lack of approval is currently the subject of litigation with the Army Corps. In September, the SWANCC Board of Directors will be reviewing its short and long-term financial plans including the passibility of refinancing some or all of the Agency's $60 million in current outstanding debt. In an effort to provide the Board with the most timely information regarding the status of SWANCC, Executive Director Brooke Beal has been invited to attend the review and answer questions which Board members may have regarding the status of the balefill, operation of the Transfer Station and the financial condition of the Agency. The attached information provides background on key policy issues relating to our membership in SWANCC. A list of general and specific questions is included as a means of guiding discussion. These questions have been submitted to Mr. Beal so that he can be prepared to answer same. REVIEWV. PROPOSED i • AND GANG RELATED ORDINANCE The proposed • • Gang Related Offenses Ordinance came before tho is Village Board at the August 1 Board meeting for a first reading. Due to continue discussion and debate by the Board, Mayor Farley asked that this matter be hel over to the next available Committee of the Whole meeting so that sufficient tim could be devoted to this matter. The draft contained in the Committee of the Whole Agenda is the same as that distributed as part of the August 1 Board meeting. Mr. Hill and appropriate staff will be in attendance. NO TEA- ANY INDIVIDUAL WHO WOULD LIKE TO A 11 -=ND THIS MEETING BUT BECAUSE OF A DISABILITY NEEDS SOME ACCOMMODATION TO PARTICIPATE, SHOULD CONTACT THE WLLAGE MANAGEROS OFFICE AT 100 SOUTH EMERSON,OPROSPECT, • 60056, i VII, ANY OTHERJBUSINESS 1.4 �,"'MeNi � � r 1.'Juga�.1.:2. 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U .. IM ! .. "" 11 li � "" • • • ,. • # • � IA it 11 +� "frustaile enavas skawl v\ak he *Oum X\VO, to thanks RP toy the'C�3"�1'����,5 ��1"�'��1� Graffiti: Consensus of the Village Board was to retain the current code section but consider reduction from 14 to 7 days for removal time at a future time once additional input from businesses is received. ,,a��Oovsafo,zones: Consensus of the Village Boardiwas t-6accepta&sugqested but drop the time HM it of sazone fe only du 'ring school, day. i I I It - - - - - - - - - - - - - - - - - - ---As File) OIORI�_ IMI, 4 VILLAGE OF MOUNT PROSPECT FINANCE DEPARTMENT UP: ir I TO -W Michael E. Janonis, Village Manager FROM: David C. Jepson, Finance Director *- DATE: June 5, 1995 SUBJECT: Mount Prospect's Financial Obligations to SWANCC On June 2, 1995, the Solid Waste Agency of Northern Cook County (SWANCC) held a briefing for Village Managers and Finance Directors regarding SWANCC"s Strategic Long -Term Financial Plan. The Plan was undertaken because SWANCC Members will be required to start making monthly debt service payments on the Agency's approximate $60 million debt as of May 1, 1996. Based on existing debt, the Members will be required to pay $4,412,711 in the May 1, 1996 - April 30, 1997 fiscal year and approximately $5.7 million per year thereafter for the next 18 years. Mount Prospect's share of this debt is estimated at 8.99% and will require a payment of $396,894 in 96/97 and about $512,000 per year thereaft&. It is important to point out that these payments are in addition to and separate from the "tipping fee" the Village will pay for refuse delivered to the Wheeling Township Transfer Station (W701 ). In late 1994, SWANCC staff began an analysis of the Agency's debt structure and started looking at dptions to nuitigate the impact of debt service payments to SWANCC Members. SWANCC staff has identified four options open to the Agency and three options available to each Member. The identified options are listed below: ]gn Auna QZ,"gp L Reduction of fixed expenses for operation of the WTTS and for the disposal of waste. (This option includes renegotiating the existing contract with Groot, Inc. and entering into a 20 year contract. This option will also require refinancing about $20 million tax-exempt debt with private activity financing.) 2. Increase the use of the WTTS by private waste haulers. 3. Liquidate under-utilized Agency assets. 4. Reschedule portions of 1996 and 1997 debt service payments. mm—hgr Qvtiol L Increase rates and charges to current single-family and multi -family properties. 2. Subsidize rates and charges with other Village revenues (i.e. property taxes). 3. Expand waste collection service to new customers (i.e. commercial, industrial, and institutional). Michael E. Janonis Page 2 Mount Prospect's Financial Obligations to SWANCC The briefing focused on Agency Options I and 4 and on Member Option 3. Following is a summary of the information presented. Agency Option I - Negotiate a Long -Term Contract for operation of the WTTS with Groot,, Inc.: The Agency Board of Directors has approved this concept and Agency staff has negotiated the following features in a long-term contract with Groot, -Inc.: 1. A reduction in tipping fees of $1.20 to $1.25 per ton over the next five years. 2. A fixed percentage increase in costs over the remainder of the 20 year contract. 3. A market "true -up" of the disposal component of the contract in the year 2000. 4. A reduction in the minimum guaranteed tonnage to be delivered to the WTTS from 243,100 annually to 221,000. N 5. Indemnification of environmental claims by Waste Management, Inc. (WMX Industries). Because of IRS regulations, to enter into a long-term contract it will be necessary to reissue approximately $20 million in tax-exempt Agency debt as "private activity" debt. This refinancing will add an estimated $4,337,684 in debt service over the 20 years or about $217,000 per year. Agency staff has estimated that members will save about ,$275,000 per year through the lower tipping fees and up to $1,000,000 per year in *cost avoidance" because of the reduced minimum guaranteed tonnage. With a new contract, SWANCC has estimated tipping fees will be $37.93 per ton in 95/96, $39.50 in 96/97v $42.38 in 97/98 and $45.03 in 98/99. Using these assumptions, the following schedule shows Mount Prospect's estimated obligations over the next four years: Agency Mount ProspectTipp, ing Debt Service Fiscal Year Tons Delivered Fees Costs 5/1/95 - 4/30/96 21,000 $7961,530 $1371700 5/1/96 - 4/30/97 213,000 8373,900 351,300 5/1/97 - 4/30/98 21,000 889,980 5159,000 5/1198 - 4/30/99 21,000 9451,630 532,000 The Debt Service costs *include a phasing in of debt service on the private activity bonds for 1996 and 1997. Michael E. Janonis Page 3 Mount Prospect's Financial Obligations to SWANCC In regard to this option, the Proposed Financial Plan states: "In summary, the long-term management contract for the WT TS will provide Members with lower tipping fees, guaranteed environmentally sound waste disposal and competitive costs, and the ability to review and implement new technologies that are beneficial to the Agency." Agency Option 4 - Reschedule Portions of 1996 and 1997 Debt Service Payments: Agency staff presented three possible debt restructuring plans which would reduce debt service payments in 1996 and 1997. In all three plans, Mount Prospect's obligation would be reduced to about $15,000 in 1996, and under the second and third plans, Mount Prospect's 1997 payment would be about $170,000. However, for the remaining 18 years Mount Prospect's obligations increase from about $532,000 per year to $542,000 - $570,000 per year. Member Option 3 - Expand Waste Collection to New Customers. 1. The following discussion regarding this option is taken directly from SWANCC"s Strategic Financial Plan Options June 1995: Members may be able to provide the benefits of the Agency system to unserved or under -served .1 portions of their community by expanding service to multi -family, institutional and commercial customers. Members could establish a non-exclusive franchise or contract with a hauler and require the hauler, as their agent, to bill municipally set rates and charges to all commercial establishments within the community. The base service could be, for example, once per week pick up of a one cubic yard container plus recycling. There would be no requirement for a business to utilize the municipal services provided by the hauler, but the service fee must be paid to the municipality or its agent. If a business requires additional service,, it can opt to pay an additional fee for a larger container or more service. These additional service prices would be established by the municipality through a contract with the selected hauler. Other haulers could still receive a license to provide service in the community if a business chose not to utilize the municipality's hauler. Also, waste collected through roll -off containers (service on demand only) would not be covered in the franchise or contract, thus allowing other haulers to provide service in the community. rovi The waste collected under the agreement would be brought to the WITS under an arrangement outside the Project Use Agreement and would nQJ be included in a Member's waste guarantee. The Agency would charge a rate higher than the Member rate for this commercial waste. Michael E. Janonis Page 4 Mount Prospect's Financial Obligations to SWANCC To the extent the Agency was collecting revenues in excess of expenses, the revenue difference between the Member rate and the commercial waste rate would be split between the Agency and the Member responsible for garnering the waste. The Agency would apply its share to reduce the debt service charges to be imposed on all Members. The Member's share would be applied as the Member chooses, which may include payment to the Agency as the Member's share of Agency fixed costs. TO illustrate, if the Member rate is $42.35, and the commercial rate is $49.35, the $7.00 difference would be divided 50/50. The Agency would apply its share of the revenues to the Agency's debt service costs so all Members would benefit from the additional waste delivery. The Member responsible for the waste delivery would also receive a credit of $3.50 per ton, and could elect to apply this credit to its fixed costs charge. " The Agency staff has estimated that Mount Prospect could realize up to $81,760 from this approach as well as contributing an additional $81,760 to SWANCC for payment of debt service. The Agency presentation concluded with the following recommendations to implement SWANCC's Strategic Long -Term Financial Plan: " Staff is recommending that the Agency: 1) not include fixed cost of the Agency (primarily debt service) in the quoted WTTS tipping fee for Member or commercial waste; 2) refinance the tax exempt bonds utilized in the development of the WTTS,, with alternative 0 . nununum tax bonds (private activity) in order to convert the facility from public use to private use under the Internal Revenue Service regulations; 3) renegotiate the current operating contract for the WTTS; 4) enter into a long-term management contract for WTTS; 5) enter into a long-term disposal contract for waste processed at WTTS.* 6) refinance a portion of the interest payments on the 1992 Bonds-, 7) authorize the implementation of the commercial waste program detailed in Member Option 3; and 8) institute a comprehensive asset evaluation program. Michael E. Janonis Page 5 Mount Prospect's Financial Obligations to SWANCC Staff is recommending that the Agency phase in the long-range strategic and financial program over the next 24 months. If the Board endorses the recommended program this summer, the program can be instituted by the end of the calendar year. * During the briefing, most of the time was used by Agency staff in presenting their Long -Term Strategic Financial Plan. There was limited discussion regarding Agency Option I primarily because the Board of Directors had previously endorsed this concept at its February 1995 meeting. There was also very limited discussion regarding Agency Option 4. Howevet, the consensus of the Finance Directors that I talked to was that no additional debt restructuring should be undertaken at this time. Most of the discussion that took place centered on Member Option 3. There was general skepticism regarding the propriety of a program like this and strong resistance from Elk Grove Village. Agency staff said the program may not be right for every Member Community, but their research indicated that except in limited circumstances the cost to commercial establishments would be reduced. I have asked for additional *information and I will pass it on to Lisa Angell for her evaluation. One of the other comments was that SWANCC should have a Finance Committee that included some of the Member Finance Directors. The purpose of a committee like this would be to provide input on financial plans before they were presented to the Board of Directors. The Agency staff said they would pass the suggestion on to the Board of Directors. Although we were not sure of the timing of the debt service payments to SWANCC, or whether they would be included in the tipping fee or billed separately, we did anticipate a partial payment in our 1996 budget. The 1996 budget includes about $245,000 in SWANCC Tipping Fees for debt service payments. This amount should cover the payments that are due from May 1, 1996 - December 31, 1996. For 1997, we should have about $250,000 that had been anticipated in tipping fees, but we Will need to supplement that amount with additional property taxes of about $350,000. We will refine these figures during the preparation of the 1996 and 1997 budgets. DCJ/sm c: Glen Andler, Public Works Director Lisa Angell, Solid Waste Coordinator 1. What is the status of the balefill? 2. Using the most realistic timetable, when could the balefill be completed? 3. What is the estimated cost to complete the balefill? 4. How long is the balefill expected to last? 5. What is the expected volume of refuse the balefill will process on a daily and annual basis? What is the expected breakdown between member waste covered by the Project Use Agreement (PUA) and other waste? 6. How much outstanding debt does SWANCC have at this date? What is the general breakdown by the purpose of the debt? Le.: WITS $ Balelfill: Land Engineering Legal Capitalized Interest Other Total 7. How much additional debt would be needed to complete the balefill? 8. What is the daily and annual volume of the Wheeling Township Transfer Station (WTTS)9. 9. What are the expected volumes for the WTTS for 1996 and 1997? What is the breakdown of PUA Member Waste and other waste? 10. What are the expected tipping fees for PUA Member Waste and other waste for 1996 - 1999? Do these amounts include baleffll costs? Do they include debt service payments? 11. How does the expected tipping fee at the WITS for 1996 compare with tippimg fees at other landfills? 12. What is Mount Prospect's share of current debt as a percent and in dollars? 13. What factors would change Mount Prospect's debt service obligation in future years? 14. How much will Mount Prospect's estimated debt service payments be for the next 5 years under the following conditions: Private Activity ZI Fiscal Existing Private Activity I Refinancing Plus A Year Debt Refinancing i Completion of Balefill 96/97 97/98 98/99 99/2000 2000/2001 15. Is it possible to sell the balefill property? How much would it Sell for? 16. Is it possible to sell the VMS? How much would it sell for? 17. How long is the present agreement with Groot? 18. what are the expected advantages of a long-term agreement to run the WTTS? 19. What are the disadvantages of entering into a long-term agreement to run the WWS? 20. Will a possible long-term agreement be open for competitive bid? U E E 0 E 9 11 SUND4ARY OF KE, Y POLICY ISSUE'S MOJECT "USE, AGM���� 3044997 Ver 1 1/10/92 13:55 January 1992 a a Phasing -In of the System Preliminary Timetable 3 The Agency's Authority to Build System 4 Payment for the System and its Components 6 Put -or -Pay Guarantee 0 0 0 a 0 a a 0 0 a 0 a 8 Deficiency Charge . 0 0 Is 0 * 1* 0 0 • * 0 0 0 10 Waste Flow Definition and Control . 12 Municipal Rates and Charges 0 0 14 3044997 Ver 1 1/10/92 13:55 PHASING -IN THE SYSTEM 0 4 Z 0 1) Zko) 616144 0 In late 1991, the Board of Directors of the Solid Waste Agency of Northern Cook County approved a, multi-year financing plan for SWANCC. That plan is designed to address theediate financial needs of the Agency and its members and provide for the phased construction of the transfer status and Balefill. The first bond issue, scheduled for spring of 1992 will raise money to refinance the member communities existing financial obligations, eliminate member equity contributions to SW CC and fund construction of the 1000 ton per day Wheeling Township Transfer Station and complete permitting of the Balefill,# These activities were selected first to avoid substantial member payments on the existing debt and respond to a worsening solid waste crisis and cost increase brought on by this year's anticipated landfill closures. This report provides an overview of the phased financing plan and a summary of some key elements in the intergovernmental contract (called a project use agreement or, PUA) that will back the issuance of SWANCC bonds and guarantee member use of the Balefill and transfer station system. In order, to participate in the financing, each community and the Agency must adopt an ordinance authorizing its execution. The expectation is that construction and financing of the system will be phased -in over the next three years. Exact timing is not yet known but the Timetable outlines the estimated schedule for the first bond issue, Long, -Term Project Use Agreements will be executed which will authorize the Agency to build the system in phases and provide for the Members to use the system and its components to pay its costs. The phases are expected to be: Refinancing of part of 1990 Notes New Money for Wheeling Transfer Station and Interim Project Costs New Money for Rolling Meadows Transfer Station Refinancing of Rest of 1990 Notes New Money for Balefill Addition of a Third Transfer Station 1. phase-in Seglignce, a. Each SWANCC member will be able to decide when it will begin to deliver waste to the Agency between the period January of 1994 through January of 1996. 3044989 Ver 1 1/10/92 13:36 —1— b. Members will co it in the Long -Term Project Use Agreements to deliver their waste on the established date and to make, payments based on use. C. The waste delivery date can only be changed by SWANCC if opening of a facility is delayed, d. SWAN'CC is not obligated to provide any service to members who do not sign Agreements now, Such members can be included as new Customers in the future if capacity of the system permits, Members who do not sIgn, the new Agreements are still obligated under the ,outstanding Interim, Project Use Agreements, i*eOJ must pay theirs of the outstanding $16.25 million in notes beginning May 1,, 199,2* e. Rates will be established on a system -wide basis so that the tipping fee will be the same at each transfer stations 3044989 Ver 1 1/10/92 13:36 "2' PRELIMINARY TIMETABLE Dass Aciv t Even s Jan. 15 - March 11 Member Communities Approval of Project Use Agr a ement ( PUA ) Jan. 16 Transfer Station Operator Proposals Due March 11 SWANCC Beard Approval of PUA April 1 Bernd Offering April 15 Bond Sale April 27 Bond Closing 3445000 Ver 1 1/10/92 13:59 ' 3 THE AGENCYfS AUTHORITY TO BUILD SYSTEM Phasing, and a ggog p st ini, Pr_O_Ject, Ilse Agreepents, a. Agreements will define each phase of overall project, provide inflation adjusted estimates of costs for each phase, identify members expected to be users of each phase and their expected use. 20 :Milproval, f� .n d tigls V 2f Elp ,Jact use A,g,reem, a. Type of approval necessary for bond issue associated with each phase depends upon cost estimates. b. If capital cost of phase does not exceed inflation adjusted estimates, bonds for each phase can be issued by a majority vote of the Board of Directors. C. If the capital costs for a given phase exceed the cost estimates plus the inflation factor by 25 percent or less, additional bonds can only be issued by a 60 percent majority vote of the Board of Directors. d. If the capital costs for a given phase exceed cost estimates plus the inflation factor by more than 25 percent but less than 95 percent, the Board of Directors will not be authorized to issue bonds until the issuance has-been approved by a 60 percent of the member boards participating in the long term project use agreement. once member support is secured, the SWANCC Board may issue bonds on a 60 percent 'majority vote of the Board of Directors. e. If capital costs of a phase of the project exceed 95 percent of the original cost estimates, the Board of Directors will not be authorized to issue bonds until the issuance has been approved by all of the member boards participating in the long term project use agreement. 3 Calculation of Costs (Art igle V) Z a. The engineer's final estimate of costs will be the basis for measuring whether costs exceed estimates. b. If in prior bond issues, costs were below the inflation adjusted estimates, then the cost test for the current bond issue can be calculated cumulatively taking into 3044981 Ver 1 1/10/92 13:37 —4— account the cost of prior bond ISSUeSe it Cos S in prior bond issues exceeded, the estimates, then the cost test is not calculated cumulatively. a. SwANcc will be obligated in the Agreements to Use its best efforts to construct and operate the systemo b. swANCC is also obligated to find disposal site for waste delivered to transfer stations prior to completion of Balefillo 3044981 ver 1 1/10/92 13:37 "5— PAYMENT FOR THE SYSTEM AND ITS COMPONENTS Ggnergl a. As a general principal, the system or a component will be paid for by those who use the system or component on the basis of that use. . ....... . . a. An annual budget, including fixed and variable costs and required reserves, will be established and Users will be billed 1/12th of this amount each month. b. Monthly costs will be allocated based on the up -front estimates of waste to be delivered* co At the end of the year there will be a "true -up" based on actual usage. Credits and debits will be applied to the next year's bills. d. Extraordinary andunexpected expenses associated with operation of' the f acilities during the year can be covered by an increase in charges to Users based on a iThe Members reviseld budget authorized by the Boardo shall receive 30 daysO prior notice of the meeting at which such amended budget is to be adopted. 3, Ph �as,ing-jn a. As transfer stations are added in phases, budgeting and billing will be extended to include new Users. b. It is planned to have uniform charges across the system, therefore these charges will change as transfer stations open and Users are added* 4. Guarantees a. To access the credit markets, to protect the Members against over -use or under -use by other Members and to assure sufficient revenues to operate the system, each Member will be required to estimate its waste deliveries and deliver that waste. If they do not deliver the waste they must pay as if they had delivered. See following description of Put -or -Pay Guarantee. b. In order to provide creditors with protection against failure of the system, or failure of a User to pay, 3044974 Ver 1 1/10/92 13:39 OW6- each member will be required to provide aL qUaraTitee against default. See following description of Deficiency Charge* 3044974 Ver 1 1/10/92 13:39 �7- PUT -OR -PAY GUARANTEE 1. Guarant,egg . ....... Covers i*xLed C_o—st -j- s., (Article VII) a. The authorizing State legislation permits agencies such as SWANCC to enter into contracts with put -or -pay provisions. Users must, commit and bring, or pay as.if they brought,, 85 percent of their waste estimate* The put -or -pay guarantee will cover all,, costs of the System which do not vary directly and immediately with usage, i.e. all Fixed Costs, b. These "Fixed Costs" include: debt service on bonds, increasing as each phase of bonds is issued accumulation of reserve funds on-going capital expenditures, which are not financed debt service coverage requirements contracts for services, equipment or supplies 2. jm21ementatjon,_of Guarantee., (Article VII) a. The put -or -pay guarantee is triggered if a user delivers less than 85 percent of estimated waste in that year if the total amount of waste delivered to the Agency is less than 85 percent of the expected waste. Calcula a. Charges (dollars per ton) will be calculated on assumption that User delivers 85 percent rather than 100 percent of waste in that year. This permits Users to reduce waste stream through recycling or waste reduction without triggering the put -or -pay guarantee. b. Monthly billing to each User will be based on delivery of 100 percent of estimated waste. 3044994 Ver 1 1/10/92 13:40 '8_ a,. Since the fixed costs are met if 85 percent of the, waste is delivered, User payments for waste delivered above 85 percent are revenue to be used as determined by the Board, subject to limitations in the Bond Resolution. Eligible uses include rate reduction* b. Prior to operation of the balefilli excess net revenues from ope:rati,on of the Wheeling transfer station, after all other obligations have been met, will be used to reduce 'User rates. (sectilon 9,1(h)) ............. - a. The put -or -pay guarantee will be based on the Users' estimate of waste to be delivered. b. The put -or -pay guarantee only applies to Users as they ,are phased -in to the system. when all phases are complete all the members will be obligated under the put -or -pay guarantee. L;pMo a. Under the SWANCC billing system, 'the, put, -or -pay 4, operates by not giving any credits for fixed costs in the end of the year true­uP � 'to those who deliver less , than 85 percent of estimated waste, even if the overall system receives more than 85 percent of total, estimated waste. b. For variable costs, credit can be given in the end of the year true -up for those delivering less than 85 percent of estimated waste* 3044994 Ver 1 1/10/92 13:40 IM.9- DEFICIENCY CHARGE 1. Def icien,cy Char a JAX:tic gle Y11 ftgtip 5) a. The Deficiency Charge is designed to protect the bondholder against the risk of project failure, non - completion or premature closing, or default in a payment obligation. b, The Deficiency Charge is triggered when there is a projected insufficiency in revenues to meet the obligations of SWANCC (i.e. the Deficiency Charge is not triggered by a minor cash flow problem}. C. All Members who sign Agreements, even if they are not Users of the initial phase of the project, are obligated for their portion of the Deficiency Charge. d. Liability for the Deficiency Charge will be based on, 2003 waste estimates. I e. The Deficiency Charge includes a step-up provision, as with the Notes, not to exceed a Member's liability by more than a third. f. The Deficiency Charge is binding on all Members for the life of the bonds. a. During the phase-in, not all Members will share the benefits at the same time. In order to allocate the default risk to those who benefit from the initial phase (i.e. the Users of the Wheeling transfer station), the Deficiency Charge is weighted to shift a larger portion of the default risk to the Users of the Wheeling transfer station, b. The shift in risk is reallocated by requiring the Users of the Wheeling transfer station to cover the Deficiency Charge for 90% of the direct costs of that transfer station. The remaining 10% is guaranteed by the Members not using the Wheeling transfer station, C. This reallocation is in effect until the earlier of the opening of a second transfer station, a majority of the Members becoming Users or January 1, 1996. From that point forward, the Deficiency Charge is allocated as described in (1) above, 3044985 Ver 1 1/10/92 13:41 — 1 0 _ LVEL Z6IOL/L L JOA S86770£ TTTA to PTTOs -EiedirOjTunm, sfasquaw sq*4 ;o uo'*r4vbTTqO ug eq # -4'T 's4'Tun, 9*Ena M. ,� « • - + U_ -a TTIIAfl OeAoq,e Aled • 11 • ► • • aNwu ;att'4 M AMM w 499M ATOAT'400TTOO ..04 UOT4s6TWO sq4 ;0 sl-xasfl 894 J1 • • *xsuvX4 • (genc !4uoo) ROUVRO lonalazaaa WASTE FLOW DEPXNXTXON AND CONTROL 1. Det Inition, of S ice r s (Article III)A eryl -, a,, a. . a. At the time the Project Use Agreements are signed, all Members will define their residential service area and estimate the amount of waste to be delivered for life of the system. Commercial service area is not necessarily same as residential service area, and commercial waste estimates will be based on tonnage and not geographic area. b. This is required even if Member will not use the initial phases of the system. C. The boundaries of the residential service areas are expected but not required to be same as municipal boundaries. d. 100 percent of waste within defined boundaries of residential service area must be delivered to SWANCC over the life of the Agreement. 2 gbA,nge s, , 0 Seryren (Article VI) Iyice Ags a. Geographic boundaries of service areas and type of waste delivered may not be changed without prior Board consent, except that boundaries can be adjusted for annexation or disconnection. b. only waste from newly annexed areas can be added in the future, without prior SWANCC consent. 3. WA,ate Estimates (Article III) a. The 2003 waste estimate will serve as the basis for the Deficiency Factor and will not change. b. Each year the initial waste estimates will be adjusted by a formula based on actual waste delivery in prior years. The formula will be the rolling average of the waste delivered over the prior 3 years, adjusted for changes such as phased -in delivery, annexations, changes in law, etc. 4. Waste Control a. SWANCC takes title to waste when it is accepted at a Transfer Station. 3044975 Ver 1 1/10/92 13:57 —12 b. SWANCC can assess penalties against those vhI0 aealivef unacceptable types of waste. Penalty will be cost Plu 20 percent to remove and dispose of unacceptable waste elsewhere. C. Flow Con ' trol Ordinance adopted by merbers, at, the time I Agreements, are signed but )only implemented as Member starts to use the system., Each member will be requirell to regulate w controlling their pick-up and 'requiring delivery of waste to the systeno, (Artii,cle X Section 10,11) d. sWANCC has authority to determine which transfer station is used by which Users, When Long -Term Project -Use Agreements, are signed there will be an estimate of which ,members. will use which station, but SWANCC can change this to achieve a more efficient, overall System* I 3044975 Ver 1 1/10/92 13:42 _ 1 3 - )MICIPAL RATES AND CIIARGES 9-gta lishinent9 , I, !2 1 , "Bgtes and2har_ge,gi,, (Article VIII) a. Members must establish a system of rates and charges for residents for municipal waste services in their community except as in (c) below. Revenues from these rates and charges must be deposited and accounted for in a separate Enterprise Fund. b. Monthly billings from SWANCC must be paid from revenues in the Enterprise Fund except that the Deficiency charge is a general obligation of Home -Rule communities. C. Members wishing to pay solid waste charges from other than their Enterprise Fund, must show sufficiency of revenues from taxes or a cash deposit or a combination thereof. 20 to, Reside]2.: ts a. Monthly billings from SWANCC will reflect, and municipal rates and charges must be set to include, all fixed and variable costs. 3. Enforc (Article X) a. Each Member must agree to vigorously enforce the rules and regulations and diligently pursue collection of revenues. 3044991 Ver 1 1/10/92 13:46 —14— a �J Members Sheila H. Schultz Chairman. 8d. of Direr rocs Arlington Heights Ho, fman Estates Park Ridge Barrington Inverness Prospect Heights George Van Dusen Vice Chairman � Buffalo Grove Kenilworth Rolling Meadows Elk Grove Village Lincolnwood Skokie William R. Bailin Evanston Morton Grove South Barrington g Glencoe Mount Prospect Wheeling Chairman. Exec. Committee Glenview Niles Wilmette C. Brooke Beal Palatine Winnetka Executive Director July 17, 1995 Trustee Irvana Wilks M Tillage of Mount Prospect 1201 west Cleven Mount Prospect, Illinois 60056 Solid 'Taste Dear Trustee Tills: Agency as you requested ooPies' of memoranda i ng to the WA ency 's 4111PEnclosed Df long-range financial- planning. The documents were issued to STANCC's Northern Executive Committee and/or Board of Directors beginning in Janes, 1995. Cook County Please contact me if you have any questions regarding this information. a 1616 East Gol, f Road Des Plaines, IL 60016 Sincerely, Phone 708296-920 Fax 708296-9207 C. Brooke Executive Director cc Trustee Timothy Corcoran, Village of Mount Prospect Trustee Paul Hoefert, Village of Mount Prot Members Sheila H. Schultz Chairman, Bd. of Directors nw Arlington Heights Hoffman Estates Park Ridge, Barrington Inverness Prospect Heights George Van Dusen Buffalo Grove Kenilworth Rolling M"eadws Kce Chairman � Elk Grove Village Lincolnwood, Skokie William R. Balling g Evanston Morton Grove South Barrington Glencoe Mount Prospect Wheeling Chairman, Erec. Committee Glenview Niles Wilmette C Brooke Beal Palatine Winnetka Executive Director TO:, Executive Committees FROM C. Brooke Beal., Executive Director RE: Lang Range Budget Planning DATE: ° " January. 23, 1995 Solid w axe°r'View - Waste Agency A u 's r y 1996 budget includes the'use of e � Agency' � h (? mately 1.3 nnts e, ase .on of a funds for d t y members Noilhern - f reserve ids sup nidi �g f i recommended, to afford the Co 6 - _ County . � Sis ��tin ag � �y 1�" a Agen�� � none �� _ �t �e �� of 9'6, 1616 East Golf Road Des Plaines, IL 60016 � ,� :"restricted cash ud et b a roxi nately . .ion. - g Phone 7081296-9205: *on costs, the 1cas Fax 7OW96-920? PrOUected beginning balance after liabilities, are ust6 be, approx-imately 3 million. % -w May d e Agency's, debt � is sch uled to be paid h annu ly h inning in November, 1996. - The, biannually, debt sern, ce . November,, beg"' payments are, $1,869,822.53. ' The 1992 Bond., Resolution requires the Agency to Payment are on wrovi e � � ��n a nontl�y basis a ,1/6 of the bi�uall Y y deposit with the , st h mon s ur approximatelyl 1, to be d, sited by the Agency each month from revenues o r e h v f Placing the full debt burden, on tipping fees, at the ' FITS will add significant unrelated S cost to the Processing of members' solid waste. Agency Assets The Agency's cassh reserves can be augmented through the sale of nonutilized • A enc 's rim assets are land holdings - assets which the Agency owns. The g y primary of over 600 acres in Cook and Kane County. ° Currentlye A enc is i� � 'litigation conce�rmng development of the e�f, . A g y decision from Federal District, Court s, expected, by the end sof the calendar year. Once a decision is rendered, the fine development plus f (r the b page two Long Range Budget Planning • January 23,.1995 Balefill can be developed. At this time non-balefill related property can be deemed surplus by the Agency. This includes the Agency's land holdings in Kane County. y Other su M lus land holdings include the property adjacent to the wheeling Township ,Transfer Staton, which is approXinately slix, buildable acres. Alternative Financing.Methods WAMMONOW is �cu h�y, �w��an, alternative financing methods available to the Agency staff` g g A enc en . on tipping fees. With the �u avoid pg„ the Agency's, s debt bund recent Supremeurt derision eve y nig l govenents ability to control i� 'borders the �:m„ sour of revenue for the how. wast genu p sold • waste projects h n signf a y cu funding, programs could include stug demand charge or, a fiat r AlternativeE mm household charge for, debt service or subsidizing dpp*�ng other revenues to a. f froth p uld potentially attract significant, waste . rate below the nar s subsidy co the fact us ` g the debt service cost per ton. volumesto, the . Reco e dation • n m staff s g, that the ]Executive Committeerecommend to the Board, Agency yin n .� . implernenn� and detailed of Directors that a assets, ts, ventory alua�on b�e ani. is be ,con�d u�cted, on the financing methods which e u bit achieve y the Agency s Mission to provide cost effective and environmentally sound solid waste manAgetnent for its members. After the U.S. Army Corps of Engineers' decision to deny the Agency's permit to fill 17.2 acres of ponded water at the Balefill site, Agency staff conducted a thorough review of various options available to Agency members, The Board rejected reapplication to the Corps due to the marginal chance of success, the anticipated high costs and long time frame. Developing another landfill site or an alternate disposal system were eliminated for the same reasons. Further, the Board determined that it is not in the Agency's best interesLio seek a Balefill development partner at this time as the Agency would stand to lose much of its investment. Members Sheila H. Sch;Zltz Chairman. Bd of Directors Arlington Heights 11offinan Estates Park Ridge Barrington Inverness Prospect ne" 'ht, George Van Dusen Buffalo Grove Kenilworth Railing Mlealolvs Vice Chairman Elk Grove Village LincoInivood Skokie WilliamR. Balling Evanston Morton Grove South Barrington Gicticoe Mount Prospect Wheeling Cha,ieman, Exec. Commiuce Glenview Niles Wilmette C. Brooke Beal Palatine Winnerka Executive Director TO: Board of Directors Attachment III C Director Cfjo FROMI: C. Brooke Beal. Executive RE: REFINANCING AND WITS CONTRACT EXTENSION 100010=04,ft WOWM00", RECONEYff"ATION DATE: February 1, 1995 Solid Waste At the January 25, 1995 Executive Committee meeting) the committee Agency discussed an Agency staff recommendation to ,refinance a portion of the n in Agency's current debt and to renegotiate the operating and maintenance Noilhent Cook contract for the Wheeling Township Transfer Station. thorough County review, the Executive Committee unanimously endorsed the staff 1616 East Golf Road Des Plaines, IL 60016 recommendation, and the matter will be considered by the Board of Directors Phone 7OW96-9205 Fax 70W96-9207 at the February 8, 1995 meeting. Qve MOE After the U.S. Army Corps of Engineers' decision to deny the Agency's permit to fill 17.2 acres of ponded water at the Balefill site, Agency staff conducted a thorough review of various options available to Agency members, The Board rejected reapplication to the Corps due to the marginal chance of success, the anticipated high costs and long time frame. Developing another landfill site or an alternate disposal system were eliminated for the same reasons. Further, the Board determined that it is not in the Agency's best interesLio seek a Balefill development partner at this time as the Agency would stand to lose much of its investment. page two Refinancing Recommendation Yebruary 1, 1995 The Board of Directors, when authorizing legal action to secure final approval for the Balefill, directed staff to analyze the possibility of restructuring a portion of the Agency's existing debt. In tandem with this review, the benefits of securing a long- term management contract for the Wheeling Township Transfer Station (VMS) were also investigated. This long-term disposal of the Agency's waste through joint purchasing of private landfill space could be a component of a long-term management contract. - SWANCUS mission is to provide environmentally sound and cost-effective solid waste management for its members. Both the dev elopment of the centrally located WTTS and SWANCC members' implementation of comprehensive recycling programs represent significant accomplishments toward achieving the Agency's mission. The most significant outstanding component of the plan is the development of the Balefill, which will provide members with state-of-the-art disposal capacity for at least twenty years. Pending final development of the Balefill, the Agency has chosen to joint purchase landfill capacity for it members. Through the Agency's current contract with Groot Recycling and Waste Services, Inc. for operation of the WTTS, five years of landfill disposal capacity has been secured with Waste Management of Illinois. Currently, the Agency's -waste is disposed at Greene Valley landfill in DuPage County. When this facility closes in 1997, the Agency's waste is scheduled to be disposed at Woodlands landfill in Kane County. Both landfills were thoroughly investigated by the Agency to ensure their environmental safety and compliance with state and federal laws. This thorough review satisfies SWANCC's commitment to provide its members with environmentally sound waste disposal. SWANCC members are also protected from liability as TMX Technologies, parent company of Waste Management of page three Refinancing Recommendation February 1, 1995 Illinois, has extended the Agency its corporate guarantee against liability. Through this contract clause, all of WMX Technologies' corporate assets would need to 'be exhausted to remediate any environmental problems at the disposal facility before SWANCC or any of its members would incur any liability. RgOgMendatim After tho'rouiah review, the Executive Committee has endorsed the staff recommendation that the Agency:, refinance the WITS'S'debt service if required by the Internal Revenue Service; S management contract. renegotiate the current WTI7 with Groot Recycling and Waste, Services, Inc.; enter into a long-term contract to manage the WITS; and contract for long-term disposal capacity with cancellation clauses for the Baled and new solid waste management technologies. Entering into long-term contracts for WTTS operations and disposal will provide numerous benefits to the Agency, including fixed pricing for members, lower tipping fees than currently projected, greater ability to secure customer waste to supplement members' committed waste and potentially reduce members' fees, guaranteed environmentally sound waste disposal and indemnification for Agency members. Further, the Agency stands to gain a much clearer long-term financial picture for its members. page four Refinancing Recommendation February 1, 1995 In summary, this recommendation will also allow the Agency to protect its investment in the Balefill, provide environmentally sound waste disposal capacity for its members and lower current tipping fees at the WITS. A detailed explanation of each component of the recommendation follows. In order for the Agency to enter into a long-term management contract today, it must refinance that portion of its debt which is applicable to the development of the-WT17S. This amounts to a refinancing of approximately $20 million. Under the Internal Revenue Service Code, public use facilities' management contracts may not exceed five years in length. Since the WTTS was developed with proceeds from tax-exempt bonds, these management guidelines currently apply to the facility. In addition, the tax-exempt status of the facility further restricts the allowable amount of private use. Currently, the Agency cannot enter into contracts for private -waste, offer reduced pricing for large volume generators or process more than 10% private waste over the life of the facility. Currently, the Internal Revenue Service (IRS) is considering lessening these restrictions. The IRS's draft proposed rules will allow for 10 -year and 15 -year management contracts,, depending on the compensation structure of the contract. The proposed change in* the contract guidelines would allow the Agency to take advantage of the related cost savings without refinancing the ''MITTS debt. The Agency will continue to monitor the IRS's proposed rules to ensure that the refinancing is required to initiate the long -tem contract. page five Refinancing Recommendation February 1, 1995 To move the facility from public use to private use, the Agency currently must replace the current tax-exempt debt with private activity debt. Alternative minimum tax (AMT) bonds, such as private activity bonds, are tax-exempt bonds issued by governments for private -use facilities. Restrictions concerning the state's volume cap for AMT bonds do not apply to solid waste facilities. Also, AMT bonds cannot be advance funded in the future. Refinancing a this estimated $20 million portion of the Agency's debt will add approximately $211,000 annually to the Agency's existing debt payment structure or approximately $1.00 per ton in the short-term (see Appendix A). No new capitalized interest is required to complete this transaction. In I order for the refinancing to be cost effective, savings of at least $211,000 per year needs to be realized. C uRenegot mnA Co� x Ctafirw 'The Agency has investigated the potential cost savings if the current Groot contract is renegotiated, and has preliminarily investigated the possible cost reductions that could be achieved from the current contract. Following are the estimated reductions: . . . .... ....... OPERATING CONTRACT COST SAVINGS PER TON PER FISCAL YEAR 1995 1996 1997 1998 1999 $1.88. $1.20 $1.20 $1.23 $1.25 ................. These cost reductions can be achieved and will reduce members' tipping fees by more than 3 % for the next four years. When aggregating the cost savings to the members, the following annual savings can be realized: page six Refinancing Recommendation February 1, 1995 I OPERATING CONTRACT COST SAVINGS PER FISCAL YEAR 1995 1996 1997 1998 1999 $106o8007. $241,600 $265o768 $272)412 $2769841 '01 Now *MWM9WMWW** 77� I Total Operating Contract Cost Savings $1,163,428.00 In addition to the above savings, further cost avoidance can be achieved. Currently, the Agency's contract with Groot is for five years, and is cancelable at the Agency's sole option after three years. The Agency has guaranteed to deliver 243,100 tons of waste each year of the contract, years three through five. This equates to 850 tons per day for 5.5 -days -per -week operating schedule. Due to increases in recycling and lower than planned member waste deliveries, the Agency may potentially fall below these committed waste deliverie's. Using current waste deliveries for estimating purposes, the Agency conservatively estimates that when all members are using the system,. they will deliver approximately 225,000 tons of waste per year. This is based on the waste that is currently committed, and does not include any outside waste. These estimated waste deliveries include provisions for increases in recycling -where items With additional significant weight can be added. This possible shortfall to the Agency will result in increased tipping fees to all members in order to make up the anticipated shortfall. Through a contract renegotiation, the guaranteed minimum tonnage could be reduced to 221,000 tons of waste per year, contract years three through five. This equates to 850 tons per day page seven Refinancing Recommendation February 1, 1995 for a 5 -days -per -week operating schedule. By negotiating a reduction in the minimum guaranteed waste delivery, the annual cost avoidance that could be achieved is as follows: COST AVO10DANCE SAVINGS PER FISCAL YEAR 1995 1996 1997 1998 1999 $550,970 $515, $943153 $1 s000 262 $888s8s000,898-7 *A I I Total Cost Avoidance $3,899,153 To protect the Agency from future possible reduction in member 'waste deliveries, the contract renegotiations would include a provision allowing the Agency to implement a 3% reduction in the guaranteed tonnage in the third contract year. This would allow the Agency to benefit from increased recycling without a negative impact to the Agency's operations contract. This flexibility is similar to SWANCC members' flexibility in waste deliveries to the Agency under the Project use Agreement. savings By comparing the potential cost savi the Agency will realize through a renegotiated operations contract against the costs of the refunding, it is clear that the Agency wdrealize a net cost savings. The total operating contract savings and cost avoidance savings, over the five year Groot operations contract is a potential $5,062,581 with a present value savings of $4,340,791. The present value of the additional refinancing costs over the next twenty years is estimated at $2,240,296, with a net present value savings (present value of cost savings minus present value of additional debt service costs) of $2,100,495 (see Appendix A). Contmt Extension The long-term management contract holds many advantages to the Agency. The guaranteed waste volumes would be 221,000 tons of solid waste per year with an opener every three years which allows the Agency to lower the guarantee by 3 %. In page eight Refinancing Recommendation February 1, 1995 addition, estimated reductions will be allowed for waste that is subject to future landfill bans. The operations and transportation increases will correspond to the consumer price qmw� index for the Chicago metropolitan area. These will be a minimum 4% increases, =No.. and will have an 8% cap. The landfill disposal 'agreement component will be an extension- of the current Waste Management of Illinois agreement that is a component of the Groot contract. The market true up concept is included due to the fact that the Chicago -area landfill disposal market is currently undervalued. In 1992, the gate rate tipping fee at area landfills was $22.88. At this time, a,DuPage County Court ruled that the two landfills operated by private companies for the DuPage County Forest Preserve District were operating illegally and were ordered to close by the end of the year 2000. This forced closu're of two of the largest landfills in the state resulted in a "fire sale" in the landfill disposal market. Gate rates at the landfills plummeted 22% to $18, and all area landfills reduced their prices accordingly. Now that these landfills have secured significant volumes of waste to fulfill their contractual relations With -DuPage County, their gate rates have started to climb, as have those at other, area landfills. For example, Congress Development landfill located in Hillside has increased its tipping fee 22% in the last year. Other area landfills are following suit. Many believe that this trend will continue, eventually bringing area landfills' tipping fees back to the rates experienced before the DuPage County court action. The U.S. Army Corps of Engineers and others predict that this will not occur, and that landfill rates will 'remain low due to increased competition and recycling. If their sense is true, then a fixed, guaranteed increase would be detrimental to the Agency. Thus, a page nine Refinancing Recommendation February 1, 1995 market true up is recommended in the year 2000 to allow the Agency's rates to remain competitive with that of other area landfills. This market true up will entail reviewing the rate of change in five preselected ilities' gate rate tipping fee for landfills and comparing the rate of change of the fac transfer trailers from 1997 to 2000. Ile average increase will then be applied to the 1997 SWANCC rate to determine the year 2000 disposal rate. A maximum 30% increase is Lticipited, with a possible maximum 30% reduction. For the year 2000 rate to increase at all, the true up will need to show a tipping. fee increase of 17% over a three year period, which is more than the average CPI "increase. Once the market true up has occurred and been applied to the rate, future years' increases will be fixed at 5 % annually for the term of the contract. Comparing these landfill proposal costs to the Gallatin National Balefill contract proposal tendered during the fall, 1993 Army Corps of Engineers public hearings, Agency members would save more than $19 million dollars in transportation and disposal costs over the twenty-year period. Important components of a long-term disposal agreement are financial assurance of the company, environmental compliance of the facility to date and throughout the term of the contract and assurance that the Agency is utilizing the best available technology for managing solid waste. Waste Management, through the backing of WMX Technologies, will provide indemnification for Agency members from environmental claims concerning the disposal of member waste. Further, the Agency will perform a comprehensive environmental audit of the landfill site to ensure safe disposal of member waste. The Agency y will continue to monitor the annual landfill operating performance, IEPA page ten Refinancing Recommendation February 1, 1995 inspection reports, ground water monitoring results and annual waste intake to ensure adequate waste disposal capacity. This disposal compoiient of the long-term contract can be canceled if the Agency is successful in overturning the Army Corps of Engineers' permit denial. If the Balefill is cleared for development, members would receive the benefits of even lower disposal and transportation costs in conjunction with the benefits of owning the disposal facility. A provision will be *included in the new contract to allow the Agency to relinquish the disposal agreement and move to a new technology. This will allow► the Agency to continue to analyze and evaluate new and evolving solid waste management technologies. It will also ensure that Agency members are utilizing the best available and most cost-effective solid waste management techniques over the next twenty years. In summary, the long-term management contract for the WTTS will provide members with lower tipping fees, guaranteed environmentally sound waste disposal and competitive costs, and the ability to review and implement new technologies that are beneficial to the Agency. Other ftmM Implementing this recommendation will provide additional benefits to the Agency. For example, the Agency will be able to attract additional waste to the WITS through contracts with private waste haulers and other units of government. Currently, the Agency cannot offer contracts to private waste firms due to the complex IRS tax restrictions. 'Through refinancing the WTTS debt, the Agency will be legally allowed to enter .into this type of contract for outside waste. Other units of government such as townships, school and park districts can also benefit by utilizing the SWANCC page eleven Refinancing Recommendation February 1, 1995 system. Through the use of SWANCC's joint hauling services agreement, both hauling and disposal can be offered to other units of government that do not have the buying power of larger municipalities when negotiating contracts. Beginning in January, 1996, when all SWANCC members are delivering waste to the VMS, the facility will be operating at approximately 60% of its design capacity. By increasing the outside waste volumes coming into the facility, the cost of both debt service and operations will be lowered. These cost savings will be passed on to the members. through lower tipping fees. Conclusion The Executive Committee's recommendation to the Board of Directors is that the Agency: refinance the portion of the debt service applicable to the WTTS in i order for the Agency ,to renegotiate its current contract W1th Groot Recycling and Waste Services, if required; enter into a long-term management contract for the operations of the transfer station with a component being a long-term waste disposal agreement with an escape clause for the development of the Balefill or a new technology that .the Agency deems in the best interest of its members. By implementing this recommendation, the Agency will be able to lower tipping fees in the short-term and legally garner quantities of outside waste that will lower tipping fees in the long-term. It will also provide members with fixed pricing and Iong-term environmentally sound waste disposal With substantial liability protection. 1, page twelve Refinancing Recommendation February 1, 1995 F owing, is a proposed timetable for implementing this recommendati rel n d review e�b 8 m p Final Executive C ittee review February 22 w Board Approval of Long TerrnMman, ent Contract Concept March 8 o W Operations Contract Finalized " March 31 Board Approval of FinanclAg and Operating CmItmt April i w Agency Issues (if required) May --- Dec This matter discussed at the February 8, 1995 Board of Directors meeting. Please con t me if you would like any additional information prior to the meeting. APPENDIX A PRELIMINARY DRAFT (�2231,519) ($223,519) ($2100955 0.95 $541.487 PROJECTED SAVINGS FROM REVISED GROOT CONTRACT $1,005,211 $1,067.42 COMPARISON OF YEARS 1.5 OF ORIGINAL CONTRACT FY FY FY FY IFY 1995 1996 1997 11998 1999 January 23, 1996 4 MONT743 FULL, YEAR FULL YEAR FULL YEAR, FULL YEA O&M OLD 10.90 10.90 11.45 11.91 12. ODM NEW 10.40 10.80 '11.35 11.80 12.2 SAVINGSITON 050 0.10 0.10 0.11 0.1 II HAULING OLD T'M 7,35 7.75 7.25 7.66 8.48 7.96 Sh 8.'4`4 HAULING NEW 0,140 0.50 0.50, 0.52, O.c SAVINGS/TON III DISPOSAL OLD 20.48 119.51 20.48 191.88, 21.50 20,90 23.22 22.62 25.0 24.4 DISPOSAL NEW 0.98 0.60 0.60 0.60, 0.E SAVINGSKON IV REVISED RATE PER TON ALL CHARGES $37.25 $37.93 $39-90 $42.38 $45Z TOTAL SAVINGStTON 11 a $1.88 $1.20 $1.20 $1.23 $1.21 V DOLLAR SAVINGS FOR ACTUAL TONS PREDICTED TO BE USED $106,807 $241,568 $265,768 $272.412 $276.84 VI DOLLAR SAVINGS ON TONS THAT WOULD BE A T-URFn $550,970 $516,262 $888,870 $943-153 $1.000-89- a VII INVESTMENT EARNINGS FROM LOWER MONTHLY PAYMENTS TO GROOT (PAYING LATER AT TRUE -UP TIME) Vill TOTAL DOLLAR SAVINGS $657, Ix F, PRESENT mmom. SAVINGS X COST OF REFINANCING EXISITNG DEBT SERVICE NEW DEBT SERVICE NET HIGHER DEBT SERVICE FROM REFINANCING XI NET SAVINGS FROM CONTRACT AFTER PAYING HIGHER DEBT SER $e5 7,777 (UNE VII LESS LINE X) X11 TOTAL PRESENT VALUE COST OF ADDITIONAL FINANCING ($2,240). OVER 20 YR LIFE OF BONDS ................. .......... . . - X111 NET PRESENT VALUE SAVINGS OVER 20 YEARS (I LESS X11) S2,100,495 OLD GUARANTEE TONNAGE MrW nt $APAh1Tr-;: Tt)NNAM $7,176 $566 $eol $63 s7e5,006 s1.155,203 $1,216,167 $1.278,37. M.875 214,500 243,100 243,100 243.1C 47t• 195,CCO! 221,2M 22.1.L000 221JOC (�2231,519) ($223,519) ($2100955 0.95 $541.487 $931,684 $1,005,211 $1,067.42 M.875 214,500 243,100 243,100 243.1C 47t• 195,CCO! 221,2M 22.1.L000 221JOC Members Sheila H. Schultz Chairman, Bd, of Directors Arlington Heights Hoffnion Estates Park Ridge Barrington Inverness Prospect i�l'ei his George Van L�usen ,Buffalo Grove Kenilworth Rolling Me^alc«ws vice chairman Elk, Grove Village Lincolnwood Skokie Witham R Bailin g Evanston Morton Grove South Barrington Glencoe Mount Prospect Wheeling chairman, Exec. Committee Glenview Niles Wilmette C. Brooke Beal Palatine Winnetka Execrative Director TO: Executive Committee' - *� DRAFT FROM: C. Brooke Beal, Executive Director SUBJECT: Long Range Financial Plainn�ng F March 179 1995 Solid Overview _ Waste " Agency A J n 5, 1995 Executive, Com ittee ee&9 it was requested that (� options, to augment, t� e Agency staff review - various funding p g gencys, current No�h ern-„ .. +�effort. tocontinue, , This review "s beir� �"M� � � , Program, NN, � Cook r�" . ` providing SwANCC members with cost-effective d waste agement County services. 1616 East Goi, f Road� Lyes Plaines, IL 6001+6 The , Ste "'�""ard a�Mpls�hin� g goal w en ateFeb " �" � Phone 7OW 96-9205 �" �ew d discussion,, the Boyd � � "'"d of'Directors, meeting. � _ Fox- 70829+6-9207 concurred that a long contract to o the WTTS, in. conjunction with 4. long joint purchasing of land capacity, will assist in sham -term sa�,gs , and competitive tipping fees. p. s The, . ��next corn ner��t of e Ac s .� �few that n s to, be dry ping, capital . To date, the Agency h issued appro n ,ate y� ��million m dot which w can be. divided into two -, productive and non-productive. The productive w debt is the wheeling Township Transfer Station cost. This amounts to a x atply 2 ` d�includespitarlized interest, permitting ns tion d allocable overheadst. The remaining $37 million non- productive debt is the cost for the Balefill and the Rolling doves Transfer . Station �s also includesc pi rote t, g, ns cion d allocable overhead cost. The Agency iall payment for debt service until January 1, 1996. In addition, the Agency's FY96 budget provides that the debt service payments for January through April, 1996 be paid with .Agency reserve funds. Executive Committee Long Range Financial Planning Page 2 I Project Use Agreement (PUA) 01 DRAFT The PUA requires that -the Agency adopt a pro-Jectbudget which consists of fixed costs and operation and maintenance costs. ,The PUA requires that the Agency budget to collect 100% of operation & maintenance costs and 118% of fixed costs.,, The Agency then bills the members their appropriate share of the fixed and operation and maintenance costs. Members." appropriate share is based on the their percentage of Age'ncy''system waste. The Agency may use other "sources of funds to reduce member liabilities, as is being done in the upcoming fiscal year. The fixed cost of the Agency for FY96 consists principally of debt service notcovered by capitalized interest, which will be paid from 7 reserve funds. This realizes a fixed cost charge of $0 to the members. The PUA does not permit many alternative funding methods for the Agency. . What is allowed, and required, is the division of fixed and operation and maintenance costs, leaving debt service primarily as,,a fixed cost. When developing a published tipping fee for the WTrS, the staff is recommending that just operation' 'and maintenance costs be included in the quoted tipping fee. This will "allow the lowest possible rates for processing both member and commercial waste. Debt service will not be expressed as in the.WTI7S tipping fee,- but will be billed separately as required by the PUA. Debt Structure The Agency's current debt structure is outlined in Appendix A. In FY97, for example, the total debt service payment is $3,739,586. To fulfill the coverage for fixed costs, $4,412MI.17 needs to be raised from the members (see Appendix B). The Agency is required to pay one -twelfth of this amount, or $367,731.76, to the trustee each month. Conservative analysis estimates that the Agency will receive 221,000 tons of waste from members in FY97. 'A precise number is difficult to achieve as not all Agency members are currently delivering waste to the system, which provides for more accurate estimates of future deliveries. Also, additional waste, such as from multi -family buildings, could be added to the SWANCC system. 'When based on this worst case scenario, it is estimated that, in FY97, the capital charge would be $19.97 per ton for the entire Agency debt. A less conservative (but still realistic) staff analysis estimates that waste delivenies, will be closer to 250,000" tons. This would lower the capital charge in FY97 to $17.65 per ton. Executive Committee DRAFT Ung Range Financial Planning Page 3 These estimated waste deliveries are 53% less than those projected for a three transfer station and balefill system. This reduction is due to a number of factors. First, Agency members only committed 87% of their residential waste stream and not the 100% that was planned. 'This, accounts, for a reduction of 35,000 tons per year. The reduction is f m 3,34,000, tons , of'residential waste, magnited because in the planning, stages of the system, , J, were, thought to exist within the S'WANCC region. Now, that a majority of the members , can cal, are delivering, waste to the system and, more accurate waste quan titiesbe culated an additional 64,000 tons of waste has been lost due to over - estimates by the members on .waste deliveries. In total, these factors -equate to a system loss of 99,000 tons per year of residential waste. Second, the commercial waste stream was always planned to be acomponent, of the SWANCC system. The, planning documents called, for 20% of the commercial waste stream to be processed through the system. To date, only 4.6% of the commercial waste stream is committed. This amounts to a reduction of 119,540 tons per year. Th#d, the planniffia documents were for 26 communities, and the loss of the City of Des g Plaines and the Villages of Northbrook and Northfield account for a system loss of 60,000 tons per year. Aggregating these factors, 1996 deliveries are projected to be 47% of the earlier pr have all, ital requirements for the system jection,s., To m copensate for the shortf ,epi 0J been reduced,. We have implemented one of our confmgency plans bDr waste shortfalls by eliminating the Roffing, Meadows and thi:,%, third, transfer stations, savm*g approximately $34millionmi capital exi dtures. We now need a plan to finance the remaining capital pen on a smaller revenue base. Recommendation Attached are several potential revenue enhancement programs. These plans can be further explored and refined. I Agency staff isrecommendling that Options 2, 3, 5 and 7 be developed further with detailed implementation, plans and tipping fee impact proformas, produced. In addition, various refinancing options will be developed in conjunction with the private activity refinancing for the Wheeling Township Transfer Station. Executive Committee Long Range Financial Planning Page 4 QZ M"N SLaff R,=_..MMp�dg Creating a demand charge for all current and potential customers is not recommended at this time. This conclusion is based on concerns over the legal ability of non -home rule communities to enact the charge, and the Agency's inability -to impose this charge. QvLry �iet. A demand charge is a fee established to provide a base revenue for a utility. The revenue base covers a portion of the service which incurs cost whether or, not the. system is utilized.. A d'eman'd charge for solid waste services could be imposed on all potential customers mers (the legality of which is questionable for non -home rule, members) or just the customers within the members' waste systems. The charge could be levied to cover only non-productive capital or allcapital. In some ,instances, a demand charge is levied at a high enough rate to subsidize the operation and maintenance portion of the tipping fee. This is done to attract significant volumes of commercial waste, thus lowering the operations cost to all system users. mv ,n A demand charge of $1.74 per- system waste household per month (households whose waste is committed to the SWANCC system) or at $1.41 per all households per month (all SWANCC households, even those multi -family units not committed to the SWANCC system) could be levied to cover all outstanding debt service. per A demand charge of $1.07 per system waste household per month or $0.86 all households per month could be levied to cover all unproductive debt service. The Agency does not have the authority under the Agency agreement to assess rates and ' charges for debt service on a basis other than waste deliveries. Imnacton"11:10-ing If the demand charge could be instituted for all of the debt, then no debt service would be quoted in the tipping fees. Executive Committee DRAFT Long Range Financial Planning Page 5 CAPIT, AL 0,(fixed cost charge) mmendatign Sof" is recommending that debt service not be, included in the published tipping fes. Characterizing debt service as a capital charge rather than a component of a tipping fee .- - would Provide, the Agency with, revenues, to meet its commitments and would also provide embers with the most latitude to� raise revenue to cover the charge. Qygahkw. A capita charge would be assessed to cover the debt service, of the Agency, but the - tipping fee could be expressed either with the productive debt S debts or none of the debt that the Agency h *Issued. Thiscapital charge would be each members proportionate share of the members waste deliveries as required, under the PUA. . ImWmem ad The Agency would issue a yearly capital char oto each �nen°b�er based on each metHb er�" s g y A. Each member would �be required to remit waste deliveries as required under the PU . .1112 of the total bill to the Agency each month. The Agency would utilize these funds to pay the relevant cost of capital. w n . This option would allow the members to utilize numerous methods, of Winding, includ g property taxes, user charges water, bills), solid waste charges,, demand, charge,fund b general revenues, lid waste li n fees, ,annuity or other sources. The Agency would develop models for all of the above options found viable for both home rule and non -home rule communities. I='CA, o lin If the capital charge was instituted for all of the debt, thea no debt service would be quoted in the tipping fees. 'atgvPAe On spun,J SE luol SE 24el xamol E of pan plsgns aq p1noo saoj 2uyd4!s UIPUT.11 UP 10 •uou vgr !l agp jo owoogno atp jo ssalpietal inwo p1n6us uopenjena sT •par onpuoo aq u o uo 4vnjena siasse maldwoo -e `popntouoo si uouRsgq Ilg2U age : uC1 •saaj gwddu 2uizip!sgns w asn jequa;od ioj somasai um sl! iolsloq of Aoua2v agp mane pinom s� • uau do anap ioj mjvcu= iou sxasse an-gonpoid uou Aim Isanip oz ui�aq pino�► �oua�C� au • Uop fl- wl ro 'iuowdojanap k3uo2v ion pauueld uauno fou am uogmS iajsuj, d gsumo,L 2uiaagAk 4tp Nunn fpv �adoxd JO s-Me L Alavewmidde `uogzppr ul 'sueld juacudolanap IP,�a g acp ut uor zggn .xo, of jou s uno o u d ar swou gl 4jajmjxojddV,n a , sn cbns* pajap1swo Aoumidou st pur, iumdolmop RUon ol polvIalsilpuln aqj jo pofeag,Z, •sopunoo ouvX pine 3loo,o tpoq ur Puei jo same 009 rano sumo Anuamno kwo2V oU •ssoxoaxT(I jo pieog age .. . Aq snldins p ' woop uaag an�eq goigm slasse oAnonpoid-uou Ilas of u!Saq pingo AouagV aU •saes ut pazuausaiduii pie paenienaaaiduroo aq uo;.1do sighs JJMS uoc, 1 Nom' g ae, 2uiuuet,l Topmula OSLMH sucrl JAW(I 2211!t WOO antlnoaxq Executive Committee DRAFT Long Range Financial Planning Page 7 QM-QN' 4 - -,,R1EGjjLA, MRY a m,mgn ht ,o,n Staff is not recommending that members expand regulatory flow control to increase waste S. the U.SSupreme Court volumes. In the recent Carbone V. Clarkstown, N. Y. decision, p established severe limitations on how governments may exercise regulatory authority over solid waste generated within their boundaries. Overview Prior to the Supreme Court's decision, Agency members could have passed local ordinances requ�g certain sectors of the waste stream -to be delivered to the SWANCC system, This power. known as flow control, would have provided the SWANCC system with sigruflicant, volumes, of" waste: , The additional waste would have provided very competitive tipping fees. Since the Court's decision, many communities have been forte -to subsidize rates at government-owned facilities in order to remain competitive and continue to attract solid waste. p1gMola tin - No implementation strategy has been developed as this option is not legally available to the Agency or its members. With the addition of up to an additional 500,000 tons per year of solid waste, the total capital charge is estimated to be $S per ton. Executive Committee DRAFT Long Range Financial Planning Page 8 012M, N'5 - XCLM�WE FRAN(:H"LSE OR._U!QEMES Rgr &mmgndatiQn, Staff is recommending that this issue be reviewed more completely. Some communities*,, have exclusive licenses or franchises for all waste generated within their borders. Qvervim An exclusive franchise or license allows only one hauler to provide collection services in a community,. Several SWANCC member communities have instituted systems similar to this. For example, the* Village of Barrington has a contract with one exclusive hauler for all sectors of the community, including single and multi -family residential and all commercial. The Villages of Palatine, Mount Prospect, Elk Grove Village, Wilmette and Buffalo, Grove have an exclusive, single and multi -family residential license. The VW, age of Skolde and the City of Evanston have mult.ale fianchises. AII'mars utihzm,g a private hauler for single family residential have one component of this type of system already in place. The benefit of expanding to multi -family and/or commercial is that doing so would capture additional waste for the SWANCC system and serve to spread operating and 'capital costs over a greater amount of material. lm en�en tib -The premise behind the concept is that the collection of municipal waste (residential and commercial) is a municipal function, and a private firm is the m'umicipality's agent to conduct the municipal service. This type of regulatory structure, where the municipality includes the additional sectors (multi -family and commercial) in its contract structure does not violate the Carbone decision as long as no corresponding restriction on competition is invoked. Impact With the addition of up to an additional 500,000 tons per year of solid waste, the total capital charge is estimated to be $5 per ton. Executive Committee DRAFT Long Range Financial Planning Page 9 C [PAL Recom-men i Staff is not recommending that the Agency require all of its members to implement municipal collection services for municipal waste. verview 'The Supreme Court's decision "inn Ca11 rbon° V. Clarkstown, N. Y. does not affect municipal collection of solid waste. Communities like Winnetka that u� muMcipal employes for the collection of the entire community's waste (including commercial) are not be ro � In the Mme - Subject, to the flow control ruling as flow control is not being regula mer that a private hauler, would provide service to all Victors of wa cornu ity In, rn Op tion 5,. Winne is providing a municipal i to all sectors of the corn um' tion and private haulers are not affected. u IMR leM trate has been developed as this option is not recommended for No implementation- strategy _ P'� - further consideration. Imnact,i�n - with the addition of up to an additional 50%000 tons per year of solid waste,- the total capital charge is estimated to be $ per ton. Executive Committee DRAFT Long Range Financial Planning Page 10 Rto-m-mend,aflon Staff is recommending that the Agency continue to attempt to secure private waste N contracts, Overview The Agency has identified possible private waste volumes which possibly could be -secured for the IT'S. The success in securing thesewaste volumes depends on many ith issues, including debt service payments, c g ' d n c�al wi even the facility operator. imlil—imw e The, implementation strategy of wring private waste wig. differ with each potential . cu�s�t�oner.� Detailed implementation g� i�iiat once the',, state ��� be developed contractual issuessurrounding the WITS have been fin � �� ,., IMVact Oun lintUniz The additional revenue per ton over the cost of processing the waste will, be utilized to reduce the debt service of the members. tl y M- 14 -Feb -95 1992 1994 Debt Service Debt Service FY Payments ay m e n fia.Total 3, 3 0=13 -P 232, N8,1111, 31,11111, 1 39, 85 2 1997 3,507.338 232,248 3.739,586 1998 5,277338 232,248 5,509,585 4 1 99 5,277,333 232,248 5,509,581 5 F3 2000 5,278,873 412,248 51691!121 6 2001 5,277,053 414,148 —5,591,201 7 2002 5,281 415,218 5o696,571 8 2003 5,280,628 415,618 5$696,246 ---- ------9 2004 51278 420,628 5,6989756 10 2005 59280,,313 419jO78 5,61391 11 2006 5,279753 422,09 3 6 5 701,84 12 9 2007 5277.313 1 424093 �§07010406 13 2008 5,276,338 425$048 59701,386 14 2009—, 5,277 424,928 5,702,616 15 2010 51280s388 428s850 R 51709$23 16 2011 & ej3 5,278,46 1�_ 426,525 51704,19 a -0 17 2012 5127§9563 428 5,704,938 18 2013 .5,277,813 429,125 5l706938 19 2014 5,277,813 428,775 �,7069 8 20 2015 5o280$625 332j3 5$6120 Total�f f"4�--102.02 1462 71596,061 109,6524, 513 Appendix B $4,412,781.12 Debt Service Payments 118% Coverage Estimated Waste Debt Sem"ce Member elivees Percg. - aMM Arlington Hts 24;000 10.84% $4789192.59 Barrington 31323 1.50% $669209.75 Buffalo Grove 14,500 6.559' $288,908.02 Elk Grove Village 13,008 5.879 $2599180.38 Evanston a 16,452 7.439 $327,801.02 Glencoe 49000 1.819' $793,698.76 Glenview 11,172 5.04% $222,598.65 Hoffman Estates 8,800 3.97% $175,337.28 Inverness 29800 1.26% $559789.14 Kenilworth 1,245 0.569 $249806.24 Lincolnwood 3,600 1.639' $719728.89 Morton Grove 7,296 3.29% $1459370.55 Mt Prospect 19,920 8.99% $3969899.85 Niles 89262 3.739' $1649617.80 Palatine 15,976 7.21% $318,316.87 Park Ridge 11,673 5.27% $2320580.92 Prospect Hts 3,200 1.449' $63$759.01 Rolling Meadows 6,000 2.719 $1199548.15 Skokie 18,660 8.43% $3719794.74 S. Barrington 1,366 0.62% $270217.13 Wheeling 71200 3.25% $1433457,78 Wilmette 10,020 4.52% $1999645.41 Winnetka 9,000 4.069 $179,322.22 Total Tonage 221,473 100.00% $494129781.12 Alembers Sheila H. Schultz 9 Chairman. Bd. of Directo,,, Arlinston. Neig is 11offinan Estates Park ,Rid /,e Barrington Inverness ViInQfka ig "ts George Van Dusen Btiffolo Grov Kenilworth ivs vire Chairman Elk Grove Village Lincohmood -�'" Evanston Alorton Grove gton William R. Bolling Glencoe Wount Prospe') Chairman. Exec. Committee Glenview NilesC. Brooke Beal Palatine ° Executive Director DRAFT' w TO: SWANCC Board of Directors FROM: C. Brooke, Beal, Executive Director K RE: � � bong Range' Budget Planning. DATE: May 4, 1995 .olid , w Ilizste Agenc Prolect Use Agreeme nt (PUA) - 1"'r► ortlt r e«s a Cook The P�� t the Agency a post budget consists of fix d oand County � � �tion . b 1616 Fast Golf Road . � � - - . t Agency g .P Des Plaines, ' � �` �, �oII � IL �ac�r � ��� The P13'A. � � that the A. enc bud et t+� collect 1 Oo to of o erat� Phone 7081296-9205 �o ��-9207 � ten�� �d�� .1�1 ' � of ed �st�e A��� �en bs the e Fax W members. their appropriate ���a�e ofthe fixed d operation, d. n � tens cow., Members! appropriate share is based oii their Woentage of Agency .. system waste: w The Agency may use other sources of funds to reduce member liabilities, as u .'fie coAgencys berg done inn the up ming of the or �" i� cip ly ofdebt, �ervic not, :covered b capita�l1 ntere n n . f M °" r w wlc p1YNdd o reserve ds The, Agency's adopted fiscal. year 1996 budget mcludes the -use oaf appro ately $1.3 million of r=rvei fids, for bt n serv�ce� payments. The useof reserve funds to � . i zetipping fees was recommended taw afford the b�s�d members,the lowest possible costs for processingwaste. s realizes a fixed, cost charge of $0 to the members. . The PUA does not permit many alternative funding methods for the Agency. What is Mowed, and required, is the division of fixed and operation and maintenance costs, leaving debt service pi airily as a fixed cost. DRAFT Board of Directors Long Range Budget Planning Page Z u Debt Structure The ;Agency's current, debt cue is outlined in Appendix A. In FY97, for example, the total debt service pa �ent is $3,739,586. To fulfill the coverage for fixed costs, $4,41,2,781.4$ 4 118to sada to be raised from the members (see Appendix B).' The � r Agency is required t pay one -twelfth of this amount or $367 725.96 "„to the trustee each month. The 1 8% coverage is required by the Board Resolution and is a one- time chargeto the members. God t utiela aend estimates at it v220 tons of waste o from' members � ..p_i numberdifficulttoe oI en rsare cd.des for more Mo a cho aces of a deliveries., •on , to ; omulti- am, .y 'addedto e o this . cons mi1e 6 n �'o it . eiated that, ib 7, the capitalcharge- would be $1.9.97 perrton,for the entire ency ,debt. A lei conservative(but still realistic) l ysis, "estimate's that waste, deliveries be closer to,250,900tons. This, would lower th,6 pital charge. FY97 to $17.65 per, ton, ,or,$1.3per household'per month. Alternative Financing Methods a Agency', staff and the Executive Committee have been' investigating alternative ge Agency and its Members to avoid placing the c e Ova able to gm.s l debt burden tipping fees With a recent Supreme Go disio. glo gova tintsnbi�t to control the flow of waste severely generated its borders ap � venue for solid ��w a projects has sourceof � been in ary, the foll&ing options are available . to the Agency and the Members; Agency options; L Reduce or, fix expenses for operation of the WTTS and for long -terns disposal tong -term Groot contract and private activity refinancing). 2. Increm the use of the wTTS by private waste haulers, 3. Liquidate underutilized Agency assets. 4. Reschedule portions of the early debt service payments. DRAFf Board of Directors Long Range Budget Planning Page Member options:, l Incre� rates and Current systems users � charges to 2. Subsidize rates and charges with other revenues. wM 3.Exp waste col so� ice, newcustomers' w . 4 o "municipal staff and.,', S , b,e,'sc'b,,eM, "mg, a senes of infDrina.ti'Onai m � .. - .. opt ons which the, elected o c a , late May and, early e dididu individually Joy.Members c lec ve y w M w meetwigs.-, forwm .. edb�l l be A, den information act ou �a ou po outin .. ove aided to you ad of a ,o m nalinfbiln m w � �� B�oa action on d coil eve ure �"requireAwill be scheduled for date � Ener . m R "MMY// or *",a� ,,. �, ran � „. � ,, a � �. " .. .. � ,., i, ,. W �` � x �i� ��, s � m " •, �„” .� �" hive questions orrequire e erinformation,' plebe contact., e. 4 Debt CoveredDIS „ Fixed Costs Service By Cap Int Billed to Payments A a III IIIII III Funds Members at 118%Coverage • I �•I 52723,79810 • �# • • � I � ;MMS n rWi 11M q/• ! ��i*����1� • 0 .... • • • ... �.. ! �... ANN SIM ,.� pow � unl � ! • � . ��, ! • 57011382 ! 5,612,950 yv NOW 11111111111111111 qpq!I!!II " y �n IE Member Capital Charge Appendix B - FY 1997 Debt Service (1181 Coverage) $4)4121711.48 based on estimated waste deliveries in FY 1997 Fiscal Year 1997 Member Debt % Anne on Arlington Hts' 10.841 $478,185.04 Barrington 1.50% $66,208.70 Buffalo Grove 6.551 $288,903.46 Elk Grove Village 5.871 $259,176.29 Evanston 7.43% $3271795.85 Glencoe 1.81% $79,697.51 Glenview 5.04% $222,595.14 Hoffman Estates 3.97% $175,334.51 Inverness 1.26% $559788.25 Kenilworth 0.56% $249805.85 Lincolnwood 1.63% $710727.76 Morton Grove 3.291 $1459368.25 Mt Prospect 8.991 $396,893.58 Niles 3.731 $164,615.20 Palatine 7.21% $318,311.84 Park Ridge 5.271 $2329577.25 Prospect Hts 1.44% $63,758.01 Rolling Meadows 2.711 $1199546.26 Skokie 8.43% $3719788.87 S. Barrington 0.621 $27j216.70 Wheeling 3.251 $143,455.51 Wilmette 4.52% $199,642.25 Winnetka 4.061 $179,319.39 Total 100.00% $4,412,711.48 based on estimated waste deliveries in FY 1997 Members Sheila H. Schultz ` Chairman, Bd. ajDirectars Arlington Heights Hoffman Estates park Pike George Van 13usen Barrington Inverness Prospect Heights 8 Buffalo Grove Kenilworth Rotting Meadows vice Chairman Elk Grove Village Lincolnwood Skokie Evanston Morton Grove South Barrington William R. Balling Glencoe -Mount Prospect WheelingChairman. Exec. Camminee Glenview Niles Wilmette Palatine Winnetka C. Brooke Beal Executive Director DRAFT q TO: Executive Committee ) � FROM: - C. Brooke Beal, Executive Director,, RE ## Recommended Long Range Financial, Ilan � Solid WasteiA'�"E: April 19, 1995 Agency n m Northem This memo elaborates on the 'alternatives faei�g. th,e Agency and the Members � A �'aok� a � _ m t,o age debt w payments, , Y9� - Development of a long',, C� i.�12ly M � ge fn . � �c al� pl is� �' � portant t pres�at on o� to rate on the Agenc y s, 1616 East Golf Road debt Des Plaines, IL 60016- Phone 704/206-9205 - As you recap., the.Agency capitalized interest through January 1, 1996 to permit Fax 7OW96-9207 all Members to t mnsition to use of the Agency waste sy tem. The l� of the bond proceeds borrowed to pay debt service be used fund' g� the � "� : aethe stps which, cin be takes ', the Agency andbud etThis memo autlis e. the Members tO pay the $3,700,000 coming due*in FY97 and $5,500, 000 coming due in FY98. - . � y �` p y n alilOuIIts 'tlIIder the whale the Members are collectYvel obligated to -a these Project Use Agreements, the Agency is 'seeking . ways 1o, . increase, Agency_ revenues or reduce its expenses in order to reduce the Membersobligations and* to assist the Members mn identiffin.g revenue sources to' satisfy their obligations. This memo describes the following options available to the Agency and the Members. -Agency options:, 1. Reduce or fix expenses for operation of the WITS and for long- term disposal. 2. Increase the use of the wTTS by private waste haulers. 3: Liquidate underutilized Agency assets. 4. Reschedule portions of, the early debt service payments. ARA FT Executive Committee - Long Range Financial Plan April 19, 1995 °� a Member options; 1,. Increase rates and charges to current system users. 2. Subsidize rates and, charges with other revenues. q 3. Expand waste, gollccion service to new customers.. a AGENCY ACTIONS I . . ° Rednce or Fis Lon Term fer tati and Di oml E eases. ��� ill/landfill ca act issue .ex�u Ion, nleh A�enc can address6 Bale, a to 'Ian 11 ee�eot. "fie disposal . ', awe eat elremove e M w preserve the Agency s .reh co 9 on e efill its' only- di tion. tAt th,esame timec u .� -a" manne b e o a l cye :•r that ' L 'Agency's nights to utflize. the Balefillt- option.envirotumentally sound disposal, �� �addit ;on, � a long- , , conbct to w t�e� the eel n �� p Trans � . the amento dment, in contract) willalluw forStationnconl 4 M immediate vin m embe�r tipp g fees. It °Will' also low for pro r _ming , ; g ��of ► ti�y e � �� budgets rode known, co c� � , private waste contracts. � cts� TheAgency gwill also obtami, thesubstantive economic bene t of pr+ c"essmg more waste,"aOYTTS. Conversi,on, of rou $25 tniflion`►its t d � . debt * p vat, 6activity bonds i's necessary to achieve savings in the a Renegotiation and expansion of the operating and disposal contracts will* reduce projected costs_, by $1,155,203 in. F"Y97 and $1,216,157 in Y98. The. Board unanimously endorsed this concept at the Februar'y Beard meeting. 2, Increase eof b 'vats a ler i If the Agency can expand the use of WTTS by non-members, a portion of the debt service can be charged to these customers. The Agency's refinancing of the 'WITS debt will allow ,the Agency the. ability to enter into long-term contracts for private waste. 2 DRAFT Executive Committee = Long Range Financial Plan April, 19, 1995 2. cr�a a the "ase of WITS S b x a e Waste Haulers. (continued) r However; the Agency's ability to secure private waste ultimately depends on the market for transfer station and landfill capacity. Recent trends in area tipping fees osts are st show that c art�ng to rise. With the pending closure of e a Page County landfills, and the recent exclusion., of Illinois waste o Wisconsin landfills, pressure is mounting for significant increases „eases in area. tipping fees. The A g y has had prelrmnary discussions with waste generators and enc collectors to gauge interest in delivering waste to the WTT . While interest is evident, landfill tip p g i more to,act si i is t amounts fees used tonere sl tl g p of evelop g strategies o euro private of waste. The A ens is in a rocess o waste, ona contractual basis.,, .. cc sstof ongo��gAgency outreach tcpossible' assi a p��waste- e, sup"1�e� the S system, contact to informthe potential customers of the benefits of RT periodic economic and service benefit comparisons with. their current method of W waste disposal, and through participation in 'waste industry forums to provide the industry information concerning the Agency's waste disposal pr+grain. P' " �_' It is not expected that- this option' wfil produce � (cant bene�t�s til market prices ..ate +crrapeting facilities increa.s, neeless publication of uppgee which excludes fixed costs will permit the Agency to develop customer relationships which can produce benefits over time. 3. i uid Assetg. Asset evaluation, should he conducted to provide the Members with,a schedule of values for, theAgency's, assets. Along with, this schedule of values, alternate development plans will be formulated for each asset. Once this is complete, Members can determine which asset development plan best meets the Agency needs in light of its overall purpose and operations needs and desired financial supplements. DRAFT Executive Committee - Long Range Financial Plan April 19, 1995 4. Debt Restructu�n . To phase in the long range 'financing program, staff is recommending that the May, 1996 and. the May, '1997 debt service payment (which consists of interest . only) be refinanced along with , a portion of the November, '. 998 principal ($770,000), with $1000,000 of the principal, remaining due on that date. By refinancing the above obligations, the Agency's debt service, requirements for the next 36 -months would- be reduced approximately 50% to $1,649,771 in FY979 $3,913,187 in F,Y98, and $4,953,506 in FY"9. g y payments portion principal; . By. refinancing. the next two Ma a ents, and, a of the rimciP al; the µ increase in debt service payments can be phased isi over three years. This will provide the Members .that choose to utilize the commercial *waste program approximately 24 months to establish the system and allow current contracts to expire. if, required. e cinug� ' thi po oh ofthej Agency's' debt sk ce' will cost the Agency $1, ,921. on a net present °valuebasis over; twenty° years.. L 41 REFINANCING' ANALYSIS NET PRESENT VALUE BASIS ADDITIONAL INTERIM COSTS In addition to the debt restructuring, the Executive Committee inquired if any additional funds would be required to finalize the Balefill development in a timely manner. Staff has estimated that an additional $5002000 in interim cost could be bonded to ensure timely development of the Balefill. Without the additional funds, Member assessments F o. 4 DRAFT Executive Committee - Long Range Financial Plan April 19, 1995 w would be utilized to finalize the Balefill development and could possibly hinder the timely opening of the facility. When final regulatory approval is secured for the Balefill, a comprehensive analysis of development options will be instituted. This analysis could be conducted expeditiously and comprehensively with the additional funds. If the final approval for the Balefill is not secured these funds would be earmarked for debt retirement. Bonding an additional $500,000 will cost the Agency an additional $526,104 an a net present value basis over the next twenty years. MEMBER ACTIONS The, Project Use Agreement requires the Members to- impose rates and charges on - customers of its Member waste systemsufcient to- pay the operation. and maintenance costs and faced. costs of the Agency. As an alternative; -Members. may provide for payment in whole or m part from alternative revenue sources, pro vided*that they provide the Agency with an ordinance or resolution making that election and (i)-. deposit cash in their relevant enterprise fund equal to their estimated obligation under the protect budget, or (ii) pledge and assign to mthat enterprise ,fund previously levied, but not collected, taxes. - Rates d es. TM m m cre�a ., . The FY97 debt service costs equate to approximately $5.70 per capita or $1.3.801 ° per household across the -Agency's Members., To the extent that a Member's waste system encompasses large portions of its community, an increase in rates and charges may be an effective method to provide for payment - of the Agency's charges. 2. Sphsidize $e�rvilce wyith Other Revenues. Non -home rule Members are authorized to levy property taxes to provide for waste service. The property tax cap legislation may effectively limit the availability of this resource for those Members. Nome -rule Members are not so limited and also have other revenue raising alternatives they may wish to consider to provide for payment of the Agency's charges. 5 Executive Committee • Long Range Financial Plan April 19;,1995 µ u .x sior pf,,KasLe Collection. embers may to provide the benefits of the y be able p Agency sys , Mtem to unserved or underserved portions of their community by expanding service to multi -family, institutional and commercial customers. There are many ways to accomplish_ this -expansion.. One. alternative is described in detail, . _ a Members can increase the amount of waste being delivered ; to 'WTTS by,. expanding their existing, systems under the ,PUA;.. by .entering, mtocustomer contacts with Agencyor by causing or encouraging private haulers to use WTTS. . 4 -an embers couldestablish aic>n-+exclusive fichis+e ur contract with a hauler and require' the haulei to bill municipal -suet rates . and charges as their agent to all commercial establishments within the community. -Or, the: coy m. *ty could leery u p p r� .� p ba service could �. a roe to abs �l or, of the base c�. The.., . be, for .exmphe once per Week—pick', up of a one cubic y,;vd cont�ain,er plus recycling, - There ;mould be no requirement for a business to utilize the municipal m services provided by. the hauler, but- the service fee' must be paid to the municipality or its agent, .: If a business requires additional service, it can opt to pay an additional fee- for a I'argler container or ore cc. These additional service prices, would be established by the m icipality through contract the selected hauler. Other; haulers cold still receive'a license"toprovide service in the conimuaity if M ..a, business not to utilizt the municipali`tys hauler. fact,, wte ce�e d w on ro ion e o de d only would not be cov e e franchise or contract, thus allowing other haulers to provide service in the community. The waste collected under the agreement would be brought to the WTTS under an arrangement outside the Project Use Agreement and be included in a member's waste guarantee. The Agency would charge a rate. higher than the Member rate. 6 Executive Committee - Long Range Financial Plan April 19, 1995 To the extent the Agency was collecting revenues in excess of expenses, the* revenue difference between the Member rate and the commercial waste rate would be split with the Agency applying its share to reduce the debt service charges to be imposed on all Members and the Member share applied as the ember chooses, ito including payment . . PP. is . share of Agency ed cost This arr gement way be the Agency as the ern necessarybecause waste delivered under the PUA increa ses the Membtes share of Agency, charges. The " A oh n mechanism was designed to act as- a disincentive to increased deliveries. St is reviewing e legal constraints with respect to this option. W 0, To ° lu ate �if theMember rate, is $4235, and the commercial rate s $49351 a .0 difference would be divided, 50,/50. e Agency woul apply, a , of the revenues is share to the. A enc s deft service costs so all Members, would benefit from add�o°nal waste, v g y deliveries. The Member would also receive a credit of $3.54 per tan, and could also elect tq apply this credit. to its fixed costs: charge.° Followingare a fe �, r impact on ,Agency Members. w examples of the program's potential �m Under these'scenarios, Member's fixed east. payments would remain at 100% coverage, and A enc reserve ds would be utilized, to d the re Hain g 18% excess coverage required for fixed costs.. Glenview Glen is estimated, to have 2,4+ 7 tons of mull f tl � e and 3�9 100 tons of commercial waste. If all'of the multi -f � was . y t e -and 80% of the commercial, waste is secured under this pro � , then Glenview would receiv�c a $3.50 per ton rebate for the 33,747 tons of waste brought to the wTTS under the new agreement. This amounts, to $118,115.20. lep�ev/s estimated proportionate ���e of ped costs is 4.83 1 l,I 72 toys of waste, out of 231,445 tons of 'total Agency Waste,- After deductlmi ,g the additional waste rebate; net revenues of $26,113.27 we realized. Barrington - Barrington has approximately 306 tons of multi -family waste and 4,400 tons of commercial waste. If all multi -family waste and 80% of the commercial waste is collected, 3,826 tons are realized. Bwngtun s additional e nal was�te abate would b $133,392.40 (3,826 x $1.50). a ingtoes, estimated proportionate share of fixed costs is I.44' (3,323 tons, of waste out of 231 445 tons of total, Agency" waste).ng er deducting e additional waste rebate, the Villages capital charge(fixed cost) would 513,972.66. This e ipp* g $0.35 per month, .. � quotes to, annual, �ncrea�se �n resident�a � �n fee of 4.�� or Per household. Barrington already has exclusive franchise for a enure mmunt , so implementation would be relatively easy to institute. 117 DRAFT Executive Committee - Long Range Financial Plan April 19, 1995 If all. Members instituted the" above program and 80% of the available waste commercial is secured, the Members' FY96 fined cost charge would be reduced from $3.7 million to approximately $1..95 million (Appendix A). If the Members apply the rebate to their share of the Agency fixed costs, the aggregate cost is approximately $72,500 or approximately - $0.31 per residential ton , or less than $4.11 per household per month. These figures are an aggregate, and some communities receive larger credits than others, but all Members ,receive 50% or approximately $1.83, million credit against their debt service charges. This program offers an opportunity to expand the municipality's recycling program to commercial waste. Currently, few if anyy,S'WANCC communities mandate recycling for m _ . y e pay . (as dents but nem was require resp idents to � a forthe, service as we as or solid Collection). parallel�� wo�d e bled f�commercial r ul am' and u rs.. To provi M TO, Executive Committee - Long Range Financial Plan April 19, 1995 In addition, single family residents could also benefit from a single solid waste hauler through reduction in their collection costs if the residential hauler is the same as the commercial hauler. . 000� . St believes the above commercial waste program satisfies the legal principles in the various court decisions concerning flow control of solid waste. However, legal analysis is continuing as to how best to structure the program for both home -rule and non -home- rule Members. PROGRAM PHASING Staff` is recommending that the Agency phase in the program over the next 24 months. If the Board endorses the recommended program this summer, then the program. can be instituted in conjunction with the refinancing. To reduce the immediate impact of debt service payment by the Members, staff is recommending that the first two years debt service be reduced 50% and refinanced and restructured and if the. Board deems necessary an additional $500,000 in interim cost be raised for - final Balefill development. If . restructuring a portion of the near term debt is restructured, communities will have -24 months to develop and implement the commercial waste program while phasing m the debt service payments to the Agency or to devise other altematives to fund the costs, associatedwithAgency debt service. The rating agencies will not look favorably upon deferring debt service payments unless a comprehensive program for stabilizing tipping fees is in place and partial payment is made by the Members. By implementing the recommended long-term financing program, v . the rating agencies would see a blue print for stabilized tipping" fees and for providing cost-effective solid waste services. With these programs starting simultaneously, the Agency would be able to ,maintain a strong bond rating from the rating agencies, lower, bond insurance premiums, if utilized, as well as attract more prospective buyers of solid waste bonds. 9 DRAFT Executive Committee - Lang Range Financial Plan April: 19, 1995 + SUMMARY If the above program is instituted over the next 24 months� the inc arses in.Agdncy charges to, :Members " and Member, charges' to their customers Wilf be stabilized. In, addit on, the A,ency would. "address, the long -tem 'financial � conc�e s o,f the gating m .r agencies lay well as borer the arketg d ,vi,ahility o thg bond sale. x N uu � s P. tl k m ,m .➢ ., i u m r ,Pa '�, w P U• � ,n a', M a. m' a n ,i a x a air n IW r x � � a ➢ .. w N w, ,� a ni �, m m a r ^ ''` M1�I tim e,o- p M r ° fl n,:,,u. � ,w a ® . � a � w'm w r rp . � � � x iAf c � � u m r ^ m N , M n > p w v n0 w, N tl "rl .H: "� re "• w w m �m 4 ai a a w ry n m r w m a o W 110 Appendix A Option: Member Recleves SO% of the Rebate FY97 TIPPING FEES - Residential $42.35 - commercial $49.35 Capital Charts Member Rebate $3.50 $1,906,042.40 Member Waste Remining Res. & Capital Cott Cost per hh PUA Waste Fixed Cost RemainingWAM Commercial Commercial Commercial capital Charge IS11AI Cost, por 2a Per Month 1 Deliveries Chaw Roid��� WAUL" Arlington Huu25 33,482 $549,042.41 0 69,900 55,920 31826 $195,720.00 $13,392.40 44.68% 1."% $279,843.31 527,365-06 $84,123.31 513,972.66 $2.48 54.20 $0.39 $0.36 Barrington Buffalo Grove 3,323 14,500 $53,6gg. 5234,274.47 306 110024 4,400 11,500 209224 $70,794.00 6.26% 5.62% $119,409-16 $107,121.47 $48,624.16 ($230,358.53) $3.35 ($17.72) $0.37 ($1.36) Elk Grove Village 13,009 $210,169.43 0 11,691 120,600 42,400 96�480 45,611 $33700-00 $159*639-20 1 7.1196 4L fw $135,492.96 ($24,156.24) ($1.47) ($0.14) Evanston Glencoe 16,452 40000 $265,,912.66 $64,627.44 962 7,700 7,022 $24,579-40 $118F115.20 1.73% 4.83% $32,940.18 $92,001.93 .$8,361.78 (526,113.27) $2.09 (52.34) $0.33 (50.20) Glenview 11,172 $1800504." 2,467 30840 39,100 22,800 33,747 22o080 $77,280.00 3.90% $720468.40 (54,911.60) (30.55) (50.03) Hoffman Estates 80800 $142,190-37 87 0 87 5305.20 1.21% $23t058.13 $22,752.93 $8.13 50.93 Inverse" Kenilworth 208OO 1,245 $45,239.21 $20t 115.29 0 2t2OO 1,760 56,160.00 0.54% 1.56% $10,252.63 $29,646.16 $4,092.63 ($479.04) $3.29 ($0.13) $0.41 ($0.01) Lincolnwood 3,600 558j164.70 527 289 10,100 20,200 80607 16t449 $30,125.20 $57PS70.80 3.15% $60p082.89 $2,512-09 $0.34 $0.03 Motion Grove Mt Proqwt 7,296 19t920 3117,980.45 $3219944.65 0 29t2OO 23j360 $81,760-00 8.61% 3.57% $164,042.10 $68t037.94 $82,282.10 ($19,238.06) ($2.33) $0.32 ($0.22) Niles 8,262 5133j487.98 2,936 0 27,500 39,500 24o936 3000 $87,276-00 $107t800-00 6.90% $131,563.08 $23,763.09 $1.49 $0.13 Palatine Park Ridge 15,976 11,673 $258t121-99 $188,599.03 2,626 14p300 14,066 $49,232.40 $49,426.00 5.04% 1.38% $96,127-68 $26,352.14 $46,995.28 ($22,073.86) $4.02 ($6.90) $0.37 (50.64) Prospect HV Meadows 3,200 6,000 $51,701.95 $96,941.16 2,716 2t922 139900 22,600 13t&36 21j002 $73,508-40 2.59% $49,410.27 ($24,098.13) (S7,073.66) ($4.02) ($0.38) ($0.41) ( $0.04) Rolling Skokie 18,660 $301,497.01 7,206 48j400 45o926 2,610 $160,739.60 $9,136.40 s.o6% 0.59% $153,665.94 $11,249.07 $2,112.6 $1.55 22 $0..48) S. Barrington wheeling 1,366 7,200 $22,070.27 $116o329.39 50 4,658 3,200 30,100 28,738 $100,594.40 3.11% 4.33% $59,292.33 ($41,292.07) ($5.74) $5.87 ($07 $0.52 Wilmette 10,020 $1619991.74 460 7,900 0 6,780 0 $23o730-00 $0.00 3.89% 574,115.41 $74,115.41 $9.24 $0.69 WinnelkA 4,000 $145g41l.74 0 231,455 $3.739,586.00 54,670 596t5O0 523987.0 $1,833o543-60 100.00% $1s906.042.40 $72,498.80 $0.31 Total Tonage C-.U23w4djMJUN=M'st&w10 total system tonage 755,325 Members RE: GROOT CONTRACT Sheila H. Schultz Arlington Heights Hoffman Estates Park Ridge Chairman, 8d. of Directors Barrington Inverness Prospect Heights George Van Dusen Buffalo Grove Kenilworth Rolling Afeadows Vice Chairman Elk Grove Village Lincolnwood Skokie in 2004 Which coincides with the call date of the bonds. Evanston Morton Grove South Barrington William R. Balling Glencoe Mount Prospect Wheeling Chairman, Exec. Committee Glenview Niles Wilmette increased by the percentage change in the Chicago Transportation Index. Palatine Winnetka C Brooke Beal meeting. Executive Director TOS Executive Committee FROM, C. Brooke Beal, Executive Director OX6 RE: GROOT CONTRACT DATE: July 19, 1995 Sofied Attached for your information is a memorandum prepared by Mayer, Brown & Waste Platt which summarizes negotiated amendments to the long-term agreement for Agency operation and maintenance and hauling services regarding the transfer station. Since the June 28, 1995 Executive Committee meeting, I Met with Groot �%f representatives and reached agreement on issues over which the Committee Not -them expressed concern. For example, the agreement now contains no guaranteed Cook . 4 minimum tonnage, and the Agency may terminate the contract for convenience County in 2004 Which coincides with the call date of the bonds. 1616 East Go ' Road Des Plaines, IL 60016 Groot has also agreed to a number of amendments pertaining to the escalator Phone 7081296-9205 Fax 7081296-9207 clauses in the agreement. For operations and maintenance,. Groot will receive 80% of the change in the Chicago CPI, subject to SWANCC's right to request that Groot justify the need for the increase. For transportation, costs will be increased by the percentage change in the Chicago Transportation Index. The revised proposed agreement will be discussed at the upcoming Executive Committee meeting. Please call me if you have any questions before the W .4 meeting. BERLIN BRUSSELS HOUSTON LONDON LOS ANGELES NEW YORK TOKYO WASHINGTON MEXICO CITY CORRESPONDENT JAUREGUI, NAVARRETE, NADER Y ROJAS 190 SOUTH LA SALLE STREET CHICAGO, ILLINOIS 60603-3441 July 19, 1995 TO: Executive Committee Solid Waste Agency of Northern Cook County It 1. FROM: David Narefsky Lawrence E. White Mayer, Brown & Platt 312-782-06W TELEX 190404 FACSIMILE 312-701-7711 RE: Summary of Wheeling Township Transfer Station Agreements On July 27, 1993 SWANCC entered into an -Agreement with Groot Recycling & Waste Services,, Inc. ("Groot") for operation and maintenance, hauling and disposal services at SWANCC's waste transfer station (the 11WTTS19. (This Agreement is referred to as the "Original Agreement".) SWANCC and Groot are currently in the process of W renegotiating the Original Agreement to provide for price concessions to SWANCC and other provisions favorable to SWANCC and (ii) negotiating a long-term agreement with respect to the operations of the WTTS. (The renegotiated agreement is referred to as the "Revised Agreement" and the long-term agreement is referred to as the "Long -Term Agreement". Groot and the contractor for the Long -Term Agreement are sometimes collectively referred to herein as the "Contractor".) Key provisions of the Original Agreement, the Revised Agreement and the Long -Term Agreement are summarized below. Although negotiations are substantially complete, the terms of the Revised Agreement and the Long -Term Agreement are still subject to change. I. Comparison of Original Agreement to Revised Agreement A. Term of Revised Agregment. - The stated termination date of the Revised Agreement will be April 30, 1999 extended somewhat from February 27, 1999. 18196043 B. Guaranteed. Ml"nmum Tonnage, - The Guaranteed Minimum Tonnage will be completely eliminated in the Revised Agreement beginning with the current contract year. As a result, SW CC' will never be financially liable for any waste which is not actually delivered and processed. C. Fees - There is a reduction of approximately $1.20 per ton in the fee that SWANCC will pay to the Contractor for 1995-96 and 1996-97 as reflected in the following chart: 0 Ori final ASLreement Revised A reement 96/97 and 96/97 and 95/96 thereafter 95/96 thereafter Operation and Maintenance $10.90 $11.45* $10.80 $13.35*** Hauling 7,.75 8.15**. 7.25 7.65**,** Disposal 210.48 21. 50 19.88 20. 90 Totals $3"9.... 13 .0 Contractor compensation for providing operation and maintenance services will be increased in 1997-98 and thereafter by the greater of the percentage change in the National Consumer Price Index, or 4%. Contractor compensation for providilng hauling services will be increased in 19 97-98 and thereafter by the greater of the percentage change in the Transportation 'Index for the City of Chicago and surrounding areas, as p1rSIM vJi ded by the Department of Labor - Bureau of Labor Statistics, or 411. Contractor compensation for providing operation and maintenance services will be increased in 1997-98 and thereafter by 80t of the percentage change in the Consumer Price Index for Chicago and Northwest Indiana, subject to SWANCC's right to request that the Contractor substantiate cost increases. **** Contractor compensation for providing hauling services will be increased in 1997-98 and thereafter by the percentage change in the Transportation Index for the City of Chicago and surrounding areas, as provided by the Department of Labor - Bureau of Labor Statistics. 18196043 MAYER, BROWN &- PLA.TT D. Commercial. Waste Credit 3. _j; - The Original Agreement allows for the Contractor to earn additional compensation for certain waste delivered to the WTTS. This "commercial waste credit" is being amended as follows: the current 50/50 net profit split between SWANCC and the Contractor will remain for commercial waste delivered by the Contractor; the Contractor's share of the credit will now be limited to a maximum of $2.50 per ton; the Contractor will receive no credit for waste delivered by or at the direction of SWANCC or any of SWANCCIs members. E. Repair and -Maintange - All repair and maintenance will gn a be required to be performed by the Contractor within 120 days of (i) discovery by the Contractor or (ii) written notice from SWANCC, whether or not' such repair or maintenance is essential to the operation of the WTTS. This new provision is intended to give SWANCC additional ability to request the timely repair of items at the WTTS. F. Saler Repair Allo�wa,Lice - For the contract years commencing May 1,, 1997 and May 1,, 1998, SWANCC has agreed to reimburse the Contractor for up to $25,000 in each year for repairs relating to the balers located at the WTTS. The Contractor will be responsible for other routine repair and maintenance. G. Performance Bond - The Performance Bond required to be furnished by the Contractor will be $2,000,000, reduced from the $3,000,000 required under the Original Agreement. H. Fac *1 The restriction in the Original Agreement limiting processing of waste to 1,570 tons per day has been modified in the Revised Agreement to allow the Contractor, if daily operating capacity permits, to process additional waste. This modification is made possible due to a revised permit allowing for the processing of additional waste. I. Util,ity Allowance - Under the Original Agreement.. the Contractor was given an allowance each contract year for the payment of utility costs. Any costs in excess of the allowance were to be paid by the Contractor. Future, costs of utilities at the WTTS are somewhat easier to predict now than when the Original Agreement was executed. Based on the availability of historical data and projections of future operations at the WTTS, SWANCC and the Contractor have agreed to modify the utility allowance provision as follows: For the next contract year, the Utility Allowance will remain at $1.70 per ton of waste processed, but will 18196043 -3- I. -**,Y E R, BROWN & PLA:TT periodically be adjusted upward (or downward) in accordance with electric utility rate increases (or decreases) The Utility Allowance will be adjusted, if necessary, at the end of the contract year ending April 30.. 1996 by agreement of SWANCC and the Contractor. The Contractor will 'independently have an affirmative duty to maintain its utility use at the lowest reasonable level. J.Storacre of Waste - The Original Agreement does not allow for waste I to be stored, at, the WTTS overnight. 'Based on a revised permit, the Revised Agreement 'will allow waste waste to be stored overnight at the WITS if it is stored within the WITS in covered transfer trailers. K. Annual True -up Period - Under the Revised Agreement, a P rovision has been added to allow S, 'CC to request a semi-annual true -up in addition to the annual true -up. SWANCC might wish to exercise this option if staff cash flow projections indicate that a semi-annual true -up would be beneficial to SWANCC. If waste delivery for zany contract, year is at least 1,0%- higher than- the previous contract year,,, the Revised Agreement allows the contractor to request a. semi-annual, true -up. L. Restriction on, Merger - The Contractor has agreed to a new provision in the Revised Agreement which prevents it from I transferring or merging or consolidating with any other entity or t,ransfe n U) the conveying all or substantially all, of its assets u, less Contra,ctor is the sole surviving entity or (ii) it receives the prior written consent of SWANCC, which consent shall not unreasonably be withheld. M. Excess CaRacity-IF,irst Refusal SWANCC has agreed to send any 'waste not processed at the WITS, due to capacity restrictions or otherwise, to a transfer station facility owned or operated by the Contractor. The Contractor will also have a "right of first refusal" with respect to any waste directed for processing by SWANCC or any of its members to any future facility located at the Rolling Meadows Transfer Station site (the 11RMTS11) or the proposed balefill in unincorporated Hanover Township, Cook County (the "Balefill") . This right of first refusal allows the Contractor to process such waste if the Contractor matches any processing charge and transportation savings offered by the RMTS or the Balefill, as applicable. Ii. Comparison of original Agreement to Long -Term Agreement A. ident itv of Contractor - We continue to work with Chapman and Cutler, tax counsel for SWANCC, to determine legal guidelines with respect to the identity and form of the Contractor for the Long -Term Agreement We currently anticipate approaching the Internal Revenue Service for a 'Pr i vate Letter Ruling to allow Groot to be the Contractor under the Long -Term Agreement. If the IRS 18196043 MAYER, BROWN & PLATT denies our request, we still contemplate that the Long -Term Agreement will be assigned by the Contractor, no matter what form the Contractor takes, to Groot prior to its effective date. B. Guaranteed Minimum Tonna, ge - Same as Revised Agreement. C. 'Commencement Date of Long -Term &cLreement - The Long -Term Agreement will commence on May 1, 1999 or such earlier date as is permitted under then existing federal tax laws. D. Fees - Same as Revised Agreement except that SWANCCIs costs with respect to disposal services, will be set pursuant to a long-term arrangement with Waste Management. On May 1,, 2000 disposal fees will be increased (or decreased) according to a formula which effectively averages gate rates at five mutually agreed upon landfills. For subsequent contract years disposal fees will be increased annually by 50. E. Dis]�,osglFeeZIIMgst Favored Nation" Status - Waste Management will 'agree, by separate agreement, to grant SWANCC "Most Favored Nation" status. Pursuant to this agreement, SWANCC shall never pay a fee for waste disposal at a Waste Management owned disposal site greater than any other governmental customer of Waste Management who ( i ) delivers an equal or smaller amount of waste and (ii) (A) uses the same disposal site or a Waste Management disposal site in Cook, DuPage, Kane, Will or Lake Counties (the "Service Area") or (B) is a customer of Waste Management located in the Service Area but whose waste is landfilled at a Waste Management disposal site located outside the Service Area. F. 'Commercial Waste Credit - Same as Revised Agreement. G. Termination - The stated maturity date of the Long -Term Agreement will be April 30, 2014, subject to the following: both SWANCC and the Contractor will have a one-time option to terminate the Long -Term Agreement on April 30, 2004. On April 30, 2004, SWANCC may terminate the operation and maintenance and the hauling components of the Long -Term Agreement, but leave the disposal component intact, if SWANCC pays the Contractor $250,000 at the beginning of each subsequent contract year for so long as disposal services are provided under the Long -Term Agreement. SWANCC will also have the option to terminate disposal services if the proposed balef ill becomes operational or alternative and cost effective waste disposal technology has been developed. 18196043 - 5 - H C,aDI,tal Rgplacement - SWANCC and the Contractor will pay for the repair and replacement of capital items at the WTTS as follows: For each contract year, the Contractor shall pay for the first $15,000 of such repair and replacement of capital items, SWANCC shall pay the next $100,000, and SWANCC and the Contractor shall pay 8001 and 2011, respectively, of all costs of such items in excess of $115,000. I. Perf ormance on - Same as Revised Agreement except that the reduced Performance Bond requirement ($2,000,000) will increase in amount by $250,000 at the end of the second contract year and at the end of each third contract year thereafter. J. Facility Capac - Same as Revised Agreement. K. Reppalrand ...... Maintenance - Same as Revised Agreement. L Ut I'll"t Allowance - The utility allowance under the Long - Term Term Agreement will be the same as the utility allowance under the Revised Agreement, adjusted periodically in accordance with utility rate increases or decreases. M. Storage of Waste - Same as Revised Agreement. N. Back,-Ih,aul,3".n - The Contractor will be required to give prior written notice to SWANCC of any back -hauling situations and SWANCC must approve, in advance, any such situations. SWANCCIs approval may not be unreasonably withheld. 0. Rail Service, - The Contractor shall be required, at its own expense, to provide for any rail transportation carrier service necessary to transport waste. Prior to the provision of such service, the Contractor shall give prior written notice to SWANCC and shall include with such notice, for the prior approval of SWANCC, the rail transportation carriers and routes to be used. SWANCC's approval shall not be unreasonably withheld. P. Environ ental Review - The owner of any alternative disposal site shall, prior to the use of such site for the disposal of waste from the WTTS, agree to pay for an environmental review of the site up to a, amount of $25,000. The environmental review shall be performed by an engineering firm mutually acceptable to SWANCC and the site owner. Q. Restriction on Me,rger - Same as Revised Agreement. R. Excess CaRagitYZFirst ReflIg.. 1, Same as Revised Agreement. 18196043 - 6 - Ill. Miscellaneous Item A. Discontinued Use of Fac l"lit y - A provision has been added to both the Revised Agreement and the Long -Term Agreement which allows SWANCC to terminate each such Agreement in the event that SWANCC decides to close the WITS. Under this provision, waste otherwise to be delivered to the WTTS would be redirected to a waste transfer station designated by the Contractor. With respect to the redirected waste, SWANCC would pay to the Contractor 9001 of the operation and maintenance fee that would have been due under the terminated Agreement and the same hauling fee and disposal fee. D. N. L.E.W. JUL 1 1995 SWANCC 18196043 -7- SUMMARY OF KEY PROVISIONS OF WHEELING TOWNSHIP TRANSFER STATION AGREEMENTS 18202693.3 071895 16310 95172110 Contract Provision Or i2i najjKeen!eqt Revised Agreement Long -Tera eement 1. Termination Date � February 27, 1999 April 30, 1999 A2ri 1 30, 2014 2. Guaranteed Minimum 1995/96 - 750 tons (based on None None Tonnage ("GMT") 286 days/year) (214,500 tons (tons/day) annually) 1996/97 and thereafter - 850 tons (based on 286 days/year) (243,100 tons annually) 3. Fees See Attached Chart See Attached Chart See Attached Chart 4. Commercial Waste 50/50 net profit split 50/50 net profit split Same as Revised Agreement Credit between SWANCC and Contractor for waste delivered by Contractor Maximum profit to Contractor of $2.50/ton No credit to Contractor for waste delivered by SWANCC or any members 5. Repair and No specific provision Contractor required to repair Same as Revised Agreement Maintenance all items within 120 days of discovery or notice from SWANCC 6. Capital Replacement Contractor pays for all SWANCC will reimburse For each year, Contractor repairs Contractor up to $25,000 for shall pay the first baler repairs for each of $15,000 of capital 1997/98 and 1988/99; repairs, SWANCC pays the Contractor pays for all other next $100,000, and SWANCC repairs and Contractor �ay 80% and 20%, respective y, of balance 18202693.3 071895 16310 95172110 Contract Provision original Agreement Revised Agreement Long -Term Agreement 7, Utility Allowance SWANCC pays first $1.70/ton, For 1995/96 SWANCC pays first Utility Allowance based on Contractor pays balance $1.70/ton, Contractor pays mutual agreement of balance: Utility Allowance parties as of May 1. 1996, adjusted, if necessary, by per Revised Agreement mutual agreement on May 1, 1996 8. "Most Favored No provision No provision SWANCC will never pay more Nation" Status for than any other customer of Disposal WMI who (i) delivers an equal or smaller amount of waste and (ii)(A) uses the same disposal site as SWANCC or a WMI disposal site located in Cook , DuPage, Kane, Will or Lake Counties (the "Service Area") or (B) is a customer of WMI located in the Service Area but whose waste is landfilled at a WMI site located outside J,the Service Area 16202693.3 071895 16310 95172110 Contract Provision Original Agreement Revised Agreement Long -Term Agreement 9. Termination SWANCC may terminate at any Same as Original Agreement SWANCC and Contractor time after three years from have one time option commencement date to terminate on Apri 1 30, 2004 On Apri 1 30, 2004, SWANCC may terminate O&M and hauling services, but maintain disposal services, by paying Contractor $250,000 each year following termination SWANCC may terminate disposal services if ba I of i 11 becomes operational or alternative disposal technology becomes available 18202693.3 071895 15310 95172110 Orisinal Agreement 96/97 and 95/96 thereafter Operation and a Maintenance $10.90 $11.45 Hauling 7.75 8.15c Disposal 20.48 21. 50e Totals $39.13 $41.10 SCHEDULE OF FEES Revised ment Long-:1ermAgreement 96/97 and 95/96 thereafter All Years $10.80 $11.35' b 7.25 7.65' 19.88 20.90f $37.93 $39.90 0 - am a Compensation increased annually by the greater of the percentage change in the national Consumer Price Index. or 4%. b Beginning 1997-98, compensation will be increased annually by 80% of the percentage change in the Consumer Price Index for Chicago and Northwest Indiana, subject to SWANCC's right to request that the Contractor substantiate cost increases. C Compensation increased annually by the greater of the percentage change in the Transportation Index for the City of Chicago and surrounding areas, as provided by the Department of Labor - Bureau of Labor Statistics, or 4%. d Beginning 1997-98, compensation will be increased annually by the percentage change in the Transportation Index for the City of Chicago and surrounding areas, as provided by the Department of Labor - Bureau of La I bor Statistics. e Compensation will be $23.22 for 97/98 and $25.08 for 98/99. f Compensation will be $22.62 for 97/98 and $24.48 for 98/99. 9 Fee set pursuant to a long-term arrangement with Waste Management. Fee for 99/00 will be $26.44/ton. On May 1, 2000 fee will be increased (or decreased) according to a formula which effectively averages gate rates at five mutually agreed upon landfills. For subsequent contract years fee will increase annually by 5%. 18202693.3 071895 16310 95172110 If the Executive Committee determines that the Agency should establish a formal commercial waste program for members, then two additional policies need to be set. Under this program, waste included under expanded commercial contracts would be directed to the Wheeling Township Transfer Station or another facility under contract with SWANCC. Thus, a specific percentage split of excess commercial revenues between SWANCC and the community garnering the waste would need to be established. Comments made at both the. June 2nd and July 12th financial briefing sessions indicate that SWANCC members are not in favor of a 50150 split. It has been suggested that an 80/20 or 90/10 split, in favor of the community, would be preferable. This split would be made on revenues realized after depreciation to the transfer station and processing equipment. Additional revenues retained by SWANCC would be applied to all members' _debt service. Members Sheila H. Schultz * Arlington Heights Hoffinan Estates Park Ridge Chairman, 8d. of Directors Barrington Inverness Prospect Heights George Van Dusen Buffalo Grove Kenilworth Rolling Meadows Vice Chairman Elk Grove Village Lincolnwood Skokie Evanston Morton Grove South Barrington William R. Balling Glencoe Mount Prospect Wheeling Chairman. Exec. Committee Glenview Niles Wilmette Palatine Winnetka C. Brooke Beal Executive Director TO: Executive Committee FROM: C. Brooke Beal, Executive Director 100=000006M RE: COMMEERCL&L WASTE PROGRAM DATE: July 19, 1995 So lid At the July 12, 1995 SWANCC Financial Briefing Session, much discussion Waste centered around the Agency's proposed commercial waste program as outlined in the Strategic Financial Plan Options booklet- ' Three specific components of Agency this issue need to be discussed at the upcoming Executive Committee meeting. Noilhe'rn First, the committee needs to determine whether the Agency should establish its Cook own commercial waste program. Regardless of whether the Agency develops a Countyprogram, individual member communities may choose to expand their contracts 'include 1616 East Gulf Road to commercial establishments. As this would not be Project Use Des Plaines; IL 60016 Agreement waste, it would be directed to any available landflU and not the Phone 70812R6-9205 Fax 7OW96-9207 Wheeling Township Transfer Station. Communities colild elect to add a surcharge to new commercial customer fees. This would provide increased revenue for the program of the community's choice, including to offset their SWANCC capital costs. SWANCC's recent survey of members of the Chamber of Commerce showed that, 7 on average, businesses would save 55.49% on'garbage collection costs by having the service included in a community-wide contract. This was determined by comparing collection costs reported by Glenview merchants with equivalent service provided to Northfield merchants under the Village's community-wide collection program. If the Executive Committee determines that the Agency should establish a formal commercial waste program for members, then two additional policies need to be set. Under this program, waste included under expanded commercial contracts would be directed to the Wheeling Township Transfer Station or another facility under contract with SWANCC. Thus, a specific percentage split of excess commercial revenues between SWANCC and the community garnering the waste would need to be established. Comments made at both the. June 2nd and July 12th financial briefing sessions indicate that SWANCC members are not in favor of a 50150 split. It has been suggested that an 80/20 or 90/10 split, in favor of the community, would be preferable. This split would be made on revenues realized after depreciation to the transfer station and processing equipment. Additional revenues retained by SWANCC would be applied to all members' _debt service. page two Commercial Waste Program July 19, 1995 With the establishment of a S'WANCC commercial waste program, it also needs to be determined whether a specific commercial waste upcharge will be uniformly assessed. In the Strategic Knancial Plan Options book, I proposed a'$7.00 per ton surcharge to offset members capital costs. As an alternative, members garnering additional waste could be' allowed to set their own level of surcharge depending on the amount of revenue they wished to capture through the program. This scenario allows SWANCC members increased flexibility, but stands s%g1nificantly Increase program administration for the Agency. These three commercial waste proms concerns will be discussed in depth at the upcoming Executive Committee meeting. Please contact me if you would like any additional information prior to the meeting,.. M1 n t u Members Sheila H. Schultz Arlington Heights Hoffman Estates Park Ridge chairman, 84L of Directors Barrington Inverness Prospect heights George Van Dusen Buffalo Grove Kenilworth Ratting meadows vice Chairman Elk Grove Village Lincolnwood Skokie Evanston Morton Grove South Barrington William R Balling Glencoe Mount Prospect Wheeling Chairman, Exec, committee Glenview miles, Wilmette Palatine Winnetka C. Brooke Beal Executive Director TO: Executive Committee FROM: C. Brooke Beal, Executive Director . •, RE: FINANCE OFFICERS AD HOC REVEEW COQ .�. ANALYSIS DATE: July 19,1995 Solid ° Waste • Attached for your consideration is a memorandum outlining the ad hoc finance director review committee's opinion on the Agency's proposed private activity Agency refinancing, debt restructuring and commercial waste progr<m. The come . met on July 13, 1995 to discuss these issues in depth and to review the Northern Agency's assumptions and analytical methods. Members of the committee Cook included Bill Brimm, village of Buffalo Grove; Judy Doral, V i' age of County Arlington Heights and Spiro Hountalas; village of Morton Grove. The attached 1616 East GRaad memoandum will be discussed at the upco un.g Executive Committee meeting. Des Plaines, IL 60016 Phone 7051296-9205 Fax 7OW 96-9207 MEMO TO: C. Brooke Beal FROM: Finance Officer's Ad Hoc Review Committee Judy Goral, Finance Director, Arlington Heights Bill Brimm, Director of Finance & General Services, Buffalo Grove Spiro Hountalas, Finance Director/Treasurer, Morton Grove RE: Review of Refinancing Assumptions Our committee has met with SWANCC staff and reviewed the assumptions and structure of the proposed refinancing of SWANCC debt including the methodology used in determining the size of the financing. Those assumptions and associated methodology are attached to this memo. We have found the process regarding the structuring of the proposed financing to be progressing satisfactorily. We believe that the finance team along with the Agency's executive and staff personnel have carried out appropriate due diligence procedures. The assumptions regarding the financing, such as the expected interest ram on the bonds, tender premium, and debt service requirements,, appear to be reasonably estimated. These parameters could of course be different at the date on which the refinancing actually occurs. To deal with this possibility the parameters have been estimated on a high side to allow room for an upward movement as to interest rates, etc. While actual market conditions may exceed the assumed parameters, the parameters chosen are acceptable and reasonable. Time is of the essence and rates appear to be moderating downward. Combined with the need to negotiate this transaction and to prepare all supporting documentation for ratings presentations, etc. and to accomodate the tender of current outstanding bonds, it is recommended that authorization be granted to staff to proceed ahead with this refinancing at the the earliest practical date given the recommendations of the financial advisor and underwriter retained. The committee has also reviewed the options to refinance a portion of the interest expense coming due in the next two fiscal years. The projected interest rate (7.1 %) and related issuance costs (7.5 %) on the refinancing were higher than the actual current interest rate for the next two years. The committee felt that the assumptions were both reasonable and conservative, and also felt that to issue such additional capitalized interest on top of the seven years of existing capitalized interest would not be prudent. The committee was also asked to review the proposed commercial waste hauling program. The financial feasibility * or revenue enhancement possibilities of the program are entirely dependent upon the current prices facing commercial users and prices that may be obtained upon a bidding of the contract. Whether or not the market price data utilized by staff is correct or not is outside of the expertise of our group as we are not expert in solid waste market data. The decision as to whether the Agency or any of its Member's should utilize all or a part of the program is primarily a policy decision by the Board and the Members. REFINANCING WTTS BONDS INTO AIM BONDS ASSUMPTIONS In order to eliminate certain IRS restrictions on the use of WMS the Agency must remove from the market that portion of our outstanding bond issues that was used to finance the development of W MS. Those bonds will be purchased on the open market via a tender offer. Consequently, a tender premium has been included as part of the costs of the proposed new, private activity (subject to AMT) bond issue. The assumptions are summarized" on the attached table. The following describes the assumptions in more detail. 1. Total Amount of Bonds to be Redeemed—$24,000,000 The total amount of bonds that will have to be redeemed via the tender offer is estimated at 4,, ,OW. This, number ilsbased, upon, a thorough review of actual expenditures (both, direct and indirect on WTTS) by staff 'with, the assistance of the underwriter, and preliminary review by bond counsel. KPMG has been retained to conduct an audit of those expenses. 2. Debt Service Reserve—New 'Requirements and Release of Present Funds The total debt service requirement is estimated at 9 % of the bond issue, or approximately one year's maximum annual debt service. The proportion of debt service reserve attributable to the tendered bonds will be released (Released Bond DS Reserve) and new additional debt service reserve funds equal to 9 % of the gross size of the new issue will be needed. 1, interest Rate on Bonds The interest rate on the bonds was equal to a 20 year rate for *insured bonds, plus 25 basis points for Alternative Mi " um Tax (AMT) premium, plus 50 basis points premium (to cover the fact that this is a solid waste issue and buffer). 4. Issuance Costs Preliminary estimates were obtained from all parites involved. Bond insurance will be sought. 5. Net New Issuance Proceeds This amount equals the gross bond size less the released bond debt service reserve fund and released capitalized interest and costs. 6. Cap Interest Amount The existing bonds have all interest capitalized through 12/31/95. As this series is anticipated to be issued 12/1/95, we release a portion of the capitalized interest but then have to fund one month's worth of capitalized interest. The net amount of cap interest is higher, as the outstanding debt has increased from $24,000,000 for W7 S to $26,118,370. 7. Tender Percentage This amount (5 %) is an estimated premium that may be necessary to acquire the bonds through the public offer to purchase. Sources Released Debt Service Reserves 2,277,520 Released Cap Interest tone month) 74oO78 Gross Band Proceeds 8 370 Total sources Uses Tender Premium 1 200 000 Face value of Bonds Redeemed 24,000,000 Capitalized interest (ane month) 141,658 Debt Service Reserve 2,3501553 Costs of Issuance Underwriters' discount 0.4%) 365,657 Bond Insurance 175jOW Rating fees 751000 Financial Advisor 45►000 Acctg, printing, other 17,000 Trustee fees 5,00{ Legal Fees- 95.E Tota! USeS-528,469,968 C:iDATAF I L M PR EADS MSO U R cUSE.W BZ t 1,33"MOS 96122LSS IV MEMO TO: FELE FROM: AGENCY STAFF, SWANCC DATE: MAY 22, 1995 RE: METHODOLOGY FOR DETERMEUNG TF AMOUNT OF BOND PROCEEDS USED TO PLACE WHEELING TOWNSHIP TRANSF R STATION IN SERVICE The methodology used to allocate bond proceeds between the Wheeling Township Transfer Station (WTTS) and non-WT17s costs is as follows: 1. Each account from which direct bond proceeds were spent on FI'T'S were examined. These funds were the Acquisition and Construction Fund and the Operations and Maintenance Startup Fund. r 2. Expenditures were initially allocated to WITS, Financing Agency Administration* and Non- W`r utilizing previous allocation efforts. FY89 (the first bond 'Issue) through the end of FY93 utilized a detailed spreadsheet * which imeluded requisition number, date, payee, and allocation codes by proiect, and type, of service. Only expenditures made by thetee were included.Transfers to the Agency's checking account, which funds were used primarily for Agency operational needs such as salaries, were treated for purposes of this analysis as being entirely spent on WTTS. This would increase the size of the bonds needed, but was deemed cost effectivevgii en the number of small *individual checks that would have had to have been examined. Expenditures for FY94 were from a second spreadsheet prepared in conjunction with the Agency's first operational financial statements. The spreadsheet detailed payee, project, and month. All Agency expenditures and revenues were recorded. Expenditures for FY95 were taken from the Agency's accounting system. 3. These expenditures were compared to the disbursements contained within the Trust Statements. Where there was a discrepancy the Agency examined the original payment requests (which contained information as to the project associated with the payment) and associated invoices. 4. Financing expenses were allocated on the same percentage as construction proceeds (e.g. if 30% of construction proceeds were used for Wheeling, then 30% of Financing Expenses were allocated to Wheeling). 5. Agency Administiation was allocated 20% to WTTS based upon estimates of the proportion of effort spent on WTIS versus other Agency projects. Although in the Agency's opinion i io, the 20 % 'allocation is reasonable,, it chooses to err on the high side and consequently allocates 30%of Agency Admi'mistration. to Will (thereby tendering for a larger amount. 6. For pre -1992 Bond Issues, the ratio of construction expenditures between 'VMS and Non WITS is Total WTTS Expenditures/Total Deposited to Construction Fund i s Sime no interest earn,ings were allocated to NEMS. this would overstate the Bond Proceed. used for WTTS Construction. and hence result imanover allocation of pre -19,92 Bonds to VMS. 7. For the 1992 Bond Issue,, the ratio of construction expenditures between WTrS and Non - W01 is: PV of VMS/Total Deposited to Construction Fund 8. PV of W'r Expenditures is the Assigned Disbursements for W'Iw S present valued back to the closing date on the 1992 Bonds at the PV Yield of the Construction Fund. 9. The PV Yield, of the C,onstruction Fund is 'the yield such that the present value of all disbursements fromthe 1,992,Construction Fund, equals the deposit at closing tothe Construction Fund. 10. [Note- approximately $250,000in, coastruction costs are outstanding. lbe, Agencycan S en es ti reimburse itself from the AMT ftmcing. The previ"OU'Sly passed reimbur em t, r elution is expected to cover it.] 11. on the Construction fund include not only direct , gs, but other earnings trmsferred �to,the Construction Fund. The source of otherear nmigs would be m proportion to the 1992 Bonds, which has a higher Non -VMS component (due to the refunding), than direct construction fund interest earnings. Treating the other earm the same as Construction Fund earnings would overstate the Construction Proceeds used, for WT' hence resulting M' an over -allocation of 1992 Bonds to WTTS. 12. Any remaining balances in the bond proceeeds accounts are allocated to non-WTTS activity. !M11q nk 06 -Jul -95 Note: Bond proceeds are assumed to be invested in slugs to meet payments which are m ' the future. With interest earnings,, net proceeds needed upfront are less than the actual amount needed on the payment date. 0 C:\IDATAFELE\SPREADSH\595BNDAS.WB2 OPTION 4A OPTION 4B Oly'nON 4C Interest rate 7.10% 7.10% 7.10% Gross Bond Size $1,9559963 $3,745,896 $49457,564 Expenses $1369463 $261,342 $3109993 Issue Date 12/31/95 12/31/95 12/31/95 No. int pmts refunded 1 2 2 Int pmt amt refunded $198699793 $3,739,586 3,739,586 Prins amt refunded $670,000 Total payment amt refunded $11,8691,793 $3,739,586 $4t409t586 Note: Bond proceeds are assumed to be invested in slugs to meet payments which are m ' the future. With interest earnings,, net proceeds needed upfront are less than the actual amount needed on the payment date. 0 C:\IDATAFELE\SPREADSH\595BNDAS.WB2 Members Sheila H. Schultz Chairman. Bd. of Directors Arlington Heights Hoffman Estates Park Ridge George Van Dusen Barrington Inverness Prospect Heights Buffdlo Grove Kenilworth Rolling Meadows Vice Chairman Elk Grove Village Lincolnwood Skokie William It Balling Evanston Morton Grove South Barrington Glencoe Mount Prospect Wheeling Chairman, Exec. Committee Glenview Niles 'Wilmette C. Brooke Beal Palatine Winnetka Executive Director SOLID WASTE AGENCY OF NORTHERN COOK COUNTY EXECUTIVE COMMITTEE MINUTES Wednesday, June 28, 1995 8:00 a.m. Solid Wheeling Township Transfer Station Waste 3 Providence Drive Agency Glenview, Illinois NoWtern 1, Call To Order Cook Executive Committee Chairman William Balling called the meeting to County order at 8:08 a.m. at the Wheeling Township Transfer Station Conference 1616 East Gotf Road Des Plaines, IL 60016 Room. Mr. Balling welcomed Doug Williams, Manager from Winnetka, Phone 70W96-9205 to the Executive Committee. A roll call attendance was taken. Fax 7081296-9207 Present Name Position igWalitv William Balling Manager Buffalo Grove Tim Corcoran Trustee Mount Prospect Gerald Hagman Manager Park Ridge Rita Mullins President Palatine Albert Rigoni Manager Skokie Sheila Schultz President Wheeling Doug Williams Manager Winnetka C. Brooke Beal, Executive Director Julian DTsposito, Counsel David Jepson, Finance Director, Village of Mount Prospect David Narefsky, Counsel Gregg Pavitt, Finance Director Sharon Pepin, Executive Secretary Ann Tennes, Assistant Executive Director George Van Dusen, Trustee, Village of Skokie, Director Page 2 I 11, Approval of Minutes On a motion by Mr. Corcoran and a second by Ms. Schultz, the Minutes of the May 10, 1995 Special Executive Committee Meeting were unanimously approved. Executive Committee Chairman' Balling reminded the Committee that because a quorum was not established, the,, May 24, 1995 Executive Committee meetinp, was for discussion purposes only. 111. Financial Update Executive Committee Chairman Balling reviewed the payout request for the month of June, 1995, which totalled $714,259.99: $35,074.66 from the General Fund and $679,185.33 from the Operations Fund. On a motion from Ms. Schultz and a second from. Mr. Corcoran, the June payout request was unanimously approved. Mr. Williams asked what the Executive Committee's procedure was for reviewing bills. Mr. Balling stated that the Executive Director reviews the bills in detail and that he does random checking of bills as well., He said that copies of all back-up documentation is available at the Agency's offices and that documentation will be brought to future meetings for further review. Mr. Corcoran questioned the line item for Patrick Engineering and what the payment covered. Executive Director Beal stated that the payment represented modifications for signage, lighting, sealing and caulking at the Wheeling Township Transfer Station. It also represented worked performed in conjunction with the 404 Permit denial. I Executive Director Beal then recapped for the Executive Committee the Financial Briefing Session that was held on June 2, 1995. He said that good dialogue was received from that meeting, and that the main areas of concern were, the commercial waste option for members and the debt restructuring. There was discussion by the Committee on the commercial waste option. Mr. Beal said that the Agency recently conducted a survey on commercial waste with the businesses involved in the Park Ridge Commercial Recycling Program. He also stated that the Agency is conducting a commercial waste survey of Village of Glenview merchants, and that the Village of Elk Grove Village will be surveying businesses in their industrial park area. Mr. Beal said he hopes to have a relatively large data base on commercial waste costs within the next thirty days. The Committee discussed commercial waste and franchising costs. Many Committee members agreed that all issues should be settled before the bond issue is voted on by the Board of Directors. Mr. Beal said that October is the latest June 28., 1995 Executive Committee Minutes Page 3 111. Financial Update (continued) time a decision can be made regarding the bond issue. He said that the commercial analyses should be completed by the July Executive Committee meeting. Mr. Rigoni stated that payments to the bond trustee starts in May, 1996 and added that some Agency members want to pay the fees up front, while others need revenues to come from other sources. He stated that a policy decision needs to be made regarding a revenue split between the community and the Agency so that members wishing to embark on the commercial waste program have an idea of the funds they will receive. Mr. Corcoran stated that he is hearing a lot of good comments about the way things are being handled, and that a sub -committee of finance directors should be developed to make sure all the numbers are correct and that all scenarios are reviewed. Mr. Balling said that at the June 2nd meeting, the suggestion was made to develop such a sub -committee. Mr. Corcoran said there were three issues the sub -committee needs to grasp: 1) the operating contract with Groot; 2) the refinancing; and 3) the commercial waste program. There was discussion by the Committee, and Mr. Balling said that if a sub -committee is developed, that the members will be appointed by Mr. Beal and act as a&isors that will tie into the management team. Ms. Schultz said she thought the June 2nd meeting was good, as was the June Board of Directors meeting where the Board seemed to accept the plan. Ms. Mullins concurred with Mr. Corcoran's concerns for a sub -committee, adding that she; too, thought the meeting in June was good. She said that the backing of financial directors would give the Board a more comfort level. Mr. Rigoni agreed with Mr. Corcoran's idea of a sub -committee, but also liked Mr. Balling's suggestion of the sub -committee being a part of the management team. He said that the sub -committee should focus on the bond issue and the refinancing and not on the Groot operating contract. , Mr. D'Esposito asked if the Committee really wanted more people involved in the refinancing issue, stating that the commercial waste model would be a more difficult decision for members to make. Trustee Vag Dusen agreed with Mr. D'Esposito in that a lot of finance directors have already gone through the refinancing phase. He said he would rather see their time spent on the commercial waste program. Mr. Balling -said that the Agency ha's to charge the Directors and Alternate Directors with decisions that have been made. He said he is very sensitive to how much direction the Agency can take. He also said that Mr. Beal spends time with other advisors and presents that information to the Executive Committee and then to the Board. After further discussion, Mr. Balling said that Mr. Beal will have the latitude to select three or four finance directors to review the refinancing and 3une 28, 1995 Executive Page 4 Financial Update (continued) I the bond issue. Mr. Beal said he "is very comfortable with the refinancing numbers. He said that there are only a few assumptions involved and that the sub -committee should only need to meet once or twice. Mr. Beal said that at the July 12th Briefing meeting he will make a short presentation on the commercial waste program and the refinancing. He said it will be more of an open discussion meeting, with time for questions and answers. Mr. Balling said he hopes to bring back information to the Executive Committee NNINOWW1 Meeting in July regarding a consensus received at the July 12th Briefing meeting. IV. Executive Session - none V. Wheeling Township Transfer Station Executive Director Beal stated that the facility continues to operate smoothly and noted that it has been* processing a lot of landscape waste, which is sent to Scotts facility in Kendall County. He said that the facility has been struck by lightning twice in the past month. Mr. Beal said that both scales and the air conditioner in the scale room were hit and that preventive measures have been taken. Mr. Williams stated* that the Village of Winnetka has a specialist in the area of lightnwi,g, protection and has offered his services to the Agency. Mr. Beal said that he will call Mr. Williams for more information. Mr. Beal then rieviewed the long-term Groot operating contract memo included in the packets, noting that this issue was initially discussed at the February Board of Directors meeting whete members expressed their desire for guaranteed tipping fees for the life„ of the bonds. He reviewed the highlights of the renegotiated operating agreement and the long-term agreement. He stated also that the long- term contract addresses the concerns of the rating agencies for the bonds. Mr. Beal then introduced Mr. David Narefsky, Agency Counsel, who has worked very closely with"the Agency on the agreement. Mr. Nw,efsky reviewed the contract, and stated that when the refinancing occurs and the Agency changes from a public to a private activity, a lot of options will become available for the Agency and its members. Mr. Williams expressed concern over the 2014 contract ending date, noting that the Agency will be locked into the contract for 20 years with no competition involved. Mr. Balling reminded Mr. Williams and the Committee that the Agency went through an RFP recently, and that the closest competition to Groot Recycling was Waste Management, Inc. Mr. Beal added that there are many options available to cancel the contract, with the year 2009 being the first "out date". At that time, the Agency can -cancel the contract strictly for convenience. June 28, 1995 Executive Committee Minutes Page 5 V. Wheeling Township Transfer Station (continued) The Committee discussed the contract in detail. Mr. Corcoran said that Groot should provide the Agency with open books if it enters into a long-term contract with them. He also said that the total waste that the membership generates should be guaranteed instead of a minimum guaranteed tonnage amount. Mr. Beal said that commercial waste brought in counts towards guaranteed minimum, tonnage and offsets recycling numbers. He said that commercial waste in the contract represents waste that Groot brings in, and that fees for any other commercial waste is between the Agency and its members only. It was also decided that the escalation clause definition needs to be refined. Mr. Narefsky reviewed each of the sections with the Committee commenting on them. It was suggested that a clause in the agreement read 'that if the balefill is not opened, the Agency can still cancel the contract if SWANCC takes ownership of a landfill'. The Committee discussed the most favored nations clause statement, and agreed that it be reviewed fin-ther. Mr. Balling summarized all the comments that need to be reviewed with Groot: cancellation provisions; rate escalator; most favored nations clause; buyout fees; open books; and. separate contracts for transportation, operation & maintenance, and disposal. Mr. Balling said that negotiations would continue with Groot and, if need be, the Executive Committee will set up a meeting with Groot to finalize any outstanding issues. IN& Beal reviewed the 94/95 school waste reduction grants memo that was included in the Committee's packet. He stated that this was the third year the Agency offered the program to elementary schools in the SWANCC region. He also said that schools utilize the grant program extensively to enhance the knowledge of recycling and waste reduction. Mr. Beal added that the Agency hosts a three-day teachers workshop to educate teachers on various recycling and waste reduction lesson plans that can be completed by their classes. during the school year. Mr. Balling thanked Assistant Executive Director Tennes for all her hard work in educating communities and schools about recycling and waste reduction. He said that the tours of the transfer station and the garbage art posters are extremely educational. The other Committee members agreed with Mr. Balling and many said that the publicity received from the schools for the grant program► is good for the Agency. W, mee Minutes ''age 6 VII. New Business Mr. Beal brought the Committee'9 attention to the prevailing wage act memo and resolution that was included in their packets. He said that the Agency's wages are in accordance with the guidelines of the Department of Labor of the State of Illinois. Upon a motion,by Mr. Rigoni and a second by Mr. Corcoran, Resolution No. ER -1995-01 was unanimously approved. VIII. Adjournment There being no further business to come before the Committee, the meeting adjourned at 10:50 a.m. 1i Members Sheila H. Schultz Arlington Heights Hoffinan Estates Park Ridge Chairmen, Bd. of Directors Barrington Inverness Prospect Heights George Van Dusen Buffalo Grove .Kenilworth Rolling Meadows Vice chairman Elk Grove Village Lincolnwood Skokie Evanston Morton Grove South Barrington William R. Balling Glencoe Mount Prospect Wheeling Chairman, Exec. Committee Glenview Niles Wilmette Palatine Winnetka C. Brooke Beal Executive Director TO#" Executive Committee FROM: C. Brooke Beal, Executive Director � 00 RE: APRIL 25, 1995 EXECUTIVE COMMHTEE MEETING AIMUTES m. DATE: July 19, 1995 Solid Brite Attached for your review are minutes of the April 25, 1995 Executive Committee meeting. Due to lack of a quorum, these minutes were not approved Agency at the May, 1995 meeting but will be placed on the agenda for approval at-the July 26, 1995 meeting. Please call me if you have any questions. NoWiern Cook County 1616 East Golf Road Lies Plaines, IL 60016 Phone 7081'296-9205 Fax 708/296-9207 Members Sheila H. Schultz Arlington Heights Hoffman Estates Park Ridge Chairman, Bd of Directors Barrington Inverness Prospect Heights George Van Dusen Buffalo Grove Kenilworth Rolling Meadows Vice Chairman Elk Grove Village Lincolnwood Skokie Evanston Morton Grove South Barrington William R. Balling Glencoe Mount Prospect Wheeling Chairman, Exec, Committee Glenview Niles Wilmette Palatine Winnetka C. Brooke Beal TO: Executive Committee Executive Director FROM: C. Brooke Beal, Executive Director SUBJECT: July Payment Request DATE: July 19, 1995 The following invoices totalling $698,904.93; $47,407.01 from the General Solid Fund and $651,497.92 from the Operations Fund are presented for your Waste information and approval. Agency O.f 1 Firm Desc�ption. Amount Northern Cook General Fund Mayer, Brown & Platt General Counsel $ 82032.26 County 1616 East Golf Road Des Plaines, IL 60016 Northwest Municipal Corif Insurance Benefits 1:920.12 Phone 7OW96-9205 Fax 7081296-9207 O'Connor & Hannan 404 Permit Denial./Legislative 302,103.78 Patrick Engineering TEPA Significant Modifications/ WTTS Well Samples 411350.85 Steve Brown Community Relations - May & June 11600,0.001 Subtotal 47,407.01 Operations Fund Commonwealth Edison WTTS June Bill - Estimate 16X0.00 Groot Recycling & Waste Services Operating Fee - June 6282178.32 Northern Illinois Gas WTTS June Bill 0.00 Village of Glenview Host Community Fees 7 319.60 Subtotal 6515497.92 TOTAL S69&904.93, Members Sheila H. Schultz Chairman, Bd. of Directors Arlington Heights Hoffman Estates Park Ridge Barrington Inverness Prospect Heights George Van Dusen Buffalo Grove Kenilworth Rolling Meadows Vice Chairman Elk Grove Village Lincolnwood Skokie Evanston Morton Grove South Barrington William R. Balling Glencoe Mount Prospect Wheeling Chairman, Exec. Committee Glenview Niles Wilmette Palatine Winnetka C. Brooke Beal Executive Director SOLID WASTE AGENCY OF NORTHERN COOK. COUNTY EXECUTIVE COMMITTEE -� AGENDA Wednesday, July 26, 1995 Solid 8:00 a.m. Waste Agency Wheeling Township Transfer Station � 3 Providence Drive ,f Northern Glenview Illinois Cook Coun ty Cali to Order 1616 East Golf Road Des Plaines, IL 60016 Phone 7081296-9205 . Approval of Minutes Fax 7081296-9207 . April 25, 1995 Minutes and Executive Session Minutes . June 28, 1995 Minutes . T1. Financial Update Draft of FY95 Audited Financial,, Statements . . /000, Finance Officers Committee, Analysis Executive Session . Litigation V. Wheeling Township Transfer Station . Operations Update . Operations Contract VI. Old Business . Commercial Waste Program VII. New Business VIII. Adjournment Members Sheila It. Schult; Chairman. Rd. of Directors Arlington Heights Hoffman Estates Park Ridge Barrington Inverness Prospect Heights George Van Dusen Buffalo Grove Kenilworth Rolling Meadows vice Chairman Elk Grave pillage Lincolnwood Skokie Evanston Morton Grove South Barrington William R. Balling Glencoe Mount Prospect Wheeling Chairman. Exec. Committee Glenview Niles Wilmette Palatine Winnetka C. Brooke Beal Executive Director SOLID WASTE AGENCY OF NORTHERN COOK COUNTY EXECUTIVE COMMITTEE SPECIAL ET MINUTES Tuesday, ,April 25, 1995 'olid V CZt+ Mate Wheeling Township 'Transfer S.tatlon _ 3 Providence Drtve .A,gency�� . � . - Glenview, Iffinvirs - r Northern L Call To Order Cook CoonThe meeting was called to order at 3:05 p.m. by Board Chairman Sheila lfownship 1616 East GoRoad Schultz 'in, the Conference Room at the Wh.ee.ung T , Transfer Des Penes, IL 60016 _Station. Ms. Schultz chaired the meeting at the request.. of Executive Phone 7O96-9205 Fax 7OW9'6-9207 Committee Chairman William Balling who was resent at � the meeting � � .. but. was not feeling well. A roll call attendance was. taken. Present , Name Position =i�ci� t ... William Balling, Manager Buffalo Grove Tim Corcoran Trustee Mount Prospect Gerald Hagman, Manager. � �� . Park, Ridge g. Al Rigoni Manager Skokie Sheila Schultz President wheeling C. Brooke Beal, Executive Director William Bricom, Finance Director, village of Buffalo Grove Julian D'Esposito, Counsel Kevin McCanna, Speer Financial Gregg Pavitt, Finance Director 'Ann. Tennes, Assistant Executive Director George van Dusen; Trustee, village of Skokie, Director ,Doug Williams, Manager, Village of Winnetka Absent Peter Cummins Manager Glencoe Rita Mullins President Palatine April 2 5,5 199 5 Executive COMTI�Vat MInItS Page 2 Approval of Minutes On a motion by Mr. Rigoni and a second by Mr. Corcoran, the Minutes and the Executive Session Minutes of the March 23,, 1995 Executive Committee Meeting were unanimously approved. III, Financial Update Executive Director Beal outlined the financial payment request for April, 1995., He drew the Committee's attention to the supplemental payout notice forWil- Fred's Construction, noting that it was for the contract close-out payment of $260,000.00. He explained that this amount was added to the April payment request, bringing the total to $850,469.28; with $95,252.02 from the General Fund,, $488,650.10 from, the Operations Fund and $266,567.16 from the Construction Fund. Mr. Corcoran asked that if there would 'be any excess dollars once the Construction fund was closed out. Mr. Beal said that yes, there would be a small amount of excess funds that would be transferred to the Project Account. Mr. Rigoni motioned to approve the financial and supplemental payout notice, and the motion was seconded by Mr. Corcoran. Mr. Corcoran questioned a payment for a door repair at the transfer station'. and Mr. Beal explained that the door had been in a state of disrepair for a number of weeks and was impacting operations at the transfer station. He said that SWANCC went ahead and paid for the repair and that the amount will be deducted from the balance due to Wil -Freels Construction. Mr. Hagman questioned the Renewal & Replacement Study for Patrick En *neering. Mr. Beal said that this study was funded equally by Groot Recycling 91 & Waste Services and SWANCC. He noted that SWANCC made a payout of $31,341.42 and would receive 50% reimbursement by Groot. Fr. Beal explained that the study was a component of Groof s long-term solid waste management contract negotiations.; A roll call vote was taken and the payment request was unanimously approved.. Beal stated that there 'would be a presentation on the preparation of the Agency's annual audit. He noted that this was not an agenda item but that a number of Agency members have inquired about the status of the audit and that he believed it was time for the Committee to consider who would be conducting this fiscal year's audit. Mr. Beal said that in 1994, the audit had cost the Agency $11,000 and that the 1995 estimated cost as quoted by KPMG Peat Marwick was $112500. He also noted that this would be the sixth year that KPMG Peat Marwick was conducting the Agency's audit. Mr. Corcoran asked if Mr. Peal's intent was for the Agency to entertain proposals from prospective auditors next year. Mr. Beal said that this could be undertaken if desired by the Executive April 25, 1995 Executive Committee Minutes Page 3 Financial Update (continued) Committee and the Board of Directors. Mr. Rigoni made a motion that the Committee accept Mr. Beal's recommendation to engage KPMG Peat Marwick to conduct the fiscal year 1995 audit for the Agency at a fee of $11,500.00. He further remarked that he, too, was interested in seeking proposals for the 1996 audit. Mr. Balling commented that the Board had no formal policy set in terms of rotating auditors. Mr. Beal asked if this was being done for the sake of rotation to gain new perspective, or if the Committee was concerned about costs. Mr. Rigoni commented that it seemed to be a common practice among or: �11 municipalities to rotate auditors every five years.. Ms. Schultz stated that she wondered if it was necessary for the Executive Committee to recommend a formal policy. Mr. Hagman said that he was concerned with the auditor having too comfortable of a relationship with the Agency. Mr. Rigoni stated that he believed a formal policy was not needed, but that he was also concerned with the general philosophy of being too comfortable with one auditor as had been expressed by Mr. Hagman.,' Mr. Corcoran said that he thought that a new perspective would be needed due to the large dollar amount involved. After the discussion, Mr. Balling seconded Mr. Rigoni's motion, which was unanimously approved. Discussion then turned to the Agency's long-range financial planning. Mr. Beal reviewed the draft memo saying that it was a revisiting of the previous draft memo with some further detail on several options as had been requested by the Committee. - IN4r. Hagman questioned what the Agency's obligation in fiscal year -1997 was and Mr. Beal stated that it was $4.366 million. Mr. Beal outlined the Agency's options for helping the members meet their obligations. Mr. Beal outlined Option 1, which was to reduce fixed expenses for operations of the Wheeling Township Transfer Station and for long-term disposal. Mr. Beal stated that staff estimates have been very conservative, both in estimating the cost of the issuing debt and the amount of debt that should be issued. Mr. Hagman asked when the Groot renegotiated plan would be presented and was told by Mr. Beal that it would be presented in either May or June. Mr. Hagman asked Mr. McCanna from Speer Financial if the time was good in terms of the market and Mr. McCanna said yes. Mr. Beal commented that with Board approval, the Agency and its financial advisors would watch the market and issue debt when rates are low. He said there is a window of time in which to do this, as the debt would not have to be issued until the end of the calendar year. Mr. Hagman asked if this issue needs to go back to the members' individual boards. Mr. Beal said that the Master Bond Resolution stated that a majority of the SWANCC Board members may approve such a move and it would not have to go before April 25, 1995 Executive Committee Minutes Page 4 III. Financial Update (continued) 11 each community's respective Board of Trustees or City Council. Mr. Hagman also questioned about wbat the, market would say in tenns of pos ' sible stability of SWANCC. Mr. McCanna commented that with, and m*surance, *ihis is not a n factor ithe market. Mr. Hagman asked if the insurance premium for the issue would be high, and Mr. McCanna noted that it would probably be the same as it 4 was in 1992. He also said that there is currently greater increased 'market competition that will benefit the Agency. AMMOMMOM, Mr. Beal then commented on Option 2, which increases the use of the transfer station by private waste haulers. He reminded the Committee of the need to refinance to be able to take in outside waste, stating that the Agency is actively talking to people regarding delivery of waste and will begin to formalize its market presentation. Mr. Beal said that currently. between 25 and 60 tons per day of commercial *waste is brought to the transfer station from Groot Recycling, Hillside Disposal, Laidlaw Waste Systems and Northshore Waste Control. He commented that there were not many small independent haulers left who could benefit by use of the transfer station. Mr. Hagman asked how much higher area landfill rates would need to go to have the transfer station rates be attractive to other- haulers.1&. Beal said that the rates would need to be increased by approximately 1 20% over current market values. He also said that with the market conditions that are expected to occur in the next few years when the DuPage County Ian ' dfill s close, it is highly likely that many haulers will be anxious to bring their waste to the transfer station. He said that area landfill expansions have been progressing very slowly and a number of landfills that are trying to expand have encountered numerous problems that have slowed up their process. He estimated that., these circumstances will make the transfer station even more attractive. h& Beal then gave an ova -view of Option 3, which is to liquidate underutilized Agency assets. He said that over summer 1995, the Agency will conduct a detailed analysis of its assets and present possible options, to the Board of Directors. Mr. Beal then focused his comments on Option 4, which is to reschedule portions of the early debt service payments. He said that this option had actually been recommended by Mr. Rigoni at a previous meeting. Mr. Rigoni said that in his mind he believed there were three reasons to roll the debt: 1) to ai phase-in a repayment schedule; 2) to provide a window of time for the Balefill to open, and 3) to allow time for the communities to research and enact the concept of expanding their municipal collection systems to garner more waste for the transfer station. Mr. Williams commented that it seemed the Agency would be looking at $60.00 per ton in 1997 and -1998 if the proposed rebate program could April 25, 1995 Executive Committee Minutes Page 5 Financial Update (continued) not be effective. Mr. Rigoni said that the Agency should 'Offer a financing plan for its members and asked Mr. Beal what the per ton value of the Balefill would be to members. Mr. Beal said that the value of the assets would be a reduction of approximately $5 to $9 per ton. As an estimate, he said that this was highly dependent on the terms of the permit that the Agency would be given and, particularly the amount of mitigation that was required. Mr. Corcoran said that he believed the Agency should refinance and, in essence ignore the Balefill which qWWMWMNW* is a project the Agency cannot control. He said that he was not sure that phasing in the debt service payments was the way to go, as it would be putting off the day of reckoning for members in terms of paying the Agency's debt. Mr. Corcoran said that he believed the communities would be more motivated to enact different options in terms of expanding their service and garnering more waste for the system if they were motivated by, dollars. Mr. Rigoni stated that while this may be true., some communities could have trouble meeting the debt obligation. Mr. Hagman said that he believes it is important to develop a process for members to use in meeting their obligations. Mr. Briimm, Village of Buffalo Grove Finance Director, entered the meeting-. W. Beal commented that be believed the Agency, in addition to meeting with Board members, should meet with 'managers and finance directors who are not on the Agency's Board of Directors. Mr. Balling said that he thought it was" important that the Board know of the situation, and after the Board has been briefed, the Agency would -begin informational meetings with mayors and managers. Mr. Rigoni said that the decision is whether it is worth spending approximately $1.4 million over the course of 20 years to defer the debt service mm payments and to phase them in over 36 months. Ms. Schultz asked Mr. Beal when the Board must decide on restructuring the debt. Mr. Beal said that the debt restructuring would need to take place before the end of the calendar year due to the $1.3 million subsidy from the General Fund. Mr. Rigoni reminded the Committee that if there is no debt restructuring, 18% needs to be added to the debt service costs that would be incurred in the coming year. Mr. Beal reminded the Committee that the 18% is a one year step-up penalty. Mr. Hagman requested that finiher financial data have two columns for members to consider - one that would not assume a debt restructuring with the additional 18% added in, and another column reflecting the debt restructuring with the additional 18% removed. There was discussion on the timing of presenting the information to the Board of Directors and meeting with the finance directors. Several Committee members expressed desire for a very simple presentation. Mr. Brimm stated that he thought the members would be well -served by a very simple proforma providing numeric tables showing the Agency's debt structure over the next several years. April 25, 1995 Executive Committee Minutes Page 6 III. Financial Update (continued) Mr. Balling further commented that he thought it was important to bring the numbers down to a 'per -household' level. Mr. Corcoran said that he was in favor of developing a decision -tree memo, which is a simple two-page memo outlining the issues for the members. Discussion then turned to the members options to mitigate or to meet their financial obligations. Option 1, which is to increase rates and charges, and Option 2, to subsidize service with other revenues were quickly reviewed by Mr. Beal with very little discussion by the Committee. Option 3, pertaining to expansion of waste collection services was reviewed in detail. After explaining the program to the Executive Committee, Mr. Beal stated that he would like feedback from communities such as the Village of Mount Prospect, that had already committed more waste than just from their single-family homes. He then outlined the benefits to the members of increasing their waste collection services and noted that he had talked with a majority of haulers who told him that in light of an entire community franchise, the costs incurred by single-family homes would be decreased by approximately 20%. Mr. Beal said that with commercial entities, probably half of their costs would increase, 20% would remain the same and about 30% would potentially decrease. He said that adding "recycling to the program would be key in terms of having it prove effective. Mr. Williams asked if the transfer station had the capacity and Mr. Beal calculated that the annual capacity at the transfer station was 400,900 - 450,000 tons and if there were any capacity problems or concerns, any overage could be taken to Groot's facility in Elk Grove Village. Mr. Williams asked what Groot's current -rate was and Mr. Beal said that it is at $42.00 per ton. 'Mr. Rigoni said that he believes the key to meeting the commitments is for the municipalities to be aggressive in going after commercial waste for the system. Mr. Hagman said that he would like the Executive Committee to dedicate its next meeting foTfurther exploration of this subject. Mr. Beal then distributed a memo on the status of the Groot contract negotiations. He said that with Board approval, the short and long-term contract with Groot could be finalized within 30 days. Mr. Beal stated that the only large outstanding issue was the capital program, in that he wanted Groot to have some measure of responsibility in terms of maintenance and repair on items, because their lack of diligence Could cause the Agency to replace capital items at a more rapid pace. Mr. Beal also summarized other highlights of the memo. Mr. Rigoni said that he would be in favor of having a special Executive Committee meeting prior to the May Board .meeting for a run-through of the financial overview presentation to the Board of Directors. It was agreed by the Committee that the meeting would be held on Wednesday, May 10, 1995 at 8 ' :00 a.m. Mr. Beal said that he would put together a memo to be distributed with the Board packet, stating that the Board would be briefed at the May meeting and that a meeting with managers and finance directors would be held in late May or early June. April 25, 1995 Executive Committee Minutes Page 7 IV. Executive Session On a matron by Mr. R.igoni and a second by Mr. Balling, the Committee adjourned to Executive Session at 5:15 p.m. to discuss litigation and personnel. The Committee returned to, public session at 5:44 p.m. V. Wheeling Township Transfer Station -Wane VI. Old Business - None VII. New Business - None VIII. Adjournment On a motion by Mr. Corcoran and a second by I' r'igvni, the meeting adjourned, at 5:45 p.m.. �Illr Members Sheila H. Schultz Chairman, Rd. of Directors Arlington Heights Hoffman Estates Pork Ridge Barrington Inverness Prospect Heights George Van Dusen Buffalo Grove Kenilworth Rolling Meadows Vice Chairman Elk Grove Village Lincolnwood Skokie Evanston Morton Grove South Barrington William R. Balling Glencoe Mount Prospect Wheeling chairman. Exec. Committee Glenview Niles Wilmette, Palatine Winnetka Brooke Beat Executive Director SOLID WASTE AGENCY OF NORTHERN COOK COUNTY EXECUTIVE C{t►MMITTEE April 25, 1995 Executive Session Minutes Solid Waste . Agency f r. Beat gave a brief litigation update, stating that there was no news to report Northern on either the Army Corps of Engineers lawswit or the Kane Countylawswit. He Cook said that the April 26th status hearing for the Army Corps of Engineers had been `©un `"J Cancelled by Judge Duff. 16.16 East Golf Road . Des Plaines, IL 60016 All staff members and Mr.Brinn left the room while theCommittee discussed Phone 7O81296-9205 " `. Beals performance review... Fax 708196-9207 �° Town won't wait for `someone to be dead' PAN Wnru gp qlO It's been at least two years since there has been a homicide or, for that matter, even a shooting in Harvard, a McHenry County town that is proud of its mascot, a big cow, in the center of town. And on the average day, at least 92 percent of its high school stu- dents show up for class, an excel- lent attendance rate by any meas- ure. In short, Harvard, M., is simply not a New Orleans or a Baltimore, two of several large American cit- ies that have imposed daytime curfew laws for school-age chil- dren to clamp down on rising ho- micide rates or drug dealer shootouts. So why has tiny Harvard chosen to pass its own daytime curfew law, the first Illinois town to do so? Well, officials say, it's because they do not want to become New Orleans or Baltimore, which had to pass such laws after the problems got out of hand. Har- vard, they say, is taking a, pro -ac- tive approach, rather than a 'reac- tive one, and they make no apologies for it New Orlean,s imposed its day- time curfOw for schodl-age chit- dren in June 1994, in an attempt 'to clamp down on a record- breaking murder rate. And Balti- more beefed up its curfew laws for juveniles last year after a number of children, were caught, in the crossfire of drug -dealer shootouts. Harvard, a quiet dairy town with 6,600 residents and a growing SEE CUMW, PAGE 14 CONTINUED FWM PAGE I reputation for some of the toughest and most controversial crime -fighting measures in the state, doesn't have those problems, and it doesn't want them, either. "Communities that wait for their first drive-by shooting wait for someone to be dead before they take action," said Harvard Mayor William LeFew. By enacting the unusual day- time curfew ---enforceable against youths 7 through 16 years old caught on the street any time school is in session --this rural community may simply be reflect- ing a nationwide trend toward sweeping measures to help police combat street crime. "I call it the national curfew movement, and it's beginning to happen in even smaller cities now," said William Ruefle, who has studied the trend as a profes- sor at the University of South Ala- bama in Mobile. "The smaller towns don't have that much crime now, but they're beginning to see things going badly, and they are passing the curfew laws in an attempt to keep things from getting as out of con- trol as they are in Chicago or Mil- waukee," Ruefle said. The American Civil Liberties Union criticized Harvard officials in 1993, after the Village Board ap- proved an anti -gang ordinance outlawing the, wearing of any clothing, color combinations or symbols --or even tattoos—that suggest gang affiliation. While a court challenge to that law is pending, city leaders are drawing heat for again enacting a law that some say is entirely un- necessary in this quiet communi- ty. I Harvard isn't alone in going the curfew route. Some 75 percent of U.S. cities with populations of more than 100,000, Chicago among them, al- ready impose nighttime curfews on juveniles. Now, 13 cities also have daytime curfews for school- children, including Baltimore, Cleveland, New Orleans, Lubbock, Texas, and Hampton, Va-., accord- ing to a recent study by Ruefle. Harvard Ald. Tom Hay said he doesn't understand why more cit- ies don't adopt daytime curfew, which Hay said basically strengthens anti -truancy laws that have been on the law books for decades. "It's basically progressive think- ing," said Hay, who also is a McHenry County Sheriffs deputy. "Many communities refuse to admit they have problems because they think it would prevent devel- opers, businesses and residents from moving in," he said. "But we believe the opposite, that it's easi- er to publicly address potential problems before they get out of control." The curfew ordinance gives po- lice the power to stop any school- age youth seen in public during school hours and to issue,cita- tions and fine parents up to $500 on a second offense. State truancy laws don't carry as heavy a punishment and leave the responsibility for enforcing student attendance up to school administrators, said Harvard City Atty. David McArdle. However, the ACLU in Chicago is concerned Harvard police could use their new power to harass minorities, according to ACLU spokeswoman Valerie Phillips. The once almost entirely white farming community has seen its Hispanic population rise rapidly in recent years. Today, Latinos ac- count for about 14 percent of Har- vard's population, one of the larg- est percentages of Hispanics of any community in the county. When Austin, Texas, began en- forcing a day and night curfew for juveniles during the school year last year, it was found that police were Hdisproportionately charging iispanics with, violat' the ordi- Ing nance, according to a spokesman at the Austin Police Department. Austin Police Sgt. John Russell said this wasn't because police were discriminating against His- panics. "It's not eforced more against minorities, but a, lot more minori-, ties violate it [the curfew]," Rus- sell said. "If there's a white kid out of school, he'll get a citation just as a black kid will." Meanwhile, New Orleans police last year reported a 38 percent drop in juvenile crime in the two months after the city adopted day and night curfews for juveniles on school days. Murders in.that city hit a rec- ord high of 489 in 1994, with a large number involving juveniles, said Sgt. Marlon Defillo of the New Orleans Police Department. After the curfew law went into ef- fect, murders in the first seven months of 1995 were running about 20 percent behind killings in the same period last year, Defil- lo said. Not all cities have found the curfew to be a magic bullet for fighting crime. Baltimore strengthened its cur- few laws last year and added a "Parent responsibility" provision that fines parents who let their children skip school. The city took the action after the number of children shot on the streets rose from 179 in 1988 to 542 in 1993. But even with the tougher laws, Baltimore hasn't been able to re- port any significant changes in the juvenile crime or victimiza- tion rates, although car thefts dur- ing school days are down. One problem is that police often don't have the time to both inves- tigate violent crime and play tniant officer, said Sam Ringgold, director of public affairs for the Baltimore Police Department. "I don't think that curfew by itself has done much," said Clint Coleman, a spokesman for Balti- more Mayor Kurt Schmoke. In Harvard, meanwhile, the crime problem hasn't even ap- proached what these much larger cities experience. But Harvard officials say they want be prepared as the city looks forward to tremendous growth with the expected opening next year of a Motorola cellular tele- phone plant I j ­�7__E P. O"n PUG -04-1995 10'34 FROH I TY OF HARUARD TO !I 068185­� _� 4 - An ordh=Cjs AMj2d"gr Section 2 6.02,r carrev,o of the gate and Swxicipal Mule WHEREAS, pursuant to 65 ILCS 5111-1-5 1 "the corporate aLittori- ties of each zjunicjpal'1*ty ray by ordinance declare a curfew throughout all or any part of the manicipality and establish the condiltions and restrictions thereofI ,," and WMMEASF 105 JLCS 5/26-1, requires that livnoever has custody or control of any c11. ild between t1le ages of 7' and 3.6 years shall cause such child to attend a-oza public school is the district Wherein the child resides the entire time it is in session during # the regular school to &at 19. and WHEREAS, Section 26; 02 of the Harvard Municipal Code regulates curfew between the hours of midnight and ro a.m. on sat urdays and Sundays and between the hours of 11 pm. and 6 a.. IIx. of the following day on Sundays through Thursdays: for those persons less than 17 years of age; and WHEti. Se, the Mayor and Aldermen ot the City of Harvardr XcHen.ry county, Illinois... have determined that Section 26,02 Should be mended to include thase hours when school is in zez&ion. NoWe THEREFDREf BE IT ORDAINED by the Mayor and Aldermen of the CITY OF HARVARD, McHenry County, Illinois, as follows' SECTION 1- That Section 26 02, Curfew,, of the Harvard Municipal Code shall be amended to read as follows: 26*02 CVRrZW 19 it is unlawful for a person less than 17 years of age to be present at, in or upon any public assem- bly., building, place, street or highway at the following times unless accorpanied and supervised by a parent,, legal guardian or other responsible curfew Amendment, Page 1 FPOM C! TY OF HARQWD 70 companion at least le years of age, approved by a parent or legal quardian, or uniless engaged in a business or occupation which the laws of this state authorize a person less t1han 17 years of age tO a perform. a. Between 12:01 a.m. and 6 a.m. Saturday; b. between 12:01 a.m, and b a.m. 5unday; and Between 11 p.m. on si=day to Thursday, inclu- sive, and 6 a.m. on the following day. 1� 2. School Days; Other than provided for in the Ill* nois School Code (105 TLCS 5/1wl et seq*)? it shall be, unlawrul for any child buLweten Lhe dg ea of 7 and 16 yearn to be present at, in or upon any public assen ly, building, place, street or highway, dur.-Ipnq school hours, 64 lKn2m,jimly.00, It I ;S unlawful for a parent, legal guardian or other person to knowingly permit or allow a person in him cumtoay or lagal r.ontrol to commit a violation of Section 26.02 above. Co Yiola, Ranaltv: A person whey pleads g"i Ity or Is found guilty of a violation of Section 26,02-A-1 or Section 26.02-B shall De tinea not more tnan §500. A person who pleads guilty or is found guilty of violating Section 26.02-A-2 shall,, on the first offonse, shall be returned to school; on the acoond or subsequent, offense the offender and his or her parents or g-aardian shall eacri be fined not more than $500. SECTION 2: If awf section, paragraph, su,'# lvial'Qn. clause, stintence or provision cf this Ordinance shail be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not affect, inpair, invalidato or- n"llify the vomainder thea cQX1 which remainder shall remain and continue in full force and ref fact,, SECTION 3Q& All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. Curfew Amendment, Page 2 '- AUG -04-1995 10:36 FROM CIT'Y OF HAPUARD TO 17089185336 P.05 Im SECTION 4*0 This Ordinance shall be in Zull force and effect upon its passage, approval and publication in pamphlet form (which publication is hereby authorized) aLrp provided by law. Voting Aye e, Aldermen Scott Dikon ., Tom Hay, Ralph Henning, melvin X. Hinterlong, Mike S. Hooflich, Gerald J. Nolan, Timothy R. Joosten and Patrick Sloway voting Nay: None Absent: None Abstain: None PAI L* '.-F Mayor William W. LeFew (SEAL) ATTEST*, City Clark Cbrisartina P., Arguson Passed; Augustly 1995 Approved. or Published: curfew Amendment, Page 3 C T TY OF q1 16 1j HAPI,!�iRD TO - -04-i995 10: PROM Q 11 CHRISTINE F. pBR(;usoN, do herdby certify that T am the duly appointed, acting and qualified Clerk of the City Of KarVardi ounty, I *nois,, McHenry, lland that as such Clerk.. I am t110 Xeeper CI of the records and minutes and proceedings of the Mayor and Aldermen of said C'ty of Harvard. I do bareby further vertigy that at a regular meeting of the Mayor and Alderzen of the City of Harvard; held on the Ist day of Aucjust,, 1995,rr the foregoing ordinanroe eaLitled ; "An Ordinance Awnflin., ode" was a Sectlon 26,02, at �rew, of the Irarvard Municipal C duly passed by the Mayor and Aldermen of the city of Harvard. The pamphlet form of Ordinance No. 95-143, including the ordinamce and at cover sheet thereof was preparedand a copy of ing such Ordinance Vnis oste,d in the City Hall, 00MMInci on the 9 day of f 1995,and continuing for at least 10 days thereafter* C ies of such Ordinance were also available for public inspection upon request in tho office of the City Clerk. I DO FURTHER certify that the original, of, which the attached a truo and oarreat copy, ix entructad to me as the Clerk of said City for safekeeping, and that I am the .awful. castodian and keeper of the same. GIVEN under my hand and seal this day of lid 0 r axistine F. Ferguson,7—r j, C lexk City of Earvard, mcnenry County, Illinois (SES} OV BH/caf STRIKE OUTS WITH UNDERLINE ARE TYPO 7/27/95 CORRECTIONS - Pages 1, 214 7/31/95 15, 9, and 10 811195 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 23 OF THE VILLAGE CODE ENUMERATING YOUTH AND -GANG AND RELATED OFFENSES WHEREAS, the Village of Mount Prospect is authorized and empowered to provide for the protection of the public health, safety, morals and welfare; and WHEREAS, the rapidly spreading pattern of street gang activityposes an immediate threat to the public health, safety, morals and welfare of the community; and WHEREAS, it is necessary to repel the advance of such activities in the community by every means authorized by the laws of the State of Illinois; and WHEREAS, the Village of Mount Prospect is authorized and empowered by statute to adopt and enforce the provisions of this ordinance; and WHEREAS, graffiti is placed on public and private property by individuals and by groups of individuals who associate together in gangs which endorse the act of placing graffiti on property; and WHEREAS, the presepce of graffiti on public and private props + within the Village offends the aesthetic sensibilities of Village residents, decreases property values, is destructive to property and fosters criminal activity; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect hereby find and determine that graffiti as herein defined constitutes a nuisance which should be abated; and WHEREAS, the Village of Mount Prospect is authorized and empowered by statute to enforce the provisions of the Illinois' Parental Responsibility Law (740 ILCS 115/4 et. seg. (1992)); and WHEREAS, it is the policy of the Village of Mount Prospect to join in any efforts by surrounding communities to curtail unlawful activities; and WHEREAS, gangs utilize private dwellings and buildings to conduct gang -related activities and to recruit gang members, posing an immediate threat to the community. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, AS FOLLOWS: SECTIO N ONE: That paragraph B of Section 23.109 of Chapter 23 of the Village Code of Mount Prospect, as amended, is hereby further amended in its entirety; so that hereafter said Section 23.109.8 shall be and read as follows: B. It shall be unlawful for any person to carry in any vehicle, or on or about hislher person whether concealed or unconcealed on', any firearm, provided that this subsection shall not apply to any person when on his/her Rw own land or in her/her own abode or place of business. Likewise it shall not apply to Gr -peace officers; members of the armed services or reserve forces of the United States; special agents employed by railroads to perform police functions; employees of watGhmeR- licensed security guard agencies; private detectives and private patrolmen officers while on the premises of their employers and actually engaged in the performance of the duties of the#1 employment. Neither shall this subsection apply to members of any firearm dub or organization while commuting between they homes and sum the established ranges; persons transporting weapons between a duly licensed firearms dealer and -- his/her residence or place of business' duly authorized military or veterans' organizations; school color guards and drill organizations; and licensed hunters a ti-heif nu -.11-WhIleWmen while engaged in hunting 9F fi6hin ander commuting between4 homes and sum the person"s hunting grounds and carrying the 0 e ap2ropriate license e,,r person. SEC IQ TWO,- That Section 23.405 entitled "Minor Offenders; Financial Responsibility of Parent orl.egal,Guardian" of Chapter,23 (Offenses and Miscellaneous Regulations) and Article VI entitled "Minors" of Chapter 23,,, of the Village Code of Mount Prospect, as amended, are hereby further amended by delefing Section 23.405 in its, entirety and renumbering Section 23.4,06 entitled ""'Theft of Recyclables" to Section 23.405 and that Article VI of Chapter 23 be amended by deleting said Section Article VI in its entirety and substituting therefor the following; so that hereafter said Article VI of Chapter 23 shall be and read as follows: Article VI AGE AND GANG RELATED OFFENSES Sec. 23.601 Sec. 23.602 Definitions Par', Safe Zones Enhanced Penalties for Violating School or Sec. 23.603 Underage Persons Remaining Where Alcohol is Consumed; Prohibited Sec. 23.604 Sale of Tobacco Produces to Minors Sec. 23.605 Curfew Sec. 23.606 Sec. 23.607 Truancy to Schools and Minors Firearms Regulation with Respect Sec. 23.608 Vandalism Sec. 23.609 Gang Signs Prohibited Sec. 23.610 Activity or Loitering For the Purpose of Causing StrVet Gang A Recruitment is Prohibited Sec. 23.611 Loitering For the Purpose of Illegally Using, Possessing or Selling or Buying Cannabis or Controlled Substances Sec. 23.612 Temporary Questioning Prior to Arrest Sec. 23.613 Minor Offenders; Financial Responsibility of Parent o r Legal Guardian Sec. 23.614 Maintaining Public Nuisance Sec. 23.615 Regulations Governing Use of Alcoholic Beverages B y and Delivery to Underage Persons Sec. 23.616 Penalties; General Section 23 -601 -Definitions. - NEI, F &T^ T^111 M.- 1004� IWAALL11=11111111 -I.- i 4 Wk IL:, 1W 7, W.T.Tww .- 17, 1W Vp Way CONTROL OF PREMISES: The legal or beneficial ownership, rental, lease or holding of a license shall constitute control' of property., Control' may, latin sps also exist where none of the aforesaid legal relohi apply, but where an adult is otherwise In charge of or Icharged with controlling a particular premises. COURSE OR PATTERN OF CRIMINAL ACTIVITY:_ anTwo or moregang-related criminal offenses when: (i) one or more of the offenses was committed after the effective date of this Article VI; and (ii) the offenses were Committed within, five (5) years of each other) - and (iii)(iii)at least one offense involved the solicitation to commit, conspiracy to commit, or Commission of any offense defined as, a felony or forcible felony under, the Illinois Crimj�nal, Code, ' i i I "o EMANCIPATED MINOR: Any person under the age of 18,, bu I not living with or being under the care and custody of a parent. • Bf SQ41+-Qe4f 1941 t-, GANG OR STREET GANG.- -----4Pea;w Any, ongoing organization, association or group of three or more persons, whether, formal or *informal,, 4mg"41.9 engages in gang activity,, and at least two of whose members 'individually or collectively engage in or have engaged in a pattern of criminal activity. GANG ACTIVITY: me ins The Commission, attempted commission, or solicitation, with the intent to promote the Commission of two or more acts by gang members, of the following offenses: murder, drug induced homicide, kidnaping, forcible detention, aggravated assault -discharging firearm, aggravated battery, heinous battery, aggravated battery with firearm, aggravated battery of a child, aggravated battery of a senior citizen, intimidation, compelling organization membership of persons, home invasion, damage or trespass to property, aggravated criminal sexual assault, robbery, armed robbery, burglary, residential burglary, criminal fortification of a residence or building, arson, aggravated arson, possession of explosives or incendiary devices, unlawful use of weapons, unlawful use or possession of weapons by felons or persons in the custody of the Department of Corrections, aggravated discharge of a firearm, mob action/violence, bribery, armed violence, manufacture or delivery of cannabis, cannabis trafficking, calculated criminal cannabis conspiracy and related offenses, illegal manufacture or delivery of a controlled substance, controlled substance trafficking, calculated criminal drug conspiracy and related offenses. GANG AgRVIT-Y-.-SIGN A signal with the hands and/or other parts of the body,, the purpose of which is to indicate gang affiliation or gang messages to other persons. GRAFFITI: mean The inscription or marking, by carving., the application of paint, or other substance, or by any other means, of any wall, fence, sign, sidewalk, pavement, post, stone, tree or other natural object, or any other public or 4 private structure of ... buikfif fu �"Y—w mint nr I ,meaneq- or building 1W TW f 4 e'F - 6 U bes t, N 9.01r %A 4 F7 1W other than as may be done in accordance with the ordinances of the Village. GUARDIAN: See Legal Guardian. KNOWINGLY: Having general knowledge of, or reason to know, or a belief or ground for belief which warrants further inquiry or inspection. LEGAL GUARDIAN. A person appointed guardian, or given custody, of a minor by a Circuit Court of this State. This does not include a person appointed guardian or given custody of a minor under the Juvenile Court Act. 11 MINOR: Any person under eighteen (18) years of age. dFAIRWA a On W AA am&MwM MUM= a. tjLLwjk-- took NftMCWWA J ALA MW!*A�.'A 2MALMA&M i.r tiM ii MMS. "A owat-A dil &&tax im"L,-t 6qWii* N MKINt.. ft�= O.AnkaL.-K-Ar IN dwmKrw MM �A OR tw jxMKZAnWZ" -A� . Wt 'A 7 ax WAM1121010B *04 ANN& A&kWA A W MM IWALMF' AIWO. low] 00 aM.I IMIX-MWAT . . . . . . . . . . . . . 4k 'AATATAWOOMOn 1'j W1kWW11W# i MMF MMA MM MM. MM MMA0W1=LA=LW 'MZ0 g� A 140 -AMA, Ll= tALALMA JUP MMM I=&-AMK' 2=0 INIV PARENT: A natural or adoptive parent or a court designated guardian,, RECKLESSLY: Acting in a manner or under circumstances such as evince disregard of, or indifference to, consequences involving ON A Ah W 1W 00 11111111 A LOW *R NIP rt] F US mo - AIM T ;0I AL.3 :73 Ir 4 y.! I, A a AL CA a AL —Ar -ANO AN, B[ 7! mw!- =�AAIW16I RQ44r lmw 1111, = . Elm ...............MI Apr M., ff no to ,;r JJ. . AWL ZA'.. x AL 1.9w AL 0 1A danger to the property, life or safety of others. UNDERAGE PERSON/ MWGR-.. Any, person under twenty-one (2 1) years ofago . This to yprm in will t k - re/atially be used on to akoholic liquorI Offenses. UNEMANCIPATED MINOR: A person under the age of eighteen (18) years still under the care and custody of his or her parents. UNSUPERVISED: A lack of visual or oral oversight coupled with lack of sufficient proximity to obtain immiediate control over the an item or minor. VICARIOUS LIABILITY: That liability which is implied as a matter of law even though, the person may not have directly used an in to an person. person. WILLFUL: Proceeding from a conscious and voluntary intentional notion of the will. ON A Ah W 1W 00 11111111 A LOW *R NIP rt] F US mo - AIM T ;0I AL.3 :73 Ir 4 y.! I, A a AL CA a AL —Ar -ANO AN, B[ 7! mw!- =�AAIW16I RQ44r lmw 1111, = . Elm ...............MI Apr M., ff no to ,;r JJ. . AWL ZA'.. x AL 1.9w AL 0 1A 7 PPUed I's w1h or, .. _ —'OF low N 9 wart ar 0 Jot, ao 0 ISM oi4 BIW .� �.. ". JA F WE s ," All,"To Mm ; , to persons under sixteen (16) years of age who are in their own home and are not n drinkiig alcoholic beverages or are not responsible for holding the party or event. Whenever a person is present within any motor vehicle, house, apartment, room, hotel room shed, yard, or other area of which such person isthe owner, lessee, permittee, e that a violation of the provisions of this Im cc ballee, le,' gal possessor or oupier at the 4 hat the person had knowledge of the Section occurs, 'it shall be primafade evidence t violation. Sec. 23-643,. 23.604 Sate of Tobacco Products to Minors. vendor, vending machine operator, If shal' be unlawful for any tobacco dealer or other person operating a business in this Village where tobacco products are sold, to sell, give or make, available toany person less than eighteen (18) ears of age any cigarettes, cigars or other tobacco products except upon the ywritten order of an adult known to the veIndor, operator or dealer. Sec. 244U. 23.605 Curfew. "ViANGED) Notwithstanding anything contained to the contrary in the Mount Prospect Village Code, the following shall apply with respect to curfew: A. it is unlawful for a person less than eighteen (1 8) years of age to be present at any public assembly or in any public, building, p4aee-, Park, sidewalk), street of highway or other public place between; Sec. 23-6165. 23.606 Truancy, A. It shall be unlawful for any person under the age of eighteen (18) enrolled in a !AA -1 HALL public, private or parochial school t , e-ewpefete-4mits -of-Abe Village, to absent himself or herself from attendance at school dun"ng such period when school is in session, without parental permission or valid cause. B. A valid cause for absence from school shall include illness, death in the immediate family, other family emergency or other causes beyond the control of the person absenting himself or herself from school, provided that parental permission, for absence due to such a cause is obtained, in writing, from the parent and is submitted to the proper school authorities within twenty four (24) hours after the absence. C. A police officer may stop and detain a person whom the officer reasonably suspects to, be violating this section a reasonable time for the purpose of verifying the person's identity, age, school enrollment and authority to be absent from school. The Police, officer shall immediately inform the person of the reason for the detention and that he or she will be released upon verification of authorization to be absent from school. The person shall not be removed from the scene of the investigatory detention unless he or she refuses to provide the officer with the necessary information. 1FAVIA jff'_ AT 4 tok'ZIwrr .w M�Aft-M-_JAA Q.&IMM110 gill a A I -X'Wp�� will 'a I CWA 'A- k0w millilliffillwAWl" 4MILW Ere 4111,2WIMS a Ali MIMa r 116, A T •- r.T.- T Z Sec. 23-M. 23.607 Firearms Regulation With Respect to Schools and Minors. wr A. Eirearms tin School Prohibited. It shall be unlawful for any person other than a law enforcement officer to be in possession of any firearm on the premises of any public, private or parochial school. The sole exception to this is if an adult is inin "I 1?osselssion EYM of a firearm for the purpose of a program or demonstration that has been specifically approved by the school authorities. Will Ike MAMAM "t OF 2.3 M3, 2"T ! '2"ToT_ Ir ? F "� r—T."T, M W M 5 NOVA Any person who provides to or permits possession of any firearm of any kind to a person under the age of twenty-one (21) shall be liable to any individual who has been injured in person or in property on account of the use of the firearm as set forth in Section 23-618 615 of this Article VI. P%Mlft if E. Plenalt Any person found guilty of violating subsection A, Q G shall be fined not less than One Thousand Dollars ($1,000.00) and the firearm shall be ordered confiscated by the Mount Prospect Police Department. The only exception to the order of confiscation shall be if a third party, who is legally able to possess a C�rearm in ey c�ea� anti r����rc��g e�1���+�`�ai�h� the Stale of 11C1n6s ViNes, firearm was taken from the third party without the third party's consent. Sec. 23417. 23.608 Vandalism. A. General. It shall be unlawful for any person to commit any of the following acts within the corporate limited of the Village; 1. Wilfully, maliciously, recklessly or knowingly damage, deface or destroy any property of another person without his consent; or Z. Wilfully, maliciously, recklessly or knowingly start a fire on the land of another person without his consent; or 3. Wilfully, maliciously, recklessly or knowingly deposit on the land or in a building of another, without h+s the person's consent, any stink bomb or other offensive smelling compound and thereby interfere with the use and occupancy by another of the land or building; or 4. Wilfully, maliciously, recklessly or knowingly and without authority enter into any building, house, trailer, motor vehicle, aircraft or watercraft, or any part thereof, of another person without his the person's consent. B. Graffiti., Graffiti in public view is hereby declared to be a nuisance as set forth in the Code of Ordinances of the Village of Mount Prospect and is subject to the provisions regarding nuisances and abatement, further: I It shall be unlawful for any person to place graffiti upon any public or private property whether real or personal. 2. It shall be unlawful for the owner and/or occupant of fixed real or personal property which is in public view to place or give permission for the placement of any graffiti on the property. 3. It shall be unlawful for any person under twenty-one (21) years of age and not in the presence of a parent to possess, while in any public building or public facility or while on private property, other than the home or apartment which is the domicile of the person or in the home of an acquaintance unless when permission to possess has been granted, a spray paint container, paint, ink, marking pen which contains a fluid which is non -water soluble when dried or a brush, applicator, or any other material for marking, scratching or etching. It shall be an affirmative defense to any charge brought pursuant to this section that the defendant was engaged in a bona fide business or educational pursuit in the building or on the property involved in the charge that required the use of the otherwise contraband marking material. 4. It shall be unlawful for any owner of real property or governing body of any association responsible for the common areas of any real property upon 10 which graffiti is placed to fail to remove, cover or otherwise eradicate such 9faffiti within seven (7) days of receipt of a notice to remove graffiti by the Village. ff the facade upon which the, graffiti'* is placed is unpainted masonry, painting over the graffiti shall not be considered to be removal unless the entire structure is also painted. C. en a e s. The penialt or f• a violation of subsection A shall be a fine of not less than Y 1, 1 Two Hundred Dollars ($200.00) nor more than One Thousand Dollars (,$1 ,000.00) for each, offense. 2. The penalty for violation of Subsection (13)(1) shall bea fine ofnot less than Five Hundred Dollars ($500i,,00) nor more than One, 'Thousand Dollars, ($1 000-00). In addition to the, fine,, 'the o ffiender may be; ordered by the Court to pay restitution to the property' owner for the costs of restoring the property to its state prior to the application of graffiti, 3. The penalty for violation of Subsections (13)(2) and (3) shall be a fine of not less than Five Hundred Dollars ($500.00) nor more than One Thousand Dollars ($1 of 00) and a separate offense shall be deemed committee on each, day during or on which a violation occurs or continues. 4. The penalty for violation of Subsection (13)(4) hereinabove shall be a fine of not less than One Hundred Dollars, ($100.00) nor more than Five Hundred Dollars ($500.00). & Sec. 244-U. 23.609 Gang Signs Prohibited. A. It shall be a violation of this ordinance for any person to display, demonstrate or "throw" a gang sign that may be seen or received by other persons who are in or on any public place within the Village. t shall be a violation of this ordinance for any person to wear ordisplay any Clothing, jewelry or tatoo which has been made, or altered to show gang names,j insignia or information or to 'weaf Ing display any item that otherwiSe demonstrates allegiance to a gang. Sec. 24-M. 23.610 Loitering For the Purpose of Causing Street Gang Activity or Recruitment Is Prohibited. A It shall be unlawful for any person to loiter, loaf, wander, stand or remain Idle, whether alone or in consort with others, in a public, place for, the purpose, of recruiting others for membership in a, street gang or for participation in gang_ related aGtiyifi or other criminal activities. Z'=MjQ1 wWr .w 1.r , I V-111 IL -6 A 6 -3W I a IWO ALM all, Sec. 23- 23.611 Loitering for the Purpose of Illegally Using, Possessing or Selling or Buying Cannabis or Controlled Substances. IF No persons loiter in a public place in a manner and under circumstances manlitesving the purpose 01 illegally using, posseng, vansieTT1q, bulmg OT selling any cannabis or controlled substance. B. Among the circumstances which may be considered in determining whether such a purpose is manifested are: 1. The person is a known illegal user, possessor or seller of cannabis or controlled substance, or the person is loitering in a place frequented by persons who are known to illegally use, possess, transfer or sell cannabis or controlled substances; and 2. The person repeatedly passes to or receives from passersby, whether such passersby are on foot or in a motor vehicle or other form of transportation, money, objects or written material that to an experienced investigator appear to be for the purposes of inducing, enticing, soliciting or procuring another to illegally possess, transfer or buy any cannabis or a controlled substance. G. If the circumstances of subsection B above are not present, a person may be deemed to have violated this Section 23 62 23.611 only if the person demonstrates a specific intent to induce, entice, solicit or procure another to illegally possess, transfer or buy cannabis or a controlled substance. D. A peace officer may not arrest a person for violation of this Section 23 620 23.611 unless the peace officer first offers the person an opportfnity to explain the suspicious conduct. E. For the purpose of this section, a "known illegal user, possessor, or seller of controlled substances or cannabis" is a person who, within one (1) year previous to the date of arrest for violation of the section, has been convicted of illegal manufacturing, using, possessing, selling, purchasing or delivering any controlled substance. F. Any person found to have violated any provision of this section shall be fined not less than Two Hundred and Fifty Dollars ($250.00) nor more than One Thousand Dollars ($1,000.00) for each offense. Sec. 23421. 23.612 Temporary Questioning Prior to Arrest A. A peace officer, after having identified himself or herself as a peace officer, may stop any person in a public place for a reasonable period of time when the person is wearing known 'gang colors, emblems or other gang insignia, and the officer reasonably suspects from the circumstances that the person is committing, is about to commit or has committed any offense, including those set forth in this Article VI. Once stopped, the officer may demand the name and address of the person and any explanation of the person's actions. Sudh detention and temporary questioning will be conducted in the vicinity of where the person was stopped. B. When a peace officer has stopped a person for temporary questioning pursuant to Subsection (A) and the officer reasonably suspects that the officer or another person is in danger of attack, the officer may search the person for weapons. If an officer discovers a weapon, the officer may take it until the completion of the questioning, at which time the officer shall return any lawfully possessed weapon. Sec. 23-622. 23-613 Minor offenders; Financial Responsibility of Parent or Legal 12 Sec. - —23—r% a 23.614 Maintaining Public Nuisance A. Any building or, dwelling used in the commission of offenses prohibited by Sections 9-111 101-11 11-114t 1'1-151 11-16, 11-171 11-20.11 11-21, 11 -22, 12-5.11 16-1, 20-2, 23-11 23-11(a)(1)t 24-1(a)(7), 24-3, 28-11 28-3t 31-5 or 39A-1 of the "Illinois Criminal Code e219 " or prohibited by the "Illinois Controlled Substances Act," or the "Cannabis Control Act," or used in the Commission of an inchoate offense relative to any of the aforesaid principal offenses, or used to engage in gang related activities is a public nuisance. B. Penalty. Any person violating this Section -23-62 23.614 shall be fined not less than Five Hundred Dollars ($500.00). Furthermore, if the person is not the owner of the building being used for gang -related activity, the Court may order the offender to pay restitution to the owner for the costs of any damage caused by 13 gang -related activity, unless the owner knew or should have known that such activity was taking place and negligently or WIMU4 iaMed to n0 01 khe V11�BgerJ1 k�"1e occurrence of the activities. A, 1W 1. The Village of Mount Prospect may after fourteen (14) days and within ninety (90) days of giving the Attorney General and the State's Attorney of Cook County written notice by certified or registered mail of the fact that a public nuisance as described in this section exists, commence an action to abate the nuisance in accordance with the procedures delineated below provided that the Attorney General or the State's Attorney of Cook County has not already commenced a similar action. 2. The Village of Mount Prospect may commence an action to abate the public nuisance in the Circuit Court of Cook County. Upon being satisfied by affidavits of other sworn evidence that a public nuisance exists, the Court may without notice or bond enter a temporary restraining order or preliminary injunction to enjoin any defendant from maintaining the nuisance and may enter an order restraining any defendant from removing or interfering with all property used in connection with the public nuisance. If during the proceedings or hearings upon the merits, which shall be in the manner of the "Controlled Substance and Cannabis Nuisance Act" (740 ILCS 40/0.01 et. seg. 1992) the existence of the nuisance is established and it is found that such nuisance was maintained with the intentional, knowing, or reckless permission of the owner orent of the owner managing the building, the court shall enter an order retraining all persons from using the property for a period of six (6) months thereafter. Provided that an owner, lessee or other occupant may use such place if the owner shall give bond with sufficient security or surety approved by the court, in an amount not less than Ten Thousand Dollars ($10,000.00), payable to the Village of Mount Prospect, and including a condition that no offense specified in subsection (A) above shall be committed at, in or upon the property described and a condition that the principal obligor and surety assume responsibility for any fine, costs or damages resulting from such an offense. Nothing in this Article VI shall prevent the Villagefrom seeking the demolition or placement *Into receivership of any structure declared to be a nuisance pursuant to this Section 2304-iff"92 23.614. Sec. 23.615. Regulations Governing Use of Alcoholic Beverages by and Delivery to Underage Persons. The regulations governing the use of alcoholic beverages by and delivery to underage persons as set forth in Chapter 13 Section 13.129 through Section 13.137 are incorporated by reference into this Article V1 as though fully set forth. Sec. 23-62 23.616 Penalfies; General. Unless another penalty is set forth in this Chapter, every person found guilty of a violation of any of the provisions of this Chapter shall be subject to a fine of not less than one hundred dollars ($100.00), nor more than five hundred dollars ($500.00) for each offense. A separate offense shall be deemed to have been committed on each day during or on which a violation occurs or continues. Any fines set forth in this Chapter shall be assessed regardless of whether the violator is convicted or placed on supervision by the court. If the court is of the opinion that the ends of justice would be better served by requiring community service of the violator or a combination of a fine and community service, the fine may be mitigated at a rate of one hour of community service for every ten dollars ($10.00) of the mandatory fine. If the offense 14 is related to alcohol orsubstance abuse and the offender lfs' under twenty-one years of a ' ge I the court may, in lieu of any mandatory fines assign, the offender to a the abuse counseling program that I's li�censed by the Illinois Departm,ent of Alcohol and Substance Abuse which includes, a, certified evaluation program and not less than four (4) hours of counseling. Fines assessed by the court against any offender may be in addition to any penalty, assessed agwnst a licensee in any administrative proceeding. S,ECj'QN'TH,R EE: That all prior Ordinances and Resolutions in conflict or inconsistent herewith are hereby expressly repealed only to the extent of such con ict or - inconsistency, —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 0100111 W10400 * 1995. Gerald L. Farley ATTEST: Village President Carol A. Fields Village Clerk 15 BH/caf 7/28/95 ORDINANCE NO. AN ORDINANCE AMENDING ARTICLE I OF CHAPTER 13 (ALCOHOLIC BEVERAGES) OF THE VILLAGE CODE OF MOUNT PROS TCT BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, IN THE EXERCISE OF THEIR HOME RULE POWER: §j .1 E,gTION Q,NE,. That Sections 13.128, 13.129, 13.1303 13.131,13.132113.133,13.1341 13.1351 13.1361 13.137 of Article I entitled "General Provisions" of Chapter 13 of the Village Code of Mount Prospect, as amended, is hereby further amended by deleting said Sections in their entirety and substituting therefor the following: so that hereafter said Sections 13.12,8,13.129,13.130,13.131,13.132, 13.133,13.134113.135113.1361113.137 shall be and read as follows: • Sec. 13.129. Regulations with Respect to Underage Persons and Alcohol. Nothing in this Section shall prohibit any persons under the age of twenty one (21) years but at least nineteen (19) years of age from delivering alcohol to customers of a Village of Mount Prospect Liquor License Classification Class D., El F., Gq Hl M.9 P., R1, So Sl,, or W license holder while in the employ of the license holder. A. It shall be unlawful for any holder of a retail liquor dealer's license to allow any person under the age of twenty one (21) years to be or remain in any room or compartment adjoining or situated in the room or place where such licensed premises is located; provided, that this Subsection shall not apply to any person under age who is accompanied by his or her parent in a premises holding a Village of Mount Prospect Class D. E,1 Fs, Gf Hl Mv Pf R, Sv SIp T, V or W license. However, no underage person shall be allowed to remain in the lounge area of a Class "S" or "Sl" license holder. B� It shall be unlawful for any person to whom the sale, gift or delivery of any alcoholic liquor is prohibited because of age to consume, purchase, accept a gift of or have such alcoholic liquor in his or her possession. The prohibitions set forth in this subsection (B) shall not apply in the circumstances described in Section 13.129. C. If a licensee, in the exercise of ordinary judgment, should have reason to believe that a sale or delivery of any alcoholic liquor is prohibited because of the age of the prospective recipient, the licensee shall, before making such sale or delivery, demand presentation of a form of positive identification, containing proof of age, issued by a public officer in the performance of his or her official duties.. (See Section 13.131) D. No person shall transfer, alter or deface any identification card; use any identification card of another; carry or use a false or forged identification card; obtain an identification card by means of false information; or otherwise misrepresent age for the purpose of purchasing or obtaining alcoholic liquor in the Village of Mount Prospect. (See Section 13.131) E. In every place in the Village where alcoholic liquor is sold there shall be displayed at all times in a prominent place a printed card which reads substantially as follows: you are under 211, you are subleCt tO a mandatory'fine, Of$500-00 uonl if you mlsrepresent your age if you purchaseany alcoholic liq for the purpose of purchasilng or obtaining any alcoholic liquor, you voill also be subject to resbicted priVileges Within the Villiage, of Mount Prospect and �a loss Oiryour Illinois D,rivers License. ff' you buy for jor deliveran alcoholic beverage to, an underage persont )you," be suolect to, a mandatory,fine Of $11,0100.004 Sec. 13.130. Consequences of Facilitating the Use of Alcoholic Beverages by Underage Persons. ,I ral ptio an Underaaeperson. it shall be unlawful for any A. alive Bey Df.-Ilml . ....... r any alcoholic person, regardless of relationship, age or circumstances, to deliver beverage to any underage person, except as set forth in Subsection (C). )n of an Alcoh It shall be unlawful of Premises Consurn9t2n_2LO_& B. negligently fail to prevent, for any person -to knowingly permit or to knowingly or on premises under his or her control, the consumption of an alcoholic beverage by an underage person. This Section shall apply to both residential, public and commercial premises. C. 'Emen-tiola"S. subsections (A) and (B) of this Section shall not apply in the following circumstances: ,9 1 1 b to D, Pen Any person found) U-Ity of violating Susecti n (A) or (B) of this S ection shall be fined in the mandatory amount of one thousand dollars ($1 1000-00). r ePers2 Rati Abuse of E. V'i us LiAblilit, q , L ',if of a, Parent oO!hr n., Facil"' be liable to any individual who rac ms. The following person has been injured by an alcohol impaired underage person when the impairment is a cont6buting cause of the injury: 1, , Any person who delivered or permitted the delivery of an alcoholic beverage to the underage person. The person making or permitting the initial delivery �14 to an underage person remains liable to anyone injured by the same or different underage person regardless of how many times the alcoholic beverage changed hands. 2. Any person in control of a premises, who knowingly or negligently fails to maintain supervision to such an extent that an alcoholic beverage is consumed on the premises by an underage person. 3. Any person who knowingly or negligently allows the operation of a motor vehicle under his or her control by an underage person, when the person knew or in the exercise of ordinary judgment should have known that the underage person was either impaired or had consumed any amount of alcohol within two (2) hours prior to when the allowance to drive occurred. The vicarious liability established by this Section shall not be subject to the limitations on damages as set forth in 235 Illinois Compiled Statutes 5/6-21. Sec. 13.131 Use of False Identification. Any underage person found guilty of attempting to obtain delivery of an alcoholic beverage by use of false proof of age shall be subject to a mandatory fine of five hundred dollars ($500.00). If the false proof of age was an improperly used drivers license, the person so using it shall not be permitted, for a period of six (6) months, to operate a motor vehicle within the corporate limits of the Village of Mount Prospect unless accompanied by a licensed driver over thirty years of age. (See Section 13.135). Sec. 13.132 False Identification not a Defense. It shall not be a defense to any action brought criminally, civilly or administratively against any liquor licensee or any other person charged with the delivery of any alcoholic beverage to an underage person that such a person produced false identification or proof of age. The person or persons hearing and deciding the charges may consider such a claim when determining the penalty to be assessed or the apportionment of damages. Sec. 13.133 Operation of a Motor Vehicle While in a State of Impairment It shall be unlawful for any underage person to operate a motor vehicle on a street or highway of the Village while in a state of impairment due to the consumption of an alcoholic beverage or with any alcohol at all in his or her system. For purposes of this Section only, operation of a motor vehicle shall have the definition ascribed to it under the Illinois Vehicle Code rather than the definition set forth in Section 23.601 of this Chapter. Sec. 13.134 operation of a Motor Vehicle by Underage Persons with an Alcoholic Beverage in or on the Vehicle; When the Underage Person Is Impaired Due to Alcohol or has Alcohol in the System or Is operating the Vehicle In Violation of a Restriction Pursuant to this Chapter. The following shall apply when any underage person is found in the Village, operating any motor vehicle in which or on which is found any alcoholic beverage, or when the underage person is in a state of impairment due to consumption of alcohol or to have alcohol in the system or is found operating a motor vehicle in violation of a restriction pursuant to this Chapter: A. The motor vehicle shall be subject to immediate impoundment by the Police Department. B, The following factors shall not be considerations in determining whether or not to impound the motor vehicle: 1. Whether the alcoholic beverage is in an opened or an unopened container. 2. Whether the operator is the owner of the alcoholic beverage in the vehicle. 3. Whether the operator had knowledge of the existence of the alcoholic beverage within the motor vehicle. C. Upon impoundment, the motor vehicJe may be released only to another person showing proof of ownership or lease rights to themotor vehicle. If the underage operator is the owner or lessor of the vehicle, then the ,vehicle may be released only to a parent orspouse of the underage owner. If the underage person has no parent or spouse living in the immediate area, the vehicle may be released, upon satisfactory proof of such fact, as set forth in Subsection (D). D. The motor vehicle may, not be released to any person who was a :p assenger in the : motor vehicle at the time the alcoholic beverage or impairment, was found unless at least twenty four (24) hours have passed from the time of the finding. d e p�n E. The vehicle shall not be release•until therson seekt, g the release has paid ' an administrative fee of one hundred fifty dollars ($150.00) to the Police Department, plus any towing or storage costs. F If the operator is subsequently found guilty of driving with open alcohol in a, motoj vehicle or possession of alcohol by a minor or of operatinga motorvehidlewh ille impaired pursuan'tto, Section 13.133 of this, Chapter,, that p I erson shall not fts j o 0 Iml e a m tor vehicle -within the 1* permitted for a period of six (6) months, t•ope rat e of the Village of Mount Prospi :ct unless accompanied by a, licensed driver over thirty years of age. G. The above obligations and penalties shall be in addition to the penalties that may be assessed in a court of law for any charges incident to the stop. H. Any law enforcement ,officert the Police Department and the Village and any of its officers or agents shall be absolutely immune from any liability or exposure to liability of any kind or nature for the enforcementor implementation of this Section. Sec. 13.135 Procedure for Driving Restriction Notification; Hearing. A. If a person has committed a violation that subjects the person to a restriction on driving in Mount Prospect, such a restniction shall not take., place until the Village of Mount Prospect Police Department has sent, by regular mail, a notice of the pending driving restriction. The 'notice shall be mailed at least two (2) weeks before therestrictionis to go into effect and shall contain (a) a statement that the restriction applies only to the Village of Mount Prospect; (b) the date the restriction is to go into effect and the date on which it ends* (c) a map showing the Mount Prospect Village limits; (d) a notice that the operator has the right to request a heading within ten (1 o) days to determine the validity of the restriction. The validity of the restriction may be challenged only on the grounds that the person was not the actual person found guilty or that, there was no finding of guilty for the underlying offense. B. The hearing shall be conducted by a supervisory member of the Village of Mount, Prospect Police Department as appointed by the Chief of Police whose determination shall be final. Sec. 13.136 Penalty for Violating Driving Restriction. A. Restriction. No person shall operate and no person, including a parent, shall permit another to operate a motor vehicle within the corporate limits of the Village in violation of the restrictions set forth in Sections 23-603 or 23-608(F'), Section 13131 or 13.134. E. B. Penalty. Any person found guilty of Violating this Section shall be fined in the mandatory amount of five hundred dollars ($500.00). Section 13.137. Penalties; General Unless another penalty is set forth in this Chapter, every person found guilty of a violation of any of the provisions of this Chapter shall be subject to a fine of not less than one hundred dollars ($100.00), nor more than five hundred' dollars ($500-00) for each offense. A separate offense shall be deemed to have been committed on each day during or on which a violation occurs or continues. Any fines, set forth in this Chapter shall be assessed regardless of whether the violator, is convicted or placed on supervillsion by the court. If the court is of the opinion that, the ends of justice would be better served by requiring community service, of the violator or a combination of a fine and community service, the fine may be mitigated at a rate of one hour of community service for every ten dollars ($10.00) of the mandatory fine. If the offense is related to alcohol or substance abuse and the offender is under twenty-one years of age, the court may, in lieu of any mandatory fines, assign the offender to a chemical abuse counseling program that is licensed by the Illinois Department of Alcohol and Substance Abuse which includes a certified evaluation program and not less than four (4) hours of counseling. Fines assessed by the court against any offender may be in addition to any penalty assessed against a licensee in any administrative proceeding. SE,PTION. TWO.- All prior ordinances and resolutions in conflict or inconsistent herewith are hereby expressly repealed only to the extent of such conflict or inconsistency. SEgj!!QN THREE.,. This ordinance shall be in full force and effect upon its passage, approval and publication in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of 1995. Gerald L. Farley Village President ATTEST: Carol A. Fields, Village Clerk BH/caf 7/27/95 ORDINANCE NO. AN ORDINANCE AMENDING ARTICLE XVIII OF CHAPTER 18 (TRAFFIC CODE) OF THE VILLAGE CODE OF- MOUNT PROSPEC BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, IN THE EXERCISE OF THEIR HOME RULE POWER: SECTION ON That Section 18.1813 entitled "Penalties" of Article XVIII of Chapter 18 (Traffic Code) of the Village Code of Mount Prospect, as amended, is hereby further amended by renumbering said Section 18.1813 to Section 18.1814 and inserting the following as Section 18.1813; so that hereafter said Section 18.1813 shall be and read as follows* Sec. 18-1813. Vehicle Seizure and Impoundment A motor vehicle operated with the knowledge of the owner or lessee of record and that is used in the violation of the Criminal Code of 1961 (720 ILCS, pars. 9 -119 -219-3.3111-6111-14,11-15,11-15-1111-16,11-17,11-18111-18.1) 11-19111-19.11 11-19.2, 12-2, 12-3, 12-3.2, 12-4, 12-4.1, 12-4.2, 12-4.3, 12-4.4, 12-4.6, 12-4.7, 12-6, 12- 7.1, 12-7.4, 12-13, 12-14, 12-15, 12-16, 12-16.1, 12-15.2, 12-'16.3, 12 -16.4112 -16.5119 -it 19-2119-3119-4119-51 20-1$ 20-1.1,20-2121-1121-21 21-3121-41 21-5121-61 21-7, 24-11 24-1.21 24-2.11 24-3.11 24-3.3 or 33A-2) or in violation of paragraphs 704, 705, 705.11 705.2, or 708 of the Cannabis Control Act (720 ILCS, pars. 704, 705, 705.11 705.2, or 708) or in violation of paragraphs 1401, 1401.1 or 1402 of the Controlled Substance Act (720 ILCS, pars. 1401, 1401.1 of 1402, or similar provision of local ordinance) shall be subject to seizure and impoundment. The owner of record of such vehicle shall be liable to the Village for an administrative fee of One Hundred Fifty Dollars ($150.00) in addition to fees for the towing and storage of the vehicle. Whenever a person is present within any motor vehicle of which the person is the owner, lessee, permittee, bailee, legal possessor or occupier at the time a violation occurs, it shall be prima facie evidence that a person had knowledge of the violation. A. Whenever a police officer has probable cause to believe that a vehicle is subject to seizure and impoundment pursuant to this section, the police officer shall provide for the towing of the vehicle to a facility controlled by the Village or its agents. When the vehicle is towed, the police officer shall notify the person who is found to be in control of the vehicle at the time of the alleged violation, if there is such a person, of the fact of the seizure and of the vehicle owner's right to request a preliminary hearing to be conducted under this section. B. Whenever the owner of a vehicle seized pursuant to this section requests a preliminary hearing within twelve (12) hours after the seizure, a hearing officer as appointed by the Chief of Police shall conduct such preliminary hearing within forty-eight (48) hours after the seizure. All interested persons shall be given a reasonable opportunity to be heard at the preliminary hearing. The formal rules of evidence will not apply at the hearing and hearsay evidence shall be admissible. If, after the hearing, the hearing officer determines that there is probable cause to believe that the vehicle, operated with the knowledge of the owner, was used in the commission of any crime set forth in this section, the hearing officer shall order the continued impoundment of the vehicle as provided in this section unless the owner of the vehicle posts with the Village a cash bond in the amount of One Hundred Fifty Dollars ($150.00) plus fees for towing the vehicle. If the hearing officer determines that there is no such probable cause, the vehicle will be returned without penalty or other fees. C. Within ten (10) days after a vehicle is seized and impounded pursuant to this section, the Village shall notify by certified mail, return receipt requested, the owner and/or lessee of record of the date, time, and 'lo cation of a hearing that will be conducted pursuant to this section. The hearing shall be conducted no later than forty five (45) days after the vehicle was seized. All interested persons shall be given a reasonable opportunity to be heard at the hearing. If, after the hearing, the hearing officer determines by a preponderance of the evidence that the vehicle, operated with the knowledge of the owner,, was used in the commission of any of the violations set, forth in this section, the hearing officer shall enter an order requiring the vehicle to continue be impounded until the owner pays an administrative fee of One Hundred Fifty Dollars ($150.00) plus fees for towing and storage of the vehicle. The fees shall be a debt due and owing the Village. However, if a cash bond has been posted the bond shall be applied to the fees. If the hearing officer determines that the vehicle was not knowingly used in such violation, he or she shall order the return of the vehicle or cash bond. D. Any motor vehicle that is not reclaim I ed within thirty (30) days after the expiration of the time during which the owner of record may seek judicial review of the Village's action under this section, or the time at which a final judgment is rendered in favor of the Village, may be disposed,, of as an unclaimed vehicle as provided by law. As used in this section, the "owner of record" of a vehicle means the record title holder. E. Fees for towing and storage of a vehicle under this section shall be the same as those established by administration of the Village. F. This section shall not replace or otherwise abrogate any existing state or federal laws or local ordinances pertaining to vehicle seizure and impoundment including; but not limited to those set forth in Section 2-3-609 13.134 of this Code. SECTION DLO- All prior ordinances and resolutions in conflict or inconsistent herewith are hereby expressly repealed only to the extent of such conflict or inconsistency. SE('.T1r)N THRV--E'T , his ordinance shall be in full force and effect upon its passage, appr I oval and publication in the manner provided by law. j NAYS: ABSENT: PASSED and APPROVED this day of Gerald L. Farley Village President ATTEST: Carol A. Fields, Village Clerk