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Home My WebLink About6. NEW BUSINESS 11/20/2007 Village of Mount Prospect Community Development Department Mount Prospect MEMORANDUM TO: MICHAEL E. JANONIS, VILLAGE MANAGER t>t). t.A~ \\1&0/01 FROM: DIRECTOR OF COMMUNITY DEVELOPMENT DATE: NOVEMBER 16, 2007 SUBJECT: PZ-34-07 - V ARIA nON (SETBACKS) 1406 SMALL LANE JEANETTE WENDEL - APPLICANT The Planning & Zoning Commission transmits their recommendation to approve Case PZ-34-07, a request to locate a parking pad in the required rear and side setbacks, as described in the attached staff report. The Planning & Zoning Commission heard the request at their September 27th and October 25, 2007 meetings. The Petitioner initially requested Variations for the parking pad's location and to allow more than 45% lot coverage. The request was modifed to meet the 45% lot coverage limitation after the P&Z reviewed the request at their September 27, 2007 meeting, but Variation approval is still required because the parking pad would be located in the required rear and side setbacks. At the October 25, 2007 P&Z meeting, the Commissioner's discussed how the Petitioner's side loading garage and narrower driveway width created difficulties entering and exiting the garage. They noted how the Petitioner agreed to remove pavement so the Subject Property would not exceed the 45% lot coverage limitation. Also, they discussed that the parking pad would have minimal impact on the adjacent properties and that several neighbors submitted letters supporting the request. There was discussion on the recommendation that the Petitioner prepare a new plat of survey before the Village Board reviewed the request. The Commissioners requested a new plat because the plat submitted did not adequately reflect current site conditions. The Planning & Zoning Commission voted 5-0 to recommend that the Village Board approve the request to approve a Variation to allow a parking pad to encroach into the rear and side yard setbacks for the residence at 1406 Small Lane, Case No. PZ-34-07, subject to the Petitioner preparing a new plat of survey prior to Village Board review, and removing impervious surface to meet the 45% lot coverage limitation. The Petitioner since prepared an updated Plat of Survey and found only a portion of the parking pad had to be removed in order to meet the Zoning Ordinance's lot coverage requirements; the front and side service walk could remain if 8.5- feet of the pad were removed. Staff prepared an exhibit depicting the proposal, which is attached to this memo. Please forward this memorandum and attachments to the Village Board for their review and consideration at their November 20,2007 meeting. Staff will be present to answer any questions related to this matter. H:\PLAN\Planning & Zoning COMM\P&Z 2007\MEJ Memos\PZ-34-D7 MEJ MEMO (1406 Small Lane. V AR).doc Village of Mount Prospect Community Development Department CASE SUMMARY - PZ- 34-07 LOCATION: PETITIONER: OWNER: PARCEL #: LOT SIZE: ZONING: LAND USE: REQUEST: 1406 Small Lane Jeanette Wendel Jeanette Wendel 03-35-411-015-0000 0.23 acres (10,012.5 square feet) Rl Single Family Residence Single Family Residential Variation (setbacks and lot coverage) LOCATION MAP E GREGORY ST SMALL IN ~ ~ ~ ~ 0 ~ m m ..... z ~ 0 Ih ~ Z 0 Q ..... Q Z Z m !Z z m m . z !Z 'CElN' I E THAYER ST MEMORANDUM Village of Mount Prospect Community Development Department TO: MOUNT PROSPECT PLANNING & ZONING COMMISSION RICHARD ROGERS, CHAIRPERSON FROM: JUDY CONNOLLY, AICP, SENIOR PLANNER DATE: OCTOBER 18, 2007 HEARING DATE: OCTOBER 25,2007 SUBJECT: PZ-34-07 - VARIATION (SETBACKS AND LOT COVERAGE) 1406 SMALL LANE (WENDEL RESIDENCE) BACKGROUND The case was continued from the September 27, 2007 Planning & Zoning meeting. Since that meeting, the Petitioner modified the request so the Subject Property complies with the 45% lot coverage limitation. However, the location of the parking pad would continue to encroach into the required setbacks, requiring Variation approval. SUMMARY OF REVISED PROPOSAL The Petitioner submitted a revised site plan that indicates existing pavement will be removed from the Subject Property in order to meet the 45% lot coverage limitation while keeping a portion of the parking pad. . The size of the parking pad will be reduced to 17' x 17.5' and the front and side service walks would be removed to bring the site to 44.8% lot coverage. The attached revised site plan indicates the location of the service walks to be removed and the following table provides a break down of the existing amount of pavement and the proposed amount of pavement. Lot Size 45% Lot Covera e max allowed 10,012.5 s . ft 4,505.63 s . ft. t. /47.4% t. /44.8% Although the site will not exceed the 45% lot coverage limit, Variation approval is still required because the parking pad will encroach into the required side and rear yard setbacks. GENERAL ZONING COMPLIANCE The Subject Property does not comply the Village's zoning regulations as a small portion of the house encroaches into the front setback slightly. Also, the patio shown on the Petitioner's site plan is located in an 8-foot utility easement and encroaches into the required 7.5' side yard. PZ-34-07 Planning & Zoning Commission Meeting October 25, 2007 Page 3 The existing parking pad is currently located in the rear easement, but the Petitioner proposes to reduce the size of the pad so the pad will no longer be in the easement. However, the parking pad is considered an accessory structure similar to a patio and cannot be located in the required 7.5' side yard or the 15' rear yard setback. Therefore, the proposed setbacks require Variation approval. The following table compares the Petitioner's proposal to the Rl Single Family Residence District's bulk requirements. Rl Single Family District Minimum Requirements Existing Proposed SETBACKS: Front 30' 29.10' No change East: 18.81' - house No change Interior 7.5' 1.67' - parking pad No change West: 9.93' - house No change 4'+ - patio No change Rear 25' - house 38' - house No change 15' - patio 5' - parking pad 10' - out of easement VARIATION STANDARDS The standards for a Variation are listed in Section 14.203.C.9 of the Village Zoning Ordinance and include seven specific findings that must be made in order to approve a Variation. The following list is a summary of these findings: · A hardship due to the physical surroundings, shape, or topographical conditions of a specific property not generally applicable to other properties in the same zoning district and not created by any person presently having an interest in the property; · Lack of desire to increase financial gain; and · Protection of the public welfare, other property, and neighborhood character. The Petitioner proposes to modify the parking pad so it will not be located in the rear easement. Portions of existing service walks will be removed so the site will not exceed the 45% lot coverage limitation. However, the request continues to be based on providing a convenience to the Petitioner rather than the pad's location being based on a hardship as defined by the Zoning Ordinance: the parking pad is necessary to accommodate maneuvering multiple vehicles into the side loading garage and to accommodate storing seasonal recreational equipment. It appears the original driveway configuration was elongated to provide vehicles ease in maneuvering in to and out of the 2-car garage. The parking pad constructed by the Petitioner does not facilitate enter/exiting the garage but serves primarily as a storage area for vehicles and recreational vehicles. Therefore, the parking pad serves more of a convenience than allowing the Petitioner adequate access to/from the garage and its location does not meet the standards for granting a Variation. RECOMMENDATION The Variation request to allow a parking pad to encroach into the side and rear yards fails to meet the standards for a Variation contained in Section 14.203.C.9 of the Zoning Ordinance as the request is based on convenience and not a hardship. Based on this analysis, Staff recommends that the P&Z deny the following motion: "To approve a Variation to allow a parking pad with an 8-foot rear setback and a 1.67-foot side setback, as shown in the Petitioner's revised exhibit, for the residence at 1406 Small Lane, Case No. PZ-34-07." PZ-34-07 Planning & Zoning Commission Meeting October 25, 2007 Page 4 The Village Board's decision is final for this case because the amount of the setback Variations exceeds 25% of the Zoning Ordinance requirement. Prior to Village Board review, Staff recommends that the Petitioner have a new plat of survey prepared as there are a number of improvements not reflected on the Petitioner's plat of survey. I concur: , Director of Community Development Ijmc H:\PLAN\Planning & Zoning COMM\P&z 2007\StaffMemo\PZ-34-07 MEMO II (1406 Small Lane . V AR -lot coverage and setbacks).doc ....'."t- (..I"""" /",~.or- " r r-~. L, '\ \-, ~ \ ~ ~ ~ \ ~ ~ \. ~ ~~ L.: \ ~ ; \., , '" ~ ~ () \l 1:\ Ii ~ , I ~, () \ ~ , I ~Jr _ c i I ,- ro r-ao r- j Existing Conditions / 8 r-. ~ ~~oo-;-~C/<3c/c ~:~ ~ I. - OT/L/7;"'" c/'?Jc,,-ij~TS /0:/7,.'" <l:l l .\ ---.--.------ \ " .AI'" / " " :\9 r , I If'r) I~ '''\ I I i I 19, I" ./o~ COAJCRr,r~ ,P/T/O ~ \ o \. 9':// ,/:;.. ~l ., ,';- /" ~/..~"~ .. I : , ~ I ,~, 0.- I ~ *, ~d"LJ ~.r...v c--~ -. 7.5':0 '" //7 C'o.....r:. ~,K' c/':'/o..:{ " t '" ~ ~ ~ 'J " ~ r::;:-ll ~ c?4':4" .6'A"/ r k-" ~ /".?.rl" ~c A='cJ/CJ c/t/Ccr- ....-vo. /40& Jc;, :'/?';:" ..-- R ,...... A"?"r "Po..eC.-f/ CJU/LC>/~ G ~ ,~" ~ \ , ~ I\~ 75:'0" WA'Ck' '''ll-.~ ., .t " S ~ I I\:) '\l " a ~ 3 /- .: 4-'9' :::' \ ~ ~ ~ ~ \~ 1\9 \ "I '~ I't) ~\ /RO.... ~/,,<!" ~ -\ / C ~ I~ I.. .. /8':-/O~"" ~ ~ \9 'I ~ \91 t ~ si \ I~~ J ~I., ,OJ ~ I ~ l ~ 'I 't ~ ~ ~ \ ;-. ~ ~ /<9: 9'~:~ \ \J ~ ~ ~ ~ " I. ~ ~ ~ \.. ~?1 '- 0': / C /A/E ~\ Proposed Conditions . 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''1) i r.~ II ~ t ' 311:!CA!,-rF ,AfTI'D, Z9,:<;t"" 4.e.-c.c ~ /.eI'9~F ..r~.f .-.pENe:". /YD. ,"-'; C'.:5 ~ ~ n.... ....." :.-q~ lo\ ..;f~ :/-y" arA'c~ : ~<?V""'U?.......v G be removed v " ~ "" ~ ~ ~ ~. ~, ~ , " \ ~ ~ -.; ~ MINUTES OF THE REGULAR MEETING OF THE PLANNING & ZONING COMMISSION CASE NO. PZ-34-07 Hearing Date: October 25,2007 PROPERTY ADDRESS: 1406 Small Lane PETITIONER: J eanette Wendel PUBLICATION DATE: August 8, 2007 PIN NUMBERS: 03-35-411-015-0000 REQUEST: Variation (setbacks) MEMBERS PRESENT: Joseph Donnelly, Acting Chair Leo Floros Marlys Haaland Ronald Roberts Keith Youngquist MEMBERS ABSENT: Mary McCabe Richard Rogers ST AFF MEMBERS PRESENT: Judith Connolly, AICP, Senior Planner Ellen Divita, Deputy Director of Community Development INTERESTED PARTIES: Jeanette Wendel, Dan Gajewski Acting Chairman Joseph Donnelly called the meeting to order at 7:35 p.m. Keith Youngquist made a motion to approve the minutes of the September 27,2007 meeting as corrected and Leo Floros seconded the motion. The minutes were approved 5-0. Mr. Youngquist made a motion to continue Case Number PZ-38-07 to the December 13,2007 Planning and Zoning Commission meeting. Mr. Floros seconded the motion. The motion was approved 5-0. Acting Chair Donnelly re-introduced Case PZ-34-07, a request for Variation at 1406 Small Lane at 10:34 p.m. Judith Connolly, Senior Planner stated that the Petitioner extended the existing driveway and constructed a parking pad without the benefit of a permit. The parking pad was noticed by Village Inspectors during an inspection for another project at the Subject Property. When the Petitioner applied for a permit after the fact, it was determined that the existing pad did not meet zoning regulations and needed relief from lot coverage and setback requirements. She said the case was originally heard and continued from the September 27, 2007 Planning & Zoning meeting. Since that meeting, the Petitioner modified the request so the Subject Property complies with the 45% lot coverage limitation. However, the location of the parking pad would continue to encroach into the required setbacks, requiring Variation approval. Ms. Connolly said the Petitioner submitted a revised site plan that indicates existing pavement will be removed from the Subject Property in order to meet the 45% lot coverage limitation while keeping a portion of the parking pad. The size of the parking pad will be reduced to 17' x 17.5' and the front and side service walks would be removed to bring the site to 44.8% lot coverage. Ms. Connolly stated that the Subject Property does not comply the Village's zoning regulations as a small portion of the house encroaches into the front setback slightly. Also, the patio shown on the Petitioner's site plan is located in an 8-foot utility easement and encroaches into the required 7.5' side yard. The existing parking pad is Joseph Donnelly, Acting Chairman Planning & Zoning Commission Meeting October 25, 2007 PZ-34-07 II Page 2 currently located in the rear easement, but the Petitioner proposes to reduce the size of the pad so the pad will no longer be in the easement. However, the parking pad is considered an accessory structure similar to a patio and cannot be located in the required 7.5' side yard or the 15' rear yard setback. Therefore, the proposed setbacks require Variation approval. She showed a table comparing the Petitioner's proposal to the R1 Single Family Residence District's bulk requirements. Ms. Connolly said the standards for a Variation are listed in Section 14.203.C.9 of the Village Zoning Ordinance and include seven specific findings that must be made in order to approve a Variation. She summarized these findings as: . A hardship due to the physical surroundings, shape, or topographical conditions of a specific property not generally applicable to other properties in the same zoning district and not created by any person presently having an interest in the property; . Lack of desire to increase financial gain; and . Protection of the public welfare, other property, and neighborhood character. Ms. Connolly stated that the Petitioner proposes to modify the parking pad so it will not be located in the rear easement. Portions of existing service walks will be removed so the site will not exceed the 45% lot coverage limitation. However, the request continues to be based on providing a convenience to the Petitioner rather than the pad's location being based on a hardship as defined by the Zoning Ordinance: the parking pad is necessary to accommodate maneuvering multiple vehicles into the side loading garage and to accommodate storing seasonal recreational equipment. She said it appears the original driveway configuration was elongated to provide vehicles ease in maneuvering in to and out of the 2-car garage. The parking pad constructed by the Petitioner does not facilitate enter/exiting the garage but serves primarily as a storage area for vehicles and recreational vehicles. Therefore, the parking pad serves more of a convenience than allowing the Petitioner adequate access to/from the garage and its location does not meet the standards for granting a Variation. Ms. Connolly said the Variation request to allow a parking pad to encroach into the side and rear yards fails to meet the standards for a Variation contained in Section 14.203.C.9 of the Zoning Ordinance as the request is based on convenience and not a hardship. Based on this analysis, Staff recommends that the P&Z deny the following motion: "To approve a Variation to allow a parking pad with a 10-foot rear setback and a 1.67-foot side setback, as shown in the Petitioner's revised exhibit, for the residence at 1406 Small Lane, Case Number PZ-34-07." Ms. Connolly stated that the Village Board's decision is final for this case because the amount of the setback Variations exceeds 25% of the Zoning Ordinance requirement. Prior to Village Board review, Staff recommends that the Petitioner have a new plat of survey prepared as there are a number of improvements not reflected on the Petitioner's plat of survey. Acting Chair Donnelly swore in Petitioners Jeanette Wendel and Dan Gajewski of 1406 Small Lane, Mount Prospect, Illinois. Ms. Wendel stated that in response to the Commission's concern with lot coverage on the Subject Property, they propose removing 269 square feet of impervious surface to comply with lot coverage requirements. She said they do not request the Variation for the purpose of vehicle storage on the parking pad, but to allow for vehicle maneuvering in and out of the side loading garage. She stated that her neighbors support the parking pad on the Subject Property. Ms. Wendel stated that she believes she has complied with everything discussed at the previous Commission meeting by removing part of the pad out of the easement and by reducing the amount of lot coverage. She said that the service walks to be removed will not be a detriment to the appearance of the Subject Property. Joseph Donnelly, Acting Chairman Planning & Zoning Commission Meeting October 25, 2007 PZ-34-07 II Page 3 Acting Chair Donnelly asked if the neighbors closest to the driveway and parking pad are in favor of the project. Ms. Wendel said the letters submitted to the Commission did include supportive letters from the neighbors closest to the parking pad. Mr. Youngquist said it appears the Petitioner did try to comply with the suggestions from the previous meeting. He said he does agree with Staff in suggesting they obtain a current Plat of Survey prior to going to Village Board. Ms. Wendel said she was not sure if the new Plat should be done before or after the proposed changes are completed. Ms. Connolly said Staff would like to see an updated Plat of Survey prior to this Case going to Village Board to ensure the lot coverage calculations are accurate. There was general discussion regarding the need for an additional Plat of Survey once the work is completed. Mr. Floros concurred that the Petitioner has made a good-faith effort in complying with the suggested changes and supports the request. Mr. Youngquist made a motion to approve a Variation for setbacks at 1406 Small Lane with the condition that the Petitioner obtain a current Plat of Survey prior to appearing before the Village Board. Marlys Haaland seconded the motion. UPON ROLL CALL: AYES: Floros, Haaland, Richards, Youngquist, Donnelly NAYS: None Motion was approved 5-0. After hearing one additional case, Leo Floros made a motion to adjourn 8:35 p.m., seconded by Keith Youngquist. The motion was approved by a voice vote and the meeting was adjourned. H:\PLAN\Planning & Zoning COMM\P&Z 2007\Minutes\PZ-34-07 1406 SmaIl Lane- II,doc Village of Mount Prospect Community Development Department CASE SUMMARY - PZ- 34-07 LOCATION: PETITIONER: OWNER: PARCEL #: LOT SIZE: ZONING: LAND USE: REQUEST: 1406 Small Lane Jeanette Wendel Jeanette Wendel 03-35-411-015-0000 0.23 acres (10,012.5 square feet) Rl Single Family Residence Single Family Residential Variation (setbacks and lot coverage) LOCATION MAP E GREGORY.51 /~ SMALL LN !I: )> '!!l !!l ::0 n '::0 '" '" ,)> < r- :::1 '" ~ z 10 '" ::0 'z 0 F 'r- 0 Z z m r- Z Z '" m . z r- z 'CELN I E THA YER ST ./ F MEMORANDUM Village of Mount Prospect Community Development Department TO: MOUNT PROSPECT PLANNING & ZONING COMMISSION RICHARD ROGERS, CHAIRPERSON FROM: JUDY CONNOLLY, AICP, SENIOR PLANNER DATE: AUGUST 16, 2007 HEARING DATE: AUGUST 23,2007 SUBJECT: PZ-34-07 - V ARIA TION (SETBACKS AND LOT COVERAGE) 1406 SMALL LANE (WENDEL RESIDENCE) BACKGROUND A public hearing has been scheduled for the August 23,2007 Planning & Zoning Commission meeting to review the application by Jeanette Wendel (the "Petitioner") regarding the property located at 1406 Small Lane (the "Subject Property"). The Petitioner is seeking a Variation to allow more than 45% lot coverage and to allow a parking pad in the required setbacks. The P&Z hearing was properly noticed in the August 8, 2007 edition of the Journal Topics Newspaper. In addition, Staff has completed the required written notice to property owners within 250-feet and posted a Public Hearing sign on the Subject Property. PROPERTY DESCRIPTION The Subject Property is located on the north side of Small Lane, between Stratton and Stevenson Lanes, and contains a single-family residence with related improvements. The Subject Property is zoned Rl Single Family Residence and is bordered by the Rl District to the north, east, and west and the CR Conservation Recreation District to the south. The Subject Property has a typical rectangular shape and complies with the Village's minimum lot size regulation. SUMMARY OF PROPOSAL The Petitioner extended the existing driveway and constructed a parking pad without the benefit of a permit. Information from the Building Division indicates the parking pad was noticed during an inspection for another project at the Subject Property. The Petitioner was then instructed to obtain a permit for the parking pad. A permit review was conducted in the fall of 2006, and the Petitioner was notified that the parking pad did not comply with the Village's setback regulations and that the lot exceeded the maximum amount of lot coverage. Consequently, the project would have to be modified to comply with Village regulations. The Petitioner is now seeking approval of the existing pad, which requires Variation approval because the pad encroaches in the required side and rear yards, and the site has 47.4% lot coverage, which exceeds the 45% lot coverage limitation. GENERAL ZONING COMPLIANCE The Subject Property does not comply the Village's zoning regulations as a small portion of the house encroaches into the front setback slightly and the patio shown on the Petitioner's site plan is located in an easement and encroaches into the required 7.5' side yard. Staff was not able to locate a permit for the patio or the shed also PZ-34-07 Planning & Zoning Commission Meeting August 23,2007 Page 3 shown on the Petitioner's site plan. Before the patio can be classified as a legal nonconforming structure, additional information from the Petitioner is necessary. The following table compares the Petitioner's proposal to the Rl Single Family Residence District's bulk requirements. Rl Single Family District Existing Proposed Minimum Requirements SETBACKS: Front 30' 29.10' No change East: 18.81' - house No change Interior 7.5' 1.67' - parking pad No change West: 9.93' - house No change 4'+ - patio No change Rear 25' - house 38' - house No change 15' - patio 5' - parking pad No change LOT COVERAGE 45% Maximum 43.5% without parking pad 47.4%with pad VARIATION STANDARDS The standards for a Variation are listed in Section 14.203.C.9 of the Village Zoning Ordinance and include seven specific findings that must be made in order to approve a Variation. The following list is a summary of these findings: . A hardship due to the physical surroundings, shape, or topographical conditions of a specific property not generally applicable to other properties in the same zoning district and not created by any person presently having an interest in the property; . Lack of desire to increase financial gain; and . Protection of the public welfare, other property, and neighborhood character. The Petitioner notes in the attached application that the parking pad is necessary to accommodate maneuvering multiple vehicles into the side loading garage and to accommodate storing seasonal recreational equipment. The Petitioner obtained letters of support from the adjacent property owners, which are also included with the submittal. The Zoning Ordinance defines a Variation as a dispensation permitted on individual parcels of property as a method of alleviating unnecessary hardship by allowing a reasonable use of the building, structure or property which, because of unusual or unique circumstances, is denied by this code. The standards for granting a Variation are based on finding that there is a hardship due to physical conditions related to the Subject Property because owners may change and new owners may see the situation differently. As such, the definition section of the Zoning Ordinance clarifies the issue by defining a hardship as a practical difficulty in meeting the requirements of this chapter because of unusual surroundings or condition of the property involved, or by reason of exceptional narrowness, shallowness or shape of a zoning lot, or because of unique topography, underground conditions or other unusual circumstances. In this case, the Subject Property is typical of most Rl District lots, but the manner in which the property was developed, i.e. side loading garage requiring the driveway to be located along the side lot line, may prohibit the Petitioner from meeting the required setbacks for a parking pad. However, it appears the original driveway configuration was elongated to provide vehicles ease in maneuvering in to and out of the 2-car garage. The PZ-34-07 Planning & Zoning Commission Meeting August 23,2007 Page 4 parking pad constructed by the Petitioner does not facilitate enter/exiting the garage but serves primarily as a storage area for vehicles and recreational vehicles. Therefore, the parking pad serves more of a convenience than allowing the Petitioner adequate access to/from the garage and its location does not meet the standards for granting a Variation. In addition, the Subject Property exceeds the 45% lot coverage limit as a result of the construction of the parking pad; the parking pad measures 385 sq. ft. and the site exceeds the Village's lot coverage limitation by 242::!: sq. ft. The site would meet lot coverage limits if the pad was removed. The parking pad is visible from the street and while it may have resolved a previous property maintenance violation [Sec. 14. 2209 requires parking vehicles on an unapproved parking surface; wood chips are not an approved surface], it created non-complying setbacks and excessive lot coverage. As noted in previous lot coverage Variation requests, cumulative additional lot coverage could create adverse impacts for other properties if the storm sewers cannot function properly as a result of additional lot coverage. In addition, the Petitioner has the option of storing the seasonal equipment on the existing patio, which is screened from the street view. RECOMMENDATION The Variation requests to allow a parking pad to encroach into the side and rear yards and to allow 47.4% lot coverage fails to meet the standards for a Variation contained in Section 14.203.C.9 of the Zoning Ordinance as the request is based on convenience and not a hardship. Based on this analysis, Staff recommends that the P&Z deny the following motion: "To approve a Variation to allow a parking pad with a 5-foot rear setback and a 1.67-foot side setback, and to allow 47.4% lot coverage, as shown in the Petitioner's exhibit, for the residence at 1406 Small Lane, Case No. PZ-34-07." The Village Board's decision is final for this case because the amount of the setback Variations exceeds 25% of the Zoning Ordinance requirement. I concur: ~J~ William J. lit H:\PLAN\Planning & Zoning COMM\P&Z 2007\Statr Memo\PZ.34..()7 MEMO (1406 SmaU Lane . V AR - lot coverage and sctbacks).doc VILLAGE OF MOUNT PROSPECT Mount Prosp<:ct COMMUNITY DEVELOPMENT DEPARTMENT - Planning Division 50 S. Emerson Street Mount Prospect, Illinois 60056 . Phone 847.818.5328 FAX 847.818.5329 Variation Request The Planning & Zoning Commission has final administrative authority for all petitions for fence variations and those variation requests that do not exceed twenty-five (25%) of a requirement stipulated by the Village's Zoning Ordinance. PETITION FOR PLANNING & ZONING COMMISSION REVIEW Village Board Final Z cas~mber 0 PZ - - 07 .... E-o Develo~ment N arne/Address ~~ Cl:: = O~ Date of Submission ~~ Z.... ....0 ~'-' l;I;l Hearing Date Q Z .... Commo.~ Addres~es) (Sveet Number, St~eet) / Il.~vfv ce. <;\'v\t~ V?rN~ Tax LD. Number or County Assigned Pin Number(s) Z (] .~- ?J ~.,- 4ll:::tiJ,S 0 .... E-o ~ Legal Description (attach additional sheets if necessary) Cl:: J ~ IErT1-\CA--\6) . 0 ~ Z .... l;I;l E-o .... 1JJ z o ; -< ~ Cl::1 0.... ~ a z u - .- Qo.. Z 0- ;;,< 01 cz:: IJ ::( u -< CQ Name "T8a(\ett:e.. Corporation Telephone (day) (~~ 1- ~qt; "~d.ll Telephone (~) t261-'- ~41- ~C;C(-OClY-O Fax ~Vev1d e \ Street Address/: C"', \ l{O~ t:. ~ lJ\ Au-.- City n t,,\f" \-' (2.AJ ~-; ref \L-. State Zip Code i ,"'C\ ~"')6 VI (; . ...,/. Em~l 1 1 ef\r, -1 tl. V n7l \)i:t..\Olj"" (r~!\.'\ " \ (\1), l\- r Interest in Property "\ "., I'" f/.fl (; \,\i \ VG'l'~ z o ... E-o < ~I =: ~ ~ ~ zo QE' z Q) ;J g- O .... =:i:l.. ~I ~ U < = Name Telephone (day) Sf\~\~ on " ....--- f\f V\/l cfN \ ~ Corporation Telephone (evening) Street Address Fax City State Zip Code Email Developer Name Telephone (day) Address Fax Email Attorney Name Telephone (day) Address Fax Email Surveyor Z Name Telephone (day) 0 I ... E-o en Address Fax <"a ~ a =: 'Vi Email o~ r. 0 Z .... ...i:l.. Q1:: Engineer Z Q) ;J 8. Name Telephone (day) o 0 =:-0 Address Fax ~ > ~ Q) UO <I Email = Architect Name Telephone (day): Address Fax Email Landscape Architect Name Telephone (day): Address Fax Email Mount Prospect Department of Community Development 50 South Emerson Street, Mount Prospect Illinois, 60056 2 Phone 847,818.5328 Fax 847.818.5329 TDD 847.392.6064 Code Section(s) for which Variation(s) is (are) Requested Summary and Justification for Requested Variation(s), Relate Justification to the Attached Standards for Variations sa ~~ H\Co l;f~ Q r..J r.,r;; Or..J ;><:;J C(O ~~ ~~ :;JO r.n- Eo-< U -< Please note that the application will not be accepted until this petition has been fully completed and all required plans and other materials have been satisfactorily submitted to the Planning Division. It is strongly suggested that the petitioner schedule an appointment with the appropriate Village staff so that materials can be reviewed for accuracy and completeness prior to submittal. In consideration of the information contained in this petition as well as all supporting documentation, it is requested that approval be given to this request. The applicant is the owner or authorized representative of the owner of the property. The petitioner and the owner of the property grant employees of the Village of Mount Prospect and their agents permission to enter on the property during reasonable hours for visual inspection ofthe subject property. I hereby affirm that all information provided herein and in all materials submitted in association with this application are true and accurate to the~. of m~ kn~wledge. Applicant ----.!..._ v.--~ Date Print Name-T €c\{\<-\t~ \N et\[\e I If applicant is not property owner: I hereby designate the applicant to act as my agent for the purpose of seeking the Variation(s) described in this application and the associated supporting material. Property Owner Date Print Name Mount Prospect Department of Community Development 50 South Emerson Street, Mount Prospect Illinois, 60056 3 Phone 847.818.5328 Fax 847.818.5329 TDD 847.392.6064 Re: Jenny Wendel, 1406 E. Small Lane, Parking pad I am looking for an approval/variance of a parking pad at the end of my driveway. I have a single car driveway in which you must make a full left turn into the garage. If there are other cars parked in the driveway, I have to move that car out of the driveway in order to get in or out of the garage. If any of our recreational vehicles (snowmobiles, boat) are stored here for any amount of time, there is no way to park them and use the garage. We normally store the boat and snowmobiles elsewhere, but there are times when we bring them home for cleaning or to take them other places for a weekend. I've noticed that many other homes have extended driveways to the side of their homes for extra parking however the single car drive is the side of the house in our case. The most important issue is more of parking the cars on a daily basis than the storage of the boat and snowmobiles, but when they are here it certainly presents a problem. We removed a fence that was at the end of the driveway to extend the area of where we could pull the cars up past the garage door so we could use the garage without having to move a car. Knowing that parking on grass was not the best solution, we wanted to see if the extra area would indeed solve our parking problem. And this worked well for us, however when it rained, the tires would make large ruts in the mud and grass. This made it nearly impossible to park the car and walk without sinking into the mud. Wood chips did not seem to alleviate the situation. We ended up placing pieces of plywood where we could walk without sinking into the ground. Even so, when we pulled the cars out, we dragged mud and grass and chips all down the driveway making a further mess. Winter was much the same, we would get snow, and if it didn't freeze, snow would melt and we'd have the same problem. The neighbors didn't really care for the look of the plywood and mud and mess, as we didn't, so we thought that simply putting in a blacktop area would solve the problem. I spoke with the neighbors on this issue, and they agreed that it would not only solve our problem with mud but would look aesthetically correct to continue the driveway down to the end. We then went ahead and put in the pad. After finding the pad was in violation for either the setback allowance and/or lot coverage, we were advised we could go back to woodchips, but truthfully, after having the cleanliness and accessibility the blacktop made for parking cars, the thought again of having to deal with the dirt and mud and mess was not very appealing. I am asking for a variance in this case to keep the pad. I have attached photos showing how the garage is laid out, and how we have to maneuver the cars to get out of the garage when there are other vehicles in the driveway. I know we can always jockey around the cars, as I understand many people have to do, but with cars coming in either late at night and leaving early for work in the morning, it is difficult to get them in the right order for leaving. And with the neighbors' windows right beside the driveway, they don't appreciate the noise of moving vehicles at those times. One of the vehicles is a diesel truck (pretty loud when it's running) and if we have to jockey it and other cars around either late at night or early in the morning, we disturb the neighbors. Also the weight of that truck, along with duel axles, literally digs into dirt creating deep ruts. The neighbor closest to the driveway, 1408 Small, approves completely of this pad. He is happier not having to look at ruts and mud and plywood and dirt running down the driveway. As I mentioned earlier, I spoke with them before the pad was put in asking for his input on the problem and if there was anything they would like me to do to make it more pleasing to their eyes since it is along their yard. They told me that the pad would be their choice as well. The neighbors behind us do not see anything due to the fence so they did not really care either way. The folks behind and to our east also have made comments that the pad seems like it is part of the driveway and looks much neater and cleaner. There has been no instance of a water drainage problem into any of the neighbors' yards due to this pad. The pad was put in to specifications and we can do a core test if needed to prove that. The believe photos show that the pad at the end of the driveway looks neat and clean and not out of place for the neighborhood. From the street, you barely notice that the pad is there. This has become a difficult situation with the one car drive, two-car garage. I'm trying to accommodate a minimum of three cars that are here everyday and a fourth that is here several days a week, as well as storing the recreational items a few times a year. Two cars normally park in the garage, the truck parks on the pad every day and the fourth vehicle, when here, parks next to the truck. I understand that I may be, with this pad, over the percent of lot coverage for this area, as well as a set back overage, but due to the fact that the pad is already here, I would like to apply for a variance on this issue. This parking area has tremendously helped our parking difficulties and, I believe, enhances the property so vehicles can park neatly and evenly, not looking overcrowded or congested, alleviates the obstacles of using our garage when all vehicles are home, and avoids disturbing the neighbors with vehicle noises created when having to juggle the cars late at night or early in the morning. Jenny Wendel 1406 E. Small Lane 847-296-8277 home 847-809-0940 cell Village Of Mount Prospect Re: Parking Pad I have no problem with the parking pad that was installed at 1406 Small Lane. We like the look of it better than when they were driving over the dirt. They now have more room for the cars and don't have to move the cars around so much in the morning and evening when everyone is sleeping. They talked about doing the driveway and we had no problem with it because of the reduction in car jockeying. It's a much better look than all the mud that was back there when it rained or snowed, and we have no problem with water drainage in the back of our yard from the extension. We would like to see the extension stay because of the mess that was left from the dirt that was there. C;;~q~6~ Marian and Richard Eisele 1407 E Lowden Ln July 23, 2007 To Whom It May Concern, This letter is in reference to the driveway located at 1406 E. Small Lane, Mt. Prospect. In the past, the residents at this address had a parking spot located beyond the garage on their driveway. This was mostly weed and grass along with a lot of mud. In inclimate weather, there was a constant runoff of mud which, in some cases, reached the street. This was unpleasant to see. The weeds slowly took over the grass and became unpleasant as well, especially when we entertain in our back yard. There was also the noise associated with the constant shuffling of cars into the garage as well as on the driveway. In the early morning hours as well as evening hours, this noise could be heard from several rooms in our home. The improvements made to Ms. Wendels' driveway is, in no way, a dispute with us. In fact, the blacktop that now covers what was a weed bed looks much cleaner both from my yard as well as the street. We also appreciate the lower noise level associated with this improvement.. It seems much easier to move one car in or out with the additional parking pad. There is no problem with the parking pad draining into our yard and we would really not be pleased to see the weed bed return with the water and the dirt that was once there. ,_:.incerelY,~~. ' . ,f). - _ ! '\, _ ,J~ 62L~ ..-:1 // A d _ - /' _ - (.. ./IV'~, '- 'Jo Ann & Robert Dawson 1408 E. Small Ln. Mt. Prospect ~,,::,~"~: w;~L~ ~;REC"- ^",G'.'~",: q:;S~t,:7 iLl"J(':!j t0C: 5& v/~'.., ~".'\" V- ~:.._~-~ .,.~ ,~,,--.x , -- '-,\.:' ~..; ,= '3 't ,,'')u'.:h " :'0;";' ~~I ) ,,-. '::..c:. evqJ~trrq,:/ L. 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PZ-34-07 Hearing Date: September 27,2007 PROPERTY ADDRESS: 1406 Small Lane PETITIONER: Jeanette Wendel PUBLICATION DATE: August 8, 2007 PIN NUMBERS: 03-35-411-015-0000 REQUEST: Variation (setbacks and lot coverage) MEMBERS PRESENT: Richard Rogers, Chairperson Joseph Donnelly Leo Floros MarIys Haaland Ronald Roberts Keith Youngquist MEMBERS ABSENT: Mary McCabe STAFF MEMBERS PRESENT: Judith Connolly, AICP, Senior Planner Ellen Divita, Deputy Director of Community Development INTERESTED PARTIES: Jeanette Wendel, Dan Gajewski Chairman Richard Rogers called the meeting to order at 7:30 p.m. Leo Floros made a motion to approve the minutes of the July 26, 2007 meeting and Joe Donnelly seconded the motion. The minutes were approved 3-0, with Marlys Haaland, Ronald Roberts, and Keith Youngquist abstaining. After hearing five previous cases, Chairman Rogers introduced Case PZ-34-07, a request for Variation at 1406 Small Lane at 10:34 p.m. Judy Connolly, Senior Planner, stated that the Subject Property is located on the north side of Small Lane, between Stratton and Stevenson Lanes, and contains a single-family residence with related improvements. The Subject Property is zoned Rl Single Family Residence and is bordered by the Rl District to the north, east, and west and the CR Conservation Recreation District to the south. The Subject Property has a typical rectangular shape and complies with the Village's minimum lot size regulation. Ms. Connolly said the Petitioner extended the existing driveway and constructed a parking pad without the benefit of a permit. Information from the Building Division indicates the parking pad was noticed during an inspection for another project at the Subject Property. The Petitioner was then instructed to obtain a permit for the parking pad. She stated that a permit review was conducted in the fall of 2006, and the Petitioner was notified that the parking pad did not comply with the Village's setback regulations and that the lot exceeded the maximum amount of lot coverage. Consequently, the project would have to be modified to comply with Village regulations. The Petitioner is now seeking approval of the existing pad, which requires Variation approval because the pad encroaches in the required side and rear yards, and the site has 47.4% lot coverage, which exceeds the 45% lot coverage limitation. Ms. Connolly stated that the Subject Property does not comply the Village's zoning regulations as a small portion of the house encroaches into the front setback slightly and the patio shown on the Petitioner's site plan is located in an easement and encroaches into the required 7.5-foot side yard. Staff was not able to locate a permit for the Richard Rogers, Chairman Planning & Zoning Commission Meeting September 27,2007 PZ-34-07 Page 2 patio or the shed also shown on the Petitioner's site plan. Before the patio can be classified as a legal nonconforming structure, additional information from the Petitioner is necessary. Ms. Connolly showed a table comparing the Petitioner's proposal to the Rl Single Family Residence District's bulk requirements. Ms. Connolly said the standards for a Variation are listed in Section 14.203.C.9 of the Village Zoning Ordinance and include seven specific findings that must be made in order to approve a Variation. She summarized these findings as: . A hardship due to the physical surroundings, shape, or topographical conditions of a specific property not generally applicable to other properties in the same zoning district and not created by any person presently having an interest in the property; . Lack of desire to increase financial gain; and . Protection of the public welfare, other property, and neighborhood character. Ms. Connolly stated that the Petitioner notes in their application that the parking pad is necessary to accommodate maneuvering multiple vehicles into the side loading garage and to accommodate storing seasonal recreational equipment. The Petitioner obtained letters of support from the adjacent property owners, which were included with the submittal. Ms. Connolly said the Zoning Ordinance defines a Variation as a dispensation permitted on individual parcels of property as a method of alleviating unnecessary hardship by allowing a reasonable use of the building, structure or property which, because of unusual or unique circumstances, is denied by this code. She stated that the standards for granting a Variation are based on finding that there is a hardship due to physical conditions related to the Subject Property because owners may change and new owners may see the situation differently. As such, the definition section of the Zoning Ordinance clarifies the issue by defining a hardship as a practical difficulty in meeting the requirements of this chapter because of unusual surroundings or condition of the property involved, or by reason of exceptional narrowness, shallowness or shape of a zoning lot, or because of unique topography, underground conditions or other unusual circumstances. Ms. Connolly said in this case, the Subject Property is typical of most RI District lots, but the manner in which the property was developed, i.e. side loading garage requiring the driveway to be located along the side lot line, may prohibit the Petitioner from meeting the required setbacks for a parking pad. However, it appears the original driveway configuration was elongated to provide vehicles ease in maneuvering in to and out of the 2-car garage. She stated that the parking pad constructed by the Petitioner does not facilitate entering or exiting the garage but serves primarily as a storage area for vehicles and recreational vehicles. Therefore, the parking pad serves more of a convenience than allowing the Petitioner adequate access to/from the garage and its location does not meet the standards for granting a Variation. Ms. Connolly stated in addition, that the Subject Property exceeds the 45% lot coverage limit as a result of the construction of the parking pad; the parking pad measures 385 square feet and the site exceeds the Village's lot coverage limitation by 242::1:: square feet. The site would meet lot coverage limits if the pad was removed. Ms. Connolly said the parking pad is visible from the street and while it may have resolved a previous property maintenance violation, it created non-complying setbacks and excessive lot coverage. As noted in previous lot coverage Variation requests, cumulative additional lot coverage could create adverse impacts for other properties if the storm sewers cannot function properly as a result of additional lot coverage. In addition, the Petitioner has the option of storing the seasonal equipment on the existing patio, which is screened from the street view. Ms. Connolly stated that the Variation requests to allow a parking pad to encroach into the side and rear yards and to allow 47.4% lot coverage fails to meet the standards for a Variation contained in Section 14.203.C.9 of the Zoning Ordinance as the request is based on convenience and not a hardship. Based on this analysis, Staff recommends that the P&Z deny the following motion: Richard Rogers, Chairman Planning & Zoning Commission Meeting September 27, 2007 PZ-34-07 Page 3 "To approve a Variation to allow a parking pad with a 5-foot rear setback and a 1.67-foot side setback, and to allow 47.4% lot coverage, as shown in the Petitioner's exhibit, for the residence at 1406 Small Lane, Case Number PZ-34-07." The Village Board's decision is final for this case because the amount of the setback Variations exceeds 25% of the Zoning Ordinance requirement. Chairman Rogers asked for questions for Staff. Keith Youngquist asked how this parking pad was discovered. Ms. Connolly said an inspector was on-site for a kitchen remodel inspection. Chairman Rogers swore in Jenny Wendel and Dan Gajewski of 1406 Small Lane, Mount Prospect, Illinois. Ms. Wendel said her driveway is unique to her neighborhood as most of the surrounding homes have two-car garages with wider driveways. She said that the parking pad was put in to create a turn-around area for vehicles parked in the garage. Until the parking pad was paved, they had been parking on the grass and wood chips. Ms. Wendel stated they have several letters from neighbors in support of their parking pad. She showed several pictures of neighboring properties; stating that her parking pad allows for more aesthetic storage of vehicles. Chairman Rogers said he is very concerned with the property exceeding lot coverage. He said the concern is not only for water drainage in the immediate neighborhood, but the entire Village. Allowances cannot be allowed because then everyone would think that these minor overages are OK. There was discussion concerning the location of the existing shed and that the Village does not have a record of a permit for this structure. Ms. Wendel said the shed on the property has been there for 13-15 years. She stated that her ex-husband recalls that the Village indicated to them that as long as they received clearance from the utility company, there was no permit required from the Village for the existing shed. Ms. Connolly said that she cannot speak to permit regulations from 13-15 years ago, but current code prohibits locating a shed in an easement. Keith Youngquist asked if the lot coverage includes the shed. Ms. Connolly confirmed that calculation does include the shed. Mr. Youngquist reviewed calculations and made some suggestions for alternative configurations. There was general discussion regarding maneuvering vehicles in and out of the property. Mr. Youngquist stated that his major concern is the lot coverage. Chairman Rogers also stated that the parking pad is located into the easement. Joseph Donnelly said he can appreciate the difficulty in maneuvering the vehicles on their property, but the lot coverage is a major concern. Ms. Wendel asked if her option at this point is to remove something else from the property. Chairman Rogers stated that she will need to reduce lot coverage and get the pad out of the easement. There was general discussion regarding what structures could be removed to comply with the maximum amount of allowable lot coverage. Chairman Rogers reiterated that aside from removing structures to reduce lot coverage, they also need to remove the pad out of the easement. Chairman Rogers said a minimum of 3 feet will need to come off the back of the parking pad to get out of the easement and an additional 200+ feet of lot coverage will need to be removed to get under the lot coverage (for a total of 240+ feet). He suggested the Petitioner work with Staff to get the exact number of square footage that needs to be removed. Chairman Rogers asked if Ms. Wendel is willing to work on reducing the lot coverage by removing impervious surfaces from her lot. Ms. Wendel said she is willing to look at her options. Ms. Connolly stated that the even with the reduced lot coverage, a Variation would still be required for the setbacks. There was additional discussion regarding the Variation. The Commission suggested that this Case be continued to the next meeting to give the Petitioner time to work on reducing the lot coverage. Richard Rogers, Chairman Planning & Zoning Commission Meeting September 27,2007 PZ-34-07 Page 4 Joseph Donnelly made a motion to continue Case Number PZ-34-07 to the October 25,2007 Planning and Zoning Commission meeting. Leo Floros seconded the motion. UPON ROLL CALL: AYES: Donnelly, Floros, Haaland, Richards, Youngquist, Rogers NAYS: None Motion was approved 6-0. Joseph Donnelly made a motion to adjourn 11 :17 p.m., seconded by Ronald Roberts. The motion was approved by a voice vote and the meeting was adjourned. , ommunity Development . e Assistant H:\PLAN\Planning & Zoning COMM\P&Z 2007\Minutes\PZ-34-07 1406 Small Lane-lot coverage.doc jc 11/15/07 mla 11/15/07 ORDINANCE NO. AN ORDINANCE GRANTING VARIATIONS FOR PROPERTY LOCATED AT 1406 SMALL LANE WHEREAS, the Petitioners, Jeanette Wendell, have filed a petition for Variations with respect to property located at 1406 Small Lane ("Property') and legally described as follows: Lot 117 in the First Addition to Bluett's Fairview Gardens, being a Subdivision of part of the West % of the East % of the Southeast Y4 and part of the East % of the West % of the southeast Y4 of Section 35, Township 42 North, Range 11 East of the Third Principal Meridian, in Cook County, Illinois. Property Index Numbers: 03-35-411-015-0000 and WHEREAS, the Petitioner seeks Variations to allow a parking pad to encroach into the required15' rear yard setback and the 7.5-foot side yard setback allowed by the Mount Prospect Village Code; as shown on Exhibit "An; and WHEREAS, a Public Hearing was held on the request for Variations being the subject of PZ-34-07 before the Planning and Zoning Commission of the Village of Mount Prospect on the 2ih of September and the 25th of October, 2007, pursuant to proper legal notice having been published in the Mount Prospect Journal on the 8th of August, 2007; and WHEREAS, the Planning and Zoning Commission has submitted its findings and recommendation to the President and Board of Trustees in support of the requests, subject to the site complying with the 45% lot coverage limitation, being the subject of PZ- 34-07; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect have given consideration to the requests herein and have determined that the same meets the standards of the Village and that the granting of the proposed Variations would be in the best interest of the Village. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: The recitals set forth hereinabove are incorporated as findings of fact by the President and Board of Trustees of the Village of Mount Prospect. r_ 1406 Small Lane Page 2 SECTION TWO: The President and Board of Trustees of the Village of Mount Prospect do hereby grant Variations, as provided in Section 14.203.C.7 of the Village Code to allow a parking pad with 13.5-foot rear yard setback, 1.5-foot side yard setback as shown on the attached Exhibit "A". SECTION THREE: The Village Clerk is hereby authorized and directed to record a certified copy of this Ordinance with the Recorder of Deeds of Cook County. SECTION FOUR: 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 November, 2007. Richard M. Lohrstorfer Mayor Pro T em ATTEST: M. Lisa Angell Village Clerk H:\CLKO\files\WIN\ORDINANC\Variationandlotcoverage1406smalllanenov2007 .doc Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois DATE: NOVEMBER 13, 2007 SUBJECT: WATER AND SEWER RATE INCREASE TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: DIRECTOR OF FINANCE PURPOSE: To present for the Board's consideration an ordinance increasing the Village's water and sewer rates. BACKGROUND: Since 1990 the Village has followed the practice of approving moderate annual increases in water and sewer rates, as opposed to implementing large increases periodically. The 2008 Budget included an anticipated 5% increase in water and sewer rates. The Village completed a water rate study in August 2005 which established a proposed schedule for increasing the combined water and sewer rate by 5% each January 1 until 2009 when a follow-up rate study will be performed. DISCUSSION: The following table illustrates the recommended rates as reflected in the proposed ordinance. Current Rate Prop()s~~R~tEt Percent C Inside Villaae Per 1,000 Gallons Per 1 ,000 Gallons Chanae Water $4.29 $4.50 4.9% Sewer $1.39 $1 .46 5.1% Combined $5.68 $5.96 5.0% Current Rate Proposed Rate I Percent Outside VlIIaae Per 1,000 Gallons Per 1,000 Gallons <.< Chanae Water $8.58 $ 9.00 4.9% Sewer $1.39 $ 1.46 5.1% Combined $9.97 $1 0.46 5.0% For sewer users not connected to the Village's water system, whether located inside or outside the Village. the monthly charge per dwelling unit would be $3.89, an increase of 5.0% over the current rate of $3.71. t\ Water and Sewer Rate Increase November 13, 2007 Page 2 No increase is proposed for the $5.00 per month sewer construction fee. If a Mount Prospect household uses 15,000 gallons of water over a two-month period, their bimonthly water and sewer usage fee would be $99.40, an increase of $4.20. No increase is being proposed for the monthly availability charge assessed customers outside of Special Service Area No.5. For most customers, those with a 5/8" water line, the charge will remain at $10. RECOMMENDATION: It is recommended the Village Board approve the attached ordinance increasing water and sewer rates effective for bills rendered on or after January 1, 2008. da.l~tP~ a.- DAVID O. ERB DIRECTOR OF FINANCE DOEI 1:\Water & Sewer\Board Memo - November 2007.doc ORDINANCE NO. AN ORDINANCE TO AMEND WATER AND SEWER RATES SET FORTH IN APPENDIX A, DIVISION II OF THE VILLAGE CODE Passed and approved by the President and Board of Trustees the _ day of November, 2007. Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the day of November, 2007. ORDINANCE NO. AN ORDINANCE TO AMEND WATER AND SEWER RATES SET FORTH IN APPENDIX A, DMSION II OF THE VILLAGE CODE Passed and approved by the President and Board of Trustees the _ day of November, 2007. Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the day of November, 2007. ORDINANCE NO. AN ORDINANCE TO AMEND WATER AND SEWER RATES SET FORm IN APPENDIX A, DMSION n OF THE VILLAGE CODE NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: That Section 22.504.2 entitled "Water Rates" of Appendix A, Division II of the Village Code, as amended, is hereby further amended in its entirety; so that hereinafter said Section 22.504.2 of Appendix A, Division II shall be and read as follows: " Sec.22.504.2 WATER RATES: A. All village users within the village, having a direct or indirect connection with village water mains or pipes: $4.50 per 1,000 gallons of water consumed or portion thereof. All village users outside the corporate limits of the village having a direct or indirect connection with village water mains or pipes: $9.00 per 1,000 gallons of water consumed or portion thereof. All village users located outside the boundaries of Special Service Area Number 5 shall pay an additional monthly availability charge based upon the size of the water meter as follows: 5/8 inch meter % inch meter 1 inch meter 11'2 inch meter 2 inch meter 3 inch meter 4 inch meter 6 inch meter 8 inch meter $ 10.00 $ 15.00 $ 30.00 $ 50.00 $ 90.00 $150.00 $250.00 $475.00 $990.00 B. Hook-up charge for water furnished by the truckload: $10.00." SECTION TWO: That Section 22.504.3 entitled "Sewer Rates" of Appendix A, Division II of the Village Code, as amended, is hereby further amended in its entirety; so that hereinafter said Section 22.504.3 of Appendix A, Division II shall be and read as follows: " Sec. 22.504.3 SEWER RATES: C. All village sewer users within the corporate limits of the village having a direct or indirect connection with the village sewer and water mains or pipes: $1.46 per 1,000 gallons of water consumed or portion thereof. All village sewer users within the corporate limits of the village having a direct or indirect connection with the village's sewer mains or pipes and not with the village water mains or pipes: $3.89 per month per dwelling unit. All village sewer users outside the corporate limits of the village having a direct or indirect connection with the village's water and sewer mains or pipes: $1.46 per 1,000 gallons of water consumed or portion thereof. All village sewer users outside the corporate limits of the village having a direct or indirect connection with the village's sewer mains or pipes, but not with village water mains or pipes: $3.89 per month per dwelling unit." SECTION THREE: That the fees set forth in this Ordinance shall be applied to all water and sewer bills rendered on or after January 1,2008. 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 ,2007. Richard M. Lohrstorfer Mayor Pro Tern ATTEST: M. Lisa Angell Village Clerk H:\CLKO\fiIes\WIN\ORDINANC\W S Rate Increase Ordinance. January 2008.doc Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE ~.~~ "1J.Dlorl TO: DATE: NOVEMBER 15, 2007 SUBJECT: 2007 BUDGET AMENDMENT NO.2 PURPOSE: Present a recommendation that the annual budget be amended for fiscal year begin January 1,2007 and ending December 31,2007. BACKGROUND: Ordinance 5599, adopted December 19, 2006, established the annual budget for the year ending December 31, 2007. Ordinance 5622 adopted on April 18, 2007 provided for amendment #1 of the 2007 budget. DISCUSSION: Each year the Village prepares two separate amendments to the current year's budget. Amendment #1, prepared in early Spring, amends the budget for carry-over items from the prior year's budget. These are typically construction or other contractual service type projects thatare started in the previous year but not completed. Amendment #2, prepared in November or December, amends the budget to account for material variations in revenues and expenditures. Many times these are the result of fluctuations in the economy affecting revenues (either positively or negatively) or extraordinary or unanticipated charges for expenditures that occurred during the year. A proposed ordinance amending the 2007 annual budget is attached for the Board's consideration. In total, we are increasing our revenue projections by $4,013,529 and increasing the budget for expenditures by $2,174,759. Amendments to the budget impacting revenues are made up of various adjustments to tax, fee and other intergovernmental revenue accounts, grant receipts and other reimbursements. Two significant revenue adjustments occurred in the Police and Fire Pension Funds as the Market Gain on Equities was increased $1.4 million and $1.7 million respectively. Overall, General Fund revenues were increased $734,000. There are three significant budget adjustment related to expenditures. The first is related to the storm event on August 23, 2007. The General Fund expense budget was increased $873,500 for anticipated expenditures for flood control and storm clean-up. Second, a bond principal account in the Downtown Redevelopment Fund was increased $350,000 as this expenditure was not 1: 2007 Budget Amendment No.2 November 15,2007 Page 2 picked up in the original 2007 budget. This is not a new debt service payment, but part of the installment note that was issued in 2004 for the purchase of the Bank One parking lot. The final expense adjustment is for Workers' Compensation Claims. $500,000 was originally budgeted in the Risk Management Fund for 2007. We know expect the account to come in at $850,000, an increase of $350,000 over budget. RECOMMENDATION: It is recommended the Village Board adopt the proposed budget amendment #2 for the 2007 annual budget. ~tP. V0 DAVID O. ERB DIRECTOR OF FINANCE Copy: Finance Commission Department Directors DOE! 1:\Budget 2007\Amendments\Board Memo Amendment #2 - November 2007.doc ORDINANCE NO. AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR COMMENCING JANUARY 1,2007 AND ENDING DECEMBER 31, 2007 PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES the _ day of ,2007 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois the _ day of , 2007. ORDINANCE NO. AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2007 AND ENDING DECEMBER 31, 2007 WHEREAS, the President and Board of Trustees of the Village of Mount Prospect have passed and approved Ordinance No. 2342 which sets the finances of the Village under the "Budget Officer System"; and WHEREAS, pursuant to the aforesaid Ordinance and the Statutes of the State of Illinois an annual budget for the fiscal year commencing January 1, 2007 and ending December 31, 2007 was adopted through the passage of Ordinance No. 5599 approved by the Corporate Authorities of the Village of Mount Prospect on December 19,2006; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect have passed and approved Ordinance No. 5622 on April 18, 2007, amending the annual budget for the fiscal year commencing January 1, 2007 and ending December 31,2007; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect have further reviewed certain additions and changes to the aforesaid budget for the fiscal year beginning January 1,2007 and ending December 31,2007; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect believe the changes, as specified on the attached January 1, 2007 through December 31, 2007 Budget Amendment No.2 to be in the best interest of the Village of Mount Prospect; and WHEREAS, the Village has now revised the revenue projections or has reserves in each of the Funds in which the budget is being increased adequate in amount to cover the budget changes reflected in Budget Amendment No.2, attached hereto. NOW THEREFORE BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: That the fiscal year budget for January 1, 2007 through December 31, 2007 for the Village of Mount Prospect is hereby amended, as detailed on Budget Amendment No.2 attached hereto. VILLAGE OF MOUNT PROSPECT Budget Amendment No.2 Fiscal Year January 1, 2007 through December 31, 2007 Revenues Original Amended Revenue Increase Revenue Fund/Program/Classification Account # Account Description Estimate (Decrease) Estimate General Fund (001) Other Taxes 410150 Home Rule Sales Tax 1,360,000 (60,000) 1,300,000 Other Taxes 414000 Real Estate Transfer Tax 1,331,000 (531,000) 800,000 Other Taxes 417100 Telecommunications Tax 2,800,000 (300,000) 2,500,000 Licenses, Permits & Fees 420100 Vehicle Licenses 1,385,000 20,000 1,405,000 Licenses, Permits & Fees 421100 Building Permits 400,000 20,000 420,000 Licenses, Permits & Fees 421600 Reinspection Fees 25,000 25,000 50,000 Licenses, Permits & Fees 421900 Stormwater Detention Fee 0 80,000 80,000 Licenses, Permits & Fees 422500 Nuisance Abatement Fee 0 36,000 36,000 Licenses, Permits & Fees 423000 Public Improvements Insp. 40,000 50,000 90,000 Licenses, Permits& Fees 423000 LandlordlTenant Fees 170,000 60,000 230,000 Licenses, Permits & Fees 427300 Cable TV Franchise Fees 375,000 92,500 467,500 Intergovernmental Revenues 430000 State Sales Tax 8,511,000 339,000 8,850,000 Intergovemmental Revenues 430100 Income Tax 4,524,000 376,000 4,900,000 Intergovernmental Revenues 430400 State Use Tax 710,000 40,500 750,500 Intergovernmental Revenues 435900 IL Housing Authority Grant 0 10,500 10,500 Intergovernmental Revenues 435900 SHAP Grant 0 19,000 19,000 Intergovernmental Revenues 435900 Other Grants 2,500 43,500 46,000 Charges for Service 441200 Ambulance Billing Fees 783,000 117,000 900,000 Fines & Forfeits 450100 Parking Fines 260,000 70,000 330,000 Fines & Forfeits 450220 Code Enforcement 2,000 18,000 20,000 Fines & Forfeits 450800 Forfeited Escrow Funds 50,000 75,000 125,000 Investment Income 460100 Interest Income 230,000 120,000 350,000 Investment Income 460200 Interest Income - Escrow 52,000 28,000 80,000 Investment Income 460850 LaSalle Interest 70,000 (55,000) 15,000 Investment Income 464001 IMET Interest 12,000 30,000 42,000 Reimbursements 470400 Sidewalk - Shared Cost 20,000 15,000 35,000 Reimbursements 470500 Tree Replacement 40,000 (25,000) 15,000 Reimbursements 470800 Property Damage 25,000 20,000 45,000 23,177,500 734,000 23.911,500 All other General Fund Accounts 15,242,723 0 15,242.723 Total General Fund 38,420,223 734,000 39,154.223 Motor Fuel Tax Fund (050) Intergovernmental Revenue 432000 State MFT 1,587,500 76,500 1,664,000 Investment Income 460100 Interest Income 34,500 25,500 60,000 1,622,000 102,000 1,724,000 All other Motor Fuel Tax Fund accounts 6,750 0 6,750 Total Motor Fuel Tax Fund 1,628,750 102,000 1,730,750 Community Development Block Grant Fund (070) Intergovernmental Revenue 433000 CDBG 489,809 (389,809) 100,000 Other Revenue 483000 Program Income 60,000 60,000 120,000 549,809 (329,809) 220,000 All other Foreign Fire Tax Fund accounts 0 0 0 Total Foreign Fire Tax Fund 549,809 (329,809) 220,000 VILLAGE OF MOUNT PROSPECT Budget Amendment No.2 Fiscal Year January 1, 2007 through December 31,2007 Revenues Original Amended Revenue Increase Revenue Fund/Program/Classification Account # Account Description Estimate (Decrease) Estimate Asset Seizure Fund (080) Fines and Forfeits 450450 Seized Assets 1,000 14,000 15,000 1,000 14,000 15,000 All other Asset Seizure Fund accounts 1,600 0 1,600 Total Asset Seizure Fund 2,600 14,000 16,600 Capital Improvement Fund (510) Intergovernmental Revenue 434305 FEMA Grant 164,800 0 164,800 Investment Income 460100 Interest Income 8,500 31,500 40,000 173,300 31,500 204,800 All other Capital Improvement Fund accounts 89,500 0 89,500 Total Capital Improvement Fund 262,800 31,500 294,300 Downtown Redevelopment Construction (550) Investment Income 460100 Interest Income 52,500 35,000 87,500 52,500 35,000 87,500 All other Downtown Redevelopment Fund accounts 1,167,552 0 1,167,552 Total Downtown Redevelopment Fund 1,220,052 35,000 1,255,052 Street Improvement Construction Fund (560) Investment Income 460100 Interest Income 22,400 58,000 80,400 22,400 58,000 80,400 All other Street Improvement Construction Fund accounts 1,688,700 0 1,688,700 Total Street Improvement Construction Fund 1,711,100 58,000 1,769,100 Water & Sewer Fund (610) Investment Income 460100 Interest Income 145,000 45,000 190,000 Other Revenue 480900 Misc. Income 15,000 15,000 30,000 160,000 60,000 220,000 All other Water & Sewer Fund accounts 10,989,100 0 10,989,100 Total Water & Sewer Fund 11,149,100 60,000 11,209,100 Vehicle Replacement Fund (670) Investment Income 460100 Interest Income 184,000 146,000 330,000 Other Financing Sources 494652 Gain on Sale of Assets 60,000 13,000 73,000 244,000 159,000 403,000 All other Vehicle Replacement Fund accounts 849,626 0 849,626 Total Vehicle Replacement Fund 1,093,626 159,000 1,252,626 2 VILLAGE OF MOUNT PROSPECT Budget Amendment No.2 Fiscal Year January 1, 2007 through December 31,2007 Revenues Original Amended Revenue Increase Revenue Fund/Program/Classification Account # Account Description Estimate (Decrease) Estimate Risk Management Fund (690) Investment Income 460100 Interest Income 92,000 25,000 117 ,000 Reimbursements 475100 Insurance Reimbursements 75,000 (40,000) 35,000 Other Revenue 487400 Retiree Contributions 535,162 64,838 600,000 702,162 49,838 752,000 All other Risk Management Fund accounts 5,771,777 0 5,771,777 Total Risk Management Fund 6.473,939 49,838 6,523,777 Police Pension (710) Investment Income 411100 Market Gain on Equities 748,000 1,400,000 2,148,000 748,000 1,400,000 2,148,000 All other Police Pension Fund accounts 3,377,500 0 3,377,500 Total Police Pension Fund 4,125,500 1,400,000 5.525,500 Fire Pension (720) Investment Income 411100 Market Gain on Equities 644,000 1,700,000 2,344,000 644,000 1,700.000 2,344,000 All other Fire Pension Fund Accounts 3.449,290 0 3,449,290 Total Fire Pension Fund 4,093.290 1,700.000 5,793,290 Total Estimated Revenues Funds being changed 70,730,789 4,013,529 74,744.318 All other Village Budget accounts 10,233,146 0 10,233,146 Total Estimated Revenues After Changes 80,963,935 4,013.529 84,977.464 VILLAGE OF MOUNT PROSPECT Budget Amendment No.2 Fiscal Year January 1,2007 through December 31, 2007 Expenditures Current Amended Budget Increase Budget Fund/Program/Classification Account # Account Description Amount (Decrease) Amount General Fund (001) VMO . Administration Personal Services 0011101-500200 Seasonal Eeamings 13.832 5,168 19,000 Personal Services -0011101-500750 Retiree Sick Incentive 15,000 2,000 17,000 VMO - Personnel Services Employee Benefits 0011103-510350 Other Retirement Benefits 0 15,000 15,000 Contractual Services 0011103-540180 Personnel Recruitment 22,000 2,500 24,500 VMO -Information Technology Personal Services 0011104-500700 Vacation/Personal Incentive 1,000 3,310 4,310 VMO - Public Information Contractual Services 0011105-540110 Other Professional Services 4,000 20,000 24,000 Commodities & Supplies 0011105-570090 Paper & Supplies 1,000 500 1,500 TV Services. Cable TV Utilities 0011202-550300 Telephone Service 1,600 900 2,500 Village Clerk's Office Personal Services 0011402-500700 Vacation/Personal Incentive 1,000 4,050 5,050 Finance Department - Administration Contractual Services 0011701-540040 Ambulance Collection Fees 55,000 5,000 60,000 Contractual Services 0011701-540110 Other Professional Services 1,500 6,000 7,500 Contractual Services 0011701-540615 Equipment Maintenance 2,600 4,000 6,600 Utilities 0011701-550300 Telephone Service 5,150 600 5,750 Utilities 0011701-550400 Cellular Phone Service 0 750 750 Community Development - Administration Personal Services 0012101-500650 Sick Leave Incentive 2,000 500 2,500 Community Development - Planning & Zoning Contractual Services 0012102-540282 First Time Homeowners 0 20,000 20,000 Community Development. Building Inspections Personal Services 0012105-500300 Overtime 2,727 8,773 11,500 Utilities 0012105-550400 Cellular Phone Service 3,682 3,318 7,000 Human Services - Administration Personal Services 0013101-500650 Sick Leave Incentive 0 3,775 3,775 Personal Services 0013101-500700 Vacation/Personal Incentive 1,000 3,800 4,800 Commodities & Supplies 0013101-570080 Other Supplies 1,500 2,500 4,000 Office Equipment 0013101-650000 Office Equipment 1,000 4,000 5,000 Office Equipment 0013101-650003 Computer Equipment - New 2,500 6,500 9,000 Human Services - Nursing/Health Contractual Services 0013103-540335 Home Delivered Meals 24,200 20,000 44,200 Commodities & Supplies 0013103-570080 Other Supplies 850 740 1,590 Police Department - Administration Personal Services 0014101-500700 Vacation/Personal I ncentive 70,000 19,000 89,000 Fire Department - Administration Contractual Services 0014201-540170 Employement Testing 13,300 4,200 17,500 Fire Department - Communications Utilities 0014205-550400 Cellular Phone Service 7,200 6,800 14,000 Fire Department - Emergency Preparedness Radio Equipment 0014207-570120 Radio Equipment 4,450 2,200 6,650 Public Works - Administration Personal Services 0015001-500650 Sick Leave Incentive 2,500 1,000 3,500 Personal Services 0015001-500700 Vacation/Personal Incentive 8,000 2,000 10,000 Public Works - Flood Control Personal Services 0015112-500300 Overtime 0 35,000 35,000 Employee Benefits 0015112-510000 Social Security 0 2,100 2,100 Employee Benefits 0015112-510100 Medicare 0 500 500 Employee Benefits 0015112-510200 IMRF 0 3,100 3,100 Contractual Services 0015112-540225 Other Services 0 82,000 82,000 Commodities & Supplies 0015112-570080 Other Supplies 0 1,800 1,800 4 VILLAGE OF MOUNT PROSPECT Budget Amendment No.2 Fiscal Year January 1,2007 through December 31,2007 Expenditures Current Amended Budget Increase Budget Fund/Program/Classification Account # Account Description Amount (Decrease) Amount Public Works - Storm Event Personal Services 0015113-500100 Part-Time Earnings 0 600 600 Personal Services 0015113-500200 Seasonal Earnings 0 400 400 Personal Services 0015113-500300 Overtime 0 200,000 200,000 Employee Benefits 0015113-510000 Social Security 0 12,000 12,000 Employee Benefits 0015113-510100 Medicare 0 4,000 4,000 Employee Benefits 0015113-510200 IMRF 0 16,000 16,000 Contractual Services 0015113-540225 Other Services 0 500,000 500,000 Commodities & Supplies 0015113-570065 Other Equipment 0 4,000 4,000 Commodities & Supplies 0015113-570080 Other Supplies 0 10,000 10,000 Commodities & Supplies 0015113-570310 Emergency Equipment 0 2,000 2,000 Public Works - Forestry Contractual Services 0015203-540725 Tree Removal 90,000 85,000 175,000 Contractual Services 0015203-570725 Stump Removal 68,510 100,000 168,510 Public Works - Engineering Personal Services 0015401-500650 Sick Leave Incentive 3,000 4,200 7,200 Personal Services 0015401-500700 Vacation/Personal Incentive 2,500 6,000 8,500 Contractual Services 0015405-540652 Street Light Maintenance 11 ,635 10,000 21,635 Commodities & Supplies 0015405-570575 Street Light Supplies 20,000 20,000 40,000 464,236 1 ,277.584 1,741,820 All other General Fund Accounts 37,728,748 0 37,728,748 Total General Fund 38,192,984 1 ,277.584 39,470,568 DEA Shared Funds Fund (085) Other Equipment 0854102-670151 Other Equipment 1,000 9,000 10,000 1,000 9,000 10,000 All other DEA Shared Funds Fund Accounts 0 0 0 Total DEA Shared Funds Fund 1,000 9,000 10,000 DUI Fine Fund (086) Other Equipment 0864102-670151 Other Equipment 1,000 19,000 20,000 1,000 19,000 20,000 All other DUI Fine Fund Accounts 0 0 0 Total DUI Fine Fund 1,000 19,000 20,000 Foreign Fire Tax Board Fund (095) Pension Benefits 00954210-540225 Other Services 0 2,500 2,500 0 2,500 2,500 All other Foreign Fire Tax Board accounts 10,473 0 10,473 Total Foreign Fire Tax Board Fund 10,473 2,500 12,973 Capital Improvement Fund (510) Village Improvements & Equipment Contractual Services 5107701-540112 Space Needs Study 0 45,000 45,000 Contractual Services 5107701-540115 Traffic Study/Improvements 17,000 38,000 55,000 Office Equipment 5107701-650025 P&F UPS Batteries 20,000 25,000 45,000 37,000 108,000 145,000 All other Capital Improvement Fund Accounts 989,993 0 989,993 Total Capital Improvement Fund 1,026,993 108,000 1,134,993 VILLAGE OF MOUNT PROSPECT Budget Amendment No.2 Fiscal Year January 1, 2007 through December 31, 2007 Expenditures Current Amended Budget Increase Budget Fund/Program/Classification Account # Account Description Amount (Decrease) Amount Downtown Redevelopment Construction Fund (550) Other Professional Services 5507703-540110 Other Professional Services 30,000 10,000 40,000 Bond Prinicpal 5507703-710150 Installment Note Principal 0 350,000 350,000 Interest Expense 5507703-720150 Installment Note Interest 42,300 1,750 44,050 72,300 361,750 434,050 All other Downtown Redevelopment Construction Fund Accounts 2,382,887 0 2,382,887 Total Downtown Redevelopment Construction Fund 2,455,187 361,750 2,816,937 Water and Sewer Fund (610) Commodities & Supplies 6105505-570470 Restoration Materials 19,000 16,000 35,000 19,000 16,000 35,000 All Other Water and Sewer Fund Accounts 11,656,919 0 11,656,919 Total Water and Sewer Fund 11,675,919 16,000 11,691,919 Risk Management Fund (690) Insurance 6908501-560001 Claims Administration 38,100 9,900 48,000 Insurance 6908501-560104 Workers' Compensation Insurance 41,710 1,025 42,735 Insurance 6908501-560204 Workers' Compensation Claims 500,000 350,000 850,000 579,810 360,925 940,735 All other Risk Management Fund Accounts 6,005,404 0 6,005,404 Total Risk Management Fund 6,585,214 360,925 6,946,139 Police Pension Fund (710) Pension Benefits 7108202-530902 Medical Expense 5,000 10,000 15,000 5,000 10,000 15,000 All other Police Pension Accounts 2,460,133 0 2,460,133 Total Police Pension Fund 2,465,133 10,000 2,475,133 Fire Pensions (720) Pension Benefits 7108202-530700 Refund of Contributions 0 10,000 10,000 0 10,000 10,000 All other Police Pension Accounts 2,627,958 0 2,627,958 Total Police Pension Fund 2,627,958 10,000 2,637,958 Total Village Budget Funds being changed 65,041,861 2,174,759 67,216,620 All other Village Budget Accounts 16,728,867 0 16,728,867 Total Village Budget after Changes 81,770,728 2,174,759 83,945.487 6 SECTION TWO: That this ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet fonn as provided by law. AYES: NAYES: ABSENT: PASSED and APPROVED this day of ,2007. ~Richard M. Lohrstorfer Mayor:Pro..: 'I:em ATTEST M. Lisa Angell Village Clerk INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois FROM: DATE: SUBJECT: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE TO: NOVEMBER 15, 2007 AMENDING CHAPTERS 9 AND 19, AND APPENDIX A OF THE VILLAGE CODE WATER AND SOLID WASTE COLLECTION PURPOSE: To present for the Board's consideration an ordinance amending Chapters 9 and 19, and Appendix A of the Village Code. BACKGROUND: In January 2006, the Village began billing single family residences for refuse collection. In addition, the refuse collection program was changed to reflect use oftoters. Due to these operational changes, modifications were needed in the Village Code. DISCUSSION: Changes made to the Village Code for solid waste collection have been in place for almost two years. In that time several issues have been brought to our attention regarding the consistency between the billing for water and sewer service and solid waste collection. The changes recommended in the attached ordinance work to provide consistency between these two sections of the Code. In addition, it is recommended that language regarding direction for water service shutoff of delinquent accounts be updated to provide additional clarity. Changes to Appendix A include; 1) a fee increase for the expense incurred in the administration and/or shutting off and resuming of water service; and 2) adjustment in the late fee for multi-family refuse customers. The current fee for administering water shut-off and turn on is $50. This rate has not changed in over ten years. We propose the fee be increased to $100. Although it appears the increase is significant, the fee still does not cover the actual cost of administering a delinquent account. The change in the late fee for delinquent multi-family refuse payments is being done to correct an error when updates to the Code were made to incorporate the new refuse billing program. The late fee rate for delinquent multi-family refuse payments was inadvertently changed to 10% when it should have remained at 20%. RECOMMENDATION: It is recommended the Village Board approve the attached ordinance amending Chapters 9 and 19, and Appendix A of the Village Code. ~~U-. DAVID O. ERB DIRECTOR OF FINANCE ~ 1:\Ordinances & Resolutions\Board Memo Amend 9,19 and Appendix A - November 2007.doc ORDINANCE NO. AN ORDINANCE AMENDING CHAPTERS 9 AND 19, AND APPENDIX A OF THE VILLAGE CODE OF MOUNT PROSPECT BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: Subsection 8 of Section 9.412, "Delinquent and Unpaid Accounts", of Article IV, entitled "Water Supply System", of Chapter 9 of the Code of Ordinances of the Village of Mount Prospect, Illinois, as amended, shall be deleted in its entirety and a new Subsection 9.412(8) inserted, to be and read as follows: Water Service Shutoff: Whenever charges for water service have remained unpaid for more than ninety (90) days from the date of the statement provided therefor, the water service may be shut off to the premises of such delinquent consumer; provided, that the consumer shall be given at least ten (10) days' written notice of intent to shut off such service, and the reason therefor, and an opportunity to request and obtain a hearing with respect to such unpaid charges before the finance director which, if adverse, shall further allow the consumer a reasonable period of time, not less than five (5) days, to pay the delinquent charges prior to the shut off of service. An administrative fee as set forth in Appendix A, Division II 'win applv to water service that has been scheduled to be shut off. Water service which has been shut off shall not be resumed until all bills in arrears have been paid. It shall be the duty of the director of finance to enforce the provisions of this section whenever delinquency shall occur. SECTION TWO: Subsection A.2 of Section 19.202, "Regulations With Respect to Customers of a Solid Waste Collection Service", of Article II, entitled "Solid Waste Collection", of Chapter 19 of the Code of Ordinances of the Village of Mount Prospect, Illinois, as amended, is amended by deleting the term "occupied" to be and read as follows: iManage:193591_1 2. Every residential dwelling unit within the corporate limits of the Village shall be billed for and shall be required to use the services of the Exclusive Residential Franchisee. SECTION THREE: Subsection A..12.d(1) of Section 19.202, "Regulations With Respect to Customers of a Solid Waste Collection Service", of Article II, entitled "Solid Waste Collection" of Chapter 19 of the Code of Ordinances of the Village of Mount Prospect, Illinois, as amended, is amended by deleting the phrase "and III" in the last sentence to be and read as follows: (1) Whenever charges for solid waste collection services have remained unpaid for more than ninety (90) days after the date of the statement for such services, the water service may be shut off for the premises of such delinquent customer. The customer shall be given at least ten (10) days' written notice of intent to shut off such services, the reason for the shutoff, and an opportunity to request and obtain a hearing, within the ten (10) day period with respect to such unpaid charges, before the village manager or finance director. If the village manager or finance director confirms the shutoff order, the customer shall be allowed an additional five (5) days, to pay the delinquent charges prior to the shutoff of services. An administrative fee as set forth in Appendix A. Division II will applv to water service that has been scheduled to be shut off. Water service, which has been shut off shall not be resumed until all bills, late charges and penalties shall have been paid, including the fees set forth in appendix A, division II of this code for shutting off and turning on the water. SECTION FOUR: Subsection A.12(d) of Section 19.202, "Regulations With Respect to Customers of a Solid Waste Collection Service," of Article II, entitled "Solid Waste Collection" of Chapter 19 of the Code of Ordinances of the Village of Mount Prospect, Illinois, as amended, is amended by inserting a new subsection iii, the remaining subsections to be renumbered numerically, to be and read as follows: iii. The penalty imposed under Section 19.201 E of this Chapter. iManage: 193591_1 SECTION FIVE: Section 9.409, "Water Meters", of Chapter 9, "Public Utilities, Pavement and Tree Regulations", of Appendix A, Division II, "Penalties and Fees", of the Code of Ordinances of the Village of Mount Prospect, Illinois, as amended, shall be amended by deleting subsection A.2 and inserting a new subsection A.2 to be and read as follows: A.2. Fee for the expenses incurred in the administration and/or shuttina off and resumina water service: $100.00 SECTION SIX: Section 9.412, "Delinquent and Unpaid Accounts", of Chapter 9, "Public Utilities, Pavement and Tree Regulations", of Appendix A, Division II, "Fees, Rates and Taxes", of the Code of Ordinances of the Village of Mount Prospect, Illinois, as amended, shall be amended by deleting Subsection B in its entirety and inserting a new Subsection B, to be and read as follows: B. Fee for the expenses incurred in the administration and/or shuttina off and resumina water service: $100.00 SECTION SEVEN: Subsection B of Section 9.412, "Delinquent and Unpaid Accounts", of Chapter 9, "Public Utilities, Pavement and Tree Regulations," of Appendix A, Division III, "Penalties and Fines", of the Code of Ordinances of the Village of Mount Prospect, Illinois, as amended, shall be deleted in its entirety. SECTION EIGHT: Section 12.d of Section 19.202, "Regulations with Respect to Customers of Solid Waste Collection Services", of Chapter 19, "Health Regulations", Appendix A, Division II, "Fees, Rates and Taxes", of the Code of Ordinances of the Village of Mount Prospect, Illinois, as amended, shall be deleted in its entirety and a new Subsection 12.d inserted to be and read as follows: iManage:193591_1 12.d (1) Fee for the expenses incurred in the administration and/or shuttina off and resumina water service: $100.00 SECTION NINE: Section 12.b. of Section 19.202, (Regulations with Respect to Customers of Solid Waste Collection Services), of Chapter 19, (Health Regulations), Appendix A, Division II, (Fees, Rates and Taxes), of the Code of Ordinances of the Village of Mount Prospect, Illinois, as amended, shall be deleted in its entirety and a new subsection 12.b inserted to be and read as follows: 12.b (3) Individual dwelling unit customers: late fee of 10% of bill if not paid by due date; multi-family: late fee of 20% of bill if not paid by due date. SECTION TEN: This Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided bylaw. AYES: NAYS: ABSENT: PASSED and APPROVED this day of ,2007. Richard M. Lohrstorfer Mayor Pro Tern ATTEST: M. Lisa Angell Village Clerk H:\CLKO\files\WIN\ORDINANC\amend2007 chapter 9 and 19november2007.DOC iManage: 193591_1 Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois DATE: VILLAGE MANAGER MICHAEL E. JANONIS VILLAGE CLERK NOVEMBER 14, 2007 la", ~"t&, 1l1~IOl TO: FROM: SUBJECT: AMEND SECTION 11.1105 OF APPENDIX A- DVISION "BONDS, SALARIES, INSURANCE AND MISCELLANEOUS" OF THE VILLAGE CODE Upon review of Section 11.1105 entitled Insurance Required (Taxicabs), of Appendix A, Division I, of the Village Code it has been determined the insurance coverage for taxicabs needs to be amended to comply with State of Illinois Certificate of Insurance coverage requirements. The attached ordinance reflects current State of Illinois Insurance coverage requirements for taxicabs. Please forward this memorandum and proposed ordinance to the Village Board for approval at their November 20,2007 meeting. Thank you. ,/ ~ /?( ./ / " - /'?-7 :;;z::,'/ A'r-' ~d.k/ /. - ( V.~L-f J. M. Lisa Angell . ~ ORDINANCE NO. AN ORDINANCE TO AMEND SECTION 11.1105 OF APPENDIX A - DIVISION I ENTITLED "BONDS, SALARIES, INSURANCE, MISCELLANEOUS" OF THE VILLAGE CODE OF MOUNT PROSPECT. ILLINOIS NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: Chapter 11. Section 11.1105 of Appendix A - Division I, entitled "Insurance Required (Taxicabs)" is hereby amended as follows: The current 11.11 05 shall be deleted and replaced with a new Section 11.11 05 to read as follows: Split Reauirements $250,000 for anyone person. $250,000 for anyone accident $ 50,000 property damage Combined Sinale Limit $300,000 SECTION TWO: This ordinance shall be in full force and effect after its passage, approval, and publication in pamphlet form in accordance with law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of ,2007. Richard M. Lohrstorfer Mayor Pro Tern ATTEST: M. Lisa Angell Village Clerk H:\CLKO\files\WIN\ORDINANC\amendappendixA 11.11 05insurancerequirednov2007.doc mla 11/05/07 RESOLUTION NO. -07 A RESOLUTION AUTHORIZING PAYMENT TO THE MOUNT PROSPECT PUBLIC LIBRARY UNDER THE TERMS OF A GROUND LEASE AGREEMENT WHEREAS, on November 6, 2002, the Village of Mount Prospect (lithe Village") and the Mount Prospect Public Library (lithe library") entered into a Ground Lease Agreement (the "Lease") providing, among other things, for the Village to lease certain property ("Property") from the Library; and WHEREAS, the Village has caused its attorney and staff to review the terms of the Lease and the current status of the Property and its usage; and WHEREAS, the attorney and staff have reported that both the Village and the Library are in substantial compliance with all material terms of the Lease; and WHEREAS, the President and Board of Trustees have determined that it is in the best interests of the Village and its residents to assure that there is continued compliance with the Lease. NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the parties are in substantial compliance with all material terms of the Lease. SECTION TWO: That the President and Board of Trustees authorize the Village Director of Finance to pay the Library such sums as are due pursuant to the Lease. SECTION THREE: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of November 2007. Richard M. Lohrstorfer Mayor Pro Tem ATTEST: M. Lisa Angell Village Clerk H:ICLKOlfilesIWIN\RES\lease pymt, Library & VOMP,parking2007.doc I MOl1nt Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE ~'~~I t\ fp d) TO: DATE: NOVEMBER 15, 2007 SUBJECT: EXTENSION OF HIGH LEVEL EXCESS LIABILITY POOL TERM PURPOSE: To present for the Board's consideration a resolution authorizing continuation of the High-Level Excess Liability Pool (HELP) cooperative. BACKGROUND: The HELP pool was created in 1987 with an initial term of eleven (11) years and a membership of fifteen local municipalities. The pool was created as a result of the tight insurance market in the mid 1980's. HELP entered a second ten-year term with the same fifteen members on May 1, 1998. The current membership consists of the original fifteen members. There have been no new members added during the first two terms and it is anticipated that all the original members will renew their participation for the next term. The current HELP term will expire April 30, 2008. Coverage limits and retentions have varied from year to year. Currently, each member is responsible for the first $2 million of each claim. HELP retains the next $4 million in coverage with an additional $6 million in coverage reinsured with an independent insurance company. DISCUSSION: At the September 21 J 2007 regular board meeting the HELP Board of Directors approved the extension of the current term for an additional ten years. In order to continue its membership in the pool, the Village Board must approve the attached resolution by December 4,2007. Included with the resolution is a copy of the current contract and by-laws. Participation in the pool has provided many benefits that otherwise are not available with conventional insurance. Some of the benefits include the sharing of risk, stable premiums and purchasing power of excess coverage, control over disposition of claims and pool equity. Above the self-insured retention level, the Village is able to share its risk and the impact significant claims might have with the other members of the pool. In the case of a single claim exceeding $6 million, excess insurance is also in place for coverage up to $12 million. Unlike premiums for conventional coverage that can fluctuate greatly from year to year, annual contributions for HELP are set by its members who are sensitive to the budget constraints of local government. HELP is also able to obtain excess coverage well below commercial pricing. Because primary insurance coverage through the commercial market is not needed, HELP members are able to retain control and have input in the disposition of claims that would otherwise be decided unilaterally by the insurer. V\\ Extension of High-Level Excess Liability Pool Term November 15,2007 Page 2 One final benefit of being a member of HELP is the ability for its members to build equity with good experience. To date, the Village has paid approximately $1.5 million in contributions to HELP over the past 20 years. Due to the pool's good claims experience Mount Prospect has been able to build equity in the amount of $712,000 leaving a net cost for coverage at $820,000. At $41 ,000 per year, our average net cost is well below commercial market pricing. There will be only minor changes to the by-law and contract as it relates to the term extension. There will be no material changes to the existing documents. There will also be no changes in the allocation formula, attachment of coverage levels or coverage limits. RECOMMENDATION: It is recommended the Village Board approve the attached ordinance authorizing continuation ofthe High-Level Excess Liability Pool (HELP) for a third term. Term III will commence May 1, 2008 and expire April 30, 2018. J~tI. t:L- DAVID O. ERB DIRECTOR OF FINANCE 1:\HELP\Board Memo Term III Renewal- November 2007.doc RESOLUTION A RESOLUTION AUTHORIZING CONTINUATION OF THE HIGH-LEVEL EXCESS LIABILITY POOL WHEREAS, the High-Level Excess Liability Pool ("HELP") is a governmental self-insurance pool, formed pursuant to Article VII 910 of the Illinois Constitution, and the Illinois Intergovernmental Cooperation Act, 5 ILCS 9220-1 et seq., and governed according to an intergovernmental agreement, hereinafter referred to as the "Contract and By-Laws" (a copy of the contract and by-laws is attached to and made part of this Resolution); WHEREAS, as of the end of its current fiscal year ending April 30, 2008, HELP will have completed its tenth year since the pool was last extended, during which it has provided collective excess self-insurance for the governmental entities which have been members of HELP; WHEREAS, the Village of Mount Prospect is a member of HELP, and its desire is to continue HELP's existence; NOW, THEREFORE, be it resolved by the Village of Mount Prospect, Illinois. SECTION 1: HELP, of which this governmental body is a member, at the conclusion of its current fiscal year ending April 30, 2008, shall continue in existence, under the terms of its Contract and By-Laws for ten years, commencing on May 1, 2008; SECTION 2: The Contract and By-Laws of HELP shall continue to constitute the intergovernmental agreement between this governmental body and the other members of HELP; SECTION 3: This resolution 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 ,2007. Richard M. Lohrstorfer Mayor Pro Tem ATTEST: M. Lisa Angell Village Clerk Page No. ARTICLE I. ARTICLE II. ARTICLE III. ARTICLE IV. ARTICLE V. ARTICLE VI. ARTICLE VII. ARTICLE VIII. ARTICLE IX. ARTICLE X. ARTICLE XI. ARTICLE XII. ARTICLE XIII. ARTICLE XIV. ARTICLE XV. ARTICLE XVI. CONTRACT AND BY-LAWS mGH-LEVEL EXCESS LIABILITY POOL TABLE OF CONTENTS Definitions and Purpose. ..................................... 1 Definitions. ............................................... 1 Purpose. .................................................. 3 Powers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6 Participation and Term. ...................................... 8 Commencement and Term of the Agency. ....................... 9 Board of Directors. ......................................... 11 Board of Directors Meetings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Finances and Risk Management Pool. . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Scope and Amount of Loss Protection. ..........................35 Obligations of Members. ................................ . . . . . 39 Liability of Board of Directors or Officers. . . . . . . . . . . . . . . . . . . . . .'. .44 Additional Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Optional Defense by Member. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Contractual Obligation. ...................................... 49 Host Member. ............................................. 51 Expulsion of Members. ...................................... 52 Termination of the Agency. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Drafted by ANCEL, GLINK, DIAMOND, BUSH, DICIANNl & ROLEK, P .C. C:\MYDOCU-I \HELP\BYLA WSO I.T AB \ HELP - 3/21/97 HELP - 3/17/00 CONTRACT AND BY-LAWS OF THE HIGH-LEVEL EXCESS LIABILITY POOL ARTICLE I. Definitions and Purpose. DEFINITIONS: As used in this agreement, the following terms shall have the meaning hereinafter set out: AGENCY - The High-Level Excess Liability Pool (H.E.L.P.) established pursuant to the Constitution and the statutes of this State by this intergovernmental agreement. ANNUAL PAYMENT The minimum amount a MEMBER shall be obligated to pay to the AGENCY during a fiscal year. CLAIMS ADMINISTRATOR - A person or group of persons who either as employees or independent contractors are employed to administer the claims made against the MEMBERS. CONVENTIONAL INSURANCE - Insurance coverage which may from time to time be purchased by or through the AGENCY from an insurance company approved by the Department of Insurance to write such coverage in Illinois for risks which the MEMBERS determine will not be covered or be entirely covered by the JOINT RISK MANAGEMENT POOL; CONVENTIONAL INSURANCE shall also include excess insurance and reinsurance. DEBT INSTRUMENTS - Bonds, letters of credit, loan agreements, or other documents by which funds are borrowed by the AGENCY 1 HELP - 3/21/97 HELP - 3/17/00 or by a MEMBER of the AGENCY to fund in whole or in part the Joint Risk Management Pool. HOST MEMBER - A MEMBER of the AGENCY which issues or becomes principally obligated for a debt instrument. JOINT RISK MANAGEMENT POOL A fund of public monies established by the AGENCY to provide risk management services, administer and jointly self-insure certain claims within an agreed scope, to purchase conventional insurance where such coverage is available in reasonable amounts, and where issued, to repay debt instruments and to pay other costs within the purposes of the AGENCY; also RISK MANAGEMENT POOL. JOINT SELF-INSURANCE - A self-insurance program in which MEMBERS agree to contribute annual, and where required, supplementary paYments and other required paYments such as interest paYments to support the costs of administration, a risk management program and joint risk management pool. MEMBERS - Units of local government and joint contractual agencies composed of units of local government which initially or later enter into the intergovernmental contract established by this intergovernmental agreement. POOL CONTRIBUTION FORMULA - A formula approved by the Board of Directors which will establish the amount of required annual paYment to the AGENCY. 2 HELP - 3/21/97 HELP - 3/17/00 RISK MANAGEMENT - A program attempting to reduce or limit injuries to persons or property caused by the operations of MEMBERS. SUPPLEMENTARY PAYMENTS - Payments which may be called for, in accordance with the Contract and By-Laws, by the Board of Directors from time-to-time if the amount of the annual payment is insufficient to fund the AGENCY. PURPOSE: The AGENCY is a cooperative agency voluntarily established by contracting units of local governments and similar governmental entities as defined in the Illinois Constitution of 1970 pursuant to Article VII, Section 10 of the 1970 Constitution of the State of Illinois, 5 ILCS 220/6 and 745 ILCS 10/1-101, et seg., for the purpose of seeking the prevention or lessening of liability claims for injuries to persons or property or claims for errors and omissions made against the MEMBERS and other parties included within the scope of coverage of the AGENCY. It is the intent of the MEMBERS of the AGENCY to create an entity which will administer a Joint Risk Management Pool and utilize such funds contributed by the MEMBERS to defend and protect, in accordance with these By-Laws, any MEMBER of the AGENCY 3 HELP - 3/21/97 HELP - 3/17/00 and other parties against stated liability. Such By-Laws shall constitute the substance of a contract among the MEMBERS. All funds contained within the Risk Management Pool are funds directly derived from its MEMBERS which are units of local government or similar governmental entities within the State of Illinois. It is the intent of the parties in entering into this agreement that, to the fullest extent possible, the scope of risk management undertaken by them through a joint self-insurance program using governmental funds shall not waive, on behalf of any local public entity or public employees as defined in the Local Governmental and Governmental Employees Tort Immunity Act, any defenses or immunities therein provided. Specifically, the MEMBERS of this AGENCY intend to effect no waiver of immunities through their contribution of public funds retained within the risk management pool. Such contributions being reserves to protect against uninsured risks in accordance with 5 ILCS 220/6, are not intended to constitute the issuance of a policy for insurance coverage, (by an insurance company authorized by the Department of Insurance to write such coverage in Illinois). Nor do the MEMBERS, if permitted by law, intend to waive any immunities by the purchase of conventional insurance by the AGENCY. In the event that the AGENCY, either itself or through a HOST MEMBER, should sell debt instruments, the obligation of the MEMBERS to repay their proportional share of the retirement of debt instruments shall continue under whatever repayment schedule is 4 HELP - 3/21/97 HELP - 3/17/00 contained within the debt instruments. In addition, by entering into a contract which will provide some coverage on an occurrence basis, even if the claim is filed at some time after the expiration of the term of the AGENCY, but during the period of coverage, the MEMBERS state and acknowledge their continuing contractual obligations arising out of occurrences which take place during the term of this contract. In creating an excess self-insurance pool, the MEMBERS of this AGENCY are entering into a type of intergovernmental contract which has not previously existed in Illinois. In forming such an AGENCY, the MEMBERS state and acknowledge that the AGENCY has no responsibility for the payment of claims from the Joint Risk Management Pool for amounts less than the level at which the scope of coverage of this AGENCY shall from time to time commence or higher than the level of the self-insured retention of the AGENCY. The scope of coverage to be provided by the AGENCY is excess coverage to commence only after the MEMBER or some other party on behalf of the MEMBER has fully paid the amount of its self-insured retention. At the commencement of the term of the AGENCY, the amount of that retention is $1,000,000, per occurrence. The AGENCY, always subject to any limit on aggregate paYments, shall not be obligated to expend any funds or pay any claim until the MEMBER, or some party on behalf of the MEMBER, has paid $1,000,000, including costs of defense, for each occurrence against which a claim is made against the assets of the AGENCY. 5 HELP - 3/21/97 HELP - 3/17/00 ARTICLE II. Powers. The powers of the AGENCY to perform and accomplish the purposes set forth in Article I shall, within the budgetary limits and procedures set forth in these By-Laws, be the following: (a) To employ agents, employees and independent contractors, (b) To lease real property and to purchase or lease equipment, machinery, or personal property necessary for the carrying out of the purpose of the AGENCY, (c) To carry out educational and other programs relating to risk reductions, (d) To cause the creation of, see to the collection of funds for, and administer a joint risk management pool and to repay debt instruments of the AGENCY, its MEMBERS, or both, (e) To purchase conventional insurance or reinsurance to supplement the joint risk management pool, (f) To establish reasonable and necessary loss reduction and prevention procedures which shall be followed by the MEMBERS. It is the intent of the MEMBERS that the use of this power shall be exercised with discretion with a goal of undertaking oversight responsibilities rather than the direction by the AGENCY of the day-to-day operations of a MEMBER, 6 HELP - 3/21/97 HELP - 3/17/00 (g) To provide risk management services, and, where required, the investigation, defense, litigation, or settlement of claims, (h) To admit and expel MEMBERS as provided herein, (i) Solely within the budgetary limits established by the MEMBERS to carry out such other activities as are necessarily implied or required to carry out the purposes of the AGENCY specified in Article I or the specific powers enumerated in Article II. 7 HELP - 3/21/97 HELP - 3/17/00 ARTICLE III. Participation and Term. All MEMBERS of the AGENCY, except for those whose membership is terminated in accordance with the expulsion provisions of Article XV, and such extension of the term as may be made if the fiscal year of the AGENCY is changed, shall remain MEMBERS of the AGENCY for a period of ten (10) years after the AGENCY shall have commenced its operations under the terms of this First Extension. New MEMBERS, including those units of local government listed in Appendix A, which do not join at the inception of the AGENCY, under the terms of this First Extension shall be admitted only by a two-thirds (2/3) affirmative vote of the entire membership of the Board of Directors and subject to the payment of such funds and under such conditions as the Board shall in each case or from time to time establish, including provisions relating to the payment of any funds available after all claims have been paid or provision has been made for the payment of all claims. MEMBERS of the AGENCY, which were not MEMBERS on July I, 1997, shall receive no coverage for periods of time prior to their membership. The obligation of such MEMBERS to make supplementary payments shall, however, be the same as the obligation of the MEMBERS of the AGENCY on that date. 8 HELP - 3/21/97 HELP - 3/17/00 ARTICLE IV. Commencement and Term of the Agency. The First Extension of the Contract and By-Laws of the AGENCY calling for its continuing existence shall be in full force and effect on May 1, 1998, if by July 1, 1997, all of the MEMBERS whose names appear upon Appendix A, attached to and made part of this contract, have, through an ordinance or resolution, of their corporate authorities, authorized the execution of this First Extension. Evidence that such actions have been taken shall be transmitted to: Daniel Wiersma Secretary, HELP Pool City of Wheaton 303 West Wesley Street Wheaton, Illinois 60187 who shall inform the MEMBERS if the action necessary to cause the adoption of this First Extension have taken place prior to the date by which such action must be taken. In the event that all MEMBERS execute the First Extension, they shall be permitted to merge funds from the prior term of the AGENCY subject to any limitation in the amount of coverage for MEMBERS which have had claims paid by the AGENCY. Such limitation, however, shall not limit the aggregate payment to the MEMBERS during the First Extension to less than Five Million Dollars ($5,000,000.00). The utilization of funds for the payment of claims arising from the First Extension of the AGENCY shall not, however, diminish the obligations of the MEMBERS of the 9 HELP - 3/21/97 HELP - 3/17/00 AGENCY for any financial obligations arising out of membership in the initial eleven-year term. 10 HELP - 3/21/97 HELP - 3/17/00 ARTICLE V. Board of Directors. (a) There is hereby established a Board of Directors of the AGENCY. Each MEMBER shall appoint one (1) person to represent that body on the Board of Directors along with another person to serve as an alternate representative when the initial representative is unable to carry out that representative f s duties. The representative and alternate shall be appointed in the same manner as other appointive officers are selected when no specific method for such office is established by statute. Once such appointments are made known to the AGENCY the persons appointed shall remain in office until the AGENCY receives evidence of the appointment of other persons. The AGENCY shall be the judge of the proper appointment of representatives and alternates to the Board of Directors and shall utilize in case of dispute general principles of Illinois law. The representati ve and alternate selected need not be elected officials of the MEMBER. It is anticipated, but not required, that persons chosen to serve on the Board will have responsibilities within their MEMBER community for some management duties relating to the AGENCY. The Board of Directors shall select from among the representatives a Chairman, Vice Chairman, Secretary and Treasurer. In the fiscal year of the AGENCY, commencing 11 HELP - 3/21/97 HELP - 3/17/00 on May 1, 1998, these persons in office on April 30, 1998, shall serve for an additional fiscal year. Thereafter, they will be selected during the final quarter of the appropriate fiscal year to serve two-year terms commencing at the start of the next fiscal year or until the termination of the AGENCY. No person may serve as Chairman of the Board of Directors for more than two (2) consecutive full two-year terms. The Chairman shall be the chief executive officer of the AGENCY. The Chairman shall preside at all meetings of the Board and the Executive Committee at which the Chairman is present. The Chairman may request information from any officer of the Board or the AGENCY or any employee or independent contractor of the AGENCY. The Chairman shall vote on all matters that corne before the Board or Committees on which the Chairman serves. The Chairman shall be a non-voting ex-officio member of all committees of the AGENCY on which the Chairman does not directly serve. The Chairman shall have such other powers as are set forth in these By-Laws and such other powers as he may be given from time to time by action of the Board. The Vice Chairman shall carry out all duties of the Chairman of the Board during the absence or inability of the Chairman to perform such duties and shall carry out 12 HELP - 3/21/97 HELP - 3/17/00 such other functions as are assigned from time to time by the Chairman or the Board of Directors. The Treasurer shall have charge and custody of and be responsible for all funds and securities of the AGENCY; receive and give all receipts for moneys due and payable to the AGENCY from any source whatsoever; deposit all such moneys in the name of the AGENCY in such banks, savings and loan associations or other depositories as shall be selected by the Board of Directors; invest the funds of the AGENCY as are not immediately required in such investments as the Board of Directors shall specifically or generally select from time to time; and maintain the financial books and records of the AGENCY. Provided, however, that all investments of AGENCY funds shall be made only in the manner permitted to an Illinois home rule community, or to a governmental self-insurance pool. The Treasurer shall, in general, perform all the duties incident to the office of Treasurer and such other duties as from time to time may be assigned by him by the Board of Directors. The Secretary shall keep the official records of the AGENCY. The Secretary shall see to the keeping of the minutes of meetings of the AGENCY and shall retain past financial records of the AGENCY. The Secretary shall see 13 HELP - 3/21/97 HELP - 3/17/00 to the sending of all notices required by these By-Laws and shall carry out other clerical duties of the AGENCY. The AGENCY shall purchase a bond in the cumulative amount of at least $1,000,000.00 to assure the fidelity of the Chairman and Vice Chairman of the Board, the Treasurer and any other officer, committee member, or employee who shall have the right to authorize the transfer or paYment of AGENCY funds. without amending these By-Laws, the Board of Directors, by motion, may increase the amount of the bonds or the persons covered. The Board may select a financial institution to carry out some or all of the functions which would otherwise be assigned to a Treasurer and may select a risk management company or agent to serve as claims administrator. The Board may also employ persons or companies as independent contractors to carry out some of the functions of officers of the AGENCY. The Board of Directors may from time to time establish other officers of the Board and may elect a representative on the Board to serve in any of such offices. The Board shall fill any vacancies which may occur in any offices for the remainder of the term. (b) The Board of Directors shall determine the general policy of the AGENCY which policy shall be followed by the AGENCY officers, agents, employees and independent 14 HELP - 3/21/97 HELP - 3/17/00 contractors employed by the AGENCY. Among other items it shall have the responsibility for (1) Hiring of AGENCY officers, agents, employees and independent contractors; (2) Setting of compensation for all persons, firms and corporations employed by the AGENCY; (3) Setting of fidelity bonding requirements for officers, employees or other persons; (4) Approval of amendments to the By-Laws; (5) Approval of the acceptance of new MEMBERS and expulsion of MEMBERS; (6) Approval and amendment of the annual budget of the AGENCY; (7) Establishment and amendment of the scope and amount of pooled self- insurance coverage offered by the AGENCY; (8) Resolution of disputes over the scope of pooled self-insurance coverage provided by the AGENCY; (9) Approval of educational and other programs relating to risk reduction; (10) Approval of reasonable and necessary loss reduction and prevention procedures which shall be followed by all MEMBERS; (11) Purchase of conventional insurance; (12) Authorization to a host MEMBER to issue debt instruments when all other contractual prerequisites for such issuance have been effected; (13); Approval.of annual and supplementary payments to the Risk Management Pool for each MEMBER; (14) Approval of rules and regulations regarding the payout of funds from the Risk 15 HELP - 3/21/97 HELP - 3/17/00 Management Pool as shall from time to time seem appropriate. (c) Each MEMBER shall be entitled to one (1) vote on the Board of Directors. Such vote may be cast only by the designated representative of the MEMBER or in the representative's absence, by an alternate selected by the MEMBER in the same manner as specified for the selection of the principal representative. No proxy votes or absentee votes shall be permitted. Voting shall be conducted by voice vote unless one (1) or more MEMBERS of the Board of Directors shall request a roll call vote; provided, however, that: 1. Any vote which requires a greater than majority vote for passage shall be by roll call vote, and 2. Any member of the Board who abstains or casts a vote in a minority position on a matter upon which a voice vote is taken may have that vote specifically recorded in the minutes by indicating such desire to the presiding officer. (d) The representative selected by the MEMBER shall serve until a successor has been selected. The representative chosen by the MEMBER may be removed in the same manner as other appointive officers within the MEMBER. In the 16 HELP - 3/21/97 HELP - 3/17/00 event that a vacancy occurs in the representative or alternate representative selected by the Corporate Authorities of a MEMBER, that body shall appoint a successor. The failure of a MEMBER to select a representative or the failure of that person to participate shall not affect the responsibilities or duties of a MEMBER under this Contract. (e) The Board of Directors shall have the power to establish both standing and ad hoc committees. The committees of the AGENCY may, among other titles and functions, include: Finance, Risk Management, Claims Review and Membership and Revenue. The Chairman of the Board may also establish ad hoc committees which do not conflict with those established by the Board. Unless the Board of Directors shall establish some other procedure, the selection of members of the Board of Directors who shall serve on such committees and chair them shall reside with the Chairman of the Board of Directors, but such decisions shall be confirmed by the Board. The Chairman may make interim appointments to fill vacancies which occur between Board meetings. The Board of Directors may assign to a committee the authority to authorize the expenditure of funds for administrative expenses, but the settlement of claims or suits to be paid from the joint risk management pool 17 HELP - 3/21/97 HELP - 3/17/00 shall be decided by the Board of Directors, except as the Board shall specifically assign in whole or in part such function to a person or committee. (f) The Board of Directors shall create an Executive Committee. That Executive Committee shall at a minimum consist of the Chairman and Vice Chairman of the Board, the Treasurer, the Secretary, the representative or alternate of any host MEMBERS, and the Chairman of the other standing committees of the AGENCY along with other persons. The Executive Committee shall make recommendations to the Board and shall undertake other functions as the Board shall assign. (g) A quorum shall consist of a majority of the MEMBERS of the Board of Directors. Except as provided in Subsection (h), herein, or elsewhere in these By-Laws, a simple majority of a quorum shall be sufficient to pass upon all matters. (h) A greater vote than a maj ori ty of a quorum shall be required to approve the following matters: (i) Such matters as the Board of Directors shall establish within its rules as requiring for passage a vote greater than a majority of a quorum, provided, however, that such a rule can only be established by a greater than a majority vote at 18 HELP - 3/21/97 HELP - 3/17/00 least equal to the greater than majority percentage within the proposed rule. (ii) The approval of the payment of the settlement of claims from the joint risk management pool shall require the concurrence of a majority of the entire membership of the Board of Directors. By such a vote, the Board of Directors may also establish procedures whereby, in cases where a rapid decision on the terms of a prospective settlement must be made, a committee or person may approve settlements in an amount higher than that previously authorized by the Board, subject to limitations established by the Board. (iii) The admission of a new MEMBER and the expulsion of a MEMBER shall require at least the concurrence of two-thirds (2/3) of the entire membership of the Board of Directors. (iv) The purchase of any form of conventional insurance shall require at least the concurrence of two- thirds (2/3) of the entire membership of the Board of Directors. (v) Any amendment of these By-Laws except as provided in Subsection (vi) below, shall require at least the concurrence of two-thirds (2/3) of the entire membership of the Board of Directors. 19 HELP - 3/21/97 HELP - 3/17/00 (vi) The amendment of these By-Laws to cause the termination of this agreement sooner than ten (10) years after its commencement but only if any debt instruments issued have been entirely paid or provision has been made for their paYment, or the amendment of these By-Laws to cause a modification of more or less than the high or low range of the debit-credit formula, as provided for in Article VII(j), or the modification of the scope or amount of coverage of the AGENCY and the authorization to a host MEMBER which has specifically agreed by resolution of its corporate authorities to obligate itself to execute a debt instrument shall require that specific written notice of the proposed change A-2 be sent by registered or certified mail return receipt requested to the regular representative of the MEMBER on the Board of Directors, no less than ten (10) days prior to a meeting at which this matter is proposed and that the amendment as proposed or as amended at a Board meeting shall require concurrence of at least two-thirds (2/3) of the entire membership of the Board of Directors. (i) No one serving on the Board of Directors shall receive any salary or other payment from the AGENCY. Any salary, compensation, paYment or expenses for such 20 HELP - 3/21/97 HELP - 3/17/00 representative, shall be paid by each MEMBER separate from this Contract. Provided, however, that the Chairman of the Board, Vice Chairman, Treasurer and Secretary and such other Board officers as are given by the Board of Directors a right to reimbursement may submi t to the Board of Directors for its approval claims for reimbursement of expenses incurred in the pursuit of their positions as officers of the AGENCY. The reimbursement for such expenses shall include amounts advanced on behalf of the AGENCY either by the officer himself or by a MEMBER of the AGENCY. A host MEMBER may be compensated for agreeing to issue or issuing a debt instrument, be reimbursed for expenses or be granted credits for sums otherwise due the AGENCY. 21 HELP - 3/n/97 HELP - 3/17/00 ARTICLE VI. Board of Directors Meetings. (a) Regular meetings of the Board of Directors shall be held at least three (3) times a year. The dates of regular meetings of the Board shall be established at the beginning of each fiscal year. Any item of business may be considered at a regular meeting. A special meeting may be held any time after all of the MEMBERS have approved this First Extension upon not less than seven (7) days' written notice from any three (3) MEMBERS. At least one (1) meeting must be held during the first half of the fiscal year. Special meetings of the Board of Directors may be called by its Chairman, or by representatives of any three (3) MEMBERS. Ten (10) days' written notice of regular or special meetings shall be given to the official representatives of each MEMBER government and an agenda specifying the subject of any special meeting shall accompany such notice. Business conducted at special meetings shall be limited to those items specified in the agenda. Provided, however, that where it is necessary to call an emergency meeting of the Board to authorize the paYment of the settlement of a claim or claims or other matter requiring rapid attention, such a meeting may be called by delivered written or telephonic notice of no less than 24 hours. 22 HELP - 3/21/97 HELP - 3/17/00 (b) The time, date and location of regular and special meetings of the Board of Directors shall be determined by the Chairman of the Board of Directors or by the convening authority. (c) To the extent not contrary to these By-Laws, and except as modified by the Board of Directors, Roberts Rules of Order, latest edition, shall govern all meetings of the Board of Directors. (d) Minutes of all regular and special meetings'of the Board of Directors shall be sent to all Members and alternate members of the Board of Directors within twenty (20) days after each meeting. The Board shall subsequently vote on the approval of the minutes. 23 HELP - 3/21/97 HELP - 3/17/00 ARTICLE VII. Finances and Risk Management Pool. (a) The fiscal year of the AGENCY shall conunence on May 1 and shall be for a twelve (12) month period except that the Board may change the date of the commencement of the fiscal year. In the event that the Board chooses to change the fiscal year of the AGENCY, the term of this contract shall be extended for the number of months necessary to accommodate the new fiscal year. (b) The Board of Directors shall approve a preliminary budget for the administration of the AGENCY for each forthcoming year during the final quarter of the prior fiscal year. Copies of all preliminary and final budgets shall be promptly mailed to each MEMBER of the Board of Directors. The Board of Directors shall, before the end of the year prior to the start of each fiscal year, approve a final budget, the pool contribution formula, and the amount of annual paYments due from each MEMBER, including, where applicable, a debit and credit calculation for each MEMBER and the date upon which the paYment is due. Provided, however, in the first year of operations under the First Extension, the annual paYment and budget shall be approved by the Board of Directors during the final quarter of the prior fiscal year. Failure to approve a preliminary or final budget within the times set forth within this section shall not 24 HELP - 3/21/97 HELP - 3/17/00 relieve the MEMBERS of the obligation to make annual or supplementary payments to the AGENCY so long as such budgets are finally adopted, and the MEMBERS are given at least thirty (30) days after the passage of the final budget or the determination of amounts due in which to make payments to the AGENCY. Where the proceeds of a debt instrument have been received, the obligation of MEMBERS to repay that debt shall not be dependent upon the approval of a budget. Budgets may be amended at any time by majority vote of the Board of Directors. (c) Calls for supplementary payments shall be made by the Board of Directors. Supplementary payments shall be called for where required in order that the scope and amount of coverage of the AGENCY can be provided to all MEMBERS. The Board shall, where necessary, make calls for supplementary payments from MEMBERS, including expelled MEMBERS, claims which occurred during the time of their membership. Provided, that in any year in which the scope of coverage is provided on a "claims made" basis, supplementary payments may only be used to pay and administer claims made during the subject year or such later period as assumed by the AGENCY or specified in a conventional insurance policy purchased by the AGENCY. The forwarding of annual and supplementary payments within a time specified in notices to the MEMBERS giving 25 HELP - 3/21/97 HELP - 3/17/00 them not less than thirty (30) days to make such paYments I shall be of the essence of this contract. Supplementary paYments shall only be required by the Board of Directors in a situation in which there is a reasonable concern that the sum remaining from the annual paYment or prior supplementary paYments will not be sufficient to meet the responsibilities of the AGENCY. MEMBERS shall be responsible for supplementary paYments during the entire life of the AGENCY and any later period when claims or expenses need be paid which are attributable to the year of membership when the event out of which the expense or claim occurred or for "claims made" coverage during that claim year or such later period assumed by the AGENCY or specified in a conventional policy. The Board of Directors may permit annual or supplementary paYments to be made on a monthly or quarterly basis. Each MEMBER shall make supplementary paYments in an amount that shall be based upon the amount that its annual paYments and equity paYments bear to the annual paYments and equity paYments bear to the annual paYments and equity paYments of other MEMBERS. If additional supplementary paYments are required to pay a claim for which earlier supplementary paYments have been made I the proportional share of each MEMBER shall be recomputed to include the appropriate proportional figure 26 HELP - 3/21/97 HELP - 3/17/00 for annual payments made in any subsequent fiscal years for which figures are then available. (d) Each MEMBER shall have prepared and submit to the AGENCY an annual audited statement of all revenues prepared by a certified public accountant on a G.A.A.P. basis. For the purpose of computing amounts due for participation in the AGENCY, revenues shall be classified by fund type as follows: General Fund: Included: 1). taxation of all types; real estate, sales, utility, income tax etc. 2). license and permit fees 3). intergovernmental revenue 4). fines and forfeitures 5). interest earnings 6). fees charges or service 7). franchise revenues Excluded: 1). refunds 2). interfund transfers 3). installment contract proceeds 4). income from joint ventures 27 HELP - 3/21/97 HELP - 3/17/00 Special Revenue Funds Included: 1). taxation of all types 2). intergovernmental revenue 3). interest earnings 4). grant funds Excluded: 1). interfund transfers 2). refunds 3). installment contract proceeds 4). income from j oint ventures Debt Service Funds Excluded: 1). bond proceeds Special Assessment/Special Service District Funds Included: 1). taxation of all types 2). interest earnings Excluded: 1). proceeds from new debt where proceeds are to be used to retire existing debt 2). interfund transfers 3). bond proceeds 4). installment contract proceeds Capital Project Funds Included: 1). taxation of all types 2). interest earnings 3). developer contributions 4). gran t funds Excluded: 1). interfund transfers 2). bond proceeds 3). installment contract proceeds 28 HELP - 3/21/97 HELP - 3/17/00 Enterprise Funds Included: 1). all sales 2). license and permit fees 3). service charges 4). interest earnings 5). taxation 6). grant funds Excluded: 1). interfund transfers 2). revenues collected while acting as an agent for another governmental body where amounts collected are passed through 3). bond proceeds 4). installment contract proceeds 5). income from joint ventures Internal Service Funds - Excluded Trust and Agency funds - Excluded General Exclusion All revenues associated with a specifically excluded risk or activity will not be included for the calculation of premiums. Revenues shall be computed using the figures shown in the annual audit statement of the MEMBER for the last fiscal year available on the date at which the audits are due. In the event a current audited financial statement is not available, or, if available, does not present revenues in the manner required, the Board of Directors shall estimate the revenues of the MEMBER based upon the best figures then available. The decision of the Board shall be final. 29 HELP - 3/21/97 HELP - 3/17/00 (e) The Board of Directors shall in subsequent years after reviewing the audit submitted from each MEMBER establish a tentative computation of the revenues of each MEMBER. Written notice of this tentative determination sha~l be sent to each MEMBER. If a MEMBER wishes to contest the determination of the amounts, it may request a hearing before the Board of Directors. The decision by the Board after such hearing shall be final unless the Board shall be found by a court to have committed a clear abuse of discretion. (f) During the final quarter of each fiscal year, the Board of Directors shall establish the pool contribution formula which will be used in determining the annual paYments due from each MEMBER for the next succeeding fiscal year. The four factors which will be equally weighted in creating the formula are: Revenues, as defined in Article VII (d) , Miles of Streets, Full-Time Equivalent Employees and the Total Number of State Licensed Vehicles and fire vehicles. MEMBERS shall be required to provide information to the AGENCY which will allow the Board of Directors to quantify each of these four factors. All questions relating to the computation of these four factors will be resolved by the Board of Directors and will be applied equally to all MEMBERS. The assessment of supplementary paYments, whenever 30 HELP - 3/21/97 HELP - 3/17/00 required to be paid, will be based upon the same proportion which the payment of one MEMBER bears to the payment of another MEMBER in the annual payment, except where the Board of Directors should modify that proportion based upon an error in the information reported or an error in computation. In the event that for any reason the proportional payments due from a MEMBER shall be adjusted, the amounts due from other MEMBERS shall likewise be subject to adjustment but the implementation of the adjustment may be delayed until the funds are needed. (g) If all claims known or unknown within the scope of coverage provided by the AGENCY, plus any other amounts owed by the AGENCY during any particular period for which funds of the AGENCY were combined to create the joint risk management pool, have either been paid or provision has been made for such payment, the Board of Directors as then constituted shall distribute any surplus funds to the MEMBERS which constituted the membership of the Pool during that period after first deducting therefrom reasonable administrative and other non-allocated costs incurred by the AGENCY in the processing of the claims in years other than the period for which the claim was made. The distribution among the MEMBERS shall be in the same proportion to the total as their payments during the 31 HELP - 3/21/97 HELP - 3/17/00 period bore to the payments of all MEMBERS less any sums owed the AGENCY. Provided, however, that a MEMBER may elect to transfer such excess funds to the Joint Risk Management Pool for any later or prior period for which it owes or will owe funds to the AGENCY. MEMBERS shall remain obligated for all payments due the AGENCY under this Contract and By-Laws if it should be determined even after the payment of any rebate that additional sums are necessary to fulfill the contractual obligations agreed to herein. Such obligation shall continue so long as there are claims made against the AGENCY for injuries that fall within the scope of coverage provided by the AGENCY for the period in question. (h) The Board of Directors shall provide to the MEMBERS an annual audit of the financial affairs of the AGENCY to be made by a certified public accountant at the end of each fiscal year in accordance with the generally accepted auditing principles. The annual report shall be delivered to each MEMBER within 180 days after the close of the prior fiscal year. (i) The Board of Directors may require reports from all agents and independent contractors including attorneys with regard to the status of their work for the AGENCY, problems encountered during the performance of their duties, and recommendations for improvements in the 32 HELP - 3/21/97 HELP - 3/17/00 performance of the AGENCY including their efforts on the AGENCY'S behalf. (j) The Board of Directors may apply to the annual and supplementary payments due from a MEMBER a debit or credit computed in a manner determined by the Board of Directors which shall affect the payment due from the MEMBER to the extent that the number and the amount of reserved claims and losses attributable to that MEMBER in no more than three prior years , in amounts of at least $10,000.00, shall compare with the general frequency and amount of similar claims and losses attributable to MEMBERS of the AGENCY in proportion to the level of their payments to the AGENCY in relationship to all payments made to the AGENCY. In developing a debit-credit formula, the AGENCY may also consider the existence and effectiveness o~ the loss prevention programs put in place by the MEMBERS. All adjustments shall not result in a credit of more than 25% nor a debit of more than 25% from the average. The Board of Directors shall approve the debit or credit formulation either directly or in the approval of the adj usted annual payment due from the MEMBERS. Provided, however, that the Board of Directors shall, for each year of the existence of the AGENCY provide a sum in the joint risk management pool which, after the debit or credit adjustment has been made, shall 33 HELP - 3/21/97 HELP - 3/17/00 be in. a gross amount sufficient to pay for the anticipated total costs required to fully fund the operations of the AGENCY. 34 HELP - 3/21/97 HELP - 3/17/00 ARTICLE VIII. Scope and Amount of Loss Protection. Scope of coverage and the amount of coverage to be provided by the AGENCY shall be determined from time to time by the Board of Directors. The AGENCY may modify both the scope of coverage and the amount of coverage, both upward and downward, provided, however, that any modifications shall only apply prospectively. -1 The Scope of Coverage Document may provide for the manner in which the scope and amount of coverage offered by the AGENCY shall be coordinated with CONVENTIONAL INSURANCE and with any other coverage which a MEMBER or other covered entity shall possess. No indemnification shall be provided by the AGENCY until the MEMBER has expended $1,000,000 in loss payments as a result of the occurrence. Defense costs shall be included toward satisfying both the loss payment by the MEMBER and the coverage provided by the AGENCY. Coverage, other than errors and omissions coverage, is provided by the AGENCY only for those occurrences which occur during the fiscal year for which the MEMBER has made an ANNUAL PAYMENT and all required SUPPLEMENTARY PAYMENTS and for which written notice is given to the AGENCY within ten (10) years subsequent to the date of occurrence. Where an occurrence is continuous and involves more than one such fiscal year, coverage is provided only to the extent of the coverage amounts in effect, as regards the MEMBER, during the fiscal year in which the occurrence began. 35 HELP - 3/21/97 HELP - 3/17/00 Errors and omissions coverage is provided by the AGENCY only for those occurrences which take place subsequent to the first day of membership in the AGENCY by the MEMBER and for which written notice is first given to the AGENCY during a fiscal year for which the MEMBER has made an ANNUAL PAYMENT and all required SUPPLEMENTARY PAYMENTS. Aggregate limits placing a total cap on payments which may be made to or on behalf of a MEMBER shall be established for the initial term of the AGENCY and this First Extension. Provided, however, that the per-occurrence or aggregate limits for MEMBERS during the initial term or during this First Extension shall not be less for each term than Five Million Dollars ($5,000,000). The fulfillment of the payment of aggregate limits may only be made from payments received both from the self-insured retention funds of the AGENCY and will not be reached by payments from conventional insurance. At the commencement of the term of this First Extension, the amount of money which a MEMBER must pay before the obligation of the AGENCY will commence is a self-insured retention by the MEMBER of $1,000,000 per occurrence. Under no circumstances shall the obligation of this AGENCY commence until a MEMBER has paid for that occurrence the amount of the self-insured retention established by the AGENCY from time to time. The MEMBERS of the AGENCY are aware of a limited number of cases in the United States in which insurance companies purporting to offer coverage excess of a 36 HELP - 3/21/97 HELP - 3/17/00 deductible or a self-insured retention amount have been compelled by courts to commence the level of their coverage at lower levels. By entering into this contract, each MEMBER acknowledges that it is the absolute understanding of the MEMBERS of this AGENCY that under no circumstances shall the AGENCY be compelled to make any payments until a MEMBER has fulfilled the full responsibility of paying the total amount of the self-insured retention. Nor shall the AGENCY, under any circumstances, be obligated for payments in excess of the maximum per occurrence or aggregate amounts established from time- to-time which are to be paid from the self-insured retention of the AGENCY. Because of the right of each MEMBER to participate in the decisions reached by the AGENCY, and because of the uncertain results which may occur in claims seeking large payments, no claim of a bad faith failure to settle shall be made against the AGENCY in the absence of fraud. MEMBERS may fund the amount of the self-insured retention through reserve funds, conventional insurance, membership in pools, the issuance of judgment funding bonds or other methods. The method by which a MEMBER of the AGENCY fulfills its responsibility to fund the self-insured retention is a matter of no consequence to this AGENCY. This AGENCY intends to offer a scope of coverage which will commence only in excess of the self-insured retention. The extent of intergovernmental cooperation or contractual obligation of the MEMBERS to fund the AGENCY does not extend whatever to any primary coverage or obligations below the amount of 37 HELP - 3/21/97 HELP - 3/17/00 the self-insured retention. The MEMBERS of the AGENCY would not have entered into this Contract and By-Laws if any MEMBER understood the obligation of the AGENCY to its MEMBERS to extend in any manner below the level of the self-insured retention or above the level of self-insured retention coverage established. The AGENCY, however, may, from time-to-time, fund a part of its self- insured retention through the purchase of conventional insurance and may offer coverage which, in each case, will be payable only from conventional insurance in amounts in excess of its self- insured retention. The Board of Directors shall, by a vote of at least the concurrence of a majority of the entire membership of the Board of Directors, from time-to-time approve a specific text of the scope of coverage offered in the manner provided in Article V(h) (vi). In the event that there should be a conflict between the text of the scope of coverage document and the Contract and By-Laws, this later document shall prevail. The AGENCY may from time to time expand the scope or amount of coverage to be provided, which expansion may be extended to the paYment of claims which occurred prior to the date of the expansion. In the event that the AGENCY should reduce or modify the amount or scope of coverage to be provided, such reduction shall only apply to claims which occurred subsequent to the date of the modification. 38 HELP - 3/21/97 HELP - 3/17/00 ARTICLE IX. Obligations of Members. The obligations of MEMBERS of the AGENCY shall be as follows: (a) To appropriate, budget for, where necessary to levy for and to promptly pay all annual and supplementary or other payments to the AGENCY at such times and in such amounts as shall be established by the Board of Directors within the scope of this agreement. MEMBERS shall also be required to pay their proportional share of the repayment of principal and interest obligations and other costs incurred by a host MEMBER in obligating itself under a debt instrument. The proportional share of each MEMBER shall be that proportion its annual payment for that fiscal year bears to the annual payments of the other MEMBERS. Any delinquent payments shall be paid with a penalty which shall be equal to the highest interest rate allowed by statute to be paid by an Illinois home rule municipality or the prime rate then in effect at the First National Bank of Chicago, or, in the event that such bank is no longer in existence, then the prime rate in effect at that bank, with its principal office in Illinois, with the largest assets, whichever rate is lower. (b) To select a person to serve on the Board of Directors and to select an alternate representative. 39 HELP - 3/21/97 HELP - 3/17/00 (c) To allow the AGENCY reasonable access to all facilities of the MEMBER and all records relating to claims and the financial obligations of a MEMBER. (d) To provide the Pool the right and give it the opportunity to associate with the MEMBER or any conventional insurance carrier providing coverage to the MEMBER, or both, in the defense and control of any claim, suit or proceeding which involves or may involve the Pool and in which event the MEMBER, such insurers and the Pool shall cooperate in all things in defense of such claim, suit or proceeding. (e) To furnish full cooperation with the AGENCY'S attorneys, claims administrator and any agent, employee, officer or independent contractor of the AGENCY relating to the purpose and powers of the AGENCY. (f) To follow in its operations all loss reduction and prevention procedures established by the AGENCY within its purpose and powers, including, but not limited to the use of release forms, posting of notice, participation in educational and record-keeping programs, limitations in activities offered, and the use of loss preventative techniques and devices. (g) To furnish to the AGENCY an audit prepared by a Certified Public Accountant of all revenues of the MEMBER for any fiscal year of the MEMBER for which figures are requested 40 HELP - 3/21/97 HELP - 3/17/00 by the AGENCY. If an audit is not furnished, the AGENCY may employ an auditor to perform such an audit and the MEMBER shall be required to pay the reasonable cost of such audit. (h) To report to the Secretary of the AGENCY and the claims administrator, at the earliest practicable moment, any information of a claim received by the MEMBER and from which the MEMBER could reasonably conclude that coverage from the AGENCY will be sought. In the event that the required information is not submitted to the Secretary and claims administrator within the time periods set forth above, the Board of Directors of the AGENCY, may in whole or in part decline to provide a defense to the MEMBER or to extend the funds of the AGENCY for the paYment of losses or damages incurred. In reaching its decision, the Board shall consider whether and to what extent the AGENCY was prejudiced in its ability to investigate, defend or earlier settle the claim due to the failure of the MEMBER to promptly furnish notice of the claim to the Secretary. In the absence of a fraud or a clear abuse of discretion, the decision of the Board of Directors shall be final. Information must be furnished to the AGENCY not only at the time that a claim is made which could reasonably be expected to be within the scope of coverage of the AGENCY, but also updated information 41 HELP - 3/21/97 HELP - 3/17/00 must be provided as the nature of the claim becomes more fully known and litigation occurs and proceeds. Information must also be furnished if a claim reasonably thought to be below the level of the amount of coverage provided by the AGENCY should approach or be asserted by the claimant to fall within the amount of coverages. (i) To either employ a professional claims administration firm to handle all self-insured claims, enter into an insurance contract (for claims at lower levels of coverage than those provided for by the AGENCY) which includes an obligation of that insurance company to furnish information to the AGENCY of pending claims or, if the MEMBER performs claims administration utilizing its own personnel, the obligation to employ a firm to perform claims auditing. The claims auditing firm will be chosen by the AGENCY and the reasonable cost of such audit will be borne by the MEMBER. (j) In the event that the AGENCY shall be required to expend funds for administrative, legal or other costs brought about by the failure of a MEMBER to pay sums owed the AGENCY or to take other actions required under this Contract and By-laws, such amounts expended shall be added to the sums due the AGENCY and shall be payable by the MEMBER. 42 HELP - 3/21/97 HELP - 3/17/00 (k) To fully cooperate to allow the AGENCY to subrogate any amounts the AGENCY has paid from entities against which the MEMBER has any claim. Amounts which the AGENCY is able to recover through subrogation shall, after the payment of expenses, be credited against claims paid on behalf of a MEMBER so as to restore the amount of coverage which has been charged against that MEMBER's aggregate limit. (1) To the extent that the coverage provided by the AGENCY should extend to officers or employees of the MEMBER or others, those entities shall be responsible for fulfilling all of the obligations of the MEMBER as it shall apply to that claim. 43 HELP - 3/21/97 HELP - 3/17/00 ARTICLE x. Liability of Board of Directors or Officers. The members of the Board of Directors or officers of the AGENCY should use ordinary care and reasonable diligence in the exercise of their power and in the performance of their duties hereunder; they shall not be liable for any mistake of judgment or other action made, taken or omitted by them in good faith; nor for any action taken or omitted by any agent, employee or independent contractor selected with reasonable care; nor for loss incurred through investment of AGENCY funds, or failure to invest. No Director shall be liable for any action taken or omitted by any other Director. No Director shall be required to give a bond or other security to guarantee the faithful performance of the Director's duties hereunder. The Board of' Directors shall authorize, if necessary, the use of the joint risk management pool to defend and hold harmless any Director or officer for actions taken by the Board or performed by the Director or officer within the scope of his authority for the AGENCY. The AGENCY may purchase conventional insurance providing similar coverage for such Directors and officers and if such coverage has been purchased shall require that the coverage of the insurance company shall be relied upon before utilizing the funds of the joint risk management pool to provide a defense or make a settlement. 44 HELP - 3/21/97 HELP - 3/17/00 ARTICLE XI. Additional Coverage. Membership in the AGENCY shall not preclude any MEMBER from purchasing any insurance coverage above those amounts purchased by the AGENCY. The AGENCY shall make its facilities available to advise MEMBERS of the types of additional or different coverages available to units of local government. 45 HELP - 3/21/97 HELP - 3/17/00 ARTICLE XII. Optional Defense by Member. The scope of coverage provided by this AGENCY shall only commence at such point that the MEMBER has made a good faith offer to settle the claim at a level within the self-insured retention of the MEMBER and that offer has been rejected. Where the scope of coverage of the AGENCY is activated, the MEMBER, through the procedure set out in this article, shall have an opportunity to object to a settlement whenever the AGENCY proposes to settle any pending claim or suit. The MEMBER shall be given advance notice of any proposed settlement. Such notice may be given by the establishment of a reserve amount in documents provided to the MEMBER by or through the AGENCY, provided that the amount of the settlement does not exceed the amount reserved. The officers and employees of the AGENCY shall, however, endeavor to give specific oral or written notice to a MEMBER of the exact amount of any proposed settlement at least fourteen (14) days prior to the date at which the AGENCY proposes to bind itself to pay such settlement amount. It is recognized by the MEMBERS that under some circumstances the AGENCY may not be able to give fourteen (14) days' prior oral or written notice of the proposed settlement. The officers, employees or independent contractors of the AGENCY shall attempt to give the MEMBERS as much notice of the settlement as is possible under the circumstances of each case. If a MEMBER should disagree with the amount for which the AGENCY proposes to settle a case or claim, the representative of 46 HELP - 3/21/97 HELP - 3/17/00 the MEMBER on the Board of Directors of the AGENCY, the alternate member, the local governmental attorney or the chief administrative officer of the MEMBER may notify the claims administrator of the AGENCY that tpe MEMBER exercises its right to prevent the AGENCY from reaching a settlement at the agreed-upon amount. The claims administrator may require that such information be transmitted in writing. In the event that the case or claim is eventually resolved through a settlement or judgment within the dollar limits of coverage provided by the AGENCY and in an amount less than the amount at which the case could have been previously settled by the AGENCY, then the MEMBER which has undertaken the costs of its defense shall be entitled to its additional actual costs including reasonable attorneys' fees, up to the level at which its costs and the prior allocated costs of the AGENCY, including reasonable attorneys' fees, equal the amount at which the case could have been settled by the AGENCY. To the extent that the case or claim is resolved through settlement or judgment at an amount greater than that at which the case or claim could have been previously settled by the AGENCY and a claim is thereby made within the dollar limits of coverage provided by the AGENCY, the MEMBER shall be obligated for that portion of the settlement or judgment which exceeds the sum of money at which the case could have been earlier settled by the AGENCY including all allocated costs of the AGENCY. If at any time the amount of the allocated costs of the AGENCY devoted to the 47 HELP - 3/21/97 HELP - 3/17/00 case shall equal or exceed the amount at which the case could have been settled and the AGENCY is providing a defense, the AGENCY may require periodic supplementary payments from the MEMBER if the MEMBER wishes to have the AGENCY continue to provide the defense. Allocated costs shall mean those costs which are allocated to individual cases under the bookkeeping and accounting system utilized by the AGENCY. The AGENCY may establish the amount at which it could have settled the case through a written settlement offer by the plaintiff or through other competent evidence of the availability of the settlement at a particular sum and the desire of the MEMBER to preclude settlement discussions and the sum at which the AGENCY believed the case could have been settled. 48 HELP - 3/21/97 HELP - 3/17/00 ARTICLE XIII. Contractual Obligation. This document shall constitute a contract among those entities which become MEMBERS of the AGENCY. The obligations and responsibilities of the MEMBERS set forth herein, including the obligation to take no action inconsistent with these By-Laws as originally written or validly amended shall remain a continuing obligation and responsibility of each MEMBER. The terms of this Contract may be enforced in a court of law by the AGENCY or any of its MEMBERS. The consideration for the duties herewith imposed upon the MEMBERS to take certain actions and to refrain from certain other actions is based upon the mutual promises and agreements of the MEMBERS set forth herein. If any dispute arises regarding this Contract, the MEMBERS agree that a court shall interpret the actions and duties of the parties in accordance with the specific standard or burden of proof set out in this Contract and By-Laws. This Contract and By-Laws may be executed in duplicate originals and its passage by entities listed in Appendix A shall be evidenced by a certified copy of an ordinance or resolution passed by a majority of the members of the governing board then in office. Provided, however, that except to the extent of the financial contributions of the AGENCY agreed to herein or such additional obligations as may corne about through amendments to these By-Laws no MEMBER agrees or contracts herein to be held responsible for any claims in tort or contract made against any other MEMBER. The 49 HELP - 3/21/97 HELP - 3/17/00 contracting parties intend in the creation of the AGENCY to establish an organization for joint risk management only within the scope herein set out and have not herein created an insurance company or as between MEMBER and MEMBER, except for that limited extent, any relationship of surety, indemnification or responsibility for the debts of or claims against any MEMBER. 50 HELP - 3/21/97 HELP - 3/17/00 ARTICLE XIV. Host Member. Any home rule MEMBER of the AGENCY may voluntarily agree to be a host MEMBER. 51 HELP - 3/21/97 HELP - 3/17/00 ARTICLE XV. Expulsion of Members. By the concurrence of two-thirds (2/3) of the entire membership of the Board of Directors present at a regular or special meeting, any MEMBER may be expelled. Such expulsion may be carried out for one or more of the following reasons: (a) Failure to make any payments due to the AGENCY. (b) Failure to undertake or continue loss reduction and prevention procedures adopted by the AGENCY. (c) Failure to allow the AGENCY reasonable access to all facilities of the MEMBER and all records which relate to the purpose or powers of the AGENCY. (d) Failure to furnish full cooperation with the AGENCY'S attorneys, claims administrator and any agent, employee, officer or independent contractor of the AGENCY relating to the purpose and powers of the AGENCY. (e) Furnish incorrect financial, claims history or other information to the AGENCY. (f) Failure to carry out any obligation of a MEMBER which impairs the ability of the AGENCY, to carry out its purpose or powers. (g) A history of excessive pending or closed claims or losses which in the absolute discretion of the Board of Directors creates an unacceptable risk of similar adverse future claims or losses. If a MEMBER is expelled 52 HELP - 3/21/97 HELP - 3/17/00 pursuant to Subsection (g), all prior reported claims shall remain eligible for the coverage of the AGENCY. No MEMBER may be expelled except after written notice from the AGENCY of the alleged failure along with the reasonable opportunity of not less than thirty (30) days to cure the alleged failure. Provided, however, that no opportunity to cure shall be necessary for an expulsion brought in whole or in part because of a poor loss or claim history. The MEMBER may request a hearing before the Board before any decision is made as to whether the expulsion shall take place. The hearing must be requested in writing not later than five (5) days after the time to cure has expired or in case no time to cure is required within 30 days of the notice by the Board of an intent to expel. Times required for notices under this contract shall be measured from the date of mailing or delivery if personally delivered. The Board shall set the date for a hearing which shall not be less than ten (10) days after the request for the hearing. If the time to request a hearing has passed and the MEMBER has not requested a hearing or if no hearing is required or if such a hearing has been requested, no later than sixty (60) days after the close of that hearing, the Board shall determine whether the MEMBER will be expelled. A decision by the Board to expel a MEMBER shall be final unless the Board shall be found by a Court to have committed a clear abuse of discretion. The Board of Directors may establish the date at which the expulsion of the MEMBER shall be effective at any time not less than thirty (30) days after the 53 HELP - 3/21/97 HELP - 3/17/00 vote expelling the MEMBER has been made by the Board of Directors. If the motion to expel the MEMBER made by the Board of Directors or a subsequent motion does not state the time at which the expulsion shall take place, such expulsion shall take place thirty (30) days after the date of the vote by the Board of Directors expelling the MEMBER. After expulsion, the former MEMBER shall continue to be fully obligated for any annual or supplementary payments for which it was delinquent at the time of its expulsion and supplementary payments later voted by the AGENCY for losses which were within the scope of c~verage of the AGENCY during the time of its membership, along with any other unfulfilled obligation as if it was still a MEMBER of the AGENCY. The expelled MEMBER shall, after expulsion, no longer be entitled to participate or vote on the Board of Directors or to receive the benefits of self-insurance coverage for any claim otherwise covered on an occurrence basis which occurred before the expulsion and for any claim otherwise covered on a claims made basis which had both occurred and been reported prior to the expulsion. The Board of Directors may deduct from any payments made on behalf of an expelled MEMBER all amounts due the AGENCY. No MEMBER expelled from the AGENCY, except for the payment of third-party claims, shall receive any return from the AGENCY of funds paid into the Joint Risk Management Pool. 54 HELP - 3/21/97 HELP - 3/17/00 ARTICLE XVI. Termination of the Agency. At the conclusion of the ten (10) year term of this Contract and By-Laws under the First Extension, all MEMBERS shall remain fully obligated for their portion of any claim against the assets of the Joint Risk Management Pool which is within the scope of coverage of the AGENCY along with any other unfulfilled obligation, including but not limited to calls for supplementary payments attributable to the period of their membership which may be called for in subsequent years. The Board of Directors shall continue to meet on such a schedule as shall be necessary to carry out the winding up of the affairs of the AGENCY. Because of the nature of claims filed against governmental bodies, it is contemplated that the Board may be required to meet for some time to conclude all matters relating to the termination of the AGENCY. When all of the affairs of the AGENCY are wound up and all claims and expenses of the AGENCY are paid, or provision is made for their payment, the members of the Board of Directors shall distribute any funds remaining in the joint risk management pool to the MEMBERS in the proportion which those MEMBERS contributed funds to the AGENCY. MEMBERS expelled from the AGENCY shall not be entitled to the return of any funds. At the conclusion of the ten (10) year term of this Contract and By-Laws, if all debt instruments shall have been repaid, MEMBERS of the AGENCY may elect to distribute to the then existing MEMBERS some of the funds contained within the Joint Risk Management Pool. The distribution of those funds, however, 55 HELP - 3/21/97 HELP - 3/17/00 shall not affect the obligation of the MEMBERS to make supplementary paYments to the Joint Risk Management Pool in the event that claims which fall within the scope of coverage of the AGENCY need to be paid at subsequent times. In determining the amount of funds which may be returned to the MEMBERS, the AGENCY shall procure the recommendation of an actuary. The AGENCY may also purchase conventional insurance to fund either the remaining known claims against the AGENCY or incurred but not reported claims. DATED: , ~9 A C C E P TED Mayor Municipal Clerk 56 HELP - 3/21/97 HELP - 3/17/00 WHEREUPON under the authority granted to me by Ordinance (Resolution) No. I passed by the Corporate Authorities on the day of I 19 I I do hereby execute and the Clerk does hereby attest to my signature as evidence that the has approved participation in the FIRST EXTENSION OF THE HIGH-LEVEL EXCESS LIABILITY POOL (HELP) I in accordance with this Contract and By-Laws in its executed form and as it may subsequently be validly amended. ATTEST: This day of I 19 57 HELP - 3/21/97 HELP - 3/17/00 APPENDIX A Names of MEMBERS Arlington Heights Chicago Ridge Deerfield Des Plaines Elk Grove Village Glenview Hoffman Estates Lincolnshire Mt. Prospect Oak Lawn Park Ridge Skokie Strearnwood Wheaton Winnetka HELP\CON&1-6.97\12B09BB.000 "'0