Loading...
City Council Packet 2006 11-14-06 2,.'ce'° CIP o United City of Yorkville a T 800 Game Farm Road EST , 1836 Yorkville, Illinois 60560 Telephone: 630-553-4350 09 Fax: 630-553-7575 AGENDA CITY COUNCIL MEETING CITY COUNCIL CHAMBERS 7:00 PM Revised 11/14/06 Tuesday, November 14, 2006 Call to Order: Pledge of Allegiance: Roll Call by Clerk: WARD I WARD II WARD III WARD W Paul James Valerie Burd Marty Munns Joe Besco Jason Leslie Dean Wolfer James Bock Rose Ann Spears Establishment of Quorum: Introduction of Guests: Amendments to Agenda: Committee Meeting Dates: Public Works Committee Meeting: Ad-hoc: Technology Committee Committee of the Whole To be Announced 7:00 p.m., Tuesday, November 21, 2006 City Hall Conference Room Economic Development Committee: Committee of the Whole 7:00 p.m., Tuesday,November 21, 2006 City Hall Conference Room Administration Committee Meetine: Committee of the Whole 7:00 p.m., Tuesday, December 5, 2006 City Hall Conference Room Public Safety Committee Meeting: Committee of the Whole 7:00 p.m., Tuesday, December 5, 2006 City Hall Conference Room Presentations: 1. Presentation of Citizen Award to Lynn Randall 2. Presentation of Commendation to Detective Stacey Mott City Council Meeting Agenda November 14,2006 Page 2 Public Hearings: None Citizen Comments: Consent Agenda: 1. PS 2006-42 Police Reports for October 2006 2. ADM 2006-77 Monthly Treasurer's Report for September 2006 3. ADM 2006-78 Risk Management Annual Bill -approve payment in an amount not to exceed$154,021.70 and authorize Finance Director to renew contract 4. ADM 2006-79 Purchase New Domain Server-authorize purchase in an amount not to exceed$6,202.00 5. ADM 2006-80 Resolution Approving Computer Rotation Policy- approve the policy as presented 6. ADM 2006-55 Resolution Approving Cellular Telephone Policy-approve the policy as presented 7. PKBD 2006-09 Scope of Service for Grande Reserve Park A-approve agreement with Schoppe Design Associates, Inc. as presented and authorize Director of Parks and Recreation to execute 8. PKBD 2006-10 Scope of Service for Grande Reserve Park B -approve agreement with Schoppe Design Associates, Inc. as presented and authorize Director of Parks and Recreation to execute 9. Appointment of Chris Funkhauser to the Zoning Board of Appeals Plan Commission/Zoning Board of Appeals: Minutes for Approval (Corrections and Additions): Minutes of City Council—None Minutes of Special City Council—October 26, 2006 Minutes of Committee of the Whole—September 19,2006 Bill payments for approval from the current Bill List(Corrections and Additions): Checks total these amounts: $ 2,591,202.45 (vendors) $ 207,314.51 (payroll period ending 10/14/06) $ 198,895.76 (payroll period ending 10/28/06) $ 2,997,412.72 (total) City Council Meeting Agenda November 14, 2006 Page 3 Reports: Mayor's Report: 1. Coffee with the Mayor: November 18`h at Nationwide Insurance, 718 N. Bridge Street from 9:00 a.m. until 11:00 a.m. City Council Report: 1. ADM 2006-74 Amended and Restated Governing Ordinance 2. ADM 2006-75 Resolution Approving Freedom of Information Act, Dissemination of Information Policy City Attorney's Report: 1. Resolution Regarding Petitions Submitted Requesting a Referendum on Annexations City Clerk's Report: City Treasurer's Report: City Administrator's Report: Finance Director's Report: Director of Public Works Report: Chief of Police Report: Director of Parks & Recreation Report: Community Development Director Report: Community Relations Manager: Community& Liaison Report: Committee Reports: Public Works Committee Report: 1. No Report. Economic Development Committee Report: 1. No Report. Public Safety Committee Report: 1. No Report. Administration Committee Report: 1. ADM 2006-67 Ordinance Authorizing and Providing for$5,525,000 Refunding Debt Certificates, Series 2006A 2. ADM 2006-67 Ordinance Authorizing and Providing for the issue of$3,000,000 General Obligation Refunding Bonds (Alternate Revenue Source), Series 2006B City Council Meeting Agenda November 14,2006 Page 4 Additional Business: Adjournment: COMMITTEES, MEMBERS AND RESPONSIBILITIES ---P�UBLIC ----___—--______°— - -- --------- --------------------- Committee Departments Liaisons Chairman: Alderman Besco Water and Sewer Park Board Committee: Alderman Munns Streets and Alleys YBSD Committee: Alderman Wolfer Sanitation and Waste Committee: Alderman James [ECONOMIC DEVE_L_OPM_ENT Committee Departments Liaisons Chairman: Alderman Munns Planning& Building&Zoning Chamber of Commerce Committee: Alderwoman Burd Business&Economic Dev. Kendall County Econ. Dev. Committee: Alderman Besco Plan Commission Committee: Alderman Leslie Bristol Plan Commission Yorkville Econ. Dev. Corp. Aurora Area Convention& Tourism Council Downtown Re-development UBLIC SAFET Committee Departments Liaisons Chairman: Alderwoman Spears Police Human Resource Comm. Committee: Alderman Wolfer Schools School District Committee: Alderman Leslie Public Relations KenCom Committee: Alderman Bock --------------- 1ADMINISTRATIO Committee Departments Liaisons Chairman: Alderman James Finance Metra Committee: Alderwoman Spears Public Properties Library Committee: Alderwoman Burd Personnel Cable Consortium Committee: Alderman Bock !AD-HOC: TECHNOLOGP �—----- -- ------------------ Committee --- --- ----------- --- Co-Chairman: Alderman Wolfer Co-Chairman: Alderman Bock CA 5 STATE OF ILLINOIS ) )ss COUNTY OF KENDALL ) RESOLUTION NO. 2006- RESOLUTION APPROVING A COMPUTER ROTATION POLICY WHEREAS, the City Council of the United City of Yorkville has considered and discussed establishing a policy concerning a computer rotation policy, and WHEREAS, the City Council has determined that it desires to establish such a policy, and WHEREAS, the text of the policy the City Council now desires to establish concerning computer rotation is set forth on the attached Exhibit "A"which is incorporated herein, and NOW THEREFORE, upon Motion duly made, seconded and approved by the majority of those members of the City Council voting, the Computer Rotation Policy is hereby approved by the City Council of the United City of Yorkville in the form set forth on Exhibit"A" attached hereto and incorporated herein. JAMES BOCK JOSEPH BESCO VALERIE BURD PAUL JAMES DEAN WOLFER MARTY MUNNS ROSE SPEARS JASON LESLIE Approved by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this day of . A.D. 2006. MAYOR Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this day of .A.D. 2006. ATTEST: CITY CLERK Prepared by: John Justin Wyeth City Attorney United City of Yorkville 800 Game Farm Road Yorkville, IL 60560 CA STATE OF ILLINOIS ) )ss COUNTY OF KENDALL ) RESOLUTION NO. 2006- RESOLUTION APPROVING A CELLULAR TELEPHONE POLICY WHEREAS, the City Council of the United City of Yorkville has considered and discussed establishing a policy concerning a cellular telephone policy, and WHEREAS, the City Council has determined that it desires to establish such a policy, and WHEREAS, the text of the policy the City Council now desires to establish concerning a cellular telephone policy is set forth on the attached Exhibit"A"which is incorporated herein, and NOW THEREFORE, upon Motion duly made, seconded and approved by the majority of those members of the City Council voting, the Cellular Telephone Policy is hereby approved by the City Council of the United City of Yorkville in the form set forth on Exhibit"A" attached hereto and incorporated herein. JAMES BOCK JOSEPH BESCO VALERIE BURD PAUL JAMES DEAN WOLFER MARTY MUNNS ROSE SPEARS JASON LESLIE Approved by me, as Mayor of the United City of Yorkville, Kendall County, Illinois,this day of . A.D. 2006. MAYOR Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this day of A.D. 2006. ATTEST: CITY CLERK Prepared by: John Justin Wyeth City Attorney United City of Yorkville 800 Game Farm Road Yorkville,IL 60560 MINUTES OF SPECIAL CITY COUNCIL MEETING OF THE CITY COUNCIL OF THE UNITED CITY OF YORKVILLE KENDALL COUNTY IL HELD IN THE GYM OF THE YORKVILLE MIDDLE SCHOO DRAFT 702 GAME FARM ROAD ON THURSDAY,OCTOBER 26,2006 Alderwoman Rose Spears called the meeting to order at 7:00pm. She announced that Mayor Art Prochaska would not be present due to a death in the family. It was noted that there was not a quorum;however,the meeting would be continued. She then led the Council in the Pledge of Allegiance. ROLL CALL The minute taker called the roll: Ward I James Absent Leslie Absent Ward D Burd Present Wolfer Absent Ward III Munns Absent Bock Present Ward IV Besco Absent Spears Present Also present: Acting City Administrator Crois,Assistant City Administrator Olson,City Attorney Wyeth,Police Chief Martin. ESTABLISHMENT OF A QUORUM No quorum was established. INTRODUCTION OF GUESTS See also guest lists attached. DISCUSSION OF PARKING ORDINANCE The purpose of this meeting was to discuss the parking ordinance and handouts were provided showing the results of the parking survey. Alderwoman Spears opened the floor for discussion. Joe Barry,502 Terri Lane Mr.Barry asked if this matter would be placed on a ballot for a vote as stated at the last meeting. He said the yellow postcard gave 2 choices for yes and 1 choice for no. Many of the families receiving the postcards have multiple vehicles,so the survey did not reflect true results and was a waste of money. Ms.Spears said putting it on a ballot is still an option. Another option is an advisory committee identifying problem streets with City staff identifying the width of various streets to determine if there are issues. Mr.Barry replied that those factors should have been addressed before the survey. He asked who the original sponsors of the ordinance were. Ms.Spears said it originated at the Public Safety Committee and addressed the Fox Hill area. Former Alderwoman Wanda Ohare brought this forward in response to complaints in her ward. It was the Council's decision to survey the residents,bearing in mind there are multiple persons per house. Mr.Barry said based on that fact,the survey was actually worthless. Alderwoman Burd agreed with Mr.Barry that the Council had stated that this matter would be put on a ballot. Direction was given by the Mayor for a committee to determine the wording to be used. Instead,the committee recommended other action. She will recommend to the other Aldermen,that this matter be put on the April ballot. Mr.Barry said he thought the"showing"would be better on the ballot. The Minutes of the Special Meeting of the City Council—October 26,2006—page 2 Alderman Bock gave his recollection of the process that occurred. He said that after the previous town meeting,the matter returned to the Public Safety committee where it was stated that Oswego had done such a survey. It was also stated that only about 14%of residents would turn out for a vote while a survey would produce a better response. (Yorkville's response was 55%). He said several surveys,referendums etc.,could be conducted with different results every time. At the end of that Public Safety meeting,it was agreed that the survey was the better solution. Regarding the survey,.Alderwoman Burd said one was mailed to each household and that it included non-registered voters. She agreed that the Council had decided to put the matter to a vote,based on the minutes of that town meeting. Chief Martin said that of approximately 4,700 households in town,2,700 responses were received along with citizens' written perspectives of the ban. Loree Kine-Sprine St. Resident Loree King asked what the purpose of this meeting was and especially in view of the fact that so many Aldermen were missing. Ms. Spears said that it was to provide a copy of the survey results to citizens. Ms.King said she had a concern over the wording on the survey and that"a ban is a ban!" She added that the previous minutes did promise a vote. Carol Foster—Fox Hill,1312 Chestnut Circle She said that it was unfair to continue saying that former Alderwoman Wanda Ohare requested the ban. Ms.Foster said Fox Hill residents only initially wished to prohibit commercial vehicles from parking on the street overnight. She thought the response to the survey was excellent. Barbara Collett(sp7)-John St.resident She stated that John St.is the widest street in Fox Hill and she is unable to park in front of her house-she must park across the street and that there is no parking in front of the park. She also said she did not receive the survey and when she called City Hall,she was told she would be mailed a ballot. This will be addressed according to Ms. Spears. Ms. Collett asked what the specific problem was with John St.,with only 10 houses,that prohibits parking there. This resulted from complaints received and addressed, according to Chief Martin. She felt the residents were being chastised based on those complaints. Shelley Butler-601 Teri Lane Ms.Butler said the surveys were only sent to residents who receive water bills and_ therefore many residents did not receive the survey. Traci Pleckham-221 Fairhaven She felt the survey yielded a good response. She added that she feels most residents do not favor a full parking ban on all streets and that possibly some of the responses came from residents who live on narrow streets. The ban might not be appropriate in some areas she said. Roger Murphy-803 Teri Lane Mr.Murphy said that the 50%response rate sounds good until one knows that some residents did not receive the survey. In his household,all five residents would vote no to the ban. Because of that,he said this matter should be put to a vote. He wondered how many residents knew that there was some type of ordinance on some streets already. He also said that it is difficult to find ordinances on the City website. At the previous parking ban meeting,he said most residents there were opposed to the ban. He said that numbers can be interpreted many ways and that he wants the matter to be put to a vote to give everyone over 18 a chance to voice their opinion. He added that the parking ban did - not work in Oswego. In the survey his own family conducted,some other families were split on their opinions. Therefore,the first family member to receive the survey could have completed it and did not reflect the view of each person residing there. At the The Minutes of the Special Meetine of the City Council—October 26,2006—paae 3 conclusion of the meeting,Mr.Murphy stated that the yellow postcards already said"no" to the ban. Larry Kine-Spring St. Mr.King said that survey numbers can be interpreted many ways and that the newspaper article gave the wrong impression to readers. He asked what is the root cause for the parking ban. Ms. Spears responded that some areas are public safety issues and the Police received complaints about specific areas. Mr.King did not feel it was fair to make changes for a few exceptions because those are enforcement issues. Chief Martin said the Police tried to respond to the complaints and to please as many as possible. He invited Mr.King to report any complaints since the police cannot be everywhere. Mr. King said he has complained about construction violations on Spring St. They were responded to and signs were put in place. He also felt that Police must determine if there is a complaint or if an issue is an actual problem. Since the commercial vehicle problem was addressed,Mr.King asked what the issue is now. He felt there are streets that need to be reviewed on a per-case-basis. He also suggested that some of the new,curved streets are more dangerous. The administrative costs of enforcing such a ban are enormous,he said. Ashley Barry-502 Teri Lane Ms.Barry said there are currently 6 cars in her household and she did not know where they would park if the ban were enforced. Chief Martin responded that if there were a hardship,they would be allowed to park on the street and the issue would be revisited in six months. Guests could also be given permission to park there. She also said she lives on a cul-de-sac with no through traffic. If cul-de-sacs were excluded from the ban,then many residents might park on those streets. Ms.Spears said that one resident of a cul-de- sac was threatened when he wanted cul-de-sacs excluded from a total ban. Ms.Barry suggested the City should possibly restrict parking on narrow streets. Ms.Spears said another option is a non-binding"advisory referendum"at the next election. Attorney Wyeth explained this further. The referendum would be in question form and the results would be given consideration by the Council. This would be somewhat similar to the survey. Mark and Barbara Gilmour-no address given Mr.Gilmour stated he had been to the previous town meeting. He has a trailer and commercial vehicle that he must park 2 blocks from his house at night. He did not feel preferential treatment should be given for cul-de-sacs. Chief Martin said there are no hardship allowances for secondary vehicles,only for passenger vehicles. Mr.Gilmour said he makes his living with this commercial vehicle and he now has his house for sale after 12 years'residence,since this is a hardship for him. He asked about possibly grandfathering such situations. Chief Martin noted that he had worked with Mr.Gilmour to find a parking place for his vehicle. Ms.Gilmour added that their daughter has 3 years of high school left and since they have their home for sale,she was present to support the other citizens opposed to the ban. She said the inconvenience overwhelms the statistics and asked why Yorkville would do this to their residents. She concluded that there were many more reasons to not have a ban. Another citizen present asked if the suggested ban is due to all the new subdivisions and that more thought should be given before allowing so many new homes to be built. Ms. Burd noted that the requests for the ban originated from established neighborhoods. Alderwoman Spears said she would recommend an advisory referendum preceded by additional discussion and news articles. Alderwoman Burd said she felt the issue was back to the beginning. She suggested streets be considered on a case-by-case basis and restrictions placed accordingly. She was not in favor of"blanket restrictions". The Minutes of the Special Meeting of the City Council—October 26,2006—page 4 Ms.Butler suggested that different setbacks might be needed to allow for longer driveways for additional parking. It was noted by Ms.Spears that the Council recently passed an ordinance requiring longer driveways. A resident of the apartments on Marketview said he had received a survey. There is parking on only one side of the street in this complex and he added that some towns have laws allowing parking at least on one side of the street at night. At this time there was no further comment and Alderwoman Spears said this matter would come back to City Council for consideration. The meeting ended at 8:30pm. Minutes by Marlys Young,Minute Taker Page I of 9 DittiF UNITED CITY OF YORKVILLE COMMITTEE OF THE WHOLE Council Chambers Tuesday, September 19,2006—7:00 pm In Attendance: Citv Art Prochaska-Mayor John Wyeth—City Attorney Paul James—Alderman John Crois—Interim City Administrator Valerie Burd-Alderwoman Eric Dhuse—Public Works Director Joe Besco—Alderman Susan Mika—Finance Director Rose Spears -Alderwoman Travis Miller—Community Development Director Marty Munns - Alderman David Mogle—Executive Director Parks &Rec. Guests Heather Gillers—Beacon News Kathy Farren—Kendall County Record Gary Davidson Dean Tomich Greg Hill Cheryl Durland Nick Ryan Trevor Ryan Kurt Wandrey—Lakewood Homes Jim Truesdell—Lakewood Homes Dave Gravel—Lakewood Homes Andrew Wydra Tim Tynan Glen McMaster James Uecker Bruce Devick Lynn Dubajic Kevin Carrara—Rathje&Woodward Herb Kleinwachter Jason Poppen Peter Huinker James Olguin Jim Hoving Nancy Kolowski Tim O'Keefe Tony Graff—MTG Land Management Dan Kramer—Attorney John Philipchuck—Attorney Drew Daniels Mayor Art Prochaska called the meeting to order at 7:04pm. PUBLIC HEARING: None PRESENTATIONS: 1. Walnut Enclave Concept Plan Postponed. Page 2 of 9 2. Sexton Development—Rob Roy Falls Concept Plan Drew Daniels of Sexton Development presented some facts concerning this development that is on Rt. 34 west of Cannonball Trail and east of Eldamain: 1. Senior living area is on 75 acres west of Rob Roy Creek, single family& duplexes, assisted living, age-restricted 2. Not annexed into Plano School District,however,not many students expected 3. 125 acres commercial 4. Possible hotel 5. Beecher Road will be 5 lanes 6. Density of Rob Roy Club will be 300-380 units. Club includes tennis courts and pool. This is a gated community with assessments 7. Adjacent to fixture Kendall Marketplace Mr. Daniels will return to a future meeting with more information. ECONONIIC DEVELOPMENT COMMITTEE: L Economic Development Minutes—July 27, 2006 Approved as read,will be posted. 2. EDC 2006-25 Building Permit Report for August 2006 Travis Miller reported the permit requests were up 51%in August 2006 from August 2005. 3. PC 2005-52 Kleinwachter—Preliminary Plan Attorney Dan Kramer said this plan had been before the Plan Commission and they have approved it. The only change made was in response to a request from Joe Wywrot to straighten the streets in the back. City staff has also recommended approval and this moves forward to the September 26(' City Council consent agenda. 4. PC 2006-26 Cobblestone—Preliminary PUD,Preliminary Plat and Draft Development Agreement The Plan Commission has recommended approval according to Attorney Kramer. He is working with City Staff on the Rte. 34 entrances. A requested parking variance is expected to be allowed. The City is also considering a right-of-way and utility easement and possible lighting at the Rt. 34 entrance will be subject to an IDOT review. This item moves to the September 26`°consent agenda. 5. PC 2006-50 Prairie Pointe—Preliminary Plan and Final Plat Peter Huinker of Smith Engineering reported this plan had received a positive recommendation from the Plan Commission. The development is a 4-lot commercial site behind the new Post Office. It is expected to be built by March 31". Travis Miller said that Crimson Lane is on the south edge of that site and he said it is hoped that eventually the Post Office will exit onto Crimson rather than Parkway. The Staff is recommending a cross access easement and the Post Office will make the final determination. This item moves to the September 26a'consent agenda subject to items 3 &4 in Mr. Miller's report. Page 3 of 9 6. PC 2006-57 Prestwick of Yorkville Unit 2—Final Plat This is Phase 2 of Prestwick and is located at Rte. 126 and Ashley Road. The Plan Commission has given unanimous approval with some further engineering comments to come. Travis Miller said the plan meets with staff approval. This moves forward to the City Council September 26a' consent agenda. 7. PC 2006-63%ndallwood Estates—Final Plat Attorney John Philipchuck was present on behalf of Kendallwood Estates. He gave an overview of this development and said the site is 50 acres with 83 single-family homes. They are currently working on a second access that would be off Rte. 26 with the primary access off Van Emmon. Alderman James asked about a bike trail in this development. Mr. Miller replied that Corn Ed approval would be needed and it is hoped this approval will be granted. The contractor would then be asked to construct this trail or provide an estimate for one. With many trucks in and out due to construction,Alderman Besco expressed concern about Van Emmon being able to handle the weight of the trucks. Mr. Philipchuck said a temporary access could be secured off Rte. 126 and the Mayor said this could remain until permanent access is approved. Language can be added in the documents allowing this action, according to Attorney Wyeth. This matter moves to the consent agenda of September 26a', subject to staff comments. 8. PC 2006-05 Bristol Ridge—Annexation,Zoning and Preliminary Plan Kevin Carrara spoke on behalf of this development. He concurred with the agreement and added that City staff wished to discuss the provision for recapture for the Galena watermain extension. Mr. Miller requested a cash donation rather than land donation for the schools. This moves to the September 26 Council meeting for a vote. 9. PD 2005-4 Schramm—Annexation and Zoning Travis Miller said the City wishes to annex this property that is located south of Rte. 30 and east of Rte. 47 and is comprised of 182 acres. This property would have a mixed use with R-4 zoning. The proposed residential density is 5.16 units per acre and at the time discussions began, 12 units per acre were allowed. Alderwoman Spears took issue with the density saying it was almost double that allowed now. However, the Mayor said this agreement has been on the books for a long time and this density is a compromise. Other comments included: 1. The townhomes look the same, various elevations should be explored 2. Other developers had to absorb extra costs in relation to the proposed density 3. Gateway to City should have a more aesthetic look than row after row of townhomes 4. A landscape buffer was suggested for a more pleasing look This moves to the City Council agenda on September 26`x', however, not on the consent agenda. Page 4of9 10. PC 2006-61 GCMProperties—Special Use Request This request is for a daycare facility for 20 children with 2 staff members. It is scheduled for a Public Hearing September 25th and will be placed on the September 26th Council agenda pending the outcome. IL PC 2006-78 Westhaven—Lakewood Homes—PUD Amendment Request Kurt Wandrey, Sr. Vice President of Lakewood Homes, contract owner of this property, gave an overview of this property and the company. He introduced Jim Truesdell,Director of Planning& Zoning of Lakewood Homes. He said his company is taking over what was the former Del Webb development. Mr. Truesdell provided an overview of the development and the types of housing that would be built. There is a total of 312 acres, 5 units per acre and an overall density of 3.2 units per acre. The main entrance will be off Galena Road while the development itself, will be served by a ring road. Housing prices would range from$200,000 to $300,000. Alderman James commented that he likes the single-family homes and the senior community that will have a low impact. While it is age-restricted, some of the impact fees will be used for a 15.2- acre school on a non-age restricted portion. The average age will be 60 with a range of 2-3% young residents being allowed. There was brief discussion on the construction access off Galena into the commercial area. The Mayor reminded the developer that in the previous development discussions, the residents would later decide if that access would be kept. Mr. Wandrey said he would like to see it become permanent. The following facts were also noted: there will be no SSA's in this development,watermains will be underground and the streets will not be City responsibility. City staff also recommends a provision to allow access to the property to conduct shallow well resource analysis and the Mayor concurred. This item will move to the October 10th City Council meeting. 12. PC 2006-37 O'Keefe Property—Annexation Attorney John Philipchuck represented this property that is located at the southeast comer of Comeils Road and Rte. 47. The annexation agreement and zoning petition was before the committee and Travis Miller reported that City staff recommended approval of the September 12th document. This item moves forward to the September 26t°City Council. 13. PC 2006-34 Kendall Marketplace—Rezoning Travis Miller said this is the ordinance for rezoning and grants entitlement. The PUD has already been completed. This moves to the City Council consent agenda for September 26th. 14. EDC2006-19 South Area Joint Engineering Funding Agreement Some re-calculations need to be completed for this project and it is hoped that the documents will be completed and turned in by week's end. Front-funding has been requested for YBSD and the estimated cost for engineering is $1.9 million. This will be placed on a future agenda. Page 5 of 9 15. EDC 2006-23 Amend SSA Policy Attorney Wyeth was asked to provide language for SSA's and asked for comments. Ms. Burd asked for a definition of"local"radius of miles. The Mayor explained that it would be within the City limits. Further clarification suggested using the language"companies within City limits" and that they should be treated more favorably. Ms. Burd added that any developer who asks for an SSA should be willing to enter into this agreement. This item will return to EDC on October 17`h (next agenda item out of sequence) ADDITIONAL BUSINESS: Alderwoman Burd asked to discuss additional business next on the agenda. She said she tried to obtain employee phone records from the Finance Department,however, had received a memo that stated those records were sensitive material that were only viewable at the Attorney's office. She asked why it had taken so long to get a reply. Ms. Mika replied that responses were needed from other department heads as well as authorization from the Attorney. Mr. Wyeth stated that these records involve City employee names and could result in employment law issues. Ms. Burd countered that information she got from a website state that those phone records and a-mails are public record. She said that there is a problem of getting information to all Aldermen. Mayor Prochaska said that no one is hying to hide information. He added that he would likely issue a memo to employees that they have no expectation of privacy in such matters. Ms. Burd also said that the City Council should determine what information is given to the press and should set a policy. Alderman Munns said that appointments should not be necessary to obtain City information while Alderman Besco said the public perceives secrecy as wrongdoing and that the City Council should determine what is released. A former department head was allowed to purchase a City phone according to Ms. Spears,who also wondered who had given that permission and what the cost of the phone was. Mr. Crois said the former employee was allowed to use the phone prior to Finance Director Mika's arrival. Ms. Spears suggested that reimbursement should be made. This item will move forward to City Council on the September 26`h agenda. Mayor Prochaska said the owner of a horse farm near Grand Reserve school had approached him regarding fencing. That owner said students from the school are able to get near the horses and could be injured. The City is researching a compromise and a suggestion was made that the fencing be opaque. Alderman Munns suggested that the City develop an inventory system. Small items under$500 are not recommended as part of the inventory system. Currently, a rotation replacement policy is also being reviewed by the City. A large database would be needed to track equipment via the budget and tagging systems are reportedly very expensive. At the conclusion of the discussion, Alderman Besco suggested researching how other municipalities track their property. Page 6 of 9 (retum to agenda sequence) PUBLIC WORKS 1. PW 2006-146 Water Department Report for June 2006 No comment, moves to City Council consent agenda. 2. PW 2006-147 Water Department Report for July 2006 No comment,moves to City Council consent agenda. 3. PW 2006-148IDOT Highway Permit and Resolution — Walnut Plaza This grants a right in/right out entrance to Rt. 47 north of Walnut Street. It will be forwarded to the Council consent agenda. 4. PW 2006-149 IDOT Highway Permit and Resolution—SP Amoco 5. PW 2006-150IDOT Highway Permit and Resolution —Fountain Village The City will oversee both of these projects and both move to the consent agenda. 6. PW 2006-151 Prestwick (Unit 1)—Earthwork Letter of Credit Reduction #2 A letter of credit reduction of$186,805.62 was recommended by Mr. Wywrot. It moves to the Council consent agenda. 7. PW 2006-152 Prestwick (Unit I)—Sitework Letter of Credit Reduction #3 A letter of credit reduction in the amount of$931,309.18 was recommended by Joe Wywrot. This moves forward to consent agenda. 8. PW 2006-153 Raintree Village Unit 6— Theoretical Construction Guarantee Reduction No. 2 Though the final plat has not been recorded yet, a theoretical reduction of$761,177.11 was recommended. It moves to the consent agenda. 9. PW 2006-154 River's Edge Subdivision Unit 1 — Warranty Letter of Credit Expiration The City Attorney was authorized to send a letter that the warranty letter of credit expires on December 1"with some items not being completed. This moves to the consent agenda. 10. PW 2006-155 Galena Road Watermain— Change Order #1 This change order was for additional pipe and valves to increase the length of pipe under the road. This moves forward to the consent agenda. 11. PW 2006-156 Walnut Plaza—Plat of Dedication and Plat of Easement No comment, moves to consent agenda. 12. PW 2006-157 YMCA —Pool Property Construction Easement This granted a temporary construction easement for the sewer line from the old Bruell pump station to the new one. At the time of construction, the property ownership was in dispute and now the easement is no longer needed. Staff recommends that the document be accepted since the owner now has a contract for the property. This moves to the consent agenda. Page 7 of 9 13. PW 2006-158IDOT Request—Subordination of Surface Rights for Southeast Corner of Route 47 and Countryside Parkway This request is from]DOT granting them primary rights with respect to surface rights on a small piece of property near the Fox Valley Shopping News. It was noted that the City was referred to as a"Village". This document will move to the consent agenda subject to the language being changed to read"United City of Yorkville". 14. PW 2006-159 ComEd Interceptor—Easement Letter Agreement This letter amends certain terms of the 1998 easement agreement and ComEd is requesting a $16,600 payment by December 31St. This item moves forward subject to finding funds for this unbudgeted expense. 15. PW 2006-160 Yorkville Market Square—Sidewalk Agreement This is a standard agreement for sidewalk completion and moves to the Council consent agenda. 16. PW 2006-161 Garden Club Proposal for Hanging Baskets in Downtown Area Representatives of the Garden Club were present on behalf of the proposal to partner with the City to maintain flower baskets in the downtown. They reported they have 17 sponsors at this time and only asked for assistance in watering the baskets. Alderwoman Spears and Mayor Prochaska complimented the Garden Club on their hard work and thanked them for obtaining sponsors. A newsletter acknowledgement of sponsors or a windshield decal was suggested. This moves to the consent agenda. 17. PW 2006-162 Sale of Generator It was proposed to sell a surplus generator to the Village of Capron for$6500. This moves to the consent agenda. 18. PW 2006-163 Updated 6-Year Capital Improvement Program This proposed program will return to the October 17a'Public Works for further discussion. 19. PW 2006-126 Road Fee Policy Travis Miller presented a draft of a Road Fee Policy to direct the administering of those fees. The policy suggests how to collect the fees and also how they will be applied. The fees will be included in all annexation agreements, will be based on a per-dwelling unit and the amount will be determined annually. The Mayor cautioned that there was case law regarding collector roads that serve multiple areas. This will move to the consent agenda. 20. PW 2006-164 Revised Landscape Ordinance Laura Haake gave a presentation on the revised ordinance. She noted the following: 1. Some language has changed 2. Addresses height of vegetation on medians and intersections 3. Added a nuisance tree list 4. Expanded tree list from 53 to 84 5. Tree preservation portion strengthened Page 8 of 9 Attorney Wyeth said a public hearing should be held in October since these are changes to an ordinance. 21. PW2006-165 BP Amoco Redevelopment—Sidewalk Agreement This is a standard agreement allowing sidewalk along the frontage of this property and will move forward to the consent agenda. 22. PW 2006-166IDOT Highway Permit and Resolution—Speedway This is a routine resolution and allows for upgrades to the existing driveway and related improvements for this business. It moves forward to the consent agenda. CITY COUNCIL REQUESTS L Discuss Committee Liaisons This will be discussed.at the beginning of the respective committees at future C.O.W. meetings. DETAIL BOARD REPORT BILL LIST) Page 3: Raintree Village SSA: The City is collecting and dispersing these funds. Page 4: Public Salary Annual Fee: It was questioned if the City could use the Illinois Municipal League Page 24: Reliable Computer Service: This was for raingear and is likely coded incorrectly. Page 36: Police Pension Fund Real Estate Taxes: Ms. Mika will research this item The Bill List will move to the City Council agenda for consideration. PARK BOARD No Report. MAYOR L ZBA 2006-58 O'Brien—207 W. Ridge Street—Side Yard Setback Variance This item recommended Council approval to reconstruct a historic porch. Mayor Prochaska said this item would be placed on the consent agenda for consideration. 2. COW 2006-08 Ordinance Imposing A Fee, Tax or Surcharge on the Permanent Disposal of Solid Waste If a solid waste landfill is* located within the City limits,the City has the right to collect a surcharge of$1.27 per ton of disposed waste. According to the Mayor, it is only allowed once in the area and is based on whichever municipal passes the ordinance first. If the City annexes the property for the potential landfill,this ordinance would allow the City to collect this surcharge. After a very brief discussion, a motion was made by Besco and seconded by James to approve an ordinance that would allow the collection of this fee. There was no further discussion and the motion was passed unanimously on a roll call vote. Page 9 of 9 There was no Executive Session. The meeting was adjourned at 10:50pm. Minutes respectfully submitted by Marlys Young, Minute Taker C 17`l CpU/je,(L "PeT United City of Yorkville Memo 4 ' 800 Game Farm Road EST. , \ 1636 Yorkville, Illinois 60560 Telephone: 630-553-4350 ® `� Fax: 630-553-7575 CEc ASV�o�O Date: November 9, 2006 To: Mayor and Aldermen From: John Justin Wyeth, City Attorney Subject: Amended and Restated Governing Ordinance In order to have one document that is the full version of the Governing Ordinance, you will find one extra preamble at the very beginning of the document. This is the most clear and concise method of picking up small changes. Otherwise, the City would be left with two documents (the original and "amendment'that would need to be read together. Attached is a red line and clean version which contains the changes discussed at COW . The clean version contains all attachments. �CD- LInIE� V�5/oM STATE OF ILLINOIS ) as COUNTY OF KENDALL ) ORDINANCE NO.2006m Amended and Restated, Formatted:Font:12 Pt Governing Ordinance,United City of Yorkville Addressing. Ethical Standards,Elected Officials Duties and Responsibilities,Meeting Standards and Committee Structure Whereas,the City Council of the United City of Yorkville first passed a Governing Formatted:Font:Not Bold Ordinance,on June 27,2006 as Ordinance 2006-58,and intends to amend said Ordinance Formatted:left and restate it in its entirety,by this Ordinance rendering this as the full text of the Governing Ordinance of the United City of Yorkville;and Whereas,the City Council of the United City of Yorkville,in accordance with Illinois Compiled State Statutes,has the right to determine procedures for organizing and conducting all meetings of the City Council acknowledging that the City is bound by certain state and federal laws as well as legal precedents which cannot be supplanted by City Ordinance;and Whereas,in keeping with this right,the City Council has adopted Roberts Rules of Order to outline the procedure to be followed during meetings and to regulate the actions of Council members and the public in attendance at such meetings;and Whereas,the Council has determined that,to further ensure the orderly flow of information presented at its meetings and to protect the integrity of all in attendance at such meetings,it requires an additional written policy to clarify and amend Roberts Rules;and Whereas,the Council has undertaken to compile a list of ethical standards for City elected officials which the Council wishes to be included in its written policy; and Whereas,the Council also has determined that it is in the best interests of all members of the City Council and the residents of the United City of Yorkville that said policy should include guidelines that clarify the duties and rights of aldermen and the mayor as elected officials of the United City of Yorkville;and Whereas,the Council also requires said policy to officially establish standing committees of the Council and to outline procedures for the organization of said committees, including the selection of membership and chairmen of said committees,so that membership and chairmanship shall be unbiased and non-partisan,and offer all aldermen an equal opportunity to understand City business; Therefore,be it ordained as follows: I. Ethical Standards—Elected officials of the United City of Yorkville: A. Shall obey the Constitution and laws of the United States,of the State of Illinois, and the United City of Yorkville. B. Shall be dedicated to the concepts of effective and democratic local government. C. Shall strive to be trustworthy and to act with integrity and moral courage on behalf of one's constituents,so as to maintain public confidence in City government and in the performance of the public trust. D. Shall make impartial decisions,free of bribes,unlawful gifts,narrow special interests,or financial or other personal interests. E. Shall not invest or hold any investment,directly or indirectly,in any financial business,commercial or other private transaction that creates a conflict with official duties. F. Shall extend equal opportunities and due process to all parties in matters under consideration. G. Shall recognize that the chief function of local government is at all times to serve the best interests of the residents of the United City of Yorkville. H. Shall work to keep the community informed on municipal affairs,encourage communication between residents and municipal officers; emphasize friendly and courteous service to the public;and seek to improve the quality and image of public service. I. Shall work to assure that government is conducted openly,efficiently,equitably, and honorably in a manner that permits residents to make informed judgments and hold City officials accountable. J. Shall show respect for persons,confidences and information designated as "confidential". K. Shall refrain from taking any official action that would censure any other elected official,unless such member has been found guilty of a legal offense that would require such action by the City Council. L. Shall,when representing the City,pct and dress in a manner appropriate for the Deleted:an elected offirial shall function. . Deleted: A Elected Officials. shall set all cell phones,pages,PDA's or similar devises to silent mode prior to all II, meetings,and shall not communicate on such devises during any meeting. Elected Officials may excuse themselves from a Duties and Rights Of Elected Officials: meeting in order to communicate on such devices.y 9 Aldermen A. Shall,through their council votes,create the public policy that governs the United City of Yorkville,and provide oversight for the executive branch. B. Shall have the right to expect that the mayor and city's staff will provide them with clear and unbiased information to help them in their decision-making process. C. May,at their discretion,hold ward meetings in their ward,or devise other ways to better understand the wishes of their constituents. This is not meant to preclude aldermen from taking a city-wide view of the impact of an item under discussion,but to underline that aldermen are empowered to act on behalf of their constituents,and should be apprised of all items that are brought to the City that many way pertain to their Ward. It is recommended that as a courtesy the Alderman holding the meeting should contact the other alderman m the ward,in advance,about the meeting. D. Shall refrain from giving direction to any city employee. Policy is created by the entire City Council. If any alderman wishes to address any problems he or she sees occurring in the city,this problem maybe brought to the attention of the mayor,the city administrator,department directors,or taken to the council as a whole for action.Requests for information are not to be considered as "giving direction." Mayor A. Shall perform all the duties which are prescribed by law,including ordinances, and shall take care that the laws and ordinances are faithfully executed. Shall from time to time and annually,give the corporate authorities information concerning the affairs of the municipality and may recommend for their consideration measures that the mayor believes expedient.(65 ILCE 5/3.1-35- 10) B. Shall represent the City at official functions,and act as a spokesperson for the Deleted:men City.The mayor may designate any person,including alderman,city staff or others,to fill in as a spokesperson. Deleted: an C. Shall be a non-voting member of all standing committees. D. Shall make appointments to fill vacancies,with the advice and consent of the Council. lII. Meeting Standards Applicable to City Council Meetings Generally A. City Council Meetings shall be regularly scheduled to convene on the 2vd and 4 Tuesday's of each month at 7:00 PM in the City Hall Council Chambers. B. City Council Meetings shall be generally conducted according to the agenda template attached hereto. C. The Mayor,or any 3 Aldermen,may call a special meeting by submitting the request in the form of a Notice,and an Agenda for the meeting,in writing to the City Clerk The Clerk shall as soon as possible 1)deliver a copy of the Notice and Agenda to each Elected Official,2)post the Notice and Agenda at City Hall, and 3)send a copy of the Notice and Agenda to all registered news media. No special meeting shall be called for a date less than 48 hours after the Notice and agenda have been submitted to the City Clerk. The Clerk shall submit a Certification of Notice as evidence of providing the notices set out above, including all Copies of Publication to the City Council,and said Certification of Notice shall be inserted into the record of the Special Meeting.(5 ILCS 120/2.02) D. Except during the time allotted for public discussion and comment,no person, other than a member of the council,or an officer,employee,independent contractor,or other person recognized by the presiding officer,shall address the Council,except with the consent of two of the members present. E. No ordinance or resolution shall be voted on at a City Council meeting unless the item to be voted on has been presented in its final form to the Corporate Authorities at least four days prior to the vote. F. All attendees at every city council meeting shall put their cell phones,pagers, PDA's or similar devices on silent mode prior to all such meetings,and shall not communicate on such devices during any such meetings. Elected officials,and department heads may excuse themselves from a meeting in order to communicate on such devices. G.The standards concerning order of speaking and time limits set by this Governing Ordinance shall apply to all items,including motions,resolutions,ordinances or action items wherein a vote may be taken. Aldermen A. Shall have the right to place an item on any Council meeting agenda for discussion. Shall have the right to vote to suspend the rules of order(regarding the order of discussion,and time limits)to provide for an open discussion, B Shall not speak twice on an item before all other aldermen who wish to speak to the item have had an opportunity to speak once. No alderman nor mayor shall speak more than twice on any item. C. Shall,after being recognized by the chair,limit his or her remarks to five minutes for the first round;two minutes for the second round.Minutes not used shall be forfeited:minutes cannot be accumulated. D. Shall,before speaking at a meeting,first be recognized by the presiding officer, and shall address all remarks to the presiding officer,without a response from the presiding officer. E. May not move to end debate before every alderman who wishes to speak to an agenda item has had the opportunity to do so. A motion to end debate,or"call the question"shall require a two-thirds vote.(Roberts Rules(RONR(10`b Edition)page 189,Section 16) G. May appeal a ruling by the Mayor to the Council as a whole. A majority vote can overturn the Mayor's ruling. (Roberts Rules(ROHR(10a'Edition)page 247, Section 24) H. May,by a two-thirds majority vote,expel a fellow alderman from a meeting for cause,but may not do so for the same cause a second time.(65 ILCS 3.1-40-15) I. May,upon the request of any two aldermen present,defer a report of a committee to the next regular meeting of the Council. J. Shall,during a meeting,have the option to be the first and last speaker on an item if he or she has placed the item on the Council agenda. K. Shall,after being appointed as a liaison to another city organization,be responsible for keeping all Council members informed of that organization's significant activities. L. Shall limit their remarks to the question under debate.To this end,aldermen must never attack or make any allusion to the motives of aldermen. (RONR(10`s Edition)page 41,line 31) M. May,before voting,participate in a special committee of the whole meeting to review nominees that the mayor appoints when the appointment is either to fill a vacancy in an elective or appointed office that requires the advice and consent of the City Council. N. Shall elect from one of the Aldermen as Mayor Pro Tem pursuant to the Mayor Pro Tem Policy of the United City of Yorkville,attached hereto. Mayor A. Shall preside at every regular Council meeting fulfilling the normal and customary functions of the chairman of the meeting;in his absence the elected mayor-pro-tern shall preside. At ad hoc committee meetings of the Council,the chairman of the committee shall preside. B. Shall preserve order and decorum,may speak to points of order in preference to aldermen,and shall decide all questions of order,subject to appeal.In the case of disorderly conduct,the mayor shall have the power to request that the Council Chambers be cleared. C. Shall appoint the City Attorney to be parliamentarian of the Council. D. May,without relinquishing the chair,voice his opinion on items before the City Council,in keeping with time limitations. The mayor shall,immediately after stating the item under discussion,ask the alderman who has requested an item to be placed on the agenda if he or she wishes to introduce the item or the applicable Committee Chairman if no particular alderman has requested that the item be placed upon the agenda. The mayor shall recognize this alderman as the last one to speak to the item if the alderman requests to do so. Shall not allow any aldermen to speak more than twice on any item;shall not allow accumulation of minutes that have been forfeited. E.Shall,during debate,limit each alderman's chance to speak to five minutes the first time on each agenda item,and two minutes for rebuttal. The mayor,if he chooses to state his opinion,shall not speak more than five minutes on the issue. F. Shall recognize each alderman wishing to speak to an agenda item in turn, rotating different sides of the question,pro and con,as much as possible,and not allowing any one alderman to speak twice before all aldermen who wish to speak can do so. He shall give preference first to an alderman who has placed the item under discussion on the Council's agenda. G. Shall insure that any information he makes available to aldermen on an agenda item is given to all aldermen in the same timely fashion,so that all aldermen can make informed decisions. It is the mayor's responsibility to insure that any item brought to the mayor's attention that pertains to a project or problem in a City Ward should be brought immediately to the attention of that Ward's two aldermen. H. Shall not vote on any ordinance,resolution or motion except: i.When the vote of the alderman has resulted in a tie; ii.When one-half of the aldermen elected have voted in favor of an ordinance,resolution or motion even though there is not tie;and iii. When a vote greater than a majority of the corporate authorities is required. (65 ILCS 5/3.1-40-30) IV. The Standing Committees of the City Council: A. Shall include the Public Works,Public Safety,Administration,and Economic Development Committees. B. Shall have their meetings incorporated into the Committee of the Whole meetings of the City Council,and be placed on the COW agenda in the following manner: 1. Public Safety and Administration on the First Tuesday of each month as needed; 2. Economic Development and Public Works on the Third Tuesday of each month as needed; C. Shall be presided over by its chairman,who will conduct the business of the meeting,then adjourn and yield the floor back to the Mayor,who presides over the COW meetings. D. Shall include all members of the City Council,including the Mayor. The Mayor is a non-voting member of each committee. E. Shall have four chairmen and four vice-chairmen who will serve one-year terms. No alderman shall hold two such positions at the same time,ensuring that all aldermen shall hold one such position. Chairmen shall,following each election, be selected according to seniority on the City Council,with the four longest- serving alderman offered,in tam according to seniority,their choice of the chairmanships,and the four minority members,by the same method,offered their choice of vice-chairmanships. At the conclusion of the year,the vice chairmen shall assume the chairmanship of their committees,with the former chairmen moving into vice chairmanship positions on new committees in the following manner:Public Safety to Economic Development;Economic Development to Administration;Administration to Public Works;Public Works to Public Safety. . F. Shall have the sole power to assign liaisons to those city organizations that fall under that committee's specific area of business listed in the City Council agenda as follows: Public Works: Park Board,YBSD Economic Development Chamber of Commerce,Kendall County Econ. Dev.,Plan Commission,Bristol Plan Comm. Yorkville Econ.Dev.Corp.,Aurora Area Conv. &Tourism Council,Downtown Re-development Public Safety Human Resource Comm., School District, KenCom Administration Metra,Library,Cable Consortium NOW THEREFORE,upon Motion duly made,seconded and approved by the majority of those members of the City Council voting,the following action is hereby taken by the City Council of the United City of Yorkville: JAMES BOCK JOSEPH BESCO VALERIE BURD PAUL JAMES DEAN WOLFER MARTY MUNNS ROSE SPEARS JASON LESLIE Approved by me,as Mayor of the United City of Yorkville,Kendall County, Illinois,this Day of A.D.2006. MAYOR Passed by the City Council of the United City of Yorkville,Kendall County, Illinois this day of A.D. 2006. ATTEST: CITY CLERK Prepared by: John Justin Wyeth City Attorney United City of Yorkville 800 Game Farm Road Yorkville,IL 60560 CLEAd VF-kS 104 STATE OF ILLINOIS ) )ss COUNTY OF KENDALL ) ORDINANCE NO.2006- Amended and Restated Governing Ordinance,United City of Yorkville Addressing. Ethical Standards,Elected Officials Duties and Responsibilities, Meeting Standards and Committee Structure Whereas, the City Council of the United City of Yorkville first passed a Governing Ordinance, on June 27, 2006 as Ordinance 2006-58, and intends to amend said Ordinance and restate it in its entirety, by this Ordinance rendering this as the full text of the Governing Ordinance of the United City of Yorkville; and Whereas,the City Council of the United City of Yorkville, in accordance with Illinois Compiled State Statutes,has the right to determine procedures for organizing and conducting all meetings of the City Council acknowledging that the City is bound by certain state and federal laws as well as legal precedents which cannot be supplanted by City Ordinance; and Whereas, in keeping with this right,the City Council has adopted Roberts Rules of Order to outline the procedure to be followed during meetings and to regulate the actions of Council members and the public in attendance at such meetings; and Whereas,the Council has determined that, to further ensure the orderly flow of information presented at its meetings and to protect the integrity of all in attendance at such meetings, it requires an additional written policy to clarify and amend Roberts Rules; and Whereas, the Council has undertaken to compile a list of ethical standards for City elected officials which the Council wishes to be included in its written policy; and Whereas, the Council also has determined that it is in the best interests of all members of the City Council and the residents of the United City of Yorkville that said policy should include guidelines that clarify the duties and rights of aldermen and the mayor as elected officials of the United City of Yorkville; and Whereas, the Council also requires said policy to officially establish standing committees of the Council and to outline procedures for the organization of said committees, including the selection of membership and chairmen of said committees, so that membership and chairmanship shall be unbiased and non-partisan, and offer all aldermen an equal opportunity to understand City business; Therefore,be it ordained as follows: I. Ethical Standards—Elected officials of the United City of Yorkville: A. Shall obey the Constitution and laws of the United States, of the State of Illinois, and the United City of Yorkville. B. Shall be dedicated to the concepts of effective and democratic local government. C. Shall strive to be trustworthy and to act with integrity and moral courage on behalf of one's constituents, so as to maintain public confidence in City government and in the performance of the public trust. D. Shall make impartial decisions, free of bribes, unlawful gifts, narrow special interests, or financial or other personal interests. E. Shall not invest or hold any investment, directly or indirectly, in any financial business, commercial or other private transaction that creates a conflict with official duties. F. Shall extend equal opportunities and due process to all parties in matters under consideration. G. Shall recognize that the chief function of local government is at all times to serve the best interests of the residents of the United City of Yorkville. H. Shall work to keep the community informed on municipal affairs, encourage communication between residents and municipal officers; emphasize friendly and courteous service to the public; and seek to improve the quality and image of public service. I. Shall work to assure that government is conducted openly, efficiently, equitably, and honorably in a manner that permits residents to make informed judgments and hold City officials accountable. J. Shall show respect for persons, confidences and information designated as "confidential". K. Shall refrain from taking any official action that would censure any other elected official,unless such member has been found guilty of a legal offense that would require such action by the City Council. L. Shall,when representing the City, act and dress in a manner appropriate for the function. II. Duties and Rights of Elected Officials: Aldermen A. Shall, through their council votes, create the public policy that governs the United City of Yorkville, and provide oversight for the executive branch. B. Shall have the right to expect that the mayor and city's staff will provide them with clear and unbiased information to help them in their decision-making process. C. May, at their discretion,hold ward meetings in their ward, or devise other ways to better understand the wishes of their constituents. This is not meant to preclude aldermen from taking a city-wide view of the impact of an item under discussion,but to underline that aldermen are empowered to act on behalf of their constituents, and should be apprised of all items that are brought to the City that in any way pertain to their Ward. It is recommended that as a courtesy the Alderman holding the meeting should contact the other alderman in the ward,in advance, about the meeting. D. Shall refrain from giving direction to any city employee. Policy is created by the entire City Council. If any alderman wishes to address any problems he or she sees occurring in the city, this problem may be brought to the attention of the mayor, the city administrator, department directors, or taken to the council as a whole for action. Requests for information are not to be considered as "giving direction." Mayor A. Shall perform all the duties which are prescribed by law, including ordinances, and shall take care that the laws and ordinances are faithfully executed. Shall from time to time and annually, give the corporate authorities information concerning the affairs of the municipality and may recommend for their consideration measures that the mayor believes expedient. (65 ILCE 5/3.1-35- 10) B. Shall represent the City at official functions, and act as a spokesperson for the City. The mayor may designate any person, including alderman, city staff or others,to fill in as a spokesperson. C. Shall be a non-voting member of all standing committees. D. Shall make appointments to fill vacancies,with the advice and consent of the Council. III. Meeting Standards Applicable to City Council Meetings Generally A. City Council Meetings shall be regularly scheduled to convene on the 2nd and 4`h Tuesday's of each month at 7:00 PM in the City Hall Council Chambers. B. City Council Meetings shall be generally conducted according to the agenda template attached hereto. C. The Mayor, or any 3 Aldermen, may call a special meeting by submitting the request in the form of a Notice, and an Agenda for the meeting,in writing to the City Clerk. The Clerk shall as soon as possible 1) deliver a copy of the Notice and Agenda to each Elected Official, 2)post the Notice and Agenda at City Hall, and 3) send a copy of the Notice and Agenda to all registered news media. No special meeting shall be called for a date less than 48 hours after the Notice and agenda have been submitted to the City Clerk. The Clerk shall submit a Certification of Notice as evidence of providing the notices set out above, including all Copies of Publication to the City Council, and said Certification of Notice shall be inserted into the record of the Special Meeting. (5 ILCS 120/2.02) D. Except during the time allotted for public discussion and comment, no person, other than a member of the council, or an officer, employee, independent contractor, or other person recognized by the presiding officer, shall address the Council, except with the consent of two of the members present. E. No ordinance or resolution shall be voted on at a City Council meeting unless the item to be voted on has been presented in its final form to the Corporate Authorities at least four days prior to the vote. F. All attendees at every city council meeting shall put their cell phones,pagers, PDA's or similar devices on silent mode prior to all such meetings, and shall not communicate on such devices during any such meetings. Elected officials, and department heads may excuse themselves from a meeting in order to communicate on such devices. G. The standards concerning order of speaking and time limits set by this Governing Ordinance shall apply to all items, including motions,resolutions, ordinances or action items wherein a vote may be taken. Aldermen A. Shall have the right to place an item on any Council meeting agenda for discussion. Shall have the right to vote to suspend the rules of order(regarding the order of discussion, and time limits) to provide for an open discussion_ B Shall not speak twice on an item before all other aldermen who wish to speak to the item have had an opportunity to speak once. No alderman nor mayor shall speak more than twice on any item. C. Shall, after being recognized by the chair, limit his or her remarks to five minutes for the first round; two minutes for the second round. Minutes not used shall be forfeited: minutes cannot be accumulated. D. Shall,before speaking at a meeting, first be recognized by the presiding officer, and shall address all remarks to the presiding officer, without a response from the presiding officer. E. May not move to end debate before every alderman who wishes to speak to an agenda item has had the opportunity to do so. A motion to end debate, or"call the question" shall require a two-thirds vote. (Roberts Rules (RONR(l 0a` Edition)page 189, Section 16) G. May appeal a ruling by the Mayor to the Council as a whole. A majority vote can overturn the Mayor's ruling. (Roberts Rules (RONR(10`x`Edition)page 247, Section 24) H. May,by a two-thirds majority vote, expel a fellow alderman from a meeting for cause,but may not do so for the same cause a second time. (65 ILCS 3.1-40-15) I. May, upon the request of any two aldermen present, defer a report of a committee to the next regular meeting of the Council. J. Shall, during a meeting,have the option to be the first and last speaker on an item if he or she has placed the item on the Council agenda. K. Shall, after being appointed as a liaison to another city organization,be responsible for keeping all Council members informed of that organization's significant activities. L. Shall limit their remarks to the question under debate. To this end, aldermen must never attack or make any allusion to the motives of aldermen. (RONR(1 Ott Edition)page 41, line 31) M. May,before voting, participate in a special committee of the whole meeting to review nominees that the mayor appoints when the appointment is either to fill a vacancy in an elective or appointed office that requires the advice and consent of the City Council. N. Shall elect from one of the Aldermen as Mayor Pro Tem pursuant to the Mayor Pro Tem Policy of the United City of Yorkville, attached hereto. Mayor A. Shall preside at every regular Council meeting fulfilling the normal and customary functions of the chairman of the meeting;in his absence the elected mayor-pro-tem shall preside. At ad hoc committee meetings of the Council, the chairman of the committee shall preside. B. Shall preserve order and decorum,may speak to points of order in preference to aldermen, and shall decide all questions of order, subject to appeal. In the case of disorderly conduct,the mayor shall have the power to request that the Council Chambers be cleared. C. Shall appoint the City Attorney to be parliamentarian of the Council. D. May, without relinquishing the chair,voice his opinion on items before the City Council,in keeping with time limitations. The mayor shall,immediately after stating the item under discussion, ask the alderman who has requested an item to be placed on the agenda if he or she wishes to introduce the item or the applicable Committee Chairman if no particular alderman has requested that the item be placed upon the agenda. The mayor shall recognize this alderman as the last one to speak to the item if the alderman requests to do so. Shall not allow any aldermen to speak more than twice on any item; shall not allow accumulation of minutes that have been forfeited. E. Shall, during debate,limit each alderman's chance to speak to five minutes the first time on each agenda item, and two minutes for rebuttal. The mayor, if he chooses to state his opinion, shall not speak more than five minutes on the issue. F. Shall recognize each alderman wishing to speak to an agenda item in turn, rotating different sides of the question,pro and con, as much as possible, and not allowing any one alderman to speak twice before all aldermen who wish to speak can do so. He shall give preference first to an alderman who has placed the item under discussion on the Council's agenda. G. Shall insure that any information he makes available to aldermen on an agenda item is given to all aldermen in the same timely fashion, so that all aldermen can make informed decisions. It is the mayor's responsibility to insure that any item brought to the mayor's attention that pertains to a project or problem in a City Ward should be brought immediately to the attention of that Ward's two aldermen. H. Shall not vote on any ordinance, resolution or motion except: i.When the vote of the alderman has resulted in a tie; ii. When one-half of the aldermen elected have voted in favor of an ordinance,resolution or motion even though there is not tie; and iii. When a vote greater than a majority of the corporate authorities is required. (65ILCS 5/3.1-40-30) IV. The Standing Committees of the City Council: A. Shall include the Public Works, Public Safety, Administration, and Economic Development Committees. B. Shall have their meetings incorporated into the Committee of the Whole meetings of the City Council, and be placed on the COW agenda in the following manner: 1. Public Safety and Administration on the First Tuesday of each month as needed; 2. Economic Development and Public Works on the Third Tuesday of each month as needed; C. Shall be presided over by its chairman,who will conduct the business of the meeting,then adjourn and yield the floor back to the Mayor,who presides over the COW meetings. D. Shall include all members of the City Council,including the Mayor. The Mayor is a non-voting member of each committee. E. Shall have four chairmen and four vice-chairmen who will serve one-year terms. No alderman shall hold two such positions at the same time, ensuring that all aldermen shall hold one such position. Chairmen shall, following each election, be selected according to seniority on the City Council, with the four longest- serving alderman offered,in turn according to seniority, their choice of the chairmanships, and the four minority members,by the same method, offered their choice of vice-chairmanships. At the conclusion of the year, the vice chairmen shall assume the chairmanship of their committees, with the former chairmen moving into vice chairmanship positions on new committees in the following manner: Public Safety to Economic Development; Economic Development to Administration; Administration to Public Works;Public Works to Public Safety. . F. Shall have the sole power to assign liaisons to those city organizations that fall under that committee's specific area of business listed in the City Council agenda as follows: Public Works: Park Board,YBSD Economic Development Chamber of Commerce, Kendall County Econ. Dev., Plan Commission, Bristol Plan Comm. Yorkville Econ. Dev. Corp., Aurora Area Conv. &Tourism Council ,Downtown Re-development Public Safety Human Resource Comm., School District, KenCom Administration Metra, Library, Cable Consortium NOW THEREFORE,upon Motion duly made, seconded and approved by the majority of those members of the City Council voting,the following action is hereby taken by the City Council of the United City of Yorkville: JAMES BOCK JOSEPH BESCO VALERIE BURD PAUL JAMES DEAN WOLFER MARTY MUNNS ROSE SPEARS JASON LESLIE Approved by me, as Mayor of the United City of Yorkville,Kendall County, Illinois,this Day of A.D. 2006. MAYOR Passed by the City Council of the United City of Yorkville,Kendall County, Illinois this day of A.D. 2006. ATTEST: CITY CLERK Prepared by: John Justin Wyeth City Attorney United City of Yorkville 800 Game Farm Road Yorkville, IL 60560 `,`Eq CET` Z, 4 �, United City of Yorkville 800 Game Farm Road esr. , 7836 Yorkville, Illinois 60560 < Telephone: 630-553-4350 Fax: 630-553-7575 LE y`Z ' AGENDA CITY COUNCIL MEETING CITY COUNCIL CHAMBERS 7:00 PM Date Call to Order: 7:00 p.m. Pledge of Allegiance: Roll Call by Clerk: WARD I WARD H WARD III WARD IV Paul James Valerie Burd Marty Munns Joe Besco Jason Leslie Dean Wolfer James Bock Rose Ann Spears Establishment of Quorum: Introduction of Guests: Amendments to Agenda: Committee Meeting Dates: Public Works Committee Meetin¢: Ad-hoc: Technology Committee 7:00 p.m., Date 6:30 p.m., Date City Hall Conference Room City Hall Conference Room Economic Development Committee: 7:00 p.m., Date City Hall Conference Room Administration Committee Meeting: 6:30 p.m., Date City Hall Conference Room Public Safety Committee Meetine: 6:30 p.m., Date City Hall Conference Room Presentations: City Council Meeting Agenda Date Page 2 -------------------------------------—-------------------------—--------------------- Public Hearings: ------------------------------------------------------------------ —--------------------- ------------------------- Citizen Comments: Consent Agenda: Plan Commission/Zoning Board of Appeals: Minutes for Approval (Corrections and Additions): Minutes of City Council- Minutes of Committee of the Whole- Bill payments for approval from the current Bill List (Corrections and Additions): Checks total these amounts: $ (vendors) $ (payroll period ending) $ (total) Reports: Mayor's Repo City Council Report: City Attorney's Roo City Clerk's Report: City Treasurer's Report: City Administrator's Repo Finance Director's Report: Director of Public Works Report: Chief of Police Report: Director of Parks & Recreation Report: Community Development Director Report: Community& Liaison Report: City Council Meeting Agenda Date Page 3 Committee Reports: Public Works Committee Report: Economic Development Committee Report: Public Safety Committee Report: Administration Committee Report: Additional Business: Executive Session: Adjournment: COMMITTEES,MEMBERS AND RESPONSIBILITIES �ruBilc wo s -------- Committee Departments Liaisons Chairman: Alderman Besco Water and Sewer Park Board Committee: Alderman Munns Streets and Alleys YBSD Committee: Alderman Wolfer Sanitation and Waste Committee: Alderman James ECONONIIC DEV_E_LOPMEN= Committee Departments Liaisons Chairman: Alderman Munns Planning&Building&Zoning Chamber of Commerce Committee: Alderwoman Burd Business &Economic Dev. Kendall County Econ. Dev. Committee: Alderman Besco Plan Commission Committee: Alderman Leslie Bristol Plan Commission Yorkville Econ. Dev. Corp. Aurora Area Convention& Tourism Council Downtown Re-development PUBLIC SAFETY_ Committee Departments Liaisons Chairman: Alderwoman Spears Police Human Resource Comm. Committee: Alderman Wolfer Schools School District Committee: Alderman Leslie Public Relations KenCom Committee: Alderman Bock City Council Meeting Agenda Date Page 4 COMMITTEES, MEMBERS AND RESPONSIBILITIES (con't) MINISTRATION Committee Departments Liaisons Chairman: Alderman James Finance Metra Committee: Alderwoman Spears Public Properties Library Committee: Alderwoman Burd Personnel Cable Consortium Committee: Alderman Bock D-HOC: TECHNOLOG Committee Co-Chairman: Alderman Wolfer Co-Chairman: Alderman Bock United City of Yorkville Mayor Pro Tem Policy — Approved 2/22/05 MAYOR PRO TEM. (A) There is created the office of Mayor Pro Tem for the City. (B) In the event of a temporary absence, or a disability causing the Mayor of the City to be incapacitated from the performance of his duties,but which by law does not create a vacancy in the office of Mayor, the Council of Alderpersons shall elect one of its members to act as Mayor Pro Tem. The Mayor Pro Tem, during the absence or disability of the Mayor, shall perform the duties and possess all the rights and powers of the Mayor. (C) The selection of a Mayor Pro Tem shall be made on an annual basis at the first City Council meeting in May. The Council of Alderpersons shall vote to elect one of its members Mayor Pro Tem. No member may be elected as Mayor Pro Tem for two consecutive years. However,the Mayor Pro Tem shall not act as Mayor Pro Tem unless and until the Mayor is temporarily absent or is disabled to an extent so as to incapacitate him from the performance of his duties. (D) In the event the Mayor fails to attend a meeting of the City Council, the Mayor Pro Tem shall act as a temporary chairman for the meeting of the City Council, and while so serving as temporary chairman, shall have only the power of a presiding officer and a right to vote in his capacity as Alderperson on any ordinance, resolution, or motion. Statutory reference: Mayor pro tem, see ILCS Ch. 65, Act 5 § 3.1-35-35 C I TV CDUdClL & T cep 0 United City of Yorkville Memo a 1 10 800 Game Farm Road Esc , ,say Yorkville, Illinois 60560 �l Telephone: 630-553-4350 09 � p� Fax: 630-553-7575 <ILE �by� Date: November 9, 2006 To: Mayor and Aldermen From: John Justin Wyeth, City Attorney Subject: Freedom of Information Act, Dissemination of Information Policy Please find attached both a red lined and clean copy of the Policy. Staff was asked to make common sense changes to the Policy including reference to the applicable sections of the Freedom of Information Act. Since there are numerous citations to the Freedom of Information Act, a copy of it is also provided for you convenient reference. STATE OF ILLINOIS ) )ss COUNTY OF KENDALL ) RESOLUTION NO. 2006- RESOLUTION APPROVING FREEDOM OF INFORMATION ACT, DISSEMINATION OF INFORMATION POLICY WHEREAS,the City Council of the United City of Yorkville has considered and discussed establishing a policy concerning the Freedom of Information Act, Dissemination of Information Policy, and WHEREAS, the City Council has determined that it desires to establish such a policy, and WHEREAS,the text of the policy the City Council now desires to establish concerning the Freedom of Information Act,Dissemination of Information Policy is set forth on the attached Exhibit"A"which is incorporated herein, and NOW THEREFORE, upon Motion duly made, seconded and approved by the majority of those members of the City Council voting,the Freedom of Information Act, Dissemination of Information Policy is hereby approved by the City Council of the United City of Yorkville in the form set forth on Exhibit"A" attached hereto and incorporated herein. JAMES BOCK JOSEPH BESCO VALERIE BURD PAUL JAMES DEAN WOLFER MARTY MUNNS ROSE SPEARS JASON LESLIE Approved by me, as Mayor of the United City of Yorkville, Kendall County, Illinois,this day of . A.D. 2006. MAYOR Passed by the City Council of the United City of Yorkville,Kendall County, Illinois this day of .A.D. 2006. ATTEST: CITY CLERK Prepared by: John Justin Wyeth City Attorney United City of Yorkville 800 Game Faun Road Yorkville, IL 60560 United City of Yorkville Freedom of Information Act Dissemination of Information Policy The people of the United States and of the State of Illinois have a recognized common law right to inspect and copy public records so that they can fulfill their public duty to discuss public issues fully and freely,make informed political judgments,and monitor government to ensure that it is being conducted in the public interest. A. Recognizing this right,and further,in keeping with the policy of the Illinois General Assembly that government should be open to the scrutiny of the people it serves, the Corporate Authorities of the United City of Yorkville have set forth the following guidelines for the dissemination of information within the municipality(65 ILCS 140/1): 1. Unless specifically mentioned in subsequent sections dealing with information that can be legally withheld pursuant to the Illinois Freedom of Information Act(FOIA),all public records dealing with the official acts and policies of the United City of Yorkville and its Corporate Authorities,elected and appointed officials,and staff shall be made available to the public for inspection and copying. 2. For this policy,the term public record shall include,but is not limited to, reports, forms,writings,letters,memoranda,books,papers,maps, photographs,microfilms,cards,tapes,recordings,electronic data processing records,recorded information,bills pertaining to City-owned cell and land phone,emails generated on City-owned computers,and all other documentary information having been prepared or having been or being used,received, possessed or under the control of the United City of Yorkville,and as further defined in FOIA(65 ILCS 140/2(c). 3. All names of City personnel,salaries,titles and dates of employment are deemed public records. 4. It is the obligation of the United City of Yorkville to make available for inspection or copying p a requesting party pubh records in the form in which Deleted:provide they are ordinarily kept(65 ILCS 140/3(a)). Deleted: rim B. To enable the United City of Yorkville to perform certain governmental functions properly and to protect personal privacy,the following records and others specified under Section 7 of the Illinois FOIA(65 ILCS 140/7(1)(a-oo)),shall be exempt from inspection and copying,with the proviso that at all times these Deleted:will be kq)t eonfidenQ exceptions are to be read narrowly: Deleted:—v-- 1. All records that Federal or State law,rules and regulations prohibit disclosing. (65 ILCS 140/7(1)(a)) 2. Files and personal information included in personnel records,such as medical,social security,and evaluation records;files and personal information maintained with respect to professional or occupation registrants or licensees; and information required of taxpayers for tax assessment of collection purposed.(65 ILCS 140/7(1)(b)) 3. Law enforcement records that would reveal the identity of persons who file complaints with or provide information to administrative, investigative,law enforcement or penal agencies;records that,if released, would interfere with litigation or administrative law enforcement proceedings;records,that if released,would pose threats to the infrastructure or safety of the United City of Yorkville. (65 ILLS 140/7(1)(c)) Formatted:Indent:Left: 0.76" 4. Communications between an attorney or auditor,hired by the United City of Yorkville to represent its interests,that would not be subject to discovery in litigation;material compiled in anticipation of a legal proceedings and at the request of an attorney.(65 ILCS 140/7(1)(n)) 5. Records that relate to pending real estate purchases.65 ILCS/7 140(1)(s)) C. A listing of all public records generated by the United City of Yorkville since 1984 shall be displayed in a place of prominence in the public area of the City offices.(65 ILCS 140/5) D. Requests made for information should be filed on the City's FOIA form,and given or mailed to the Deputy City Clerk,who shall use all due diligence to provide such records at the earliest possible moment,but in all events not longer than seven working days after receipt of the FOIA form,unless the information has been deemed exempt from disclosure,or unless there are extraordinary circumstances. In the latter instance,up to an additional seven working days is acceptable to comply with the FOIA,but a letter must be sent to the requesting person outlining the reason for the extension and naming the date when the request will be met. (65 ILLS 140/3) E. The Deputy Clerk,if he or she believes the request may fall within an exemption, shall fill out a written form asking the City Attorney to review the FOIA request to make a determination on the matter of exemption. The City Attorney shall decide if the request,or parts of the request,are to be denied. F. All denials shall be in letter form and include the reasons for denial,and the names and titles of all persons responsible for making the denial. The letter must ` also explain that the requesting party can appeal the decision to the Mayor of the United City of Yorkville by sending the Mayor a written notice of appeal. A record of all notices of denial to provide information shall be kept in a file that is open to the public,in a place of prominence in the public area of the City offices. (65 ILCS 140/9) Formatted:Indent:Left: 0.5; G. If the Mayor is asked to review the exemption,he or she must respond to the requesting person within seven days. If the request denial is upheld,the mayor must inform the requesting person by letter,and also explain their right to file suit in the Kendall County circuit court for injunctive or declaratory relief. (65 ILCS 140/10) Formatted:Indent:Left: 0.5^ H. All records,except those deemed exempt,may be inspected at the City offices Deleted:Desks in dw Council between 8 a.m.and 4 p.m.Monday through Friday,excepting holidays when the Cha nber, City offices are closed. +Suitable space shall be provided jopeople who wish to Deleted: shall be dedieatedw jnspect or copy City records. Deleted: the use of Deleted:peruse I. A fee to cover the cost of copying records,but not to include the cost of an employee's time to research and copy the records,will be charged at the following rate: The first 20 pages are free;documents over 20 pages are j 8 gents Deleted: Is a page;tapes are$1.29 each;CDs are$0.30, Deleted:_ J. Certified copies may be obtained by contacting the Clerk's office during normal Inserted:_ business hours Deleted: Deleted: _ Inserted: Deleted:Certified copies of documents can be obtained by United City of Yorkville Freedom of Information Act Dissemination of Information Policy The people of the United States and of the State of Illinois have a recognized common law right to inspect and copy public records so that they can fulfill their public duty to discuss public issues fully and freely, make informed political judgments, and monitor government to ensure that it is being conducted in the public interest. A. Recognizing this right, and further, in keeping with the policy of the Illinois General Assembly that government should be open to the scrutiny of the people it serves, the Corporate Authorities of the United City of Yorkville have set forth the following guidelines for the dissemination of information within the municipality(65 ILCS 140/1): 1. Unless specifically mentioned in subsequent sections dealing with information that can be legally withheld pursuant to the Illinois Freedom of Information Act(FOIA), all public records dealing with the official acts and policies of the United City of Yorkville and its Corporate Authorities, elected and appointed officials, and staff shall be made available to the public for inspection and copying. 2. For this policy, the term public record shall include,but is not limited to, reports, forms, writings, letters,memoranda,books,papers,maps, photographs,microfilms, cards,tapes,recordings, electronic data processing records, recorded information,bills pertaining to City-owned cell and land phone, emails generated on City-owned computers, and all other documentary information having been prepared or having been or being used,received, possessed or under the control of the United City of Yorkville, and as further defined in FOIA (65 ILCS 140/2(c). 3. All names of City personnel, salaries,titles and dates of employment are deemed public records. 4. It is the obligation of the United City of Yorkville to make available for inspection or copying to a requesting party public records in the form in which they are ordinarily kept (65 ILCS 140/3(a)). B. To enable the United City of Yorkville to perform certain governmental functions properly and to protect personal privacy, the following records and others specified under Section 7 of the Illinois FOIA(65 ILCS 140/7 (1)(a-oo)), shall be exempt from inspection and copying, with the proviso that at all times these exceptions are to be read narrowly: 1. All records that Federal or State law,rules and regulations prohibit disclosing. (65 ILCS 140/7 (1)(a)) 2. Files and personal information included in personnel records, such as medical, social security, and evaluation records; files and personal information maintained with respect to professional or occupation registrants or licensees; and information required of taxpayers for tax assessment of collection purposed. (65 ILCS 140/7 (1)(b)) 3. Law enforcement records that would reveal the identity of persons who file complaints with or provide information to administrative, investigative, law enforcement or penal agencies; records that, if released, would interfere with litigation or administrative law enforcement proceedings;records, that if released, would pose threats to the infrastructure or safety of the United City of Yorkville. (65 ILCS 140/7 (1)(c)) 4. Communications between an attorney or auditor, hired by the United City of Yorkville to represent its interests, that would not be subject to discovery in litigation;material compiled in anticipation of a legal proceedings and at the request of an attorney. (65 ILCS 140/7 (1)(n)) 5. Records that relate to pending real estate purchases. 65 ILCS/7 140(1)(s)) C. A listing of all public records generated by the United City of Yorkville since 1984 shall be displayed in a place of prominence in the public area of the City offices. (65 ILCS 140/5) D. Requests made for information should be filed on the City's FOIA form, and given or mailed to the Deputy City Clerk,who shall use all due diligence to provide such records at the earliest possible moment,but in all events not longer than seven working days after receipt of the FOIA form,unless the information has been deemed exempt from disclosure, or unless there are extraordinary circumstances. In the latter instance,up to an additional seven working days is acceptable to comply with the FOIA,but a letter must be sent to the requesting person outlining the reason for the extension and naming the date when the request will be met. (65 ILCS 140/3) E. The Deputy Clerk, if he or she believes the request may fall within an exemption, shall fill out a written form asking the City Attorney to review the FOIA request to make a determination on the matter of exemption. The City Attorney shall decide if the request, or parts of the request, are to be denied. F. All denials shall be in letter form and include the reasons for denial, and the names and titles of all persons responsible for making the denial. The letter must also explain that the requesting party can appeal the decision to the Mayor of the United City of Yorkville by sending the Mayor a written notice of appeal. A record of all notices of denial to provide information shall be kept in a file that is open to the public, in a place of prominence in the public area of the City offices. (65 ILCS 140/9) G. If the Mayor is asked to review the exemption,he or she must respond to the requesting person within seven days. If the request denial is upheld,the mayor must inform the requesting person by letter, and also explain their right to file suit in the Kendall County circuit court for injunctive or declaratory relief. (65 ILCS 140/10) H. All records, except those deemed exempt,may be inspected at the City offices between 8 am. and 4 p.m. Monday through Friday, excepting holidays when the City offices are closed. Suitable space shall be provided to people who wish to inspect or copy City records. I. A fee to cover the cost of copying records,but not to include the cost of an employee's time to research and copy the records,will be charged at the following rate: The first 20 pages are free; documents over 20 pages are 18 cents a page; tapes are$1.29 each ; CDs are $0.30. J. Certified copies may be obtained by contacting the Clerk's office during normal business hours 74 45 GENERAL PROVISIONS 5 ILCS 140/2 120/6. Minimum requirements for home rule units might create additional restrictions on disclosure of informs- lion or other laws in Illinois might create additional obli- § 6. The provisions of this Act constitute minimum gatiom for disclosure of information to the public. enactments for home rule units; any home rule unit maay y enact an ordinance prescribing more stringent requirements P.A.8"u-1013,§ 1,eff.July 1,1984. binding upon itself which would serve to give further notice Formerly Ill.Rev.Stat1991,ch.116,1201. to the public and facilitate public access to meetings. Title of Act: tom- Laws 1957,p.2892, § 6, added by P.A. 78-448, § 1, eff.Oct. An Act is relation to access to public records and documents. P.A. that 1,1973. 83-1013,certified Dec.Z7,1983,eff.July 1,1984. any Formerly Ill.Rev.Stat1991,ch. 102,`1146. 'hic 140/1.1. Short title on in leged FREEDOM OF INFORMATION § 1.1. This Act may be cited as the Freedom of Informs- which tion Act to or ACT 140. FREEDOM OF P.A.83-1013, § 1.1,eff. July 1, 1684. Amended by P.A.8fr 'f this INFORMATION ACT 1475,Art.4, § 4-84,eff.Jan.10,1991. vexed Formerly Il1.Rev.Stat.1991,ch.116,1 201.1. Y of a Section 140/1. Public policy—Legislative intent. 140/2. Definitions ne in 140/1.1. Short title. § 2. Definitions.As used in this Act: uch a 140/2. Definitions. pang p P (a) "Public body"means any legislative, executive, admin- take 140/3. Inspection or co of ublie records; prohibition istrative, or advisory bodies of the State, state universities against granting exclusive right to access and and colleges, counties, townships, cities, villages, incorporat- dstra - disseminate public records; request procedure. ad towns school districts and all other municipal corpora- 140/4. Dissemination of information about public body. lions, boards, bureaus, committees, or commissions of this eiate 140/5. List of records available from public body. State any subsidiary bodies of any of the foregoing including hat a i 140/6. Authority to charge fees. but not limited to committees and subcommittees which are rainst 140/7. Exemptions. supported in whole or in part by tax revenue, or which 3y to 140/7.1. Receipt of benefits cr payments suspended or ter- pend tae revenue, and a School Finance Authority created s of a minted—Publication of names and addresses. expend 140/8. Nonexempt materials contained in exempt records. ands'Article lE of the School Coder"Public body"does not under include a child death review team or the Illinois Child Death a at a 140/9. Denial of request for public records—Notice. Review Teams Executive Council established under the Child 140/10. Denial of request for public records—Appeal. Death Review Team Aet2 140/11. Denial of request for public records; injunctive or (b) "Person" means any individual, corporation, partner- - ept a 'I declaratory relief. litiga- ship, firm, organization or association, acting individually or I sub- as a group. with 140/1. Public policy—Legislative intent ¢ 1. Pursuant to the fundamental philosophy of the (c) "Public records" means all records, reports, forms, >t any writings letters, memoranda, books, papers, maps, photo- o this American constitutional form of governmant,it is declared to a hs,'microfilms, cards, tapes, recordings, electronic data non is be the public policy of the State of Illinois that all persons processing records,recorded information and all other docu- are entitled to full and complete information regarding the mentary materials,regardless of physical form or character- ed by affairs of government and the official acts and policies of istics having been prepared, or having been or being used, S § 1 those who represent them sit public officials and public received,possessed or under the control of any public body. PA employees consistent with the terms of this Act Such access "Public records"includes,but is expressly not limited to: (i) i 106, s necessary to enable the people to fulfill their duties of administrative manuals,procedural rules, and instructions to PA discussing public issues fully and freely, making informed staff, unless exempted by Section 7(p) of this Act; (ii) final political judgments and monitoring government to enure opinion and orders made in the sdjjudication of rases,:exwpt that it is being conducted in the public interest an educational institation's adjudication of student or employ- This Act is not intended to be used to violate individual ee grievance or disciplinary cases; (iii)substantive rules; (iv) privacy, nor for the purpose of furthering a commercial statements and interpretations of policy which have been enterprise, or to disrupt the duly-undertaken work of any adopted by a public body; (v)final planning policies, recom- ,f this public body independent of the fulfillment of any of the fore- mendatios, and decisions; (vi) factual reports, inspection mentioned rights of the people to access to information. reports, and studies whether prepared by or for the public f PA This Act is not intended to create an obligation on the part body; (vii) all information in any account, voucher, or con- - of any public body to maintain or prepare any public record tract dealing with the receipt or expenditure of public or which was not maintained or prepared by such public body at other funds of public bodies; (viii)the names,salaries,titles, the time when this Act becomes effective, except as other- and dates of employment of all employees and officers of wise required by applicable local,State or federal law. public bodies; (ix) materials containing opinions concerning °n These restraints on information access should be seen as the rights of the state,the public, a subdivision of state or a limited exceptions to the general rule that the people have a local government,or of any private persons; (x)the name of 3f this right to know the decisions,policies,procedures,rules, star- every official and the final records of voting in all proceed- s held duds, and other aspects of government activity that affect ings of public bodies; (xi) applications for any contract, ct the the conduct of government and the lives of any or all of the permit, grant, or agreement except as exempted from diselo- ations people. The provisions of this Act shall be construed to this sure by subsection (g) of Section 7 of-this Act; (im) each end. report,document,study, or publication prepared by indepen- This Act shall be the exclusive State statute on freedom of dent consultants or other independent contractors for the information, except to the extent that other State statutes public body; (xiii)all other information required by law to be R T ifi 77 GENERAL PROVISIONS 5 ILCS 140/7 operation and the conditions described above are met,it shall fees, established and made public by the body imposing do so in writing, specifying the reasons why it would be them. ve unduly burdensome and the extent to which compliance will (b) Documents shall be furnished without charge or at a ie so burden the operations of the public body. Such a re- reduced charge, as determined by the public body, if the sponse shall be treated as a denial of the request for informs- person requesting the documents states the specific purpose to any tion. Repeated requests for the same public records by the for the request and indicates that a waiver or reduction of cept as same person shall be deemed unduly burdensome under this the fee is in the public interest Waiver or reduction of the ;ayding provision. fee is in the public interest if the principal purpose of the rson or (g) Each public body may promulgate rules and regula- request is to access and disseminate information regarding exclu- tions in conformity with the provisions of this Section per- the health, safety and welfare or the legal rights of the -ord as twining to the availability of records and procedures tope general public and is not for the principal propose of person- ' followed,including: al or commercial benefit For purposes of this subsection, its Act, (i) the times and places where such records will be made "commercial benefit" shall not apply to requests made by on who - available,and news media when the principal purpose of the request is to record (ii) the persons from whom such records maybe obtained. access and disseminate information regarding the health, ion.and PA 83-1013, § 3, eff. July I, 1984. Amended by PA 90- safety, and welfare or the legal rights of the general public. 206,§ 5,eff.July 25,1997. In setting the amount of the waiver or reduction, the public with or Formerly M.Rev.Stat.1991,ch.116,1203. body may take into consideration the amount of materials vorking requested and the cost of copying them. rovided .t 140/4. Dissemination of information about public (c) The purposeful imposition of a fee not consistent with written body subsections (6)(a) and (b) of this Act shall be considered a hall be § 4. Each public body shall Prominently display at each denial of access to public records for the purposes of judicial of its administrative or regional offices, make available for P Of this inspection and copying,and send through the mail if request- review. than 7 ed each of the following: (d) The fee for an abstract of a driver's record shall be as easons: (a)-A brief description of itself,which will include,but not provided in Section 6-118 of "The Illinois Vehicle Code", part at !. be limited to, a short summary of its purpose, a block approved September 29,1969,as amended.' quested diagram giving its functional subdivisions,the total amount of PA 83-1013, § 6, off. July 1, 1984. Amended by PA 85- its operating budget, the number and location of all of its 1357, § 1, eff. Jan. 1, 1989; P.A. 90-144, § 7, eff. July 23, ,stmtial separate offices, the approximate number of full and part 1997. time employees, and the identification and membership of and re-e- any board,commission, committee,or come![which operates Formerly III.Rev.Stat.1991,ch.116,1206. ae to in an advisory capacity relative to the operation of the public 1625 ILCS 5/6-116. body, or which exercises control over its policies or proce- in the e being € dunes, or to which the public body is required to report and 140/7. Exemptions be answerable for its operations; and § 7. Exemptions. ei (b) A brief description of the methods whereby the public gee and may request information and public records, a directory (1) The following shall be exempt from inspection and designating by titles and addresses those employees to whom copying: selosure requests for public records should be directed, and any fees (a) Information specifically prohibited from disclosure 'lY with - allowable under Section 6 of this Act by federal or State law or rules and regulations adopted by the PA 83-1013,§ 4,eff.July 1,1984. under federal or State law. ragrape Formerly Dl-Rev.Stat.1991,eh.116,1 204. (h) Information that, if disclosed, would constitute a ragra h clearly unwarranted invasion of personal privacy, unless 140/5. List of records available from public body the disclosure is consented to in writing by the individual be con- § 5. As to Pubic records prepared or received after the subjects of the information. The disclosure of information body or effective date of this Act,each public body shall maintain and that bears on the public duties of public employees and make available for inspection and copying a reasonably cur- officials shall not be considered an invasion of personal iavmg a rent list of all types or categories. of records under its ac Information exempted under this subsection (b) subject controL The list shall be reasonably detailed in order to aid privacy. G persons in obtaining access to public records pursuant to this shall include but is not limited to: ie above Act Each public body shall furnish upon request a descrip- (i) Mee and personal information maintained with re- person tion of the manner in which public records stored by means spect to clients, patients, residents, students or other specified - of electronic data processing may be obtained in a form individuals receiving social, medical, educational, voca- ne delay comprehensible to persons lacking knowledge of computer tional,fuumcial,supervisory or custodial care or services ilable or language or printout format directly or indirectly from federal agencies or public delay in P.A.83-1013,§ 51 eff.July 11 1984. bodies; diure to i Formerly M.Rev.Stat1991,ch.116,1205. (ii) personnel files and personal information main- idered a tained with respect to employees, appointees or elected 140/6. Authority to charge fees officials of any public body or applicants for those posi- eatego- § 6. Authority to charge fees. tions; request (a) Each public body may charge fees reasonably calculat- ilic body (iii) files and personal information maintained with Am b on ed to reimburse its actual cost for reproducing and certifying respect to any applicant, registrant or licensee by any . public records and for the use,by any person, of the equip- public body cooperating with or engaged in professional ":forma- ment of the ublic bod to co records. Such fees shall 'dY shall exclude the costs of any search for and review of the record, or occupational registration,licensure or discipline; 'anitY to and shall not exceed the actual cost of reproduction and (iv) information required of any taxpayer in course- -manage- certification, unless otherwise provided by State statute. tion with the assessment or collection of any tax unless tegorical R Such fees shall be imposed according to a standard scale of disclosure is otherwise required by State statute; Tden its 1 4 78 79 GENERAL PROVISIONS 5 ILCS 140/7 request of an attorney advising the public body, and (aa) Applications, related documents, and medical rec- tal invest!- materials prepared or compiled with respect to internal ords received by the Experimental Organ Transplantation audits of public bodies. Procedures Board and any and all documents or other .curity of records prepared by the Experimental Organ Transplants- (o) Information received by a primary or secondary tion Procedures Board or its staff relating to applications it -s, memo- school, college or university under its procedures for the has received. :s-pressed, evaluation of faculty members by their academic peers. (bb) Insurance or self insurance(including any intergov- a specific (p) Administrative or technical information associated ernmental risk management association or self insurance be exempt with automated data processing operations, including but pool)claims,loss or risk management information,records, y the head not limited to software,operating protocols, computer pro- data,advice or communications. this pars- i gram abstracts, file layouts, source listings, object mo- fi cers and doles,load modules,war guides,documentation pertaining (e Information and records held by the Department of do o the o all logical and physical design of computerized systems, Public Health and its authorized representatives relating employee manuals, and any other information that, if o known or suspected eases of sexually transmissible disclosed,would jeopardize the security of the system or disease or any information the disclosure of which is il udorma. its data or the security o materials exempt under this restricted under the Illinois Sexually Transmissible Dis- the trade Section ease Control Act. +d or confi- s or infor- (q) Documents or materials relating to collective negoti- under Section 30nofothe Radon Industry cLicensing exempted ct. 11 informa- ating matters between public bodies and their employees on 4002 o or representatives,except that any final contract or agree- (ee) Firm performance evaluations under Section 55 of ment Act f. ment shall be subject to inspection and copying. the Architectural,Engineering,and Land Surveying Quali- e construed i (r) Drafts,notes,recommendations and memoranda per- fieations Based Selection Act g o disclo- I twining to the financing and marketing transactions of the (ff) Security portions of system safety program plans, public body. The records of ownership, registration, investigation reports, surveys, schedules, lists, data, or t, or agree- transfer, and exchange of municipal debt obligations, and information compiled, collected, or prepared by or for the disclosed - of persons o whom payment with respect o these obli- Regional Transportation Authority under Section 2.11 of the Regional Transportation Authority Act or the St. Clair age to any gations is made. agreement (s) The records, documents and information relating o County Transit District under the Bi-State Transit Safety m is made. real estate purchase negotiations until those negotiations Act iparation of have been completed or otherwise terminated. With re- (gg) Information the disclosure of which is restricted ird or final gard to a parcel involved in a pending or actually and and exempted under Section 50 of the Illinois Prepaid reasonably contemplated eminent domain proceeding mi Taition Act. .ystems,de- der Article VII of the Code of Civil Procedure, records, (hh) Information the disclosure of which is exempted >roduced by documents and information relating o that parcel shall be under the State Officials and Employees Ethics Act. ably be ex- exempt except as may be allowed under discovery rules (ii) Beginning July 1, 1999, information that would dis- The excmp- adopted by the Illinois Supreme Court. The records, close or might lead o the disclosure of secret or confiden- ided in this documents and information relating to a real estate sale tial information, codes, algorithms, programs, or private de by news shall be exempt until a sale is consummated. keys intended to be used to create electronic or digital ;.he request- (t) Any and an proprietary information and records signatures under the Electronic Commerce Security Act dd the only related to the operation of an intergovernmental risk man- t e in my (jj) Information contained in a local emergency energy legal rights agement association or self-insurance pool or jointly self- plan submitted to a municipality in accordance with a local administered health and accident cooperative or pool. emergency energy plan ordinance that is adopted under examination (u) Information concerning a university's adjudication of Section 11-21.5-5 of the Illinois Municipal Code. on or deter- student or employee grievance or disciplinary cases,to the (kk) Formation and data concerning the distribution of a license or extent that disclosure would reveal the identity of the surcharge moneys collected and remitted by wireless carri- student or employee and information concerning any pub- ers under the wireless Emergency Telephone Safety Act. submissions, lic body's adjudication of student or employee grievances cements for or disciplinary eases, except for the final outcome of the (U) Vulnerability assessments, security measures, and ases response policies or plans that are designed to identify, c .e or in part prevent, or respond o potential attacks upon a commuii nstructed or (v) Course materials or research materials used by fac- ty's population or systems, facilities, or installations, the extent that ulty member• destruction or contamination of which would constitute a ling but not - (w) Information related solely to the internal personnel clear and present danger to the health or safety of the cl ities,sport rules and practices of a public body. community, but only to the extent that disclosure could ment owned, (x) Information contained in or related to examination, reasonably be expected to jeopardize the effectiveness of operating, or condition reports prepared by, on behalf of, the measures or the safety of the personnel who imple- t identifying or for the use of a public body responsible for the regula- ment them or the public. Information exempt under this tion or supervision of financial institutions or insurance item may include such things as details pertaining to the ]osed to the companies,unless disclosure is otherwise required by State mobilization deployment o equipment,e operation o communication systems or protocols, or to Let until the law. D the public (y) Information the disclosure of which is restricted tactical operations. under Section 5-108 of the Public Utilities Act. (mm) Maps and other records regarding the location or and an attor- security of a utility's generation, switching facilities. distribution, ,at would not (2) Manuals or instruction o staff that relate to estab- storage,gathering,treatment,or switching facilities. aterials pre- or collection of liability for any State tax or that nterials on e- relate o investigations by a public body o determine (nn) Law enforcement officer identification information ng upon the violation of any cruninal law. or driver identification information compiled by a law T so sl GENERAL PROVISIONS 5 YLCS 160/2 from the person seeking access. If the public body can show Section u1e for that exceptional circumstances exist, and that the body is 160/9. Programs for efficient management of records. exercising due diligence in responding to the request, the 160/10. Transfer of agency records. 'A 85- coma may retain jurisdiction and allow the agency additional 160/12. Surveys of management and disposal practices. time to complete its review of the records. 160/13. Improvement of management practices and secm-i- (e) On motion of the plaintiff, prior to or after in camera ty of records. inspection,the coma shall order the public body to provide an 160/14. Standards for retention. index of the records to which access has been denied. The 160/15. Records centers. index shall include the following: 160/15a System for protection and preservation of rec- is body (i) A description of the nature or contents of each docv- ords—Establishment titer the - ment withheld, or each deletion from a released document, 160/15b. Records essential for emergency government oper- uch,the t provided,however,that the public body shall not be required ation—Determination rositions to disclose the information which it asserts is exempt; and 160/16. State Records Commission—Membership—Meet- toiice of - (ii) A statement of the exemption or exemptions claimed mgs—Duties. .n of his for each such deletion or withheld document. 160/17. Disposal and reproduction of records—Regulations. h notice (f) In any action considered by the court, the court shall 160/18. Reports and schedules to be submitted by agency dy shall consider the matter de novo, and shall conduct such in heads. P under camera examination of the requested records as it finds 160/19. Disposition of reports and schedules. j appropriate to determine if such records or any part thereof 160/20. Destruction of nonrecord materials. I on the may be withheld under any provision of this Act The 160/21. Disposal of records—Consent of agency head. 7 of this burden shall be on the public body to establish that its 160/22. Disposition of records of terminated State agency. claimed refusal to permit public inspection or copying is in accor- 160122x- State Archives Advisory Board—Members- iial shall dance with the provisions of this Act Terms—Officers—Compensation. tifice file ) (g) In the event of noncompliance with an order of the 16o82b. State Archives Advisory Board—Meetings—Rec- The type i court to disclose,the court may enforce its order against any ommendations. ccording public official or employee so ordered or primarily respond- 16o/22c. State Archives Advisory Board. : ble for such noncompliance through the court's contempt 160/23. Repeal Saving clause. powers. 160/24. Auditor General t (h) Except as to causes the court considers to be of 160/25. Partial invalidity. greater importance, proceedings arising under this Section 160/26. Freedom of Information Act—Application. shall take precedence on the docket over all other causes and be assigned for hearing and trial at the earliest practicable 160/1. Short title date and expedited in every way. § 1. This Act may be cited as the State Records Act. or copy - (i) If a person seeking the right to inspect or receive a Laws 1957,p. 1687, § 1,eff.July 6, 1957. Amended by PA a written I copy of a public record substantially prevails in a proceeding 86-1475,Art 4,§ 4-82,eff.Jan.10,1991. .n receipt t under this Section,the court may award such person reason- Formerly Ill.Rev.Stat1991,ch.116,143.4. promptly able attorneys' fees and costs. If, however, the court finds he prori- that the fundamental purpose of the request was to further Title of Act: lion and the commercial interests of the requestor, the court may An Act relating to State records, providing for a State Archives I of such s award reasonable attorneys'fees and costs if the court finds division of the office of Se¢etary of State,creating the State Records notice of ? that the record or records in question were of clearly signifi- Commission and defining its powers and duties, providing for a - + cant interest to the general public and that the public body continuing records and paperwork management program,and repeal- ing an Act therein named. Laws 1957,p.1667,approved and off.July .rds shall 1 lacked any reasonable basis in law for withholding the rec- 6,1957. remedies ord. .blic body pA 83-1018, § 11, eff. July 1, 1990 Amended by PA 85- 160/1.5. Purpose me limit 1357,§ 1,eff.Jan.1,1989; PA 93-466,§ 5,eff.Jan.1,2004. , § 15 purpose. Pursuant to the fundamental philosophy Formerly M.Rev.Stat.1991,ch.1161 1211. of the American constitutional form of government, it is declared to be the public policy of the State of Illinois(f)that RECORDS government records are a form of property whose ownership lies with the citizens and with the State of Illinois; (ii)that ACT 160. STATE RECORDS ACT those records are to be created, maintained, and adminis- tered in support of the rights of those citizens and the ;. or copy Section operation of the State; (iii)that those records are,with very y fie suit } 160/1, Short title. few exemptions, to be available for the use, benefit,,and 160/1.5. Purpose. information of the citizens; and (iv) that those records may ie body of not be disposed of without compliance to the regulations in 160/2. Definitions. he county 160/3. Records as property of State. this Act where the 1608.5. Confidentiality of foster placement records. Laws 1957, p. 1687, § 1.5, added by PA 92-866, § 5, eff. 160/4. Right of access by public—Reproductions. Jan.3,2003. cipality or - 160/4a Arrest reports. (b 160/5. State Archives Division—Creation. 160/2. Definitions Ch)of this county 160/6. Secretary of State to be State Archivist—Assis- § 2. For the purposes of this Act: lie rants. "Secretary"means Secretary of State. 160/7. Powers and duties of secretary—Public access to 'Record" or "records" means all books, papers, digitized to enjoin records. d to order 160/8. Preservation of records. electronic material, maps, photographs, databases, or other withheld - i C ► rY ktpNE y United City of Yorkville Memo ', � 800 Game Farm Road EST. 1836 Yorkville, Illinois 60560 Telephone: 630-553-4350 Fax: 630-553-7575 Date: November 8, 2006 To: Mayor and Aldermen From: John Justin Wyeth Subject: Revised Resolution regarding Petitions I corrected the typographical error, and added a final sentence for abundant clarity. These are slight revisions over the draft from COW. Redlined and clean copies are attached. �Eb -L,14E-p STATE OF ILLINOIS ) )ss COUNTY OF KENDALL) RESOLUTION NO. 2006- RESOLUTION � TE A oe1eted:u REQUESTING REGARDING REFERENDUM ON ANNEXATIONS WHEREAS,on October 12,2006,the United City of Yorkville received the submission of petitions stating in the title of each the following: PETITION TO REQUIRE THE UNITED CITY OF YORKVILLE REQUESTING THAT THE QUESTION OF THE ANNEXATION OF THE TERRITORY OF Deleted:01 (THE NAME OF THE FOUR ANNEXATIONS, SEE BELOW**) AS DESCRIBED IN THE ANNEXATION PETITION FILED BY THEM WITH THE UNITED CITY OF YORKVILLE BE SUBMITTED TO THE ELECTORS OF THE UNITED CITY OF YORKVILLE PURSUANT TO 65 ILCS 5/7-1-6 **The four annexations named in the separate petitions were,(1)Neil Bomeman, Beverly Bomeman,Craig Bomeman(Petition#PC 2006-44),(2)North Star Trust Company U/T Dated August 8,2006(Petition#PC 2006-71),(3)Eric and Diane Schanze (Petition#PC 2006-45),and(4))North Star Trust Company U/T Dated August 8,2006 (Petition#PC 2006-67). WHEREAS,the four annexation listed above were conducted under 65 ILCS 5/7-1-8,and WHEREAS,the City Council has been advised by the City Attorney that Section 7-1-6 referenced in the petitions,and relied upon by the petitioner does not apply to Section 7-1-8 Annexations.Furthermore,that there is no statutory procedure in Section 7- 1-8 or elsewhere in the Municipal Code by which a Section 7-1-8 Annexation must be forcibly subjected to a referendum by a petition process as requested in the petitions.And finally,that there is no authority under law providing that the City must submit"the question of the annexation of the territory"to the electors as requested in said petitions. NOW THEREFORE,upon Motion duly made,seconded and approved by the majority of those members of the City Council voting,the United City of Yorkville shall not submit the question of the annexations,described in the petitions referenced in the preambles above,to the electors of the United City of Yorkville.The petitions are deemed a nullity. JAMES BOCK JOSEPH BESCO VALERIE BURD PAUL JAMES DEAN WOLFER MARTY MUNNS ROSE SPEARS JASON LESLIE Approved by me,as Mayor of the United City of Yorkville,Kendall County, Illinois,this Day of .A.D.2006. MAYOR Passed by the City Council of the United City of Yorkville,Kendall County, Illinois this day of A.D. 2006. ATTEST: CITY CLERK Prepared by: John Justin Wyeth City Attorney United City of Yorkville 800 Game Farm Road Yorkville,IL 60560 cLEAJ VECSIad STATE OF ILLINOIS ) )ss COUNTY OF KENDALL) RESOLUTION NO. 2006- RESOLUTION REGARDING PETITIONS SUBMITTED REQUESTING A REFERENDUM ON ANNEXATIONS WHEREAS, on October 12, 2006, the United City of Yorkville received the submission of petitions stating in the title of each the following: PETITION TO REQUIRE THE UNITED CITY OF YORKVILLE REQUESTING THAT THE QUESTION OF THE ANNEXATION OF THE TERRITORY OF (THE NAME OF THE FOUR ANNEXATIONS, SEE BELOW**) AS DESCRIBED IN THE ANNEXATION PETITION FILED BY THEM WITH THE UNITED CITY OF YORKVILLE BE SUBMITTED TO THE ELECTORS OF THE UNITED CITY OF YORKVILLE PURSUANT TO 65 ILCS 5/7-1-6 **The four annexations named in the separate petitions were,(1)Neil Bomeman, Beverly Borneman, Craig Bomeman (Petition#PC 2006-44), (2)North Star Trust Company U/T Dated August 8, 2006 (Petition#PC 2006-71), (3)Eric and Diane Schanze (Petition#PC 2006-45), and (4))North Star Trust Company U/T Dated August 8, 2006 (Petition#PC 2006-67). WHEREAS,the four annexation listed above were conducted under 65 ILCS 5/7-1-8, and WHEREAS,the City Council has been advised by the City Attorney that Section 7-1-6 referenced in the petitions, and relied upon by the petitioner does not apply to Section 7-1-8 Annexations. Furthermore, that there is no statutory procedure in Section 7- 1-8 or elsewhere in the Municipal Code by which a Section 7-1-8 Annexation must be forcibly subjected to a referendum by a petition process as requested in the petitions. And finally, that there is no authority under law providing that the City must submit"the question of the annexation of the territory" to the electors as requested in said petitions. NOW THEREFORE, upon Motion duly made, seconded and approved by the majority of those members of the City Council voting, the United City of Yorkville shall not submit the question of the annexations, described in the petitions referenced in the preambles above, to the electors of the United City of Yorkville. The petitions are deemed a nullity. JAMES BOCK JOSEPH BESCO VALERIE BURD PAUL JAMES DEAN WOLFER MARTY MUNNS ROSE SPEARS JASON LESLIE Approved by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this Day of A.D. 2006. MAYOR Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this day of .A.D. 2006. ATTEST: CITY CLERK I Prepared by: John Justin Wyeth City Attorney United City of Yorkville 800 Game Farm Road Yorkville, IL 60560 Am w / Reviewed By: J� a T Legal F] City Council EST Finance 1-1 r. Engineer ❑ �9 y City Administrator El❑ 6 Agenda Item Tracking Number O Consultant ply o2C0(y -07 LE �b F-1 City Council Agenda Item Summary Memo Title: $5,525,000 Refunding Debt Certificates, Series 2006A City Council/Committee of the Whole Date: City Council 11/14/06 Synopsis: Council Action Previously Taken: Date of Action: Action Taken: Item Number: Type of Vote Required: Council Action Requested: Vote on this Ordinance Submitted by: Susan Mika Finance Name Department Agenda Item Notes: ORDINANCE NUMBER AN ORDINANCE of the United City of Yorkville, Kendall County, Illinois, authorizing and providing for $5,525,000 Refunding Debt Certificates, Series 2006A, evidencing interests in Installment Purchase Agreements, as assigned, and providing for the security for and means of payment under the Agreements of the Certificates. Adopted by the City Council of said City on the 14th day of November 2006 2138051.01.05.B.doc 2143493•KK• 11/9/06 TABLE 8yCONTENTS SECTION HEADING PAGE Preambles.......................... ................................................................................................l � Section 1. Definitions ...............................................................................................° ) Section 2. Incorporation o[Preambles....................................................................... � Section 3. Certain Determinations of the City Council..................... ......................../ � Section 4. Prior Agreement loa General Obligation;/\oouul 8 ubou...—..—.....^^^—~^^'^—^^~~^^^`^^^~~^~. Section 5. Amendment ofthe Prior Agreements............... ........................................o Section 6. Certificate Details................................................. .................................l0 ll Section 7. Book Entry Pzoviainoo.........—...—...—~...,..--^..^... Section 8, Euuoodou; Authentication......................................................................l3 Section 9. Optional Redemption.......................................................... ...................l4 Section 10. Mandatory Redemption.........................................................................l4 Section 11. Redemption Procedures................... ........... ..........................................l5 Section 12. Registration ofCertificates; Persons Treated uo Owners .........................lV Section 13. Form of Certificate............................................................ ...................2l Section 14. Sale of Certificates; Official Statement...................................................%8 Section 15. Creation uf Funds and ; Refunding; Escrow � /\ ..........^—^^—^^^^—^^~^^^^^'^^^~—^^~^—^. Section 16. Continuing Disclosure Undertaking.....~—...^.....—........—.3O 3l Section 17. (�noeralTax {�ovrnuoto .........—..............,.^...'...—..^....... Section 18. Certain Specific Tax Covenants........ .....................................................32 Section 19. Pertaining io the Certificate Registrar.....................................................34 � Section 20. E>nodInsurance...__—.....—...—~~.—~—^.~.°^.—_~~.—., � Stohno %l. L}cfouoaucu.....—......~..--...—....._,~_.,....~~--. Section 22. Superseder and Effective Date................................... ............................3Q [This table of contents is for the convenience of the reader and is not a part of this Ordinance.] 'i' ORDINANCE NUMBER AN ORDINANCE of the United City of Yorkville, Kendall County, Illinois, authorizing and providing for $5,525,000 Refunding Debt Certificates, Series 2006A, evidencing interests in Installment Purchase Agreements, as assigned, and providing for the security for and means of payment under the Agreements of the Certificates. PREAMBLES WHEREAS A. The United City of Yorkville, Kendall County, Illinois (the "City"), is a municipality and unit of local government of the State of Illinois (the "State") operating, inter alia, under and pursuant to the following laws: 1. the Illinois Municipal Code(the "Municipal Code"); 2. the Local Government Debt Reform Act (the -"Debt Reform Act"), and in particular, the provisions of Section 17 of the Debt Reform Act; and 3. all other Omnibus Bond Acts of the State; in each case, as supplemented and amended (collectively, "Applicable Law"). B. The City Council of the City (the "City Council"), through its officers under proper authority, has previously executed and delivered: Ia. an Installment Purchase Agreement for the purchase of real or personal property, or both, for the elevated water storage tank and Route 47 water main construction project, dated the 29th day of August 2002 (the "2002 Prior Agreement"), and lb. a Refunding Loan Agreement for the Refunding of an Installment Contract, made as of the 15th day of December 2002 (the "2002A Prior Agreement"), and lc. an Installment Purchase Agreement for the purchase of real or personal property, or both, for the purpose of acquiring and constructing water system improvements, dated the 1st day of July 2003 (the "2003 Prior Agreement"), and 2a. Debt Certificates (Capital Appreciation), Series 2002 (the "2002 Prior Certificates"), dated August 29, 2002, evidencing the indebtedness under the 2002 Prior Agreement, issued in the aggregate original principal amount of$2,899,364.85, due and payable serially in part on May 1 of the years and in the original principal amounts and bearing interest at the original yields to maturity as follows: TOTAL AGGREGATE ORIGINAL YEAR OF ORIGINAL PRINCIPAL YIELD TO MATURITY AMOUNT MATURITY 2013 $269,398.80 4.650% 2014 274,611.75 4.750% 2015 258,794.25 4.850% 2016 243,413.75 4.950% 2017 228,503.50 5.050% 2018 214,092.00 5.150% 2019 200,198.25 5.250% 2020 186,841.25 5.350% 2021 175,631.25 5.400% and the 2002 Prior Certificates so described are subject to redemption prior to maturity at the option of the City, from any available funds, in whole or in part, on any date on or after May 1, 2012 (the "2002 Call Date"). 2b. Refunding Debt Certificates, Series 2002A (the "2002A Prior Certificates"), dated December 15, 2002, evidencing the indebtedness under the 2002A Prior Agreement, issued in the amount of $1,280,000, due and payable serially on January 1 of the years and in the amounts and bearing interest at the rates percent per annum as follows: -2- YEAR AMOUNT RATE 2012 $120,000 4.30% 2014 130,000 4.55% 2016 145,000 4.70% 2018 160,000 4.90% 2020 175,000 5.00% 2022 195,000 5.15% and the 2002A Prior Certificates so described are subject to redemption prior to maturity at the option of the City, from any available funds, in whole or in part, on any date on or after January 1,2010 (the "2002A Call Date"). 2c. Debt Certificates, Series 2003 (the "2003 Prior Certificates"), dated July 1, 2003, evidencing the indebtedness under the Prior Agreement, issued in the amount of $4,800,000, due and payable serially in part on January 1 of the years and in the amounts and bearing interest at the rates percent per annum as follows: YEAR AMOUNT RATE 2020 $1,000,000 5.00% 2021 1,000,000 5.00% 2022 1,000,000 5.00% and the 2003 Prior Certificates so described are subject to redemption prior to maturity at the option of the City, from any available funds, in whole or in part, on any date on or after January 1,2011 (the "2003 Call Date"). C. The City Council has considered and determined that interest rates available in the bond market are currently more favorable for the City than they were when the 2002 Prior Certificates,the 2002A Prior Certificates and the 2003 Prior Certificates (collectively,the "Prior Certificates") were issued and that it is possible, proper, and advisable at this time to undertake a refunding to take advantage of the debt service savings that will result from such lower interest rates. -3- D. Accordingly, the City Council has heretofore determined and does hereby determine that it is advisable, necessary, and in the best interests of the City, its residents, and its taxpayers, to undertake the refunding (the "Refunding") of the Prior Certificates, at an estimated cost including expenses and contingencies of $5,525,000 which must be obtained through the borrowing of money. E. The expenses and contingencies related to the refunding of the Prior Certificates include (as applicable) legal, financial, and accounting services related to the accomplishment of said purpose and the issuance of refunding certificates therefor; certificate discount; registrar, paying agent, escrow agent, and other related banking fees; and printing and publication costs; and other miscellaneous costs. F. Pursuant to the provisions of the Debt Reform Act, the Prior Certificates may properly be refunded by a new series of certificates as herein provided; and the owners of the new certificates shall succeed in interest to the 2002 Prior Agreement, the 2002A Prior Agreement and the 2003 Prior Agreement (each a respective "Prior Agreement"). G. The City Council has determined that it is financially advisable to provide for the payment of the costs of the Refunding pursuant to assignment of each of the Prior Agreements, at this time. Now THEREFORE Be It Ordained by the City Council of the United City of Yorkville, Kendall County,Illinois, as follows: Section 1. Definitions. Words and terms used in this Ordinance shall have the meanings given them unless the context or use clearly indicates another or different meaning is intended. Words and terms defined in the singular may be used in the plural and vice-versa. Reference to any gender shall be deemed to include the other and also inanimate persons such as corporations,where applicable. -4- A. The following words and terms are as defined in the preambles hereto. Applicable Law City City Council Debt Reform Act Prior Certificates Refunding State 2002 Call Date 2002A Call Date 2003 Call Date 2002 Prior Agreement 2002A Prior Agreement 2003 Prior Agreement 2002 Prior Certificates 2002A Prior Certificates 2003 Prior Certificates B. The following words and terms are defined as set forth. "Book Entry Form" means the form of the Certificates as fully registered and available in physical form only to the Depository. "Certificate Fund" means the fund established and defined in Section 15 of this Ordinance. "Certificate Moneys" means moneys on deposit in the Certificate Fund. "Certificate Register" means the books of the City kept by the Certificate Registrar to evidence the registration and transfer of the Certificates. -5- "Certificate Registrar" means The Bank of New York Trust Company, N.A., Chicago, Illinois, a corporation having trust powers, in its respective capacities as bond registrar and paying agent hereunder, or a successor thereto or a successor designated as Certificate Registrar hereunder. "Certificates" means the $5,525,000 Refunding Debt Certificates, Series 2006A, authorized to be issued by this Ordinance. "Clerk" means the City Clerk of the City. "Code" means the Internal Revenue Code of 1986, as amended. "Continuing Disclosure Undertaking" means the undertaking by the City as authorized in Section 16 hereof and set forth as Exhibit B. "Depository" means The Depository Trust Company, a New York limited trust company, its successors, or a successor depository qualified to clear securities under applicable state and federal laws. "Escrow Agent" means The Bank of New York Trust Company, N.A., a corporation having trust powers, and maintaining trust offices in the City of Chicago, Illinois, or a successor thereto or a successor designated as Escrow Agent hereunder. "Escrow Agreement" means the agreement by and between the City and the Escrow Agent in substantially the form attached to this Ordinance as Exhibit A and authorized as provided in Section 15 hereof for the purpose of providing for the refunding of the Prior Certificates. "Mayor" means the Mayor of the City. "Ordinance" means this Ordinance, numbered as set forth on the title page hereof, and passed by the City Council on the 14th day of November 2006. "Purchase Contract" is defined in Section 14. -6- "Purchase Price" means the price to be paid by the Purchaser pursuant to the Purchase Contract for the Certificates,to-wit, $ , plus accrued interest, if any. "Purchaser" means the purchaser (underwriter) of the Certificates, namely, LaSalle Financial Services, Inc., Chicago, Illinois. "Rebate Fund" means the Rebate Fund authorized to be established and as defined in Section 18 of this Ordinance. "Record Date" means the 15th day of the month next preceding any regular interest payment date and 15 days preceding any other interest payment date. "Tax-exempt" means, with respect to the Certificates, the status of interest paid and received thereon as excludable from the gross income of the owners thereof under the Code for federal income tax purposes except to the extent that such interest is taken into account in computing an adjustment used in determining the alternative minimum tax for certain corporations. "Treasurer" means the Treasurer of the City. C. Definitions also appear in the preambles hereto or in specific sections, as appear below. The headings in this Ordinance are for the convenience of the reader and are not a part of this Ordinance. Section 2. Incorporation of Preambles. The City Council hereby finds that the recitals contained in the preambles to this Ordinance are true, correct and complete and does incorporate them into this Ordinance by this reference. Section 3. Certain Determinations of the City Council. It is advisable and in the public interest to accomplish the Refunding to achieve debt service savings and a more appropriate debt structuring. The Prior Certificates shall be refunded'to the 2002 Call Date, the 2002A Call Date and the 2003 Call Date, respectively, by means of providing adequate funds -7- from proceeds of the Certificates, and, upon the defeasance of the Prior Certificates, all right, title and interest in each of the Prior Agreements shall be vested in allocable portion of the Certificates; and the repayment terms of each of the Prior Agreements shall be amended, effective at such time,to conform to the Certificates allocated to the Refunding. Section 4. Each Prior Agreement Is a General Obligation; Annual Appropriation. The City hereby represents, warrants, and agrees that the obligation to make the payments due under each of the Prior Agreements shall be a lawful direct general obligation of the City payable from the corporate funds of the City and such other sources of payment as are otherwise lawfully available. The City represents and warrants that the total amount due the Seller under each of the Prior Agreements (or the Purchaser under the 2002A Prior Agreement), together with all other indebtedness of the City, is within all statutory and constitutional debt limitations. The City agrees to appropriate funds of the City annually and in a timely manner so as to provide for the making of all payments when due under the terms of each of the Prior Agreements. Section S. Amendment of the Prior Agreements. Simultaneously with the defeasance of the Prior Certificates, each of the Prior Agreements shall be amended. The Mayor and Clerk be and they are hereby authorized and directed to execute and attest, respectively, each of the First Amendment to Agreements, in substantially the forms thereof set forth below in the text of this Ordinance, and to do all things necessary and essential to effectuate the provisions of each of the First Amendment to Agreement, including the execution of any documents and certificates i incidental thereto or necessary to carry out the provisions thereof. Further, as nominee-seller, the Treasurer is hereby authorized and directed to execute each of the First Amendment to Agreements. Upon full execution, the original of each of the First Amendment to Agreements shall be filed with the Clerk and retained in the City records and constitute authority for issuance of the Certificates allocable to the Refunding. Subject to such discretion of the officers signatory -8- to the document as described in the foregoing text, each of the First Amendment to Agreements shall be in substantially the form as follows: -9- FIRST AMENDMENT,DATED DECEMBER 19, 2006, TO INSTALLMENT PURCHASE AGREEMENT for purchase of real or personal property, or both, for the elevated water storage tank and Route 47 water main construction project, dated the 29th day of August 2002, in and for the United City of Yorkville, Kendall County, Illinois. THIS FIRST AMENDMENT TO INSTALLMENT PURCHASE AGREEMENT (this "First Amendment") made as of.the 16th day of December 2006 by and between the Treasurer of the hereinafter defined City, as Nominee-Seller (the "Seller"), and the United City of Yorkville, Kendall County, Illinois, a municipality and unit of local government of the State of Illinois (the "City,,): WITNESSETH A. The City Council (the "City Council") of the City has previously caused the City to enter into the Installment Purchase Agreement, dated the 29th day of August 2002, in caption above (the "Agreement"), for the purpose of acquiring real or personal property, or both, for the elevated water storage tank and Route 47 water main construction project, all as previously approved by the City Council and on file with the City Clerk(the "Clerk"). B. All of the terms of the Agreement are incorporated into this First Amendment, subject to express modification herein. C. The City Council has determined to refund the Debt Certificates (Capital Appreciation),Series 2002 (to be referred to hereafter as the "2002 Certificates"), with a portion of a new issue of Refunding Debt Certificates, Series 2006A (the "2006 Certificates") and, accordingly, all the rights, title and interest in the Agreement must pass to 2006 Certificates upon the defeasance of the 2002 Certificates; and the Agreement be amended accordingly. A-1 D. The purpose of the refunding and the authority for same are as stated in Ordinance of the City numbered adopted by the City Council on the 14th day of November, 2006 (the "Refunding and Amendatory Ordinance"). E. The Refunding and Amendatory Ordinance is (a) incorporated herein by reference; and (b) made a part hereof as if set out at this place in full; and each of the additional terms as defined in the Refunding and Amendatory Ordinance and as used therein is also incorporated by reference for use in this First Amendment. Now THEREFORE in consideration of the mutual covenants and agreements hereinafter contained and other valuable consideration, it is mutually agreed between the Seller under the Agreement and the City as follows: 1. REFUNDING PLAN The plan for the Refunding as provided in the Refunding and Amendatory Ordinance is approved. The Agreement shall be modified accordingly. 2. PAYMENTS The remainder of the purchase price payable under the Agreement is modified and amended and shall: (a) be payable in installments due on the dates and in the amounts; (b) bear interest at the rates percent per annum which interest shall also be payable on the dates and in the amounts; (c) be payable at the place or places of payment, in the medium of payment, and upon such other terms, including prepayment(redemption); all as provided for payment of the allocable portion of the 2006 Certificates in the Refunding and Amendatory Ordinance. A-2 3. ASSIGNMENT AND SUCCESSOR IN INTEREST Rights to payment of the Seller as provided in this First Amendment are assigned as a matter of law, under the Local Government Debt Reform Act, as amended, to the owners of the 2006 Certificates, as complete successors in interest to the 2006 Certificates. The 2006 Certificates, evidencing the replacement indebtedness incurred hereby, are assignable (registrable) as provided in the Refunding and Amendatory Ordinance. 4. TAX COVENANTS The covenants relating to the Tax-exempt status of the 2006 Certificates, as set forth in the Refunding and Amendatory Ordinance, insofar as may be applicable, apply to the work to be performed and the payments made under the Agreement. 5. LAWFUL CORPORATE OBLIGATION CONTINUED The City hereby represents, warrants, and agrees that the obligation to make the payments due under the Agreement shall be a lawful direct general obligation of the City payable from the corporate funds of the City and such other sources of payment as are otherwise lawfully available. The City represents and warrants that the total amount due the Seller hereunder, together with all other indebtedness of the City, is within all statutory and constitutional debt limitations. The City agrees to appropriate funds of the City annually and in a timely manner so as to provide for the making of all payments when due under the terms of the Agreement as modified by this First Amendment. 6. GENERAL COVENANT AND RECITAL It is hereby certified and recited by the Seller and the City, respectively, that as to each, respectively, for itself, all conditions, acts, and things required by law to exist or to be done precedent to and in the execution of this First Amendment did exist, have happened, been done and performed in regular and due form and time as required by law. A-3 7. DEFAULT In the event of a default in payment hereunder by the City, the Seller or any 2006 Certificateholder may pursue any available remedy by suit at law or equity to enforce the payment of all amounts due or to become due under the Agreement, including, without limitation,an action for specific performance. 8. EFFECTIVE DATE This First Amendment shall become effective upon the defeasance of the 2002 Certificates in accordance with the terms thereof. IN WITNESS WHEREOF the Seller has caused this First Amendment to be executed and attested, and his or her signature to be attested by the Clerk, and the City has caused this First Amendment to be executed by its Mayor, and also attested by the Clerk, and the official seal of the City to be hereunto affixed, all as of the day and year first above written. SELLER: Signature: [Here type name]: as Nominee-Seller and the Treasurer ATTEST: City Clerk [SEAL] UNITED CITY OF YORKVILLE, KENDALL COUNTY,ILLINOIS Mayor ATTEST: City Clerk [SEAL] A-4 STATE OF ILLINOIS ) ) SS COUNTY OF KENDALL ) CERTIFICATE OF FIRST AMENDMENT FILING I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the United City of Yorkville, Kendall County, Illinois (the "City"), and as such officer I do hereby certify that on the 16th day of December 2006 there was filed in my office a properly certified copy of that certain document, executed by the Mayor of the City, attested by me in my capacity as City Clerk, and further executed, as Nominee-Seller, by the Treasurer of the City, also attested by me, dated as of the 16th day of December 2006, and entitled "FIRST AMENDMENT, DATED DECEMBER 16, 2006, TO INSTALLMENT PURCHASE AGREEMENT for Purchase of real or personal property, or both, for the elevated water storage tank and Route 47 water main construction project, dated the 29th day of August 2002, in and for the United City of Yorkville, Kendall County, Illinois"; and supporting the issuance of certain Refunding Debt Certificates, Series 2006A, of the City; that attached hereto is a true and complete copy of said First Amendment as so filed; and that the same has been deposited in the official files and records of my office. IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of the United City of Yorkville, Kendall County, Illinois, this 16th day of December 2006. City Clerk [SEAL] FIRST AMENDMENT, DATED DECEMBER 19, 2006,TO A REFUNDING LOAN AGREEMENT for the Refunding of an Installment Contract, made as of the 15th day of December 2002, in and for the United City of Yorkville, Kendall County,Illinois. THIS FIRST AMENDMENT TO REFUNDING LOAN AGREEMENT (this "First Amendment") made as of the 16th day of December 2006 by and between the Treasurer of the hereinafter defined City, as Nominee-Seller (the "Seller"), and the United City of Yorkville, Kendall County, Illinois, a municipality and unit of local government of the State of Illinois (the "City"): WITNESSETH A. The City Council (the "City Council") of the City has previously caused the City to enter into a Refunding Loan Agreement, dated the 15th day of December 2002, in caption above (the "Agreement"), for the purpose of refunding an Installment Contract, dated as of June 1, 1999, all as previously approved by the City Council and on file with the City Clerk (the "Clerk"). B. All of the terms of the Agreement are incorporated into this First Amendment, subject to express modification herein. C. The City Council has determined to refund the Refunding Debt Certificates, Series 2002A (to be referred to hereafter as the "2002A Certificates"), with a portion of a new issue of Refunding Debt Certificates, Series 2006A (the "2006 Certificates") and, accordingly, all the rights, title and interest in the Agreement must pass to 2006 Certificates upon the defeasance of the 2002A Certificates; and the Agreement be amended accordingly. B-1 D. The purpose of the refunding and the authority for same are as stated in Ordinance of the City numbered adopted by the City Council on the 14th day of November, 2006 (the "Refunding and Amendatory Ordinance"). E. The Refunding and Amendatory Ordinance is (a) incorporated herein by reference; and (b) made a part hereof as if set out at this place in full; and each of the additional terms as defined in the Refunding and Amendatory Ordinance and as used therein is also incorporated by reference for use in this First Amendment. Now THEREFORE in consideration of the mutual covenants and agreements hereinafter contained and other valuable consideration, it is mutually agreed between the Seller under the Agreement and the City as follows: 1. REFUNDING PLAN The plan for the Refunding as provided in the Refunding and Amendatory Ordinance is approved. The Agreement shall be modified accordingly. 2. PAYMENTS The remainder of the purchase price payable under the Agreement is modified and amended and shall: (a) be payable in installments due on the dates and in the amounts; (b) bear interest at the rates percent per annum which interest shall also be payable on the dates and in the amounts; (c) be payable at the place or places of payment,in the medium of payment, and upon such other terms, including prepayment(redemption); all as provided for payment of the allocable portion of the 2006 Certificates in the Refunding and Amendatory Ordinance. B-2 3. ASSIGNMENT AND SUCCESSOR IN INTEREST Rights to payment of the Seller as provided in this First Amendment are assigned as a matter of law, under the Local Government Debt Reform Act, as amended, to the owners of the 2006 Certificates, as complete successors in interest to the 2006 Certificates. The 2006 Certificates, evidencing the replacement indebtedness incurred hereby, are assignable (registrable) as provided in the Refunding and Amendatory Ordinance. 4. TAX COVENANTS The covenants relating to the Tax-exempt status of the 2006 Certificates, as set forth in the Refunding and Amendatory Ordinance, insofar as may be applicable, apply to the work to be performed and the payments made under the Agreement. 5. LAWFUL CORPORATE OBLIGATION CONTINUED The City hereby represents, warrants, and agrees that the obligation to make the payments due under the Agreement shall be a lawful direct general obligation of the City payable from the corporate funds of the City and such other sources of payment as are otherwise lawfully available. The City represents and warrants that the total amount due the Seller hereunder, together with all other indebtedness of the City, is within all statutory and constitutional debt limitations. The City agrees to appropriate funds of the City annually and in a timely manner so as to provide for the making of all payments when due under the terms of the Agreement as modified by this First Amendment. 6. GENERAL COVENANT AND RECITAL It is hereby certified and recited by the Seller and the City, respectively, that as to each, respectively, for itself, all conditions, acts, and things required by law to exist or to be done precedent to and in the execution of this First Amendment did exist, have happened, been done and performed in regular and due form and time as required by law. B-3 7. DEFAULT In the event of a default in payment hereunder by the City, the Seller or any 2006 Certificateholder may pursue any available remedy by suit at law or equity to enforce the payment of all amounts due or to become due under the Agreement, including, without limitation, an action for specific performance. 8. EFFECTIVE DATE This First Amendment shall become effective upon the defeasance of the 2002A Certificates in accordance with the terms thereof. IN WITNESS WHEREOF the Seller has caused this First Amendment to be executed and attested, and his or her signature to be attested by the Clerk, and the City has caused this First Amendment to be executed by its Mayor, and also attested by the Clerk, and the official seal of the City to be hereunto affixed, all as of the day and year first above written. SELLER: Signature: [Here type name]: as Nominee-Seller and the Treasurer ATTEST: City Clerk [SEAL] UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS Mayor ATTEST: City Clerk [SEAL] B-4 STATE OF ILLINOIS ) ) SS COUNTY OF KENDALL ) CERTIFICATE OF FIRST AMENDMENT FILING I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the United City of Yorkville, Kendall County, Illinois (the "City"), and as such officer I do hereby certify that on the 16th day of December 2006 there was filed in my office a properly certified copy of that certain document, executed by the Mayor of the City, attested by me in my capacity as City Clerk, and further executed, as Nominee-Seller, by the Treasurer of the City, also attested by me, dated as of the 16th day of December 2006, and entitled "FIRST AMENDMENT, DATED DECEMBER 19, 2006, TO A REFUNDING LOAN AGREEMENT for the Refunding of an Installment Contract, made as of the 15th day of December 2002, in and for the United City of Yorkville, Kendall County, Illinois"; and supporting the issuance of certain Refunding Debt Certificates, Series 2006A, of the City; that attached hereto is a true and complete copy of said First Amendment as so filed; and that the same has been deposited in the official files and records of my office. IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of the United City of Yorkville, Kendall County, Illinois,this 16th day of December 2006. City Clerk [SEAL] FIRST AMENDMENT, DATED DECEMBER 19, 2006,TO INSTALLMENT PURCHASE AGREEMENT for purchase of real or personal property, or both,for the purpose of waterworks improvements, dated the 1st day of July 2003, in and for the United City of Yorkville, Kendall County, Illinois. THIS FIRST AMENDMENT TO INSTALLMENT PURCHASE AGREEMENT (this "First Amendment") made as of the 16th day of December 2006 by and between the Treasurer of the hereinafter defined City, as Nominee-Seller (the "Seller"), and the United City of Yorkville, Kendall County, Illinois, a municipality and unit of local government of the State of Illinois (the „City,,): WITNESSETH A. The City Council (the "City Council") of the City has previously caused the City to enter into the Installment Purchase Agreement, dated the 1st day of July 2003, in caption above (the "Agreement"), for the purpose of acquiring real or personal property, or both, for the purpose of constructing and acquiring waterworks improvements, all as previously approved by the City Council and on file with the City Clerk (the "Clerk"). B. All of the terms of the Agreement are incorporated into this First Amendment, subject to express modification herein. C. The City Council has determined to refund the Debt Certificates, Series 2003 (to be referred to hereafter as the "2003 Certificates"), with a portion of a new issue of Refunding Debt Certificates, Series 2006A (the "2006 Certificates") and, accordingly, all the rights, title and interest in the Agreement must pass to 2006 Certificates upon the defeasance of the 2003 Certificates; and the Agreement be amended accordingly. C-1 D. The purpose of the refunding and the authority for same are as stated in Ordinance of the City numbered adopted by the City Council on the 14th day of November, 2006 (the "Refunding and Amendatory Ordinance"). E. The Refunding and Amendatory Ordinance is (a) incorporated herein by reference; and (b) made a part hereof as if set out at this place in full; and each of the additional terms as defined in the Refunding and Amendatory Ordinance and as used therein is also incorporated by reference for use in this First Amendment. Now THEREFORE in consideration of the mutual covenants and agreements hereinafter contained and other valuable consideration, it is mutually agreed between the Seller under the Agreement and the City as follows: 1. REFUNDING PLAN The plan for the Refunding as provided in the Refunding and Amendatory Ordinance is approved. The Agreement shall be modified accordingly. 2. PAYMENTS The remainder of the purchase price payable under the Agreement is modified and amended and shall: (a) be payable in installments due on the dates and in the amounts; (b) bear interest at the rates percent per annum which interest shall also be payable on the dates and in the amounts; (c) be payable at the place or places of payment, in the medium of payment, and upon such other terms, including prepayment(redemption); all as provided for payment of the allocable portion of the 2006 Certificates in the Refunding and Amendatory Ordinance. C-2 3. ASSIGNMENT AND SUCCESSOR IN INTEREST Rights to payment of the Seller as provided in this First Amendment are assigned as a matter of law, under the Local Government Debt Reform Act, as amended, to the owners of the 2006 Certificates, as complete successors in interest to the 2006 Certificates. The 2006 Certificates, evidencing the replacement indebtedness incurred hereby, are assignable (registrable) as provided in the Refunding and Amendatory Ordinance. 4. TAX COVENANTS The covenants relating to the Tax-exempt status of the 2006 Certificates, as set forth in the Refunding and Amendatory Ordinance, insofar as may be applicable, apply to the work to be performed and the payments made under the Agreement. S. LAWFUL CORPORATE OBLIGATION CONTINUED The City hereby represents, warrants, and agrees that the obligation to make the payments due under the Agreement shall be a lawful direct general obligation of the City payable from the corporate funds of the City and such other sources of payment as are otherwise lawfully available. The City represents and warrants that the total amount due the Seller hereunder, together with all other indebtedness of the City, is within all statutory and constitutional debt limitations. The City agrees to appropriate funds of the City annually and in a timely manner so as to provide for the making of all payments when due under the terms of the Agreement as modified by this First Amendment. 6. GENERAL COVENANT AND RECITAL It is hereby certified and recited by the Seller and the City, respectively, that as to each, respectively, for itself, all conditions, acts, and things required by law to exist or to be done precedent to and in the execution of this First Amendment did exist, have happened, been done and performed in regular and due form and time as required by law. C-3 i 7. DEFAULT In the event of a default in payment hereunder by the City, the Seller or any 2006 Certificateholder may pursue any available remedy by suit at law or equity to enforce the payment of all amounts due or to become due under the Agreement, including, without limitation, an action for specific performance. 8. EFFECTIVE DATE This First Amendment shall become effective upon the defeasance of the 2003 Certificates in accordance with the terms thereof. IN WITNESS WHEREOF the Seller has caused this First Amendment to be executed and attested, and his or her signature to be attested by the Clerk, and the City has caused this First Amendment to be executed by its Mayor, and also attested by the Clerk, and the official seal of the City to be hereunto affixed, all as of the day and year first above written. SELLER: Signature: [Here type name]: as Nominee-Seller and the Treasurer ATTEST: City Clerk [SEAL] UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS Mayor ATTEST: City Clerk [SEAL] C-4 STATE OF ILLINOIS ) ) SS COUNTY OF KENDALL ) CERTIFICATE OF FIRST AMENDMENT FILING I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the United City of Yorkville, Kendall County, Illinois (the "City"), and as such officer I do certify that on the 16th day of December 2006 there was filed in my office a properly hereby ce fy y certified copy of that certain document, executed by the Mayor of the City, attested by me in my capacity as City Clerk, and further executed, as Nominee-Seller, by the Treasurer of the City, also attested by me, dated as of the 16th day of December 2006, and entitled "FIRST AMENDMENT, DATED DECEMBER 19, 2006, TO INSTALLMENT PURCHASE AGREEMENT for Purchase of real or personal property, or both, for the purpose of waterworks improvements, dated the 1st day of July 2003, in and for the United City of Yorkville, Kendall County, Illinois"; and supporting the issuance of certain Refunding Debt Certificates, Series 2006A, of the City; that attached hereto is a true and complete copy of said First Amendment as so filed; and that the same has been deposited in the official files and records of my office. IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of the United City of Yorkville, Kendall County, Illinois, this 16th day of December 2006. City Clerk [SEAL] Section 6. Certificate Details. For the purpose of providing for the Refunding, there shall be issued and sold the Certificates in the principal amount of$5,525,000. The Certificates shall each be designated "Refunding Debt Certificate, Series 2006A"; be dated the date of issuance thereof(the "Dated Date"); and shall also bear the date of authentication thereof. The Certificates shall be in fully registered and in Book Entry Form, shall be in denominations of $5,000 or integral multiples thereof(but no single Certificate shall represent principal maturing on more than one date), and shall be numbered consecutively in such fashion as shall be determined by the Certificate Registrar. The Certificates shall become due and payable (subject to right of prior redemption) on January 1 of the years and in the principal amounts, and bearing interest at the rates percent per annum as follows: TOTAL YEAR AMOUNT($) RATE(%) 2008 5,000 2009 10,000 2010 10,000 2011 70,000 2012 70,000 2013 360,000 2014 405,000 2015 420,000 2016 435,000 2017 455,000 2018 470,000 2019 490,000 2020 845,000 2021 840,000 2022 385,000 2023 255,000 Each Certificate shall bear interest from the later of its Dated Date or from the most recent interest payment date to which interest has been paid or duly provided for, until the principal amount of such Certificate is paid or duly provided for, such interest (computed upon -10- the basis of a 360-day year of twelve 30-day months) being payable on January 1 and July 1 of each year, commencing on July 1, 2007. Interest on each Certificate shall be paid by check or draft of the Certificate Registrar, payable upon presentation thereof in lawful money of the United States of America, to the person in whose name such Certificate is registered at the close of business on the applicable Record Date, and mailed to the registered owner of the Certificate at the address as shown in the Certificate Registrar or at such other address furnished in writing by such registered owner, or as otherwise may be agreed with the Depository for so long as the Depository or its nominee is the registered owner as of a given Record Date. The principal of or redemption price due on the Certificates shall be payable in lawful money of the United States of America upon presentation thereof at the office maintained for such purpose of the Certificate Registrar as currently maintained, as may be relocated from time to time, or at successor Certificate Registrar and locality. Section 7. Book Entry Provisions. The Certificates shall be initially issued in the form of a separate single fully registered Certificate for each of the maturities of the Certificates. Upon initial issuance, the ownership of each such Certificate shall be registered in the Certificate Register in the name of the Depository or a designee or nominee of the Depository (such depository or nominee being the "Book Entry Owner"). Except as otherwise expressly provided, all of the outstanding Certificates from time to time shall be registered in the Certificate Register in the name of the Book Entry Owner (and accordingly in Book Entry Form as such term is used in this Ordinance). Any City officer, as representative of the City, is hereby authorized, empowered, and directed to execute and deliver or to utilize a previously executed and delivered Letter of Representations or Blanket Letter of Representations (either being the "Letter of Representations") substantially in the form common in the industry, or with such changes therein as any officer executing the Letter of Representations on behalf of the City shall approve, -11- his or her execution thereof to constitute conclusive evidence of approval of such changes, as shall be necessary to effectuate Book Entry Form. Without limiting the generality of the authority given with respect to entering into such Letter of Representations, it may contain provisions relating to (a)payment procedures, (b) transfers of the Certificates or of beneficial interests therein, (c) redemption notices and procedures unique to the Depository, (d) additional notices or communications, and (e) amendment from time to time to conform with changing customs and practices with respect to securities industry transfer and payment practices. With respect to Certificates registered in the Certificate Register in the name of the Book Entry Owner, none of the City, any of its financial officers, or the Certificate Registrar shall have any responsibility or obligation to any broker-dealer, bank,or other financial institution for which the Depository holds Certificates from time to time as securities depository (each such broker-dealer, bank, or other financial institution being referred to herein as a "Depository Participant") or to any person on behalf of whom such a Depository Participant holds an interest in the Certificates. Without limiting the meaning of the immediately preceding sentence, the City, any of its financial officers, and the Certificate Registrar shall have no responsibility or obligation with respect to (a) the accuracy of the records of the Depository, the Book Entry Owner, or any Depository Participant with respect to any ownership interest in the Certificates, (b) the delivery to any Depository Participant or any other person, other than a registered owner of a Certificate as shown in the Certificate Register or as otherwise expressly provided in the Letter of Representations, of any notice with respect to the Certificates, including any notice of redemption, or (c)the payment to any Depository Participant or any other person, other than a registered owner of a Certificate as shown in the Certificate Register, of any amount with respect to principal of or interest on the Certificates. No person other than a registered owner of a Certificate as shown in the Certificate Register shall receive a certificate with respect to any -12- Certificate. In the event that (a) the City determines that the Depository is incapable of discharging its responsibilities described herein and in the Letter of Representations, (b) the agreement among the City, the Certificate Registrar, and the Depository evidenced by the Letter of Representations shall be terminated for any reason, or (c) the City determines that it is in the best interests of the City or of the beneficial owners of the Certificates either that they be able to obtain certificated Certificates or that another depository is preferable, the City shall notify the Depository, and the Depository shall notify the Depository Participants, of the availability of physical Certificates; and the Certificates shall no longer be restricted to being registered in the Certificate Register in the name of the Book Entry Owner. Alternatively, at such time, the City may determine that the Certificates shall be registered in the name of and deposited with a successor depository operating a system accommodating Book Entry Form, as may be acceptable to the City, or such depository's agent or designee, but if the City does not select such alternate book entry system, then the Certificates shall be registered in whatever name or names registered owners of Certificates transferring or exchanging Certificates shall designate, in accordance with the provisions of this Ordinance. Section 8. Execution; Authentication. The Certificates shall be executed on behalf of the City by the manual or duly authorized facsimile signature of its Mayor and attested by the manual or duly authorized facsimile signature of its Clerk, as they may determine, and shall have impressed or imprinted thereon the corporate seal or facsimile thereof of the City. In case any such officer whose signature shall appear on any Certificate shall cease to be such officer before the delivery of such Certificate, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. All Certificates shall have thereon a certificate of authentication, substantially in the form hereinafter set forth, duly executed by the Certificate Registrar as authenticating agent of the City and showing the date of -13- authentication. No Certificate shall be valid or obligatory for any purpose or be entitled to any security or benefit under this Ordinance unless and until such certificate of authentication shall have been duly executed by the Certificate Registrar by manual signature, and such certificate of authentication upon any such Certificate shall be conclusive evidence that such Certificate has been authenticated and delivered under this Ordinance. The certificate of authentication on any Certificate shall be deemed to have been executed by it if signed by an authorized officer of the Certificate Registrar, but it shall not be necessary that the same officer sign the certificate of authentication on all of the Certificates issued hereunder. Section 9. Optional Redemption. Those of the Certificates due on or after January 1, 20_, are subject to redemption prior to maturity at the option of the City, from any available funds, in whole or in part, on any date on or after January 1, 20, and, if in part, in any order of maturity as selected by the City, and if less than an entire maturity, in integral multiples of $5,000, selected by lot by the Certificate Registrar as hereinafter provided, at a redemption price of par plus accrued interest to the date fixed for redemption. Section 10. Mandatory Redemption. The Bonds due on January 1, 20_, are subject to mandatory redemption, in integral multiples of$5,000 selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the redemption date, on January 1, 20_, in the principal amount of$ The Bonds due on January 1, 20_, are subject to mandatory redemption, in integral multiples of $5,000 selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the redemption date, on January I of the years and in the principal amounts as follows: -14- YEAR PRINCIPAL AMOUNT 20 $ ,000 20 ,000 20 ,000 20 ,000 The Bonds due on January 1, 20_, are subject to mandatory redemption, in integral multiples of $5,000 selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the redemption date, on January I of the years and in the principal amounts as follows: YEAR PRINCIPAL AMOUNT 20 $ ,000 20 ,000 20 ,000 20 ,000 The principal amounts of Bonds to be mandatorily redeemed in each year may be reduced through the earlier optional redemption thereof, with any partial optional redemptions of such Bonds credited against future mandatory redemption requirements in such order of the mandatory redemption dates as the City may determine. In addition, on or prior to the 60th day preceding any mandatory redemption date, the Bond Registrar may, and if directed by the City Council shall, purchase Bonds required to be retired on such mandatory redemption date. Any such Bonds so purchased shall be cancelled and the principal amount thereof shall be credited against the mandatory redemption required on such next mandatory redemption date. Section 11. Redemption Procedures. The Certificates subject to redemption shall be identified, notice given, and paid and redeemed pursuant to the procedures as follows: A. Notice to Registrar. The Certificate Registrar shall effect the mandatory redemption of the Certificates described in Section 10 hereof without further order or direction. The City shall, at least 45 days prior to a redemption date (unless a shorter -15- time period shall be satisfactory to the Certificate Registrar), notify the Certificate Registrar of any optional redemption date and of the maturities (and, if applicable, the scheduled mandatory redemptions affected) and principal amounts of Certificates to be redeemed. B. Selection of Certificates within a Maturity. For purposes of any redemption of less than all of the Certificates of a single maturity, the particular Certificates or portions of Certificates to be redeemed shall be selected by lot by the Certificate Registrar for the Certificates of such maturity by such method of lottery as the Certificate Registrar shall deem fair and appropriate; provided, that such lottery shall provide for the selection for redemption of Certificates or portions thereof so that any $5,000 Certificate or $5,000 portion of a Certificate shall be as likely to be called for redemption as any other such $5,000 Certificate or $5,000 portion. The Certificate Registrar shall make such selection upon the earlier of the irrevocable receipt of funds sufficient to pay the redemption price of the Certificates to be redeemed or the time of the giving of official notice of redemption. C. Official Notice of Redemption. The Certificate Registrar shall promptly notify the City in writing of the Certificates or portions of Certificates selected for redemption and, in the case of any Certificate selected for partial redemption, the principal amount thereof to be redeemed. Unless waived by the registered owner of Certificates to be redeemed, official notice of any such redemption shall be given by the Certificate Registrar on behalf of the City by mailing the redemption notice by first class U.S. mail not less than 30 days and not more than 60 days prior to the date fixed for redemption to each registered owner of the Certificate or Certificates to be redeemed at the address shown on the Certificate Register or at such other address as is furnished in -16- writing by such registered owner to the Certificate Registrar. All official notices of redemption shall include the name of the Certificates and at least the information as follows: (1) the redemption date; (2) the redemption price; (3) if less than all of the outstanding Certificates of a particular maturity are to be redeemed, the identification (and, in the case of partial redemption of Certificates within such maturity, the respective principal amounts) of the Certificates to be redeemed; (4) a statement that on the redemption date the redemption price will become due and payable upon each such Certificate or portion thereof called for redemption and that interest thereon shall cease to accrue from and after said date; and (5) the place where such Certificates are to be surrendered for payment of the redemption price, which place of payment shall be the office maintained for the purpose by the Certificate Registrar. D. Conditional Redemption. Unless moneys sufficient to pay the redemption price of the Certificates to be redeemed shall have been received by the Certificate Registrar prior to the giving of such notice of redemption, such notice may, at the option of the City, state that said redemption shall be conditional upon the receipt of such moneys by the Certificate Registrar on or prior to the date fixed for redemption. If such moneys are not received, such notice shall be of no force and effect, the City shall not redeem such Certificates, and the Certificate Registrar shall give notice, in the same -17- manner in which the notice of redemption shall have been given, that such moneys were not so received and that such Certificates will not be redeemed. E. Certificates Shall Become Due. Subject to the stated condition in paragraph D, official notice of redemption having been given as described, the Certificates or portions of Certificates so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall not make full payment of the redemption price) such Certificates or portions of Certificates shall cease to bear interest. Upon surrender of such Certificates for redemption in accordance with said notice, such Certificates shall be paid by the Certificate Registrar at the redemption price. The procedure for the payment of interest due as part of the redemption price shall be as herein provided for payment of interest otherwise due. F. Insufficiency in Notice Not Affecting Other Certificates; Failure to Receive Notice; Waiver. Neither the failure to mail such redemption notice, nor any defect in any notice so mailed, to any particular registered owner of a Certificate, shall affect the sufficiency of such notice with respect to other registered owners. Notice having been properly given, failure of a registered owner of a Certificate to receive such notice shall not be deemed to invalidate, limit or delay the effect of the notice or redemption action described in the notice. Such notice may be waived in writing by a registered owner of a Certificate entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by registered owners shall be filed with the Certificate Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. In lieu of the foregoing official notice, so long as the Certificates are held in Book Entry -18- Form, notice may be given as provided in the Letter of Representations, and the giving of such notice shall constitute a waiver by the Depository and the Book Entry Owner, as registered owner, of the foregoing notice. G. New Certificate in Amount Not Redeemed. Upon surrender for any partial redemption of any Certificate, there shall be prepared for the registered owner a new Certificate or Certificates of like tenor, of authorized denominations, of the same maturity, and bearing the same rate of interest in the amount of the unpaid principal. H. Effect of Nonpayment upon Redemption. If any Certificate or portion of Certificate called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid or duly provided for, bear interest from the redemption date at the rate borne by the Certificate or portion of Certificate so called for redemption. L Certificates to Be Cancelled; Payment to Identify Certificates. All Certificates which have been redeemed shall be cancelled and destroyed by the Certificate Registrar and shall not be reissued. Upon the payment of the redemption price of Certificates being redeemed, each check or other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by issue and maturity, the Certificates being redeemed with the proceeds of such check or other transfer. J. Additional Notice. The City agrees to provide such additional notice of redemption as it may deem advisable at such time as it determines to redeem Certificates, taking into account any requirements or guidance of the Securities and Exchange Commission, the Municipal Securities Rulemaking Board, the Government Accounting Standards Board, or any other federal or state agency having jurisdiction or authority in such matters; provided, however, that such additional notice shall be (1) advisory in -19- nature, (2) solely in the discretion of the City, (3)not be a condition precedent of a valid redemption or a part of the Certificate contract, and (4) any failure or defect in such notice shall not delay or invalidate the redemption of Certificates for which proper official notice shall have been given. Reference is also made to the provisions of the Continuing Disclosure Undertaking of the City with respect to the Certificates, which may contain other provisions relating to notice of redemption of Certificates. K. Certificate Registrar to Advise City. As part of its duties hereunder, the Certificate Registrar shall prepare and forward to the City a statement as to notices given with respect to each redemption together with copies of the notices as mailed. Section 12. Registration of Certificates; Persons Treated as Owners. The City shall cause books (the "Certificate Register" as herein defined)for the registration and for the transfer of the Certificates as provided in this Ordinance to be kept at the office maintained for such purpose by the Certificate Registrar, which is hereby constituted and appointed the registrar of the City for the Certificates. The City is authorized to prepare, and the Certificate Registrar or such other agent as the City may designate shall keep custody of, multiple Certificate blanks executed by the City for use in the transfer and exchange of Certificates. Subject to the provisions of this Ordinance relating to the Certificates in Book Entry Form, any Certificate may be transferred or exchanged, but only in the manner, subject to the limitations, and upon payment of the charges as set forth in this Ordinance. Upon surrender for transfer or exchange of any Certificate at the office of the Certificate Registrar maintained for the purpose, duly endorsed by or accompanied by a written instrument or instruments of transfer or exchange in form satisfactory to the Certificate Registrar and duly executed by the registered owner or an attorney for such owner duly authorized in writing, the City shall execute and the Certificate Registrar shall authenticate, date, and deliver in the name of the transferee or transferees or, in the case of -20- an exchange, the registered owner, a new fully registered Certificate or Certificates of the same series and of like tenor, of the same maturity, bearing the same interest rate, of authorized denominations, for a like aggregate principal amount. The Certificate Registrar shall not be required to transfer or exchange any Certificate during the period from the close of business on the Record Date for an interest payment to the opening of business on such interest payment date or during the period of 15 days preceding the giving of notice of redemption of Certificates or to transfer or exchange any Certificate all or a portion of which has been called for redemption. The execution by the City of any fully registered Certificate shall constitute full and due authorization of such Certificate; and the Certificate Registrar shall thereby be authorized to authenticate, date, and deliver such Certificate; provided, however, the principal amount of Certificates of each maturity authenticated by the Certificate Registrar shall not at any one time exceed the authorized principal amount of Certificates for such maturity less the amount of such Certificates which have been paid. The person in whose name any Certificate shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any Certificate shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Certificate to the extent of the sum or sums so paid. No service charge shall be made to any registered owner of Certificates for any transfer or exchange of Certificates, but the City or the Certificate Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Certificates. Section 13. Form of Certificate. The Certificates shall be in substantially the form hereinafter set forth; provided, however, that if the text of the Certificates is to be printed in its entirety on the front side of the Certificates, then the second paragraph on the front side and the -21- legend "See Reverse Side for Additional Provisions" shall be omitted and the text of paragraphs set forth for the reverse side shall be inserted immediately after the first paragraph. _22_ [FORM OF CERTIFICATE -FRONT SIDE] REGISTERED REGISTERED No. $ UNITED STATES OF AMERICA STATE OF ILLINOIS THE CITY OF KENDALL UNITED CITY OF YORKVILLE REFUNDING DEBT CERTIFICATE, SERIES 2006A See Reverse Side for Additional Provisions. Interest Maturity Dated Rate: Date: January 1,_ Date: December 19, 2006 CUSIP: Registered Owner: CEDE&CO. Principal Amount: Dollars KNOW ALL PERSONS BY THESE PRESENTS that the United City of Yorkville, Kendall County, Illinois, a municipality and political subdivision of the State of Illinois (the "City"), hereby acknowledges itself to owe and for value received promises to pay from the source and as hereinafter provided to the Registered Owner identified above, or registered assigns, on the Maturity Date identified above (subject to right of prior redemption), the Principal Amount identified above and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) on such Principal Amount from the later of the Dated Date of this Certificate identified above or from the most recent interest payment date to which interest has been paid or duly provided for, at the Interest Rate per annum identified above, such interest to be payable on January I and July 1 of each year, commencing July 1, 2007, until said Principal Amount is paid or duly provided for. The principal of or redemption price on this Certificate is payable in lawful money of the United States of America upon presentation hereof at the office maintained for such purpose of The Bank of New York Trust Company, N.A., Chicago,Illinois, as paying agent and registrar (the "Certificate Registrar"). Payment of interest shall be made to the Registered -23- Owner hereof as shown on the registration books of the City maintained by the Certificate Registrar at the close of business on the applicable Record Date (the "Record Date"). The Record Date shall be the 15th day of the month next preceding any regular interest payment date and 15 days preceding any other interest payment date. Interest shall be paid by check or draft of the Certificate Registrar, payable upon presentation in lawful money of the United States of America, mailed to the address of such Registered Owner as it appears on such registration books or at such other address furnished in writing by such Registered Owner to the Certificate Registrar, or as otherwise agreed by the City and the Certificate Registrar and a qualified securities clearing corporation as depository, or nominee, for so long as this Certificate shall be in Book Entry Form as provided for same. Reference is hereby made to the further provisions of this Certificate set forth on the reverse hereof, and such further provisions shall for all purposes have the same effect as if set forth at this place. It is hereby certified and recited that all conditions, acts, and things required by the Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the issuance of this Certificate, including Applicable Law as defined herein, have existed and have been properly done, happened, and been performed in regular and due form and time as required by law; that the obligation to make payments due hereon are a lawful direct general obligation of the City payable from the corporate funds of the City and such other sources of payment as are otherwise lawfully available; that the total amount due under each of the Prior Agreements, represented by the Certificates, together with all other indebtedness of the City, is within all statutory and constitutional debt limitations; and that the City shall appropriate funds annually and in a timely manner so as to provide for the making of all payments hereon when due. THE OWNER OF THIS CERTIFICATE ACKNOWLEDGES THAT THERE IS NO STATUTORY AUTHORITY FOR THE -24- LEVY OF A SEPARATE TAX IN ADDITION TO OTHER TAXES OF THE CITY OR THE LEVY OF A SPECIAL TAX UNLIMITED AS TO RATE OR AMOUNT TO PAY ANY OF THE AMOUNTS DUE HEREUNDER. This Certificate shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Certificate Registrar. IN WITNESS WHEREOF the United City of Yorkville, Kendall County, Illinois, by its City Council, has caused this Certificate to be executed by the manual or duly authorized facsimile signature of its Mayor and attested by the manual or duly authorized facsimile signature of its City Clerk and its corporate seal or a facsimile thereof to be impressed or reproduced hereon, all as appearing hereon and as of the Dated Date identified above. Mayor, United City of Yorkville, Kendall County,Illinois ATTEST: City Clerk United City of Yorkville, Kendall County, Illinois [SEAL] -25- Date of Authentication: CERTIFICATE OF Certificate Registrar and Paying Agent: AUTHENTICATION This Certificate is one of the Certificates The Bank of New York Trust Company, described in the within-mentioned Ordinance N.A., Chicago, Illinois, and is one of the Refunding Debt Certificates, Series 2006A, having a Dated Date of December 16, 2006, of the United City of Yorkville, Kendall County, Illinois. THE BANK OF NEW YORK TRUST COMPANY, N.A., Chicago,Illinois, as Certificate Registrar By Authorized Officer [FORM OF CERTIFICATE - REVERSE SIDE] This Certificate is one of a series (the "Certificates") in the aggregate principal amount of $5,525,000 (Five Million Five Hundred and Twenty-Five Thousand Dollars) issued by the City for the purpose of providing funds to pay part of the cost of a certain refunding ("Refunding") of previously issued Debt Certificates (Capital Appreciation), Series 2002, Refunding Debt Certificates, Series 2002A, and Debt Certificates, Series 2003, all as described and defined in the ordinance authorizing the Certificates (the "Ordinance"), pursuant to and in all respects in compliance with the applicable provisions of the Illinois Municipal Code, as supplemented and amended, and in particular as supplemented by the Local Government Debt Reform Act of the State of Illinois, as amended, and the other Omnibus Bond Acts of the State of Illinois ("Applicable Law"), and with the Ordinance, numbered , which has been duly passed by the City Council of the City on the 14th day of November 2006, and signed by the Mayor, in all respects as by law required. The Certificates issued by the City in connection with the aforesaid Refunding have been issued in evidence of the indebtedness incurred pursuant to -26- each of the Prior Agreements as defined in the Ordinance. Each of the Prior Agreements has been entered into by and between the City and its Treasurer, as Seller-Nominee, and reference is hereby expressly made to same for further definitions and terms and to all the provisions of which the holder by the acceptance of this Certificate assents. This Certificate is subject to provisions relating to registration, transfer, and exchange; redemption and notice and procedure for redemption; and such other terms and provisions relating to security and payment as are set forth in the Ordinance; to which reference is hereby expressly made; and to all the terms of which the registered owner hereof is hereby notified and shall be subject. The City and the Certificate Registrar may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes, and neither the City nor the Certificate Registrar shall be affected by any notice to the contrary. The City has designated this Certificate as a "qualified tax-exempt obligation" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. -27- ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto [Here insert identifying number such as TID, SSN, or other] (Name and Address of Assignee) the within Certificate and does hereby irrevocably constitute and appoint as attorney to transfer the said Certificate on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: NOTICE: The signature to this assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Certificate in every particular, without alteration or enlargement or any change whatever. Section 14. Sale of Certificates; Official Statement. The Certificates shall be executed as in this Ordinance provided as soon after the passage hereof as may be, shall be deposited with Treasurer, and shall thereupon be delivered to the Purchaser upon payment of the Purchase Price, plus accrued interest to date of delivery. The contract for the sale of the Certificates to the Purchaser(the "Purchase Contract"), as evidenced by a Bond Purchase Agreement presented by the purchaser in form as submitted to and presented to the City Council at this meeting, and as executed by the Purchaser, is hereby in all respects approved and confirmed, and the officer(s) of the City designated in such Bond Purchase Agreement are authorized and directed to execute such Bond Purchase Agreement on behalf of the City, it being hereby declared that, to the best of the knowledge and belief of the members of the City Council, after due inquiry, no person -28- holding any office of the City, either by election or appointment, is in any manner financially interested, either directly in his or her own name or indirectly in the name of any other person, association, trust or corporation, in the such Bond Purchase Agreement for the sale of the Certificates to the Purchaser. The "Deemed Final" Official Statement of the City, dated , 2006 the ("DFOS"), relating to the Certificates, presented to the City Council with the Ordinance, is hereby ratified and approved. The Official Statement of the City, consisting of the DFOS with permissible completions and corrections, to be dated within seven business days of the date of adoption of this Ordinance, relating to the Certificates (the "Official Statement"), is hereby authorized, and the Purchaser is hereby authorized on behalf of the City to distribute copies of the Official Statement to the ultimate purchasers of the Certificates. Such officer or officers of the City as are indicated are hereby authorized to execute and deliver the Official Statement on behalf of the City. Section 15. Creation of Funds and Appropriations;Refunding;Escrow Agreement. A. There is hereby created the "Refunding Debt Certificates, Series 2006A, Certificate Fund" (the "Certificate Fund"), which shall be the fund for the payment of the principal of and interest on the Certificates. Accrued interest, if any, received upon delivery of the Certificates shall be deposited into the Certificate Fund and be applied to pay the first interest coming due on the Certificates. Funds lawfully available for the purpose shall be deposited into the Certificate Fund and used solely and only for the purpose of paying the principal of and interest on the Certificates. Interest income or investment profit earned in the Certificate Fund shall be retained in the Certificate Fund for payment of the principal of or interest on the Certificates on the interest payment date next after such interest or profit is received or, to the extent lawful and as determined by the City Council, transferred to such other fund as may be determined. Moneys in the Certificate Fund shall be applied to pay principal of and interest on the Certificates when due. -29- B. The amount necessary from the proceeds of the Certificates shall be used either to pay expenses directly at the time of issuance of the Certificates or be deposited into a separate fund, hereby created, designated the "Expense Fund," to be used to pay expenses of issuance of the Certificates. Disbursements from such fund shall be made from time to time as necessary. Moneys not disbursed from the Expense Fund within six (6) months shall be transferred by the appropriate financial officers for deposit into the Certificate Fund. C. The amount necessary from the proceeds of the Certificates, along with any funds of the City otherwise lawfully available and dedicated to the purpose, shall be used to provide the deposit to the Escrow Account under the Escrow Agreement, which shall be substantially in the form attached hereto as Exhibit A, incorporated here by reference, and which shall be fully and properly funded to pay the costs of the Refunding. The Escrow Agent is hereby appointed and approved. The call and redemption of the Prior Certificates as of the respective Call Dates is hereby ordered and approved. Section 16. Continuing Disclosure Undertaking. The Mayor or the Clerk is hereby authorized, empowered, and directed to execute and deliver the Continuing Disclosure Undertaking (the "Continuing Disclosure Undertaking") substantially in the form attached hereto as Exhibit B to this Ordinance, made a part hereof by this reference, and hereby approved, the officer signatory to such Continuing Disclosure Undertaking being hereby authorized and directed to execute same, his or her execution to constitute conclusive proof of action in accordance with this Ordinance and approval of all completions or revisions necessary or appropriate to such undertaking. When the Continuing Disclosure Undertaking is executed and delivered on behalf of the City as herein provided, the Continuing Disclosure Undertaking will be binding upon the City and the officers, employees, and agents of the City; and the officers, employees, and agents of the City are hereby authorized, empowered, and directed to do all such -30- acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Continuing Disclosure Undertaking as executed. Notwithstanding any other provision of this Ordinance, the sole remedies for failure to comply with the Continuing Disclosure Undertaking shall be the ability of the beneficial owner of any Certificate to seek mandamus or specific performance by court order to cause the City to comply with its obligations under the Continuing Disclosure Undertaking. Section 17. General Tax Covenants. The City hereby covenants that it will not take any action, omit to take any action, or permit the taking or omission of any action, within its control (including, without limitation, making or permitting any use of the proceeds of the Certificates) if taking, permitting, or omitting to take such action would cause any of the Certificates to be an arbitrage bond or a private activity bond within the meaning of the Code or would otherwise cause the interest on the Certificates to be included in the gross income of the recipients thereof for federal income tax purposes. The City acknowledges that, in the event of an examination by the Internal Revenue Service of the exemption from Federal income taxation for interest paid on the Certificates, under present rules, the City may be treated as the "taxpayer" in such examination and agrees that it will respond in a commercially reasonable manner to any inquiries from the Internal Revenue Service in connection with such an examination. In furtherance of the foregoing provisions, but without limiting their generality, the City agrees: (a) through its officers, to make such further specific covenants, representations as shall be truthful, and assurances as may be necessary or advisable; (b) to comply with all representations, covenants, and assurances contained in certificates or agreements as may be prepared by counsel approving the Certificates; (c) to consult with such counsel and to comply with such advice as may be given; (d) to file such forms, statements, and supporting documents as may be required and in a -31- timely manner; and (e) if deemed necessary or advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys, and other persons to assist the City in such compliance. Section 18. Certain Specific Tax Covenants, A. None of the Prior Certificates was and none of the Certificates shall be a "private activity bond" as defined in Section 141(a) of the Code; and the City certifies, represents, and covenants as follows: (1) Not more than 5% of the net sale proceeds of the Prior Certificates was or 5% of the net proceeds of the Certificates will be used, directly or indirectly, in any trade or business carried on by any person other than a state or local governmental unit. (2) None of the proceeds of the Prior Certificates was or the Certificates will be used, directly or indirectly, to make or finance loans to persons other than a state or local governmental unit. (3) No user of the infrastructure of the City improved or to be improved as part of the projects funded with the proceeds of the Prior Certificates ("Prior Project"), other than the City or another governmental unit, will use the same on any basis other than the same basis as the general public; and no person, other than the City or another governmental unit, will be a user-of such infrastructure as a result of (i) ownership or (ii) actual or beneficial use pursuant to a lease, a management or incentive payment contract other than as expressly permitted by the Code, or(iii) any other arrangement. B. The Certificates shall not be "arbitrage bonds" under Section 148 of the Code; and the City certifies, represents, and covenants as follows: (1) Except for the Certificate Fund, the City has not created or established and will not create or establish any sinking fund, reserve fund, or any other similar fund to provide for the payment of the Certificates. The Certificate Fund has been established -32- and will be funded in a manner primarily to achieve a proper matching of revenues and debt service and will be depleted at least annually to an amount not in excess of 1/12th the particular annual debt service on the Certificates. Money deposited into the Certificate Fund will be spent within a 13-month period beginning on the date of deposit, and investment earnings in the Certificate Fund will be spent or withdrawn from the Certificate Fund within a one-year period beginning on the date of receipt. (2) Amounts of money related to the Certificates required to be invested at a yield not materially higher than the yield on the Certificates, as determined pursuant to such tax certifications or agreements as the City officers may make in connection with the issuance of the Certificates, shall be so invested; and appropriate City officers are hereby authorized and directed to make such investments. (3) Unless an applicable exception to Section 148(f) of the Code, relating to the rebate of "excess arbitrage profits" to the United States Treasury (the "Rebate Requirement") is available to the City, the City will meet the Rebate Requirement. (4) Relating to applicable exceptions, any City officer charged with issuing the Certificates is hereby authorized to make such elections under the Code as such officer shall deem reasonable and in the best interests of the City. If such election may result in a "penalty in lieu of rebate" as provided in the Code, and such penalty is incurred (the "Penalty"),then the City shall pay such Penalty. (5) The officers of the City shall cause to be established, at such time and in such manner as they may deem necessary or appropriate hereunder, a "Refunding Debt Certificates, Series 2006A Rebate [or Penalty, if applicable]Fund" (the "Rebate Fund") for the Certificates, and such officers shall further, not less frequently than annually, cause to be transferred to the Rebate Fund the amount determined to be the accrued -33- liability under the Rebate Requirement or Penalty. Said officers shall cause to be paid to the United States Treasury, without further order or direction from the City Council, from time to time as required, amounts sufficient to meet the Rebate Requirement or to pay the Penalty. (6) Interest earnings in the Certificate Fund are hereby authorized to be transferred, without further order or direction from the City Council,from time to time as required, to the Rebate Fund for the purposes herein provided; and proceeds of the Certificates and other funds of the City are also hereby authorized to be used to meet the Rebate Requirement or to pay the Penalty but only if necessary after application of investment earnings as aforesaid and only as appropriated by the City Council. C. The City reserves the right to use or invest moneys in connection with the Certificates in any manner, or to use the City infrastructure acquired, constructed, or improved as part of the Prior Project in any manner, notwithstanding the representations and covenants in Sections 17 and 18 herein,provided it shall first have received an opinion from an attorney or a firm of attorneys generally acceptable to purchasers of Tax-exempt bonds ("Recognized Counsel") to the effect that use or investment of such moneys or the changes in or use of such infrastructure as contemplated is authorized under Applicable Law and this Ordinance and will not result in loss or impairment of Tax-exempt status for the Certificates. Section 19. Pertaining to the Certificate Registrar. If requested by the Certificate Registrar, any officer of the City is authorized to execute a standard form of agreement between the City and the Certificate Registrar with respect to the obligations and duties of the Certificate Registrar under this Ordinance. In addition to the terms of such agreement and subject to modification thereby, the Certificate Registrar by acceptance of duties under this Ordinance agrees (a) to act as registrar, paying agent, authenticating agent, and transfer agent as provided -34- herein; (b) to maintain a list of Certificateholders as set forth herein and to furnish such list to the City upon request, but otherwise to keep such list confidential to the extent permitted by law; (c) to cancel and/or destroy Certificates which have been paid at maturity or upon redemption or submitted for exchange or transfer; (d) to furnish the City at least annually a certificate with respect to Certificates cancelled and/or destroyed; and (e)to furnish the City at least annually an audit confirmation of Certificates paid, Certificates outstanding and payments made with respect to interest on the Certificates. The City covenants with respect to the Certificate Registrar, and the Certificate Registrar further covenants and agrees as follows: A. The City shall at all times retain a Certificate Registrar with respect to the Certificates; it will maintain at the designated office(s) of such Certificate Registrar a place or places where Certificates may be presented for payment,registration, transfer, or exchange; and it will require that the Certificate Registrar properly maintain the Certificate Register and perform the other duties and obligations imposed upon it by this Ordinance in a manner consistent with the standards, customs, and practices of the municipal securities industry. B. The Certificate Registrar shall signify its acceptance of the duties and obligations imposed upon it by this Ordinance by executing the certificate of authentication on any Certificate, and by such execution the Certificate Registrar shall be deemed to have certified to the City that it has all requisite power to accept and has accepted such duties and obligations not only with respect to the Certificate so authenticated but with respect to all the Certificates. Any Certificate Registrar shall be the agent of the City and shall not be liable in connection with the performance of its duties except for its own negligence or willful wrongdoing. Any Certificate Registrar -35- shall, however, be responsible for any representation in its certificate of authentication on Certificates. C. The City may remove the Certificate Registrar at any time. In case at any time the Certificate Registrar shall resign, shall be removed, shall become incapable of acting, or shall be adjudicated a bankrupt or insolvent, or if a receiver, liquidator, or conservator of the Certificate Registrar or of the property thereof shall be appointed, or if any public officer shall take charge or control of the Certificate Registrar or of the property or affairs thereof, the City covenants and agrees that it will thereupon appoint a successor Certificate Registrar. The City shall give notice of any such appointment made by it to each registered owner of any Certificate within twenty days after such appointment in the same manner, or as nearly the same as may be practicable, as for a redemption of Certificates. Any Certificate Registrar appointed under the provisions of this Section shall be a bank, trust company, or national banking association maintaining its principal corporate trust office in Illinois and having capital and surplus and undivided profits in excess of $100,000,000. The City Clerk is hereby directed to file a certified copy of this Ordinance with the Certificate Registrar. Section 20. Bond Insurance. In the event the payment of principal of and interest on the Certificates is insured pursuant to a municipal bond insurance policy (a "Municipal Bond Insurance Policy") issued by a bond insurer (a "Bond Insurer"), and as long as such Municipal Bond Insurance Policy shall be in full force and effect, the City and the Certificate Registrar agree to comply with such usual and reasonable provisions regarding presentment and payment of the Certificates, subrogation of the rights of the Certificateholders to the Bond Insurer when holding Certificates, amendment hereof, or other terms, as approved by the Mayor on advice of -36- counsel, his or her approval to constitute full and complete acceptance by the City of such terms and provisions under authority of this section. Section 21. Defeasance. Any Certificate or Certificates which (a) are paid and cancelled, (b) which have matured and for which sufficient sums have been deposited with the Certificate Registrar to pay all principal and interest due thereon, or (c) for which sufficient United States of America dollars and direct United States Treasury obligations have been deposited with the Certificate Registrar or similar institution to pay, taking into account investment earnings on such obligations, all principal of and interest on (and redemption premium, if any, on) such Certificate or Certificates when due at maturity or as called for redemption, pursuant to an irrevocable escrow or trust agreement, shall cease to have any lien on or right to receive or be paid from the Certificate Moneys hereunder and shall no longer have the benefits of any covenant for the registered owners of outstanding Certificates as set forth herein as such relates to lien and security of the outstanding Certificates. All covenants relative to the Tax-exempt status of the Certificates; and payment, registration, transfer, and exchange; are expressly continued for all Certificates whether outstanding Certificates or not. -37- Section 22. Superseder and Effective Date. All ordinances, resolutions, and orders, or parts thereof, in conflict herewith, are to the extent of such conflict hereby superseded; and this Ordinance shall be in full force and effect upon its passage and approval as provided by law. ADOPTED by the City Council on the 14th day of November, 2006, pursuant to a roll call vote as follows: PAUL JAMES MARTY MUNNS JASON LESLIE JIM BOCK VALERIE BURD ROSE SPEARS DEAN WOLFER JOSEPH BESCO APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, the 14th day of November, 2006. MAYOR PASSED by the City Council of the United City of Yorkville, Kendall County, Illinois, the 14th day of November, 2006. Attest: CITY CLERK -38- EXTRACT of MINUTES of the regular public meeting of the City Council of the United City of Yorkville, Kendall County, Illinois, held in the City Council Chambers of City Hall, located at 800 Game Farm Road, in said City, at 7:00 p.m., on Tuesday, the 14th day of November 2006. The Mayor called the meeting to order and directed the City Clerk to call the roll. Upon the roll being called, the Mayor, Art Prochaska, and the following Aldermen answered present: All of the foregoing named persons, Mayor and Aldermen, were physically present at said time and place. The following were absent: The City Council then discussed the proposed refunding of previously issued debt certificates. Thereupon, Alderman presented, and there was placed before each Alderman in full the following ordinance: AN ORDINANCE of the United City of Yorkville, Kendall County, Illinois, authorizing and providing for $5,525,000 Refunding Debt Certificates, Series 2006A, evidencing interests in Installment Purchase Agreements, as assigned, and providing for the security for and means of payment under the Agreements of the Certificates. (the "Certificate Ordinance"). Alderman moved and Alderman seconded the motion that the Certificate Ordinance as presented be adopted. A City Council discussion of the matter followed. During the City Council discussion, gave a public recital of the nature of the matter, which included a complete reading of the title of the Certificate Ordinance. The Mayor directed that the roll be called for a vote upon the motion to adopt the Certificate Ordinance. Upon the roll being called, the following Aldermen voted AYE: and the following Aldermen voted NAY: WHEREUPON the Mayor declared the motion carried and the Certificate Ordinance adopted and did direct the City Clerk to record the same in full in the records of the City Council of the United City of Yorkville, Kendall County, Illinois. Other business was duly transacted at said meeting. Upon motion duly made and carried,the meeting adjourned. City Clerk -2- STATE OF ILLINOIS ) ) SS COUNTY OF KENDALL ) CERTIFICATION OF MINUTES AND ORDINANCE I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the United City of Yorkville, Kendall County, Illinois (the "City"), and as such official I am the keeper of the official journal of proceedings, books, records, minutes, and files of the City and of the City Council (the "City Council")thereof. I do further certify that the foregoing is a full,true, and complete transcript of that portion of the minutes of the meeting (the "Meeting") of the City Council held on the 14th day of November 2006 insofar as the same relates to the adoption of an ordinance, numbered and entitled: AN ORDINANCE of the United City of Yorkville, Kendall County, Illinois, authorizing and providing for $5,525,000 Refunding Debt Certificates, Series 2006A, evidencing interests in Installment Purchase Agreements, as assigned, and providing for the security for and means of payment under the Agreements of the Certificates. (the "Ordinance") a true, correct, and complete copy of which Ordinance as adopted at the Meeting appears in the foregoing transcript of the minutes of the meeting. I do further certify that the deliberations of the City Council on the adoption of the Ordinance were taken openly; that the vote on the adoption of the Ordinance was taken openly; that the Meeting was held at a specified time and place convenient to the public; that notice of the Meeting was duly given to all newspapers, radio or television stations, and other news media requesting such notice; that an agenda for the Meeting (the "Agenda"),which Agenda contained a separate specific item concerning the proposed adoption of the Ordinance, was posted at the location where the Meeting was held and at the principal office of the City Council at least 96 hours in advance of the holding of the Meeting, and a true, correct and complete copy of which Agenda is attached hereto; and that the Meeting was called and held in strict compliance with the provisions of the Open Meetings Act of the State of Illinois, as amended, and the Illinois Municipal Code, as amended, and that the City Council has complied with all of the provisions of said Act and said Code and with all of the procedural rules of the City Council in the adoption of the Ordinance. IN WITNESS WHEREOF I hereunto affix my official signature and the seal of the City this 14th day of November 2006. City Clerk [SEAL] -2- STATE OF ILLINOIS ) ) SS COUNTY OF KENDALL ). CERTIFICATE OF FILING We, the undersigned, do hereby certify that we are, respectively, the duly qualified and acting City Clerk and Treasurer of the United City of Yorkville, Kendall County, Illinois (the "City"), and as such officers we do hereby certify that on the_day of 2006 there was filed with each of us, respectively, and placed on deposit in our respective records, a properly certified copy of Ordinance Number passed by the City Council of the City, on the 14th day of November 2006, and approved by the Mayor, and entitled: AN ORDINANCE of the United City of Yorkville, Kendall County, Illinois, authorizing and providing for $5,525,000 Refunding Debt Certificates, Series 2006A, evidencing interests in Installment Purchase Agreements, as assigned, and providing for the security for and means of payment under the Agreements of the Certificates. IN WITNESS WHEREOF we have hereunto affixed our official signatures and the seal of the United City of Yorkville, Kendall County, Illinois,this_day of 2006. City Clerk [SEAL] Treasurer `,<0e.0 C/p` Reviewed By: J� O� Legal F-1 City Council a 9ti g EST 1836 Finance F1 1 Engineer ❑ Agenda Item Tracking Number 100 C� � y City Administrator ❑ ;P O Consultant ❑ ILE F-1 City Council Agenda Item Summary Memo Title: $3,000,000 General Obligation Refunding Bonds (Alternate Revenue Source) Series 2006B City Council / Committee of the Whole Date: City Council 11/14/06 Synopsis: Council Action Previously Taken: Date of Action: Action Taken: Item Number: Type of Vote Required: Council Action Requested: Vote on this Ordinance Submitted by: Susan Mika Finance Name Department Agenda Item Notes: ORDINANCE No. A N ORDINANCE authorizing and providing for the issue of $3,000,000 General Obligation Refunding Bonds (Alternate Revenue Source), Series 2006B, of the United City of Yorkville, Kendall County, Illinois, for the purpose of refunding a portion of the City's outstanding Debt Certificates, Series 2003, prescribing the details of said bonds, and providing for the imposition of taxes to pay the same, and for the collection, segregation and application of the waterworks and sewerage system revenues to pay said Bonds. TABLE OF CONTENTS SECTION HEADING PAGE PREAMBLES .................................................................................................................................1 Section1. Definitions ...............................................................................................5 Section 2. Incorporation of Preambles.......................................................................9 Section 3. Determination To Issue Bonds;Useful Life..............................................9 Section4. Bond Details.............................................................................................9 Section5. Redemption............................................................................................10 Section 6. Execution; Authentication......................................................................13 Section 7. Registration of Bonds;Persons Treated as Owners; Global Book-Entry System...........................................................................14 Section8. Form of Bonds .......................................................................................18 Section 9. Sale of the Bonds....................................................................................27 Section 10. Treatment of Bonds As Debt..................................................................27 Section 11. Continuation of Waterworks and Sewerage Fund and Accounts;Flow of Funds..................................................................28 Section 12. 2006 Alternate Bond Fund......................................................................31 Section 13. Use of Bond Proceeds ............................................................................31 Section 14. Pledged Taxes;Tax Levy .......................................................................32 Section 15. Filing with County Clerk........................................................:...............33 Section 16. Abatement of Pledged Taxes..................................................................34 Section 17. General Covenants .................................................................................34 Section 18. Future Revenue Bonds,Additional Bonds and Subordinate Bonds...............................................................................................38 Section 19. Defeasance.............................................................................................39 Section 20. This Ordinance a Contract......................................................................39 Section 21. Call of the Refunded Obligations............................................................39 Section 22. Bond Registrar Covenants......................................................................40 Section 23. Non-Arbitrage and Tax-Exemption.........................................................40 Section 24. Registered Form.....................................................................................42 Section 25. Municipal Bond Insurance......................................................................42 Section 26, Continuing Disclosure Undertaking........................................................42 Section27. Severability............................................................................................43 Section28. Repealer.................................................................................................44 Section 29. Effective Date ........................................................................................44 This Table of Contents is for convenience only and is not a part of the ordinance. ORDINANCE NO. AN ORDINANCE authorizing and providing for the issue of$3,000,000 General Obligation Refunding Bonds (Alternate Revenue Source), Series 2006B, of the United City of Yorkville, Kendall County, Illinois, for the purpose of refunding a portion of the City's outstanding Debt Certificates, Series 2003, prescribing the details of said bonds, and providing for the imposition of taxes to pay the same, and for the collection, segregation and application of the waterworks and sewerage system revenues to pay said Bonds. WHEREAS, the United City of Yorkville, Kendall County, Illinois (the "City"), is a duly organized and existing municipality and unit of local government created under the provisions of the laws of the State of Illinois, and is now operating under the provisions of the Illinois Municipal Code, as supplemented and amended (the "Code"), and for many years past has owned and operated a combined waterworks and sewerage system (the "System") in accordance with the provisions of Division 139 of the Code; and WHEREAS, the City Council of the City (the "Corporate Authorities") has determined that it is advisable, necessary and in the best interests of the City to refund certain of the City's outstanding Debt Certificates, Series 2003 (the "Refunded Obligations"); and WHEREAS, the Refunded Obligations are more fully described in an escrow agreement (the "Escrow Agreement") referred to in Section 13 hereof and are presently outstanding and unpaid and are binding and subsisting legal obligations of the City; and WHEREAS, the cost of refunding the Refunded Obligations (the "Refunding") including legal, financial, bond discount, printing and publication costs and other expenses is not less than $3,000,000 and there are insufficient funds on hand and lawfully available to pay such costs; and WHEREAS, pursuant to and in accordance with the provisions of the Code, the City is authorized to issue its waterworks and sewerage revenue bonds for the purpose of providing funds to pay the costs of the Refunding; and WHEREAS, as provided in Section 15 of the Local Government Debt Reform Act of the State of Illinois, as supplemented and amended (the "Act"), whenever revenue bonds have been authorized to be issued pursuant to the Code, the City may issue its general obligation bonds in lieu of such revenue bonds as authorized, and such general obligation bonds may be referred to as "alternate bonds"; and WHEREAS, for the purpose of providing funds to pay the costs of the Refunding and in accordance with the provisions of the Act, the Corporate Authorities, on the 10th day of October, 2006, adopted Ordinance No. (the "Authorizing Ordinance"), authorizing the issuance i of Waterworks and Sewerage Revenue Bonds (the "Revenue Bonds"), as provided in the Code, in an amount not to exceed $6,000,000 or in lieu thereof, authorizing the issuance of General Obligation Bonds (Alternate Revenue Source) (the "Alternate Bonds"), as provided in the Act, in an aggregate principal amount not to exceed $6,000,000; and WHEREAS, on the_day of 2006, the Authorizing Ordinance, together with a separate notice in statutory form, was published in the Kendall County Record, the same being a newspaper of general circulation in the City, and an affidavit evidencing the publication of the Authorizing Ordinance and said notice have heretofore been presented to the Corporate Authorities and made a part of the permanent records of the City; and WHEREAS, more than thirty (30) days have expired since the date of publication of the Authorizing Ordinance and said notice, and no petitions with the requisite number of valid signatures thereon have been filed with the City Clerk requesting that the question of the issuance of the Revenue Bonds or the Alternate Bonds be submitted to referendum; and WHEREAS, the Refunding constitutes a lawful corporate purpose within the meaning of the Act; and WHEREAS, the Corporate Authorities are now authorized to issue the Revenue Bonds to the amount of$6,000,000, or, in lieu thereof, the Alternate Bonds to the amount of$6,000,000 in accordance with the provisions of the Act, and the Corporate Authorities hereby determine that it -2- is necessary and desirable that there be issued at this time $3,000,000 of the Alternate Bonds so authorized; and WHEREAS, the Alternate Bonds to be issued will be payable from the Pledged Revenues and the Pledged Taxes,both as hereinafter defined; and WHEREAS, the Alternate Bonds will be issued on a parity with the hereinafter defined 2004B Alternate Bonds and 2005C Alternate Bonds (collectively, the "Outstanding Alternate Bonds"), which were issued pursuant to Ordinance Numbers 2004-10 and 2005-73, adopted by the Corporate Authorities on February 24, 2004 and August 23, 2005, respectively (collectively, the "Outstanding Alternate Bond Ordinances"); and WHEREAS, the Corporate Authorities have heretofore and it is hereby determined that the Pledged Revenues will be sufficient to provide or pay in each year to final maturity of the Alternate Bonds all of the following: (1) Operation and Maintenance Expenses as hereinafter defined, but not including depreciation, (2) debt service on all outstanding revenue bonds, if any, payable from the Revenues, (3) all amounts required to meet any fund or account requirements with respect to such outstanding revenue bonds, (4) other contractual or tort liability obligations, if any, payable from the Revenues, and (5) in each year, an amount not less than 1.25 times debt service of the Alternate Bonds proposed to be issued and the Outstanding Alternate Bonds; and WHEREAS, such determination of the sufficiency of the Pledged Revenues is supported by reference to the most recent audit of the City, for the fiscal year ended April 30, 2006 (the "Audit"), which Audit has been presented to and accepted by the Corporate Authorities and is now on file with the City Clerk; and WHEREAS, pursuant to and in accordance with the provisions of the Bond Issue Notification Act of the State of Illinois, the Mayor of the City (the "Mayor"), on the 10th day of October, 2006, called a public hearing (the "Hearing") for the 24th day of October, 2006, -3- concerning the intent of the Corporate Authorities to sell not to exceed $6,000,000 General Obligation Bonds (Alternate Revenue Source); and WHEREAS, notice of the Hearing was given (i) by publication at least once not less than seven (7) nor more than thirty (30) days before the date of the Hearing in the Kendall County Record, the same being a newspaper of general circulation in the City, and (ii)by posting at least 48 hours before the Hearing a copy of said notice at the principal office of the Corporate Authorities; and WHEREAS, the Hearing was opened on the 24th day of October, 2006, and adjourned until October 30, 3006; and WHEREAS, the Hearing was held on the 30th day of October, 2006, and at the Hearing, the Corporate Authorities explained the reasons for the proposed bond issue and permitted persons desiring to be heard an opportunity to present written or oral testimony within reasonable time limits; and WHEREAS,the Hearing was finally adjourned on the 30th day of October, 2006, and not less than seven (7)days have passed since the final adjournment of the Hearing; and WHEREAS, the Property Tax Extension Limitation Law of the State of Illinois, as amended by Public Act 89-385 (the "Tax Limitation Law"), imposes certain limitations on the "aggregate extension" of certain property taxes levied by the City, but provides that the definition of"aggregate extension" contained in Section 18-185 of the Tax Limitation Law does not include "extensions . . . payments of principal and interest on bonds issued under Section 15 of the Local Government Debt Reform Act;" and WHEREAS, the County Clerk of Kendall County, Illinois (the "County Clerk"), is therefore authorized to extend and collect said direct annual and valorem tax so levied for the payment of the Bonds for the Refunding, as alternate bonds, without limitation as to rate or amount: -4- Now THEREFORE Be It Ordained by the City Council of the United City of Yorkville, Kendall County, Illinois, as follows: Section 1. Definitions. The following words and terms used in this ordinance shall have the following meanings unless the context or use clearly indicates another or different meaning is intended: "Act" means the Local Government Debt Reform Act of the State of Illinois, as amended. "Additional Bonds" means any alternate bonds issued in the future in accordance with the provisions of the Act on a parity with and sharing ratably and equally in the Pledged Revenues with the Bonds and Outstanding Alternate Bonds. "Alternate Bond and Interest Subaccount" means the Alternate Bond and Interest Subaccount maintained hereunder and further described by Section 11 of this Ordinance. "Bond" or "Bonds" means one or more, as applicable, of the $3,000,000 General Obligation Refunding Bonds (Alternate Revenue Source), Series 2006B, authorized to be issued by this Ordinance. "Bond Fund" means the 2006 Alternate Bond Fund established hereunder and further described by Section 12 of this Ordinance. "Bond Register" means the books of the City kept by the Bond Registrar to evidence the registration and transfer of the Bonds. "Bond Registrar" means The Bank of New York Trust Company, N.A., located in the City of Chicago,Illinois, or successor thereto or designated hereunder, in its respective capacities as bond registrar and paying agent. "City" means the United City of Yorkville, Kendall County,Illinois. "City Clerk" means the City Clerk of the City. "City Treasurer" means the Treasurer of the City. -5- "Code" means the Illinois Municipal Code, as supplemented and amended. "Corporate Authorities" means the City Council of the City. "Escrow Agent" means The Bank of New York Trust Company, N.A., Chicago, Illinois, a national banking association having trust powers, or a successor thereto or a successor designated as Escrow Agent hereunder. "Escrow Agreement" means the agreement by and between the City and the Escrow Agent as authorized in Section 13 hereof and set forth as Exhibit A. "Expense Fund" means the fund established hereunder and further described by Section 13 of this Ordinance. "Fiscal Year" means that twelve-calendar month period beginning on May 1 of the calendar year and ending on the next succeeding April 30. "Future Bond Ordinances" means the ordinances of the City authorizing the issuance of bonds payable from the Revenues,but not including the Outstanding Alternate Bond Ordinances, this Ordinance or any other ordinance authorizing the issuance of Additional Bonds. "IRC" means the Internal Revenue Code of 1986, as amended. "Mayor" means the Mayor of the City. "Operation and Maintenance Costs" means all costs of operating, maintaining and routine repair of the System, including wages, salaries, costs of materials and supplies, power, fuel, insurance, purchase of water and sewage treatment services (including all payments by the City pursuant to long term contracts for such services as and to the extent provided in such contracts); but excluding debt service, depreciation, or any reserve requirements; and otherwise determined in accordance with generally accepted accounting principles for municipal enterprise funds. "Ordinance" means this Ordinance as originally adopted and as the same may from time to time be amended or supplemented in accordance with terms hereof. -6- "Outstanding" when used with reference to the Bonds, the Outstanding Alternate Bonds and Additional Bonds means such of those bonds which are outstanding and unpaid; provided, however, such term shall not include any of the Bonds, the Outstanding Alternate Bonds or Additional Bonds (i) which have matured and for which moneys are on deposit with proper paying agents or are otherwise sufficiently available to pay all principal thereof and interest thereon or(ii) the provision for payment of which has been made by the City by the deposit in an irrevocable trust or escrow of funds or direct, full faith and credit obligations of the United States of America, the principal of and interest on which will be sufficient to pay at maturity or as called for redemption all the principal of and interest on such Bonds, the Outstanding Alternate Bonds or Additional Bonds. "Outstanding Alternate Bonds" means, collectively, the 2004B Alternate Bonds and the 2005C Alternate Bonds. "Pledged Moneys" means,collectively, the Pledged Revenues and the Pledged Taxes. "Pledged Revenues" means (i) the moneys deposited to the credit of the Alternate Bond and Interest Subaccount within the Surplus Account of the Waterworks and Sewerage Fund, said Surplus Account consisting of the funds remaining in said Waterworks and Sewerage Fund after the required monthly deposits and credits have been made to the Operation and Maintenance Account, the Depreciation Account and any other accounts as may be created in the future, of said Waterworks and Sewage Fund, (ii) all collections distributed to the City pursuant to the State Revenue Sharing Act from those taxes imposed by the State of Illinois pursuant to subsections (a) and (c) of Section 201 of the Illinois Income Tax Act, as supplemented and amended from time to time, or substitute taxes therefor as provided by the State of Illinois in the future, and (iii) such other funds of the City as may be necessary and on hand from time to time and lawfully available for such purpose. -7- "Pledged Taxes" means the ad valorem taxes levied against all of the taxable property in the City without limitation as to rate or amount, pledged hereunder by the City as security for the Bonds. "Revenues" means all income from whatever source derived from the System, including (i) investment income; (ii) connection, permit and inspection fees and the like; (iii)penalties and delinquency charges; (iv) capital development, reimbursement, or recovery charges and the like; (v) annexation or pre-annexation charges insofar as designated by the Corporate Authorities as paid for System connection or service; but excluding expressly (a) non-recurring income from the sale of property of the System; (b) governmental or other grants; (c) advances or grants made from the City; and as otherwise determined in accordance with generally accepted accounting principles for municipal enterprise funds. "System" refers to all property, real, personal or otherwise owned or to be owned by the City or under the control of the City, and used for waterworks and sewerage purposes, including any and all further extensions, improvements and additions to the System. "Tax-exempt" means, with respect to the Bonds, the status of interest paid and received thereon as not includable in the gross income of the owners thereof under the IRC for federal income tax purposes except to the extent that such interest will be taken into account in computing an adjustment used in determining the alternative minimum tax for certain corporations. "Waterworks and Sewerage Fund" means the Waterworks and Sewerage Fund of the City created under the Outstanding Alternate Bond Ordinances and continued hereunder. "2004B Alternate Bonds" means the $3,500,000 original aggregate principal amount General Obligation Bonds (Alternate Revenue Source), Series 2004B; less any of said bonds that are no longer"Outstanding" hereunder. -8- "2005C Alternate Bonds" means the $2,000,000 original aggregate principal amount General Obligation Bonds (Alternate Revenue Source), Series 2005C; less any of said bonds that are no longer"Outstanding" hereunder. Section 2. Incorporation of Preambles. The Corporate Authorities hereby find that the recitals contained in the preambles to this Ordinance are true, correct and do hereby incorporate them into this Ordinance by this reference. Section 3. Determination To Issue Bonds; Useful Life. It is necessary and in the best interests of the City for the City to undertake the Refunding for the public health, safety and welfare, in accordance with the estimate of costs therefor as described, and to issue the Bonds to enable the City to pay the costs thereof. The useful life of the System is hereby determined to be not less than 25 years from the date hereof. Section 4. Bond Details. For the purpose of providing for the payment of costs of the Refunding, there shall be issued and sold the Bonds in the aggregate principal amount of $3,000,000. The Bonds shall each be designated "General Obligation Refunding Bond (Alternate Revenue Source), Series 200613", shall be dated the date of issuance therefor, and shall also bear the date of authentication, shall be in fully registered form, shall be in denominations of$5,000 each or authorized integral multiples thereof(but no single Bond shall represent installments of principal maturing on more than one date), and shall be numbered 1 and upward, and shall become due and payable serially or be subject to mandatory redemption (subject to prior redemption as hereinafter described) on December 30 of each of the years,in the amounts and bearing interest at the rates per annum as follows: -9- YEAR OF PRINCIPAL RATE OF MATURITY AMOUNT INTEREST 2007 $ % 2008 % 2009 % 2010 % 2011 % 2012 % 2013 % 2014 2015 % 2016 % 2017 % 2018 % 2019 % 2020 % 2021 % 2022 % The Bonds shall bear interest from their date or from the most recent interest payment date to which interest has been paid or duly provided for, until the principal amount of the Bonds is paid, such interest(computed upon the basis of a 360-day year of twelve 30-day months) being payable semi-annually on June 30, 2007, and on June 30 and December 30 of each year thereafter to maturity. Interest on each Bond shall be paid by check or draft of The Bank of New York Trust Company, N.A., Chicago, Illinois, as bond registrar and paying agent (the "Bond Registrar"), payable upon presentation in lawful money of the United States of America, to the person in whose name such Bond is registered at the close of business on the I st day of the month of any interest payment date. The principal of and premium, if any, on the Bonds shall be payable in lawful money of the United States of America at the principal corporate trust office of the Bond Registrar. Section 5. Redemption. (a) Optional Redemption. The Bonds due on and after December 30, 20_, are subject to redemption prior to maturity at the option of the City, from -10- any available funds, in whole or in part, on any date on or after December 30, 20_, and if in part, in any order of maturity as selected by the City, and if less than an entire maturity, in integral multiples of$5,000, selected by lot by the Bond Registrar as hereinafter provided, at the redemption price of par, plus accrued interest to the redemption date. (b) General Redemption Provisions. The City shall, at least 45 days prior to the redemption date (unless a shorter time period shall be satisfactory to the Bond Registrar), notify the Bond Registrar of such redemption date and of the principal amount and maturities of Bonds to be redeemed. For purposes of any redemption of less than all of the Bonds of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected by lot not more than 60 days prior to the redemption date by the Bond Registrar for the Bonds of such maturity by such method of lottery as the Bond Registrar shall deem fair and appropriate; provided, that such lottery shall provide for the selection for redemption of Bonds or portions thereof so that any $5,000 Bond or $5,000 portion of a Bond shall be as likely to be called for redemption as any other such$5,000 Bond or$5,000 portion. The Bond Registrar shall promptly notify the City in writing of the Bonds or portions of Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the principal amount thereof to be redeemed. Unless waived by the registered owner of Bonds to be redeemed, official notice of any such redemption shall be given by the Bond Registrar on behalf of the City by mailing the redemption notice by first-class mail not less than 30 days and not more than 60 days prior to the date fixed for redemption to each registered owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such registered owner to the Bond Registrar. -11- All official notices of redemption shall include the name of the Bonds and at least the information as follows: (1) the redemption date; (2) the redemption price; (3) if less than all of the Bonds of a single series and maturity are to be redeemed, the identification (and, in the case of partial redemption of any Bonds, the respective principal amounts) of the Bonds to be redeemed; (4) a statement that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption and that interest thereon shall cease to accrue from and after said date; and (5) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal corporate trust office of the Bond Registrar. Prior to any redemption date, the City shall deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price), such Bonds or portions of Bonds shall cease to bear interest. Neither the failure to mail such redemption notice, nor any defect in any notice so mailed, to any particular registered owner, shall affect the sufficiency of such notice with respect to other Bonds. Notice having been properly given, failure of a registered owner to receive such notice shall not be deemed to invalidate, limit or delay the effect of the notice or redemption action described in the notice. Such notice may be waived in writing by the registered owner -12- entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by registered owners shall be filed with the Bond Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Bond Registrar at the redemption price. The procedure for payment of interest due on or prior to the redemption date shall be as herein provided for payment of interest otherwise due. Upon surrender for any partial redemption of any Bond, there shall be prepared for the registered owner a new Bond or Bonds of like tenor, of authorized denominations, of the same maturity and bearing the same rate of interest in the amount of the unpaid principal. If any Bond or portion of Bond called for redemption shall not be so paid upon surrender thereof for redemption, the principal and premium (if any) shall, until paid or duly provided for, bear interest from the redemption date at the rate borne by the Bond or portion of Bond so called for redemption. All Bonds which have been redeemed shall be cancelled and destroyed by the Bond Registrar and shall not be reissued. Section 6. Execution;Authentication. The Bonds shall be executed on behalf of the City with the manual or facsimile signature of the Mayor and attested with the manual or facsimile signature of the City Clerk or duly authorized City Clerk, as they may determine, and shall have impressed or imprinted thereon the corporate seal or facsimile thereof of the City. In case any officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. All Bonds shall have thereon a certificate of authentication substantially in the form hereinafter set forth duly executed by the Bond Registrar as authenticating agent of the City and showing the date of authentication. No Bond shall be valid or obligatory for any purpose or be -13- entitled to any security or benefit under this Ordinance unless and until such certificate of authentication shall have been duly executed by the Bond Registrar by manual signature, and such certificate of authentication upon any such Bond shall be conclusive evidence that such Bond has been authenticated and delivered under this Ordinance. The certificate of authentication on any Bond shall be deemed to have been executed by it if signed by an authorized officer of the Bond Registrar, but it shall not be necessary that the same officer sign the certificate of authentication on all of the Bonds issued hereunder. Section 7. Registration of Bonds; Persons Treated as Owners; Global Book-Entry System. (a) General. The City shall cause books (the "Bond Register") for the registration and for the transfer of the Bonds as provided in this Ordinance to be kept at the principal corporate trust office of the Bond Registrar, which is hereby constituted and appointed the registrar of the City. The City is authorized to prepare, and the Bond Registrar shall keep custody of, multiple Bond blanks executed by the City for use in the transfer and exchange of Bonds. Upon surrender for transfer of any Bond at the principal corporate trust office of the Bond Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Bond Registrar and duly executed by, the registered owner or his attorney duly authorized in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the transferee or transferees a new fully registered Bond or Bonds of the same maturity of authorized denominations, for a like aggregate principal amount. Any fully registered Bond or Bonds may be exchanged at said principal corporate trust office of the Bond Registrar for a like aggregate principal amount of Bond or Bonds of the same maturity of other authorized denominations. The execution by the City of any fully registered Bond shall constitute full and due authorization of such Bond and the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond, provided, however, the principal amount of outstanding Bonds of each maturity authenticated by the Bond Registrar -14- shall not exceed the authorized principal amount of Bonds for such maturity less previous retirements. The Bond Registrar shall not be required to transfer or exchange any Bond during the period beginning at the close of business on the 15th day of the month of any interest payment date on such Bond and ending at the opening of business on such interest payment date nor to transfer or exchange any Bond after notice calling such Bond for redemption has been mailed, nor during a period of fifteen days next preceding mailing of a notice of redemption of any Bonds. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any Bond shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. No service charge shall be made for any transfer or exchange of Bonds, but the City or the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond surrendered for redemption. (b) Global Book-Entry System. The Bonds shall be initially issued in the form of a separate single fully registered Bond for each of the maturities of the Bonds as provided in Section 4 hereof, and the ownership of each such Bond shall be registered in the Bond Register in the name of Cede & Co., or any successor thereto ("Cede"), as nominee of The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). All of the outstanding Bonds shall be registered in the Bond Register in the name of Cede, as nominee of DTC, except as hereinafter provided. The Mayor, the City Treasurer and City Clerk are hereby -15- authorized to execute and deliver on behalf of the City such letters to or agreements with DTC and the Bond Registrar as shall be necessary to effectuate such book-entry system (any such letter or agreement being referred to herein as the `Representation Letter"). With respect to the Bonds registered in the Bond Register in the name of Cede, as nominee of DTC, the City and the Bond Registrar shall have no responsibility or obligation to any broker-dealer, bank or other financial institution for which DTC holds Bonds from time to time as securities depository (each such broker-dealer, bank or other financial institution being referred to herein as a "DTC Participant") or to any person on behalf of whom such a DTC Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the City and the Bond Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than a registered owner of a Bond as shown in the Bond Register, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any DTC Participant or any other person, other than a registered owner of a Bond as shown in the Bond Register, of any amount with respect to principal of or interest on the Bonds. The City and the Bond Registrar may treat and consider the person in whose name each Bond is registered in the Bond Register as the holder and absolute owner of such Bond for the purpose of payment of principal and interest with respect to such Bond, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Bond Registrar shall pay all principal of and interest on the Bonds only to or upon the order of the respective registered owners of the Bonds, as shown in the Bond Register, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to payment of principal of and interest on the Bonds to the extent of the sum or sums so -16- paid. No person other than a registered owner of a Bond as shown in the Bond Register, shall receive a Bond certificate evidencing the obligation of the City to make payments of principal and interest with respect to any Bond. Upon delivery by DTC to the Bond Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede, the name "Cede" in this ordinance shall refer to such new nominee of DTC. In the event that (i) the City determines that DTC is incapable of discharging its responsibilities described herein and in the Representation Letter, (ii) the agreement among the City, the Bond Registrar and DTC evidenced by the Representation Letter shall be terminated for any reason or (iii) the City determines that it is in the best interests of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the City shall notify DTC and DTC Participants of the availability through DTC of Bond certificates and the Bonds shall no longer be restricted to being registered in the Bond Register in the name of Cede, as nominee of DTC. At the time, the City may determine that the Bonds shall be registered in the name of and deposited with such other depository operating a global book-entry system, as may be acceptable to the City, or such depository's agent or designee, and if the City does not select such alternate global book-entry system, then the Bonds may be registered in whatever name or names registered owners of Bonds transferring or exchanging Bonds shall designate,in accordance with the provisions of Section 7(a) hereof. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bond is registered in the name of Cede, as nominee of DTC, all payments with respect to principal of and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively,in the manner provided in the Representation Letter. Section 8. Form of Bonds. The Bonds shall be in substantially the form hereinafter set forth;provided, however, that if the text of the Bonds is to be printed in its entirety on the front side of the Bonds, then the second paragraph on the front side and the legend "See Reverse Side -17- for Additional Provisions" shall be omitted and the text of paragraphs set forth for the reverse side shall be inserted immediately after the first paragraph. -Is- [Form of Bond-Front Side] REGISTERED REGISTERED No. $ UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF KENDALL UNITED CITY OF YORKVILLE GENERAL OBLIGATION REFUNDING BOND (ALTERNATE REVENUE SOURCE) SERIES 2006B See Reverse Side for Additional Provisions Interest Maturity Dated Rate: Date: December 30, _ Date: December_, 2006 CUSIP: Registered Owner: CEDE& CO. Principal Amount: DoLLARs KNOW ALL PERSONS BY THESE PRESENTS that the United City of Yorkville, Kendall County, Illinois, a municipality and political subdivision of the State of Illinois (the "City"), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity Date identified above, the Principal Amount identified above and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) on such Principal Amount from the Dated Date of this Bond identified above or from the most recent interest payment date to which interest has been paid or duly provided for at the Interest Rate per annum identified above, such interest to be payable on June 30, 2007, and semi-annually thereafter on June 30 and December 30 of each year until the Principal Amount is paid or duly provided for, except as the provisions hereinafter set forth with respect to redemption prior to maturity may be and become applicable hereto. The -19- Principal Amount of and redemption premium,if any, on this Bond are payable in lawful money of the United States of America upon presentation at the principal corporate trust office of The Bank of New York Trust Company, N.A., Chicago, Illinois, as paying agent and bond registrar (the "Bond Registrar"). Payment of interest shall be made to the Registered Owner hereof as appearing on the Bond Register of the City maintained by the Bond Registrar at the close of business on the 15th day of the month of any interest payment date and shall be paid by check or draft of the Bond Registrar, payable upon presentation in lawful money of the United States of America, mailed to the address of such Registered Owner as it appears on such registration books or at such other address furnished in writing by such Registered Owner to the Bond Registrar. Reference is hereby made to the further provisions of this Bond set forth on the reverse hereof, and such further provisions shall for all purposes have the same effect as if set forth at this place. It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the issuance of this Bond have been done and have happened and have been performed in regular and due form of law; that the indebtedness of the City, including the issue of Bonds of which this is one, does not exceed any limitation imposed by law; that provision has been made for the collection of the Pledged Revenues, the levy and collection of the Pledged Taxes, and the segregation of all Pledged Moneys to pay the interest hereon as it falls due and also to pay and discharge the principal hereof at maturity; and that the City hereby covenants and agrees that it will properly account for said Pledged Moneys and will comply with all the covenants of and maintain the funds and accounts as provided by the Ordinance. FOR THE PROMPT PAYMENT OF THIS BOND, BOTH PRINCIPAL AND INTEREST AT MATURITY, THE FULL FAITH,CREDIT AND RESOURCES OF THE CITY ARE HEREBY IRREVOCABLY PLEDGED. -20- This Bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Bond Registrar. -21- IN WITNESS WHEREOF the United City of Yorkville, Kendall County, Illinois, by its City Council, has caused this Bond to be executed with the manual or duly authorized facsimile signature of its Mayor and attested by the manual or duly authorized facsimile signature of its City Clerk and its corporate seal or a facsimile thereof to be impressed or reproduced hereon, all as appearing hereon and as of the Dated Date identified above. Mayor United City of Yorkville Kendall County, Illinois ATTEST: City Clerk United City of Yorkville Kendall County, Illinois [SEAL] Date of Authentication: CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described Bond Registrar and Paying Agent: in the within-mentioned Ordinance and is The Bank of New York Trust one of the General Obligation Refunding Company, N.A., Chicago, Illinois Bonds (Alternate Revenue Source), Series 2006B, of the United City of Yorkville, Kendall County,Illinois. THE BANK OF NEW YORK TRUST COMPANY,N.A. as Bond Registrar By Authorized Officer -22- [Form of Bond-Reverse Side] UNITED CITY OF YORKVILLE,KENDALL COUNTY,ILLINOIS GENERAL OBLIGATION REFUNDING BOND (ALTERNATE REVENUE SOURCE) SERIES 2006B This bond and the bonds of the series of which it forms apart ("Bond" and "Bonds" respectively) are of an authorized issue of ($ 1 Bonds of like dated date and tenor except as to maturity, rate of interest, and privilege of redemption and are issued pursuant to the Local Government Debt Reform Act of the State of Illinois, as amended (the "Act"). The Bonds are also issued pursuant to Division 139 of Article 11 of the Illinois Municipal Code, as supplemented and amended (the "Code"), for the purpose of paying the costs of refunding the City's outstanding Debt Certificates, Series 2003. The Bonds are issued pursuant to an authorizing ordinance passed by the City Council of the City (the "Corporate Authorities") on the 10th day of October, 2006, and by a bond ordinance passed by the Corporate Authorities on the 14th day of November, 2006 (the "Bond Ordinance"), to which reference is hereby expressly made for further definitions and terms and to all the provisions of which the Registered Owner by the acceptance of this Bond assents. Under the Code and the Bond Ordinance, the Revenues, as defined, from the operation of the System shall be deposited into the Waterworks and Sewerage Fund of the City which shall be used only and has been pledged for paying Operation and Maintenance Expenses, paying the principal of and interest on all bonds of the City that are payable by their terms from the revenues of the System, providing an adequate depreciation fund, and in making all payments required to maintain the accounts established under the Bond Ordinance. The City may issue future waterworks and sewerage revenue bonds, which bonds may have a prior lien on the -23- Revenues, or additional alternate bonds on a parity with the Bonds, in each case pursuant to the terms of the Bond Ordinance. The Bonds are payable from (a) (i) moneys to the credit of the Alternate Bond and Interest Subaccount within the Surplus Account of the Waterworks and Sewerage Fund (the "Pledged Revenues"), said Surplus Account consisting of the funds remaining in the Waterworks and Sewerage Fund after the required monthly deposits and credits have been made under the Bond Ordinance or future revenue bond ordinances to the various accounts of the Waterworks and Sewerage Fund, (ii) all collections distributed to the City pursuant to the State Revenue Sharing Act from those taxes imposed by the State of Illinois pursuant to subsections (a) and (c) of Section 201 of the Illinois Income Tax Act, as supplemented and amended from time to time, or substitute taxes therefor as provided by the State of Illinois in the future, and (iii) such other funds of the City as may be necessary and on hand from time to time and lawfully available for such purpose and (b) ad valorem taxes levied against all of the taxable property in the City without limitation as to rate or amount (the "Pledged Taxes") (the Pledged Revenues and the Pledged Taxes being collectively called the "Pledged Moneys"), all in accordance with the provisions of the Act and the Municipal Code. The Bonds are issued on a parity with the City's currently outstanding General Obligation Bonds (Alternate Revenue Source), Series 2004B, and General Obligation Bonds (Alternate Revenue Series), Series 2005C. Under the Act and the Bond Ordinance, the Pledged Revenues shall be deposited into and segregated in the Alternate Bond and Interest Subaccount of the Surplus Account, and the Pledged Taxes shall be deposited into and segregated in the 2006B Alternate Bond Fund,each as created or continued by the Bond Ordinance. Moneys on deposit in said Subaccount and said Fund shall be used first and are pledged for paying the principal of and interest on the Bonds and then for any further purposes as provided by the terms of the Bond Ordinance. -24- This Bond does not and will not constitute an indebtedness of the City within the meaning of any constitutional or statutory provision or limitation, unless the Pledged Taxes shall be extended pursuant to the general obligation, full faith and credit promise supporting the Bonds, in which case the amount of the Bonds then Outstanding shall be included in the computation of indebtedness of the City for purposes of all statutory provisions or limitations until such time as an audit of the City shall show that the Bonds shall have been paid from the Pledged Revenues for a complete Fiscal Year, This Bond is subject to provisions relating to registration, transfer, and exchange; redemption and notice and procedure for redemption; and such other terms and provisions relating to security and payment as are set forth in the Bond Ordinance; to which reference is hereby expressly made; and to all the terms of which the registered owner hereof is hereby notified and shall be subject. The City and the Bond Registrar may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof, premium, if any, hereon and interest due hereon and for all other purposes; and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. ASSIGNMENT FOR VALUE RECEIVED the undersigned sells, assigns and transfers unto (Name and Address of Assignee) the within Bond and does hereby irrevocably constitute and appoint as attorney to transfer the said Bond on the books kept for registration thereof with full power of substitution in the premises. -25- Dated: Signature Guaranteed: NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever. -26- Section 9. Sale of the Bonds. As soon as may be after this Ordinance becomes effec- tive, the Bonds shall be executed and delivered to the Treasurer and be by said officer delivered to LaSalle Financial Services, Inc., Chicago, Illinois, the purchaser thereof (the "Purchaser"), upon receipt of the purchase price therefor, the same being $ . The contract for the sale of the Bonds (the "Purchase Contract") heretofore entered into is in all respects ratified, approved and confirmed, it being hereby found and determined that the Bonds have been sold at such price and bear interest at such rates that neither the true interest cost (yield) nor the net interest rate received upon such sale exceed the maximum rate otherwise authorized by Illinois law and that the Purchase Contract is in the best interests of the City and that no person holding any office of the City, either by election or appointment, is in any manner financially interested directly in his own name or indirectly in the name of any other person, association, trust or corporation, in the Purchase Contract. The use by the Purchaser of any Preliminary Official Statement and any final Official Statement relating to the Bonds (the "Official Statement") is hereby ratified, approved and authorized; the execution and delivery of the Official Statement is hereby authorized; and the officers of the Corporate Authorities are hereby authorized to take any action as may be required on the part of the District to consummate the transactions contemplated by the Purchase Contract, this Ordinance, said Preliminary Official Statement, the Official Statement and the Bonds. Section 10. Treatment of Bonds As Debt. The Bonds shall be payable from the Pledged Moneys and do not and shall not constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation, unless the Pledged Taxes shall be extended pursuant to the general obligation, full faith and credit promise supporting the Bonds, as set forth in Section 14 hereof, in which case the amount of the Bonds then Outstanding shall be included in the computation of indebtedness of the City for purposes of all statutory provisions or limitations -27- I until such time as an audit of the City shall show that the Bonds have been paid from the Pledged Revenues for a complete Fiscal Year in accordance with the Act. Section 11. Continuation of Waterworks and Sewerage Fund and Accounts; Flow of Funds. Upon the issuance of any of the Bonds, the System shall continue to be operated on a Fiscal Year basis. All of the Revenues shall be set aside as collected and be deposited into that certain separate fund and in an account in a bank designated by the Corporate Authorities, which fund has heretofore been created and designated as the "Waterworks and Sewerage Fund" of the City and is expressly continued hereunder, and which fund shall constitute a trust fund for the sole purpose of carrying out the covenants, terms, and conditions of the Outstanding Alternate Bond Ordinances, this Ordinance and any Future Bond Ordinances. There shall be and there are hereby continued separate accounts in the Waterworks and Sewerage Fund to be known as the "Operation and Maintenance Account," such other accounts as may be established under any Future Bond Ordinances, the "Depreciation Account," and the "Surplus Account," to which there shall be credited on or before the first day of each month by the financial officer of the City, without any further official action or direction, in the order in which said accounts are hereinafter mentioned, all moneys held in the Fund,in accordance with the following provisions: (a) Operation and Maintenance Account: There shall be credited to or retained in the Operation and Maintenance Account an amount sufficient, when added to the amount then on deposit in said Account, to establish or maintain a balance to an amount not less than the amount considered necessary to pay Operation and Maintenance Costs for the then current month, (b) Accounts Created Pursuant to Future Bond Ordinances: Future Bond Ordinances may create additional accounts in the Fund for the payment and security of waterworks and sewerage revenue bonds that hereafter may be issued by the City. Amounts in the Fund shall be credited to and transferred from said accounts in accordance with the terms of the Future Bond Ordinances. _28_ (c) Depreciation Account: Beginning the month after the delivery of the Bonds, there shall be credited to the Depreciation Account and held, in cash and investments, such sum as the Corporate Authorities may deem necessary in order to provide an adequate depreciation fund for the System. In Future Bond Ordinances, the City may covenant to make specific monthly deposits to said Depreciation Account and to accumulate funds therein. Amounts to the credit of said Depreciation Account shall be used for (i) the payment of the cost of extraordinary maintenance, necessary repairs and replacements, or contingencies, the payment for which no other funds are available, in order that the System may at all times be able to render efficient service, (ii) for the purpose of acquiring or constructing improvements and extensions to the System, and (iii) the payment of principal of or interest and applicable premium on any Outstanding Bonds at any time when there are no other funds available for that purpose in order to prevent a default. Future Bond Ordinances may provide for additional deposits to said Depreciation Account and additional uses and transfers of the funds on deposit in said Depreciation Account. (d) Surplus Account: All moneys remaining in the Fund, after crediting the required amounts to the respective accounts hereinabove provided for, and after making up any deficiency in said accounts, shall be credited to the Surplus Account. Funds in the Surplus Account shall first be used to make up any subsequent deficiencies in any of said accounts and then shall be deposited to a separate and segregated account hereby created and designated the "Alternate Bond and Interest Subaccount of the Surplus Account' (the "Alternate Bond and Interest Subaccount"), as follows: A. Upon the delivery of any of the Bonds, there shall be paid into the Alternate Bond and Interest Subaccount in each month after the required payments have been made into the Accounts above described, a fractional amount of the interest becoming due on the next succeeding interest payment date on all Outstanding Bonds and Outstanding Alternate Bonds and a fractional amount of the principal becoming due on the next succeeding principal maturity date of all Outstanding Bonds and Outstanding Alternate Bonds and until there shall have been accumulated in the Alternate Bond and Interest Subaccount on or before the month preceding such maturity date of interest or principal, an amount sufficient to pay such principal or interest, or both, of all Outstanding Bonds and Outstanding Alternate Bonds. B. In computing the fractional amount to be set aside each month in said Alternate Bond and Interest Subaccount, the fraction shall be so computed that sufficient funds will be set aside in said Subaccount and will be available for the prompt payment of such principal of and interest on all Outstanding Bonds and Outstanding Alternate Bonds as the same will become due and shall be not less -29- than one-sixth of the interest becoming due on the next succeeding interest payment date and not less than one-twelve of the principal becoming due on the next succeeding principal payment date on all Outstanding Bonds and Outstanding Alternate Bonds until there is sufficient money in said Subaccount to pay such principal or interest or both. C. Credits to the Alternate Bond and Interest Subaccount may be suspended in any Fiscal Year at such time as there shall be a sufficient sum, held in cash and investments, in said Subaccount to meet principal and interest requirements in said Subaccount for the balance of such Fiscal Year, but such credits shall be resumed at the beginning of the next Fiscal Year. D. All moneys in said Subaccount shall be used only for the purpose of paying interest on and principal of Outstanding Bonds, Outstanding Alternate Bonds and Additional Bonds. E. The portion of the Pledged Revenues not constituting Revenues, namely, (i) all collections distributed to the City pursuant to the State Revenue Sharing Act from those taxes imposed by the State of Illinois pursuant to subsections (a) and (c) of Section 201 of the Illinois Income Tax Act, as supplemented and amended from time to time, or substitute taxes therefor as provided by the State of Illinois in the future, and (ii) such other funds of the City as may be necessary and on hand from time to time and lawfully available for such purpose, shall also be deposited in the Alternate Bond and Interest Subaccount from time to time, as necessary to provide for payment of the principal of and interest on the Bonds. F. Any funds remaining in the Surplus Account after the making the aforesaid deposits to the credit of the Alternate Bond and Interest Subaccount, at the discretion of the Corporate Authorities shall be used for the purpose of paying debt service in connection with those certain loan agreements with the State of Illinois, acting through the Illinois Environmental Protection Agency, and then for any purpose enumerated in any Future Bond Ordinance or for any other lawful System purpose. Moneys to the credit of the Waterworks and Sewerage Fund may be invested pursuant to any authorization granted to municipal corporations by Illinois statute or court decision. Section 12. 2006B Alternate Bond Fund. There is hereby created a special fund of the City, which fund shall be held separate and apart from all other funds and accounts of the City and shall be known as the "2006B Alternate Bond Fund" (the "Bond Fund"). The purpose of the Bond Fund is to provide a fund to receive and disburse the Pledged Taxes for any (or all) of the Bonds. All payments made with respect to the Bonds from the Pledged Revenues shall be -30- made directly from the Alternate Bond and Interest Subaccount of the Waterworks and Sewerage Fund. The Bond Fund constitutes a trust fund established for the purpose of carrying out the covenants,terms and conditions imposed upon the City by this Ordinance. Any Pledged Taxes received by the City shall promptly be deposited into the Bond Fund. Pledged Taxes on deposit to the credit of the Bond Fund shall be fully spent to pay the principal of and interest and premium, if any, on the Bonds prior to use of any moneys on deposit in the Alternate Bond and Interest Subaccount. Section 13. Use of Bond Proceeds. The proceeds derived from the sale of the Bonds shall be used as follows: A. Accrued interest, if any, received by the City upon the sale of the Bonds shall be remitted by the City Treasurer for deposit into the Alternate Bond and Interest Subaccount and be used to pay first interest coming due on the Bonds or be deposited into the Escrow Account as set forth in the Escrow Agreement. B. The City shall then allocate from the Bond proceeds the sum necessary for expenses incurred in the issuance of the Bonds which shall be deposited into an "Expense Fund" to be maintained by the City Treasurer and disbursed for such issuance expenses from time to time in accordance with usual City procedures for the disbursement of funds, which disbursements are hereby expressly authorized. Moneys not disbursed from the Expense Fund within 6 months shall be transferred by the City for deposit in the Alternate Bond and Interest Subaccount, and any deficiencies in the Expense Fund shall be paid by disbursement from the Alternate Bond and Interest Subaccount. C. The sum of principal proceeds of the Bonds as is necessary, together with such money in the debt service funds for the Refunded Obligations as may be advisable for the purpose, shall be used to provide for the Refunding, and the payment of such expenses as may be designated, pursuant to the provisions of the Escrow Agreement with -31- the Escrow Agent, all in accordance with the provisions of an Escrow Agreement, substantially in the form attached hereto as Exhibit A to this Ordinance, made a part hereof by this reference, and hereby approved; the officers appearing signatory to such Escrow Agreement are hereby authorized and directed to execute same, their execution to constitute conclusive proof of action in accordance with this Ordinance, and approval of all completions or revisions necessary or appropriate to effect the Refunding. The City expressly authorizes the use of the Government Obligations as set forth in the Escrow Account as set forth in the Escrow Agreement. Section 14. Pledged Taxes; Tax Levy. For the purpose of providing additional funds to pay the principal of and interest on the Bonds, and as provided in Section 15 of the Act, there is hereby levied upon all of the taxable property within the City, in the years for which any of the Bonds are Outstanding, a direct annual tax in amounts sufficient for that purpose, and there be and there hereby is levied upon all of the taxable property in the City the following direct annual taxes (the "Pledged Taxes"): -32- F FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE SUM OF: 2006 $ for principal and interest up to and including December 30, 2007 2007 $ for principal and interest 2008 $ for principal and interest 2009 $ for principal and interest 2010 $ for principal and interest 2011 $ for principal and interest 2012 $ for principal and interest 2013 $ for principal and interest 2014 $ for principal and interest 2015 $ for principal and interest 2016 $ for principal and interest 2017 $ for principal and interest 2018 $ for principal and interest 2019 $ for principal and interest 2020 $ for principal and interest 2021 $ for principal and interest Interest or principal coming due at any time when there are insufficient funds on hand from the Pledged Moneys to pay the same shall be paid promptly when due from current funds on hand in advance of the collection of the Pledged Moneys herein pledged and levied; and when the Pledged Moneys shall have been collected, reimbursement shall be made to said funds in the amount so advanced. The City covenants and agrees with the purchasers and the owners of the Bonds that so long as any of the Bonds remain outstanding, the City will take no action or fail to take any action which in any way would adversely affect the ability of the City to collect the Pledged Revenues or to levy and collect the Pledged Taxes. The City and its officers will comply with all present and future applicable laws in order to assure that the Pledged Revenues will be available and that the Pledged Taxes will be levied, extended and collected as provided herein and deposited in the Bond Fund. Section 15. Filing with County Clerk. After this Ordinance becomes effective, a copy hereof, certified by the City Clerk or duly authorized City Clerk, shall be filed with the County -33- Clerk. The County Clerk shall in and for each of the years required ascertain the rate percent required to produce the aggregate Pledged Taxes hereinbefore provided to be levied in each of said years; and the County Clerk shall extend the same for collection on the tax books in connection with other taxes levied in said years in and by the City for general corporate purposes of the City; and the County Clerk, or other appropriate officer or designee, shall remit the Pledged Taxes for deposit to the credit of the Bond Fund, and in said years the Pledged Taxes shall be levied and collected by and for and on behalf of the City in like manner as taxes for general municipal purposes of the City for said years are levied and collected, and in addition to and in excess of all other taxes. The Pledged Taxes are hereby irrevocably pledged to and shall be used only for the purpose of paying principal of and interest on the Bonds. Section 16. Abatement of Pledged Taxes. As provided in the Act, whenever the Pledged Revenues shall have been determined by the City Treasurer to provide in any calendar year an amount not less that 1.25 times debt service of all Bonds in the next succeeding bond year (June 30 and December 30), and whenever monies have been deposited to the credit of the Alternate Bond and Interest Subaccount in an amount sufficient to pay debt service on all outstanding Bonds in the next succeeding bond year (other than for the debt service on the Bonds due on June 30 and December 30, 2007). Section 17. General Covenants. The City covenants and agrees with the registered owners of the Bonds that, so long as any Bonds remain Outstanding: A. The City hereby pledges the Pledged Revenues to the payment of the Bonds, and the Corporate Authorities covenants and agrees to provide for, collect and apply the Pledged Revenues to the payment of the Outstanding Alternate Bonds and the Bonds, and the provision of not less than an additional 0.25 times debt service on the Outstanding Alternate Bonds and the Bonds, all in accordance with Section 15 of the Act. -34- B. The City will punctually pay or cause to be paid from the Alternate Bond and Interest Subaccount and from the Bond Fund the principal of, interest on and premium, if any, to become due in respect to the Bonds in strict conformity with the terms of the Bonds and this Ordinance, and it will faithfully observe and perform all of the conditions,covenants and requirements thereof and hereof. C. The City will pay and discharge, or cause to be paid and discharged, from the Alternate Bond and Interest Subaccount and the Bond Fund any and all lawful claims which, if unpaid, might become a lien or charge upon the Pledged Revenues or Pledged Taxes, or any part thereof, or upon any funds in the hands of the Bond Registrar, or which might impair the security of the Bonds. Nothing herein contained shall require the City to make any such payment so long as the City in good faith shall contest the validity of said claims. D. The City will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the City, the Pledged Revenues, related Pledged Taxes, the Alternate Bond and Interest Subaccount and the Bond Fund. Such books of record and accounts shall at all times during business hours be subject to the inspection of the registered owners of not less than ten percent(10%) of the principal amount of the Outstanding Bonds or their representatives authorized in writing. E. The City will preserve and protect the security of the Bonds and the rights of the registered owners of the Bonds, and will warrant and defend their rights against all claims and demands of all persons. From and after the sale and delivery of any of the Bonds by the City, the Bonds shall be incontestable by the City. F. The City will adopt, make, execute and deliver any and all such further ordinances, resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention of, or to facilitate the performance of, the Outstanding -35- 1 Alternate Bond Ordinances and this Ordinance, and for the better assuring and confirming unto the registered owners of the Bonds of the rights and benefits provided in this Ordinance. G. As long as any Bonds are Outstanding, the City will continue to deposit monies to the Alternate Bond and Interest Subaccount and, if necessary, the Pledged Taxes to the Bond Fund. The City covenants and agrees with the purchasers of the Bonds and with the registered owners thereof that so long as any Bonds remain Outstanding, the City will take no action or fail to take any action which in any way would adversely affect the ability of the City to levy the Pledged Taxes and to collect and to segregate the Pledged Moneys. The City and its officers will comply with all present and future applicable laws in order to assure that the Pledged Taxes can be levied and extended and that the Pledged Revenues and the Pledged Taxes may be collected and deposited to the Alternate Bond and Interest Subaccount and the Bond Fund, respectively, as provided herein. H. Once issued, the Bonds shall be and forever remain until paid or defeased the general obligation of the City, for the payment of which its full faith and credit are pledged, and shall be payable, in addition to the Pledged Revenues, from the levy of the Pledged Taxes as provided in the Act. I. The City will maintain the System in good repair and working order, will operate the same efficiently and faithfully, and will punctually perform all duties with respect thereto required by the Constitution and laws of the State of Illinois and the United States of America. J. The City will establish and maintain at all times reasonable fees, charges, and rates for the use and service of the System and will provide for the collection thereof and the segregation and application of the Revenues in the manner provided by this -36- Ordinance, sufficient at all times to pay Operation and Maintenance Costs, to provide an adequate depreciation fund, to pay the principal of and interest on all revenue bonds of the City which by their terms are payable solely from the Revenues, and to provide for the creation and maintenance and funding of the respective accounts as provided in Section 11 of this Ordinance; it is hereby expressly provided that the pledge and establishment of rates or charges for use of the System shall constitute a continuing obligation of the City with respect to such establishment and a continuing appropriation of the amounts received. K. There shall be charged against all users of the System, including the City, such rates and amounts for water and sewerage services as shall be adequate to meet the requirements of this section. Charges for services rendered the City shall be made against the City, and payment for the same shall be made monthly from the corporate funds into the Waterworks and Sewerage Fund as revenues derived from the operation of the System. L. The City will make and keep proper books and accounts (separate and apart from all other records and accounts of said City), in which complete entries shall be made of all transactions relating to the System, and hereby covenants that within 180 days following the close of each Fiscal Year, it will cause the books and accounts of the System to be audited by independent certified public accountants. Said audit will be available for inspection by the holders of any of the Bonds. Each such audit, in addition to whatever matters may be thought proper by the accountants to be included therein, shall, without limiting the generality of the foregoing, include the following: 1. A statement in detail of income and expenditures of the System for such Fiscal Year. -37- 1 2. A balance sheet as of the end of such Fiscal Year, including a statement of the amount held in each of the accounts of the Waterworks and Sewerage Fund. 3. A list of all insurance policies in force at the end of the Fiscal Year, setting out as to each policy the amount of the policy, the risks covered, the name of the insurer, and the expiration date of the policy, and any amounts held as self- insurance reserves. 4. The number of sewer customers served by the System at the end of the year and the quantity of sewage treated, the number of metered water customers and the number of unmetered water customers at the end of the year, the quantity of water pumped and the quantity of water billed. 5. Changes in the cost of purchased water or sewer services during such Fiscal Year. 6. A summary of rates in effect at the end of such Fiscal Year for services of the System and any changes in such rates effective during such Fiscal Year. 7. The amount and details of all future revenue bonds, Outstanding Bonds, Outstanding Prior Alternate Bonds, and Outstanding Additional Bonds. In connection with said audit, the accountant shall deliver a letter or statement regarding the manner in which the City has carried out the requirements of this Ordinance, and the accountant's recommendations for any changes or improvements in the financial operation of the System. All expenses of the audit required by this section shall be regarded and paid as Operation and Maintenance Costs. Section 18. Future Revenue Bonds, Additional Bonds and Subordinate Bonds. The City reserves the right to issue without limit bonds payable solely and only from the Revenues, which bonds may have a lien on the Revenues prior to the lien on the Pledged Revenues that secures the Outstanding Bonds and the Outstanding Alternate Bonds, provided that upon the issuance of such bonds, the City shall be able to demonstrate in the same manner as provided by the Act, as the Act is written at this time, that at such time all Outstanding Bonds and Outstanding Alternate Bonds could then be issued as if not then having previously been issued; that is, that the -38- requirements of the Act for the issuance of alternate bonds payable from the Revenues shall have been met on such date for all Outstanding Bonds and Outstanding alternate Bonds. The City also reserves the right to issue Additional Bonds from time to time payable from the Pledged Revenues, and any such Additional Bonds shall share ratably and equally in the Pledged Revenues with the Bonds;provided, however, that no Additional Bonds shall be issued except in accordance with the provisions of the Act as the Act is written at this time. The City also reserves the right to issue revenue bonds from time to time payable from the Revenues that are subordinate to the Outstanding Alternate Bonds and Bonds or Additional Bonds and are payable from the money remaining in the Surplus Account continued hereunder after making required deposits into the Alternate Bond and Interest Subaccount. Section 19. Defeasance. Bonds which are no longer Outstanding Bonds as defined in this Ordinance shall cease to have any lien on or right to receive or be paid from Pledged Revenues or the Pledged Taxes, and shall no longer have the benefits of any covenant for the registered owners of Outstanding Bonds as set forth herein as such relates to lien and security for the Bonds in the Pledged Revenues or the Pledged Taxes. Section 20. This Ordinance a Contract. The provisions of this Ordinance shall constitute a contract between the City and the registered owners of the Bonds, and no changes, additions or alterations of any kind shall be made hereto, except as herein provided. Section 21. Call of the Refunded Obligations. In accordance with the redemption provisions of the ordinance authorizing the issuance of the Refunded Obligations,the City by the Corporate Authorities does hereby make provision for the payment of and does hereby call (subject only to the delivery of the Bonds) the Refunded Obligations for redemption and payment prior to maturity on their earliest possible call date, at the redemption price equal to 100% of the principal amount of the Refunded Obligations being redeemed, plus accrued interest to the date of redemption. -39- I Section 22. Bond Registrar Covenants. If requested by the Bond Registrar, the Mayor and City Clerk are authorized to execute the Bond Registrar's standard form of agreement between the City and the Bond Registrar with respect to the obligations and duties of the Bond Registrar hereunder. Subject to modification by the express terms of any such agreement, such duties shall include the following: (a) to act as bond registrar, authenticating agent,paying agent and transfer agent as provided herein; (b) to maintain a list of Bondholders as set forth herein and to furnish such list to the City upon request, but otherwise to keep such list confidential to the extent permitted by law; (c) to give notice of redemption of Bonds as provided herein; (d) to cancel and/or destroy Bonds which have been paid at maturity or upon earlier redemption or submitted for exchange or transfer; (e) to furnish the City at least annually a certificate with respect to Bonds cancelled and/or destroyed; and (f) to furnish the City at least annually an audit confirmation of Bonds paid, Outstanding Bonds and payments made with respect to interest on the Bonds. The City Clerk is hereby directed to file a certified copy of this Ordinance with the Bond Registrar. Section 23. Non-Arbitrage and Tax-Exemption. The City hereby covenants that it will not take any action, omit to take any action or permit the taking or omission of any action within its control (including, without limitation, making or permitting any use of the proceeds of the Bonds) if taking, permitting or omitting to take such action would cause any of the Bonds to be an arbitrage bond or a private activity bond within the meaning of the IRC, or would otherwise cause the interest on the Bonds to be included in the gross income of the recipients thereof for federal income tax purposes. The City acknowledges that, in the event of an examination by the Internal Revenue Service of the exemption from Federal income taxation for interest paid on the -40- Bonds, under present rules, the City is treated as the "taxpayer" in such examination and agrees that it will respond in a commercially reasonable manner to any inquiries from the Internal Revenue Service in connection with such an examination. The City also agrees and covenants with the purchasers and holders of the Bonds from time to time outstanding that, to the extent possible under Illinois law, it will comply with whatever federal tax law is adopted in the future which applies to the Bonds and affects the tax- exempt status of the Bonds. The Corporate Authorities hereby authorize the officials of the City responsible for issuing the Bonds, the same being the Mayor, City Clerk and City Treasurer to make such further covenants and certifications as may be necessary to assure that the use thereof will not cause the Bonds to be arbitrage bonds and to assure that the interest on the Bonds will be exempt from federal income taxation. In connection therewith, the City and the Corporate Authorities further agree: (a) through their officers,to make such further specific covenants,representations as shall be truthful, and assurances as may be necessary or advisable; (b) to consult with counsel approving the Bonds and to comply with such advice as may be given; (c) to pay to the United States, as necessary, such sums of money,representing required rebates of excess arbitrage profits relating to the Bonds; (d) to file such forms, statements, and supporting documents as may be required and in a timely manner; and (e) if deemed necessary or advisable by their officers, to employ and pay fiscal agents,financial advisors, attorneys, and other persons to assist the City in such compliance. Section 24. Registered Form. The City recognizes that IRC Section 149 requires the Bonds to be issued and to remain in fully registered form in order for the interest thereon to be and remain Tax-Exempt. In this connection, the City agrees that it will not take any action to permit the Bonds to be issued in, or converted into, bearer or coupon form. -41- Section 25. Municipal Bond Insurance. In the event the payment of principal of and interest on the Bonds is insured pursuant to a municipal bond insurance policy (a "Municipal Bond Insurance Policy") issued by a bond insurer (a "Bond Insurer"), and as long as such Municipal Bond Insurance Policy shall be in full force and effect, the City and the Bond Registrar agree to comply with such usual and reasonable provisions regarding presentment and payment of the Bonds, subrogation of the rights of the Bondholders to the Bond Insurer when holding Bonds, amendment hereof, or other terms, as approved by the Mayor on advice of counsel, his approval to constitute full and complete acceptance by the City of such terms and provisions under authority of this section. Section 26. Continuing Disclosure Undertaking. The Mayor or City Treasurer is hereby authorized, empowered and directed to execute and deliver the Continuing Disclosure Undertaking (the "Continuing Disclosure Undertaking") in substantially the same form as now before the Corporate Authorities, or with such changes therein as the individual executing the Continuing Disclosure Undertaking on behalf of the City shall approve, the official's execution thereof to constitute conclusive evidence of the approval of such changes. When the Continuing Disclosure Undertaking is executed and delivered on behalf of the City as herein provided, the Continuing Disclosure Undertaking will be binding on the City and the officers, employees and agents of the City, and the officers, employees and agents of the City are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Continuing Disclosure Undertaking as.executed. Notwithstanding any other provision of this Ordinance, the sole remedies for failure to comply with the Continuing Disclosure Undertaking shall be the ability of the beneficial owner of any Bond to seek mandamus or specific performance by court order, to cause the City to comply with its obligations under the Continuing Disclosure Undertaking. -42- Section 27. Severability. If any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance. -43- Section 28. Repealer. All ordinances, resolutions or orders, or parts thereof, in conflict with the provisions of this Ordinance are to the extent of such conflict hereby repealed. Section 29. Effective Date. This Ordinance shall be effective immediately. ADOPTED by the City Council on the 14th day of November, 2006, pursuant to a roll call vote as follows: PAUL JAMES MARTY MUNNS JASON LESLIE JIM BOCK VALERIE BURD ROSE SPEARS DEAN WOLFER JOSEPH BESCO APPRovED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, the 14th day of November, 2006. MAYOR PASSED by the City Council of the United City of Yorkville, Kendall County, Illinois,the 14th day of November, 2006. Attest: CITY CLERK -44- EXHIBIT A ESCROW AGREEMENT -45- i Alderman moved and Alderman seconded the motion that said ordinance as presented and read by title by the City Clerk be adopted. After a full and complete discussion thereof, including a public recital of the nature of the matter being considered and such other information as would inform the public of the business being conducted, the Mayor directed that the roll be called for a vote upon the motion to adopt the ordinance as read. Upon the roll being called, the following Aldermen voted AYE: NAY: ABSENT: Whereupon the Mayor declared the motion carried and the ordinance adopted, and henceforth did approve and sign the same in open meeting and did direct the City Clerk to record the same in full in the records of the City Council of the City. Other business not pertinent to the adoption of said ordinance was duly transacted at said meeting. Upon motion duly made and seconded, the meeting was adjourned. City Clerk I STATE OF ILLINOIS ) ) SS COUNTY OF KENDALL ) CERTIFICATION OF ORDINANCE AND MINUTES I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the United City of Yorkville, Kendall County, Illinois (the "City"), and as such officer I am the keeper of the books,records, files, and journal of proceedings of the City and of the City Council (the "Corporate Authorities") thereof. I do further certify that the foregoing constitutes a full, true and complete transcript of the minutes of the legally convened meeting of the Corporate Authorities held on the 14th day of November, 2006, insofar as same relates to the adoption of an ordinance numbered 2006- and entitled: AN ORDINANCE authorizing and providing for the issue of $ ,000,000 General Obligation Refunding Bonds (Alternate Revenue Source), Series 2006B, of the United City of Yorkville, Kendall County, Illinois, for the purpose of refunding a portion of the City's outstanding Debt Certificates, Series 2003, prescribing the details of said bonds, and providing for the imposition of taxes to pay the same, and for the collection, segregation and application of the waterworks and sewerage system revenues to pay said Bonds. a true, correct and complete copy of which said ordinance as adopted at said meeting appears in the foregoing transcript of the minutes of said meeting. I do further certify that the deliberations of the Corporate Authorities on the adoption of said ordinance were taken openly; that the vote on the adoption of said ordinance was taken openly; that said meeting was held at a specified time and place convenient to the public; that notice of said meeting was duly given to all of the news media requesting such notice of said meeting was duly given to all of the news media requesting such notice; that an agenda for said meeting was posted at the location where said meeting was held and at the principal office of the Corporate Authorities at least 96 hours in advance of the holding of said meeting, that said agenda contained a separate specific item concerning the proposed adoption of said ordinance, a true, correct and complete copy of said agenda as so posted being attached to this certificate as Exhibit A, that said meeting was called and held in strict accordance with the provisions of the Open Meetings Act of the State of Illinois, as amended; and that the Corporate Authorities have complied with all of the applicable provisions of said Act and their procedural rules in the adoption of said ordinance. IN WITNESS WHEREOF, I have hereunto affixed my official signature and the seal of the City this 14th day of November,2006. City Clerk [SEAL] -2- STATE OF ILLINOIS ) SS COUNTY OF KENDALL ) FILING CERTIFICATE I, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk of The County of Kendall, Illinois (the "County"), and as such officer I do hereby certify that on the _ day of 2006 there was filed in my office a duly certified copy of an ordinance, numbered and entitled: AN ORDINANCE authorizing and providing for the issue of $ ,000,000 General Obligation Refunding Bonds (Alternate Revenue Source), Series 2006B, of the United City of Yorkville, Kendall County, Illinois, for the purpose of refunding a portion of the City's outstanding Debt Certificates, Series 2003, prescribing the details of said bonds, and providing for the imposition of taxes to pay the same, and for the collection, segregation and application of the waterworks and sewerage system revenues to pay said Bonds. passed by the City Council of the United City of Yorkville, Kendall County, Illinois, on the 14th day of November, 2006, and approved by the Mayor of said City, and that the same has been deposited in the official files and records of my office. IN WITNESS WHEREOF I have hereunto affixed my official signature and the seal of the County this_day of , 2006. County Clerk of The County of Kendall, Illinois [SEAL] SAMPLE FORM OF ANNUAL ABATEMENT ORDINANCE ORDINANCE NO. ORDINANCE abating the tax hereto levied for the year to pay the principal of and interest on $ General Obligation Refunding Bonds (Alternate Revenue Source), Series 2006, of the United City of Yorkville, Kendall County,Illinois. WHEREAS the City Council (the "Corporate Authorities") of the United City of Yorkville, Kendall County, Illinois (the "City"), by Ordinance Number 2006- , adopted on the 14th day of November, 2006 (the "Ordinance"), did provide for the issue of $ General Obligation Refunding Bonds (Alternate Revenue Source), Series 2006B (the "Bonds"), and the levy of a direct annual tax sufficient to pay the principal of and interest on the Bonds; and WHEREAS the City will have the Pledged Revenues (as defined in the Ordinance) in the appropriate account or fund pursuant to the Ordinance for the purpose of paying the principal of and interest on the Bonds up to and including ; and WHEREAS it is necessary and in the best interests of a the City that the tax heretofore levied for the year to pay the principal of and interest on the Bonds be abated; Now THEREFORE Be It Ordained by the City Council of the United City of Yorkville, Kendall County, Illinois, as follows: Section 1. Abatement of Tax. The tax heretofore levied for the year _ in the Ordinance is hereby abated in its entirety. Section 2. Filing of Ordinance. Forthwith upon the adoption of this ordinance, the City Clerk shall file a certified copy hereof with the County Clerk of The County of Kendall, Illinois, and it shall be the duty of said County Clerk to abate said tax levied for the year_in accordance with the provisions hereof. Section 3. Effective Date. This ordinance shall be in full force and effect forthwith upon its passage by the Corporate Authorities and signing and approval by the Mayor. Passed by the City Council on Approved _ Mayor AYES: NAYS: ABSENT: Recorded in the City Records on ATTEST: City Clerk -2- i STATE OF ILLINOIS ) SS COUNTY OF KENDALL ) FILING CERTIFICATE I, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk of The County of Kendall, Illinois, and as such official I do further certify that on the day of there was filed in my office a duly certified copy of Ordinance No. entitled: ORDINANCE abating the tax hereto levied for the year _ to pay the principal of and interest on $ General Obligation Refunding Bonds (Alternate Revenue Source), Series 2006B, of the United City of Yorkville,Kendall County,Illinois. (the "Ordinance") duly adopted by the City Council of the United City of Yorkville, Kendall County, Illinois (the "City"), on the day of _, and that the same has been deposited in the official files and records of my office. I do further certify that the taxes heretofore levied for the year for the payment of the City's $ General Obligation Refunding Bonds (Alternate Revenue Source), Series 2006B, as described in the Ordinance will be abated in their entirety as provided in the Ordinance. IN WITNESS WHEREOF I hereunto affix my official signature and the seal of said County this day of County Clerk [SEAL] EXTRACT of MINUTES of a regular public meeting of the City Council of the United City of Yorkville, Kendall County, Illinois, held at the City Hall, located at 800 Game Farm Road, in said City, at 7:00 p.m., on the 14th day of November, 2006. The Mayor called the meeting to order and directed the City Clerk to call the roll. Upon roll call, the following answered present at said location: Arthur F. Prochaska, Mayor, and Aldermen The following Aldermen were absent: Alderman presented, and the City Clerk read by title an ordinance as follows, a copy of which was provided to each Alderman prior to said meeting and to everyone in attendance at said meeting who requested a copy: 2137713.01.05.B.doc 2143501 -KK• 11/9/06