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City Council Packet 2003 06-24-03 J 1 0 United City of Yorkville County Seat of Kendall County EST. ,1 �1836 800 Game Farm Road ,< Cl) Yorkville,Illinois 60560 Q to 1 Q Phone:630 553-4350 AGENDA 1,f` „:27 . Fax:630-553-7575 CITY COUNCIL MEETING kLE jv BEECHER COMMUNITY BUILDING, AUSTIN ROOM 7:00 PM Revised: 6/23/03 Tuesday, June 24, 2003 Call to Order: 7:00 p.m. Pledge of Allegiance: Roll Call by Clerk: WARD I WARD II WARD III WARD IV Rich Sticka Valerie Burd Marty Munns Joe Besco Paul James Larry Kot Wanda Ohare Rose Ann Spears Establishment of Quorum: Introduction of Guests: Amendments to Agenda: Committee Meeting Dates: Public Works Committee Meeting: 6:30 p.m., Monday, July 28, 2003 City Hall Conference Room Economic Development Committee: 7:00 p.m., Thursday, July 17, 2003 City Hall Conference Room Administration Committee Meeting: 6:30 p.m., Thursday, July 10, 2003 City Hall Conference Room Public Safety Committee Meeting: 6:30 p.m., Thursday, June 26, 2003 City Hall Conference Room ----------------------------------------------------------------------------------------------------------------------- Public Hearings: 1. PC 2003-07 The Highlands: Wyndham Deerpoint Homes, petitioner, requests an Amendment to the Annexation and Planned Unit Development Agreement in regard to modifying the subdivision name from The Highlands to Raintree Village. The real property is located on the South side of Route 71 and Route 126 approximately 1/2 mile East of Route 47 in the United City of Yorkville, Illinois. City Council Meeting Agenda June 24, 2003 Page 2 Citizen Comments: Presentations: Consent Agenda: 1. Ordinance Adopting the International Residential Code for One and Two Family Dwellings -Authorize Mayor and City Clerk to execute 2. Purchase of Two Squad Cars and Equipment -Approve purchase in an amount not to exceed$46,000 and financing through Yorkville National Bank for a two-year term at 3.15% 3. Ordinance Declaring Compliance with Prevailing Wage Act -Authorize Mayor and City Clerk to execute 4. Resolution Approving Senior Citizen Policy for Garbage Contract Discount -Authorize Mayor and City Clerk to execute 5. Troy&Banks Utility Audit Proposal -Authorize Mayor to execute 6. Oslad Grant Resolution for River's Edge Park Development -Authorize Mayor and City Clerk to execute 7. Oslad Grant Resolution for Hydraulic Street Riverfront Acquisition-Authorize Mayor and City Clerk to execute 8. Purchase of Two Wheel Pick-up Truck-Approve purchase from River Oaks Ford in an amount not to exceed$12,447 Plan Commission /Zoning Board of Appeals: Minutes for Approval (Corrections and Additions): Minutes of City Council— None Minutes of Committee of the Whole— None Bill payments for approval from the current Bill List (Corrections and Additions): Checks total these amounts: $ 597,041.85 (vendor) $ 120,178.18 (payroll period ending 6/14/03) $ 717,220.03 (total) City Council Meeting Agenda June 24, 2003 Page 3 Reports: Mayor's Report: 1. Board Appointment 2. Ad-hoc Tourism Meeting August 18, 2003, 6:30 p.m. Attorney's Report: 1. Intergovernmental Agreement with Kendall County for Grande Reserve Water Tower Site 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: Executive Director of Parks&Recreation Report: Community&Liaison Report: Committee Reports: Public Works Committee Report: 1. Resolution Supporting the State of Illinois Designation of Federal and Urban Routes (FAU Routes) 2. Mill & Van Emmon Street Watermain-Bid Opening Results 3. Savitski Property -Letter of Credit Economic Devel pment Committee Report: 1. No Report. Public Safety Committee Report: 1. No Report. City Council Meeting Agenda June 24, 2003 Page 4 Committee Reports (con'): Administration Committee Report: 1. Debt Certificate - 4.8 Million-Water Improvements 2. SSA for South Raintree Village (The Highlands) Additional Business: Executive Session: 1. For the collective negotiation matters between public employers and their employees or representatives. Adjournment: COMMITTEES, MEMBERS AND RESPONSIBILITIES F/Y 2003 —2004 PUBLIC WORKS Committee Departments Liaisons Chairman: Alderman Besco Water and Sewer Park Board Vice-Chair: Alderman Munns Streets and Alleys YB SD Committee: Alderman Sticka Sanitation and Waste Committee: Alderman Kot ECONOMIC DEVELOPMENT` Committee Departments Liaisons Chairman: Alderman Sticka Planning&Building& Zoning Chamber of Commerce Vice Chair: Alderwoman Burd Business&Economic Dev. Kendall County Econ. Dev. Committee: Alderwoman Ohare Plan Commission Committee: Alderman Besco Bristol Plan Commission Yorkville Econ. Dev. Corp. Aurora Area Convention& Tourism Council Downtown Re-development City Council Meeting Agenda June 24, 2003 Page 5 COMMITTEES, MEMBERS AND RESPONSIBILITIES F/Y 2003 —2004 (con't) PUBLIC SAFETY; - -- ------ ------- -------- ------- ----------- Committee Departments Liaisons Chairman: Alderman Kot Police Human Resource Comm. Vice Chair: Alderwoman Ohare Schools School District Committee: Alderwoman Spears Public Relations KenCom Committee: Alderman James ADMINISTRATIOPT Committee Departments Liaisons Chairman: Alderwoman Spears Finance Metra Vice Chair: Alderman James Public Properties Library Committee: Alderwoman Burd Personnel Cable Consortium Committee: Alderman Munns AD-HOC: TECHNOLOGY Committee Chairman: Alderman Munns Vice Chair: Alderman Kot Committee: Alderman Sticka Committee: Alderwoman Ohare AD-HOC: TOURISM Committee Chairman: Alderwoman Burd Vice Chair: Alderwoman Spears Committee: Alderman James Committee: Alderman Besco , United City of Yorkville County Seat of Kendall County ESTI -1836 800 Game Farm Road Cl)4. Yorkville, Illinois 60560 AGENDA O I. :J \ O Phone:630-553-4350 X81 $. Fax:630-553-7575 CITY COUNCIL MEETING /4LE `N-v BEECHER COMMUNITY BUILDING, AUSTIN ROOM 7:00 PM Tuesday, June 24, 2003 Call to Order: 7:00 p.m. Pledge of Allegiance: Roll Call by Clerk: WARD I WARD II WARD III WARD IV Rich Sticka Valerie Burd Marty Munns Joe Besco Paul James Larry Kot Wanda Ohare Rose Ann Spears Establishment of Quorum: Introduction of Guests: Amendments to Agenda: Committee Meeting Dates: Public Works Committee Meeting: 6:30 p.m., Monday, July 28, 2003 City Hall Conference Room Economic Development Committee: 7:00 p.m., Thursday, July 17, 2003 City Hall Conference Room Administration Committee Meeting: 6:30 p.m., Thursday, July 10, 2003 City Hall Conference Room Public Safety Committee Meeting: 6:30 p.m., Thursday, June 26, 2003 City Hall Conference Room ----------------------------------------------------------------------------------------------------------------------- Public Hearings: 1. PC 2003-07 The Highlands: Wyndham Deerpoint Homes, petitioner, requests an Amendment to the Annexation and Planned Unit Development Agreement in regard to modifying the subdivision name from The Highlands to Raintree Village. The real property is located on the South side of Route 71 and Route 126 approximately 1/2 mile East of Route 47 in the United City of Yorkville, Illinois. 1 City Council Meeting Agenda June 24, 2003 Page 2 Citizen Comments: Presentations: Consent Agenda: 1. Ordinance Adopting the International Residential Code for One and Two Family Dwellings -Authorize Mayor and City Clerk to execute 2. Purchase of Two Squad Cars and Equipment -Approve purchase in an amount not to exceed$46,000 and financing through Yorkville National Bank for a two-year term at 3./5% 3. Ordinance Declaring Compliance with Prevailing Wage Act -Authorize Mayor and City Clerk to execute 4. Resolution Approving Senior Citizen Policy for Garbage Contract Discount -Authorize Mayor and City Clerk to execute 5. Troy&Banks Utility Audit Proposal -Authorize Mayor to execute 6. Oslad Grant Resolution for River's Edge Park Development -Authorize Mayor and City Clerk to execute 7. Oslad Grant Resolution for Hydraulic Street Riverfront Acquisition-Authorize Mayor and City Clerk to execute 8. Purchase of Two Wheel Pick-up Truck -Approve purchase from River Oaks Ford in an amount not to exceed$12,447 Plan Commission /Zoning Board of Appeals: Minutes for Approval (Corrections and Additions): Minutes of City Council— None Minutes of Committee of the Whole— None Bill payments for approval from the current Bill List (Corrections and Additions): Checks total these amounts: $ 597,041.85 (vendor) $ 120,178.18 (payroll period ending 6/14/03) $ 717,220.03 (total) City Council Meeting Agenda June 24, 2003 Page 3 Reports: Mayor's Report: 1. Board Appointment 2. Ad-hoc Tourism Meeting August 18, 2003, 6:30 p.m. Attorney's Report: 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: Executive Director of Parks & Recreation Report: Community&Liaison Report: Committee Reports: Public Works Committee Report: 1. Resolution Supporting the State of Illinois Designation of Federal and Urban Routes (FAU Routes) 2. Mill & Van Emmon Street Watermain-Bid Opening Results 3. Savitski Property- Letter of Credit Economic Development Committee Report: 1. No Report. Public Safety Committee Report: 1. No Report. City Council Meeting Agenda June 24, 2003 Page 4 Committee Reports (con'): Administration Committee Report: 1. Debt Certificate - 4.8 Million- Water Improvements 2. SSA for South Raintree Village (The Highlands) Additional Business: Executive Session: 1. For the collective negotiation matters between public employers and their employees or representatives. Adjournment: COMMITTEES, MEMBERS AND RESPONSIBILITIES F/Y 2003 —2004 PUBLIC WORKS] Committee Departments Liaisons Chairman: Alderman Besco Water and Sewer Park Board Vice-Chair: Alderman Munns Streets and Alleys YBSD Committee: Alderman Sticka Sanitation and Waste Committee: Alderman Kot ECONOMIC DEVELOPMENT Committee Departments Liaisons Chairman: Alderman Sticka Planning&Building&Zoning Chamber of Commerce Vice Chair: Alderwoman Burd Business& Economic Dev. Kendall County Econ. Dev. Committee: Alderwoman Ohare Plan Commission Committee: Alderman Besco Bristol Plan Commission Yorkville Econ. Dev. Corp. Aurora Area Convention & Tourism Council Downtown Re-development City Council Meeting Agenda June 24, 2003 Page 5 COMMITTEES, MEMBERS AND RESPONSIBILITIES F/Y 2003 —2004 (con't) PUBLIC SAYETy Committee Departments Liaisons Chairman: Alderman Kot Police Human Resource Comm. Vice Chair: Alderwoman Ohare Schools School District Committee: Alderwoman Spears Public Relations KenCom Committee: Alderman James ADMINISTRATION Committee Departments Liaisons Chairman: Alderwoman Spears Finance Metra Vice Chair: Alderman James Public Properties Library Committee: Alderwoman Burd Personnel Cable Consortium Committee: Alderman Munns AD-HOC: TECHNOLOGY, Committee Chairman: Alderman Munns Vice Chair: Alderman Kot Committee: Alderman Sticka Committee: Alderwoman Ohare AD-HOC: TOURISM Committee Chairman: Alderwoman Burd Vice Chair: Alderwoman Spears Committee: Alderman James Committee: Alderman Besco 06/24/2003 10: 11 FAX 830 553 5764 DANIEL J. KRAMER 1002/004 STATE OF ILLINOIS ) )ss COUNTY OF KENDALL ) INTERGOVERNMENTAL AGREEMENT BETWEEN THE COUNTY OF KENDALL AND THE UNITED CITY OF YORKVILLE FOR WATER TOWER AND WATER SYSTEM IMPROVEMENTS THIS AGREEMENT is made this day of of 2003, between the UNITED CITY OF YORKVILLE, hereinafter referred to as the "CITY", and KENDALL COUNTY, hereinafter referred to as the "COUNTY". WHEREAS, the Illinois Constitution provides that units of local government may contract to share services and perform capital improvements through intergovernmental agreements, Ill. Const., Art. VII Sec. 10 (1970); and WHEREAS, Illinois statutes provide that public agencies may share power through intergovernmental agreements, (5 ILCS 220/1 et. seq. 2002); and WHEREAS, the CITY is a unit of local government, Ill. Const., Art.VII, Sec. 1, and a public agency, (5 ILCS 220/1) 2002 and the COUNTY is a unit of local government, Ill. Const. Art. VII, Sec. 1, and a public agency, (5 ILCS 220/1) 2002; and WHEREAS,the COUNTY and the CITY anticipate that due to the expansion of the City Water Supply System, the CITY is ready to commence construction of water tower within its one and one-half mile planning jurisdiction; and WHEREAS, the COUNTY and the CITY agree that said water tower and related water system are a legitimate government function which the CITY may construct within its 08/24/2003 10: 11 FAX 630 553 5764 DANIEL J. KRAMER a 003/004 one and one-half mile planning jurisdiction; and WHEREAS,the CITY agrees to pay all of the installation costs for the water system improvement: NOW THEREFORE, in consideration of the mutual covenants contained herein the CITY and the COUNTY agree as follows; 1. That the COUNTY agrees that the CITY is entitled to commence water tower and water system improvements within its one and one-half mile planning jurisdiction without the necessity of any Zoning action pursuant to the Illinois Municipal Code as part of its legitimate governmental duties. 2. This agreement shall be construed in accordance with the law and Constitution of the State of Illinois and if any provision is invalid for any reason such invalidation shall not render invalid other provisions which can be given effect without the invalid provision. IN WITNESS WHEREOF,the undersigned duly authorized representatives of the CITY and the COUNTY have caused this Agreement to be executed. UNITED CITY OF YORKVILLE KENDALL COUNTY By: By: Mayor John Church 06/24/2003 10: 11 FAX 830 553 5764 DANIEL J. KRAMER a 004/004 Attest: Attest: By; By: City Clerk County Clerk Prepared by: Law Offices of Daniel J. Kramer 1107A South Bridge Street Yorkville,Illinois 60560 630-553-9500 06/18/2003 14;26 FAX 630 553 5764 DANIEL J. KRAMER Z001/004 Revised June 4, 2003 June 17, 2003 STATE OF ILLINOIS ) )ss COUNTY KENDALL ORDINANCE NO. 2003- ORDINANCE DECLARING THE UNITED CITY OF YORKVILLE'S COMPLIANCE WITH ILLINOIS PREVAILING WAGE ACT WHEREAS, there is in effect, in the State of Illinois, an act known as the Illinois Prevailing Wage Act (820 ILCS 130/0.01 et. seq. 2002); and WHEREAS, said Act requires municipalities to comply with the Prevailing Wage Act when contracting for public works projects and imposes certain obligations on the part of said municipalities to implement and enforce the terms and provisions of said Act; and to pay the prevailing wages for all contractors, subcontractors, employees, and for any labor required under Municipal Public Works contracts in compliance with the Act; NOW THEREFORE, the Mayor and City Council of the UNITED CITY OF YORKVILLE, upon motion duly made, seconded, and approved, do hereby ORDAIN as follows: 1. The UNITED CITY OF YORKVILLE shall comply with the Illinois Prevailing Wage Act as set forth in(820 ILCS 130/0.01 et. seq. 2002) Page 1 of 4 06/18/2003 14 26 FAX 630 553 5764 DANIEL J KRAMER Z002/004 2. The UNITED CITY OF YORKVILLE shall comply with all provisions of the Davis-Bacon Act at the Federal level if stricter than Illinois requirements. 3. All ordinances or parts of ordinances conflicting with any of the provisions of this ordinance shall be and the same are hereby repealed. 4. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions hereof. IN WITNESS WHEREOF, this Ordinance has been enacted this day of , 2003. PAUL JAMES MARTY MUNNS RICHARD STICKA WANDA OHARE VALERIE BURR ROSE SPEARS LARRY KOT JOSEPH BESCO APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this Day of , A.D, 2003. MAYOR Page 2 of 4 06/18/2003 14 26 FAX 630 553 5764 DANIEL J KRAMER l003/004 PASSED by the City Council of the United City of Yorkville, Kendall County, Illinois this Day of , A.D. 2003. Attest: CITY CLERK Prepared by: Law Offices of Daniel J. Kramer Page 3 of 4 06/16/2003 14 26 FAX 630 553 5764 DANIEL J KRAMER 004/004 1107A South Bridge Street Yorkville, Illinois 60560 630-553-9500 Page 4 of 4 • 06/20/2003 09: 11 FAX 630 553 5784 DANIEL J. KRAMER 03002/003 STATE OF ILLINOIS ) )ss. COUNTY OF KENDALL ) RESOLUTION NO. RESOLUTION APPROVING SENIOR CITIZEN POLICY FOR GARBAGE CONTRACT DISCOUNT WHEREAS, the UNITED CITY OF YORKVILLE has entered into an extended Contract for refuse and garbage pickup services with a private Contractor; and WHEREAS, the UNITED CITY OF YORKVILLE had previously adopted a policy for providing a Senior Citizen discount for the benefit of its citizens in Resolution No. 2002-17: WHEREAS, the cost of said services has continually risen due to a variety of factors concerning limited landfill space and other increased expenses of disposal of garbage and refuse; and WHEREAS, the City Council through its Public Hearing process has aclmowledge that a problem exists in payment of mandate such as garbage refuse pickup cost, for people with fixed incomes; and WHEREAS, in order to determine eligibility for said Discount, the UNITED CITY OF YORKVILLE shall use the eligibility as set out in the Kendall County Senior Homestead Exemption Program; and NOW, THEREFORE, UPON MOTION DULY MADE SECONDED, AND APPROVED BY A MAJORITY OF THOSE VOTING THE CITY COUNCIL OF THE UNITED CITY OF YORKVILLE DOES HEREBY ORDAIN THAT THE POLICY CREATED AND ADOPTED BY THE CITY FOR A SENIOR CITIZEN DISCOUNT AS TO PAYMENT 06/20/2003 09. 11 FAX 630 553 5764 DANIEL J. KRAMER 1003/003 OF GARBAGE BILLS IS HEREBY AMENDED, as set out in the attached Exhibit"A" incorporated herein by reference. WANDA OHARE JOSEPH BESCO VALERIE BURR PAUL JAMES LARRY KOT MARTY MUNNS ROSE SPEARS RICHARD STICKA APPROVED by me, as Mayor of the United City of Yorkville, Kendall County,Illinois, this Day of , A.D. 20_. MAYOR PASSED by the City Council of the United City of Yorkville, Kendall County,Illinois this Day of ,A.D. 20_, Attest; CITY CLERK Law Offices of Daniel J. Kramer 1107A S. Bridge Street Yorkville, Illinois 60560 630.553.9500 Exhibit A United City of Yorkville Policy TITLED: Senior Citizen Discount Rate for Residential Curbside Waste Removal Policy Statement: This policy is to address the United City of Yorkville's waste disposal contract with Waste Management as it pertains to the senior citizen discount as stated within the contract. The discount is fifty cents ($.50) per month for residential curbside waste removal. Purpose: The purpose for this policy is to create a procedure to fairly apply the senior citizen discount for residential waste removal of fifty cents ($.50) per month and to identify who qualifies for the discounted rate. Definition: Qualified Senior Citizen: A qualified senior citizen is a person who is sixty-five (65) years of age or older and is a principal property owner or lessee of the property. Kendall County Homestead Exemption for Senior Citizens: A person is 65 years of age or older and a property owner who occupies the residence. Procedure: 1. A senior citizen who meets the qualifications as defined within this policy is eligible to apply for the discounted rate of fifty cents ($.50) per month for residential curbside waste removal. 2. A qualified senior citizen may apply in person at city hall office and bring proof of age. Furthermore, a qualified senior citizen may telephone the water department to verify their name is listed on the Kendall County Homestead Exemption for Senior Citizens list and/or the City may use other tools to create a primary listing of qualified senior citizens, however, this does not exclude any senior citizen from personally applying for the discounted rate. The finance department will verify the request for the discounted rate and apply the rate to the next available utility billing period. The discounted rate shall not be retroactive. 3. The utility department will actively publish a notice advertising the senior citizen discounted rate to the residential citizens of Yorkville through the local newspaper, City of Yorkville's quarterly newsletter, utility billing notices and other public awareness/education as recommended. 4. A citizen who is denied approval may appeal in writing to the city administrator for a review. The city administrator will review the appeal request with the assistance of the city attorney and respond in writing within 15 days of receipt of the appeal. Jun 20 03 05: 48p Troy %. Banks Consultants 716-839-4452 p. 1 TROY & BANKS Utility and Telecommunication Consultants Coo-ovate offices: Agreement BUFFALO-NEW YORK Snyder Professional Ctr. Suite 102 This Agreement is entered into as of between Troy& Banks, Inc. ("TB")and 4536 Main Street Buffalo,NY 14226 (800)499-8599 United City of Yorkville with an address at (716(8394402 Telefax(716)8394452 800 Game Farm Road, Yorkville, IL 60560 (the"Client"). Wench f)ffires: CALIFORNIA In consideration of the mutual agreements hereafter set forth,TB and Client agree as follows: 1143 M Street Fresno,CA 93654 1. The Client engages TB to conduct an audit or survey of Client's gas, electric, telecommunications and water utility ("Utility') service accounts for the purpose of securing FLORIDA refunds, credits and cost reductions resulting from discovery of charges or costs in excess of 34912 Teeview Lane those permitted or allowed by applicable contracts, tariffs, statutes, rules and regulations Tampa.FL 33541 and/or from overcharges or billing errors. TB agrees to conduct such audit. GEORGIA 2. Overcharges — For any refunds, credits or rebates obtained by TB for prior overcharges, PC.Box 923474 billing errors or costs in excess of those permitted by applicable contracts, tariffs, statutes, Norcross.GA 30010 rules or regulations, TB shall be paid 50%of all monies refunded or credited to the Client. NEW YORK 3. Future Cost Reductions - For any reductions in future costs for electric, gas, 62 Mallock Road telecommunication and water services resulting from TB analysis, the fee is 50% of the Rochester;NY 14428 amount saved each month for 12 months,from the date the savings begins.TB will document 4764 SummerhuratDrive actual monthly savings obtained by analysis of tariff cost applications. Liverpool,NY 13088 • 4. TB has made and makes no guarantee or assurance of any credit or refund amount or cost TENNESSEE saving results. 904 Lake Haven Road Knorv4e,TN 37922 5. If Client does not receive refunds, credits, or reductions in future billings,there will be no fee for TB services. e-mail: save@ troybanks.com 6. This agreement shall expire one year from the date as listed above. In the event that any Internet address: refunds, credits and cost reduction initiatives remain outstanding, Client and TB, by written www.croybanks.com confirmation, may renew this Agreement. 7. This Agreement sets forth the entire understanding and agreement between the parties. [Client Name] United City of Yorkville Troy&Banks, Inc. By: By: Thomas T. Ranallo, President Name: Title: Telephone: 630-553-8534 Telefax: 630-553-7575 KT 06/20/2003 10: 11 FAX 630 553 5764 DANIEL J. KRAMER Z 002/003 • STATE OF ILLINOIS/IDNR DOC-3 RESOLUTION OF AUTHORIZATION OSLAD/LWCF PROJECT APPLICATION United 1. Project Sponsor; City of Yorkville 2. Project Title: River's Edge Park Dev rhgn_ iteCity of Yorkville hereby certifies and acknowledges that it has 100%of the funds (local project Sponsor) necessary (includes cash and value of donated land) to complete the pending OSLAD/LWCF project within the timeframes specified herein for project execution, and that failure to adhere to the specified project timeframe or failure to proceed with the project because of insufficient funds or change in local recreation priorities is sufficient cause for project grant termination which will also result in the ineligibility of the local project sponsor for subsequent Illinois DNR outdoor recreation grant assistance consideration in the next two(2)consecutive grant cycles following project termination. AcquisitionEroiects It is understood that the project sponsor has up to twelve (12)months following project approval to acquire the subject property (petition to condemn must be filed for acquisitions involving eminent domain) and three (3) months following acquisition closing to submit a final reimbursement billing request to the IDNR(excluding eminent domain cases). Development Projects It is understood that the local project sponsor has six (6) months following project approval to initiate project development and a total of 24 months to complete said development with a Final Billing request submitted to 1DNR within three(3)months following completion. The United City of Yorkville further acknowledges and certifies that it will comply with all (local project sponsor) terms, conditions and regulations of 1) the Open Space Lands Acquisition and Development (OSLAD) program( 17 IL Adm. Code 3025)or federal Land&Water Conservation Fund(LWCF)program(17 IL Adm. Code 3030),as applicable, 2)the federal Uniform Relocation Assistance & Real Property Acquisition Policies Act of 1970 (P.L. 91-646) and/or the Illinois Displaced Persons Relocation Act(310 ILCS 40 et.seq.), as applicable, 3) the Illinois Human Rights Act (775 ILCS 5/1-101 et. seq.), 4) Title VI of thc Civil Rights Act of 1964,(P.L. 83-352),5)the Age Discrimination Act of 1975 (P.L. 94-135), 6)the Civil Rights Restoration Act of 1988 (F.L. 100-259)and 7)the Americans with Disabilities Act of 1990(P.L. 101-336); and will maintain the project area in an attractive and safe condition, keep the facilities open to the general public during reasonable hours consistent with the type of facility, and obtain from the Illinois DNR written approval for any change or conversion of approved outdoor recreation use of the project site prior to initiating such change or conversion; and for property acquired with OSLAD/LWCF assistance, agree to place a covenant restriction on the project property deed at the time of recording that stipulates the property must be used, in perpetuity, for public outdoor recreation purposes in accordance with the OSLAD/LWCF programs and cannot be sold or exchanged,in whole or part,to another party without approval from the Illinois DNR. BE IT FURTHER PROVIDED that the United City of Yorkville certifies to the best of its (local project sponsor) knowledge that the information provided within the attached application is true and correct. This Resolution of Authorization has been duly discussed and adopted by theUnitedCity of Yorkville (local project sponsor) at a legal meeting held on the day of , 2003 (Authorized Signature) (Title) ATTESTED BY: (Title) Rev, 1/01 08/20/2003 10: 11 FAX 830 553 5764 DANIEL J. KRAMER U1003/003 IN WITNESS WHEREOF, this Resolution has been enacted this day of , 2003 WANDA OHARE JOSEPH BESCO VALERIE BURD PAUL JAMES LARRY KOT MARTY MUNNS ROSE SPEARS RICHARD STICKA APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this day of , A.D. 20 . MAYOR PASSED by the City Council of the United City of Yorkville, Kendall County, Illinois this day of , A.D. 20 . Attest: CITY CLERK Prepared by &Return to: Law Offices of Daniel J. Kramer 1107A S. Bridge St. Yorkville, IL 60560 630.553.9500 06/20/2003 10 12 FAX 630 553 5764 DANIEL J. KRAMER 0002/003 STATE OF ILLINOIS/IDNR DOC-3 RESOLUTION OF AUTHORIZATION `OSLAD/LWCF PROJECT APPLICATION 1. Project Sponsor: city of Yorkville 2. Project Title: Hydraulic St. Riverfront Acq TheU niteccity of Yorkville hereby certifies and acknowledges that it has 100%of the funds (local project Sponsor) necessary (includes cash and value of donated land) to complete the pending OSLAD/LWCF project within the timeframes specified herein for project execution, and that failure to adhere to the specified project timeframe or failure to proceed with the project because of insufficient funds or change in local recreation priorities is sufficient cause for project grant termination which will also result in the ineligibility of the local project sponsor for subsequent Illinois DNR outdoor recreation grant assistance consideration in the next two(2)consecutive grant cycles following project termination. Acquisition Projects It is understood that the project sponsor has up to twelve(12)months following project approval to acquire the subject property(petition 10 condemn must be filed for acquisitions involving eminent domain) and three(3) months following acquisition closing to submit a final reimbursement billing request to the IDNR(excluding eminent domain cases). Development Projects It is understood that the local project sponsor has six (6) months following project approval to initiate project development and a total of 24 months to complete said development with a Final Billing request submitted to IDNR within three(3)months following completion. The United City of Yorkville further acknowledges and certifies that it will comply with all (local project sponsor) terms, conditions and regulations of 1) the Open Space Lands Acquisition and Development (OSLAD) program( 17 IL Adm. Code 3025)or federal Land&Water Conservation Fund(LWCF)program(17 IL Adm. Code 3030), as applicable, 2)the federal Uniform Relocation Assistance & Real Property Acquisition Policies Act of 1970 (Pl. 91-646) and/or the Illinois Displaced Persons Relocation Act (310 ILCS 40 et.seq.), as applicable, 3) the Illinois Human Rights Act (775 1LCS 5/1-101 et. seq.), 4) Title VI of the Civil Rights Act of 1964,(P.L. 83-352),5)the Age Discrimination Act of 1975 (P,L. 94-135), 6)the Civil Rights Restoration Act of 1988 (P.L. 100-259)and 7)the Americans with Disabilities Act of 1990(P.L. 101-336); and will maintain the project area in an attractive and safe condition, keep the facilities open to the general public during reasonable hours consistent with the type of facility, and obtain from the Illinois DNR written approval for any change or conversion of approved outdoor recreation use of the project site prior to initiating such change or conversion; and for property acquired with OSLAD/LWCF assistance, agree to place a covenant restriction on the project property deed at the time of recording that stipulates the property must be used, in perpetuity, for public outdoor recreation purposes in accordance with the OSLAD/LWCF programs and cannot be sold or exchanged,in whole or part,to another party without approval from the Illinois DNR. BE IT FURTHER PROVIDED that the U nited City of Yorkville certifies to the best of its (local project sponsor) knowledge that the information provided within the attached application is true and correct. This Resolution of Authorization has been duly discussed and adopted by the UnitefitY of Yorkville (local project sponsor) at a legal meeting held on the day of 2003 . (Authorized Signature) (Title) ATTESTED BY: (Title) Rev. 1/01 06/20/2003 10 12 FAX 630 553 5784 DANIEL J. KRAMER 01003/003 IN WITNESS WHEREOF, this Resolution has been enacted this day of , 2003 WANDA OHARE JOSEPH BESCO VALERIE BURR PAUL JAMES LARRY KOT MARTY MUNNS ROSE SPEARS RICHARD STICKA APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this day of ,A.D. 20 MAYOR PASSED by the City Council of the United City of Yorkville, Kendall County, Illinois this day of _, A.D. 20_ Attest: CITY CLERK Prepared by&Return to: Law Offices of Daniel J. Kramer 1107A S. Bridge St. Yorkville, IL 60560 630.553.9500 06/16/2003 17. 06 FAX 630 553 5764 DANIEL J. KRAMER VI002/006 RESOLUTION NO.: 03- RESOLUTION SUPPORTING THE STATE OF ILLINOIS DESIGNATION OF FEDERAL AID URBAN ROUTES (FAU Routes) WHEREAS, the State of Illinois routinely designates specific FAU Routes for the purpose of federal funding of roadway construction,maintenance, right-of-way acquisition and similar purposes; and WHEREAS, the Mayor and the City Council of THE UNITED CITY OF YORKVILLE after careful consideration deem it to be in the best interest of the City and the Community to authorize the State of Illinois to designate specific FAU Routes within the United City of Yorkville; and WHEREAS, the Mayor and the City Council of THE UNITED CITY OF YORKVILLE support the State of Illinois designations of FAU Routes and deem it to be acceptable and beneficial to the City: NOW THEREFORE BE IT RESOLVED BY THE UNITED CITY OF YORKVILLE: 1. That the City hereby supports any State of Illinois designation of Federal Aid Urban Routes within the United City of Yorkville . PASSED AND APPROVED this day of , 2003. MAYOR ATTEST: CITY CLERK 06/16/2003 17 OS FAX 630 553 5764 DANIEL J. KRAMER a 003/006 3 UNITED CITY OF YORKVILLE To: Tony Graft City Administrator • From: Joe Wywrot, City Engineer ti Subject: FAU Routes Date: May 8, 2003 • I met Lou Paukovitz of IDOT on April 30th regarding FAU routes in the Yorkville area. Yorkville is now officially within the Chicago metropolitan area, therefore we can request FAU route designations for certain roads. The FAU (Federal Aid Urban) designation makes •a road eligible for federal funds if we have a construction project. State and County roads have FAP (Federal Aid Primary) or FAS (Federal Aid Secondary) designations, and already are eligible for federal funding. I recommend that we request FAU designation as collector roads for the roads listed below: •Mill Road (Galena to Orchard) Kennedy Road(Galena to Route 47) Bristol Ridge Road (Route 34 to Cannonball) • Countryside Parkway (Center Parkway to Route 34) Center Parkway (Route 34 to Countryside Parkway) McHugh Road (Spring Street to Kennedy Road) , Spring Street(McHugh Road to Route 47) River Road (Route 47 to Eldarnain) Somonauk Street (Route 47 to Game Farm) Game Farm Road (Somonauk to Route 34) Cannonball Trail(Route 34 to Route 47) Van Ernmon Road (Route 47 to Route 71) • Mill Street (Van Ernmon to Route 126) • Fox Road (Route 47 to High Point) Refer to the attached map to see how these roads relate to each state and county roads as well as each other.,Some of these roads already have FAS designation(Bristol Ridge, Fox, Van Emmon, etc.) for some or all of their lengths, but Lou recommended that we request FAU designation. Designation as a minor arterial would be a possibility for Cannonball Trail (Route 34 to Route 47). Doing so, however, could require construction of wider lanes and longer radii at curves, which encourage higher speeds. Designating it as a collector gives us more flexibility on the type of road we want to have there. Once we settle on which streets that we would like to designate, IDOT will review the request make sure it is reasonable. They will then send the request on to IDOT's District 1 office, which will process it through the Kane County Council of Mayors. 06/16/2003 17: 06 FAX 630 553 5764 DANIEL J. KRAMER 0004/006 STATE OF ILLINOIS ) revised 6/16/03 ) ss. COUNTY OF KENDALL ) ORDINANCE 2003- AN ORDINANCE AMENDING TITLE 10, CHAPTER 6, ARTICLE 6A, SECTION 2 OF THE YORKVILLE CITY CODE TO PROVIDE FOR HISTORIC PRESERVATION OF STRUCTURES WITHIN THE R-1 ESTATE CLASS ONE-FAMILY RESIDENTIAL WHEREAS, THE UNITED CITY OF YORKVILLE, after careful consideration by the Mayor and City Council, has determined it necessary to promote, the conservation,protection, restoration,rehabilitation,use, and overall enhancement of structures having historic significance within the R-1 Estate Class One-Family Residential District; WHEREAS,THE UNITED CITY OF YORKVILLE, after careful consideration by the Mayor and City Council, has determined in order to facilitate said historic preservation within the R-1 Estate Class One-Family Residential District that Section 2 shall be amended to allow the sale of antiques as a Special Use within said District; WHEREAS, THE UNITED CITY YORKVILLE, after careful consideration by the Mayor and City Council, has determined that it is in the best interests of the community to amend the Title 10, Chapter 6, Article 6A, Section 2 of the Yorkville City Code to add"the sale of antique goods and property from a structure deemed to have historic significance; NOW THEREFORE BE IT ORDAINED BY THE UNITED CITY OF YORKVILLE; 1. That Title 10, Chapter 6,Article 6A, Section 2 of the Yorkville City Code is hereby amended to allow the following special uses in the R-1 Estate Class One-Family Residential District; A. The sale of antique goods and property from a structure deemed to have historic 06/16/2003 17.06 FAX 630 553 5764 DANIEL J. KRAMER a 005/006 significance as defined in the United City of Yorkville Overlay Zoning Ordinance 2. In all other respects Title 10 of the Yorkville City Code shall remain in full force and effect. 3. That if a conflict shall arise with respect to the Code of this Amendment,this Amendment shall control. REPEALER: All ordinances or parts of ordinances conflicting with any of the provisions of this ordinance shall be and the same are hereby repealed. SEVERABILITY: If any section, subsection, sentence, clause,phrase or portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions hereof. EFFECTIVE DATE: This ordinance shall be in effect from and after its passage, approval and publication in pamphlet form as provided by law. IN WITNESS WHEREOF, this Ordinance has been enacted this day of , 2003. PAUL JAMES MARTY MUNNS RICHARD STICKA WANDA OHARE VALERIE BURD ROSE SPEARS LARRY KOT JOSEPH BESCO APPROVED by me, as Mayor of the United City of Yorkville,Kendall County, Illinois, this day of , A.D. 2003. MAYOR 06/16/2003 17 OS FAX 630 553 5764 DANIEL J. KRAMER E 006/006 PASSED by the City Council of the United City of Yorkville, Kendall County, Illinois this day of , A.D. 2003. Attest: CITY CLERK This Document Prepared by: Law Offices of Daniel J. Krasner 1107A South Bridge Street Yorkville, Illinois 60560 630-553-9500 I ' RESOLUTION NO. RESOLUTION DECLARING OFFICIAL INTENT OF THE UNITED CITY OF YORKVILLE KENDALL COUNTY,ILLINOIS WHEREAS, the United City of Yorkville, Kendall County, Illinois (the "City") wishes to design, acquire, construct and install special services within the City's Special Service Area Number 2003-102 (Raintree Village—South f k.a. The Highlands) (the"Special Service Area") and the City wishes to issue its special tax bonds to finance said special services; and WHEREAS, the City hereby finds and determines that the financing of the special services described below by the City will serve the public purposes of the Special Service Area. NOW, THEREFORE, BE IT RESOLVED by the City Council of the United City of Yorkville, Kendall County, Illinois as follows: 1. The City intends to issue obligations (the "Bonds") for the purpose of financing the design, acquisition, construction and installation of special services consisting of engineering, soil testing and appurtenant work, mass grading and demolition, storm water management facilities, storm drainage systems and storm sewers, site clearing and tree removal, public water facilities, sanitary sewer facilities, erosion control measures, roads, streets, curbs, gutters, street lighting, traffic controls, sidewalks, equestrian paths and related street improvements, and equipment and materials necessary for the maintenance thereof, landscaping, wetland mitigation and tree installation, costs for land and easement acquisitions relating to any of the foregoing improvements, required tap-on and related fees for water or sanitary sewer services and other eligible costs (the "Project"). The total amount which the City intends to borrow through the issuance of the Bonds for the Project will not exceed $12,000,000. 2. Certain costs will be incurred by the City in connection with the Project prior to the issuance of the Bonds. The City reasonably expects to reimburse such costs with proceeds of the Bonds. 3. This Resolution constitutes a declaration of official intent under Treasury Regulation Section 1.150-2. 4. This Resolution shall be in full force and effect from and after its passage, approval and publication in pamphlet form, as provided by law. PAUL JAMES MARTY MUNNS RICHARD STICKA WANDA OHARE VALERIE BURD ROSE SPEARS LARRY KOT JOSEPH BESCO PASSED AND APPROVED this day of , 2003. Mayor [SEAL] Ar1'hST: City Clerk ORDINANCE NO. AN ORDINANCE PROPOSING THE ESTABLISHMENT OF SPECIAL SERVICE AREA NUMBER 2003-102 (RAINTREE VILLAGE— SOUTH f.k.a. The Highlands) IN THE UNITED CITY OF YORKVILLE AND PROVIDING FOR OTHER PROCEDURES IN CONNECTION THEREWITH BE IT ORDAINED BY THE CITY COUNCIL OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS AS FOLLOWS: Section 1. Authority. The United City of Yorkville, Kendall County, Illinois (the "City") is authorized pursuant to Article VII, Section 7(6) of the Constitution of the State of Illinois, and pursuant to the provisions of the Illinois Special Service Area Tax Law, 35 ILCS 200/27-5 et seq. (the "Act"), which provides, inter alia, the manner of levying or imposing taxes and issuing bonds for the provision of special services to areas within the boundaries of municipalities and counties. Section 2. Findings. The City Council of the City finds and determines as follows: a. Owners of record (the "Owners") of that portion of the City described in Exhibit A attached hereto and made a part hereof (hereinafter the "Subject Territory") have expressed an interest in the construction, acquisition and installation of various infrastructure improvements to their properties as further described herein; and b. Pursuant to Section 27-20 of the Act, the Owners have filed an application with the City Council of the City proposing that the City establish a special service area (the "Application"); and c. It is in the public interest that the City Council of the City consider the creation of a special service area for the Subject Territory; and d. The special service area proposed for consideration is compact and contiguous and is outlined on the map of a portion of the City, which map is attached hereto as Exhibit B and made a part hereof; and e. The proposed special service area will benefit specially from the municipal services to be provided to the area. These proposed municipal services are in addition to municipal services provided to the City as a whole. Section 3. Proposal. In response to the expressed interest of the Owners, the City Council of the City hereby accepts the Application and proposes the establishment of City of Yorkville Special Service Area Number 2003-102 (Raintree Village — South fk.a.The Highlands) for the construction, acquisition and installation of infrastructure improvements to serve the Subject Territory. Section 4. Public Hearing. A public hearing shall be held on the day of , 2003, at 7:00 p.m., at the Yorkville City Hall, 800 Game Farm Road, Yorkville, Illinois, to consider the creation of the City of Yorkville Special Service Area Number 2003-102 (Raintree Village— Southfk.a. The Highlands), in the Subject Territory. At the hearing, the following alternative methods of financing improvements within the proposed special service area will be considered: (i) the imposition or levy by the City of a tax in the proposed special service area sufficient to produce revenues to provide special municipal services to the proposed special service area; the maximum rate of such taxes to be extended in any year for special services under this ordinance within the proposed special service area shall not exceed the amount necessary to produce a maximum annual tax levy of $1,200,000 in accordance with the special tax roll referred to below, and (ii) the borrowing of an amount not to exceed an aggregate principal amount of$12,000,000 to be evidenced by special tax bonds of such area (the "Bonds"), the proceeds of which shall be used to pay the cost of providing special municipal services to the proposed special service area, to fund certain reserves for, and interest on, the Bonds and initial administrative expenses relating to the proposed special service area, and to pay the cost of issuing the Bonds. The special municipal services to be provided to the proposed special service area may include: engineering, soil testing and appurtenant work, mass grading and demolition, storm water management facilities, storm drainage systems and storm sewers, site clearing and tree removal, public water facilities, sanitary sewer facilities, erosion control measures, roads, streets, curbs, gutters, street lighting, traffic controls, sidewalks, equestrian paths and related street improvements, and equipment and materials necessary for the maintenance thereof, landscaping, wetland mitigation and tree installation, costs for land and easement acquisitions relating to any of the foregoing improvements, required tap-on and related fees for water or sanitary sewer services and other eligible costs. The Bonds, if issued, shall be retired over a period not to exceed forty (40) years from the date of their issuance and shall bear interest at a rate not to exceed the greater of nine percent (9%) per annum or 125% of the rate for the most recent date shown in the 20 G.O. Bonds Index of average municipal bond yields as published in the most recent edition of The Bond Buyer, published in New York, New York, at the time the contract is made for the sale of the Bonds. The Bonds, if issued, shall be retired by the levy of an annual tax levied against each parcel of property within the special service area pursuant to a special tax roll to pay the interest on the Bonds as it falls due and to discharge the principal thereof at maturity and to pay the costs of administration and maintenance of the Subject Territory. This tax is to be levied upon all taxable property within the proposed special service area. Section 5. Notice of Public Hearing. Notice of hearing shall be published at least once not less than fifteen (15) days prior to the public hearing specified in Section 4 above, in a newspaper of general circulation in the City. In addition, notice shall be given by depositing the notice in the United States mail addressed to the person or persons in whose name the general taxes for the last preceding year were paid on each lot, block, tract or parcel of land lying within the proposed special service area. This notice shall be mailed not less than ten (10) days prior to the time set for the public hearing. In the event taxes for the last preceding year were not paid, the notice shall be sent to the person last listed on the tax rolls prior to that year as the owner of the property. The notice to owners of record shall be in substantially the form set forth in Exhibit C to this Ordinance. 2 Section 6. Supercede Conflicting Ordinances. All ordinances or parts of ordinances in conflict with the provisions of this ordinance are repealed to the extent of such conflict. Section 7. Effective Date. This Ordinance shall be in full force and effect from and after its passage and approval in the manner provided by law. PAUL JAMES MARTY MUNNS RICHARD STICKA WANDA OHARE VALERIE BURD ROSE SPEARS LARRY KOT JOSEPH BESCO PASSED AND APPROVED this day of , 2003. Mayor ATTEST: City Clerk [SEAL] 3 EXHIBIT A Legal Description EXHIBIT B Map of Special Service Area Number 2003-102 (Raintree Village— South fk.a The Highlands) EXHIBIT C NOTICE OF HEARING UNITED CITY OF YORKVILLE SPECIAL SERVICE AREA NUMBER 2003-102 (RAINTREE VILLAGE— SOUTH fk.a. The Highlands) NOTICE IS HEREBY GIVEN that on , 2003 at 7:00 p.m. at the Yorkville City Hall, 800 Game Farm Road, Yorkville, Illinois, a hearing will be held by the City of Yorkville to consider forming a special service area, to be called "City of Yorkville Special Service Area Number 2003-102 (Raintree Village — South fk.a The Highlands)," consisting of the territory legally described in Exhibit 1 to this Notice. The approximate street location is the area generally depicted on the map of a portion of the City, which map is attached as Exhibit 2 to this Notice. The general purpose of the formation of the City of Yorkville Special Service Area Number 2003-102 (Raintree Village— South) is to provide special municipal services to the area which may include: engineering, soil testing and appurtenant work, mass grading and demolition, storm water management facilities, storm drainage systems and storm sewers, site clearing and tree removal, public water facilities, sanitary sewer facilities, erosion control measures, roads, streets, curbs, gutters, street lighting, traffic controls, sidewalks, equestrian paths and related street improvements, and equipment and materials necessary for the maintenance thereof, landscaping, wetland mitigation and tree installation, costs for land and easement acquisitions relating to any of the foregoing improvements, required tap-on and related fees for water or sanitary sewer services and other eligible costs. There will also be considered at the hearing the following alternative methods of financing improvements within the proposed special service area: (i) the levy of a tax by the City in the proposed special service area, sufficient to produce revenues to provide special municipal services to the proposed special service area; the maximum rate of such taxes to be extended in any year within the proposed special service area which shall not exceed the amount necessary to produce a maximum annual tax levy of$1,200,000 in accordance with the special tax roll referred to below, and (ii) the issuance of special tax bonds in an aggregate principal amount not to exceed $12,000,000 at an interest rate of not to exceed the greater of nine percent (9%) per annum or 125% of the rate for the most recent date shown in the 20 G.O. Bonds Index of average municipal bond yields as published in the most recent edition of The Bond Buyer, published in New York, New York, at the time the contract is made for the sale of the bonds, and to mature within thirty (30) years from the date of their issuance. The bonds, if issued, shall be retired by the levy of an annual tax established pursuant to a special tax roll to pay the interest on such bonds as it falls due and to discharge the principal thereof at maturity and to pay the costs of administration and maintenance of the special service area, said tax to be levied upon all taxable property within the proposed special service area. At the hearing, all interested persons affected by the formation of such special service area, including all persons owning taxable real estate therein, may file written objections to and be heard orally regarding the formation of and the boundaries of the special service area, the issuance of bonds and the levy of taxes affecting the area. The hearing may be adjourned by the City Council without further notice other than a motion to be entered upon the minutes of its meeting fixing the time and place of its adjournment. If a petition signed by at least 51% of the electors residing within the City of Yorkville Special Service Area Number 2003-102 (Raintree Village— Southfk.a The Highlands) and by at least 51% of the owners of record of the land included within the boundaries of the City of Yorkville Special Service Area Number 2003-102 (Raintree Village — South f.k.a. The Highlands) is filed with the City Clerk of the City of Yorkville within 60 days following the final adjournment of the public hearing objecting to the creation of the special service area, the issuance of bonds for the provision of special services to the area or the levy of taxes affecting the area, no such area may be created and no such bonds may be issued or taxes levied or imposed. • 2 Exhibit 1 to Notice Legal Description of Property Exhibit 2 to Notice Map of Proposed Special Service Area xhktbi- / - Erkhb - 1— SSA SOUTH-THE HIGHLANDS/(L Mree V i Ila m PART OF THE SOUTHWEST QUARTER OF SECTION 3 AND PART OF THE SOUTH HALF OF SECTION 4 AND PART OF SECTION 9 AND PART OF THE NORTHWEST QUARTER OF SECTION 10, ALL IN TOWNSHIP 36 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE CENTERLINE OF ILLINOIS STATE ROUTE NO. 71 WITH THE EASTERLY LINE OF THE ABANDONED RIGHT OF WAY OF THE FOX AND ILLINOIS UNION RATT WAY COMPANY; THENCE SOUTH 12' 43' 53" EAST ALONG SAID EASTERLY LINE, 1102.34 FEET TO A PONT OF CURVATURE; THENCE SOUTHERLY ALONG SAID EASTERLY LINE BEING A CURVE CONCAVE WESTERLY HAVNG A RADIUS OF 1644.91 FEET, AN ARC LENGTH OF 540.21 FEET, A CHORD BEAR.NG OF SOUTH 03' 19' 23" EAST AND A CHORD DISTANCE OF 537.78 FEET; THENCE SOUTH 06' 05' 07" WEST ALONG SAID EASTERLY LINE, 27.35 FEET TO A PONT OF CURVATURE; THENCE SOUTHERLY ALONG SAID EASTERLY LINE, BEING A CURVE CONCAVE EASTERLY HAVING A RADIUS OF 1607.46 FEET, AN ARC LENGTH OF 131.61 FEET, A CHORD BEARING OF SOUTH 03' 44' 23" WEST AND A CHORD DISTANCE OF 131.57 FEET TO A SOUTHWESTERLY LINE OF "OAK HILL FARM" AS SHOWN ON A PLAT RECORDED IN PLAT BOOK 5 AT PAGE 16 AND NOW IN CABINET OF PLATS AT SLOT 303; THENCE SOUTH 76' 53' 04" EAST ALONG SAID SOUTHWESTERLY LINE, 599.82 FEET TO AN ANGLE POINT IN SAID SOUTHWESTERLY LINE; THENCE SOUTH 52° 55' 31" EAST ALONG A SOUTHWESTERLY LINE OF SAID "OAK HILL FARM", 947.27 FEET FOR THE POINT OF BEGINNING; THENCE NORTH 47° 04' 29"EAST, 33.00 FEET; THENCE NORTH 42° 55' 31" WEST, 90.00 FEET TO A POINT OF CURVATURE; THENCE NORTHWESTERLY AND NORTHERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 370.00 FEET, AN ARC LENGTH OF 277.19 FEET, A CHORD BEARING OF NORTH 21° 27' 45" WEST, AND A CHORD DISTANCE OF 270.76 FEET; THENCE NORTH 00° 00' 00" WEST, 73.86 FEET; THENCE NORTH 90' 00' 00" EAST, 135.00 FEET; THENCE NORTH 50' 53' 55" EAST, 90.20 FEET; THENCE NORTH 90° 00' 00" EAST, 11.39 FEET TO A POINT OF CURVATURE; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 67.00 FEET, AN ARC LENGTH OF 61.89 FEET, A CHORD BEARING OF NORTH 63° 32' 15" EAST, AND A CHORD DISTANCE OF 59.71 FEET; THENCE NORTH 37° 04' 29" EAST, 566.88 FEET TO A PONT OF CURVATURE; THENCE NORTHEASTERLY, EASTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 158.00 FEET, AN ARC LENGTH OF 246.22 FEET, A CHORD BEARING OF NORTH 81° 43' 09" EAST AND A CHORD DISTANCE OF 222.05 FEET; THENCE NORTH 36° 21' 48" EAST, 125.19 FEET; THENCE NORTH 89° 45' 42" EAST, 284.11 FEET; THENCE NORTH 00° 14' 18" WEST, 80.00 FEET; THENCE SOUTH 89° 45' 42" WEST, 135.00 FEET; THENCE NORTH 00° 14' 18" WEST, 106.00 FEET; THENCE NORTH 89° 45' 42" EAST, 201.00 FEET; THENCE NORTH 00' 14' 18" WEST, 58.58 FEET TO A POINT OF CURVATURE; THENCE NORTHERLY ALONG A CURVE CONCAVE WESTERLY HAVING A RADIUS OF 333.00 FEET, AN ARC LENGTH OF 100.21 FEET, A CHORD BEARING OF NORTH 08° 51' 33" WEST, AND A CHORD DISTANCE OF 99.83 FEET; THENCE NORTH 17° 28' 47" WEST, 22.02 FEET TO A POINT ON A CURVE THROUGH WHICH A RADIAL LINE BEARS NORTH 15° 26' 27" WEST; THENCE EASTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 1272.00 FEET, AN ARC LENGTH OF 317.92 FEET, A CHORD BEARING OF NORTH 81° 43' 10"EAST AND A CHORD DISTANCE OF 317.09 FEET; THENCE NORTH 88° 52' 46" EAST, 313.55 FEET; THENCE SOUTH 00' 14' 18" EAST, 324.16 FEET; THENCE SOUTH 89° 45' 42" WEST, 270.00 FEET; THENCE SOUTH 71° 50' 06" WEST, 69.37 FEET; THENCE SOUTH 89° 45' 42" WEST, 270.00 FEET; THENCE SOUTH 00° 14' 18" EAST, 80.00 FEET; THENCE NORTH 89° 45' 42" EAST, 270.00 FEET; THENCE NORTH 71' 50' 06" EAST. 69.37 FEET; THENCE NORTH 89° 45' 42" EAST, 336.00 FEET; THENCE NORTH 00° 14' 18" WEST, 57.13 FEET; THENCE NORTH 88° 52' 46" EAST, 510.04 FEET; THENCE SOUTH 01' 07' 14'' EAST, 626.99 FEET; THENCE NORTH 88°52'46" EAST, 508.12 FEET; THENCE NORTH 01°07'14" WEST, 626.99 FEET; THENCE NORTH 88°52'46" EAST, 399.03 FEET TO A POINT OF CURVATURE; THENCE EASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 390.00 FEET, AN ARC LENGTH OF 341.45 FEET, A CHORD BEARING OF NORTH 63°47'52" EAST, AND A CHORD DISTANCE OF 330.65 FEET; THENCE NORTH 38°42'59" EAST, 1716.64 FEET TO A POINT ON THE CENTERLINE OF ILLINOIS ROUTE 126 THROUGH WHICH A RADIAL LINE BEARS NORTH 39°23'36' EAST; THENCE SOUTHEASTERLY ALONG SAID CENTERLINE, BEING A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 6875.55 FEET, AN ARC LENGTH OF 232.44 FEET, A CHORD BEARING OF SOUTH 49°38'17"EAST AND A CHORD DISTANCE OF 232.43 FEET TO THE EAST LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 3; THENCE SOUTH 00°03'41" WEST ALONG SAID EAST LINE, 775.42 FEET TO THE NORTHEAST CORNER OF THE NORTHWEST QUARTER OF SAID SECTION 10; THENCE SOUTH 00°06'21" EAST ALONG SAID EAST LINE, 1306.31 FEET; THENCE SOUTH 88°52'46" WEST, 2654.27 FEET TO THE EAST LLNE OF THE NORTHEAST QUARTER OF SAID SECTION 9; THENCE SOUTH 00' 14' 19" EAST ALONG SAID EAST LINE, 1317.03 FEET TO THE NORTHEAST CORNER OF THE SOUTHEAST QUARTER OF SAID SECTION 9; THENCE SOUTH 00' 02' 59" EAST ALONG THE EAST LINE OF SAID SOUTHEAST QUARTER, 659.40 FEET TO A STONE MONUMENT ON THE EAST LINE OF SAM SOUTHEAST QUARTER AND ON THE SOUTHWESTERLY LINE OF SAID "OAK HILL FARM"; THENCE NORTH 52' 55' 31" WEST ALONG SAID SOUTHWESTERLY LINE, 2643.93 FEET TO THE POINT OF BEGL NNNG; (CONTAINI'�G 157.727 ± ACRES) ALL LN KEND ALL TOWNSHIP, KENDALL COUNTY, ILLINOIS. r r, , in i.,* o r . v i. .,r n t�.r,1--1 l A) E X H l t l' : • -, 444.6 ! SSA NORTH (BOND ISSUE ONE) AND SSA SOUTH (BOND ISSUE TWO) .is: r P.D.E. SSA NORTH P.O.L. SSA SOWN , t•„ 49 ,. y r'yy / ray .moi j y a P• •• IOMr Or YGSMR: yf1,� yf .s•r b T y..d e, .. ;� y ysy .. .. � '�. tairu..etl susa.pm / y�y,TA NORTH 9 .air. \ :14461 ,I tIgoe _ SSA NORTH •liar • :t r .i _- , .•t •A1N SSA_ A_-.y/' _- • h Y 11 •.r.T.r r .m..r�• O UTIf S�I •.1°. i J .mt' �'JV• Yr • fm- wI - _._. -_ .-_- " � I ,� 0-7, • �.•. wow" o...s.. lust •.ear..•r r..ar' `r,a .y� r - SSA SOUTH a m .Yu::;'12::' -t ep.� ' '. •mnr • .an.v. r, - ♦y� ~(ra Ym smr..r[ uii« t � .. 1111114'""7��"�.. s'7'4°- m ar• _ Y ib _ _ s: s kr II Mm ' ::'. f j'1., Iyer. y.A E s Y1!'Y"• tr } s^ • SSA SOUTH •••p r ,�a - P D B. ss. sou rH f s ,� _.._ 0 I5O' 100' 600' • Scale ! = 300' i F. Survey.Vo.: C S a J I Ordered Ey, Wyndham Deerpomt JACOpy HEFNER ASSOCIATES. P.C. 0..ar.ptlon: SPECIAL SERVICE AREA (SSA)EXHIBIT . // u.ctnatts suWrcVoat i its Gspu.r Data Prepares. April Ii. 2003 [.u... sue.....ous Iisfl7OO-IOSO Ili(illlr3i-i]ii I Scale Lir . 300 I •p.J d tI Prep.reJ Brl PN ORDINANCE NUMBER AN ORDINANCE of the United City of Yorkville, Kendall County, Illinois, authorizing and providing for an Installment Purchase Agreement for the purpose of paying a part of the cost of waterworks improvements, and authorizing and providing for the issue of$4,800,000 Debt Certificates, Series 2003, evidencing the rights to payment under such Agreement, prescribing the details of the Agreement and Certificates, and providing for the security for and means of payment under the Agreement of the Certificates. Adopted by the City Council of said City on the 24th day of June 2003 Revised yorkville ordinance 6-20-03.doc 2108421 •KK•6/20/03 TABLE OF CONTENTS SECTION HEADING PAGE Preambles 1 Section 1. Definitions 4 Section 2. Incorporation of Preambles 6 Section 3. Determination to Authorize and Enter into Agreement and to Issue Certificates 7 Section 4. Agreement Is a General Obligation; Annual Appropriation 7 Section 5. Execution and Filing of the Agreement. 7 Section 6. Certificate Details. 9 Section 7. Book Entry Provisions 10 Section 8. Execution; Authentication 12 Section 9. Optional Redemption 13 Section 10. Redemption Procedures 13 Section 11. Registration of Certificates; Persons Treated as Owners 17 Section 12. Form of Certificate 19 Section 13. Sale of Certificates; Official Statement 10 Section 14. Creation of Funds and Appropriations 11 Section 15. Continuing Disclosure Undertaking 14 Section 16. General Tax Covenants 14 Section 17. Certain Specific Tax Covenants 15 Section 18. Pertaining to the Certificate Registrar 19 Section 19. Municipal Bond Insurance 23 Section 20. Defeasance. 25 Section 21. Publication of Ordinance 25 Section 22. Superseder and Effective Date. 26 [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 an Installment Purchase Agreement for the purpose of paying a part of the cost of waterworks improvements, and authorizing and providing for the issue of$4,800,000 Debt Certificates, Series 2003, evidencing the rights to payment under such Agreement, prescribing the details of the Agreement and Certificates, and providing for the security for and means of payment under the Agreement 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; 2. the Local Government Debt Reform Act of the State of Illinois (the "Debt Reform Act"), and in particular, the provisions of Section 17 of the Debt Reform Act (the "Installment Purchase Provisions 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 (the "Corporate Authorities") has considered the needs of the City and, in so doing, the Corporate Authorities have deemed and do now deem it advisable, necessary, and for the best interests of the City in order to promote and protect the public health, welfare, safety, and convenience of the residents of the City to acquire and construct the following: [Here insert more detailed description of waterworks improvements] including, in connection with said works, acquisition of all land or rights in land, mechanical, electrical, and other services necessary, useful, or advisable thereto (the "Project"), all as shown on preliminary plans and cost estimates as prepared by and on file with and approved by the Corporate Authorities. C. The Corporate Authorities have determined the total cost of the Project and expenses incidental thereto, including financial, legal, architectural, and engineering services related to such work and to the Agreement hereinafter provided for in this Ordinance (collectively "Related Expenses") to be not less than $4,800,000 plus estimated investment earnings which may be received on said sum prior to disbursement. D. Sufficient funds of the City are not available to pay the costs of the Project and Related Expenses, and it will, therefore, be necessary to borrow money in the amount of $4,800,000 for the purpose of paying such costs. E. Pursuant to the Installment Purchase Provisions of the Debt Reform Act, the City has the powers as follows: The governing body of each governmental unit may purchase or lease either real or personal property, including investments, investment agreements, or investment services, through agreements that provide that the consideration for the purchase or lease may be paid through installments made at stated intervals for a period of no more than 20 years or another period of time authorized by law, whichever is greater. Each governmental unit may issue certificates evidencing the indebtedness incurred under the lease or agreement. The governing body may provide for the treasurer, comptroller, finance officer, or other officer of the governing body charged with financial administration to act as counter-party to any such lease or agreement, as nominee lessor or seller. When the lease or agreement is executed by the officer of the governmental unit authorized by the governing body to bind the governmental unit thereon by the execution thereof and is filed with and executed by the nominee lessor or seller, the lease or agreement shall be sufficiently executed so as to permit the governmental unit to issue certificates evidencing the indebtedness incurred under the lease or agreement. The certificates shall be -2- valid whether or not an appropriation with respect thereto is included in any annual or supplemental budget adopted by the governmental unit From time to time, as the governing body executes contracts for the purpose of acquiring and constructing the services or real or personal property that is a part of the subject of the lease or agreement, including financial, legal, architectural, and engineering services related to the lease or agreement, the governing body shall order the contracts filed with its nominee officer, and that officer shall identify the contracts to the lease or agreement; that identification shall permit the payment of the contract from the proceeds of the certificates; and the nominee officer shall duly apply or cause to be applied proceeds of the certificates to the payment of the contracts. The governing body of each governmental unit may sell, lease, convey, and reacquire either real or personal property, or any interest in real or personal property, upon any terms and conditions and in any manner, as the governing body shall determine, if the governmental unit will lease, acquire by purchase agreement, or otherwise reacquire the property, as authorized by this subsection or any other applicable law. All indebtedness incurred under this subsection, when aggregated with the existing indebtedness of the governmental unit, may not exceed the debt limits provided by applicable law. F. The Corporate Authorities find that it is desirable and in the best interests of the City to avail of the provisions of the Installment Purchase Provisions of the Debt Reform Act, as quoted, as follows: 1. To authorize an Installment Purchase-Agreement (the "Agreement") more particularly as described and provided below in the text of this Ordinance; 2. To name as counter-party to the Agreement the City Treasurer (the "Treasurer"), as nominee-seller; 3. To authorize the Mayor of the City (the "Mayor") and the City Clerk (the "Clerk") to execute and attest, respectively, the Agreement on behalf of the City and to file same with the Clerk in his or her capacity as keeper of the records and files of the City; and -3- 4. To issue certificates evidencing the indebtedness incurred under the Agreement in the amount of $4,800,000, in form and having such details as set forth below in the text of this Ordinance. 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. A. The following words and terms are as defined in the preambles hereto. Applicable Law City Clerk Corporate Authorities Debt Reform Act Installment Purchase Provisions of the Debt Reform Act Mayor Project Related Expenses State Treasurer -4- B. The following words and terms are defined as set forth. "Agreement" means the Installment Purchase Agreement, as referred to in the preambles of this Ordinance, for the purpose of purchasing and financing the Project and Related Expenses. "Book Entry Form" means the form of the Certificates as fully registered and available in physical form only to the Depository. "Certificates"means the $4,800,000 Debt Certificates, Series 2003, authorized to be issued by this Ordinance. "Certificate Fund" means the fund established and defined in Section 14 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. "Certificate Registrar" means BNY Midwest Trust Company, Chicago, Illinois, in its respective capacities as bond registrar and paying agent hereunder, or a successor thereto or a successor designated as Certificate Registrar hereunder. "Code"means the Internal Revenue Code of 1986, as amended. • "Continuing Disclosure Undertaking" means the undertaking by the City as authorized in Section 15 hereof and set forth as Exhibit A. "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. "Ordinance" means this Ordinance, numbered as set forth on the title page hereof, and passed by the Corporate Authorities on the 24th day of June 2003. -5- "Project Fund" means the Project Fund established and defined in Section 14 of this Ordinance. "Purchase Contract"is defined in Section 13. "Purchase Price" means the price to be paid by the Purchaser pursuant to the Purchase Contract for the Certificates, to-wit, "Purchaser" means, collectively, the purchasers (underwriters) of the Certificates, namely, Bernardi Securities, Inc., Chicago, Illinois, and Griffin, Kubik, Stephens & Thompson, Inc., Chicago, Illinois. "Rebate Fund"_means the Rebate Fund authorized to be established and as defined in Section 17 of this Ordinance. "Record Date" means the 1st day of the month of any regular or other interest payment date occurring on the 15th day of any month and 15 days preceding any interest payment date occasioned by the redemption of Certificates on other than the 15th day of a month. "Tax-exempt" means, with respect to the Certificates, the status of interest paid and received thereon as not includible in 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. 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. -6- Section 2. Incorporation of Preambles. The Corporate Authorities hereby find that the recitals contained in the preambles to this Ordinance are true, correct, and complete and do incorporate them into this Ordinance by this reference. Section 3. Determination to Authorize and Enter into Agreement and to Issue Certificates. It is necessary and advisable for the public health, safety, welfare, and convenience of residents of the City to pay the costs of acquisition and construction of the Project, including all Related Expenses and to borrow money and, in evidence thereof and for the purpose of financing same, enter into the Agreement and, further, to provide for the issuance and delivery of the Certificates evidencing the indebtedness incurred under the Agreement. Section 4. Agreement Is a General Obligation; Annual Appropriation. 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 under the 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 the Agreement. Section 5. Execution arid Filing of the Agreement. From and after the effective date of this Ordinance, the Mayor and Clerk be and they are hereby authorized and directed to execute and attest, respectively, the Agreement, in substantially the form thereof set forth below in the text of this Ordinance, and to do all things necessary and essential to effectuate the provisions of the Agreement, including the execution of any documents and certificates incidental thereto or necessary to carry out the provisions thereof Further, as nominee-seller, the Treasurer is hereby authorized and directed to execute the Agreement. Upon full execution, the original of the -7- Agreement shall be filed with the Clerk and retained in the City records and constitute authority for issuance of the Certificates. Subject to such discretion of the officers signatory to the document as described in the foregoing text, the Installment Purchase Agreement shall be in substantially the form as follows: -8- INSTALLMENT PURCHASE AGREEMENT for purchase of real or personal property, or both, for the purpose of waterworks improvements, dated the 15th day of June 2003, in and for the United City of Yorkville, Kendall County, Illinois. THIS INSTALLMENT PURCHASE AGREEMENT (this "Agreement") made as of the 15th day of June 2003 by and between the Treasurer of the City, as Nominee-Seller(the "Seller"), and the United City of Yorkville, Kendall, Illinois, a municipality and unit of local government of the State of Illinois (the "City"): WITNESSETH A. The City Council (the "Corporate Authorities") of the City has determined to acquire real or personal property, or both, for the purpose of waterworks improvements (the "Project"), all as previously approved by the Corporate Authorities and on file with the City Clerk(the "Clerk"). B. Pursuant to the provisions of the Illinois Municipal Code; the Local Government Debt Reform Act of the State of Illinois (the "Debt Reform Act"), and, in particular, the provisions of Section 17 of the Debt Reform Act (the "Installment Purchase Provisions of the Debt Reform Act"); and all other Omnibus Bond Acts of the State of Illinois; in each case, as supplemented and amended (collectively `Applicable Law"); the City has the power to purchase real or personal property through agreements that provide that the consideration for the purchase may be paid through installments made at stated intervals for a period of no more than 20 years and has the power to issue certificates evidencing indebtedness incurred under such agreements. C. On the 24th day of June 2003, the Corporate Authorities, pursuant to Applicable Law and the need to provide for the Project, adopted an ordinance (the "Ordinance"), numbered , authorizing the borrowing of money for the Project, the execution and delivery of I-1 this Agreement to finance same, and the issuance of certificates evidencing the indebtedness so incurred. D. The 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 terms as defined in the Ordinance is also incorporated by reference for use in this Agreement. E. The Seller, as nominee as expressly permitted by the Installment Purchase Provisions of the Debt Reform Act, has agreed to make, construct, and acquire the Project on the terms as hereinafter provided. NOw THEREFORE in consideration of the mutual covenants and agreements hereinafter contained and other valuable consideration, it is mutually agreed between the Seller and the City as follows: 1. MAKE AND ACQUIRE PROJECT The Seller agrees to make, construct, and acquire the Project upon real estate owned or to be owned by or upon which valid easements have been obtained in favor of the City. 2. CONVEYANCE The Seller agrees to convey each part of the Project to the City and to perform all necessary work and convey all necessary equipment; and the City agrees to purchase the Project from the Seller and pay for the Project the purchase price of not to exceed $4,800,000; plus the amount of investment earnings which are earned on the amount deposited with the Treasurer from the sale of the Certificates and in no event shall the total aggregate principal purchase price to be paid pursuant to this Agreement exceed the sum of $4,800,000, plus the amount of I-2 investment earnings which are earned on the amount deposited with the Treasurer from the sale of the Certificates. 3. PAYMENTS The payment of the entire sum of$4,800,000 of said purchase price 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 Certificates in the Ordinance. 4. ASSIGNMENT Rights to payment of the Seller as provided in this Agreement are assigned as a matter of law, under the Installment Purchase Provisions of the Debt Reform Act, to the owners of the Certificates. This Agreement and any right, title, or interest herein, shall not be further assignable. The Certificates, evidencing the indebtedness incurred hereby, are assignable (registrable) as provided in the Ordinance. 5. TAX COVENANTS The covenants relating to the Tax-exempt status of the Certificates, as set forth in the Ordinance, insofar as may be applicable, apply to the work to be performed and the payments made under this Agreement. 6. TITLE. (a) Vesting of Title. Title in and to any part of the Project, upon delivery or as made, during all stages of the making or acquisition thereof, shall and does vest immediately in the City. I-3 (b) Damage, Destruction, and Condemnation. If, during the term of this Agreement, (i) all or any part of the Project shall be destroyed, in whole or in part, or damaged by fire or other casualty or event; or (ii) title to, or the temporary or permanent use of, all or any part of the Project shall be taken under the exercise of the power of eminent domain by any governmental body or by any person, firm, or corporation acting under governmental authority; or (iii) a material defect in construction of all or any part of the Project shall become apparent; or(iv)title to or the use of all or any part of the Project shall be lost by reason of a defect in title; then the City shall continue to make payments as promised herein and in the Certificates and to take such action as it shall deem necessary or appropriate to repair and replace the Project. 7. LAWFUL CORPORATE OBLIGATION The City hereby represents, warrants, and agrees that the obligation to make the payments due hereunder 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 this Agreement. 8. 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 Agreement did exist, have happened, been done and performed in regular and due form and time as required by law. 9. NO SEPARATE TAX THE SELLER AND THE CITY RECOGNIZE THAT THERE IS NO STATUTORY AUTHORITY FOR THE LEVY OF A SEPARATE TAX IN ADDITION TO OTHER TAXES OF THE CITY OR THE LEVY OF A I-4 SPECIAL TAX UNLIMITED AS TO RATE OR AMOUNT TO PAY ANY OF THE AMOUNTS DUE HEREUNDER. 10. DEFAULT In the event of a default in payment hereunder by the City, the Seller or any 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 this Agreement, including, without limitation, an action for specific performance. IN WITNESS WHEREOF the Seller has caused this Installment Purchase Agreement to be executed and attested, and his or her signature to be attested by the Clerk, and the City has caused this Installment Purchase Agreement 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 Ai l'J ST: City Clerk [SEAL] UNITED CITY OF YORKVILLE,KENDALL COUNTY,ILLINOIS Mayor ATTEST: City Clerk [SEAL] I-5 STATE OF ILLINOIS ), ) SS COUNTY OF KENDALL ) CERTIFICATE OF INSTALLMENT PURCHASE AGREEMENT 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 15th day of June 2003 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 City Treasurer of the City, also attested by me, dated the 15th day of June 2003, and entitled "INSTALLMENT PURCHASE AGREEMENT for Purchase of real or personal property, or both, for the purpose of waterworks improvements, dated the 15th day of June 2003, in and for the United City of Yorkville, Kendall County, Illinois"; and supporting the issuance of certain Debt Certificates, Series 2003, of the City; that attached hereto is a true and complete copy of said Agreement 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 at Yorkville, Illinois, this day of June 2003. City Clerk [SEAL] F-1 Section 6. Certificate Details. For the purpose of providing for acquisition and construction of the Project and Related Expenses, there shall be issued and sold the Certificates in the principal amount of $4,800,000. The Certificates shall each be designated "Debt Certificate, Series 2003"; be dated June 15, 2003 (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$5,000 or integral multiples thereof(but no single Certificate shall represent principal maturing on more than one date), and shall be numbered consecutively in such fashion as shall be determined by the Certificate Registrar. The Certificates shall become due and payable (subject to right of prior redemption) on December 15 of the years and in the amounts and bearing interest at the rates percent per annum as follows: YEAR AMOUNT($) RATE(%) 2013 100,000 2014 100,000 2015 100,000 2016 100,000 2017 100,000 2018 200,000 2019 1,000,000 2020 1,000,000 2021 1,000,000 2022 1,000,000 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 the basis of a 360-day year of twelve 30-day months) being payable on June 15 and December 15 of each year, commencing on June 15, 2004. 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 -9- 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, 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 -10- 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 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 -11- 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 facsimile signature of its Mayor and attested by the manual or 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 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 -12- 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. The Certificates 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 December 15, 2011, 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. Redemption Procedures. The Certificates subject to redemption shall be identified, notice given, and paid and redeemed pursuant to the procedures as follows: A. Optional Redemption. The City shall, at least 45 days prior to a redemption date (unless a shorter time period shall be satisfactory to the Certificate Registrar), notify the Certificate Registrar of such 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 -13- 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 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 -14- 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 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 E, 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. -15- 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 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. -16- I. 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 Rule Making 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 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 11. 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 -17- 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 an exchange, the registered owner, a new fully registered Certificate or Certificates 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 -18- 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 12. 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 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. -19- [FORM OF CERTIFICATE -FRONT SIDE] REGISTERED REGISTERED No. $ UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTY OF KENDALL UNITED CITY OF YORKVILLE DEBT CERTWICATE, SERIES 2003 See Reverse Side for Additional Provisions. Interest Maturity Dated Rate: Date: December 15, Date: June 15, 2003 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 June 15 and December 15 of each year, commencing June 15, 2004, 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 -20- for such purpose of BNY Midwest Trust Company, Chicago, Illinois, as paying agent and registrar (the "Certificate Registrar"). Payment of interest shall be made to the Registered 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 1st day of the month of any regular or other interest payment date occurring on the 15th day of any month and 15 days preceding any interest payment date occasioned by the redemption of Certificates on other than the 15th day of a month. 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 heieby 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 the Agreement, represented by the Certificates, together with all other indebtedness of the City, is within all statutory and -21- 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 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] -22- Date of Authentication: CERTIFICATE Certificate Registrar and Paying Agent: OF BNY Midwest Trust Company, AUTHENTICATION Chicago, Illinois This Certificate is one of the Certificates described in the within-mentioned Ordinance and is one of the Debt Certificates, Series 2003, having a Dated Date of June 15, 2003, of the United City of Yorkville, Kendall County, Illinois. BNY MIDWEST TRUST COMPANY, as Certificate Registrar By Authorized Officer Radian Asset Assurance Inc. ("Radian"), a New York corporation, has issued its Policy (the "Policy") insuring the payment of principal of and interest on this Bond on the "due date," as defined in the Policy. Reference is made to the Policy for the complete provisions thereof. All payments required to be made under the Policy shall be made in accordance with the provisions thereof. The owner of this Bond acknowledges and consents to the subrogation and transfer rights of Radian as more fully set forth in the Policy. -23- [FORM OF CERTIFICATE-REVERSE SIDE] This Certificate is one of a series (the "Certificates") in the aggregate principal amount of$4,800,000 issued by the City for the purpose of providing funds to pay part of the cost of the Project and Related Expenses, 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, which has been duly passed by the City Council of the City on the 24th day of June 2003, and approved by the Mayor, in all respects as by law required. The Certificates issued by the City in connection with the Project have been issued in evidence of the indebtedness incurred pursuant to a certain Installment Purchase Agreement (the "Agreement'), dated as of the fifteenth day of June 2003, entered into by and between the City and its City Treasurer, as Seller- Nominee, to which reference is hereby expressly made 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. -9- 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 13. 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 of the City, 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"), and as executed by the Purchaser, is hereby in all respects approved and confirmed, it being hereby declared that, to the best of the knowledge and belief of the members of the Corporate Authorities, after due inquiry, no person 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 Purchase Contract for the sale of the Certificates to the -10- Purchaser. The "Deemed Final" Official Statement of the City, dated June 24, 2003 (the "DFOS"), relating to the Certificates,presented to the Corporate Authorities with the Ordinance, is hereby ratified and approved. The Official Statement of the City, consisting of the DFOS and an addendum to be dated within seven 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 14. Creation of Funds and Appropriations. A. There is hereby created the "Debt Certificates, Series 2003, Certificate Fund" (the "Certificate Fund"), which shall be the fund for the payment of the principal of and interest on the Certificates. Accrued interest and premium, 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 Corporate Authorities, 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. 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 -11- 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 Project Fund, and any deficiencies in the Expense Fund shall be paid by disbursement from the Project Fund. C. The remaining proceeds of the Certificates shall be deposited into the Project Fund (the "Project Fund"), hereby created. Moneys in the Project Fund shall be used to pay costs of the Project in accordance with the following procedures: 1. Contracts ("Work Contracts") have been or shall be awarded, from time to time, by the Corporate Authorities for the work on the Project; and the Corporate Authorities represent and covenant that each Work Contract has been or will be let in strict accordance with Applicable Law and the rules and procedures of the City for same. 2. By paragraph 3 of this Section of this Ordinance, as follows, or pursuant to ordinance or resolution to be duly adopted, the Corporate Authorities shall identify all or a designated portion of each Work Contract to the Agreement. This Ordinance and any such further ordinance or resolution shall be filed of record with the Clerk and the Treasurer. The adoption and filing of any such ordinance or resolution and the Work Contracts with such officers shall constitute authority for the officer or officers of the City to make disbursements from the Project Fund to pay amounts due under such Work Contracts from time to time, upon such further resolutions, orders, vouchers, warrants, or other proceedings as are required under Applicable Law and the rules and procedures of the City for same. No action need be taken by or with respect to the contractors under the Work Contracts as, pursuant to the Installment Purchase Provisions of the Debt Reform Act, the Treasurer acts as Nominee-Seller of the Project for all purposes, enabling the issuance of the Certificates. Funds on deposit in the Project Fund shall be invested by the -12- appropriate officers of the City in any lawful manner. Investment earnings shall first be reserved and transferred to such other account as and to the extent necessary to pay any "excess arbitrage profits" or "penalty in lieu of rebate" under Code Section 148 to maintain the Tax-exempt status of the Certificates, and the remainder shall be retained in the fund for costs of the Project. Within sixty (60) days after full depletion of the Project Fund, the appropriate offices of the City shall certify to the Corporate Authorities the fact of such depletion; and, upon approval of such certification by the Corporate Authorities, the Project Fund shall be closed. 3. The following Work Contracts are hereby identified to the Agreement: BRIEF DESCRIPTION NAME OF CONTRACT IDENTIFIED OF WORK CONTRACT CONTRACTOR AMOUNT($) AMOUNT($) The Work Contracts so identified are attached to this Ordinance as Exhibits B-1 through B- D. Alternatively to the creation of the funds described above, the appropriate officers may allocate the Certificate Moneys or proceeds of the Certificates to one or more related funds -13- of the City already in existence and in accordance with good accounting practice; provided, however, that this shall not relieve such officers of the duty to account and invest the Certificate Moneys and the proceeds of the Certificates, as herein provided, as if such funds had in fact been created. Section 15. 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 A 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 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 16. 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 -14- 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 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. 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 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 17. Certain Specific Tax Covenants. A. 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 Certificates is to be used, directly or indirectly, in any trade or business carried on by any person other than a state or local governmental unit. -15- (2) Not more than 5% of the amounts necessary to pay the principal of and interest on the Certificates will be derived, directly or indirectly, from payments with respect to any private business use by any person other than a state or local governmental unit. (3) None of the proceeds of the Certificates is to be used, directly or indirectly, to make or finance loans to persons other than a state or local governmental unit. (4) No user of the infrastructure of the City to be improved as part of the 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) With respect to the Project, the City has heretofore incurred or within six months after delivery of the Certificates expects to incur substantial binding obligations to be paid for with money received from the sale of the Certificates, said binding obligations comprising binding contracts for the Project in not less than the amount of 5% of the net sale proceeds of the Certificates. (2) More than 85% of the proceeds of the Certificates will be expended on or before three years from the date hereof for the purpose of paying the costs of the Project. -16- (3) All of the principal proceeds of the Certificates and investment earnings thereon will be used, needed, and expended for the purpose of paying the costs of the Project, including expenses incidental thereto. (4) Work on the Project is expected to proceed with due diligence to completion. (5) 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 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. (6) 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. (7) The City has not been notified of any disqualification or proposed disqualification of it by the Commissioner of the Internal Revenue Service as a bond issuer which may certify bond issues under Treasury Regulations pennitting such certifications. -17- (8) 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. (9) 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. (10) 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 "Debt Certificates, Series 2003 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 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 Corporate Authorities, from time to time as required, amounts sufficient to meet the Rebate Requirement or to pay the Penalty. (11) Interest earnings in the Project Fund and the Certificate Fund are hereby authorized to be transferred, without further order or direction from the Corporate Authorities, 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 Corporate Authorities. -18- C. None of the proceeds of the Certificates will be used to pay, directly or indirectly, in whole or in part, for an expenditure that has been paid by the City prior to the date hereof except architectural or engineering costs incurred prior to commencement of any of the Project or expenditures for which an intent to reimburse has been properly declared under Treasury Regulations Section 1.103-18. This Ordinance is in itself a declaration of official intent under Treasury Regulations Section 1.103-18 as to all costs of the Project paid after 60 days prior to the date hereof and up to the issuance of the Certificates. D. The City reserves the right to use or invest moneys in connection with the Certificates in any manner, or to make changes in-he Project list, or to use the City infrastructure acquired, constructed, or improved as part of the Project in any manner, notwithstanding the representations and covenants in Sections 16 and 17 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 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 18. 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 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 -19- 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 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 -20- 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 and the Certificate Registrar. The Certificate Registrar shall not make a claim for payment on the financial guaranty insurance policy (the "Policy") issued by Radian Asset Assurance Inc., a corporation organized under the laws of the State of New York or any successor thereto (the "Insurer") until any and all funds held pursuant this Ordinance have been fully drawn to pay debt service on the Certificates. As long as the Policy shall be in full force and effect, the Certificate Registrar agrees to comply with the following provisions: AA. At least three (3) days prior to all interest payment dates, the Certificate Registrar will determine whether there will be sufficient funds to pay the principal of or interest on the Certificates on such interest payment date. If the Certificate Registrar determines that there will be insufficient funds, the Certificate Registrar shall so notify The Bank of New York (the "Insurance Trustee"). Such notice shall specify the amount of the anticipated deficiency, the Certificates to which such deficiency is applicable and whether such Certificates will be deficient as to principal or interest, or both. The Insurer will make payments of principal or interest due on the Certificates on or before the first -21- (1st) day next following the date on which the Insurance Trustee shall have received notice of nonpayment from the Certificate Registrar. BB. The Certificate Registrar shall, after giving notice to the Insurance Trustee as provided in (a) above, make available to the Insurer and the Insurance Trustee the registration books of the City maintained by the Certificate Registrar and all records relating to the funds maintained under this Ordinance. CC. The Certificate Registrar shall provide the Insurer and the Insurance Trustee with a list of registered owners of Certificates entitled to receive principal or interest payments from the Insurer under the terms of the Policy, and shall make arrangements with the Insurance Trustee (i) to mail checks or drafts or provide electronic transfers of funds to the registered owners of Certificates entitled to receive full or partial interest payments from the Insurer and (ii) to pay principal upon Certificates surrendered to the Insurance Trustee by the registered owners of Certificates entitled to receive full or partial principal payments from the Insurer. DD. The Certificate Registrar shall at the time it provides notice to the Insurance Trustee pursuant to AA above, notify registered owners of Certificates entitled to receive the payment of principal or interest thereon from the Insurer (i) as to the fact of such entitlement, (ii) that the Insurer will remit to them all or part of the interest payments next coming due upon proof of owner entitlement to interest payments and delivery to the Insurance Trustee, in form satisfactory to the Insurance Trustee as determined by the Insurer, of an appropriate assignment of the registered owner's right to payment, (iii) that should they be entitled to receive full payment of principal from the Insurer, they must surrender their Certificates (along with an appropriate instrument of assignment in form satisfactory to the Insurer to permit ownership of such Certificates to be registered in the -22- name of the Insurer) for payment to the Insurance Trustee, and not the Certificate Registrar, and (iv) that should they be entitled to receive partial payment of principal from the Insurer, they must surrender their Certificates for payment thereon first to the Certificate Registrar, who shall note on such Certificates the portion of the principal paid by the Certificate Registrar and then, along with an appropriate instrument of assignment in form satisfactory to the Insurer, to the Insurance Trustee, which will then pay the unpaid portion of principal. EE. In the event that the Certificate Registrar has notice that any payment of principal of or interest on a Certificate which has become due for payment and which is made to a registered owner by or on behalf of the City has been deemed a preferential transfer and theretofore recovered from its registered owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with the final, nonappealable order of a court having competent jurisdiction, the Certificate Registrar shall, at the time the Insurance Trustee is notified pursuant to AA above, notify all registered owners that in the event that any registered owner's payment is so recovered, such registered owner will be entitled to payment from the Insurer to the extent of such recovery if sufficient funds are not otherwise available, and the Certificate Registrar shall furnish to the Insurance Trustee and the Insurer its records evidencing the payments of principal of and interest on the Certificates which have been made by the Certificate Registrar and subsequently recovered from registered owners and the dates on which such payments are made. FF. The Insurer shall, to the extent it makes payment of principal of or interest on Certificates, become subrogated to the rights of the recipients of such payments in accordance with the terms of the Policy, and to evidence such subrogation (i) in the case of subrogation as to -23- claims for past due interest, the Certificate Registrar shall note the Insurer's rights as subrogee on the registration books of the City maintained by the Certificate Registrar, upon receipt from the Insurer of proof of the payment of interest thereon to the registered owners of the Certificates and (ii) in the case of subrogation as to claims for past due principal, the Certficate Registrar shall note the Insurer's rights as subrogee on the registration books of the City maintained by the Certfificate Registrar upon surrender of the Certificates by the registered owners thereof together with proof of the payment of principal thereof. Section 19. Municipal Bond Insurance. The Insurer is providing the Policy. The covenants made herein are for the benefit of the insurer at all times in consideration of the issuance of the Policy, which will result in lower interest costs on the Certificates for the City. The City agrees as follows with the Insurer: A. In the event that the principal and/or interest due on the Certificates shall be paid by Insurer pursuant to the Policy, the Certificates shall remain outstanding for all purposes, not be defeased or otherwise satisfied and not be considered paid by the City, and all covenants, agreements and other obligations of the City to the registered owners shall continue to exist and shall run to the benefit of Insurer and the Insurer shall be subrogated to the rights of such registered owners. B. The City hereby covenants to provide notification to the Insurer in the event of any significant change in the financial condition of the City. So long as the Bonds are outstanding the City shall provide the Insurer with: (i) annual audited financial statements within thirty (30) days of such statements being made available to the City. (ii) a copy of any audit, budget, or other material report of the City within twenty (20) days of completion of such audit, budget or report and thereafter as updated; -24- (iii) a copy of any notice or report required to be given to the Insurance Trustee, the Certificate Registrar, the registered owners of the Certificates or any other party to any of the Certificate documents executed in connection with the issuance of the Certificates, including, without limitation, notice of any redemption of or defeasance of Certificates, and any certificate rendered pursuant to any Certificate document relating to the security for the Certificates; and (iv) such additional information as the Insurer may reasonably request. The City will permit Insurer and/or the Insurance Trustee to discuss the affairs, finances and accounts of the City or any information the Insurer may reasonably request regarding the security for the Certificates with appropriate officers of the City. The City will permit the Insurer and/or the Insurance Trustee to have access to and make copies of all books and records relating to the Certificates, and the security therefor at any reasonable time. C. Any rating agency rating the Certificates shall receive notice of any amendment to the Certificate documents and a copy thereof at least fifteen (15) business days in advance of its execution or adoption. The Insurer shall be provided with a full transcript of all proceedings relating to the execution of any such amendment. D. The City covenants to obtain the Insurer's consent before the execution and delivery of any amendment or supplement to the Certificate documents executed in connection with the issuance of the Certificates. E. Anything in this Ordinance to the contrary notwithstanding, upon the occurrence and continuance of an event of default, the Insurer, if it shall not be in default, shall be entitled to control and direct the enforcement of all rights and remedies granted to the owners of the Certificates or any trustee appointed for the benefit of the owners as if the Insurer were the owner of the Certificates insured by it. Section 20. Defeasance. Any Certificate or Certificates which (a) are paid and cancelled, (b) which have matured and for which sufficient sums been deposited with the -25- 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. Section 21. Publication of Ordinance. Under Applicable Law, this Ordinance need not be published. -26- 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 immediately upon its passage and approval. ADOPTED by the Corporate Authorities on the 24th day of June, 2003, pursuant to a roll call vote as follows: PAUL JAMES MARTY MUNNS RICHARD STICKA MIKE ANDERSON VALERIE BURD ROSE SPEARS LARRY KOT JOSEPH BESCO APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, the 24th day of June, 2003. MAYOR PASSED by the City Council of the United City of Yorkville,Kendall County, Illinois,the 24th day of June, 2003. Attest: CITY CLERK -27- EXIIACT 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 the City Hall, located at 800 Game Farm Road, in said City, at 7:00 p.m., on the 24th day of June 2003. The Mayor called the meeting to order and directed the City Clerk to call the roll. Upon the roll being called, the Mayor, , and the following Aldermen answered present: The following were absent: The Corporate Authorities then discussed the proposed financing of waterworks improvements. 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 an Installment Purchase Agreement for the purpose of paying a part of the cost of waterworks improvements, and authorizing and providing for the issue of$4,800,000 Debt Certificates, Series 2003, evidencing the rights to payment under such Agreement, prescribing the details of the Agreement and Certificates, and providing for the security for and means of payment under the Agreement 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, City gave a public recital of the nature of the matter, which included a complete reading of the title of the Certificate Ordinance, a complete reading of the table of contents contained therein, and a brief commentary on each entry in the table of contents. 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. -2- Upon motion duly made and carried, the meeting adjourned. City Clerk -3- 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."Corporate Authorities") 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 Corporate Authorities held on the 24th day of June 2003 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 an Installment Purchase Agreement for the purpose of paying a part of the cost of waterworks improvements, and authorizing and providing for the issue of$4,800,000 Debt Certificates, Series 2003, evidencing the rights to payment under such Agreement, prescribing the details of the Agreement and Certificates, and providing for the security for and means of payment of the Certificates. (the "Ordinance") a true, correct, and completc 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 Corporate Authorities 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 was posted at the location where the Meeting was held and at the principal office. of the Corporate Authorities at least 48 hours in advance of the holding of the 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, 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 Corporate Authorities have complied with all of the provisions of said Act and said Code and with all of the procedural rules of the Corporate Authorities in the adoption of the Ordinance. IN WITNESS WHEREOF I hereunto affix my official signature and the seal of the City this 24th day of June 2003. City Clerk [SEAL] [Attach Exhibit A] -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 City Treasurer of the United City of Yorkville, Kendall County, Illinois (the "City"), and as such officers we do hereby certify that on the 24th day of June 2003 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 24th day of June 2003, and approved by the Mayor, and entitled: AN ORDINANCE of the United City of Yorkville, Kendall County, Illinois, authorizing and providing for an Installment Purchase Agreement for the purpose of paying a part of the cost of waterworks improvements, and authorizing and providing for the issue of$4,800,000 Debt Certificates, Series 2003, evidencing the rights to payment under such Agreement, prescribing the details of the Agreement and Certificates, and providing for the security for and means of payment under the Agreement of the Certificates. and further, properly certified copy of each of the following "Work Contracts" as defined in the Ordinance, enumerated as follows: BRIEF DESCRIPTION NAME OF CONTRACT IDENTIFIED OF WORK CONTRACT CONTRACTOR AMOUNT($) AMOUNT($) and that the same have all been deposited in, and all as appears from, the official files and records of our respective offices. IN WITNESS WHEREOF we have hereunto affixed our official signatures and the seal of the City, at Yorkville, Illinois, this 24th day of June 2003. City Clerk [SEAL] City Treasurer -2- UNITED CITY OF YORKVILLE To: Tony Graff, City Administrat From: Joe Wywrot, City Engineer `-, Subject: Savitski Property—Letter of edit Date: June 24, 2003 Mark Savitski came in today and provided us with an extension to his current letter of credit (attached), therefore we do not have to call his letter of credit to finish his site work. Mark also said he will ask Tom Grant to revise the sidewalk agreement language and submit it for city council approval. This item is scheduled for consideration by the City Council at their meeting on June 24, 2003. Cc: Dan Kramer, City Attorney Yorkville National Bank Old Second IRREVOCABLE LETTER OF CREDIT- AMENDMENT TO: City of Yorkville Date: June 24, 2003 800 Game Farm Road Issuer: The Yorkville National Bank Yorkville, IL 60560 Letter of Credit No: 15298 Amount: $18,135.00 Current Expiry: 06/30/2003 New Expiry: 12/31/2003 RE: Agreement by and between Mark and Leann Savitski and the City of Yorkville dated February 19, 2003 To Whom It May Concern: This letter is issued to amend Letter of Credit#15298 with respect to the current expiry. Please be advised that with respect to the current maturity date of June 30, 2003 that the letter is hereby amended to December 31, 2003. All other terms and provisions of the within referenced letter of credit remain unchanged. Sincerely, The Yorkville National Bank Aletd1"S Vog- Cori Newhausen Vice President Commercial Loan Officer 102 E Van Emmon St,Yorkville,IL 60560-0669[630-553-4230 Fax:630-553-7943]•408 E Countryside Pkwy,Yorkville,IL 60560-1061[630-553-4240 Fax:630-553-5361] 6800 W Route 34(in Wal-Mart Supercenter)Plano,IL 60545-9603[630-552-2265 Fax:630-552-4895]•323 E Norris Dr,Ottawa,IL 61350-1518[815-433-4433 Fax:815-433-4904] 410 E Church St,Sandwich,IL 60548-2380[815-786-2265 Fax:815-786-1475] www.o2bancor p.com member FDIC b -(t.)- r)-CL_)-t-- C 1,-t-( '‘. , (". t.- C - , CI ORDINANCE NUMBER AN ORDINANCE of the United City of Yorkville, Kendall County, Illinois, authorizing and providing for an Installment Purchase Agreement for the purpose of paying a part of the cost of waterworks improvements, and authorizing and providing for the issue of$4,800,000 Debt Certificates, Series 2003, evidencing the rights to payment under such Agreement, prescribing the details of the Agreement and Certificates, and providing for the security for and means of payment under the Agreement of the Certificates. Adopted by the City Council of said City on the 24th day of June 2003 revisedordinance.doc 2108421 •KK•6/24/03 Section 2. Incorporation of Preambles. The Corporate Authorities hereby find that the recitals contained in the preambles to this Ordinance are true, correct, and complete and do incorporate them into this Ordinance by this reference. Section 3. Determination to Authorize and Enter into Agreement and to Issue Certificates. It is necessary and advisable for the public health, safety, welfare, and convenience of residents of the City to pay the costs of acquisition and construction of the Project, including all Related Expenses and to borrow money and, in evidence thereof and for the purpose of financing same, enter into the Agreement and, further, to provide for the issuance and delivery of the Certificates evidencing the indebtedness incurred under the Agreement. Section 4. Agreement Is a General Obligation; Annual Appropriation. 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 under the 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 the Agreement. Section S. Execution and Filing of the Agreement. From and after the effective date of this Ordinance, the Mayor and Clerk be and they are hereby authorized and directed to execute and attest, respectively, the Agreement, in substantially the form thereof set forth below in the text of this Ordinance, and to do all things necessary and essential to effectuate the provisions of the Agreement, including the execution of any documents and certificates incidental thereto or necessary to carry out the provisions thereof. Further, as nominee-seller, the Treasurer is hereby authorized and directed to execute the Agreement. Upon full execution, the original of the -7- (b) Damage, Destruction, and Condemnation. If, during the term of this Agreement, (i) all or any part of the Project shall be destroyed, in whole or in part, or damaged by fire or other casualty or event; or(ii) title to, or the temporary or permanent use of, all or any part of the Project shall be taken under the exercise of the power of eminent domain by any governmental body or by any person, firm, or corporation acting under governmental authority; or (iii) a material defect in construction of all or any part of the Project shall become apparent; or(iv)title to or the use of all or any part of the Project shall be lost by reason of a defect in title; then the City shall continue to make payments as promised herein and in the Certificates and to take such action as it shall deem necessary or appropriate to repair and replace the Project. 7. LAWFUL CORPORATE OBLIGATION The City hereby represents, warrants, and agrees that the obligation to make the payments due hereunder 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 this Agreement. 8. 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 Agreement did exist, have happened, been done and performed in regular and due form and time as required by law. 9. No SEPARATE TAX THE SELLER AND THE CITY RECOGNIZE THAT THERE IS NO STATUTORY AUTHORITY FOR THE LEVY OF A SEPARATE TAX IN ADDITION TO OTHER TAXES OF THE CITY OR THE I-4 LEVY OF A SPECIAL TAX UNLIMITED AS TO RATE OR AMOUNT TO PAY ANY OF THE AMOUNTS DUE HEREUNDER. 10. DEFAULT In the event of a default in payment hereunder by the City, the Seller or any 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 this Agreement, including, without limitation, an action for specific performance. IN WITNESS WHEREOF the Seller has caused this Installment Purchase Agreement to be executed and attested, and his or her signature to be attested by the Clerk, and the City has caused this Installment Purchase Agreement 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] I-5 (iii) a copy of any notice or report required to be given to the Insurance Trustee, the Certificate Registrar, the registered owners of the Certificates or any other party to any of the Certificate documents executed in connection with the issuance of the Certificates, including, without limitation, notice of any redemption of or defeasance of Certificates, and any certificate rendered pursuant to any Certificate document relating to the security for the Certificates; and (iv) such additional information as the Insurer may reasonably request. The City will permit Insurer and/or the Insurance Trustee to discuss the affairs, finances and accounts of the City or any information the Insurer may reasonably request regarding the security for the Certificates with appropriate officers of the City. The City will permit the Insurer and/or the Insurance Trustee to have access to and make copies of all books and records relating to the Certificates, and the security therefor at any reasonable time. C. Any rating agency rating the Certificates shall receive notice of any amendment to the Certificate documents and a copy thereof at least fifteen (15) business days in advance of its execution or adoption. The Insurer shall be provided with a full transcript of all proceedings relating to the execution of any such amendment. D. The City covenants to obtain the Insurer's consent before the execution and delivery of any amendment or supplement to the Certificate documents executed in connection with the issuance of the Certificates. E. Anything in this Ordinance to the contrary notwithstanding, upon the occurrence and continuance of an event of default, the Insurer, if it shall not then be in default of its payment obligation under the Policy, shall be entitled to control and direct the enforcement of all rights and remedies granted to the owners of the Certificates or any trustee appointed for the benefit of the owners as if the Insurer were the owner of the Certificates insured by it. -25- F. If an event of default has occurred or is continuing with respect to the Certificates, no additional bonds, notes, certificates, contracts or any other obligations shall be issued by the City . Section 20. Defeasance. Any Certificate or Certificates which (a) are paid and cancelled and (b) which have matured and for which sufficient sums been deposited with the Certificate Registrar to pay all principal and interest due thereon 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. In addition, any Certificate or Certificates (i) 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, (ii) for which a verification report by a verifier acceptable to the Insurer shall be in form and substance satisfactory to the Insurer; and (iii) for which an opinion of bond counsel shall be rendered to the City to the effect that all of the requirements of the Certificates for defeasance of the Certificate have been complied with, shall also 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 -26- exchange; are expressly continued for all Certificates whether outstanding Certificates or not. Section 21. Publication of Ordinance. Under Applicable Law, this Ordinance need not be published. -27- UNITED CITY OF YORKVILLE To: Tony Graff, City Administrat r From: Joe Wywrot, City Engineer U Subject: Savitski Property—Letter of redit Date: June 16, 2003 Mark Savitski is developing a piece of property at the NE corner of Route 34 and Eldamain Road. The approved site plan calls for storm sewer, a detention basin, and landscaping. There was also a proposed sidewalk agreement (attached)that would delay the installation of public sidewalk. Most of the landscaping is complete, but the basin and storm sewer work have not begun. I also believe that the terms of the sidewalk agreement are not what were tentatively agreed to in a meeting with Mr. Savitski. There were two additional conditions that would require construction of the sidewalk, those being: • Sale of the property. • When the city requests installation. A letter of credit was established to guarantee the storm sewer, basin, and landscaping, but it is due to expire on June 30a'. I have spoken with Tom Grant about extending the letter of credit, but have not heard back from him yet. In order to protect the city's interest, I recommend that city council authorize calling the letter of credit if it is not extended to a mutually agreeable date. Please place this item on the Committee of the Whole agenda of June 17, 2003 for consideration. Cc: Dan Kramer, City Attorney INSTRUMENT PREPARED BY & RETURN TO: Thomas W. Grant Attorney at Law PO Box 326 Yorkville, IL 60560 COVENANT RE: INSTALLATION OF SIDEWALKS WHEREAS, the undersigned, MARK D. SAVITSKI and LEANN SAVITSKI, husband and wife, are the owners of the real estate described on Exhibit "A", attached hereto and made a part hereof, upon which there is now situated a commercial building; and WHEREAS, said real estate is situated at the Northeast corner of the intersection of Eldamain Road and US Route 34, in the United City of Yorkville,.Kendall County, Illinois; and WHEREAS, the City of Yorkville has heretofore issued a building permit for the construction of commercial building on said real estate and, incidental thereto, is requiring the installation of sidewalks along the perimeter of the real estate adjacent to Eldamain Road and adjacent to US Route 34; and WHEREAS, at the present time, there is no development adjacent, either to the North or to the East of the subject premises, and the undersigned, as owners, have requested of the City of Yorkville that they be permitted to delay or defer the installation of sidewalks until development occurs adjacent to their real estate; and WHEREAS, the City of Yorkville has agreed to defer the installation of the sidewalks in further accordance with the provisions of this Covenant. NOW, THEREFORE, the undersigned, MARK D. SAVITSKI and LEANN SAVITSKI, do herewith covenant and agree with the City of Yorkville that, in consideration of the City issuing the Occupancy Permit for the commercial building constructed on the real estate described on Exhibit "A", that the undersigned, or their successors or assigns, shall, at such time as sidewalks are installed up to their property line, on adjacent properties either to the North or to the East, cause sidewalks to be installed along the perimeter of their real estate, in accordance with the Ordinances and guidelines of the City of Yorkville, then in effect, regulating the installation of sidewalks. This Covenant shall run with the land and shall be binding upon and shall be obligatory upon the undersigned Owners, and their successors and assigns. IN WITNESS WHEREOF, the undersigned have executed this Covenant this day of , 2002. lEa' Mark D. Savitski Leann Savitski APPROVED and ACCEPTED by the City of Yorkville BY: Printed Name: G:\Shared\Savitski.Covenant.1119.doc EXHIBIT "A" THAT PART OF THE SOUTHWEST QUARTER OF SECTION 19, TOWNSHIP 37 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN BEING DESCRIBED BY COMMENCING AT A POINT ON THE WEST LINE OF SAID SOUTHWEST QUARTER AT THE INTERSECTION OF THE NORTH RIGHT OF WAY LINE OF ILLINOIS ROUTE NO. 34 FOR THE POINT OF BEGINNING; THENCE NORTH 00 DEGREES 10 MINUTES 28 SECONDS EAST ALONG THE WEST LINE OF SAID SECTION, 600 FEET; THENCE SOUTH 84 DEGREES 36 MINUTES 32 SECONDS EAST PARALLEL WITH SAID NORTH LINE OF ROUTE NO. 34, 148.00 FEET; THENCE SOUTH 00 DEGREES 10 MINUTES 28 SECONDS WEST PARALLEL WITH SAID WEST LINE, 600 FEET TO SAID NORTH LINE; THENCE NORTH 84 DEGREES 36 MINUTES 32 SECONDS WEST ALONG SAID NORTH LINE, 148.00 FEET TO THE POINT OF BEGINNING IN THE TOWNSHIP OF BRISTOL, KENDALL COUNTY, ILLINOIS, EXCEPT THAT PART OF THE SOUTHWEST QUARTER OF SAID SECTION 19- 37-07 DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID SOUTHWEST QUARTER; THENCE NORTH 00 DEGREES 10 MINUTES 27 SECONDS EAST 369.24 FEET ON AN ASSUMED BEARING ALONG THE WEST LINE OF SAID SOUTHWEST QUARTER TO THE POINT OF BEGINNING; THENCE CONTINUING NORTH 00 DEGREES 10 MINUTES 27 SECONDS EAST ALONG SAID WEST LINE 600 FEET; THENCE SOUTH 84 DEGREES 36 MINUTES 32 SECONDS EAST 50.21 FEET; THENCE SOUTH 00 DEGREES 10 MINUTES 27 SECONDS WEST 537.74 FEET; THENCE SOUTH 49 DEGREES 22 MINUTES 39 SECONDS EAST 81.47 FEET; THENCE SOUTH 84 DEGREES 36 MINUTES 32 SECONDS EAST 35.53 FEET; THENCE SOUTH 00 DEGREES 10 MINUTES 27 SECONDS WEST 15.06 FEET TO THE EXISTING NORTH RIGHT OF WAY LINE OF U. S. ROUTE 34; THENCE NORTH 84 DEGREES 36 MINUTES 32 SECONDS WEST 148.00 FEET TO THE POINT OF BEGINNING, IN THE TOWNSHIP OF BRISTOL, KENDALL COUNTY, ILLINOIS. Common Address: Northeast corner of Route 34 and Eldamain Roads Yorkville, Illinois P.I .N. : 02-19-300-009 YORKVILLE NATIONAL BANK 102 EAST VAN EMMON STREET.- , TREET. YORKVILLE, IL 60560CIA CITY OF YORKVILLE IRREVOCABLE LETTER OF CREDIT NO: 15298 ADDRESS . 800 GAME FARM ROAD YORKVILLE, IL 60560 TELEPHONE NO 'IDENTIFICATION NO 630/553-4350 BORROWER EXPIRATION DATE Mark D Savitski Leann Savitski This Letter of Credit shall expire upon the earlier of: ADDRESS 1. the close of business on June 30, 2003 2108 Rock Creek Rd and all drafts and accompanying statements or documents must be Plano IL 60545-9574 presented to Lender on or before that time; or TELEPHONE NO. IDENTIFICATION NO. 2. the day that Lender honors a draw under which the full amount of (630) 552-4479 S002718 this Letter of Credit is drawn. Lender identified above hereby establishes an Irrevocable Letter of Credit in favor of Beneficiary for a sum not exceeding the aggregate amount of $ Eighteen thousand one hundred thirty five & no/100 Dollars ($ 18, 135.00 ). These funds shall be made available to Beneficiary against Lender's receipt from Beneficiary of drafts drawn at sight on Lender at its address indicated above (or such other address that Lender may provide Beneficiary with written notice of in the future) and accompanied by the signed written statements or documents indicated below. WARNING TO BENEFICIARY: PLEASE EXAMINE THIS LETTER OF CREDIT AT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS REQUIREMENTS, EITHER SINGLY OR TOGETHER, YOU SHOULD CONTACT TIIE PARTY IN WHOSE FAVOR THIS LETTER OF CREDIT IS BEING ISSUED TO SEE IF THE LETTER OF CREDIT CAN BE AMENDED. OTHERWISE, YOU WILL RISK LOSING PAYMENT UNDER THIS LETTER OF CREDIT FOR FAILURE TO COMPLY STRICTLY WITH ITS TERMS AS WRITTEN. 1. DRAFT TERMS AND CONDITIONS Lender shall hgnor the drafts submitted by Beneficiaryunder th. followin terns and conditions: Documentation to support borrowers fault or completion of: Storm Sewer ($2,610) ; Site Excavation & Grading ($4, 830) ; Silt Fence ($945) ; Landscaping ($9, 750) . Upon Lender's honor of such drafts and payment to the Beneficiary, Lender, once the full amount of credit available under this Letter of Credit has been drawn, shall be fully discharged of its obligations under this Letter of Credit and shall not thereafter be obligated to make any further payments under this Letter of Credit in respect of such demand for payments to Beneficiary or any other person. If a non-conforming demand is made, Lender shall notify Beneficiary of its dishonor on or before the time mentioned in Section 5 below. Beneficiary shall have no recourse against Lender for any amount paid under this Letter of Credit after Lender honors any draft or other document which complies strictly with this Letter of Credit, and which on its face appears otherwise in order but which is signed, issued, or presented by any party or under the name of any party purporting to act for Beneficiary, purporting to claim through Beneficiary, or posing as Beneficiary. By paying to Beneficiary an amount demanded in accordance with this Letter of Credit, Lender makes no representation as to the correctness of the amount demanded and Lender shall not be liable to Beneficiary or any other person for or in respect to any amount so paid or disbursed for any reason whatsoever, including, without limitation, any nonapplication or misapplication by Beneficiary of the proceeds of such payment. By presenting upon Lender or confirmer, Beneficiary certifies that Beneficiary has not and will not present upon the other, unless and until Beneficiary meets with dishonor. Beneficiary promises to return to Lender and confirmer any funds received by Beneficiary in excess of the Letter of Credit's maximum drawing amount. 2. USE RESTRICTIONS All drafts must be marked "DRAWN UNDER IRREVOCABLE LETTER OF CREDIT NO. 15298 DATED February 19, 2003 ". Only Beneficiary may complete a draft and accompanying statements or documents required by this Letter of Credit and make a draw under this Letter of Credit. ® If checked, a copy of this Letter of Credit must accompany each draft and the amount of each draft shall be marked on the draft. Beneficiary shall maintain possession of Letter of Credit until the full amount of this Letter of Credit has been drawn. Once the full amount is drawn, Beneficiary shall return the Letter of Credit to Lender. Partial draws ] are permitted ❑ are nut permitted under this Letter of Credit. Lender's honor of a draw shall automatically reduce the amount of credit available under this Letter of Credit. 3. ASSIGNMENT OR TRANSFER ❑ This Letter of Credit may be assigned or transferred by Beneficiary upon providing Lender with prior written notice of the assignment or transfer.Such transferee shall be deemed the Beneficiary of this Letter of Credit and the sole permitted signed of any further demands under this Letter of Credit for payment and transfer. ❑ The right to draw under this Letter of Credit shall be nontransferable, except for: A. A transfer by direct operation of law to the original beneficiary's administrator, executor, bankruptcy trustee, receiver, liquidator, successor,or other representatives at law; and B. The first immediate transfer by such legal representative to a third party after express approval of a governmental body (judicial, administrative, or executive). 11-1A AUILOS 10100 4. TRANSFEREE'S REQUIRED DOCUMENTS When the presenter is a legal representative under subparagraph 3.A. or a third party under subparagraph 3.B., the documents required for a draw shall include: A. All documents required elsewhere in this Letter of Credit, except that such documents may be in the name of either the original beneficiary or the presenter permitted by paragraph 3; and B. A certified copy of the one or more documents which show the presenter's authority to claim through or to act with authority for the original beneficiary. 5. TIMING OF DISHONOR To the extent not prohibited by law, Lender shall honor or dishonor any draw submitted in connection with this Letter of Credit within five (5) banking days. Although Lender shall be entitled to honor or dishonor a draw beyond the expiration date of this Letter of Credit, Beneficiary shall not be entitled to submit a draw request or provide Lender with any documents in support of a draw after the expiration date hereof. 6. MODIFICATION The modification or waiver of any Lender's or Beneficiary's obligations or rights under this Letter of Credit must be contained in a writing signed by Lender. A waiver on one occasion shall not constitute a waiver on any other occasion. 7. COMPLIANCE BURDEN Under no circumstances shall Lender be held responsible for any impossibility or other difficulty in achieving strict compliance with the requirements of this Letter of Credit precisely as written. Beneficiary understands and acknowledges: (i) that unless and until the present wording of this Letter of Credit is amended with Lender's prior written consent, the burden of complying strictly with such wording remains solely upon Beneficiary; and (ii) that Lender is relying upon the lack of such amendment as constituting Beneficiary's initial and continued approval of such wording. 8. NON-SEVERABILITY If any aspect of this Letter of Credit is ever declared unenforceable for any reason by any court or governmental body having jurisdiction, Lender's entire engagement under this Letter of Credit shall be deemed null and void ab initio, and both Lender and Beneficiary shall be restored to the position each would have occupied with all rights available as though this Letter of Credit had never occurred. This non-severability provision shall override all other provisions in this Letter of Credit, no matter where such provision appears within the Letter's body. 9. CHOICE OF LAW/JURISDICTION This Letter of Credit shall be governed by the laws of the state indicated in Lender's address to the extent not governed by the International Chamber of Commerce uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No. 500. and to the extent such laws are not inconsistent with the terms of this Letter of Credit. Lender and Beneficiary consent to the jurisdiction and venue of any court located in the state indicated in Lender's address in the event of any legal proceeding under this Letter of Credit. 10.EXPIRY Lender hereby agrees with Beneficiary that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored if presented to the Lender on or before the Expiration Date. Dated: February 19, 2003 LENDER: YORKVILLE NATIONAL BANK 0)...If BY: A(.,46. CORI NEWHAUSEN TITLE: COMML LOAN OFFICER ENDORSEMENT OF DRAFTS DRAWN: Date Negotiated By Amount is Words Amount in Figures