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HomeMy WebLinkAbout13-53 Resolution No. 13-53 RESOLUTION AUTHORIZING EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT SUB-RECIPIENT AGREEMENT WITH WAYSIDE CROSS MINISTRIES FOR REIMBURSEMENT OF MONTHLY RENTAL COSTS FOR THE PERIOD OF JUNE 1, 2011 THROUGH MAY 31, 2012 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Sean R. Stegall,City Manager,and Kimberly A. Dewis,City Clerk,be and are hereby authorized and directed to execute a community development block grant agreement on behalf of the City of Elgin with Wayside Cross Ministries for reimbursement of monthly rental costs for the period of June 1, 2011 through May 31, 2012, associated with the lease of the facility at 1732 Berkley Street, Elgin, Illinois, a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: March 20, 2013 Adopted: March 20, 2013 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk AGREEMENT BETWEEN THE CITY OF ELGIN,AND WAYSIDE CROSS MINISTRIES This AGREEMENT is entered into as of the 20th day of March ,2013,by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter called "GRANTEE' or "CITY") and WAYSIDE CROSS MINISTRIES, a not-for-profit corporation incorporated pursuant to the laws of the State of Illinois (hereinafter called "SUB-RECIPIENT"), having a principal place of business at 1732 Berkley Street, Elgin, Illinois, 60123. I. RECITALS A. CITY has applied for Community Development Block Grant Funds (hereinafter referred to as "CDBG funds") from the United States Department of Housing and Urban Development (hereinafter called "HUD") as provided by the Housing and Community Development Act of 1974, as amended(P.L. 93-383)(hereinafter called"ACT"). B. CITY has considered and approved the application of SUB-RECIPIENT for CDBG funds allotted to CITY for distribution to SUB-RECIPIENT. C. The CITY and SUB-RECIPIENT enter into this Agreement pursuant to their respective powers to enter into such Agreements, as those powers are defined in the Illinois Constitution and applicable statutes. II. SCOPE OF THE PROJECT A. SUB-RECIPIENT hereby agrees to perform, in a timely fashion, the activities provided for herein, and those previously defined and identified in the Project Application and project description submitted by the SUB-RECIPIENT, dated January 27, 2011, and entitled '`Daytime Center Facility Rental," a copy of which is attached hereto as Exhibit "A" and incorporated herein by this reference (hereinafter referred to as the "PROJECT"). B. All funding provided to SUB-RECIPIENT shall be used solely to reimburse SUB- RECIPIENT for monthly rental costs associated with the lease of the facility at 1732 Berkley Street, Elgin, Illinois. The reimbursement will be for rental payments made by the SUB-RECIPIENT for the period of June 1, 2011 through May 31, 2012. This facility is to be used for the provision of support services and counseling activities that aid homeless families and individuals to become self-sufficient members of society, these activities being hereinafter referred to as the ''ELIGIBLE ACTIVITIES." An estimated 250 low and Vmoderate income clients of the SUB-RECIPIENT benefited from its ELIGIBLE ACTIVITIES durina the 2011-12 fiscal year. ELIGIBLE ACTIVITIES provided at the facility are to be consistent with the scope and intent of the PROJECT. All individuals served by SUB-RECIPIENT pursuant to this agreement will be low and moderate income persons as defined by 24 CFR 570.208 (a)(2)(1)(A). C. The SUB-RECIPIENT is identified as a faith-based organization. The proportion of time that SUB-RECIPIENT'S facility is utilized for the above-described ELIGIBLE 1 ACTIVITIES constitutes 87.5 percent of the time during which the facility is operated. SUB-RECIPIENT also provides inherently religious activities such as worship, religious instruction, or proselytization at the facility, these activities being hereinafter referred to as INELIGIBLE ACTIVITIES. The proportion of time that SUB-RECIPIENT'S facility is utilized for the above-described INELIGIBLE ACTIVITIES constitutes 12.5 percent of the time during which the facility is operated. SUB-RECIPIENT'S eligible and ineligible activities are outlined in a letter dated October 31, 2012, a copy of which is attached hereto as Exhibit "A.l" and incorporated herein by this reference (hereinafter referred to as the "WAYSIDE CENTER LETTER''). D. The SUB-RECIPIENT shall develop and submit to the CITY an Outcome Performance Measurement Statement that establishes project goals and objectives, identifies performance indicators, and estimates the number of clientele to be served. The SUB- RECIPIENT shall provide quarterly Progress Reports to the CITY, reporting on the status of the PROJECT in relation to the percent of project completion, accomplishments, effectiveness of the project as related to the goals and objectives, and the clientele served, including number served, client access to the service (either new or improved access), and demographics. The progress reports shall begin upon the signing of the Agreement and shall continue until the completion of this project or until directed to discontinue such reports in writing by the CITY. E. Prior to the expenditure of CDBG funds, SUB-RECIPIENT shall meet with the City's Community Development Department staff to establish acceptable documentation and guidelines regarding requests for payment for the activities described in the Scope of Work. No payment of CDBG funds will be made by City without the required documentation. F. SUB-RECIPIENT shall return to the CITY any program income, as defined in 24 CFR Part 570.500(a), which is generated as a result of this PROJECT. All written requests for an exception to this agreement shall be made, in-writing, to the City's Community Development Department explaining why the SUB-RECIPIENT needs the income, the specific activities the SUB-RECIPIENT will undertake with the funds and how the SUB- RECIPIENT will report the income and expenditures to the CITY. A written response to the request will be provided to SUB-RECIPIENT from the CITY. III. AMOUNT AND TERMS OF GRANT A. The CITY shall distribute to SUB-RECIPIENT, as SUB-RECIPIENT'S portion of the total grant received by the CITY and in consideration of the SUB-RECIPIENT'S undertaking to perform the PROJECT, a maximum of $41,469.7 (hereinafter "Grant Funds"), that amount being a sum not to exceed 87.5 percent of the total rent for the use of the space as outlined in the lease agreement entitled "Commercial Building Sublease," a copy of which is attached hereto as Exhibit "A.2" and incorporated herein by this reference (hereinafter referred to as the "LEASE AGREEMENT''), and that amount to be paid in the manner provided for herein at Sections II (D) and VII. Prior to the initial payment of Grant Funds, SUB-RECIPIENT shall submit, to the CITY, their Outcome Performance Measurement Statement and progress report indicating client demographics and program status. SUB-RECIPIENT shall submit quarterly progress reports, by the 10`h day following the end of the preceding quarter, to the CITY. The amount to be paid 2 to SUB-RECIPIENT will be based upon the work completed and the submittal of employee work reports in support of the invoiced amount. B. This PROJECT shall be identified as Project No. 154754 and Account No. 230-0000- 791.30-99, which identifying numbers shall be used by SUB-RECIPIENT on all payment requests. C. The Grant Funds being provided to SUB-RECIPIENT under this Agreement are being allocated based upon on the proportion of time that the facility is utilized for SUB- RECIPIENT's ELIGIBLE ACTIVITIES, in reliance upon representations made by the SUB-RECIPIENT and guidance provided by HUD. If at any time it is determined that the Grant Funds may not be properly allocated based upon time in the manner set forth in this Agreement, or if it is determined that the proportion of time that the facility is used for the ELIGIBLE ACTIVITIES is less than 87.5 percent, the CITY shall determine the amount of Grant Funds, if any, that may be properly be allocated to SUB-RECIPIENT's ELIGIBLE ACTIVITIES, and SUB-RECIPIENT shall promptly return to the CITY any Grant Funds that it has received exceeding said amount. D. SUB-RECIPIENT represents and agrees that no Grant Funds shall be used to support any INELIGIBLE ACTIVITIES. All ELIGIBLE ACTIVITIES shall be separate either in time or space from any INELIGIBLE ACTIVITIES. SUB-RECIPIENT must serve all eligible beneficiaries of its ELIGIBLE ACTIVITIES without regard to the religion or religious belief of an eligible beneficiary, or the lack thereof. SUB-RECIPIENT may not require a particular religious belief or activity as a condition of receiving benefits or participating in the ELIGIBLE ACTIVITIES of the SUB-RECIPIENT. Any violation of this subsection shall subject SUB-RECIPIENT to the remedies set forth in Section X and the repayment of Grant Funds previously disbursed or allegedly due to the SUB- RECIPIENT. E. In the event the ELIGIBLE ACTIVITIES identified in Section II,Scope of the Project, of this Agreement or other eligible services for low and moderate income individuals and households are no longer provided at the SUB-RECIPIENT's facility due to actions by the SUB-RECIPIENT, the SUB-RECIPIENT shall reimburse the U.S. Department of Housing and Urban Development or the CITY for project activities undertaken in whole or in part with CDBG funds at a rate of 6.7% for each year and portion of each year remaining on the ten-year useful life of the facility improvements. The ten-year compliance period shall begin on the commencement date of this Agreement. This provision shall not be construed as limiting the CITY from asserting any claims against the SUB-RECIPIENT for the breach of any other terms of this Agreement. F. Upon project completion as specified in Section II, Scope of the Project, any remaining CDBG project funds shall be available for reallocation by the CITY to another eligible CDBG project. If SUB-RECIPIENT materially fails to comply with any term of this award, the SUB-RECIPIENT shall repay to the CITY all funds used for ineligible activities. G. A minimum of 51 percent of the persons served on an annual basis shall be at or below 80 percent of the Median Family Income in order for the SUB-RECIPIENT to maintain eligibility for the CDBG funds provided for herein. Said income levels shall be updated and revised annually to conform to levels set by the U. S. Department of Housing and Urban Development. Failure to meet the aforementioned minimum 51 percent threshold 3 shall require SUB-RECIPIENT to reimburse the CITY for funds expended, in whole or in part, for project activities. H. Changes in the scope of services, budget, or method of compensation contained in this Agreement, unless otherwise noted, may only be made through a written amendment to this Agreement, executed by the SUB-RECIPIENT and CITY. IV. SUB-RECIPIENT'S COMPLIANCE WITH THE ACT A. CITY shall assist SUB-RECIPIENT in making application for CDBG funds. B. SUB-RECIPIENT shall abide by the Act and all HUD rules and regulations promulgated to implement the Act. C. SUB-RECIPIENT shall, upon request of the CITY, (1) assist in the completion of an environmental review and (2) complete certifications showing equal employment opportunity compliance including equal employment opportunity certifications with reference to the PROJECT, as set forth in Exhibit "C" attached hereto and made a part hereof. D. SUB-RECIPIENT, in performing under this Agreement, shall: 1. Not discriminate against any worker, employee, or applicant, or any member of the public, because of race, creed, color, sex, age or national origin, nor otherwise commit an unfair employment practice; and 2. Take affirmative action to insure that applicants are employed without regard to race, creed, color, sex, age or national origin, with such affirmative yaction including, but not limited to the following: Employment, upgrading, demotion or transfer, termination, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, selection for training, including apprenticeship. E. SUB-RECIPIENT shall,permit the CITY and HUD to conduct on-site reviews, examine personnel and employment records and to conduct any other procedures or practices to assure compliance with the provisions of this agreement. SUB-RECIPIENT shall post in conspicuous places available to employees and applicants for employment notices setting forth the provisions of Section IV(D) above. F. SUB-RECIPIENT shall not violate any laws, state or federal rules or regulations, including but not limited to those regarding a direct or indirect illegal interest on the part of any employee or elected official of the SUB-RECIPIENT in the PROJECT or payments made pursuant to this Agreement. G. SUB-RECIPIENT hereby warrants and represents that neither the PROJECT, including but not limited to any funds provided pursuant thereto,nor any personnel employed in the administration of the program shall be in any way or to any extent engaged in the conduct of political activities in contravention of Chapter 15 of Title 5, United States Code, commonly known as the Hatch Act. 4 i H. SUB-RECIPIENT shall maintain records to show actual time devoted and costs incurred, in relation to the PROJECT, and shall prepare and submit quarterly progress reports which describe the work already performed and anticipated during the remaining time of the PROJECT. Upon fifteen (15)days notice from the CITY, originals or certified copies of all time sheets, billings, and other documentation used in the preparation of said progress reports shall be made available for inspection, copying, or auditing by the CITY at any time during normal business hours, at 150 Dexter Court,Elgin, Illinois. I. SUB-RECIPIENT shall adopt the audit requirements of the Office of Management and Budget (hereinafter "OMB") Circular A-133, "Audits of Institutions of Higher Learning and Other Non-Profit Institutions." SUB-RECIPIENT shall submit to the CITY one copy of said audit report. SUB-RECIPIENT shall permit the authorized representatives of the CITY, HUD and the Comptroller General of the United States to inspect and audit all data and reports of the SUB-RECIPIENT relating to its performance under the Agreement. J. SUB-RECIPIENT and CITY shall at all times observe and comply with Title 24 CFR Part 570 and all applicable laws, ordinances or regulations of the Federal, State, County, and local government, which may in any manner affect the performance of this Agreement. K. SUB-RECIPIENT shall transfer to the CITY any unused CDBG funds and submit all billings attributable to this Project at the time this Agreement expires. L. SUB-RECIPIENT will ensure that any real property under the SUB-RECIPIENT'S control that was acquired and/or improved in whole or in part with CDBG funds in excess of$25,000 is used exclusively for the benefit of low and moderate income persons as defined by HUD, for a period of 15 years after the expiration of this agreement. M. If during the 15 year period after the expiration of this Agreement, the SUB-RECIPIENT disposes of any property under the SUB-RECIPIENT'S control that was acquired and/or improved in whole or in part with CDBG funds in excess of 525,000, then the SUB- RECIPIENT will reimburse the CITY in the amount of the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property in accordance with 24 CFR 570.503(b)(8) and 24 CFR 570.505. V. RIGHTS TO SUBCONTRACT A. SUB-RECIPIENT shall not assign, transfer, subcontract or otherwise convey its rights or obligations under this Agreement without the prior written consent of the CITY, which consent may be withheld in the CITY'S sole discretion." B. Administration of any subcontracts by the SUB-RECIPIENT shall be in conformance with 24 CFR Part 570.200(d)(2) and Part 85.36. VI. SUB-RECIPIENT'S AUTHORIZATION TO ACCEPT PROPOSALS 5 A. After the CITY has received notification that funds for the PROJECT have been released by HUD, the SUB-RECIPIENT shall be authorized to accept the proposal of any subcontractor for the PROJECT. VII. BILLING PROCEDURE A. Upon Release of Grant Funds by HUD for the PROJECT, the CITY shall make disbursements to the SUB-RECIPIENT as either reimbursement for advances made by SUB-RECIPIENT or as advances for specific cash requirements of SUB-RECIPIENT for the PROJECT. All claims of SUB-RECIPIENT, whether for reimbursement or advancement, shall comply with the following requirements: 1. SUB-RECIPIENT shall submit a listing of all disbursements of CDBG Funds, on a form provided by the CITY. 2. Any claim for advancement of CDBG Funds shall be limited to an amount necessary for SUB-RECIPIENT to meet specific cash requirements for the PROJECT and shall be disbursed by SUB-RECIPIENT within three (3) working days of receipt by SUB-RECIPIENT. 3. Any request for reimbursement or advancement pertaining to work under contracts from the SUB-RECIPIENT shall include the following: a. For interim payments to contractors and subcontractors, certification that the work for which payment is requested has been performed and is in place and to the best of SUB-RECIPIENT'S knowledge, information and belief that, the quality of such work is in accordance with the contract and subcontracts, subject to: (i) any evaluation of such work as a functioning PROJECT upon substantial completion; (ii) the results of any subsequent tests permitted by the subcontract; and (iii) any defects or deficiencies not readily apparent upon inspection of the work; and b. For final payment, that the work has been performed in a satisfactory manner and in conformance with the contract. 4. Processing of all requests for payment shall be contingent upon the submission of the required documentation by the contractor and subcontractor to the CITY that fully complies with federal labor standards, uniform relocation act or any other applicable federal, state, or local statutes,rules or regulations. 5. SUB-RECIPIENT shall forward to the CITY all billings, vouchers, and other documents representing any accounts payable, in such timely and reasonable manner as both parties shall determine; provided, however, that in no event shall such documents be forwarded to the CITY later than twenty-one (21) days after SUB-RECIPIENT'S receipt of such documents. 6. SUB-RECIPIENT shall cooperate with the CITY to facilitate the maintenance of financial records by the CITY as required by Title 24 CFR 85. 6 B. Upon submission of an acceptable claim for Grant Funds, the CITY shall process such claim and shall approve such claim for payment following approval by the City's Community Development Department, for compliance with this Agreement and applicable HUD requirements. C. Except as provided for in Sections IX and X hereof, the CITY shall pay all required payments against eligible project costs, as described in Section 11.13, incurred by SUB- RECIPIENT under this Agreement. VIII. ADMINISTRATION AND REPORTING REQUIREMENTS A. SUB-RECIPIENT shall administer the Grant Funds in conformance with the regulations, policies, guidelines and requirements of OMB Circular numbers A-I 10, and A-122, as they relate to the acceptance and use of federal funds for the PROJECT. B. SUB-RECIPIENT shall submit all required information to show compliance with applicable laws, rules and regulations, as specified in this Agreement and shall submit to the CITY a quarterly progress report, by the 10`h day following the end of the preceding quarter. Other reporting requirements are specified in Exhibit "B" attached hereto and made a part of this Agreement. C. Management Plan and Operating Budget of the Facility SUB-RECIPIENT shall maintain, and keep current, a management plan and operating budget stating policies governing the operation of the facility and shall keep this plan and budget on file with the CITY. IX. TERMINATION OF AGREEMENT OR SUSPENSION OF PAYMENT A. During the implementation of the PROJECT, the CITY may terminate this Agreement or may suspend payment of Grant Funds to SUB-RECIPIENT for SUB-RECIPIENT'S substantial breach of the Agreement, abandonment of the PROJECT or occurrence rendering impossible the performance by SUB-RECIPIENT of this Agreement. B. During the implementation of the PROJECT, the CITY may suspend payments of Grant Funds, due to use of funds in a manner unrelated to SUB-RECIPIENT'S performing the PROJECT, failure by SUB-RECIPIENT in submitting supporting information or documentation for a claim, submission by SUB-RECIPIENT of incorrect or incomplete reports,or SUB-RECIPIENT'S suspension of its pursuit of the PROJECT. C. In the event the CITY elects to terminate this Agreement or to suspend payments, for any reason stated hereinabove in paragraph A and B of this Section IX, it shall notify the SUB-RECIPIENT, in writing, of such action, specifying the particular deficiency, at least five (5) working days in advance of any such action and establishing a time and a place for the SUB-RECIPIENT to refute the alleged deficiency at a time prior to the CITY'S taking such action. After allowing the SUB-RECIPIENT the opportunity to refute or correct the alleged deficiency, if the alleged deficiency continues to exist, in the reasonable opinion of the CITY, the CITY may withhold payment of the Grant Funds until such time as the violation or breach is remedied. No action taken or withheld by the 7 CITY under this paragraph shall relieve the SUB-RECIPIENT of its liability to the CITY for any funds expended in violation of any of the terms of this Agreement. D. Unless terminated pursuant to the provisions of paragraph IX herein, this agreement shall terminate on October 31,2013. X. REMEDIES A. To the fullest extent permitted by law, SUB-RECIPIENT agrees to and shall indemnify, defend and hold harmless the CITY, its officers, employees, boards and commissions from and against any and all claims, suits,judgments, costs, attorneys fees, damages or any and all other relief of liability arising out of or resulting from or through, or alleged to arise out of, any breach of this agreement; misuse or misapplication of funds derived pursuant to this agreement by SUB-RECIPIENT; violation of any statutes, rules and regulations, directly or indirectly, by SUB-RECIPIENT and/or any of its agents or representatives; or any negligent acts or omissions of SUB-RECIPIENT or of SUB- RECIPIENT'S officers, employees, agents or subcontractors. In the event of any action against the CITY, its officers, employees, agents, boards or commissions covered by the foregoing duty to indemnify, defend and hold harmless, such action shall be defended by legal counsel of the CITY'S choosing. The provisions of this paragraph shall survive any termination and/or expiration of this Agreement. B. In the event of loss of approved Grant Funds for the PROJECT as a result of any violation or breach of this Agreement by the CITY, misuse or misapplication of funds received from HUD unrelated to the PROJECT, or any violation of the statutes,rules and regulations of HUD, directly or indirectly, the CITY and/or any of its agents or representatives, the CITY'S liability to SUB-RECIPIENT shall be limited to any funds which have previously been provided to SUB-RECIPIENT pursuant to this agreement. SUB-RECIPIENT hereby waives and releases the CITY from any and all other liability pursuant to any such breach, misuse, misapplication or violation of statutes, rules or regulations. C. In the event HUD, or any other federal agency,makes any claim which would give rise to invoking the remedy provisions, as set forth in paragraphs A or B of this Section X, then the CITY or SUB-RECIPIENT shall immediately notify the other party, in writing, providing the full details of the alleged violation. To the extent that any such matter is not subject to exclusive federal jurisdiction, venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this Agreement between the CITY and SUB-RECIPIENT shall be in the Circuit Court of Kane County, Illinois. D. In addition to any other remedies available to the CITY, if the CITY has lost or been prevented from receiving any federal funds, including but not limited to the Grant Funds, as a result of any alleged violation of law or other breach of this Agreement by SUB- RECIPIENT, or if SUB-RECIPIENT otherwise fails to comply with any term of this award or Agreement, the SUB-RECIPIENT shall repay, upon demand by the CITY, such amount of Grant Finds previously disbursed or allegedly due to the SUB-RECIPIENT. 8 XI. TIMELINESS A. Time is of the essence of this agreement. SUB-RECIPIENT shall meet the schedule deadlines listed below. Any milestone which the SUB-RECIPIENT does not achieve within two months of the date listed will result in the SUB-RECIPIENT submitting a revised implementation schedule for approval by the City's Community Development Staff. Failure to achieve these deadlines may result in the loss or reduction of grant funds at the CITY'S discretion. Milestones Date 1. Provide Emergency Shelter June 1, 2011-May 31,2012 2. Provide Case Management June 1,2011-May 31, 2012 3. Rental Reimbursement June 1, 2011-May 31,2012 B. Total Number of Months Required for Project Completion 12 Months XII. MISCELLANEOUS PROVISIONS A. AMENDMENTS - This Agreement constitutes the entire Agreement between the parties hereto. Any proposed change in this Agreement shall be submitted to the other party for prior approval. No modifications, additions, deletions, or the like, to this Agreement shall be effective unless and until such changes are executed, in writing, by the authorized officers of each party. B. SUBJECT TO FINANCIAL ASSISTANCE AGREEMENT - This Agreement is made subject to financial assistance agreements between the CITY and the United States Department of Housing and Urban Development, with the rights and remedies of the parties hereto being in accordance with any such agreements. C. ASSIGNMENT - except as provided in Section VI hereof, SUB-RECIPIENT shall not assign this Agreement or any part thereof and SUB-RECIPIENT shall not transfer or assign any Grant Funds or claims due or to become due hereunder, without the written approval of the CITY having first been obtained. D. ATTORNEY'S OPINION - If requested, SUB-RECIPIENT shall provide an opinion of its attorney, in a form reasonably satisfactory to the CITY, that all steps necessary to adopt this Agreement, in a manner binding upon SUB-RECIPIENT, have been taken by SUB-RECIPIENT, and that SUB-RECIPIENT is in compliance with applicable local, state and federal statues, rules and regulations for the purpose of complying with this Agreement. E. HEADINGS - The section headings of this Agreement are for convenience and reference only and in no way define, limit, or describe the scope or intent of this Agreement, and should be ignored in construing or interpreting this Agreement. 9 F. The terms of this agreement shall be severable. In the event any of the terms or provisions of this agreement are deemed to be void or otherwise unenforceable for any reason,the remainder of this agreement shall remain in full force and effect. G. This agreement shall not be construed to create a joint venture, partnership, employment or other agency relationship between the parties hereto. H. Venue for the resolution of any disputes or the enforcement of any rights between the parties hereto arising out of or in connection with the terms and provisions of this Agreement shall be in the Circuit Court of Kane County, Illinois. IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the dates recited below. CITY OF ELGIN, an Illinois Municipal Corporation BY: Sean R. Stegall, Ci anager DATE: March 20, 2013 ATTEST: Kimberly Dewis, City Clerk SUB-RECIPIENT: Wayside Cross Ministries 1732 Berkley Street, Elgin, Illinois, 60123 BY: ( � � Phil Wood,Executive Director Wayside Cross Ministries DATE: ATTEST: / ja, ---- ----------- OFFICIAL SEAL SANDRA L KOLBA NOTARY PUBLIC-STATE OF ILLINOIS MMISSION EX MY COMMISSION 10 EXHIBIT A SUB-RECIPIENT'S 2011-2012 CDBG APPLICATION 11 PROPOSAL APPLICATION FOR CDBG FUNDING: u THE COMMUNITY DEVELOPMENT BLOCK GRANT(CDBG) JAN 2 7; ZDti ENTITLEMENT PROGRAM FISCAL YEAR 2011 By JUNE 1,2011 THROUGH MAY 31,2012 Organization Name: r USlD Ckc>sg I11f S, tS Project Name: _DA y�Ycs= CIE-"1 EQ Project Address: L' ! 7 3 a 1SFK K LZ ` Exec Director Name: �4 WAD P b Address: 1- 6I�, 1L ,% o 1�3 Telephone#: -� 5- L- � S Fax#: FV 7 - 9S- 4 652 Email Address: W oa lWA`Irl PE'C -f-T.ak.6 Website (if applicable): to W 0. wyysipgr G2os1. 02 y Employer(IRS) ID#: DUNS#: Contact Name: Title: Contact Telephone#: Fax#: Contact Email: Website(if applicable): PROJECT FUNDING REQUEST CD Funds Requested 1 $ L7S 060. nding Leveraged from other Sources $ e, Check the category,which describes the type of funding, requested: QHousing l' �blic Facility InfraDcture ❑Economic Development Xublic Service OtheD BRIEF PROJECT DESCRIPTION: Please provide a one-sentence statement about you r rp oiect—not your organization. W E �2-E SEnvaG Elm J6 23 D"i E"--, 'PEr+,l�r= C IDsTS Z:>F SIB 1_L-prf1 r46 s Py4 C` i lto&\ •v-r,ji,S, City of Elgin CDBG FY 2011 Application Page 1 CONSTRUCTION PROJECTS ONLY Public Improvements/Construction Activity Application Form Project Name/Title: Agency Name: Agency Address: City: State: Zip. 1.Project Description (Attach additional sheets as necessary.) a. Provide a detailed description of the facilities to be provided or improved. Identify major components of proposed work and state estimated quantities: b. Indicate the-primary function of the facilities to be provided or improved: c. Readiness to Proceed: (i) Do you have an architect/engineer under contract? If so provide name. Yes No (ii) Do you have preliminary plans/drawings completed (If so,attach)? Yes No (ii) Do you have project cost estimates completed (if so attach)? Yes No (using Davis Bacon Wage Rate and Labor Standards) Please note that any costs incurred prior to the award and environmental review process cannot be reimbursed to the applicant. e. Provide evidence of site control.Copy of the deed. If property is not owned provide a copy of the lease. Agreement and letter from owner approving proposed work. City of Elgin CDBG FY 2011 Application Page 2 P � CONSTRUCTION PROJECTS ONLY 2. Project Location: a. Project Address/Location: (Include photographs) Census Tract(s): Block Group(s): b. Indicate if the project is located in,or will have any impact on,the following: (Please indicate Yes or No) (i) National Register Historic District (ii) Designated Wetlands Area (iii) Land Use/Zoning Change Yes No Yes No Yes No If yes,explain: If yes, explain: If yes, explain: (iv) Environmental Hazards Yes No If yes, explain: c. Provide a time line for the project and current status of project progression: Construction Bid Period: Start Date: Completion Date: jStatus: I 3. Project Benefit: (Attach additional sheets as necessary.) a. Describe the existing problems or conditions to be corrected by the proposed activity. Identify the persons affected by these conditions. Explain how the project benefits low and moderate income people. b. Describe in quantifiable terms the goals to be achieved by your project during the proposed funding period, and how the recipients of your services will be benefited or changed. City of Elgin CDBG FY 2011 Application Page 3 City of Elgin CDBG Construction Application FY201 1 Application Page 2 CONSTRUCTION PROJECTS ONLY Project Budget Rz- �; - 5 F 0T1lER NON OTHER FEDERAL - ACTiYITYl CDBG Funds# _ - TOTAL � FEDERA .._ _ - >. x� L Ft)A1DS RINDS,. - _ Acqu�srtionJcosts ,. _.: .,.i. < Jam, _ Land $0.00 Existing structures $0.00 Other acquisition costs $0.00 Site�llL ork�nof`�riconstruciJOn,confract) Demolition/clearance $0.00 Other site costs $0.00 Gbn cLor►/Protect]rr►proveme�t C _, New Construction $0.00 Rehabilitation $0.00 Performance bond premium $0.00 Construction contingency $0.00 Other $0.00 Architect Fees $0.00 Engineering fees $0.00 Other A&E fees $0.00 -z. �? st��.,�RV �—_,",,ra '3 r.:- T-�' "'��`-.—'L.c -ti- e"�- -s� --Y. =•rte'T Appraisal fees $0.00 Survey $0.00 Soil boring/environmentaVLBP evaluation $0.00 Tap fees and impact fees $0.00 Permitting fees $0.00 Legal fees $0.00 Other $0.00 u isc`e#ianeflus-Costs Developer fees $0.00 Project reserves $0.00 Relocation costs $0.00 Marketing/management $0.00 Operating $0.00 Taxes $0.00 Insurance $0.00 Other $0.00 _OT R--- 5 111170s 'The line items in column Aare a guide. Items may be added or deleted depending on the type of project_ City of Elgin CDBG FY 2011 Application Page 4 CONSTRUCTION PROJECTS ONLY 1. Construction Procurement Guidelines for private non-profit construction projects All construction contracts in excess of$2,000 will be subject to federal Davis-Bacon Wage Rates and Labor Standards provisions.A schedule of current prevailing wage rates and fringe benefits is available at the Illinois Department of Labor at www.state.il.us\agencv\idol\rates\evenmo\kane9999.htm . $X $24'999` Projects between$1-$24;999 do riot have to be publicly advertised.A�sohcitatian of three written quotes a is required. Federal:`requirements :for:Davis-Bacon:Wage .Rates and Mi onty and Women Business gnterpnse Participation jMB:E/WBE)comliance will bye aLpplicable; Fe� deral Section 3 GyjlElginIVfrn Workforce Requirements aFe:rio fp �le for contracts •a.ce 6.0 3 under:$1QQ,000. The: lowest .qualified. bid represe (rung the yornlete scope o work from a. QLIED CONTRACTOR wilt be corisidered. $25,000-$99,999 Projects over $25,000 require Newspaper Advertisement Public Solicitation of Contractor- Bids in Elgin Standard Times. Federal requirements for Davis -Bacon and Minority and Women Business Enterprise Participation (MBE/WBE) compliance will be applicable. Federal Section 3 and City of Elgin Minority Workforce Requirements are not applicable for contracts under$100,000. The lowest qualified bid representing the complete scope of work from a QUALIFIED CONTRACTOR will be considered. $100,000+ Projects over $100,000 require Newspaper Advertisement Public Solicitation of Contractor Bids in Elgin Standard Times. Federal requirements for Davis -Bacon and Minority and Women Business Enterprise Participation (MBE/WBE)compliance will be applicable. Federal Section 3 and City of Elgin Minority Workforce Requirements will be applicable for contracts over $100,000. Bond Requirement—100% Payment and Performance Bonds. The lowest qualified bid representing the complete scope of work from a QUALIFIED CONTRACTOR will be considered. City of Elgin CDBG FY 2011 Application Page 5 1. PROJECT ELIGIBILTY SECTION A. This project is located in Census Tract(s) (Identify tract by number) (website—Factfinder.census.gov) B. This project meets at least ONE of the HUD national objectives listed below(please check all applicable; discussion and dew ft`- o aoif bfe on page goy tl%e RFP pac eta, 1. Benefits low/moderate income individuals/households 2.Addresses the prevention or elimination of slums or blight 3. Meets a particularly urgent community development need. C. Check all statements that describe HOW this project or activity meets one of the National Objectives above: O LIM Area Benefit. the project meets the identified needs of L/M income persons residing in an area where at least 51% of those residents are L/M income persons. The benefits of this type of activity are available to all persons in the area regardless of income. Examples: street improvements, water/sewer lines, neighborhood facilities, facade improvements in neighborhood commercial districts. LIM Limited Clientele: the project benefits a specific group of people (rather than all the residents in a particular area), at least 51%of whom are L/M income persons.The following groups are presumed to be L/M: abused children, elderly persons, battered spouses, homeless, handicapped, illiterate persons. Examples: construction of a senior center, public services for the homeless, meals on wheels for elderly, construction of job training facilities for the handicapped. ❑ LIM Housing: the project adds or improves permanent residential structures that will be occupied by L/M income households upon completion. Housing can be either owner or renter occupied units in either one family or multi-family structures. Rental units for L/M income persons must be occupied at affordable rents. Examples: acquisition of property for permanent housing, rehabilitation of permanent housing, conversion of non-residential structures into permanent housing. ❑ LIM lobs: the project creates or retains permanent jobs, at least 51% of which are taken by L/M income persons or considered to be available to L/M income persons. Examples: loans to pay for the expansion of a factory, assistance to a business which has publicly announced its intention to close w/resultant loss of jobs, a majority of which are held by L/M persons. ❑ MicroEnterprise Assistance: the project assists in the establishment of a microenterprise or assists persons developing a microenterprise. (A microenterprise is defined as having five or fewer employees, one or more of whom owns the business.) This activity must benefit low/moderate income persons, area or jobs as defined in previous sections. NOTE: List is continued on the following page... City of Elgin CDBG FY 2011 Application Page 6 ❑ Slum or Blighted Area: the project is in a designated slum/blight area and the result of this project addresses one or more of the conditions that qualified the area. ❑ Spot Blight: the project will prevent or eliminate specific conditions of blight or physical decay outside a slum area. Activities are limited to clearance, historic preservation, rehabilitation of buildings, but only to extent necessary to eliminate conditions detrimental to public health and safety. Examples: historic preservation of a public facility threatening public safety, demolition of a deteriorated, abandoned building. D. Project Category[check one]: ❑ Acquisition of Real Property ❑ Disposition of Real Property 1 Public Facilities and Improvements (e.g., homeless shelter, water and sewer facilities, flood and drainage improvements, fire protection facilities/equipment, community, senior and health centers, parking, streets, curbs,gutters and sidewalks, parks and playgrounds.) ❑ Privately-Owned Utilities Public Service (i.e.,a new service or an increase in the level of a service) ❑ Relocation Payments and Assistance to Displaced Persons ❑ Removal of Architectural Barriers, Handicapped Accessibility ❑ Housing Rehabilitation ❑ Historic Preservation ❑ Commercial or Industrial Rehabilitation, including facade improvements and correction of code violations. ❑ Special Economic Development or assistance to micro-enterprises. City of Elgin CDBG FY 2011 Application Page 7 2. IMPACT ON CONSOLIDATED PLAN PRIORITY NEEDS The Five-Year Consolidated Plan identifies both priority needs in the community and strategies to address these needs. The need for your proposed project will be determined by identifying how the project impacts upon the adopted Consolidated Plan Priority Needs. Therefore,applications should provide a clear explanation of how the project impacts upon the adopted Consolidated Plan Priority Needs. Greater consideration will be given to projects that provide a clear description of the project with supporting data and methodology of how the project will meet the Consolidated Plan Priority Needs. Please identify the category and activity applicable to your proposal, using that table as your guide: Example: Public Services Activity: Youth Transportation 'Homelessness Activity r40 Tftk1 ) 4 ❑Infrastructure Activity ❑Affordable Housing Activity ❑Public Facilities Activity ❑Planning&Capacity Building Activity PROPOSED PROJECT ACCOMPLISHMENTS Please briefly describe proposed accomplishment(s) if funding is awarded: (Accomplishments must be described in terms of households served, people served, businesses created, housing units created,jobs created or public facilities undertaken. Example: This program will serve 485 LMI individuals, this program will create 25 jobs, etc.) PROPOSED ACCOMPLISHMENTS: OE W lu, S'ra4 E o-i m '3--- PEo o LE rr P2o u ,o, ,4 6 tA t'A L5 S Ec.,(LE c-acxe2S c-A�rv4�r lr,��,�� T,rrl', p/ Y,FM F sr CLI-M C'0Vr4SeitsJi. INTFAr'£T R« Esr A14-tj t= X60-UlGES qs✓p A-IJ �ODIC Est ' ?a D/L-- Please answer the following questions: A. What is the total estimated number of persons to be served by this project? 00 B. What is the total estimated number of LMI persons to be served by this project? 39 0 C. What is the anticipated percentage of LMI persons to be served by this project? )oo City of Elgin CDBG FY 2011 Application Page 8 4. ACTIVITY DESCRIPTION: -- Please answer the following questions in the space provided. A. Provide a detailed description of the proposed activity including how the activity will address the community need you have indicatedAdentify whether the activity is new,ongoing,or expanded from previous years. C owe_ U\Jz !o , i P C>yv`e (,If f L�l;41, kn ees f S G,l-,47,;� �o Clte�r �n'�►,�¢, . `��o r e S�-�"✓� ct� �c Q,�c�✓e ss -� U.c e � j� 6 �P i* c� n� � CpjvlSe r,t B. Identify who will.benefit from the proposed activity (e.g. homeless, youth, seniors, disabled, et cetera). If designed to benefit persons of L/M income, describe the process you will use to identify these persons and ensure that the activity meets this objective.(Art LMI certification form is included in the RFP Packet). V" C . Se v i&C_ -('1.� ��r,-�c. (.e f-f �- u to��P �o c�e d �v✓' ...'�1z� �(� �e J! �;�C.%..��c� C Identify the accomplishments you intend to .achieve with 'this activity. Provide an activity timeframe/schedule (include start,completion dates,and other significant stages). 47,, its City of Elgin CDBG Application FY 2011 Application Page D. Identify any other agencies/partners in this activity and define the roles and responsibilities of these partners. J oy� 6P- E. Demonstrate that the proposed activity is economically feasible and can be implemented in a timely cost-effective manner within the proposed program year. F. Oftentimes projects that receive an award of CDBG funding are actually awarded less than the amount originally requested. This requires the submission of.a revised budget and a description of how it will carry out the proposed activity with reduced funding prior to the commitment of any funding. Please indicate here whether your proposed activity could be undertaken with a reduced commitment of funding and if so, please highlight how that would affect the scope of services you are proposing. w�:�( She �•�� ,�.-.�� /-'cam-<S�y �-d.��� City of Elgin CDBG Application FY 2011 Application Page BUDGET DETAIL This section provides back-up for each line item shown in the Budget Summary Chart. Please make certain this detailed breakdown is consistent with the Program Budget. Round up to the nearest hundred. Please note: A job description for each person must be provided. A Note about the Staff/Salary Breakdown: Please show all proposed staff positions funded with CDBG funds that relate to the proposed activity. If multiple staff members have the same position/title, list separately(For example: Counselor 1, Counselor 2). Use an additional sheet if necessary. You must submit lob descriptions with your application for each position title identified below. Is this a Annual Total %Time Spent on Total Position Position current or Annual x = Title proposed Salary Fringe Annual this CDBG Cost Requested position? Benefits Salary Project/Program from CDBG Example Current $25,000 $5,00'0 $30,D170 x 40% $22,000 £nse manager X = X = ..4 x = X = X _ X = A. Oftentimes projects that receive an award of CDBG funding are actually awarded less than the amount originally requested. This requires the submission of a revised budget and a description of how it will carry out the proposed activity with reduced funding prior to the commitment of any funding. Please indicate here whether your proposed activity could be undertaken with a reduced commitment of funding and if so, please highlight how that would affect the scope of services you are proposing. City of Elgin CDBG FY 2011 Application Page 1 1 Conflict of Interest The standards in OMB Circular A-110, Subpart C, provide that no employee, officer, or agent.shall participate in the selection, award, or administration of a contract supported by Federal funds-if a real or apparent conflict of interest would be involved.Such a conflict would arise when an employee,officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein,has a financial or other interest in the firm selected for an award. The CDBG regulations at 24 CFR 570.611 and HOME regulations at 24 CFR 92.356 provide that no person who is an employee, agent, consultant, officer, or elected official or appointed official of the recipient or subrecipient that -are receiving CDBG or HOME funds and (1) who exercises & has exercised any functions or responsibilities with respect to activities assisted_with CDBG funds; or (2) who is in a position to`participate in a decision-making process or gain inside information with regard to these activities; may obtain a financial interest from a CDBG- assisted or HOME-assisted activity, or have any interest in any contract, subcontract; or agreement with respect thereto,or the proceeds thereunder,either for themselves or those with whom they have family or business-ties, during their tenure or for one.(1)year thereafter. A disclosure of the nature of any perceived or actual conflict must be made prior to the execution of agreements utilizing CDBG or HOME. IF-NO CONFLICT EXISTS,COMPLETE THE FOLLOWING: I certify that no c flict.of igtgrest exists between the City of Elgin and (name of organization) ® - l certify that no conflict of interest exists between the subcontractors of and(name of,organization)- IF A POTENTIAL CONFLICT EXISTS, COMPLETE THE FOLLOWING: ❑ I certify that a potential conflict of interest may exist between the City of Elgin and (name of organization) ❑ I certify that a potential conflict of interest may exist between (name of subcontractor) and(name of organization) Describe the nature of the conflict of interest below. Identify the-individual,employment and the conflict or potential conflict,and their affiliation with your organization. JP Signature of Authorized Agency Official Date 4 F 1-7&-U Typed Name and Title Ci,y of Elgin CDBG Application FY 2010 Insfiucfions Page 27 A. THRESHOLD CERTIRCATION In order for your application to be accepted, in addition to the application itself, your organization must submit the following items to the Office of Housing and Community.Development no later-than 5:00 PM on DECEMEBER 15.2010. ❑ An original application with all questions completed along with-one copy that is 3-hole punched and clipped [not bound] of the completed application. (Only the original must include the requested support documents such as the articles of incorporation and the current list of your Board of Directors.) ❑ The following attachments/certifications:(if you have not submitted an application in the last two years OR if the information has changed) ❑ Articles of Incorporation ❑ Current List of Board of Directors ❑ Certified Organization Audit/Financial Statements of most recent year a. Copy of OMB A-133 Audit (Required if $300,000 in aggregate Federal funds expended), or b. Financial statements audited by a CPA(only if not qualified for A-133),or C. Profit and Loss Statement for most recently completed fiscal year and General Ledger printout(only first time applicants or those who do not meet above criteria may submit) j IRS 501(c)(3)Designation Letter(Pending letters will not be accepted) ❑ Current Fiscal Year Agency Budget,including all funding sources ❑ lob Descriptions per budget detail. ❑ An.Executed Statement of Applicant Form. ❑. An Executed Signature Authorization Form. ❑ Conflict of Interest Disclosure Form. - 1 . I hereby confirm that this packet contains all Materials required. Signature and PrinFt2d Name . Authorized Signer / City of Elgin CDBG Application FY 2011 Application Page 28 B.STATEMENT OF APPLICANT The undersigned acknowledges the following: 1. That, to the best of its knowledge and belief, all factual information provided is true and correct and'all estimates are reasonable. 2. That no revised proposals/applications may be made in connection with this application once the deadline for applications has passed. 3. That the City of Elgin-may request or require changes in the information submitted, and may substitute its own figures, which it deems reasonable for any or all figures provided. That the applicant.will participate in required interview for project assessment and cooperatively assist in the review process. 4. That,if the project(s)is recommended and approved by the Mayor and City Council,the City reserves the right to reduce and/or cancel the allocation if federal entitlements are cancelled,reduced,or rescinded. 5. The City of Elgin reserves the right not to fund any submittals received. 6. By submission of this application,the organization agrees to abide by the federal regulations applicable to this program. 7. That, if the project(s) is funded,the organization agrees to abide by the City's locally established policies and guidelines 8. That past program and financial performance will be considered in reviewing this application. 9: That services are to be provided at no cost to citizens during the grant period: All program income(Le:fees, repayments,foreclosures,etc)must be remitted to the City. Id. That, if the project(s) is funded,the City or a designated agency may conduct an accounting system inspection to review internal controls, including procurement and uniform administrative procedures, prior to issuance of payments for projected expenditures. 11. That, if project(s)is funded,the City will perform an environmental review prior to the obligation of funds. 12. That, if a project is funded, a written agreement that includes a statement of work, records retention and reporting, program income procedures, local and federal requirements, circumstances that would trigger grant suspensions and terminations, and reversions of assets would be required between the organization and the City. . 13. That 2 project's funding does not guarantee its continuation in subsequent action plans. 14. Provide written signatory authority from the organization's goveming body indicating who can execute contracts and amendments on its behalf. Statement of Applicant continued on following page. City of i lgin CDBG Application FY 2011 Application Page 29 15. Agrees to abide by the City of Elgin's Conflict of Interest policy. Items of concern would include staff members serving on the Board of Directors, staff members' families serving on the Board of Directors, and other matters that may give the appearance of a conflict of interest. O. o. . , U.S. Code Title 18,Section 1001, provides that a fine of up to $10,000 or imprisonment for a period not to exceed five years,or both,shall be the penalty for willful misrepresentation and the making of false,fictitious statements, knowing same to be false. By signature below,the applicant acknowledges the above in its name on this day of rj✓Ar`t 2010D. sIo C Name of Organization By: (Signature) (Title) Wayside Cross. Ministries Board of Directors as of 11/16/2010 Officers John Ross,Chairnm Media Consultant,Daybreak Communications 327 Chestnut,Batavia,IL 60510-2715 H:6301879-2583 Michael R.McKenna, Vice Chairman - Owner,IDyns- ?low Corporation 1360 River Road,South Elgin,IL 60177 H:630/289-2621 dvnaftowcorp@gm2g.com Linda Kennedy,Secretary Edwards Hospital,Retired 312 Monterey Dr Bolingbrook;IL 60440 H: 630/739-4090 Rev.Stephen C.Rhodes,Treasurer Associate Pastor,First Presbyterian Church,Aurora 992 S.Hampton CL,Aurora,IL 6.0506 H:630/897-7559,B:640/8440050;C:630/947-2141 Executives i` Wayne Greenawalt Exeeuive Direcinr, Wayside Cross Minisaies 215 E New'fork St,Aurora,IL 60505 B:6301892-4?39 JaxnesLukose AssociaieExecu&e Director, Wayside Cross VI-Inis€ries 215 E.New.York St,Aurora,H.60:405 B: 630/892-4239 Active Directors Michael R.Armstrong lead Software.Engineer,Motorola,Inc. 5 North Commonwealth Road;Aurora,IL 60506 H;630/897-2899;B:847W5-7917 Thomas Boerne Former Pastor 1939 Phaeton Ct,Naperville.,fL 60565 H:630/848-0705 Sandra D.Fulton CPA, Office Max 7,409 Clifton Court,Naperville,IL 60565-3343 H:6301579-6108 Georgia Gordon 192 N Kendall St,Aurora,IL 60505 Evelyn Guerrero 2243 Innisbrcok C4 Aurora,E, 60504-3239 H 6361851-5399 Tom Hartman 1050 P-douticeuo Dr, Aurora,IL 600506 Robert C.Marlatt Regional Vice President,Allied Solutions,LLC 40 Cedar Gate Cir,Sugar Grove,IL 60554-4205 H:630/466-7954 B:630r?9MI76 Cell:630/450-0373 rob.marlatt aallied solutions.net Mary Lou Molter Community Relatitins Director,Little Friends R 10330 Helene Avenue,Naperville,IL 60564-8069 H:63019044776 Peter Pabon Former Senior Vice President Bank of America 4N116 Longfellow Pl Saint Charles,IL 60175 H 630/513-9926 Jeffrey Roberts Owner,J.S.Roberts Accounting (H)832 Liberty Avenue,St.Charles,IL 60174 H:630/377-3375 (B)800 West Fifth Avenue 1205,Naperville,IL 60563 B: 6301357-6667 Keith Schauer Business Owner CAB Corp 3N182 Campton Wood Dr, Elburn,EL 60119-8824 630/513-4632 Julian Spencer Pastor,Main,ST.Baptist Church 814 E Galena Blvd.Aurora,IL 60505 630-898-7727 Mark Todor 424 Ridgewood Ave.Glen Ellyn,IL,60137 B:773/251.3015 Ruth Wagner Retail sales& merchandising RL 1112 S.E.River Drive,Montgomery,IL 60538-1345 13:630/896-6643 William Wallbaum Counselor,West karora High School RL 2310 Wyckwood Drive,Aurora,IL 605064430 H:630/892-4481 Thomas B.Wells Financial Advisor,Wells Roselieb chi Associates 1519 Richter Drive,Batavia,IL 60510-9283 H:630/482-9809;B:6301575-5050 Craig Zimmerman, Ph.D.,Professor Emeritus,Aurora University x 123 S.Commonwealth Avenue,Aurora,IL 605064815 H:630/896-4925 B:630/8445296 Honorary Directors Ralph Brooker Director,Men's Division,Wayside Cross 13a 317 East Ashland Avenue,Aurora,IL,60505: P.G.Boa 4044,Aurora,IL 605074044 H:630/896-7967 George Clark Vice President,Dicks Vending ER 449 West Downer Place Apt.304,Aurora,IL 605064182 I$:630/896-5104 C. Eel Elias Personnel Manager,Richards-Wilcox" 28 Garden Drive,Montgomery,IL 60538-2202 H: 6301892-2289 J.Keith Gibson , President,Freedom Financial Services u 1051 California Avenue,Aurora,IL 60506-2001 H:630897-3453 Ray G.Gonzalez Owner,The Action Company,Real Estate g 12 Birchwood Ct,Sugar Grove,IL 60554 H: 6301554-1013 Darrell L.Jordan Attorney,private practice'O (M 244 Berwick Drive,Aurora,H,60506-4402 H:630/892-4712 � (B)6 West Downer Place,Aurora,IL 60506 B:630/897-1534 Ray M.Lidecka Assistant Manager,Ace Hardware H 214 East Arrowhead Street,North Aurora,IL,60542-1329 R:630/892-7724 James E.A ilier personnel Manager,ALLSTEEL xu 1143 Canterbury Court,Galesbaro,EL 61401-9400 H:309/343-0692 Roger IL Parolini Director of Endowment,Aurora University xH 238 South Randall Road,Aurora,IL 605064729 H:630/892-9555;B:630/844-548 V.Allen Senter Department Manager,AT&T m3 1031 L,indenwood Drive,Aurora,IL 60506-5730 H:630/896-6043 Aden E. Swiuehamer Purchasing Agent,Aurora Metal Company RH 3206 Lake Stream Drive,Kingwood,TX.773394607 Retired=R Honorary=H Blue=Executive Committee Red=Honorary Members Green=Executives(Ea-officio) IRSDepmtrnant of the 7�easury - [nteras]ti r't Scrdca P.Q. Box 2508, Room 4010 In reply refer to: 4077550277 Cincinnati OH 45201 ' Nov. 19, 2010 1.TR 416BC 0 36-2167950 000000 00 00032816 BODC; TE WAYSIDE CROSS MINISTRIES FOR NOT FOR PROFIT 215 E NEW YORK ST AURORA IL 60505-3400 23561 Employer Identification Number: 36-2167950 Person to Contact : Ms Benjamin Toll Free Telephone Number: 1-877-829-5500 Dear Taxpayer: This is in response to your pug: 26, 2010, request for information regarding your tax-exempt status. Our records indicate that you were recognized as exempt under section 501(c) (3) of the Internal Revenue Code in a determination letter issued in December 1935. Our records also indicate that you are not a private foundation within the meaning of section 509(a) of the Code because you are described in section(s) 509(a) (1) and 170(b) (1) (A) (i) . Donors may deduct contributions to you as provided in section 170 of the Code. Bequests, legacies, devises, transfers, .or gifts to you or for your use are deductible for Federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code. Please refer to our website www.irs.gov/eo for information regarding filing requirements . Specifically, section 6033(1) of the Code provides that failure to file an annual information return for three consecutive years results in revocation of tax-exempt status as of the filing due date of the third return for organizations required to- file. We will publish a list of organizations whose tax-exempt status was revoked under section 6033(3) of the Code on our website beginning in early 2011 . 4077550277 Nov. 19, 2610 LTR 41680 0 36-2167950 009000 00 F 00032817 sf WAYSIDE CROSS MINISTRIES FOR NOT FOR PROFIT 215 E NtbW YORK ST AURORA IL 60505-3400 If you have any questions, please call us at the telephone number shown in the heading of this letter. Sincerely yours, Cindy Thomas Manager, ED Determinations WAYSIDE CROSS MINISTRIES FINANCIAL STATTAIENTS AS OF AUGUS= ox. 2. 10 AND TOGETHER VqM AUDIT'OR'S REPORT I Dugan&L9p4gSa Certified Public Accountants&Consultants ` A Professional Corporation `. 104 East Roosevelt Road Michael J.Dugan Wheaton,Illinois 6oir 1'.Brett Flickinger Jerry L. (630)663- Karen M.Olson Mark R Schultz Fax(&V)663-5030 Hugh E Elliott Peter J.Zich wwwAuganlopatka.com Leo M Misdom e-mail:infoo-duganlopatka.com Gwen S.Henry INDEPENDENT AUDITOR'S REPORT To the Board of Directors of Wayside Cross Muristries: We have audited the accompanying statement of financial position of Wayside Cross Minis es (the Organization) as of August 31, 2010 and 2009, and the related statements of activities, cash flows and functional expenses for the years then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these fmcial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those: standards require that we plan and perform the audit to obtain reasonable f assurance about whether the financial statements are free of material micctat ent. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the accompanying financial,statements referred to above present fairly, in all material respects, the financial position of Wayside Cross Ministries as of August 31, 2010 and 2009, and the changes in its net assets and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America. DL All&LOPATKA Wheaton, Illinois December 8, 2010 i AFi117ni'i IMPACT INTERNATIONAL NETWOYIC OF 20FESSIONAL ACCVJNTANTS WAYSIDE CROSS MINISTRIES STATEMENT OF FINANCIAL POSITION AUGUST 31. 2010 AND 2009 ASSETS 2009 2010 (Restated) CURRENT ASSETS: Cash and cash equivalents $ 536,892 $ 647,848 Promises to give, current maturities 347,900 - Other receivables 3,562 3,265 Investments 1,545,270 1,901,370 Inventory 64,369 56,886 Prepaid expenses and other assets 47,203 32,787 Total current assets 2,545,196 2,642,156 PROPERTY AND EQUIPMENT: Land 127,027 127,027 Buildings and improvements 4,124,934 4,019,468 Vehicles 150,003 150,003 Furniture and equipment • 661,681 658,721 Total property and equipment 5,063,645 4,955,219 Less-Accumulated depreciation (3,213,015) (3,024,406).. Net property and equipment 1,850,630 1,930,813 OTIM ASSETS: Investments - Endowment 46,605 40,661 Promises to give, net of current maturities 78,770 - Cash surrender value of life insurance 96,423 99,403 Deferred development costs 338,843 235,233 Total other assets 560,641 375,297 S 4,956,467 $ 4,948,266 The accompanying notes are an integral part of this statement. EXHMTr 1 F t LTABII-rM AND NET ASSETS 2009 2010 (Restated} LIABYLI'1'IES: Accounts payable and accrued expenses S 37,955 $ 38,719 Annuity obligation 5,729 8,249 Total liabilities 43,684 46,968 COMMT£MENTS NF ASSETS: Unrestricted - Undesimmd 2,657,224 2,739,257 - Board designated 1,752,018 2,093,948 Temporarily restricted 454,541 19,343 Permanendy restricted 49,000 48,750 . Total net assets 4,912,783 . 4,901,298 $ 4,956,467 S 4,948,266 )1XHIBIZ2 Page 1 of 2 WAYSIDE CR SS MR41STRIES STATEMENT OF ACI'NITI .S FOR THE YEAR ENDED AUGUST 31 2010 Temporarily Permanently Unrestricted Restricted Restricted Total SUPPORT AND REVENUE: Contributions $1,069,591 $ 500,864 $ 250 $ 1,570,705 Bequests 90,446 - - 90,446 In-kind contributions 1,310,949 - - 1,310,949 Store income 495,149 - - 495,149 Investment income 69,244 - - 69,244 Other revenue 142,639_ - - 142,639 Total support and revenue 3,178,018 500,864 250 3,679,132 RECLASSIFICATIONS: Net assets released upon satisfaction of purpose restrictions 65,666. (65,666) - - Net support and revenue, 3,243,684. 435,198 250 .3,679,132 EXPENSES: Program services - Master's Touch Men's Ministry 511,605 - - 511,605 Lifespring Women's Ministry 677,360 - - 677,360 Hope Outreach Ministry 1,029,559 - - 1,029,559 Urban Youth Ministry 198,637 - - 198,637 New Life Corrections Ministry 136,229 - - 136,229 The Wayside Center 478,137 - - 478,137 Development 346,196 - - 346,196 Administrative and general 321,277 - - 321,277 Total expenses 3,699,600 - - 3,699;000 OTHER CHANGES TN NET ASSETS: Unrealized gain on investments 31,353 - - 31,353 CHANGE M NET ASSETS (423,963) 435,198 250 11,485 NET ASSETS, Beginning of year 4,833,205 19,343 48;750 4,901,298 NET ASSETS, End of year $4,409,242 $ 454;541 $ 49,000 $ 4,912,783 The,accompanying notes are an integral part of this statement. EXHIBIT 2 Pagc of WAYSIDE CROSS MINISTRIES STATEMENT OF ACTIVITIES FOR THE YE AA ENDED AUGUST 31. 2009(R gta rd Temporarily Permanently Unrestricted Restricted. Restricted Total SUPPORT AND REVENUE: Contributions $1,196,948 $ 27,480 $ 175 $1,224,603 Bequests 1,347,085 - 1,347,085 In-kind Contributions 1,214,176 - 1,214,176 Store income 455,088 - - 455,088 Investment income 13,984 2,749 - 16,733 Other revenue 144,677 - - 144,677 Total support and revenue 4,371,958 30,229 175 4,402,36Z RECLASSIFICATIONS: Net assets released upon satisfaction of purpose restrictions 44,625 (44,625) - - Net support and revenue 4,416;583 (14,396) 175. 4,402,362 i EXPENSFS: Program services- Master's Touch Men's Ministry 654,183 - - 654,183 Lifespring Women's Ministry 649,616 - - 649,616 Hope Outreach Ministry 961,937 - - 961,937 Urban Youth Ministry 213,215 - - 213,215 New Life Corrections Ministry 103,888 - - 103,888 The Wayside Center 393,517 - - 393,517 Development 330,341 - - 330,341 Administrative and general 338,263 - - 338,263 Total expenses 3,644,960 - - 3,644,960 OTHER CHANGES IN NET ASSETS: Unrealized gain{loss)on investments 3,926 (2,749) (2,741) (1,564) CHANGE IN NET ASSETS 775,549 (17,145) (2,566) 755,838 NET ASSETS, Beginning of year 4,057,656 36,488 51,316 4,145,460 NET ASSETS,End of year $4,833,205 $ 19,343 $ 48,750 $4,901,298 Tne accompanying notes are an integral part of this statement. EMBIT 3 WAYSIDE(ROSS MINISTRIES STATEMENT OF CASH PLOWS FO THE V't=ARS ENDED At1t jja 31 2010 AND 2009 2009 2010 (Restated) CASH FLOWS FROM OPERATING ACTIVITIES: Change is total net assets $ 11,485 $ 755,838 Adjustments to reconcile change in total net assets to net cash provided by (used in)operating activities: - Depreciation 188,610 193,396 Loss on disposition of property and equipment - 6,228 Realized loss an investments - 72,697 Unrealized(gain) loss on investments (31,353) 1,564 Donated property and equipment - (3,500) Donated investments (8,743) - Restricted contributions (483,595) (21,790) Changes in assets and liabilities: (Increase)decrease in receivables (297) 14,693 (Increase)decrease in inventory. (7,483) 3,745 i (Increase) in prepaid expenses and.other assets (14,416) (20,036) (increase)decrease in cash value of life insurance 2,0180 (!4,361) Increase(decrease) in accounts payable and accrued expenses (764). 15.752 Net cash provided by(used in)operating activities (343,576) 1,004,26 CASH FLOWS FROM INVESTING ACTIVITIES: Payment of development costs (103,610) (149,946) Purchase of property and equipment .(108,427). (5,197) Proceeds from sale of property and equipment - 6,272 Purchase of investments (45,119) (995,054) Proceeds from sale of investments 435.,371 742,031 Net cash provided by (used in) investing activities 178,216 (401,894) CASK FLOWS FROM FINANCING ACTIVITIES: Contributions for purchasing equipment 56,925 21,794 Payments of annuity obligations (2,520) (3,548) Net cash provided by financing.activities 54,405 18,242 NET CHANGE IN CASH AND CASK EQUNALENTS (110,956) 620,574 CASH AND CASH EQUIVALENTS, Beginning of year 647,848 27,274 CASH AND CASH EQUIVALENTS, End of year $ 536,892 $ 647,848 . The accompanying notes are an integral part of this statement. EXHI.Q111'4 P.ttpe-1 aft WAY.SL r,CR.QSS HM.SIR ES $'lA'I1?t N7 OF F IINCIION I EXPENSM xF�It [DED A 1t3L1_S _S't'31_2010 Master's Lifespring Hope Urban New Life The Administrative Touch Men's Women's Outreach youth Corrections Wayside and Mutistry Ministry Ministry Ministry Ministry Center Development General 'Total Salaries $ 11.9,169 $ 192,803 $ 167,562 $ 96,471 $ 39,354 $ 94,(X)6 $ 72,913 S 195,840 $ 978,118 Employee benefits - - - - 17,760 17,760 - 12,000 47,520 Payroll taxes 8,217 13,748 11.,794 7,412 2,772 6,598 5,079 14,641 70,261 Insurance 28,899 29,066 48,983 3,973 7,630 21,136 11,952 43,239 194,878 RetPrernent plan 3,500 6,000 5,751 2,000 - 1,917 3,209 23,886 46,263 Education and traiuing - - 47 25 1,243 - - 268 1,583• Special tninIstrics 7,883 801 - 7,233 100 11,950 - 3,679 31,646 Resident expenses 38,638 1,861 - - 1,183 - - 41,682 Food 18,845 5,049 - - - 2,627 - - 26,521 Vending - - 8,840 - - - - - 8,840 Drug/TB testing 79 360 357 1,150 - - - - 1,946 Gifts in kind 124,623 252,885 603,373 43,127 45,967 208,491 - - 1,278,466 Repairs andtnaintenance 25,187 25,289 20,048 2,665 932 3,292 6,760 3,161 87,334 Vehicle expenses 401 1,045 23;589 316 4,996 2,280 429 975 34,031 Utilities 58,895 31,607 52;094 3,720 - 13,975 3,720 7,440 171,451 Disposal - 1,559• 49,400 - - 442 - 51,401 Rent - - - - - 43,647 - - 43,647 Telephone 1,728 7,412 3,376 738 - 4,222 1,298 1,342 20,116 Printing and design - - - - - - 35,441 - 35,441 Postage 394 893 12 2,291 143 1,709 19,293 1,272 26,007 Advertising and promotion 663 1,085 - 2,940 404 875 1,995 268 8,230 Dues and convention 100 823 200 1,812 933 206 780 11671 6,525 Supplies 7,121 1,128 15;972 12,428 4,312 1,109 51916 952 48,938 Uata processing 2,755 2,167 - - 58 13,709 318 19,007 E-Bay expenses - - - - - - - - - Yroressional services 1,977 1,906 2,206 1,896 1,492 1,775 42,365 3,214 56,831 Fundraising - 40,366 - - - - - - 40,366 Building campaign expenses - - - - - - 113,793 - 113,793 Miscellaneous expenses 4,763 648 8,211 - - - - (2,354) 11,268 Restricted expenses 1,185 2,276 200 896 647 1.157 1,920 8,281 Loss on sale of assets - - - - - - - - Depreciation 56,583 56,583 7;544 7,544 7,544. 37,712 7,544 7,545 188,610 81121 functional expenses $ 511,605 $ 677,360 $1,029,559 $ 198,637 $ 13 $ 478,137 $ 346,196 $ 321,277 $3,699,001 Percentage totals-2010 13.83% 18.31% 27.83% 5.37% 3,68% 12.9395 9.36% 6.69% 100.00% The accompanying notes are an integral part or this statement. 1 •1 ,1:Xf1113 A WAYSIDE CROSS MINISIMS STATEMENT OF F 1NC ONAt_NxEENSES FOR UP,YEAR ENDED AUGUST 31-2009(Restated) Master's Lifespring Hope Urban New Life The Administrative Touch Men's Women's Outreach Youth Corrections Wayside and Ministry Ministry Ministry Ministry Ministry Center Development General Total Salaries $ 116,827 $ 186,658 $ 179,009 $ 96,197 $ 34.749 $ 91,482 5 47,120 $ 190,893 S 942,935 Employee benefits - - - 17.760 17,760 - L2,OW 47.520 Payroll taxes 91196 14,539 13,504 7,590 2,509 6,559 6,385 1.4,272 74,554 Insurance 19,917 25,198 47,543 2,938 4,716 17,195 4,766 39,763 162,036 Retirement plan 2,349 41721 4,751. 583 - 500 3,917 24,912 41,733 Education and training 503 289 154. 150 13 - - 11 1,120 Special ministries - 648 9,915 2,204 15,917 - 28,684 Resident expenses 37,995 1,504 - - - 817 - 40,316 Food 23,009 4,825 - - 1,710 - - 29,544 Vending - - 9,383 - - - - - 9,383 Drug/1'13 testing - - - - - - _ _ Gifts in kind 276,111 208,096 524,386 58,349 22,141 125,338 - - 1,214,421 Repairs and maintenance 29,856 29,187 23,824 2,891 - 6,663 26.517 4,569 123,507 Vehicle expenses 424 3,354 28,316 2,325 5,562 1,319 1,656 898 43,854 Utilities 57,988 33:863 50,363' 3,735 - 13.268 3,735 7,470 170,422 Disposal - 1,562, 43,039 - - 2,180 - - 46,781 Rent - - - - - 42.744 - - 42,744 Telephone 2,072 7,405 3,541. 903 - 4,553 I,854 1,643 21,971 Printing and design - - - - - 40,374 - 40,374 Postage 9 369 3 843 426 931 22,636 799 26,0I6 Advertising and promotion 5,716 929 - 4,460 1,165 1.272 3,949 3,309 20,8110 Dues and convention 2W 405 1,436 1,456 50 200 1,940 1,750 7,437 Supplies 7.,217 598 19,263 10,285 1,221 460 5,602 1,616 46,262 Data processing 159 1.207 - - 284 12,459 8,167 22,276 E-Bay expenses - - 1,637 - - - - - 1,637 Professionalsetvices 2,570 2,501 2,795 2,548 2,104 2.380 31,078 5,301 51,277 Fundraising 28,237 - - - - - 28,237 Building campaign expenses - - - - - 108,618 - 108,618 miscellaneous expenses 3,591 33,160 I'm - - - - 3,967 41,823 Restricted expenses 455 21342 150 312 1.533 1,306 - 2,956 9,054 Loss on sale of assets - - - - - - 6.228 6,228 Depreciation 58,019 58,019 71735 7 7�35 7,735 38.679 7,735 7,739 193,396 Total functional expenses $ 654,183 $ 649;616 $ 961 z 937 $' 213,215 S 103.888 $ 393,517 $ 330,341 $ 338,263 $3,644,960 .� Percentage locals-2009 17.95% 17.82% 26.39% 5.85% 2.85% 10.80% 9.06% 9.28% 100.005'0 The accompanying notes are an integral part of this statement. WAYSIDE CROSS MINISTRIES r DOTES TO FINANCIAL STATEM1=,t+I'I'S AUGUST 31, 2010 AND 7009 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Wayside Cross Ministries (the Organization) is a nondenominational Christian ministry serving the physical and spiritual needs of hutting, needy and homeless people in Aurora, Illinois and Elgin, Illinois and surrounding communities. The ministries include a men's rehabilitation program for drug and alcohol abusers, a women's and children's shelter, material assistance programs, youth ministries that include tutoring and athletic programs, prison ministries, and transitional learning and housing programs. The financial statements were available to be issued on December 8, 2010, with subsequent events being evaluated through this date. The following is a summary of the significant accounting policies applied by management in the preparation of the accompanying financial statements. Basis of Accounting The financial statements are prepared on the accrual basis of accounting whereby revenue is recognized when earned and expenses are recognized when incurred. Contributions and bequests are recorded when cash or other assets are received or when an unconditional promise to give is made. Donated foA..clothing, materials, equipment and facilities are recognized at their estimated fair value on the date of rec ipt. Use of Estimates - The preparation of financial statements in conformity with accounting principles. generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Investments - Investments are reported at fair value. Investment income (including realized gains and losses on investments, interest and dividends)is included in operating income. Unrealized gains and losses on investments are included in other changes in net assets. Inventories- Inventories consist of clothing, furniture, equipment and miscellaneous household items which have been donated to the Organization for sale or distribution. Such items are recorded at their estimated value. Unconditional Promises to Give- Coniri`butions of cash and other assets are recognized at fair value when the donor snakes a promise to give that is, in substance, unconditional. Contributions. are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statemem of activities as net assets released from restrictions. - 2- (1.) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued) Property and Equipment - Property and equipment are valued at cost or their fair market value at the date of donation. Expenditures for renewals and betterments which extend the life of_ such assets are capitalized. Capitalization policy is $1,000. Maintenance and repairs are charged to expense as incurred. Depreciation charged to operations is computed using the straight-line method based on the estimated useful lives of the assets. Depreciation charged to operations was $188,609 and $193,396 for the years ended August 31, 2010 and 2009, respectively. Income Taxes- The Organization is a not-for-profit corporation as described in Section 501(c)(3) of the Internal Revenue Code and, as such, is not subject to income taxes on net income from exempt purposes. The Organization does not file income tax returns in either the U.S_ federal jurisdiction or Illinois as the Organization meets the requirement to be exempt from filing returns unless they incur unrelated business income. Deferred Development Costs - Costs incurred in conjunction with the planned redevelopment of the Organization's property in Aurora, Illinois have hum capitalized as project costs. As the separate projects are completed, the deferred costs will be allocated to the projects and depreciated as part of the costs of the completed proj ecm Retirement Plan- The Organization sponsors a defined contribution plan pursuant to Section 403(b) of the Internal Revenue Code_ The plan covers all employees meeting service requirements. Eligible participants may elect salary deferral contributions up to the maximum amount allowed under the Internal Revenue Code. The plan provides for discretionary matching contributions by the Organization in accordance with the terms of the plan. Contributions by the Organization amounted to $46,263 and $41,733 for August 31, 2010 and 2009, respectively. (2) PROMISES TO G1VE: Included in pledge receivable are the following unconditional promises to give— 2010 2009 Pledges for Bridge to Life capital campaign $_ 426.670 $ Amount due in— Less than one year $ 347,900 $One to five years 78.770 - $ -3 - #f_ U INVESTMENTS: Investments at August 31, 2010 and 2009 are summarized as follows: Cost Fair Value 2010 2009 2010 2009 Unrestricted- Certificates of deposit $ - $ 435,371 $ - $ 435,371 Real estate investment trusts 14,725 71,160 51,809 62,838 Mutual funds 1.551,199 1,517.054 1.493.461. 1.403.161 1,625,924 2,023,585 1,545,270 1,901,370 Endowment funds- Mutual funds 52.788 48.7$1 46.605 40.661 1. 78.712 $ 2.072.3{ L_L591,875 Investment income (loss)consists of the following: 2010 2009 Interest income $ 69,244 $ 89,430 Realized (loss) - (72,697) Unrealized gain (loss) 31.353 (1.564) 15,169 (4) FAIR VALUE MEASUREMENTS: The Accounting.Standards Codification for Fair Value Measurement-established a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are dpscn`bed as follows: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. -4- (4) FAIR VALL-E MEASUREMENTS: (Continued) Level 2: Inputs to the valuation methodology include: a quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted.prices that are observable for the asset or liability; . a Inputs that are derived principally from, or corroborated by, observable market data by correlation or other means_ If the asset or liability has a specified(contractual) term, the level 2 input must be-observable for substantially the full term of the asset or liability. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at August 31,2010 and 2009. Mwud Fwuk: Valued at the net asset value (NAV)of shares held by the Organization at year end. Real Estate Investnient Trusts: Valued based on the net asset value (NAV) of each investment position, as provided by the respective fund manager. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future 4,&values. Furthermore, although the Organization believes their valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. -5 - {; (4) FAIR VALUE MEASUREMENTS: (Continued) The following table sets forth by level, within the fair hierarchy, the Organization's assets at fair value: Assets at Fair Value as of Au-must 31, 2010 Description Level l Level 2 Leve13 Total Mutual funds $ 1,540,066 $ - $ - $ 1,540,066 Real estate investment trust - 51.809 51.809 Total assets at fair valued SI.g 1 7 Assets at Fait Value as of Au--ust 31 2009 Description Level Level Level Total Mutual funds $ 1,443,822 $ - $ - $1,443,82.2 Real estate investment trust - - 62.838 62.838 $t Z2 S LIKE 1,506;660 _ Certificates of deposit 435,371 f Total assets at fair value 1. 42;0 1 Certain assets and liabilities are measured at fair value on a non-recurring basis, and,therefore, are not included in the preceding table. Level 3 Gains and Losses: The following table sets forth a summary of changes in the fair value of the O,anization's level 3 assets for the years ended August 31, 2010 and 2009 . 2010 2009 Real estate investment trust- Balance, beginning of the year $ 62,838 $ 73,877 Realized and unrealized(loss) (14,594) (15,314) Interest and dividends 3.565 4-275 Balance, end of year _ 51.809 624838 (5) CASH VALUE OF LIFE WSURANCE: The Organization is the irrevocable charitable beneficiary of several life insurance policies with an aggregate face value of approximately $272,000 at August 2010 and 2009. The net cash surrender value of these policies was $96,423 and$99,403 at August 31, 2010 and 2009, respectively. - 6- f 6) ANNUITY OBLIGATIONS: Annuity obligations represent payments due in fixed amounts over the lives of beneficiaries under charitable gift annuities. The liability resulting from an annuity gift is recorded at the present value of the actuarially determined liability for future annuity payments. The excess of an annuity gift over the liability for annuity payments is recorded as revenue. Upon the death of the beneficiary, the balance of the liability is recorded as revenue. There were no new contributions in 2010 and 2009, respectively. Scheduled annuity payments are as follows: 2611 $ 2,222 2012 2,222 2013 1.2$5 72 f i RESTRICTED NET ASSETS: The Organization reports gifts of cash and other assets as temporarily or permanently restricted net assets if they are received witb donor stipulations that limit the use of the donated assets. When a restriction expires, restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Temporarily restricted net assets of $454,541 and- $19,343 at August 31, 2010 and 2009; respectively; are restricted for capital expenditures, ministry programs and annuity payments due to beneficiaries of donors. Permanently restricted net assets of$49,000 and $48,750 at August 31, 2010 and 2009, respectively, are restricted for investment in perpetuity. (8) LEASE COMMITMENTS: The Organization leases building space from the City of Aurora under an agreement that expires in June, 2016. The Organization has options to extend the lease for two additional ten-year periods. Rental payments of one dollar per year are payable upon the annual anniversary date of the agreement. In the event the City of Aurora terminates the agreement prior to 2016, the Organization is entitled to a partial reimbursement of costs incurred to rehabilitate and repair the building. In addition, the Organization leases building space in Elgin, Illinois under an operating lease that expires: in June, 2012. The Organization has options to extend the lease for two additional five- year periods. The lease requires monthly rental payments which include real estate taxes, insurance and common area maintenance charges. The Organization has various equipment leases that expire on various dates through August, 2011. Rent expense for the years ended August 31, 2010 and 2009 was $53,203 and$51,467, respectively. -7- tw (8) LEASE COMMITMENTS. (Continued) Future minimum lease commitments under the lease are as follows: 2011 $ 52,932 2012 39,589 2013 1 2014 1 2015 1 Thereafter I l91 ENDOWMENT: The Accounting Standards Codification (ASC) provides guidance on the net asset classification, of donor-restricted endowment funds for a non-profit organization that is subject to an enacted version of the Uniform Prudent Management of Institutional Funds Act of 2006 (UPMIFA). The ASC also requires additional disclosures about an organization's endowment funds (both donor-restricted endowment funds and board-designated endowment fiords) whether or not the organization.is subject to UPMIFA- The State.of Illinois enacted UPMIFA effective.June 30, 2009, the provisions.of which apply to endowment funds existing on or established after that date. The Board of Directors of tk Organization, on the advice of legal counsel, has determined that the majority of the Organization's permanently restricted net assets meet the definition of endowment funds under UPMIFA. The Organization's endowment consists of three individual fiords established for various purposes. Its endowment consists of donor-restricted funds. As required by generally accepted accounting principles, net assets associated with endowment funds, including funds designated by the Board to function as endowments, are classified and reported based on, the existence or absence of donor-imposed restrictions. The Board of Directors of the Organization has interpreted the Illinois Prudent Management of Institutional Funds Act(IPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Organization classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift insmiment at the time the accumulation is.added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily r.tricted net assets until those amounts are appropriated for expenditure by the Organiza ion in a manner consistent with the standrrd of prudence prescribed by IPMIFA. - 8- (9) ENDOWMENT: (Continued) In accordance with IPMIFA, the Organization considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: (1) the duration and preservation of the various funds, (2) the purposes of the donor-restricted endowment fiords, (3) general economic conditions, (4) the possible effect of inflation and deflation, (5) the expected total return from income and the appreciation of investments, (b) other resources of the Organization, and (7) the Organization's investment policies. Investment Return Objectives. Risk Parameters and Strategies - The Organization has adopted investment and spending policies, approved by the Board of Di=tors, for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment funds white also,maintaining the purchasing power of those endowment assets over the long term. Accordingly; the investment process seeks to achieve an after-cost total real rate of return, including investment income as well as capital appreciation, which exceeds the annual distribution with acceptable levels of risk. Endowment assets are invested in a well diversified asset mix, which includes cash and mutual funds that are intended to result in a consistent rate of return that has sufficient liquidity to make an annual distribution for general operating expense while growing the Rinds, if possible.- Actual returns in any given year may vary from this amount. Investment risk is measured in terms of the total endowment fiord; investment assets and allocation between asset_classes and strategies are managed to not expose the fund to unacceptable levels of risk. Spending_Policv - The Organization has a policy of appropriating for distribution each year of income as directed by the Board. Endowment Net Asset composition by Type of Fund as of August 31, 2010 and 2009 is as follows: 2010 Total Net Temporarily Permanently Endowment Unrestricted Restricted Restricted Assets Donor-restricted endoaomentfunds 2009 Total Net Temporarily Permanently Endowment Unrestricted Restricted Restricted Assets Donor-restricted endowment funds (restated) -9- (9) ENDOWMENT: (Continued) Changes in endowment net assets as of August 31, 2010 and 2009 are as follows: 2010 Total Net Temporarily Permanently Endowment Unrestricted Restricted Restricted Assets Endowment net assets, beginning of year $ (8,089) $ - $ 48,750 $ 40,661 Contributions - - 250 250 Net appreciation 5,420 - - 5,420 Investment income 274 274 Endowment net assets, end of year $(2.395) 4S 9 QQQ _ 46.605 2009 Total Net Temporarily Permanently Endowment Unrestricted .Restricted Restricted . Assets Endowment net assets, beginning of year $ - $ - $. 83;841 $ 82,841 Adjustment for Community Foundation assets (5,062) - (31,525) (36,587) Contributions - - 175 175 Net (depreciation) (3,027) (2,749) (2,747.) (8,517) Investment income - 2,749 2.749 Endowment net assets, end of year $08 ) - 4 7 (I0) PRIOR PERIOD ADJUSTMENT: During the year ended August 31, 2010, it was determined that the endowment vas overstated by $36,587. The Organisation discovered that the investment held by Community Foundation was the asset of the Foundation and not of the Organization. Based on this fact, the endowment investments and beginning net assets were reduced by $36,587. There was no effect on net income for the years ended August 31, 2010 and 2009. 2010 2009 Net assets, beginning year as previously reported * $4,901,298 $4,182,047 Adjustment for Community Foundation assets - (36.587) Net assets, at beginning of year as restated 4,901,298 4,145,460 Change in net assets 11.485 755.838 Net assets, end of year 1 17&a $-4 2 8 BY-LAWS OF WAYSIDE CROSS. MINISTRIES Amendments Attached Revised September 15, 1994 Page 1 of 10 BY-LAWS WAYSIDE CROSS MINISTRIES ARTICLE 1: NAME,SEAL SECTION 1: the name of this corporation shall be"Wayside Cross Mirdstries", hereinafter called Wayside. SECTION 2: its corporate seat shall be a circle with the words"WAYSIDE CROSS MINISTRIES"superimposed upon a cross in outline; incorporated March.6. 1934. SECTION 3: The purpose of Wayside shall be to fulfill the commission of our Lord and Savior 7esus Christ,to share the gospel and minister to the physical needs of people_ ARTICLE II: AFFILIATION SECTION 1: The work of Wayside shall be non-denominational and shall operate in cooperation with Christian Churches of Aurora and surrounding communities. ; i ARTICLE III: MEMBERSHIP SECTION I: The members of the present Board of Directors shall constitute the membership of this organization. New members may be elected from time to time in accordance with the By-Laws and prescribed by the Board of Directors. SECTION 2: Upon recommendation of the Board Development committee and by 1/4 vote of the voting members of the Board of Directors,active members of the Directorate maybe elected.to Life Membership. Criteria for such recommendation will be length of service and outstanding aehieveauent Directors elected to this status will retain all rights and privileges of active membership with optional fulfillment of responsibilities thereof. Directors elected to Life Membership will be presented with an appropriate Certificate of Recognition,such presentation to be made at the annual meeting. SECTION 3: Upon recommendation of the Board Development committee and by 3,E vote of the voting members of the Board of Directors,active members of the Directorate may be elected to Honorary Membership. Criteria for such recommendation will be length of service,outstanding,achievement,non-resident status and inactive participation, Directors elected to this status relinquish all rights and privileges of active membership,including voting. r Revised September 15: 1994 page 2 of 10 ARTICLE IV: BOARD OF DIRECTORS SECTION 1: a) The BOARD of DIRECTORS shall consist of thirty nine(39)members,five(S) whom are officers. The retiring President shall serve as a member of the-Board for two years following his/her service as President,or until replaced by his/her successor. Directors shall be elected by ballot to serve for two consecutive(3) year terms;or until their successors are elected and rlualified. At least one year shall elapse before a Director retiring from the board after(6)years of service may be eligible for re-election. In rase of a vacancy caused by resignation,death, or otherwise,the Board shall elect a member by ballot to serve for the unexpired term. b) A Director who fails to attend three consecutive meetings; unless excused by the President of the Board,shall be deemed to have resigned and the Board_of Directors shall fill the vacancy as provided in paragraph(a)of this section. SECTION 2: The Board of Directors shall oversee the affairs,property and effects.of Wayside and shall have the power to suspend or remove from office any Officers or Directors for violation of any of the rules of Wayside. SECTION 3: No Officer;Director or any committee shall incur any unbudgeted operating or capital expenditures,direct or otherwise,withoi t the au horny of Ilia Board of Directors or Executive Committee. SECTION 4: The Board of Directors shall have full power and authority to make all rules and regulations for the carrying.out of these By-Laws. SECTION 5: Regular meetings of the Board.of Directors shall be held on the third Thursday of March,June,September,and December. ARTICLE V: OFFICERS SECTION 1: The Officers of Wayside shall be President,Vice President, Secretary, Treasurer,Assistant Treasurer. SECTION 2: All Officers shall be elected by a majority vote of Directors present at the regular annual September meeting of the Board of Directors at which.a quorum is present. SECTION 3: PRESIDENT a) The President shall preside at all Board meetings and appoint special committees, subject to the approval of the Board of Directors,execute such papers as shall Revised Sepiember 15. 1994 Page 3 of 10 require his/her signature, and exercise a general supervision aver the affairs of Wayside and perform all other duties incident to the office. The President shall be an ex-officio member of all committees. b) The President or presiding officer shall not be entitled to a vote in the deliberations of the Board of Directors unless there is a tie in.the vote,at which time he/she shall be entitled to a vote and such vote shall then be just as valid and binding as that of any Director. SECTION 4: VICE PRESIDENT The Vice President or shall,in the event of absence, refusal or inability to act of the President,perform the duties of that office- The Vice President shall serve as the Chair person of the Finance Committee. SECTION 5.: SECRETARY The Secretary shall ensure the keeping of all records of Wayside,_its Corporate Seal, the records of the meetings of the Executive Committee and Board of Directors,and shall perform other duties as may be fixed by the Board of Directors. with the President he/she shall sign and affix the corporate seal to all contracts,notes, mortgages and evidences of indebtedness.: It shall.be his/her duty to.see that all notices of meetings of the Board of Directors to all members thereof,as provided by the by-laws. He/she shall receive and refer to the Board,of Directors ail complaints against Wayside,same to be in writing. SECTION 6: TREASURER a) The Treasurer shall be the custodian of all Wayside finds and shall ensure the keeping of accounts,,receipts therefore and payment of all vouchers. He/she shall at the annual meeting submit a detailed report of the#inancial condition of Wayside,approved by the Finance Committee and the Executive Committee,for the preceding year and at such times as requested by the Board of Directors. The Treasurer shall be a member of the Finance Committee. b) All disbursements by check shall be signed by two authorized officers,or one authorized officer and the Executive Director. SECTION 7: ASSISTANT TREASURER In the event of the absence,refusal or inability to act of the Treasurer,the Assistant Treasurer shall act in the stead of the Treasurer. He/she shall perform such other duties as may be fixed by the Board of Directors. SECTION S. All contracts authorized by the Board of Directors shall normally be signed by the President and attested by th,e Secretary with the Corporate Seal attached thereto. In lieu thereof,they may be signed by two elected officers. RevisedSepcember 11 5,1994 Page 4 of 10 ARTICLE VI: TERM OF OFFICE SECTION 1: The Vice President,Secretary,Treasurer,Assistant Treasurer shall hold office for two{2}years from the date of election or until their successors are elected and qualified. SECTION 2: The President shall old office for two(2}years from the of election 14e/she shall automatically be a Director following his/her tenure as President and serve as the Chairperson of Board Development- ARTICLE VII: EXECUTIVE DIRECTOR SECTION 1: An Executive Director may be appointed as the e Occasion of Dire tors,such his/her duties and salary fixed from timee Corporate Charter and these duties to be subject to the intent and Purpose By-Laws. SECTION 2 An Assistant Executive Director may Oe appointed as the occasion requires and his/her duties.and salary fixed frora t1me to time by the Bo Chartertand such duties to be subject to the intent and Purpose of the Corporate Laws. In the event of the absence,refusal or usability to act of the these By- - form,the duties of that office. Executive Diredor,.hetshe shall upon request pm ARTICLE V1II: COMMITTEES SECTION 1: STANDING COM ETTEFS - The President shall with the approval of the Board of Directors,shall appoint committees each year from.the membership of the Board of Directors,except as hereinafter set forth,. as follows: Buildigg CommitteeiF�L esp = Advancement Committee,Urban Youth Ministr} Women's Ministry Committee,Board Development Committee,Campaign Committee,.Public Relations Committee,Hope Outreach Ministry Committee, ee,Wayside Center—Elgin CoTnmitte~. Flew Life Corrections Ministry Comi7utt 3 Mastzr's Touch hleu s Ministry Co xpedien committees as said board may from time to time find necessary SEc`gON 2: EXECUTIVE COMMITTEE Page 5 of ld Revised September 15, 1994 f� f The current officers elected by the Board of Directors and the chairperson of Standing Committees shall constitute the Executive Committee. The Executive Committee shall have authority to act between regular Board meetings in cases of emergency involving Wayside policy of expenditure of funds. The President of the Board of Directors shall be Chairperson. SECTION 3: BUILDING AND DEVELOPMENT COMMITTEE The Building and Development Committee shall take the initiative in those matters pertaining to the renovation and maintenance of the facilities of Wayside; and will be responsible for carrying out al l plans presented to the Board of Directors and approved by that body. The Committee-may have up to six members consisting of a Chairperson who is a board member,and five other members two of whom should be board members. SECTION 4: FINANCE COMMITTEE The Finance Committee shall have the responsibility of working with the Executive Director on the preparation of budgets and the presentation of same to the Board of Directors. It also has concern with all other matters relating to the accounting policy and procedures,income,investments,expenditures,methods of reporting,and ways of incurring funds adequate to meet the needs of the Wayside programs. The Committee may have up to six members-with the Nice President serving as Chairperson, Its members shall.consist of the Vice President, Treasurer,Assistant Treasurer and three other Board members. SECTION 5: HOPE OUTREACH MDaSTRY COMMITTEE The Hope Outreacb Ministry Committee will concern itself with all aspects of the functioning of the Indus:&W Department)reviewing its operation from time to time:and working with the Executive Director and other staff to obtain maximum effectiveness in its relationship to the Wayside Ministries. The committee may have up to six members consisting of the Director,three members of the Board and two advisors. The Chairperson shall be a member f the board. SECTION 6: PUBLIC RELATIONS COMMITTEE The Public Relations Committee shall work with the Executive Director to gain increased public interest and understanding of Wayside's programs and services. It will evaluate and review community responses about Wayside for the purpose of malting proper response and cons€ruciive use of such information. The Committee may have up to six members consisting of the Director of Development,three Board members and two advisors. The Chairperson shall be a member of the board. SECTION 7: NEW LIFE CORRECTIONS MINISTRY COMMITTEE Revised September 1j,1994 Page 6 of 10 The New Life Corrections Ministry Committee shall work with the Chaplain of the Ministry and will provide direction and support to the Ministry. The Committee may have up to six members consisting of the Chaplain,three members of the Board and two advisors. The Chairperson shall be a board member and the committee shall meet bi=monthly or at the call of the Chairperson. The Committee's responsibilities shall consist of Prayer,Program Planning,Fund Raising and Promotion. SECTION 8: URBAN YOUTH MINISTRY COMMITTEE The Urban Youth Ministry Committee shall work with the Ministry Director and will provide direction and support for theMu�is-try: The Committee may have up to six members,consisting of the Director,two members of the Board and three advisors. The Chairperson shall be a member of the Board. The Committee shall meet at the call of the Director. The Committees responsibilities shall consist of Prayer,Program Planning,.Fund Raising and Promotion. SECTION 9: LIFESPRING WOMEN'S MINISTRY COMMITTEE The Lifespring Women's Ministry Committee shall work with the Ministry Director and vtill provide direction and support for the Ministry. The Committee may have up to six members, consisting of the Director,two members of the Board.and three advisors. The Chairperson shall be a member of the Board. The Cornmittee shall meet at the call of the Director. SECTION 10: CAMPAIGN COMMITTEE The Campaign Committee shall give leadership to the organization and governance of Wayside's annual fund drive. The responsibilities of the Committee shall include the soliciting of captains and workers, training:the setting of campaign goals and banquet dates. The Committee may have u'p to six members,consisting of a Chairperson and Co— chairperson who are members of the Board and four advisors. SECTION 11: BOARD DEVELOPMENT C0M1VTI7-EE Revised September 15, 1994 Page 7 of 10 f.- t The Board Development Committee shall be responsible for developing and strengthening the-Board of Directors. The responsibilities of the Committee shall include recruitment and presentation of qualified candidates for nomination to the Board of Directors,orientation and training of new members,setting and review of Board standards and evaluation of members. The Committee may have up to six members,consisting of a Chairperson and at lease five other members_ The immediate Past President shall serve as Chairperson. SECTION 12: ADVANCEMENT COMMITTEE The Advancement Committee of the Board of Directors is responsible for general oversight of all fimdraising activities and programs of Wayside as well as providing counsel to the Director of Development.on fundraising matters.. The Committee may have up to six members,consisting of four board members and two advisors. The Chairperson shall be a member of the board. The responsibilities of the Committee shall include planned and annual giving, special_appeals,prospect identification and donor recognition and.nurture. The Committee shall provide leadership for fundraising within the Boa's of Directors , and will assist the Director of Development in-identifying and contacting prospective donors('individual,corporate,agency,goveran.iew and foundation): The Executive Director,Director of Development and Chairperson of the Annual Campaign Committee shall be member's ex-officio of the Advancement Committee. The Advancement Committee may appoint sub-committees to focus on specific fumdraising topics as appropriate. SECTION 13: MASTER'S TOUCH MEN'S MD11STRY COMMITTEE The Master's Touch Men's Ministry Committee shall work with the Ntrnistry Director and wU provide direction and support for the Ministry. The Committee may have up to six members consisting of the Director,two members of the Board and three advisors. The Chairperson.shall be a member of the board. The committee shall meet at the call of the Director. The Committee's responsibilities shall consist of Prayer,.Program Planning,Fund Raising and Promotion. SECTION 14: WAYSIDE CENTER-ELGIN COMMITTEE Revised September 15, 1994 Page 8 of 10 The Wayside.Center-Elgin Committee shall work with the Ministry Director and will provide direction and support for the Ministry. Tne Committee may have eight members consisting of the Director,two members of the Board and five advisors. The Chairperson shall be a member of the board. The committee shall meet at the call of the Director. The Committee's responsibilities shall consist of Prayer:Program Planning:Fund Raising and Promotion. ARTICLE IX: MEl;fINOS SECTION 1: The Annual Meeting of Wayside shall be held on the third Thursday of September of each year. Ten(10)days prior notice shall be given of such annual meeting. The Fiscal year shall be September 1 thru August 31. SECTION 2: The Order of business at the annual meeting shall be: 1) Minutes of the previous meeting. 2) Reports of Officers and Committees. 3) Miscellaneous Business. 4) New Business. SECTION 3: Operations Budget: To assure that Wayside maintains a solid financial position,the Board of Directors will approve at its regular September meeting a balanced operations budget which will require that revenues be identified to offset the expenditures required to meet Wayside's needs and desires in day-today operations. SECTION 4: Capital Budget: The Finance Committee with the support of other recognized committees will submit a capital budget each year for approval by the Board at its regular September meeting. Capital expenditures may only be added to the budget by the board. SECTION 5: A majority of the Board of Directors,regular and life present or by proxy shall constitute a quorum at any meeting of the Board of Directors,except as otherwise herein provided. If no Quorum is present at its meeting,its presiding officer shall adjourn such meeting to such a time as.is most convenient SECTIO?T b: A Special Meeting of the Board of Directors shall be called whenever the Reviled September 15. 1994 Page 9 of 10 - ' . :•. _ - :>:Y1:ro:""- - - - - - - :.:�•. - - - C,I _ _- `" _ _ _ _ _ __ •ll --:- :]:\`..' _:.. _ ,.. .. .may rrR^-h�•� . _ _ ­___.I? . .-.. .'..r .. - _ IL{ ••.°.G.. I... .- _ ..v. Y:-:.:.. :`. 1 ?''E.' - �' - �A.f -'1:-. �a]! V / 1. . - �V•l- J• A• �b - - - a _ - _ , :::.__. a .�': '�C� >� a_ 1., ..r 34 :F. 7] '�vll�/ _J:: -- CEt TIFICAT£-=DER?1 SC): - %'t- - _ - - ..' t•I OI9 - \: :.' OF -9TS. - _ - dpii�:;eii_ _ -- r'^ w - va•�_Y- i .. • 0 _ 9 P: ..... ., .. .. tioa�a_ ��e"SeQTeiar�nl"`State _ _ _ ... 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':,`�" :,'!;',*�'.i<,..,:.:';' " �Ya31Lee;'i,.i' +i'�:in_':'i!ti�l:.j,. .Y.S :� ,,7ii.,4.1,;.tr.}.r:: :1,.g+ IiJn14� , fr r r ni'�t '1 t e, iro it ,4 sm J-3.. ter 5''a !�1'whf u 1 l 4'r, -Q s r r c WAYSIDE CENTER Department 060,130 Company .WAYSIDE 10111 Prior Year 2011 Nov. 10 YTD YTD Budget Nov.09 YTD Budget Current Budget November Year Year Budget 12 month Prior Year '4300 Contributions-General 23,842 57,556 42,500 14,293 59,368 '4510 Income-Miscellaneous 0 0 0 584 818 4512 Rent Income 350 1,210 0 0 0 Total Income 24,192 68,766 42,500 14,877 60,186 15100 Salaries 8,011 24,121 24,221 7,800 23,401 '5102 Payroll Taxes 548 1,649 2,119 547 1,641 '5103 State Unemployment 0 0 0 0 0 '5104 Employee Insurances 1,518 3,036 4,554 0 3,477 '5105 L T Disab/L T Care 36 109 109 36 203 '5106 Life ins. 38 114 114- 38 152 5108 Employee Dental Insurance 63 190 190 58 175 5109 Employee Drug Testing 0 0 17 0 0 5110 Staff Pastor Housing Allowance 1,480 4,440 4,440 1,480 4,440 '5130 Staff Retirement 208 625 625 42 125 '5140 Staff Training 0 0 ,D 0 0 15180 Fund Raising/Spec Min 0 5,858 0 125 2,879 5190 Resident Allownce 0 0 0 216 216 15191 Client Health Exp 0 .0 0 0 0 '5192 Client Tmsprttn 0 0 0 0 0 '5193 Client Laundry 14 56 0 14 14 5194 Client Recreation 0 0 0 0 0 '5195 Client Drug Test 0 0 0- 0 0 '5197 Client Misc. 0 0 0 14 95 '5200 Food 130 345 0 72 180 '5210 Food Supplies 59 169 0 278 289 '5300 Dues&Conventions 0 200 62 200 200 '5400 Property Ins. 98 384 294 90 270 '5410 Liability Ins. 41 165 123 42 125 '5420 Vehicle Ins. 99 398 297 100 301 '5430 Workers Comp. 276 1,069 829 240 720 '5450 Ministry Supplies 0 0 0 0 6 '5500 Vehicle-Fuel/Repairs/Mileage 0 0 25 0 0 '5501 Vehicle Fuel 173 261 300 448 448 '5502 Vehicle Repair 19 19 125 0 65 '5600 Building Repair 190 0 188 0 195 '5605 Building Services 106 297 437 112 195 5606 Property Taxes-Triggs Ave. 0 0 0 0 0 '5610 Equipment Repair 0 0 100 0 0 '5630 Electricity 257 1,375 1,875 893 1,503 '5631 Heating Fuel 183 304 1,000 201 359 '5632 Water 397 802 688 0 425 '5633 Telephone 332 661 875 224 577 '5680 Rent(Outside Facility) 3,338 10,015 10,667 3,610 14,440 '5703 Disposal Expense 104 312 188 -186 72 '5740 Postage 0 0 150 14 14 '5745 Public Relations 0 0 0 0 0 '5750 Office Supplies 0 306 188 146 205 '5751 Data Processing 0 0 38 0 0 '5752 Office Equip. Repair 8 77 62 0 63 '5753 Payroll Cost 30 91 100 28 85 '5754 Audit Expense 946 1,068 350 890 1,057 '5768 Promotional 0 0 188 0 150 Subtotal Expenses 18,702 58,504 55,538 17,772 58,760 15900 Purchases Furn/Fixtures 0 0 0 0 0 5970 Unbudgeted Repairs/Purchases 0 0 0 0 0 Total 18,702 58,604 55,538 17,772 58,760 oec 13,2010 Wayside Cross Ministries Page 1 12:47 pm Trial Balance Accounts 5100.000 to 5999.990, Department 60 (For the month of November 2410) Account#/Reference No./Description Date Debits Credits Balance 5100.060 Salaries-Elgin 16I09.40 GEN GEN4283 To record Payroll 11/15 4005.69 GEN GEN4292 To record Payroll. II/3O 4005.69 ****Ending Balance 8011.38 0.00 24120.78 5102.060 S.S.&Medicare-Elgin 1101.18 CID Chg 1391 11/15 Pavroll 11/15 273.87 C/D Chg 1403 11/30 Payroll 11/30 273.88 ****Eudin-Balance 547.75 0.00 1648.93 5104.060 Medical ins.-Elgin 1518.01 GEN GEN4252 To record medical 11/01 1518.01 insurance for November. * GEN GEN4286 To allocate Medical to 12/01 1518.01 correct accounts for December. Ending Balance 1518.01 0.00 3036.02 Future Balance 1518.01 0.00 4554.03. �. 5105.060 L T Disab/L T Care-Elgin 72.40 GEN GEN4248 To record Unum- 11/08 36.20 November * GEN GEN4285 To allocate Unum 12/01 3620 Insurance(Life/LTD)to each department. ***Ending Balance 36.20 0.00 108.60 Future Balance 36.20 0.00 144.80 5106.060 Life Ins.-Elgin 76.00 * GEN GEN4310 Audit Entry#14- 08/31 335.00 Adjust cash surrender value for life insurances GEN GEN4247 To record Unum 11/08 38.00 insurance-November * GEN GEN4285 To allocate Unum 12/01 38.00 Insurance(Life/LTD)to each department. **�* Ending Balance 38.00 0.00 114.00 Future Balance 38.00 0.00 152.00 5108'.060 Dental-Elgin 126.80 I Dqc 13,2010 Wayside Gross Ministries Paget 12:47 pm Trial Balance Accounts 5100.000 to 5999.990,Department 60 r (For the month of November 2010) t Account#1/Reference No./Description Date Debits Credits Balance 5108.060 Dental-Elgin (continued) GEN GEN4251 To record Principal i tiol 63.40 Dental entries for November. ' GEN GEN4291 To allocate Dental Exp 12/01 63.40 Principal to December from Prepaids. *x**Ending Balance 63.40 0.00 190"20 Future Balance 63.40 0.00 253.60 5110.060 Housing Allowance-Elgin 2960.00 A/P BRAY,JO Invoice:NOVEMBER 2010 11/01 1480.00 /Housing allowance * A/P BRAY,JO Invoice:DECEMBER 2010 12/06 1480.00 /Housing Allowance *x**Ending Balance 1480.00 0.00 4440.00 Future Balance 1480.00 0.00 5920.00 5130.060 Staff Retirement-Elgin 416.72 CID Chg 1395 Fidelity Employer Portio 11115 104.18 f C/D Chg 1408 FIDELITY EMPLOYER 11/30 104.1.8 **'*Ending Balance 208.36 0.00 625.08 5180.060 Fnd Rsng/Spec Min-Elgin 5857.88 5193.060 Client Laundry-Elgin 41.88 A/P F=TH Invoice: 11-15-10/ 1129 13.96 Charges '***Ending Balance 13.96 0.00 55.84 5200.060 Food-Elgin 214.96 A/P FIFTH TH' Invoice: 11-15-10/ 1129 129.79 Charges ****Endins Balance 129.79 0.00 344.75 5210.060 Food Supplies-Elgin 99.89 A/P FIFTH TH Invoice: 11-15-10/ 1129 58.95 Charges ***" Ending Balance 58.95 0.00 158.84 5300-060 Due&Conventions-Elgin 200"00 5440.060 Property Ins.-Elgin 286.10 Dec 13,2010 Wayside Cross Ministries Page 3 12:47 pm Trial Balance Accounts 5100.000 to 5999.990,Department 60 (For the Month of November 2010) Account#/Reference No./Description Date Debits Credits Balance 5400.060 Property Ins.-Elgin (continued) GEN PROPERTY Property Insurance 11/15 98.09 **• Ending Balance 98.09 0.00 384.19 5410.060 Liability Ins.-Elgin 123.93 GEN LIABILIT Liability Insurance 11/15 41.09 ****Ending Balance 41.09 0.00 165.02 5420.060 Vehicle Ins.-Elgin 298.43 GEN VEHICLE Vehicle Insurance 11/15 99.09 **** Ending Balance 99.09 0.00 397.52 5430.060 Workers Comp.-Elgin 792.34 GEN WWRKRS CM Workers Compensation 1.1115 276.25 t*°* Ending Balance 276.25 0.00 I068.59 5501.060 Vehicle Fuel-Elgin 88.13 A/P FIFTH TH Invoice: 11-15-101 11/29 172.87 Charges **** Ending Balance 172.87 0.00 261.00 5502.060 Vehccle Repair-Elgin 0.00 A/P FIFTH TH Invoice: 11-15-10/ 11/29 18.82 Charges ****Ending Balance 18.82 0.00 18.82 5605.060 Building Srvcs.-Elgin 191.40 A/P SAFEGARD Invoice: 11 1062047/WC 11/08 82.00 Pest Control A/P FIFTH TH Invoice: 11-15-10/ 11/29 64.79 Charges * A/P SAFEGARD Invoice: 121062161 / 12/06 82.00 Pest Control C/R Dep16108 October Pads Inv Pymnt 11/11 41.00 * C/R Dep16195 Pads November Inv_ 12/06 41.00 "*** Ending Balance 146.79 41.00 297.19 Future Balance 82.00 41.00 338.19 5630.060 Electricity-Elgin 1.11821 A/P C01viED-EL Invoice: 10-21-101 11/01 155.40 Triggs El.ec Dec 13, 2Q10 Wayside Cross Ministries Page 4 12:47 pm Trial Balance Accounts 5100.000 to 5999.990;Department 60 (For the month of November 20 10) { Account#/Reference No./Description Date Debits Credits Balance 5630.060 Electricity-Elgin (continued) A/P PADS Invoice: 923-101510/ 11115 101.48 1/2 Utilities • A/P CO-MED-EL Invoice: 11-22-10) 12/06 77.81 Triggs Ave Elec • A/P COMED-EL Invoice: 11-23-10/ I2/06 374.89 Berkley Elec Ending Balance 256.88 0.00 1375.09 Future Balance 452.70 0.00 1827.79 5631.060 Heating Fuel-Elgin 121.26 A/P NgCOR- Invoice: 10-21-10/ 11/01 71.14 Triggs Gas Heat A/PNICOR- Invoice: 10/22/10/ 11/01 67.23 Berkley Heat A/P PADS Invoice: 823-101510/ 11/15 44.72 1/2 Utilities * A/P NICOR- Invoice: II-19-10/ 12106 160.15 Berkley Heat A/P NICOR- Invoice: 11-23-10/ 12/06 66.69 Triggs Heat f "* Ending Balance 183.09 0.00 304.35 Future Balance 226.84 0.00 531.19 5632.060 Water/Sewer-Elgin 405.39 A/P PADS Invoice: 823-10I510! 11115 39636 1/2 Utilities ****Ending Balance 396.56 0.00 801.95 5633.060 Telephone-Elgin. 329.18 A/P AT&T- Invoice: 11/08 193.65 847695440510-2010/WC Phones A/P AT&T- Invoice: 11/08 92.03 847695465710-2010/WC Counter Phone A/P VERIZON Invoice:27769419161 11/09 46.05 WC CeU Phone * A/P VERIZON Invoice:2491.894214/ 12/06 45.75 WC Cell Phone * A/P AT&T- Invoice: 12/13 191.07 847695440511-1 0/WC Phones * A!P AT&T- Invoice' 12/13 83.09 847695465711-10/WC Counter Phone Dep 13,2(110 Wayside Cross Ministries Page 5 12:47 pm Trial Balance _ Accounts 5100.000 to 5999.990,Department 60 (For the month of November 2010) Account#/Reference No.!Description Date Debits Credits Balance 5633.060 Telephone-Elgin (continued) * Ending Balance 331.73 0.00 660.91 Future Balance 319.91 0.00 980.82 5680.060 Rent(Outside Facility)-Elgn 6676.68 * A/P PADS Invoice: 1/112011 NOV 12101 50.00 OVRPMNT/Credit overpayment GEN GEN4253 To allocate Pads 11/01 3338.34 November rent from prepaid misc. ° GEN GEN4298 To record Pads rent to 12/01 416.66 December * GEN GEN4288 To record Pads rent to 12/01 3755.00 December ****Ending Balance 3338.34 0.00 10015.02. Future Balance 3755.00 466.66 13303.36 5703.060 Disposal Expense-Elgin 207.56 A/P ALLIED W Invoice:0551-008239332 11/01 207.94 /disposal exp * A/P ALLIED W Invoice:055I-008279984 12/06 208.97 /WC Disposal Exp C/R Depl6108 October Pads Inv Pymnt 11/11 103.97 **�*Ending Balance 207.94 103.97 311.53 Future Balance 208.97 0.00 520.50 5750.060 Office Supplies-Elgin 305.82 5752.060 Office Equip.Repair-Elgin 69.25 A/P MAILFINA Invoice:N2063991/ 11/22 8.00 Neopost Lease **** Ending Balance 8.00 0.00 77.25 5753.060 Payroll Cost-Elgin 60.92 CID Chg 1392 Paylocity fee 11/15 14.80 C/D Chg 1406 Payiocity Fee 11/30 15.04 **** Ending Balance 29.84 0.00 90.76 5754.060 Audit Expense-Elgin 122.43 A/P DUGAN&; invoice:42628/Audit 11105 946.05 Exp I Dep 13,201 0 Wayside Cross Ministries Page 6 12:47 pm Trial Balance Accounts 5100.000 to 5999.990, Department 60 (For the month of November 2010) r Account#/Reference No./Description Date Debits Credits Balance 5754.060 Audit Expense-Elgin (continued) ****Ending Balance 946.05 0.00 1065.48 *****Report Total 13657.23 144.97 *NOTE: These journal transactions were posted either to prior or to future months--these transaction amounts are not reflected in the account ending balances or report totals NOTE: Total debits do not match the total credits for the selected period. This can occur if you selected to exclude zero balance accounts,a zero balance account had transaction detail for the selected period,and the offsetting journal entry was to an account that did not have a zero balance.To verify that your general ledger is in balance,select the include zero balance accounts check box,reprint this report,and then verify,that the debits and credits amounts on the Report Total line thatch / f' EXHIBIT A.1 Wayside Letter Dated October 31,2012 12 Wayside - The Wayside Center Cross Ministries Doorway to Opportunity October 31,2012 Ms.Denise Momodu Associate Planner Community Development City of Elgin 150 Dexter Court Elgin,IL 60120 I Dear Denise, ` Thank you for all the effort that you and the city of Elgin have put forth on behalf of both the homeless and the organizations:that work with this at-risk population.I am not aware of any community that works together more effectively to end homeless and to assist the under-resourced than Elgin and the Fox VaAey. In many towns and cities,the homeless are very unsupported and visible,hanging out in public libraries,in businesses,in parks,and in j other public locations.Toting their belongings with them,they often do not have access to facilities for bathing i and grooming.We have found that by supporting the homeless with these services,they are actually able to escape homelessness faster. As a faith-based organization addressing the whole person,it is our desire to offer all the services of other social agencies with the addition of spiritual interventions.We appreciate how you have worked on our behalf to help secure funding through the Community Development Block Grant To give you an overview,we are open six days a week,8 am until 4 pm.We work closely with,share a portion of, and sublease our facility from P.A.D.S..As they provide nighttime shelter and services,we work with the homeless during the daytime hours,providing meals,shelter,and necessary services.Among the services we provide are storage lockers;access to phone,internet,and computer services;showers;laundry facilities;counseling and case management;job skill training;daily Bible studies;and clothing distribution. The people we work with may or may not take advantage of our Bible studies or offer for spiritual assistance. Nonetheless,our services are still freely available to them.The two Bible studies each day are predominantly volunteer led and are designed to help our guests get connected to churches and volunteers in the community. Participation in any of our services,religious and otherwise,is strictly voluntary and open to anyone. The portion of building that we sublease from P.A.D.S.is approximately 4,500 square feet We are generally open year-round 48 hours per week Of our space,approximately 25%(1200 sq.feet)is utilized in the evening and early morning for as much an addition five to six hours by P.A.D.S..A portion of this same space is where we have our Bible study.Less than 600 square feet of our total rented space is used for religious instruction one hour per day (two 30 minute segments). We hope that by providing spiritual interventions as an addition to all the other free services we provide for the homeless does not impact our eligibility for federal funding. Sincerely, l � e . + Phil Wood 441 Btr?T4ec-Arocrrrn £ - Elgin; Minols 60120-3f'rM • (847) 695-4405 Fax (847) 695-4657 www waysidecross.org EXHIBIT A.2 Lease Agreement Dated July 16, 2007 13 COMMERCL&I. UILDING SUBLEASE THIS LEASE AGREEMENT executed this day of 2007, by and between P.A.D.S. OF ELGIN, INC., an Illinois not-for-profit corpora n (hereinafter referred to as"Lessor") and Wayside Cross Ministries an Illinois not-for-profit corporation (hereinafter referred to as"Lessee"). Berkley Court Properties, L.L.C. will hereinafter be referred to as "owner". WITNESSETH: Article 1. PREMISES. Lessor, for and in consideration of the covenants and agreements hereinafter mentioned to be kept and performed by Lessee, hereby leases to Lessee a portion of the real estate commonly known as 1730 Berkley Court, Elgin, Illinois, and legally described in Exhibit"A"attached hereto and made a part hereof together with the benefit of all easements appurtenant thereto ("Building"). That portion of the Building being leased hereunder is identified as two offices in Unit A (Director's office and shared office) and shared smoking area; Unit B (minus one storage room) and shared conference room, computer networking, laundry and shower rooms; this is approximately thirty percent (30%) of the Building, a depiction of which is attached hereto as Exhibit B which shall hereinafter be referred to as the "Leased Premises." Article 2. TERM. 2.1 The original term of the Lease shall be for five (5) years 2.2 Lessee shall have the right to request an extension of this Lease for two (2) additional periods of five (5) lease years, provided it gives written notice thereof to Lessor at least six (6) months prior to the inception of each such additional period. Such extensions shall be dependent upon concurrence of Lessor and shall be exercisable only if Lessee is in good standing and all rents payable hereunder have been paid in full up to the date that the notice of extension is given. Article 3. BASE RENT. 3.1 Lessee agrees to pay $2,743 to Lessor (45% of Lessor's rent], as rent covering shared space in Units A&B of the Leased Premises for 2007. During a term of five (5)years, rent is payable monthly on the first day of each month. The base rent shall be increased on January 1 of each year by three percent (3%) per annum during any additional lease years: MONTHLY RENTAL RATE 2007 (6 months) $2743 2008 $2825 2009 $2910 2010 $2997 2011 $3087 2012 (6 months) $3180 3.2 Lessee agrees to pay $583 to Lessor (60% of Lessor's rent], as rent covering shared space in Unit C of the Leased Premises for 2007. During a term of five (5) years, rent is payable monthly on the first day of each month. The base rent shall be increased on January 1 of each year to the rates listed below: MO. RENTAL RATE (unit C) UNIT C TOTAL A, B &C 2007 ($5sf) (6 months) $583 $3326 2008 ($5.50sf) $641 $3466. 2009 ($6sf) $700 $3610 2010 ($6.50sf) $758 $3755 2011 ($7sQ $816 $3903 2012 ($7sf) (6 months) $816 $3996 7/11/2007 Page 1 Article 4. USE OF PREMISES. 4.1 Subject to the succeeding paragraphs of this Article 4, Lessee may use the Leased Premises for the following purpose: To provide daytime social services to disadvantaged and homeless persons including, but not limited to those described on the Exhibit D. 4.2 Lessee, agrees that, at all times during the term of this Lease, Lessee's use and occupancy of the Leased Premises shall conform to and comply with, at its own expense, all laws, ordinances and governmental regulations applicable to the Leased Premises including, but not limited to, all zoning ordinances, building codes and all pollution control laws, regulations and ordinances, and the conduct of Lessee's business therein shall at all times be in conformity with the requirements of all carriers of insurance on the Leased Premises. 4.3 Lessee will not allow the Leased Premises to be used for any purpose that will invalidate any insurance, and will not load floors with machinery or goods beyond the floor load rating prescribed by applicable municipal ordinances. Lessee will not permit the Leased Premises to be used for any unlawful purpose or for any purpose which constitutes a public or private nuisance or for any purpose that will increase the fire hazard of the Leased Premises, or discharge any pollutants into the sanitary sewage or storm sewer systems of the Leased Premises in contravention of applicable laws, ordinances or regulations, or disturb the neighborhood. Lessee agrees to maintain sufficient security and internal procedures such as to prevent the Lessee's occupants from interfering with other tenants'use and enjoyment of the Building and the parking facilities. Lessee agrees to maintain sufficient security and internal procedures to prohibit any loitering by Lessee's occupants in and about the Leased Premises and the adjoining walkways. 4.4 Lessee shall not commit, nor shall Lessee permit the committing of, any waste, nuisance, the emitting of any objectionable noise or odor, nor the sale, display, distribution or regular dispensing of any alcoholic liquors or beverages in or on the Leased Premises. 4.5 Lessee, along with PADS, shall have the shared use of twenty (20) parking spaces situated on the Leased Premises as follows: (i) eight (8) spaces east and adjacent of Leased Premises and (ii) twelve (12) spaces in the north parking lot. If Lessee needs additional parking spaces, parking spaces in the rear of the building may be available. If Lessee needs additional parking spaces, the building owner shall strive to make them available to Lessee. Lessee shall pay Ten Dollars ($10.00) per month per space for such additional parking spaces. 4.6 The Leased Premises are accessed by a common driveway shared with the building situated at 1700 Berkeley, Elgin, Illinois. Lessee shall have the non-exclusive use of any and all driveways and Lessee shall permit others the non-exclusive use of any driveway on the Leased Premises. Article 5. TAXES, ENCUMBRANCES AND INSURANCE COSTS. 5.1 As additional rent for the Leased Premises, Lessee shall pay, at the times and in the manner hereinafter provided, thirty percent (30%) of the general real estate taxes attributable to the Building which are levied and assessed because of an of increase in the real estate tax assessment in excess of its current assessment of Three Hundred Thousand Dollars ($300,000). In addition, Lessee shall pay as additional rent for the Leased Premises thirty percent (30%) of any special assessment or other imposition, ordinary or extraordinary of every kind whatsoever which may be levied and assessed upon the Real Estate. Lessee shall pay such real estate taxes at such time as the tax bills come due. 7/11/2007 Paget 3 i 5.2 Lessee shall pay to Lessor as additional rent for the Leased Premises thirty percent (30%) of any excess in premiums for casualty and liability insurance (with all endorsements) paid annually by building owner during the Lease term over the amount of Three Thousand Seven Hundred Thirteen and 50/100 ($3,713.50), (2006 insurance payment) which is incorporated in the Base Rent. Lessee shall be obligated to pay its share of only those annual premiums that relate to insurance coverage during the term of this Lease. Lessee's share of such excess premiums shall be paid by Lessee to Lessor within ten (10) days after Lessor bills Lessee therefore semi-annually. Article 6. INSURANCE. 6.1 At all times during the term of this Lease, Lessee, shall, with respect to the Leased Premises and Lessee's business operation thereon, procure and maintain, at Lessee's sole cost and expense, a policy or policies of insurance expressly insuring Lessor and building owner (Berkley Court Properties, LLC) as additional named insureds, as follows: Comprehensive General Public Liability Insurance against claims for personal injury, death or property damage occurring in connection with the use and occupancy of the Leased Premises, with a combined single limit of liability not less than One Million Dollars ($1,000,000.00); 6.2 With respect to the aforementioned policies of insurance which Lessee is required to procure and maintain hereunder: A certificate of insurance shall be furnished to Lessor; If Lessee furnishes any insurance in the form of a Blanket Policy, it will furnish satisfactory proof that such Blanket Policy complies in all respect to the provisions of this Lease and the coverage that would be provided under a separate policy covering only the Leased Premises; Each such policy shall be issued by insurers of recognized responsibility licensed to do business in the State of Illinois and acceptable to building owner. 6.3 Lessor and Lessee each hereby waive all claims for recovery or from the other or rights of subrogation against the other for any loss or damage to the Leased Premises except as may be otherwise provided in this Lease or to the contents of the building located on said Leased Premises where such loss or damage is insured by a valid and collectible insurance policy but only to the extent of any amount recovered from such insurer with respect to such loss; subject to the condition that this waiver shall be effective only when the waiver is permitted by such insurance policy and does not invalidate same. Article 7. RENOVATION OF PREMISES. 7.1 The Lessor and the Lessee acknowledge that renovation and alterations to the Leased Premises are required to accommodate Lessee's use of the Leased Premises for its intended purpose. The Lessor has agreed to fund initial renovations, including HVAC, to be completed prior to lessee occupying building. Unit B will be in move-in condition. Lessor will provide video monitors for the 1730 entrance and adjacent hallway. Unit C will have Heating unit installed, but otherwise be in "as is"condition. Lessor and building owner shall have the right to approve any and all alteration to be made by Lessee in or about the Leased Premises. 7/11/2007 - Page 3 7.2 Attached hereto as Exhibit C is a general plan for the initial remodeling of the Leased Premises and the parties agree to abide by such plan. 7.3 Lessor arid owner shall be responsible for complying with all municipal building codes and ordinances, including without linlitatiorl, the American Disability Act, all heating, air conditioning, ventilation, electrical, plumbing and mechanical systems will be delivered in good operating condition and in compliance with all municipal arid. other building codes. Article 8. CONDITI®N, KA%NTENANCE AND REPAIRS. 8.1 Lessee will provide resources acceptable to PADS or pay 48%of the repair and maintenance of the Leased Premises, including its component parts and mechanical systems all interior plumbing equipment and water pipes, sewer and gas pipes, drains, Crxtures, lighting, electrical, heating, air-conditioning, cooling and refrigeration equipment and all other equipment, apparatus and appurtenances to the Leased Premises and will keep the Leased Premises in a clean, healthful and safe condition and in accordance and in compliance with all applicable laws, ordinances and other governmental regulations, order and directions during the term of this Lease. 8.2 Any damage to, or destruction of, or repairs or replacements necessary to the Leased Premises directly or indirectly occasioned by or attributable to any act or omission.of Lessee or any agent, servant, employee, or invitee of Lessee shall be promptly repaired, restored or replaced by Lessee at Lessee's sole cost and expense. Should Lessee fail or neglect to make such repairs, restoration or replacement promptlywith or without notice from Lessor to do so, Lessor shall have the right to make all such necessary repairs, restorations or replacements at Lessee's expense and the costs of such, together with interest thereon as hereafter provided, shalt become additional rent payable in full on the first day of the month following the completion of such repairs, restoration or replacements. 8.3 Building owner-shall provide to PADS and Lessee the following services Refuse removal. Real estate tax protest. Fire alarm monitoring, maintenance and repair and telephone line. Snow plowing arid salting. Landscaping. Common area utilities. Exterior lighting maintenance. Parking lot sealing and coating expense and stripping expense. Fire sprinkler test. Back flow preventer test. Lessee agrees to pay thirty percent (30%) of such cosh as are related to the Building- Common Area Maintenance (CAM). At the present time Lessee's share of such costs would be .Eighteen Hundred sixty two Dollars ($1,862) per year. Building owner reserves the right to 7/11/2007 Page adjust the aforementioned figure to reflect annual increase in costs. Lessor shall invoice Lessee for such common area expense semi-annually. Lessor to provide Lessee with owner's receipts for charges paid for all of said services upon reasonable request. Lessee shall have the right to audit payments for all expenses listed herein. Article 9. UTILITY CHAR Lessee will, in addition to the rent above specified, pay 48%of all water and sewer charges, taxes or rents, heating and air conditioning energy costs, gas, electric, light and power bills and other utility bills levied on the Leased Premises. I Article 10. ALTERATIONS SAND IMPROVEMENTS. 10.1 Except as otherwise permitted herein, Lessee shall not, during the term of this Lease, make any structural or non-structural alterations, modifications, additions or deletions to or from the Leased Premises (hereinafter"Alternations") whatsoever, without in each instance the prior written consent of Lessor and building owner. Building owner shall give reasonable consideration to any request of Lessee to make any such Alterations if Lessee first shall have strictly complied with the following terms and conditions: (a) Lessee shall furnish to Lessor plans, specifications and working drawings covering any and all such proposed Alterations, for approval by Lessor, which approval shall not be unreasonably withheld or delayed by Lessor or building owner, so long as (1) such plans, specifications, and working drawings comply with all applicable municipal ordinances, and the rules, regulations and requirements of proper municipal officers promulgated pursuant thereto, (2) the. Alterations contemplated by such plans, specifications and working drawings will not, in the sole discretion of building owner, cause the value or usefulness of the Leased Premises to diminish or impair the structural integrity of the Leased Premises, and (3) such Alterations will not, in building owner's sole discretion, materially change the nature of character of the Leased Premises, will not decrease the desirability of said Leased Premises for future rental, and will not result in same not being in conformity with the existing zoning and building laws, codes, ordinances and regulations. (b) Lessee shall provide Lessor with all required permits, licenses and approvals issued by appropriate governmental units approving all Alterations to be completed. (c) Lessee shall provide Lessor with a schedule showing the total price of doing such Alterations and a detailed breakdown of all costs involved in such work. (d)* Lessee shall provide Owner with a contract with a bondable general contractor reasonably acceptable to Owner, needing only Lessee's execution thereon to be binding, pursuant to which said contractor contracts to undertake the Alterations shown in the plans and specifications described in subparagraph (a) hereof for the price described in the schedule provided pursuant to subparagraph (c) hereof. (e)* Lessee shall have demonstrated to owner's satisfaction the source or sources of funds necessary to pay for such Alterations. (f)* Lessee shall furnish Lessor with certificates of insurance from all contractors performing labor or furnishing material insuring Lessor against any and all liability which may arise out of or be connected in any way with such Alterations. I (g) Lessee shall be entitled to make non-structural alternations without the building owner's prior written consent provided that such alteration is made in a commercially reasonable manner and has an aggregate cost not to exceed Five Thousand Dollars ($5,000). j "Subparagraphs (d), (e), and (f) will only apply for alterations with aggregate cost over$5,000. i I 7/11 /9.007 PA Pre 5 10.2 Any such Alterations performed by Lessee shall be in quality at least equal to the original construction of the Leased Premises when the same was constructed, shall comply with all insurance requirements and shall comply with all applicable laws, regulations, ordinances and codes of all public authorities having jurisdiction thereover, and shall be done free and clear of all liens or claims for liens. Subject to paragraph 10.3 below, all such improvements resulting from such Alterations shall, at the termination or expiration of this Lease, become the property of Lessor and remain with the Leased Premises, 10.3 At the termination of this Lease, whether by lapse of time or otherwise, without compensation, allowance or credit to Lessee, Lessor may, but shall not be obligated to, require Lessee to remove from the Leased Premises any or all improvements and Alterations made by Lessee. If Lessor requests that any of such improvements or Alterations be so removed and Lessee refuses to do so, Lessor may remove or cause the removal of same and the expense to Lessor therefor, together with interest as hereafter provided shall become so much additional rent due hereunder. Article 11. SIGNS. Lessee may install one (1) exterior sign on the Leased Premises provided it is installed in such a manner so as not to cause damage to walls or structural members of the Building and that same are in compliance with all local graphics, zoning and building ordinances. Article 12. SURRENDER OF PREMISES. 12.1 Upon the termination of this Lease, whether by forfeiture, lapse of time or otherwise, or upon the termination of Lessee's right to possession of the Leased Premises, Lessee will at once surrender and deliver upon the Leased Premises, together with all improvements which were located thereon at the inception of this Lease and all improvements placed thereon by Lessee in good condition and repair, (reasonable wear and tear which is not required to be repaired by Lessee elsewhere in this Lease excepted). Said improvements shall include all plumbing, lighting, electrical, heating, cooling and ventilating fixtures and equipment and articles of personal property used in the operation of the Leased Premises (as distinguished from operations incident to the business of Lessee.), together with all duct work. All additions, hardware, non-trade fixtures and all improvements, temporary or permanent, in or upon the Leased Premises placed there by Lessee shall become Lessors property and shall- remain upon the Leased Premises upon such termination of this Lease by lapse of time or otherwise, without compensation or allowance or credit to Lessee, except that Lessor may require the removal of all improvements made by Lessee as provided elsewhere in this Lease. 12.2 Upon the termination of this Lease by lapse of time, Lessee may remove Lessee's trade fixtures and all of Lessee's personal property and equipment; provided, however, that Lessee shall repair any injury or damage to the Leased Premises which may result from such removals. If Lessee does not remove Lessee's furniture, machinery, trade fixtures and all other items of personal property of every kind and description from the Leased Premises prior to the end of the term, however ended, Lessor may, at its option, remove the same and deliver the same to any other place of business of Lessee or warehouse the same, and Lessee shall pay the cost of such removal (including the repair or any injury or damage to the Leased Premises resulting from such removal), delivery and warehousing to Lessor on demand, or Lessor may treat such property as having been conveyed to Lessor with this Lease as a Bill of Sale, without further payment or credit by Lessor to Lessee. i 7/11 /9.n07 Pace F i Article 13. NOTICES. Any notice or permitted under this Lease shall be deemed 'sufficiently given or served if personally delivered or delivered by certified mail (return receipt requested) to the parties as follows and either party may, by like notice, at any time and from time to time designate a different address to which notice shall be sent: If to lessor: PADS of Elgin, Inc. 1730 Berkley Court Elgin, IL 60123 and copy to: Dick Travis 2425 Royal Boulevard Elgin, IL 60123 If to Lessee: Wayside Cross Center 1732 Berkeley Court Elgin, IL 60123 Any notice mailed by certified mail as required above shall be conclusively deemed to have been received by the addressee on the second business day following the date of such mailing. Article 14. HEADINGS. The headings of the several sections contained herein are for convenience only and do not limit or construe the contents of such sections. Article 15. WARRANTIES OF LESSOR. Lessor represents and warrants (a) Lessor has full power and authority to execute and perform this Lease and to grant the estate demised herein, and (b) that if Lessee shall faithfully perform all of its obligations under the Lease to be performed, Lessee shall peaceably and quietly have, hold and enjoy the Leased Premises and all appurtenances during the full term of this Lease and any renewal hereof. Article 16. AUTHORITY OF LESSEE. Lessee represents and warrants (i) that it has been duly authorized by its shareholders and directors to execute this Lease and to perform the covenants set forth therein and (ii) that a certified copy of such enabling resolutions of said shareholders and directors shall be delivered to Lessor simultaneously with the execution of this Lease by Lessee. Article 17. SECURITY IDEPOSIT. To secure the faithful performance by Lessee of all of the covenants, conditions and agreements in this Lease, Lessee shall deposit with Lessor two month's rent. Lessor may apply such security deposit to cure any default by Lessee under the terms of this Lease that may exist from time to time, without prejudice to any other remedy or remedies that the Lessor may have. Upon termination of this Lease, Lessor shall return to Lessee any unused portion of the security deposit within thirty (30) days after the date of termination. IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the date first written above. LESSEE: LESSOR: i Waysid oss Mi t P.A.D.S. OF ELGIN, INC. By: By: James Lu se, ant on Barkby, Preside 7/11/2007 Pagel EXHIBIT B ASSURANCES The SUB-RECIPIENT hereby assures and certifies that it will comply with the regulations, policies, guidelines and requirements with respect to the acceptance and use of CDBG funds in accordance with the ACT and City of Elgin policies. Also, the SUB-RECIPIENT certifies with respect to the grant that: 1. It possesses legal authority to make a grant submission to the City and to execute a community development and housing program; 2. Its governing body has duly adopted or passed as an official act, a resolution, motion or similar action authorizing the person identified as the official representative of the SUB-RECIPIENT to execute the Agreement, all understandings and assurances contained herein, and directing the authorization of the person identified as the official representative of the SUB-RECIPIENT to act in connection with the execution of the Agreement and to provide such additional information as may be required. 3. Prior to submission of its application to the City, the SUB-RECIPIENT has: (A) Met the citizen participation requirements of 570.301(b) and has provided citizens with: (1) The estimate of the amount of CDBG funds proposed to be used for activities that will benefit persons of low and moderate income; and (2) Its plan for minimizing displacement of persons as a result of activities assisted with CDBG funds and to assist persons actually displaced as a result of such activities; (B) Prepared its application in accordance with the policies of the City of Elgin and made the application available to the public; 4. The grant will be conducted and administered in compliance with: (A) Title VI of the Civil Rights Act of 1964(Pub. L. 88-352 42 U.S.C. Sec 2000d et seq.) and implementing regulations issued at 24 CFR Part I; (B) Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-208), as amended; and that the SUB-RECIPIENT will administer all programs and activities related to housing and community development in a manner to affirmatively further fair housing; (C) Section 109 of the Housing and Community Development Act of 1974, as amended; and the regulations issued pursuant hereto; (D) Section 3 of the Housing and Urban Development Act of 1968, as amended; (E) Executive Order 1 1246-Equal Opportunity, as amended by Executive Orders 11375 and 12086, and implementing regulations issued at 41 CFR Chapter 60; (F) Executive Order 11063-Equal Opportunity in Housing, as amended by Executive Order 12259, and implementing regulations at 24 CFR Part 107; 14 (G) Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended, and implementing regulations when published in effect; (H) The Age Discrimination Act of 1975 (Pub. L. 94-135), as amended, and implementing regulations when published for effect; (I) The relocation requirements of Title II and the acquisition requirements of Title III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and the implementing regulations at 24 CFR Part 42, as required under 24 CFR 570.606; (J) The labor standards requirements as set forth in 24 CFR Part 570, Subpart K and HUD regulations issues to implement such requirements; (K) Executive Order 11988 relating to the evaluation of flood hazards and Executive Order 11738 relating to the prevention,control and abatement of water pollution.. (L) The flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (Pub. L. 93-234); (M) The Fair Housing Act(42 U.S.C. 3601-20); 5. Its notification, inspection, testing and abatement procedures concerning lead-based paint will comply with 570.608 and 24 CFR Part 35; and 6. When a grant is in excess of $100,000 it will comply with all applicable standards, orders, or requirements issued under Section 308 of the Clean Air Act (42 U.S.C. 1857(h), Section 508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and Environmental Protection Agency regulation (40 CFR Part 15), which prohibit the use under nonexempt Federal contracts, grants or loans, of facilities included on the EPA list of Violating Facilities. The provision shall require reporting of violations to the City, HUD, and to the AESOP Assistant Administrator for Enforcement(EN-329). 7. It has developed its application so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight; (the application may also include activities which the SUB-RECIPIENT certifies are designed to meet other community development needs having a.particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community,and other financial resources are not available); 8. It is following the current City of Elgin Consolidated Plan which has been approved by HUD pursuant to 570.306; and 9. It will not attempt to recover any capital costs of public improvements assisted in whole or in part with funds provided under Section 106 of the ACT or with amount resulting from a guarantee under Section 108 of the ACT by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements, unless: (1) funds received under Section 106 of the ACT are used to pay the proportion of such fee or assessment that relates to the capital costs of such public improvements that are financed from revenue sources other than under Title I of the ACT; or (2) for purposes of assessing any amount against properties owned 15 and occupied by low and moderate income persons, the SUB-RECIPIENT certifies that it lacks sufficient funds received under Section 106 of the ACT to comply with the requirements of subparagraph(1) above. 10. The SUB-RECIPIENT certifies that it will provide a drug-free workplace by: (A) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the SUB- RECIPIENT'S workplace and specifying the actions that will be taken against employees for violation of such prohibition; (B) Establishing a drug-free awareness program to inform employees about: (1) The dangers of drug abuse in the workplace; (2) The SUB-RECIPIENT'S policy of maintaining a drug-free workplace; (3) Any available drug counseling,rehabilitation, and employee assistance programs; and (4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace. (C) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (A); (D) Notifying the employee in the statement required by paragraph (A) that, as a condition of employment under the grant, the employee will: (1) Abide by the terms of the statement; and (2) Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction; (E) Notifying the City of Elgin's Community Development Department within ten (10) days after receiving notice under subparagraph (D)(2) from an employee or otherwise receiving actual notice of such conviction; (F) Taking one of the following actions, within 30 days of receiving notice under subparagraph(D)(2), with respect to any employee who is so convicted: (1) Taking appropriate personnel action against such an employee, up to and including termination; or (2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; (G) Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs (A), (B), (C), (D), (E) and(F). 11. It has adopted and is enforcing a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations. 12. In regards to lobbying, the SUB-RECIPIENT certifies: 16 � y (A) No Federal appropriated funds have been paid or will be paid, by or on behalf of the SUB-RECIPIENT, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant,loan, or cooperative agreement. (B) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (C) The SUB-RECIPIENT shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than S 10,000 and not more than $100,000 for each such failure. 17 EXHIBIT C EQUAL EMPLOYMENT OPPORTUNITY CERTIFICATION Community Development Block Grant Program City of Elgin The undersigned understands and agrees that it is a SUB-RECIPIENT of the Community Development Block Grant Program of the City of Elgin. The undersigned also agrees there shall be no discrimination against any employee who is employed in carrying out work from the assistance received from the City of Elgin and the Department of Housing and Urban Development, or against any applicant for such employment, because of race, color, religion, sex, age or national origin, including but not limited to employment, upgrading, demotion or transfer; recruitment or recruitment advertising; lay off or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The SUB-RECIPIENT further agrees to the following: (1) It will incorporate or cause to be incorporated into any grant contract, loan, grant insurance or guarantee involving Federally assisted construction work, or modification thereof, which is paid for in whole or in part with funds obtained from the Community Development Block Grant program, the language contained in HUD Equal Employment Opportunity Regulations at 42 CFR 130.15(b), in Executive Order 11246, as amended by Executive Orders 11375 and 12006, and implementing regulations issued in 41 CFR Chapter 60. (2) It will be bound by said equal opportunity clause with respect to its own employment practices when it participates in any Community Development Block Grant Program construction. (3) It will assist and cooperate actively with the City of Elgin, the Department of Housing and Urban Development and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations and relevant orders of the Secretary of Labor. (4) It will furnish the City of Elgin, the Department of Housing and Urban Development and the Secretary of Labor such information as they may require for the supervision of such compliance, and will otherwise assist the City of Elgin and the Department of Housing and Urban Development in the discharge of primary responsibility for securing compliance. (5) It will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from or who has not demonstrated eligibility for government contracts and federally assisted construction contracts pursuant to the Executive Order. (6) It will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the Secretary of Labor, the City of Elgin or the Department of Housing and Urban Development. (7) In the event that SUB-RECIPIENT fails or refuses to comply with the undertaking, the City of Elgin, or the Department of Housing and Urban Development may take any or all of the following actions: cancel, terminate or suspend, in whole or in part, this grant, refrain from extending any further assistance to the SUB-RECIPIENT until satisfactory assurance of future 18 compliance has been received; and refer the case to the Department of Housing and Urban Development for appropriate legal proceedings. SUB-RECIPIENT: Wayside Cross Ministries 1732 Berkley Street, Elgin, Illinois, 60123 BY: V"x" A, Wood, Executive Director DATE: 1 ATTEST: =PUBLIC L BA OF ILLINOIS ES:10117115 19