HomeMy WebLinkAbout07-29 Resolution No. 07-29
RESOLUTION
AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH
THE BOYS AND GIRLS CLUB OF ELGIN
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
Olufemi Folarin,City Manager,and Dolonna Mecum,City Clerk,be and are hereby authorized and
directed to execute a Purchase of Service Agreement on behalf of the City of Elgin with the Boys and
Girls Club of Elgin for youth programs,a copy of which is attached hereto and made a part hereof by
reference.
s/Ed Schock
Ed Schock, Mayor
Presented: February 14, 2007
Adopted: February 14, 2007
Omnibus Vote: Yeas: 7 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
s/Jennifer Quinton
Jennifer Quinton, Deputy City Clerk
PURCHASE OF SERVICE AGREEMENT
THIS AGREEMENT is made and entered into thisll"\ day
of -e, jj�ua( , 2007, by and between the CITY OF ELGIN, Illinois,
a municipal 4orporation (hereinafter referred to as the "City" ) ,
and BOYS AND GIRLS CLUB OF ELGIN , a not-for-profit corporation
organized and existing under the laws of the State of Illinois
(hereinafter referred to as the "Service Provider" ) .
WHEREAS, the City has determined that it would serve a
beneficial public purpose to enter into an agreement with the
Service Provider for the Service Provider to provide certain
contract services as described in this agreement ; and
WHEREAS, the Service Provider represents that it has the
necessary expertise and experience to furnish the Subject Services
upon the terms and conditions set forth in this agreement .
NOW, THEREFORE, in consideration of the mutual promises and
covenants contained herein, the sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows :
1 . The Service Provider shall provide all of the services
pursuant to the terms and conditions and on the dates and times as
described in the document entitled Boys and Girls Club of Elgin-
Scope of Services for 2007 Purchase of Service Agreement, attached
hereto as Exhibit A and made a part hereof (such services including
the terms, conditions, dates and times are hereinafter referred to
as the "Subject Services" ) . In the event of any conflict between
the provisions of this agreement and the provisions in Exhibit A,
the provisions of this agreement shall control . The Service
Provider represents and warrants that the Service Provider has the
skills and knowledge necessary to conduct the Subject Services
provided for in Exhibit A and that the Subject Services set forth
in Exhibit A are integral parts of this agreement and may not be
modified, amended or altered except by a written amendment to this
agreement agreed to and executed by both parties hereto.
2 . The Service Provider shall address all inquiries and
requests made pursuant to this agreement to the Assistant City
Manager of the City or his designee .
3 . In connection with the Subject Services to be performed
on other than City properties, the Service Provider warrants and
agrees to maintain all facilities and equipment used in the
performing of the Subject Services in a clean, sanitary and safe
condition and free from defects of every kind whatsoever. Service
Provider agrees and warrants that the Service Provider will
periodically inspect all of such facilities and equipment for such
purposes . Service Provider also warrants that the Service Provider
and the Service Provider' s facilities and equipment used in the
performing of the Subject Services are not now, nor shall be during
the term of this agreement in violation of any health, building,
fire or zoning code or regulation or other applicable requirements
of law. In connection with the Subject Services on properties
owned or controlled by the City, Service Provider agrees and
warrants to use, and to cause persons participating in the Subject
Services to use, through proper supervision and control , all
facilities with due care, and to report all defects in or damage to
any such facilities, and the cause thereof, if known, immediately
to the Assistant City Manager of the City.
4 . The City shall reimburse the Service Provider for the
Subject Services under this agreement the total amount of One
Hundred Fourteen Thousand Dollars ($114 , 000) . Such payment by the
City to the Service Provider shall be made in one installment of
One Hundred Fourteen Thousand Dollars ($114 , 000) . The first
aforementioned installment payment shall be made within thirty days
of the date of this agreement .
5 . The Service Provider shall apply the monies to be paid by
the City to the Service Provider pursuant to the proceeding
paragraph hereof solely to operating expenses such as staff salary
and benefits, meeting expenses, and expenses associated with the
Subject Services to be provided by the Service Provider pursuant to
this agreement .
6 . The Service Provider shall complete, maintain and submit
to the Assistant City Manager of the City, or his designee, any and
all records, reports and forms relating to the Subject Services in
this agreement as requested by the City. Without limiting the
foregoing, the parties further agree as follows :
A. The Service Provider shall provide a budget to
the City which shall reflect the projected
distribution of funds received from the City
pursuant to this agreement during the term of
this agreement . The budget shall be submitted
to the Assistant City Manager of the City prior
to any payment by the City.
B. The Service Provider shall provide written
performance reports detailing the disbursements
of the monies to be paid by the City to the
Service Provider pursuant to this agreement .
The reports shall be provided to the City
-2-
quarterly on March 31, 2007; June 30, 2007 ;
September 30 , 2007; and December 31 , 2007 .
C. The City has the right to review all accounting
records of the Service Provider related to the
use of the monies to be paid by the City to the
Service Provider pursuant to this agreement
upon 72 hours advance notice from the City to
the Service Provider.
D. The Service Provider shall have an audit
performed on its financial statements for the
year ending December 31, 2006 . The audit must
be performed by an independent certified public
accountant recognized in good standing by the
American Institute of Certified Public
Accountants and licensed in the State of
Illinois . The Service Provider shall provide
the City with two copies of the said audited
financial statement along with the management
letter and any other correspondence related to
internal control matters on or before July 15,
2007 . These statements shall be submitted to
the Assistant City Manager at City Hall, 150
Dexter Court, Elgin, Illinois 60120-5555 .
7 . In the event this agreement is terminated, or in the
event the Subject Services for which the City funds provided herein
are to be applied are discontinued, or the Service Provider ceases
its operations prior to December 31, 2007, the Service Provider
shall refund to the City on a prorated per diem basis the funds
paid hereunder for the portion of the year remaining after any such
termination or for the portion of the year the Subject Services
were not conducted.
8 . Service Provider agrees and warrants that the Service
Provider has procured all licenses, permits or like permission
required by law to conduct or engage in the Subject Services
provided for in this agreement, and that the Service Provider will
procure all additional licenses, permits or like permission
hereinafter required by law during the term of this agreement, and
that the Service Provider will keep same in full force and effect
during the term of this agreement . Service Provider shall perform
the Subject Services with due care and in compliance with all
applicable legal requirements .
9 . The City of Elgin shall be recognized as a sponsor of the
Service Provider and shall receive the benefits of sponsorship
-3-
consistent with the level of support provided in this agreement .
At a minimum, the City' s support shall be acknowledged on all print
materials promoting the Service Provider' s organization, press
releases, radio advertising, web page information and event
program(s) through the following mandatory funding identification
statement : "Funding for the organization is provided in part
through the City of Elgin" . Three samples of this acknowledgement
shall be provided to the City. A logo provided by the City to the
Service Provider shall be used for this purpose .
10 . In all printed materials in which a City seal or logo is
deemed appropriate, approval by the Public Information Officer of
the City is required prior to printing.
11 . The term of this agreement shall commence from the date
of the execution hereof and continue through December 31, 2007 .
12 . This agreement shall not be construed so as to create a
partnership, joint venture, employment or other agency relationship
between the parties hereto. Service Provider understands and
agrees that the relationship of the Service Provider to the City
arising out of this agreement shall be that of an independent
contractor. It is expressly agreed and understood that the Service
Provider and the Service Provider' s officers, employees and agents
are not employees of the City and are not entitled to any benefits
or insurance provided to employees of the City.
13 . If either party violates or breaches any term of this
agreement, such violation or breach shall be deemed to constitute a
default, and the other art has the right to seek administrative
party
contractual or legal remedies as may be suitable to the violation
or breach; and, in addition, if either party by reason of any
default, fails to within fifteen (15) days after notice thereof by
the other party to comply with the conditions of the agreement, the
other party may terminate this agreement . Notwithstanding the
foregoing, or anything else to the contrary in this agreement, no
action shall be commenced by the Service Provider against the City
for monetary damages . In the event any legal action is brought by
the City for the enforcement of any of the obligations of the
Service Provider in this agreement and the City is the prevailing
party in such action, the City shall also be entitled to recover
from the Service Provider reasonable interest and reasonable
attorney' s fees .
14 . Notwithstandinganyotherprovision hereof, the Citymay
terminate this agreement at any time upon thirty (30) days prior
written notice to the Service Provider. In the event this
agreement is so terminated, the Service Provider shall be paid for
-4-
services actually performed, and reimbursable expenses actually
incurred prior to termination, except that reimbursement shall not
in any event exceed the total amount set forth under paragraph 4
above. Additionally, in the event this agreement is so terminated,
the Service Provider shall immediately cease the expenditure of any
funds paid to the Service Provider by the City and shall refund to
the City any unearned or unexpended funds .
15 . To the fullest extent permitted by law, Service Provider
agrees to indemnify, defend and hold harmless the City, its
officers, employees, agents, boards and commissions from and
against any and all claims, suits, judgments, costs, attorney' s
fees, damages or other relief, including but not limited to
worker' s compensation claims, in any way resulting from or arising
out of negligent actions or omissions of the Service Provider in
connection herewith, including negligence or omissions or agents of
the Service Provider arising out of the performance of this
agreement and/or the Subject Services . 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 expiration and/or termination of this agreement .
16 . The Service Provider shall provide, pay for and maintain
in effect, during the term of this agreement, comprehensive
automobile liability insurance covering all owned, non-owned and
hired motor vehicles used in connection with the Subject Services
with limits of not less than $500, 000 per occurrence for damages to
persons or property. The Service Provider shall also provide, pay
for and maintain in effect, during the term of this agreement,
worker' s compensation insurance in amounts required under the laws
of the State of Illinois . At the request of the City the Service
Provider shall provide to the City certificates of insurance
regarding the insurance required in this paragraph.
17 . No official, director, officer, agent or employee of the
City shall be charged personally or held contractually liable under
any term or provision of this Agreement or because of their
execution, approval or attempted execution of this Agreement .
18 . In all hiring or employment made possible or resulting
from this Agreement, there shall be no discrimination against any
employee or applicant for employment because of sex, age, race,
color, creed, national origin, marital status, of the presence of
any sensory, mental or physical handicap, unless based upon a bona
fide occupational qualification, and this requirement shall apply
to, but not be limited to, the following: employment advertising,
-5-
layoff or termination, rates of pay or other forms of compensation
and selection for training, including apprenticeship.
19 . No person shall be denied or subjected to discrimination
in receipt of the benefit of any services or activities made
possible by or resulting from this Agreement on the grounds of sex,
race, color, creed, national origin, age except minimum age and
retirement provisions, marital status or the presence of any
sensory, mental or physical handicap. Any violation of this
provision shall be considered a violation of a material provision
of this Agreement and shall be grounds for cancellation,
termination or suspension, in whole or in part, of the Agreement by
the City.
20 . The parties intend and agreed that, if any paragraph,
sub-paragraph, phrase, clause or other provision of this Agreement,
or any portion thereof, shall be held to be void or otherwise
unenforceable, all other portions of this Agreement shall remain in
full force and effect .
21 . This Agreement and its exhibits constitutes the entire
Agreement of the parties on the subject matter hereof and may not
be changed, modified, discharged or extended except by written
amendment duly executed by the parties . Each party agrees that no
representations or warranties shall be binding upon the other party
unless expressed in writing herein or in a duly executed amendment
hereof .
22 . This Agreement shall be deemed to have been made in, and
shall be construed in accordance with the laws of the State of
Illinois . Venue for the resolution of any disputes or the
enforcement of any rights pursuant to this agreement shall be in
the Circuit Court of Kane County, Illinois .
23 . The Service Provider certifies hereby that it is not
barred from bidding on a public contact as a result of a violation
of 720 ILCS 5/33E et seq. or any similar state or federal statute
regarding bid rigging.
24 . As a condition of this contract, the Service Provider
shall have written sexual harassment policies that include, at a
minimum, the following information:
A. the illegality of sexual harassment;
B. the definition of sexual harassment under state law;
C. a description of sexual harassment, utilizing examples;
D. the vendor ' s internal complaint process including
penalties;
-6-
E . the legal recourse, investigative and complaint process
available through the Illinois Department of Human
Rights, and the Illinois Human Rights Commission;
F. directions on how to contact the department and
commission;
G. protection against retaliation as provided by Section
6-101 of the Human Rights Act .
A copy of the policies must be provided to the Department
of Human Rights upon request (775 ILCS 5/2-105) .
25 . All notices, reports and documents required under this
Agreement shall be in writing and shall be mailed by First Class
Mail , postage prepaid, addressed as follows :
As to the City: As to Service Provider:
City of Elgin Boys and Girls Club of
Elgin
150 Dexter Court 361 Hickory Place
Elgin, IL 60120-5555 Elgin, IL 60120
Attention: Sean Stegall Attn: Rose Reinert
Assistant City Manager Executive Director
With a copy to :
William A. Cogley, Corporation Counsel
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
26 . This agreement is and shall be deemed to construe to be
a joint and collective work product of the City and the Service
Provider and, as such, this agreement shall not be construed
against the other party, as the otherwise purported drafter of
same, by any court of competent jurisdiction in order to resolve
any inconsistency, ambiguity, vagueness or conflict, if any, of the
terms and provisions contained herein.
27 . This agreement shall be binding on the parties hereto
and their respective successors and permitted assigns . This
agreement and the obligations herein may not be assigned by the
Service Provider without the express written consent of the City
which consent may be withheld at the sole discretion of the City.
IN WITNESS WHEREOF, the undersigned have entered into executed
this agreement on the date and year first written above .
-7-
CITY OF ELGIN, a municipal Boys and Girls Club of Elgin
corporation
By \ By "tt ' ' 1
Ci nager ' Executive Director
Attest :
(ILL Alosst
City Clerk
.ciA214/1
-8-
EXHIBIT A
Boys and Girls Club of Elgin- Scope of Services
2007 Purchase of Service Agreement
The Boys & Girls Club of Elgin shall inspire and enable all young
people, especially those from disadvantaged circumstances, to
realize their full potential as productive, responsive and caring
citizens through outreach efforts and programs targeted to provide
a safe place for children to learn and grow, to provide ongoing
relationships with caring, adult professionals, to offer life-
enhancing programs and character development experiences, and to
create hope and opportunity in our members' lives .
1 . Youth development services provided under this purchase of
service agreement include the following: after-school programming
for children between 5- and 18-years-old (see paragraph two for
core program areas and paragraph three for specific programs) ;
community outreach for membership purposes; and family nights
focused on educational opportunities in areas identified in the
community needs assessment .
2 . The Boys and Girls Club of Elgin shall offer programs under
the following core program areas : Education & Career Development;
Health and Life Skills; Character Leadership Development; The Arts;
and Sports, Fitness and Recreation.
3 . The Boys and Girls Club of Elgin will focus city funding on
the Dundee Avenue Clubhouse and the operating expenses of the Club.
Operating expenses include all of the following budget expense
classifications found in the United Way of Elgin' s budget
worksheets : salaries, benefits, payroll taxes, professional fees,
office supplies, program supplies, postage, telephone, occupancy,
equipment rental & maintenance, printing & publications, travel ,
conferences & meetings, assistance to individuals, membership dues,
awards & grants, fees & charges, insurance, payment to affiliate
organizations, other expenses, depreciation, and fundraising
expenses . The following programs at the Dundee Avenue clubhouse
will primarily be targeted for support from this purchase of
service agreement : Power Hour, Project Learn, Career Launch, Money
Matters, Goals for Graduation, Smart Moves, Smart Girls, Street
Smart, Passport to Manhood, World of Difference, Real Men Cook,
Girls Cooking, Teen Chat, Kids In Control, Cavity Free Zone, Torch
Club, Keystone Club, Junior Staff, General Arts & Crafts, Choir,
Drill Team, Games Room, Basketball , Fitness Fanatic, Swimming,
Skill Tech, MovieTech, Music Tech, WebTech, Net Smartz, and Cyber
Café . If additional grant monies or fundingis received for
programs specific to the Dundee Avenue Clubhouse, funds may be
-9-
allocated to additional, under funded programs either at the Dundee
Avenue clubhouse, Ellis Middle School , or Larsen Middle School .
F:\Recreation\PSA Agreements\Boys and Girls Club\Boys and Girls Club PSA Agreement 2007.doc
-10-
BOYS AND GIRLS CLUB OF ELGIN, INC.
FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2005 AND 2004
CONTENTS
PAGE
Independent Auditor's Report 9
Statements of Financial Position 2
Statements of Activities and Changes In Net Assets 3
Statements of Functional Expenses 4-5
Statements of Cash Flows 6
Notes to Financial Statements 7-12
MICHAEL C. WALSH & ASSOCIATES, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
Michael C. Walsh, C.P.A. 1595 Weld Road
Brenda L. Reynolds, C.P.A. Elgin, IL 60123
(847)695-2700
200 Hillcrest Avenue
Yorkville, IL 60560
(630) 553-6566
Independent Auditor's Report
The Board of Directors •
Boys and Girls Club of Elgin, Inc.
Elgin,IL 60120
We have audited the accompanying statement of financial position of Boys and Girls Club of Elgin, Inc. (a not
for profit corporation) as of December 31, 2005 and 2004, and the related statements of activities and changes
in net assets,functional expenses and cash flows 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 financial
statements based on our audit.
We conducted our audit 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 assurance about
whether the financial statements are free of material misstatement. An audit Includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also indudes
assessing the accounting principles used and significant estimates made by management,as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis for our
• opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of Boys and Girls Club of Elgin, Inc_ as of December 31, 2005 and 2004, and the changes in its net
•
assets and cash flows for the years then ended in conformity with accounting principles generally accepted in
the United States of America.
•
Elgin,Illinois
February 15,2006
-1-
BOYS AND GIRLS CLUB OF ELGIN, INC.
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31,2005 AND 2004
2005 2004
ASSETS
Current Assets:
Cash and cash equivalents $ 272,667 $ 178,243
Grants receivable(Note 9) 17,873 27,974
United Way pledge receivable 20,000 15,000
Capital Campaign pledge receivable,
current portion(Note 11) 30,700 -
Other pledges receivable 5,146 1,805
Prepaid expenses 6,715 3,248
Total Current Assets 353,101 226,270
Noncurrent Assets:
Cash restricted-Capital Campaign fund (Note 11) 39,890 -
Cash restricted-Endowment Fund (Note 8) 10,687 8,587
Capital Campaign pledge receivable,
non-current portion (Note 11) 357,136 -
407,713 8,587
Property and Equipment:(Notes 1 and 3)
Land 70,000 70,000
Building and building improvements 219,541 219,541
Equipment 61.957 61,957
Vehicle 22,294 22,294
Accumulated depreciation (98,987) (84,994)
274,805 288,798_
Property held for expansion 92,749 92,749
Total Assets $ 1,128,368 $ 616,404
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable $ 2,241 $ 12,002
Accrued expense 11,138 9,057
Refundable advanr.e (Note 6) - 15,611
Deferred revenues 21,390 1,320
Payroll taxes payable 4,134 5,952
Mortgage payable(Note 3) 113,135 113,135
152,038 157,077
Long-term debt:
Mortgage payable(Note 3) 75,000 75,000
Net Assets:
Unrestricted 449,535 343,951
Temporarily restricted 441,108 31,789
Permanently restricted 10,687 8,587
Total Net Assets 901,330 384,327
Total Liabilities and Net Assets $ 1,128,368 $ 616,404_
The accompanying notes are an integral part of this financial statement.
-2-
r
BOYS AND GIRLS CLUB OF ELGIN,INC.
STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31,2005 AND 2004
_ 2065 2004
Temporarily Permanently Temporarily Permanently
Unrestricted Restricted Restricted Total Unrestrlctod Restricted Restricted Total
Revenues and other support:
Contributions:
United Way $ 39,998 - • 38.898 30,000 - - 30,000
Campaign for lads 67,496 - - 67.498 57,061 1,000 58,061
Private Foundations 56,550 2,100 58.650 41,150 7,930 980 50,040
Elgin Courier News(In-Kind) 23,716 - - 23.716 20,563 • - 20,563
Donated building(In-Kind)
355 Dundee Ave(Nato 4) - - • - 145,000 - 145,600
Other On-Kind$16,416 for 2005) 49,095 - • 49,095 44,661 - - 44,661
Capital Campaign:(Note 11)
Pledge income - 457,500 - 457,500 - - - -
Campaign expense (29,773) • - (29.773) - - - -
Grants:
Teen Roach Grant 69,952 - - 69,952 83,228 - - 83,228
Grand Victoria Foundation - - - - 25,000 15.000 • 40,000
IL Dept of Commerce-Economic Opportunity 15,511 - - 15,611 21,5134 - - 21.584
IL Board of Education 21st Century 151,035 - • 151,035 37,501 - - 37,501
Micro SoftSoftwero(In•Klnd) - - - - 45.337 - - 45,337
City of Elgin
Purchase of Service Contract(Note 2) 114.000 - - 114,000 114,000 - - 114,000
Community Development Grant 13,460 - - 13,480 11,520 - - 11,520
Elgin Township 5,000 5,000 - 10,000 - - _ _
Membership Duos(In-}0nd 31,750 for 2005) 4,719 - 4,719 2,078 - - 2,875
Fund Raising:
Duck Race:
Revenue 230.648 - 230,948 180,074 • - 180,074
F_xpenso(In-Kind$137,150 In 2005,599,052 in 2004) (178,084) - - (176,084) (134,802) - - (134,802)
Golf Outing:
Revenue 45,447 - - 45,447 15,790 - - 15,780
Exponso(ln-Und$5,500 In 2005) (21,044) - - (21,044) (4,709) • - (4,709)
Annual Dinner,
Revenue 37.035 - - 37,035 28,631 - 26,631
Epense (8,495) - - (8,495) (7,518) - - (7,518)
Investment Income 2,671 92 - 2,963 932 48 981
Not Assets Released from Restrictions
Expiration of Time 53,273 (53273) - - - 20,000 (20,000L _ - -
Total Revenue and
Other Support 745,632 409,319 2,100 1,156,251 775,776 3,976 960 780,715
Exronses
Program Sor.1cea 483,005 - - 483,005 455,323 - - 455,323
Genera)Administrative 53,622 53,622 58,548 - 58,548
Fund Raising 104.621 - - 104,621 84,543 - - 84,543
Total Expensos 641,248 . 641,248 598,414 - - 598,414
Change ln Net Assets 105,5134 409,319 2,100 517,003 177,382 3,979 850 182,301
NetAssot.beginning of year 343,951 31,769 8,587 384,327 166,569 27,810 7,627 202,026
NetAssote,and of year 5 449,535 441,108 10,687 901,330 343 951 r 31,788 8,587 384,327
The accompanySng nolee are an Integral part of this financial statement.
-3-
BOYS AND GIRLS CLUB OF ELGIN, INC,
STATEMENT OF FUNCTIONAL.EXPENSES
YEAR ENDED DECEMBER 31,2005
Education Health Character& Sports E41s Larsen
Career &Life Leadership The Flames& Technology Middle Middle Total General& Fund
Development Skills Development Arts Recreation Programs School School Programs Administration Raising Total
Expenses:
Direct Expense
Porsonnol
Salaries $ 29,978 8,042 4,304 15,952 38,596 27,105 27.821 82,364 243,962 31,772 51,165 326,919
Employee Benefits 3,612 959 508 1,860 4,460 2,060 1,659 3,099 18217 2,801 6,182 27,200
PayrollTaxos 3,468 1,083 496 1,808 4,291 3,534 3,952 13,817 32,269 3,628 5,150 41,048
Prog'amSupplies 18 299 557 170 153 5,638 1,056 43,411 51,300 (320) 18,875 67,855
Travel-Larson Bus - - - - • - - 7,849 7,849 - • 7,849
Awards&Grards • - - - - - - - • 1,750 - 1,750
interest, Foes&Charges - 85 - - - - - - 65 1,433 335 1,853
Conforoncos&Mootings - - - - - - • - - - 18,430 18,430
Professional Foes • - - - - - - - • 45,373 45,373
Postage - - - - - - - • - 3,845 3,845
Printing • - - - - - - - - - 1,919 1,919
Insurance - - - - - - - - • 2,500 2,500
Other Expense - • - - - - - - 1,604 1.804
In Kind Expenses - - - • - - - - - 158,365 186.368
Fund Raising Expense • - - - - - - - - - 4.483 4,483
Total Direct 37,098 10,468 5,865 19,760 47,500 38.335 34.288 160,340 353,1382 41.085 324,447 719,194
indirect
Professional Fees 1,726 1,720 1,726 1,726 1,658 1,579 1,472 1,990 13,801 1,320 1,430 18,351
Offtco Supplies 349 349 348 349 335 320 298 403 2,752 288 291 3,311
Program Supplies 310 310 310 310 298 284 264 358 2,444 237 257 2,836
Postago 302 302 302 302 290 278 257 348 2,379 231 250 2,860
Telephone 276 278 276 276 265 253 236 318 2,178 211 230 2,617
Occupancy 2,405 2,405 2,405 2,405 2,309 2,202 2,051 2,774 18,958 1,841 1,998 22,793
Equl pment Rental&
Maintenance 656 658 656 656 630 601 580 757 5.172 504 545 8221
Printing&PubiicaUons 748 748 748 748 719 685 639 883 5.898 573 624 7,095
Travel 1.652 1,652 1,652 1,652 1,585 1,512 1A09 1,905 13,019 1,265 1.387 15,651
Conferences&Meetings 690 689 690 691 681 631 588 795 5.435 527 569 6,531
Assistonce to individuals 1,873 1,673 1,673 1,073 1,604 1,530 1.426 1.928 13.180 1,280 1,380 15,840
Mombership Dues 216 216 216 216 207 188 184 249 1,702 167 181 2,050
Insurance 2,560 2,560 2,560 2,561 2,457 2,343 2,182 2,951 20.174 1,960 2,118 24,252
Payments to Altltated Org. 686 688 686 886 658 627 584 790 5,403 525 568 8,484
Other Expense 584 584 584 585 561 535 498 674 4,605 448 486 5,539
Advertising 06 96 96 96 93 88 82 111 758 74 82 814
De pc 1,478 1,478 1,478 1.478 1,422 1,.51 1275 1,709 11.669 1,128 1,198 13,993
Total Indirect Expenses 16,407 16,4013 18,407 18,410 15,750 15.015 14,005 18,923 129.323 12,557 13,570 155,450
Total Expenses 53,503 26.874 22,272 36200 63,250 53,350 48,293 179283 433,005 53,622 338,017 874,644
Fund Raising Expenses Included
In Revenue Section of
Statement of ActiviUes - - - - - - - - - (233,398) (233,396)
53,503 28,874 22,272 38,200 63,250 53,350 46,293 179,263 483.005 53,622 104,621 641,248
I The accompanying notes are an Integral part of this financial statement.
-4-
BOYS AND GIRLS CLUB OF ELGIN,INC. .
STATEMENT OF FUNCTIONAL EXPENSES
YEAR ENDED DECEMBER 31,2004
EducatIon Health Character 8 Sports Ells Larsen
Greer &Uro Leadership The Fitness& Tecttinolopy Middle Middle Total General& Fund
Devefgment Skills Development Ale Re/crea'lon Programs Schad School Programs AdminfaCm8on noising Total
F1rrnAC9. _ ..•
Direct aperue
Professional Feos S - - • 130 - - 130 938 17.531 19,599
program Supplies 5.631 1,570 1,890 2.018 2,433 873 1,208 15.623 50 11,303 26,976
Portage - - - - - - • - - 184 3,989 4,173
Printing&Publications - - - - - - • 589 4,195 4,784
Travel 394 - 606 • - - - 760 1,760 89 - 1,869
Co erences&Meetings - - 348 - 526 - • - 874 1,094 9,657 11.625
AsIStaecetofrloMduela 34 34 34 34 32 32 • - 200 • - 200
Awards&Grants - - - - - - - - 1,750 . 1,750
Interest.Fees.&(Merges - - - - - - 337 • 307
insurance - - - - - - - - • 2.500 2,500
Other Expense - - - - • 760 - - 780 -194 1,774 2,300
In Kind Epensce 3.703 7,344 2,203 2,203 4,408 39,041 7.030 - 65.000 - 101,339 167,239
Total Direct 9,782 8,948 5,081 4,255 7.397 40,856 6.208 780 85,287 4,807 152,288 242-332
Indirect -
Se'arlos 28,684 19,121 6,687 16,906 42,240 33,329 27,004 17,222 191,373 31,575 50,118 270.064
Employee Benefits 1,994 2,536 921 1.813 3,703 1,415 220 208 12.818 2,527 3,169 13.512
Payroll Tam 2,494 2,594 881 1,982 4,535 3,878 4,114 2,638 22.896 3,459 7,575 33,930
Professional Fees 4,058 4,083 4.058 4,059 3,969 3,914 2,654 1,945 28.720 3,659 1,875 34,054
Office Supplies 149 152 148 149 144 144 84 20 990 112 50 1.152
Program Supplies 1,083 1,063 1.083 1,063 1,007 902 6 20,454 26,621 32 59 20,712
Postage 201 289 281 281 276 268 167 41 1.882 246 120 2.268
Telephone 422 437 422 422 412 401 254 128 2.898 420 227 3.554
Occupancy 842 842 838 838 821 773 265 128 5.347 2,739 2,750 10,638
Ear:'p Rental&Maintenance 1,265 1,307 1,265 1,265 1,239 1,207 793 313 8,654 1,244 1.990 11.888
Printing 8 Publications 707 777 707 707 698 652 498 104 4,850 723 424 5.997
Travel 1.274 1,299 1,267 1,267 1,235 1.170 612 154 8,278 733 1,311 10.322
Confer ices 8 Meetings 873 675 873 073 847 618 243 159 4.381 512 316 5.191
MemborrNp Dues 205 217 205 205 203 195 166 38 1,432 255 212 1,959
insurance 2.617 3,001 2,817 2,017 2,773 2,697 2,048 298 19,266 2,541 1,139 22,946
Payments to Aft.Org. 703 705 703 703 , 703 704 7172 - 4,923 845 291 5,859
Other Eopansa 788 811 788 788 771 667 383 115 5,114 812 228 6,154
Advertising 128 129 128 128 128 81 49 at 812 49 366 1,227
Depreciation 2,765 2,812 2.723 2,723 2,684 2.668 1.832 018 18,803 1,429 1304 21.538
Totallndlrect Expenses 51,512 42,830 28,535 38,769 68.180 55,481 42,103 44.518 370,036 53,741 79.384 50 161
Total Expenses 61.274 51,778 31,616 43.044 75,585 96.337 50.311 45,398 455,323 56,548 231,872 745,543
Fund Raising Expenses Included
In Revenue Section of
Statement ofActMl1es - - • - - - - (147,129) (147,120)
81,274 51,778 31,616 _ 43,044 75,565 86,337 50,311 45.398 455,323 58,548 84,543 598.414
_
• The accompanying notes are an Integral part of this financial statement.
BOYS AND GIRLS CLUB OF ELG1N, INC.
STATEMENTS OF CASH FLOWS
DECEMBER 31,2005 AND 2004
2005 2004
Cash Flows from Operating Activities:
Change in net assets $ 517,003 $ 182,301
Adjustment to reconcile change in net assets to net
• cash provided (used) by operating activities:
Depreciation and amortization 13,993 21,537
Increase in In-Kind donations of property (Note 4) - (160,230)
(Increase)Decrease in:
Pledges receivable (396,177) 16,590
Grants receivable 10,101 (24,974)
Prepaid expenses (3,467) (642)
Increase (Decrease) in:
Accounts payable (9,761) 10,214
Accrued expenses 2,081 3,516
Refundable advances (15,611) (21,584)
Deferred revenue 20,070 (2,880)
Payroll liabilities (1,818) 1,786
Cash provided by(used) in operating activities 136,414 25,634
Cash Flows from Investing Activities:
Purchase of:
Property held for expansion - (2,519)
Building and building improvements - (75,000)
Equipment -
Cash provided by(Used) in investing activities -- (77,519)
Cash Flows from Financing Activities:
Capital campaign funds (39,890) -
Contributions to endowment fund (2,100) (960)
Mortgage loan proceeds - 75,000
Principal payments-mortgage - (465)
Cash provided by (used)in financing activities (41,990) 73,575
-_ Net increase (decrease) in cash and cash equivalents 94,424 21,690
Cash and cash equivalents-beginning of year 178,243 158,553
Cash and cash equivalents-end of year $ 272,667 $ 178,243
The accompanying notes are an integral part of this financial statement.
-6-
BOYS AND GIRLS CLUB OF ELGIN, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2005 AND 2004
NOTE 1 —NATURE IF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of activities:
Boys and Girls Club of Elgin, Inc. (the Organization) is an Illinois not-for-profit organization
whose mission is to inspire and enable all young people,especially those from disadvantaged circumstances,
to realize their full potential as responsible and caring citizens. The Organization primarily services the Elgin
area. The Organization is affiliated with Boys and Giris Club of America (BGCA) a national organization
devoted to working with at-risk youth.
Summary of significant accounting policies:
The following is a summary of significant accounting policies applied by management in the preparation of the
• accompanying financial statements.
Use of estimates:
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues, gains and expenses during the reporting period. Actual results could
differ from those estimates.
Basis of accounting:
The financial statements of the Organization have been prepared using the accrual basis of accounting
and accordingly reflect all significant receivables, payables ad other liabilities. Contributions received and
unconditional promises of support are measured at their fair values and are reported as increases in net
assets. Pledges receivable also include conditional promises of support where the condition has been
met Expenses are recorded when incurred.
Basis of presentation:
Resources are classified for accounting and reporting purposes into three net asset categories,according
to externally(donor) imposed restrictions. The organization distinguishes between contributions received
for each net asset category in accordance with donor-imposed restrictions. A description of the three net
asset categories follows:
Permanently Restricted Net Assets — Net assets subject to donor-imposed stipulations that they be
maintained permanently by the Organization.
Temporarily Restricted Net Assets—Net assets subject to donor-imposed stipulations that may or will be
met by the actions of the Organization and/or the passage of time.
Unrestricted Net Assets— Net assets that are not subject to donor-imposed stipulations. Revenues are
reported in unrestricted net assets unless use of the related assets is limited by donor-imposed
restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses on
investments and other assets are reported as increases or decreases in unrestricted net assets unless
their use is restricted by explicit donor stipulation or by law.
-7-
• BOYS AND GIRLS CLUB OF ELGIN, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2005 AND 2004
NOTE 1 --NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Cont)
Expiration of temporary restrictions on net assets (i.e., the donor-imposed stipulated purpose has been
fulfilled or the stipulated time period has elapsed) is reported as reclassifications between the applicable
classes of net assets.
Property and equipment
Property and equipment are recorded at cost, if purchased, at fair market value at the date of receipt
Depreciation is provided on a straight-line basis over the estimated useful lives of the respective assets.
Income Taxes: •
The Organization is a tax-exempt organization under section 501c (3) of the Internal Revenue Code,
accordingly there is no provision for federal or state income taxes.
Cash and cash equivalents:
Cash and cash equivalents consist of cash held in checking and savings accounts. Accounts are maintained
at a local bank where deposits are insured up to $100,000 by the FDIC_ At times during the year the
Organization maintained balances in excess of the insured limits. The Organization does not consider these
balances to be exposed to any significant credit risk.
Risk Management:
Significant losses are covered by commercial insurance. There have been no significant reductions in
insurance coverage. Settlement amounts,if any, have not exceeded insurance coverage for the current year.
Concentration of Contributions or Grants:
The Organization received approximately 15% of its annual budget from grants and donations from the City of
Elgin, and approximately 18% from the 21a Century Learning Grant.
Deferred Revenues:
Funds received for specific future events are deferred and recognized as revenue in the period the specific
event occurs.
Donated Assets:
Donations of non-cash assets including property and equipment are recorded as contributions at their
estimated fair value at the date of donation. Such donations are reported as increases in unrestricted net
assets unless the donor has restricted the donated asset to a specific purpose. Assets donated with explicit
restrictions regarding their use and contributions of cash that must be used to acquire property and equipment
are reported as restricted contributions. Absent donor stipulations regarding how long those donated assets
must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired
assets are placed in service as instructed by the donor. The Organization reclassifies temporarily restricted
net assets to unrestricted net assets at that time.
Donated Services:
No amounts have been reflected in the financial statements for donated services. The Organization generally
pays for services requiring specific expertise. However, many individuals volunteer their time and perform a
- variety of tasks that assist the Organization with specific assistance programs, campaign solicitations, and
various committee assignments.
-8-
BOYS AND GIRLS CLUB OF ELGIN, INC
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2005 AND 2004
NOTE 1 —NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES(CONY)
Expense Allocation:
The costs of providing various programs and other activities have been summarized on a functional basis in
the Statement of Activities and in the Statement of Functional Expenses. Accordingly, certain costs have
been allocated among the programs and supporting services benefited.
Investment Income and Gains:
Investment income and gains restricted by donors are reported as increase In unrestricted net assets if the
restrictions are met (either a stipulated time period ends or a purpose restriction is accomplished) in the
reporting period in which the income and gains are recognized,
Promises to Glve:
Unconditional promises to give are recognized as revenues or gains in the period received and as assets,
decrease of liabilities, or expenses depending on the form of the benefits received. Conditional promises to
give are recognized only when the conditions on which they depend are substantially met and the promises
become unconditional.
NOTE 2—SERVICE CONTRACT
The Organization has an agreement with the City of Elgin to participate in cooperative programs. The total
amount received under this contract was$114,000 during 2005 and 2004.
NOTE 3—MORTGAGE PAYABLE
The Organization has a mortgage payable in the amount of $113,135, bearing interest at prime plus 1%
(currently 7.25%)and secured by a first mortgage on the real property known as 361 Hickory Place, Elgin, IL.
The obligation requires monthly interest payments only and matures on June 2,2006,
As part of the Organizations goal of building a new state-of-the-art clubhouse real property known as 366 Ann
Street, Elgin, IL was acquired. This property which is adjacent to 355 Dundee Ave. - -the Organization's
present clubhouse--was acquired for$92,749.
Most of the purchase price was obtained by a private donation of $15,231 and a $75,000 Community
Development Block Grant. The grant is a deferred, no interest loan to be forgiven on June 22, 2019 if the
Organization meets all conditions of the grant - - primarily the actual construction and ultimate use by the
Organization of a new clubhouse.
This $75,000 note is secured by a mortgage on the property located at 366 Ann Street This property is
reflected in the accompanying financial statements as property held for expansion.
-9-
•
BOYS AND GIRLS CLUB OF ELGIN, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2005 AND 2004
NOTE 4—DONATED PROPERTY AND SERVICES
The non-cash donations for the years ended December 31, 2005 and 2004 reflected in the accompanying
• statement of activities are as follows:
2005
Revenue Expenses
Donation of Advertising and Promotion $ 23,716 23,716
Donation of Snack Program Grant 15,840 15,840
Donation of Awards and Grants 1,750 1,750
Donation of Other Program Donations 576 576
$ 41,882 41,882
2004
Revenue Expenses
• Donation of Building $ 145,000 -
Donation of Advertising and Promotion 20,563 20,563
Donation of Software 45,337 45,337
$ 210,900 65,900
•
NOTE 5—OPERATING LEASES
The Organization is obligated under the following operating leases:
Phone system upgrades—60 month lease with monthly payments of$89, ending August 2007
Office equipment—60 month lease with monthly payments of$200,ending September 2006
Rental expense under operating leases was $3,468 for 2005. The future minimum lease payments are as
follows:
2005 $ 2,868
2007 $ 623
- NOTE 6--REFUNDABLE ADVANCES
The Organization records grant awards accounted for as exchange transactions as refundable advances until
the related services are performed, at which time they are recognized as revenues. The Organization had a
technology grant with the Illinois Department of Commerce and Economic Development which was recorded
as an exchange transaction. The activity in the refundable advance account during 2004 is as follows:
Balance, 1-1-04 $ 37,195
Services earned in 2004 (21,584)
Balance, 12-31-04 $ 15,611
For the year ended December 31, 2005, the Organization had no refundable advances.
-10-
BOYS AND GIRLS CLUB OF ELGIN, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2005 AND 2004
NOTE 7—RETIREMENT PLAN
The Organization has established a defined contribution pension plan available to employees who are at least
21 years of age and have completed one year of service, working over 1,000 hours. The Organization is
required to make quarterly contributions of 5% based on the prior year's earnings of the employee. The
contributions of the Organization to the plan for 2005 totaled$6,042 and $4,780 for 2004.
NOTE 8—RESTRICTED ASSETS
Temporarily restricted net assets consist of:
December 31: 2005 2004
Use restriction- Building Fund $ 436,108 8,289
Time restrictions (Township Grant)for 2005 5,000 23,500
$ 441,108 31,789
The time restricted funds are expected to be used within one year. The use restriction relates to the new
capital campaign (See Note 11).
Permanently restricted net assets are maintained in an endowment fund,established in 2002, in the memory
of a deceased board member. The contributions recorded in this fund are restricted in perpetuity. However,
income earned by the assets of this fund may be used for capital projects as designated by the Board of
Directors. The earnings of this fund were$92 during 2005 and have been recorded as temporarily restricted
net assets,
- NOTE 9—GRANTS RECEIVABLE
The Organization, having incurred qualifying reimbursable expenses relating to programs being funded by two
grantor agencies, have submitted requests for reimbursement totaling $17,873 at December 31, 2005 and
$27,974 at December 31,2004.
NOTE 10—LINE OF CREDIT
The Organization has a $35,000 revolving line of credit bearing interest, payable monthly at prime plus 1%
expiring November 2006. The line of credit is secured by all Organization assets other than real estate.
There was no outstanding balance on the line of credit at December 31,2005.
NOTE 11 -CAPITAL CAMPAIGN FUND
In 2005 the organization began a capital campaign to raise$3,000,000 to construct a new 15,000 square foot
facility at the corner of Dundee and Ann Street in Elgin, Illinois. This fund will also create an endowment fund
to assist in financing the increased operating budget of the new facility as well as provide funding to establish
new programs and outreach opportunities in the nearterrn.
Capital campaign pledges totaling $457,500 have been received as of December 31, 2005. The portion of
these pledges unpaid at December 31,2005 is$387,836, These funds are reflected as temporarily restricted
in the accompanying financial statements(See Note 8).
-11-
•
BOYS AND GIRLS CLUB OF ELGIN, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31,2005 AND 2004
_ NOTE 11 —CAPITAL CAMPAIGN FUND(CONY)
It is estimated that the pledges receivable of$387,836 will be collected as follows:
2006 $ 30,700
2007-2009 357,136
$ 387,836
With the campaign just getting started(approximately 15%of target),no provision for uncollected pledges has
been provided for in the accompanying statements.
-12-
4 CF ESL, J
• Agenda Item No.
r4 City of Elgin
:..i I
yy s
di'!
r P
v
January 19, 2007 —:`',t w `.
TO: Mayor and Members of the City Council - _
FROM: Olufemi Folarin, City Manager l eopp rrua r sJo, ,e
C�4ltum f nrr4�»irlafor.911Citizeas
Randy Reopelle, Parks and Recreation Director
SUBJECT: Boys and Girls Club of Elgin 2007 Purchase of Service Agreement
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to consider the 2007 Purchase of Service Agreement with the Boys and Girls Club
of Elgin.
RECOMMENDATION
It is recommended that the City Council approve the 2007 Purchase of Service Agreement with
the Boys and Girls Club of Elgin in the amount of$114,000.
BACKGROUND
The Boys and Girls Club of Elgin opened its doors in November of 1993. Annually the Club
provides recreational and educational programs to over 400 Elgin youth and teens, many of
whom are at-risk. The Club works directly with the Housing Authority of Elgin and the Parks
and Recreation Department to offer a variety of programs at their 355 Dundee Avenue site. The
Club is predominantly drop-in based, but also offers pre-registration programs. The City's
contribution of$114,000 is to be used for various Club operations and programs throughout the
year.
During 2006 the Boys and Girls Club offered the following programs: computer literacy,
homework assistance, choir, arts and crafts, Junior Leaders Program, Housing Authority of Elgin
Outreach, Boy Scout activities, trip to Magic Waters Theme Park, participation in the Chicago
Bulls Gatorade Basketball Clinic, NBA 2-ball competition, teen pool parties, teen Valentines
Dance, 3 on 3 basketball, summer swimming trips to Lords Park pool every Wednesday, and a
summer block party at the Boys and Girls Club.
In 2005, the City's PSA represented 15.26% of the Boys and Girls Club's unrestricted revenue
(income)based upon total revenue of$746,832.. The agency's audit report is attached.
,
.
Boys and Girls Club of Elgin 2007 Purchase of Service Agreement
January 19, 2007
Page 2
In addition, the Boys and Girls Club has met all the requirements of the 2006 Purchase of
Service Agreement.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
7pit___
FINANCIAL IMPACT
There are sufficient funds budgeted ($114,000) and available ($114,000) in the Riverboat Fund,
account number 275-0000-791.80-30, to fund the Purchase of Service Agreement totaling
$114,000 with the Boys and Girls Club of Elgin.
LEGAL IMPACT
VI/I/None
ALTERNATIVES
1. The Council may choose to approve the 2007 Purchase of Service Agreement with the
Boys and Girls Club of Elgin in the amount of$114,000.
2. The Council may choose not to approve the 2007 Purchase of Service Agreement with
the Boys and Girls Club of Elgin in the amount of$114,000.
Respectfully submitted for Council consideration.
me
attachment