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HomeMy WebLinkAbout08-248 Resolution No. 08-248 RESOLUTION APPROVING AN AMENDMENT TO THE ARTICLES OF AGREEMENT FOR THE NORTHERN ILLINOIS SPECIAL RECREATION ASSOCIATION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS,that the City of Elgin hereby approves an amendment to the Northern Illinois Special Recreation Association's Articles of Agreement regarding real estate ownership or leasing, a copy of which is attached hereto and made a part hereof by reference. s/ Ed Schock Ed Schock, Mayor Presented: October 22, 2008 Adopted: October 22, 2008 Omnibus Vote: Yeas: 6 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk ARTICLES OF AGREEMENT NORTHERN ILLINOIS SPECIAL RECREATION ASSOCIATION REVISED September,2008 ARTICLES OF AGREEMENT between certain Park Districts duly and properly organized and operating pursuant to the provisions of"The Park District Code" and Municipalities duly and properly organized and operating pursuant to the"Illinois Municipal Code", WHEREAS: The Park Districts and Municipalities (hereinafter called Member District) desire to provide recreational programs for persons with disabilities and to share the expenses of such programs on a cooperative basis; and WHEREAS: Member Districts are authorized to enter into this agreement by Section 5-8 and 8-10.2 of the Park District Code and all laws amendatory thereof and supplementary thereto and by Article VII, Section 10 of the 1970 Constitution of the State of Illinois. NOW,THERFORE,IT IS AGREED AS FOLLOWS: I. For the purpose of this agreement, the Member Districts have collectively agreed to be known as NORTHERN ILLINOIS SPECIAL RECREATION ASSOCIATION (NISRA),hereinafter referred to as the"Association". II. The purpose of the Association shall be to provide comprehensive recreation programs for individuals with disabilities. III. Member Districts in the Association are: Barrington Park District Cary Park District Crystal Lake Park District Dundee Township Park District City of Elgin City of Harvard Hampshire Park District Huntley Park District Village of Lake in the Hills City of McHenry Marengo Park District Wauconda Park District City of Woodstock Other Districts and Municipalities may be admitted to membership by a majority vote of the Board of Directors of the Association upon conditions previously specified at time of entry. C:\Documents and Settingslreopelle_r\Local Settings\Temporary Internet Files\Content.Outlook\VMOQONLG\Articles of Agreement.doc 1 IV. The Association shall have a Board of Directors, officers and an Executive Director,all as provided in the ByLaws of the Association attached hereto, made a part thereof, and hereby approved by Member Districts, V. Any approval or consent required of a Member District under this agreement shall be by the affirmative vote of a majority of the Village Board or City Council or Board of Commissioners of the Member District, except where herein otherwise specified. VI. Member Districts agree to make available to the Association their recreational areas, and facilities, at such time and such manner as may be mutually agreed upon between the Association and Member Districts or the Association Executive Director and the appropriate administrative office of Member Districts. VII. The Board of Directors of the Association may establish fees for the participation of people with disabilities in the Association programs. VIII. The Board of Directors of the Association may obtain funds from other organizations,in accordance with the provisions of the Park District Code and Illinois Municipal Code as amended, to assist in the best possible service to the special populations within the Association's area at the lowest possible cost to participants. IX. The Association shall provide public liability insurance and non-ownership automobile insurance in a single limit as deemed necessary for bodily injury and property damage and such other insurance as needed or deemed necessary by law. The Association shall cause the Treasurer of the Association,and all personnel participating in the Association program who handle money to be bonded in an amount as determined by the Board of Directors of the Association. X. The Association shall act as its own employer. The Association shall administer its own payroll throughout the year. XI. The Association shall provide, at its own costs, an annual audit prepared by an auditor selected by the Board of Directors consistent with acceptable accounting practices and the laws of the State of Illinois. A copy of said audit shall be distributed to each Member District within 90 days of the completion of the audit. XII. The Board of Directors shall approve all changes and additions to the Policy Manual of the Association. All of the Association employees shall be under direct supervision of the Executive Director. C:\Documents and Settings\reopelle_r\Local Settings\Temporary[nternet Files\Content.Outlook\VMOQONLG\Articles of Agreement.doc 2 XIII. Annual Member District Dues A. Annual member district dues of each district shall be determined by applying a rate not to exceed$0.0175 to each member districts' equalized assessed valuation from the previous taxing year. EXAMPLE: FY06/07 MEMBER DIST. 2004 EQ.ASSESSED VALUE RATE DISTRICT DUES A 500,000,000 $0.0175 $87,500 B. A new district joining NISRA shall apply to its most recent equalized assessed value to the rate charged to the current member districts at the time of membership approval to determine the new district's member district dues for the first year. XIV. Real Estate Ownership or Lease A. Whereas 701 LCS 1205/8-10b authorizes the member districts of NISRA to take any action jointly for the acquisition of real estate relating to recreational programs for the handicapped,NISRA may purchase, sell or lease real estate upon such terms and conditions as may be approved by affirmative vote of two-thirds (2/3) of the NISRA Board of Directors. B. NISRA may borrow or enter into financing contracts to purchase or lease real estate. Such loans or financing shall be subject to the following: 1. Shall not exceed a term of 20 years; 2. Shall be approved by written opinion of legal counsel that such financing is legal and binding; 3. May be secured by the property to be purchased or leased. C. NISRA may enter into agreements to jointly purchase, sell or lease real estate with a Member or another unit of local government, and to jointly finance such real estate subject to the above conditions. D. NISRA shall apply for real estate tax exemption for owned or leased real estate. XIV. XV. Voluntary or Involuntary Withdrawal of Member District A. Voluntary Withdrawal:Notwithstanding anything to the contrary, any Member District may voluntarily withdraw from this Joint Agreement by so notifying the Board.of Directors of its decision in writing, no later than February lst of any fiscal year and, in such event, voluntary withdrawal shall be effective as of April 30th of the next ensuing fiscal year. Any and all liability and privileges of the withdrawing Member District shall cease as of said April 309date except for liabilities incurred by the Association prior to said date. C1Documents and Settings\reopclle_r\Local Settings\Temporary Internet Files\Content.Outlook\VMOQONLG\Articles of Agreement.doc 3 B. Involuntary Withdrawal: If any Member District fails to abide of the provisions, or shall be in default of any provision of the Agreement, any such Member District may be involuntarily declared withdrawn from membership in the Association and as a party to the Agreement as follows: The Board of Directors shall give at least ten(10) days written notice to the allegedly defaulting Member District which notice shall specify the ground or grounds for such declaration of withdrawal and shall set a certain date and a time and a place for a hearing before the Board of Directors as to the proposed declaration of involuntary withdrawal. The defaulting Member District shall be permitted to appear at said hearing and to submit testimony and evidence as to why it should not be involuntarily withdrawn from membership in the Association and as a party to the Agreement. After conclusion of said hearing and upon 'resolution duly passed by the affirmative vote of at least 2/3rds of the members of the Board of Directors, a defaulting Member District may be declared to have been involuntarily withdrawn from membership in the Association and as a part of this Agreement. The reasons for such declaration of the withdrawal shall be set forth in the Declaration passed by the Board of Directors. Such involuntary withdrawal shall not become effective, however, until April 30th of the next ensuring fiscal year unless a different date shall be mutually agreed by the Association and the Member District declared to have deemed to be withdrawn as aforesaid. In any events,such withdrawing Member District shall continue to be responsible for any and all liabilities incurred while a Member under this Agreement and until the effective date for withdrawal as provided in the Agreement. C. Upon a withdrawal of a Member District as a member District under this Agreement,whether voluntarily or involuntarily, such withdrawing Member District shall have no further claim or right of interest whatsoever to any of the assets or properties of the Association. XV. XVI. Dissolution In the event that the term of these Articles of Agreement shall hereafter expired because there should be withdrawals of Member Districts hereunder so that at least two Member Districts no longer remain to operate under the terms of this Agreement, or in the event the Board of Directors hereunder shall unanimously vote to dissolve the Association, then this Agreement shall be deemed terminated and the assets of the Association shall be distributed among the Member Districts which are Members hereunder immediately prior to such termination occurring. Such distribution, to be in accordance with an equitable formula based in part by the contributors determined by as 2/3rds vote of the then Members of the Board of Directors as constituted immediately prior to such termination occurring. In no event,however, shall any such distribution of assets be made until all of the debts and liabilities of the Association shall be paid, satisfies or discharges or adequate provision acceptable to all creditors otherwise be made thereof. XVI. XVII. Amendments The terms of these Articles of Agreement may be altered, amended or repealed, or new Articles of Agreement may be adopted, by a vote of 2/3rds of the Member Districts. C:\Documents and Settings\reopelle r\Local Settings\Temporary Internet Files\Content.Outlook\VMOQQNLG\Articles of Agreement.doc 4 XVII. XVIII. The Agreement shall become effective September 4, 1991, and shall continue for a period of 3 years thereafter shall be automatically renewed for additional 3 year periods unless 1/3 of the Member Districts notify the Board of Directors of their request of a complete revision of the Articles of Agreement. Said request will need to be received by the Board of Directors on or before January 1 of the third year of the agreement. The provision shall not apply to amendments or revisions of less than total agreement. IN WITNESS WHEREOF, each Member District has caused this Agreement to be executed by its President or Mayor and attested to by its Secretary pursuant to resolution of the Board of Park Commissioners or City Council of the Member District. C i4-ti District/Ci`t}f/Village C1 0l0`j' , / t oict (14, fnQ.'7cc e-4- Ne of authorized signer cJ _ __ _ %p/ ile2 Authors si:, attire Date C:\Documents and Settings\reopclle_r\Local Settings\Temporary Internet Files\Content.Outlook\VMOQONLG\Articles of Agreement.doc 5 October 2, 2008 - TO: Mayor and Members of the City Council FROM: Olufemi Folarin, City Manager Randy Reopelle, Parks and Recreation Director SUBJECT: Northern Illinois Special Recreation Association's Articles of Agreement Amendment PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider an amendment to the Northern Illinois Special Recreation Association's Articles of Agreement. RECOMMENDATION It is recommended that the City Council approve the proposed amendment to the Northern Illinois Special Recreation Association's Articles of Agreement. BACKGROUND In the fall of 2005, the City of Elgin joined the Northern Illinois Special Recreation Association (NISRA) for the purpose of providing recreation programs and services to the residents of Elgin that have disabilities. Since that time, NISRA has done a good job of offering high quality and diverse programs and activities to the City's disabled population. NISRA is planning to change the location of its offices due to their recent growth. During the past five years, they have grown from serving nine to 13 member communities. They also have the need for backup programming space for emergency situations. NISRA currently leases their office space. It has been determined that it would be more cost effective, and more convenient for their customers, if they were to own their own property. Although the Illinois State Statutes allow the member districts of a special recreation association to act jointly to purchase, sell or lease land for the association, NISRA's attorney felt that it would be best if that were also spelled out in the organization's Articles of Agreement. NISRA Articles of Agreement Amendment October 2, 2008 Page 2 In response to the attorney's recommendation, section XIV, titled Real Estate Ownership or Lease, is being recommended to be incorporated into NISRA's Articles of Agreement. A copy of the Articles of Agreement with this amendment included is attached. At the September 17, 2008 Board of Director's meeting, this amendment was unanimously approved by the Board of Directors. It must now be approved by 2/3 of the member communities. There are a number of other special recreation districts in the State of Illinois, including Fox Valley Special Recreation Association and Western Dupage Special Recreation Associations, which have purchased their property instead of leasing. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT There is no direct financial impact from this proposed amendment to the Articles of Agreement. LEGAL IMPACT None ALTERNATIVES 1. The City Council may choose to approve the amendment to the Northern Illinois Special Recreation Association's Articles of Agreement. 2. The City Council may choose not to approve the amendment to the Northern Illinois Special Recreation Association's Articles of Agreement. Respectfully submitted for Council consideration. rr attachment