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HomeMy WebLinkAbout10-38 Resolution No. 10-38 RESOLUTION AUTHORIZING EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT SUB-RECIPIENT AGREEMENT WITH THE ECKER CENTER FOR MENTAL HEALTH, INC. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Sean R. Stegall, City Manager, and Diane Robertson, 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 the Ecker Center for Mental Health,Inc. for an elevator renovation project,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: February 10, 2010 Adopted: February 10, 2010 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk r t' F t AGREEMENT BETWEEN THE CITY OF ELGIN AND THE ECKER CENTER FOR MENTAL HEALTH,INC. This AGREEMENT is entered into as of the V\ day of ,2010,by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter calle GRANTEE" or "CITY") and the ECKER CENTER FOR MENTAL HEALTH, INC., 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 1845 Grandstand Place,Elgin,Illinois 60123. 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 in the application and project description dated December 13, 2008, submitted by the SUB-RECIPIENT entitled "Elevator Upgrade to Meet New Standards"a copy of which is attached hereto as Exhibit"A"and incorporated herein by this reference (hereinafter referred to as the "PROJECT"). The SUB- RECIPIENT was awarded a grant for Fiscal Year(FY)2009. B. All funding provided to SUB-RECIPIENT shall be used solely to upgrade one elevator at Place, Elgin, Illinois, to meet the 2009 and 2011 elevator safety Grandstandg codes. About 3,300 low and moderate income individuals will benefit from the Ecker Center's program in its 2008-2009 fiscal year The subject building will serve 100% low and moderate income persons as defined by 24 CFR 570.208 (a) (2) (i) (A). Such funding shall be used only for the upgrading of one elevator at 1845 Grandstand Place to meet the 2009 and 2011 elevator safety codes and other costs associated with the above activities as are consistent with the scope and intent of the PROJECT and are pre-approved by CITY staff. C. The SUB-RECIPIENT shall comply with administrative and procurement requirements as applied to the Community Development Block Grant program in accordance with 24 CFR 85: 1 y r ? 1. The Bid Specifications shall include all specifications and pertinent attachments and shall define the items or services in order for the bidder to properly respond. 2. The SUB-RECIPIENT shall submit the Bid Specifications and plans to the City's Community Development Department for staff's approval prior to advertising in a newspaper and the Dodge Construction News. 3. The SUB-RECIPIENT shall include in the invitation for bids, the statement "Minorities and women contractors are encouraged to submit bids." The SUB- RECIPIENT shall purchase a 1" x 3" space in the Dodge Construction News Classified Section specifically inviting Minority Business Entity/Women Business Entity(MBE/WBE)firms to submit bids. 4. All bids will be publicly opened at the time and place prescribed in the invitation for bids. 5. The SUB-RECIPIENT shall provide the City's Community Development Department with a copy of the classified advertisement and the results from the bid opening. 6. The contract award will be awarded, in writing, to the lowest responsive and responsible bidder. Any or all bids may be rejected, if there are sound documented reasons. D. The SUB-RECIPIENT shall comply with the Federal Labor Standards and Prevailing Wage Rates as applied to the Community Development Block Grant Program in accordance with Title 29 of the Code of Federal Regulations,Part 5: 1. After the start of the described work, the SUB-RECIPIENT shall provide to the City's Community Development Department staff, weekly reports of the contractor and/or subcontractors at the job site. The SUB-RECIPIENT shall conduct employee interviews of the contractor and/or subcontractors at the job site. 2. Originals of all documents required for compliance with the Federal Labor Standards shall be supplied to the City's Community Development Department. 3. SUB-RECIPIENT shall erect a sign in a prominent place at the job site crediting the City of Elgin and HUD for funding of the PROJECT by including the following statement: "Funding for the Project has been provided, in part,by the City of Elgin from the U.S. Department of Housing and Urban Development's Community Development Block Grant Program." E. The SUB-RECIPIENT shall provide a Progress Report to the CITY each month, reporting on the status of the PROJECT in relation to the project target dates. The monthly progress reports shall begin upon the signing of the Agreement and shall continue until the completion of the project. Quarterly progress reports, due on the 10th day of the following month, for the previous month's activities, shall be submitted until 2 F • the expiration of this agreement or until directed to discontinue such reports in writing by CITY. F. Request for Payment 1. The SUB-RECIPIENT shall provide the City's Community Development Department, prior to the start of construction, with an itemized list of all estimated expenditures. This list (on a State of Illinois Engineer's Pay Estimate form BLR-283 or equivalent) shall show expected quantities and unit prices for each item. 2. Request for payment shall be submitted on a timely basis. Each request for payment sent to the CITY shall be accompanied by said payment estimate form signed by the SUB-RECIPIENT'S authorized representative and showing the work completed. Changes to items on the pay estimate form must be authorized, in writing, by the SUB-RECIPEINT (on a State of Illinois Request for Approval of Change in Plans Form BLR-228 or equivalent), and a copy of such authorization shall be submitted to the City's Community Development Department before payment pursuant to such changes is made. G. The SUB-RECIPIENT shall provide a Progress Report to the City's Community Development Department each month, reporting on the status of the PROJECT in relation to the Implementation Schedule. The progress reports shall begin upon the signing of the Agreement and shall continue until the PROJECT is closed out. The SUB- RECIPIENT shall use a form provided by the Community Development Department and shall include all required information about the number of clients served each month (by race,income,and the number of female headed households). H. Prior to the expenditure of CDBG funds,the 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. 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. Written request for an to this Agreement must be made, in writing, to the City's Community Exception g Y 1n' Development Department explaining why the SUB-RECIPIENT needs the income, the specific activities the SUB-RECIPIENT will undertake with the funds and how the A written response to SUB- RECIPIENT will report the income and expenditures to the CITY. p P P 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 SUB-RECIPIENT'S undertaking to perform the PROJECT, a maximum of$79,739 (hereinafter"Grant Funds"),to be paid in the manner set forth herein at Section VII. 3 e f f B. This PROJECT shall be identified by the following project and account numbers: Project No. 154565 and Account No. 230-0000-791.93-36 in the amount of $79,739, which identifying numbers shall be used by SUB-RECIPIENT on all payment requests. C. In the event the services 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 Ecker Center for Mental Health, 1845 Grandstand Place, Elgin, 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 renovation 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 Ecker Center for Mental Health for the breach of any other terms of this Agreement. D. 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. E. A minimum of 51%of the persons served on an annual basis shall be at or below 80% 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%threshold shall require Sub-recipient to reimburse CITY for funds expended, in whole or in part, for renovation activities. F. 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'S 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 CITY, (1) assist in the completion of an environmental review and (2) complete certifications showing equal employment opportunity compliance including equal employment opportunity certification 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: 4 r f t 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 action in- cluding, 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 CITY and the Department of Housing and Urban Development 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 agrees to post in conspicuous places available to employees and applicants for employment notices setting forth the provisions of this non- discriminatory clause. F. SUB-RECIPIENT shall comply with all laws and state and federal rules and 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, referred to as the Hatch Act. H. SUB-RECIPIENT shall maintain records to show actual time devoted and costs incurred, in relation to the PROJECT, and shall prepare and submit monthly 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. 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 5 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 is used to meet the benefit of low and moderate income persons as defined by HUD, for a period of 10 years after the commencement of this Agreement. M. If during the 10 year period after the commencement 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, 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 is herewith granted authority to subcontract all or any portion of the PROJECT to such engineers, architects, independent land use consultants, professional land planner, construction contractors or other entities as SUB-RECIPIENT shall deem appropriate or necessary and upon such terms as may be acceptable to SUB-RECIPIENT. 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 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 6 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, certification 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 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 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. B. Upon submission of an acceptable claim for Grant Funds, 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 Section IX and X herein, CITY shall pay all required payments against eligible project costs, as described in Section II.B, 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-110, A-122, and A- 133,as they relate to the acceptance and use of federal funds for the PROJECT. 7 r ? • 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 CITY a monthly progress report no later than the fifth day of the month following the activity being reported. SUB-RECIPIENT shall comply with all reporting and other requirements as specified in Exhibit "B" attached hereto and made a part of this Agreement. C. Relocation of Tenants SUB-RECIPIENT shall comply with the requirement under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. SUB-RECIPIENT shall maintain a separate relocation file for each displaced person/business for at least three years after the project has been completed or the person/business has received final relocation payments, whichever is later. Relocation costs must be paid to any tenant (residential or nonresidential) who occupies any building being acquired and is forced to move without cause. Waiver of rights to relocation costs can only be done by a single family homeowner. D. 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, 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 or in breach of this agreement relative 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 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 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 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 CITY under this paragraph shall relieve the SUB-RECIPIENT of its liability to the CITY for any funds 8 expended in violation of any of the terms of this Agreement. D. SUB-RECIPIENT shall transfer to the CITY any unused CDBG funds and submit all billings attributable to this Project at the time this Agreement terminates or is suspended. 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 or 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 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, by CITY and/or any of its agents or representatives, 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 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 paragraph 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 remedies available to the CITY, if CITY has lost or been prevented from receiving any federal funds, other than the Grant Funds, as a result of any alleged violation of law or other breach of this Agreement by SUB-RECIPIENT, the SUB- RECIPIENT shall repay, upon demand by the CITY, such amount of Grant Funds previously disbursed or allegedly due to the SUB-RECIPIENT. p Y g Y 9 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 CITY's discretion. Target Dates Date 1. Prepare Bid Specification February 2010 2. Bids Solicited April 2010 3. Select Contractor May 2010 4. Reconstruction Begins June 2010 5. Reconstruction Completed December 2010 B. SUB-RECIPIENT. Shall complete the PROJECT within twelve (12) months from the date of this Agreement. However, in the event of any alterations or additions or of circumstances beyond the control of SUB-RECIPIENT, which in the opinion of the Community Development Director will require additional time for completion of said expenditures, then in that case, the time of completion shall be extended by the Community Development Director by a period of time not to exceed six(6)months. C. If SUB-RECIPIENT is delayed in the completion of the PROJECT by any cause legitimately beyond its control, as determined by the CITY, such that it cannot complete the PROJECT within eighteen (18) months of the date of this Agreement, it shall immediately give written notice to the CITY of the anticipated delay, the reasons therefore and request an extension of time for completion of the PROJECT. CITY's Community Development Director shall consider any such request and shall make a recommendation to CITY's City Council as to whether in his sole discretion he considers such an extension to be reasonable and necessary, under the totality of circumstances to be required for completion of the PROJECT due to the particular circumstances. The CITY's City Council shall act upon the extension request and recommendation of the Community Development Director and notify the SUB-RECIPIENT whether the time extension is granted or denied, and the CITY's intention to exercise the remedies available herein, including but not limited to suspension of further payments. A revised implementation schedule shall be submitted by SUB-RECIPIENT if an extension is granted by the CITY. XII. MISCELLANEOUS PROVISIONS A. AMENDMENTS -This Agreement constitutes the entire Agreement between the parties hereto. There are no other agreements, either oral or implied, between the parties hereto 10 r regarding the subject matter hereof. 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 fmancial 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. 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. 11 IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the dates recited below. CITY OF ELGIN,an Illinois Municipal Corporation BY: J i I can R. Stegall City Manager DATE: ©a`\, \` ATTEST: Diane Robertson City Clerk SUB-RECIPIENT: Ecker Center for Mental Health,Inc. 1845 Grandstand Place, Elgin,Illinois 60123 BY: .W44-1-, Bee-y-/ Karen Beyer Executive Director DATE: ` co - ` (O ATTEST: A-GCakd-v4; r 12 EXHIBIT A SUB-RECIPIENT'S CDBG APPLICATION 13 r 1 PROJECT APPLICATION CITY OF ELGIN CDBG PROGRAM 2009-2010 PROGRAM YEAR Date of Submittal: 12/13/2008 Project Name: Elevator Upgrade to Meet New Standards Project Address: 1845 Grandstand Place City: State: Zip Code: Elgin, Illinois 60123 Census Tract, Block Group: Census Tract: 851904 Block Group: Moderate Submitting Agency/Organization: Ecker Center for Mental Health Contact Person: Name: Karen Beyer Address: 1845 Grandstand Place City: State: Zip Code: Elgin, IL 60123 Telephone: 847-695-0484 Fax: 847-695-1265 E-mail: kbeyer@eckercenter.org Amount of CDBG Funding Request: $99,330* *This number is 66% of the total project cost. Sixty-six percent of Kane County residents whom we served last fiscal year lived in the City of Elgin. We will request Kane County CDBG funding for 34% of the total cost based on the percent of Kane County residents served that lived outside the City of Elgin in the same time period. PROJECT APPLICATION (continued) 1. PROJECT SCOPE AND PURPOSE: The Ecker Center for Mental Health is the state designated outpatient community mental health center that provides psychiatric treatment and non-medical recovery services to City of Elgin residents with mental illnesses. Services are provided on a sliding fee scale by the non-profit Center. Seventy three percent of the organization's funding comes from the State of Illinois which requires Ecker's services to be accessible to people with physical handicaps. A majority of the Center's services are provided at its 1845 Grandstand Place facility. In order to reach any of the three floors in the building a person must either use a staircase or an elevator; the entry to the building is not on the same level as any of its floors. All floors are, at minimum, a story above or below the entrance. In the USA people with mental illness die, on average, 25 years earlier than the general population and tend to have a higher rate of physical disability than the general population. About 2%of Ecker's clients have extreme difficulty climbing even one flight of stairs. The Grandstand Place elevator is in need of repairs and does not meet the 2009 and 2011 elevator safety codes. In order to be used after those dates the elevator must be rebuilt. The Center lacks funds for this elevator rebuilding project for the reasons that follow. The Center's client population that has increased by over 100% in the last six years while state funding has increased by only 29% and local funding is currently declining, The Sate of Illinois, which supplies the largest portion of the Center's funding, is not paying its venders on time, so all of the Center's reserves are being just to continue its operations. For these reasons the Center is seeking assistance to make the required upgrades in its elevator. This project will benefit low and moderate incomer individuals. The incomes of all Ecker Center's clients range from very low to moderate. 2. PERFORMANCE MEASURMENT: Project goals and objectives: The project steps will be completed in a timely and efficient manner with a final objective of a rebuilt elevator that meets the standards of the new codes. Steps to be measured by their completion in what is considered a timely manner are: Bid specifications prepared Bids solicited Select contractor Reconstruction begins Reconstruction completed 3. NATIONAL OBJECTIVE: This project will benefit low and moderate income persons as defined by the FY 2008 Section 8 Income Limits Documentation System. During the Center's last completed fiscal year, 100% of its clients had incomes in the very low to moderate income ranges and those incomes were distributed as follows -very low 92%, low 5%and moderate 2%. 4. ELIGIBLE ACTIVITY DESIGNATION: The project is eligible as a rehabilitation activity in a nonprofit-owned nonresidential building under Rehabilitation and Preservation Activities and as a rehabilitation carried out by a private entity under Public Facilities and Improvements. 5. LOW AND MODERATE INCOME BENEFIT STATEMENT: About 3,300 low and moderate income individuals will benefit from the Ecker Center's program in its 2008-2009 fiscal year. During the last six years, the number of clients served has increased by approximately 17% each year. If this trend continues the Center will be serving 6,105 people annually in 5 years. 6. DOCUMENTATION AND REPORTING: The data regarding persons served during this project will be taken from the records of registered clients served by the Center during the year 2009 and beyond should the City require data in the following years. 7. PROJECT COST ESTIMATE: • New Motion Control Engineering Controller and Car Operating Panel $ 45,988 • New Complete Pumping Unit 12,300 • Door Equipment Modernization 13,835 • Install pit stop switch, 2 door restrictors, pit light 24" floor, emergency battery pack and alarm, ADA phone and raveling cable, pit ladder, escape hatch switch, reverse phase relay, inspection gauge, capacity plate,top of car inspection, full load pressure tests,telephone jack, power to pit, enclose machine room, machine room self closing, install 3 phase in machine room and GFCI outlets in machine room 14,734 • Clean Out, Pulling Casing and Re-Drilling Jack Hole Estimate 15,000 • Two each: GAL door operators, door tracks, car roller sets, door clutches, door interlocks, headers, pickup assembly sets 31,593 • Architect preparation of bid specifications 16,600 •, Advertising of bids 500 Total $ 150,550 8. OTHER PROJECT FUNDING SOURCES AND AMOUNTS: We will submit a request for 2009/2010 Kane County CDBG funds for the remaining 34% of the total project cost or $51,170. Thirty four percent of Kane County residents served last fiscal year did not live in the City of Elgin. 9. TIME-LINE FOR PROJECT IMPLEMENTTION Project Steps Time Elapsed After Grant Award Bid specifications prepared 2 months Bids solicited 3 months Select contractor 3.5 months Reconstruction begins 6 months Reconstruction completed 9 months Total 9 months 10. PLANS AND SPECIFICATIONS: OTHER INFORMATION: See attached bid 11. OTHER INFORMATION N.A. 12. ORGANIZATIONAL STRUCTURE: See attached chart Ecker Center for Mental Health Mission Statement To provide quality mental health services that are courteous, accessible and • responsive to community need. Internal Revenue Service Department of the Treasury P. O. Box 2508 Cincinnati, OH 45201 Date: June 22, 2002 Person to Contact: Mr. Mason 31-07424 Customer Service Specialist Ecker Center for Mental Health, Inc. Toll Free Telephone Number: 1845 Grandstand PI 8:00 a.m.to 6:30 p.m.EST Elgin, IL 60123-6603 877-829-5500 Fax Number: 513-263-3756 Federal Identification Number: • 36-2312495 Dear Sir or Madam: This letter is in response to your letter dated April 16, 2002, requesting a copy of your organization's determination letter. This letter will take the place of the copy you requested. Our records indicate that a determination letter issued in March 1956 granted your organization exemption from federal income tax under section 501(c)(3) of the Internal Revenue Code. That letter is still in effect. Based on information subsequently submitted, we classified your organization as one that is not a private foundation within the meaning of section 509(a) of the Code because it is an organization described in sections 509(a)(1) and 170(b)(1)(A)(vi). This classification was based on the assumption that your organization's operations would continue as stated in the application. If your organization's sources of support, or its character, method of operations, or purposes have changed, please let us know so we can consider the effect of the change on the exempt status and foundation status of your organization. o Income Tax, onlyif its Your organization is required to file Form 990, Return of Organization Exempt from 9 q P gross receipts each year are normally more than $25,000. If a return is required, it must be filed by the 15th day of the fifth month after the end of the organization's annual accounting period. The law imposes a penalty of $20 a day, up to a maximum of $10,000, when a return is filed late, unless there is reasonable cause for the delay. All exempt organizations (unless specifically excluded) are liable for taxes under the Federal Insurance Contributions Act (social security taxes) on remuneration of $100 or more paid to each employee during'a calendar year. Your organization is not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA). Organizations that are not private foundations are not subject to the excise taxes under Chapter 42 of the Code. However, these organizations are not automatically exempt from other federal excise taxes. Donors may deduct contributions to your organization as provided in section 170 of the Code. Bequests, legacies, devises, transfers, or gifts to your organization or for its 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. -2- • Ecker Center for Mental Health, Inc. 36-2312495 Your organization is not required to file federal income tax returns unless it is subject to the tax on unrelated business income under section 511 of the Code. If your organization is subject to this tax, it must file an income tax return on the Form 990-T, Exempt Organization Business Income Tax Return. In this letter, we are not determining whether any of your organization's present or proposed activities are unrelated trade or business as defined in section 513 of the Code. The law requires you to make your organization's annual return available for public inspection without charge for three years after the due date of the return. If your organization had a copy of its application for recognition of exemption on July 15, 1987, it is also required to make available for public inspection a copy of the exemption application, any supporting documents and the exemption letter to any individual who requests such documents in person or in writing. You can charge only a reasonable fee for reproduction and actual postage costs for the copied materials. The law does not require you to provide copies of public inspection documents that are widely available, such as by posting them on the Internet (World Wide Web). You may be liable for a penalty of$20 a day for each day you do not make these documents available for public inspection (up to a maximum of$10,000 in the case of an annual return). .Because this fetter could help resolve any questions about your organization's exempt status and foundation status, you should keep it with the organization's permanent records. If you have any questions, please call us at the telephone number shown in the heading of this letter. This letter affirms your organization's exempt status. Sincerely, Lic?//e , John E. Ricketts, Director, TE/GE • Customer Account Services • ,. P� (' 'til'1liilt(1 Nt11111)(11• 3745 1A . ,111 • ce ! . . ..._ .._.... . 'Y i ` 0r41 t � s\ r'� �' ,„ri,JA•rit,:,1),(t,,„. • ... , • �J '�> Cv,ki{i�itktl'V Alt:J(J( , r �- • . . _,.,..--/-,7 - 7,1"••vi ••1'741., . • J. //ram/Slits ' (i t11�!: l-1,1i�� u 101. li �.it.`s.i,` 1`•'.M' .,6 Fr ;1;4111 ailieIN.1t;);i'.. ;'�10:1,@ ' • 15ti 1�}ren •.r.. /il 3 rf. i//rrvr:i/i/i,//t/,, 3i�/rr'r/n//r//v'i/r//,/ . .. • 1:ox I/r1T:1,s:t d•:.�:1•ITAI, iii tL'i'U SOCK TY � ' T/'r•ir/rr i7 r/r//ir/r i,///X.', • • ! li/i/r /�rt� i�'rf/�r, r ' ter ( /�/ /.�15 rr.3�irrrir/r'r// • f%�r•w NOT ; //rfy r� • t'AL'J'tiAl'f ,/ ,; rlrr'r' . FOR PROFIT CORPORATION ACT"r/• 9%/r//r/:3• rN/ir,r'rr/7i/j /T. /.rll'),'//r� , . r ! /rikr. r/r//rI/r•r///�• r//rr/r•r/''//r/�•'/.i. . '.�CJrar71ES F.C,tir^t::+J+ER•' �r'ir • r . • „fir .�c'rcrn•c. � / / / // al:.. [ ••'/grid r•r/ . /r rrrr'r•ri rri/r//// /i//'/� /ri//;r a rr/r'v r.J.3N,' 4 /ii/nrrr/�'� r ': . '� / r/rrr:irrirr/i:/r •%rrw0r•irrhi,// nl/r/rt//rrr%/%r;r/n rr rr/r/r�%%ri�:3 (j/ r///r r ir.3rrir/rr1V r,Yr//e,/r. • -jlq a'l'_ ia5a VaiQ 11q1D1.'b'11411, '74rir•/r.'.3r/ary kr at/n//r/rrrri3'•If, 4 • l r� i>r/ r / / ` , � ��urr/ �i � /�� r �1• j • _ r) F4. 7- � r/rr r% ' ) I / Y , ttt Z • % i fAn %/ ; /r/r /I WI VIf, /Al //,/ r r//r/4:) A f,.A) • '''Irris.A1.4", 1 :.•it,. 4, 1(\4 q 4X • 47 � � �• i • •� � ' .,1 a.aLlAAt UI ilAli •.1 j � �' • .��"lt{r�'(��. s..4 -vvi •1_-�- , - t.GOK 1. 1. 11 r',ct 4'�ti�,1.. • 4TAT , H•�ti+at Wino is Department of Revenue "- "ti' o Office of Local Government Services t' i M`I.Virp Sales Tax Exemption Section, 3-520 $F; ! ; ?I 101 W. Jefferson Street a. ; wl Springfield, Illinois 62702 217 782-8881 September 1, 2006 • ECKER CENTER FOR MENTAL HEALTH WILLIAM SUNDBLAD DIR FINANCE 1845 GRANDSTAND PLACE ELGIN IL 60123 • We have received your recent letter; and based on the information you furnished, we believe ECKER CENTER FOR MENTAL HEALTH of ELGIN, IL is organized and operated exclusively for charitable purposes. Consequently, sales of any kind to this organization are exempt from the Retailers' Occupa- tion Tax, the Service Occupation Tax (both• state and local), the Use Tax, and the Service • Service Use Tax in Illinois. We have issued your organization the following tax exemption identification number: . E9981-5680-05, To claim the exemption, you must provide this number to your suppliers when purchasing tangible personal property for organizational use. This exemption may not be used by individual members of the organization to make purchases for their individual . use. This exemption will expire on September 1, 2011, unless you apply to the Illinois Depart- ment of Revenue for renewal at least three months prior to the expiration date. • Office of Local Government Services Illinois Department of Revenue • • STS-49 (R-2/98) EL-492-3456 11-0000119 a • • • • '7`�95� Ciled.... ...........—.......— 111inai. Uvcurllcnt Pao. �` I • Recorders r'ie Kano o l Bled for record Ill tie cr s C,l,c:. �{�,�� . �t �o�s4'ciack a . M. � -- �� R 1ccf cier atDce. i. \()TILE TO C:Utll'( RA'rIO\S ►,) u( tit.tt� `rrrt t: ue al each in .Olafte ce f the of its incorporation, r�oraticnt is required to execute and rile in thc.Olr'src: of t tr i ] rcry "not for profit" c� 1, nod the last clay' of ! eft► • .� }, January incorporation lsrrurc: �urh an annual the 15rt, an severe e penalties arc•inflicted for failure to do tic . and s als l ' amendments to their articles of incorl an annual report, : Corporations are also required to Iilc: :tll ttt•nts loci at clfcinco. hocatctl ��'itltitt is tl:t)s r►uut tl��' •s ch � tesstlntcisls tlscreto ntn�t 1►e s�urtlrtl itt llsr rlr15icr c►f tltc: (:uun �' amci 'ere certificate Coe of incorporation registered al an •• of the County in which the . t•rt,ials•res} allies; of. the rurpor,tt► et t • Tlccortks issuance thereof. 1 • r • 1 . AR.T1CLES OF INCORPOItATION UNDER T . HE GENERAL NOT FOR PROFIT CORPORATION Ar..7.7 • . . . . • (rlies.e Articles 1\lust Ile Filed.in 1)0plicate) • • To ':,;:i.i..t,, . •'. `'.,i.•,.t • .1 . ., . ,Surre:tary ot 51.1te,Sprissitfils1, Illinois: • - • We, tlic unclt..1••••:v;:netl, : ' . • (Not Iets than tines!) . • . . --.----------.. . Adiirrss Name N ti miser SITret CitV Sintr . .. --.------ . , . . . . . i nr.c.Ith V. ' ...7....I.:::te:..F. .;.(0.411 14'11,1' ... , Ott:t..1tte, ,I. i 1 .0: ...:I t.....ro 1.v.,. .1 r:. . .823....fx rl.:1 n...A v nite . ........ ,i1:1 t.._1111 no I a .... . . ':yeor.:o........:.::1;.1..r.,... !...::.... kio:,..::r.t. '...f. u'.11.;.y...:7, 806 lit t...111 kind l'iVLIP:e• ....1'il p 11.11 .+40 t''.r ri tt ( . 1.110-npr..i1 t2.9) 1 . Chi ert,-,c. 1:I t•re t. 1....1f"•in, 11 Li . .. .....-. .... ... .. ... •--... • • . . ...... - -... - . . 1,.,414:list us.31 perbur,....,f the s ,:..i twity•litte;.e.ita•ia 1111/1C:Ind e4tiZe11:::of OW 1:161t4d St at tnC.I ur the istsr•„ . . Al . 1.- . loise air tor......;: tvtrptiratitat under i lilt"Calier.11 NAat Vor Pt 411.11..Corporation Act"of the State of Illio..is, do hes els).adolit t Ise f..11invim: As ticies'of Incorpuration: • . ... . . 1. The name of the eurpuratirsii iss:,.....1.`9A.Vr.)..1...e y....:!.s..in.t.n.1 II s:r4A,1,..is,•„;;;b11,10. ....... ..., „ • . . . . 2. Tin:period of duration lit she corporation is...-. .•... • . . . 3. The ashIsess of its inital 1:s•liistered Office in tile State of. Illinois is:••,...••1?...31...„En ,1••••!,11.1:.,....... „ • • . . .. . . •_••• ••• •. ,„ •• __•••7 . Street.is%the .. „Cl t.N..........01....-.E.14111-:....--..:-.J.-""tY ut . . .... . • .__.1..er.c__ ...........,._.. ,...... _ ... .., IS the mom:of its initial Itegistcrrd Agent at nitt address is: - . ..............---1.:t•:.. ..r. ur.:.:t.r.:1.- if. •.1.1:Ivis.... • •:..... .'..• . ... ..'. :.........--- . -....: .... • . . . .• . . •.7 . . • . •4. •.Tlic first Board of Dirceiers b1.811 be L.......• 15):.... ............::.:.in minibus%their names a.n.lo.1.1ressIming . • • (Not less llsan three): •. . as follows: .. . . . . . . • . . ' . . . Add I eSS • ' . N.:I Me • N11111111'1' St rro • ' Mr State ... . . 1 V.til den 1.::ne Dericl a e I I li ni:.I Is . . r.rn. 1;on: Id !.;cirt on 2116 I.1, v:r.ir it P.VVIltIO' Ell1 r., 11.1.1110 ..--... .. 11r.rolr. .r. suirii.:1 56 iiivcr 11/v.fr li'in:.c1 1..:Irl n I131:101:: . L.r. 1cw....ri. I. Ullny:::: 006 Eir.11111n.t Avenue El :I r. Illincli.3 .. • . .. .. . ... . • . ...... ..... ....... • ..r..1. Elsa 7.t 1. li. ).•:1 V i.:% . 1..:oyr:e . 1 - . . . .. Orrin (.1. TItt.n11::;or's „.:58 ,. CIc:trot) :11:1'out F.1.1;11), I.1.1.1ts;.)1.:; ;',,t•z-,, ..1c.'11•ItM r, . ier•l•Y :':•i lir;Lc:rl.„f 1 I 1 Iti...1. • Jurt. c Call'i :t• ran pc-n . It-:0 ;••., r0,3 o?II ;.'.s.vet:I. l':1?"..i 11 r i I I 1 l'.0 I Roy. I.!. ri I OW 1...`..etstisiro's 767 Hi rid:Isis: t,vostits': Iiii'..in, I.t liitoin. • . John 1•: . :•.:*..se.:1:::sis t:60 Kin c.rc.*:.: 1.:1c.1 n, I I 1 I-to Ir. .. • !tr:;• I.:11y r.or.Lt !.c:::::1.1..i. 1.321 lil'(sot Il tree t. . 1: .11, 1 in !tills ‘. . • , IA'. 1)41:11s:.1. 11.31.1.10i 7c)t) .:. :.11.:':to 11 t.l.s.:;:l. h ).n, 111110 I:: 1:1•:'•• 1.:in r.• s! r., 021. 1.:11'1'.1.11 AV tr:itio EllIi ll, Ill i tIo In t.1.1.11%il• c. 1.....:1..ra 9110 1:ouginn tvenlact Elp,in, I II 1 v.i.)I n . . . • vilon C. .%1:11,:..on . Lti Le 1:rotlt ' •2,1... CtIttr.ler, 1 111 nol • . • • . ' . . • . . . . . .. . .. . .. 1 • `•, , ,' ' BCC: i :Li terc�.: . r.t1d cduc:tit�:.r:l .;, The purpose or purposes for which the corporation is organizedC•ion of the . r1 scientific, ., a velyIllinois, �z,c::t; To engage. Cleadii g to in promotion lid conservation• ,aetivities leading. people ol.' the Pox Valley, or mental ht;�:ltit of study } cl furni riling of ft�cili ies . rdisorders, — • rten d c szttciy cn .� tl •and .s. • ven itcjn a of nervous , emotio..: n and care �; . verttic of croon' L'►' col•ol ei;f�x•dl.e:� race , -; r us, oc^best,:: .:I:�,i r • 1{:i ::and apply • f sands, �,,: . I sect to st And to receive,o ' use,the oc ; t;:t_•re:of, to ,:ivc e . gr1Ci01•tP.11;Ttt� or � c LiC•rE:aI1 litGtGCi. , carry out t;.,! } ul'c�o�c y . il11'srt scull be col�sLz'itt3d to �ut;ttari�c > cilia t;ic�tis _ ct n duly „� u ilez c.itZ c tie 1 tine 6. "nothing to })lI'i1�1,11 f.,t� O� corporation O.c: l'�y n the corporation doctor, i,ni clinic rsdeii. in t;itc case of 'People vs 1 � �ic: clinic tas defined " Serva.co, 362 Ill . 1012 . cozitained in 11,c A1'tielcs of • jL. permitted by StattltC .to b' (Note: Any special provision authorized ar. f Incorporation, may be inscrtcct.nbove•) i, :•.,•:; . t)F..l . .. .. Incorporators. ...... •..i..... Glenna r c'}�add on • • G. hnothtriz, hcroin contiJ)0c :.;:Ya11 be coti truo<< to authorize . tile cor:o1'at_on to rti'rrfrrm any of the functio:,::; of a 61.11 litenjod noti1cutl doctor; nor rl'_1u.11 the t;U'_".)C.`atiOf oporettc a clinic as dofinod Ln t:lo• ct.:Jo of i oo In va United i•iccil.oal ':`=1'v1CG, j:?2 .(.11e 442,tr • , • • • • • (NOTE: .Any special provision authorized or permitted by Statute to be contained in the Articles of Incorporation, may . ...be inserted above.) . _ • • (INCORPORATORS 1• 'OI'.5 7JSI SIGN 'I1LLO} } . ....tom f „-�L-'� Incorporators . r I� �'/•••••• (77 7 `(.. ,___.1. 1 Certificate Number 3745 • STA T1 oar ILLT_O ` S OFFICE OF THE SECRETARY OF STATE • • • Il„ u,,,, lI a 1,1i„„li a 1111 a,, ,t„ u.a It lt 11 Statee -Seal Vignettes I, 1, 1, ,,I, 1, ,,,t„,,,t 1,I,„ll 11 I,II ll ,t t,tt 1, • „ WHOM. THESE PRESENTS SHALL COME, GREETING . • TO ALL TO ., duly si[�ned att�i vcri.fit d of WHEREAS , Articles of Incorporation . FOX 'VALLE'1 I ENTAL H SOCIETY O I St^to on the 23rd• the Office of th- Secretary the '"GS:tI:;Ite I�(0't eGIZ Kaye been Fe filed in 19 as provided by FE 1�J=4:�,. Fn .force .- . day of February • A. CD " of5Illinois ; approved .July. PROFIT CORPORATION ACT . . -January 1, A. D. 1944 i Secretary -of ' Cha les F. Carpentiert2�e :poc'cez's veste • itt ,•� Ii01S', TeiTt' 7I'oRE, fI , b virtue of o�•et V stte ain me byale of the Stathereby isofsue e thisiCertificate, ooftinc of the on and ad h . last a hereof issue this Articles of Inn of thereto a copy of the 1. corporation. •IN TESTIMONYand �;t:>c to bc VHEi e,C.F, I hereto set Sty hand . affixed the Great Seal, of the State of Illinois- Done at the City of Springfield this• t , clay of February A. indel:endetice of the United State s the . one hundred and 79th. CiiF RLs;S T • CA u1 '11 I'r',R S� CRE'TA.RY Or' STATE • t,,l It „ I, t,t,,t I1 It ,t II ,! „ li,l It „ I, II II ,1 II Il„ II ,I 1, ,,II II It II . t, SEAL OF THE STATE OF ILLINOIS �I II August 2Gth, 181B „ II lI II II II„t, ,t I, It It „ ,l it „,I 11 It 11 II till 11 11 11 11 tI tl ,t R1111- ' . • . . ' • .4/ . . ' . . • i/ • • . . • • . . .,•••:•:• ,. • • . . . • • ACKNOWLEDGMENT . : . .. • . . . . • . • . . . STATE OF ILLINOIS, ' , SS. CountYof..........................7........!......-.' ..:.............................. \ . . . . .Jit , a Notary Public, . . ...... .....- .......... ... . • dohereby certify that on the_ _ , „.. _..............0..1%)1.... „ . .....clay r4. ....., .1i,...brDi•Lry.....„........, 19A.:...;,.;' Joseph V. • Esto ; iqrs . Dr.t1 !!.. .*:1.1. tro.,rn, Jr. , gcv. 14. ,10.11n 1•1‘•:::. :1.zittn , D....0 ...:3 on—..._............L. .. , . personally appeared before me and being first duly sworn by me.severally acknowledged that they signed . . the foregoing document in the respective.capcities therein set forth and decl:irod that the statements . • therein contained are true. • • . . .(7.; . .. . . . . . . • • . . . • • . • IN:w yr N Ess wi 1ER E01:, I have hereunto set my hand and-Seal the day antlyear above written. . . . . . .-D • . • • . . . . • . . ...!... .1qA).:......!Am...:!.,...'::.1.1,1Ler.a,....j.r........... • • Notary Public. . . • • • • . -----•---------- . • Notarini Sni .......--,-------.---- !•'.y ::csicn Expires 0:%T.ob(3r 2(s , . . . . • • • . • • Document No. 773954 Filed Mar. 3, 1955 . Filed for record in Recorders Office of Kane County , Illinois at 10: 45 o' clock A.M. • (signed) Grace E. Markuson Recorder of Deeds • Book 1730, Page 1169 ,. . . ._ . . • • , . . . , . ' • . . • . . ' .. . . .: ..,. Bylaws of ECKER CENTER FOR MENTAL HEALTH, INC. 1845 Grandstand Place Elgin, IL 60123 Article I NAME AND PURPOSES SECTION 1. The name of the Corporation shall be Ecker Center for Mental Health. SECTION 2. The Ecker Center's purpose is to provide services that enable people with mental illness to lead productive lives, maintain their independence and support themselves financially. The Corporation provides a full array of mental health and related services to persons with mental illness and their families. Services range from prevention to recovery and include crisis, psychiatric, case management, rehabilitation, residential and psychotherapy assistance. SECTION 3. The Corporation shall be an Illinois not-for-profit corporation which qualifies for tax exempt status from the Internal Revenue Service under Section 501(c)(3). No part of the net earnings of the corporation shall inure to the benefit of any private shareholder or individual. No part of the activities of the Corporation shall be to influence the election of public officers. The Corporation shall possess all the powers which a corporation organized under the Illinois Not-For-Profit Corporation Act are permitted to have. The Corporation shall not engage in any business which would disqualify it from being exempt from taxation under Section 501(c)(3) of the Internal Revenue Code. SECTION 4. Upon dissolution, any funds remaining after all outstanding debts have been paid, shall be transferred to another 501(c)(3) organization that provides services to persons with mental illness in the area served by the Ecker Center for Mental Health. Article II OFFICES The corporation shall continuously maintain in the State of Illinois a registered office and a registered agent whose office is identical with such registered office, and may have other offices within or without the State of Illinois as the board of directors may from time to time determine. The facility of the registered offices shall be known as the Ecker Center for Mental Health. Article III MEMBERS The Corporation shall have no members and shall be managed by its Board of Directors. Article IV DIRECTORS SECTION 1. GENERAL POWERS. The business of the corporation shall be managed by or under the direction of it board of directors. SECTION 2. NUMBER, TENURE AND QUALIFICATIONS. The number of directors of the corporation shall be not less than ten(10). A director's term of office shall be for three years from his/her date of appointment by the board and he/she shall serve until a successor has been appointed to fill an unexpired term. A director is eligible to return to the board after one year. The terms of directors shall be staggered so that one-third of the directors will be appointed each year. No director shall be qualified to hold office more than two successive terms except upon recommendation of the Governance Committee to serve a maximum of an additional term. The Executive Director shall be an ex officio member of the Board without vote. SECTION 3. PARTICIPATION. Director shall serve on at least one committee SECTION 4. REGULAR MEETINGS. The annual meeting shall be held in the October of each year. At the annual meeting officers shall be elected. The directors shall meet at least quarterly. Non board members who wish to bring matters to the board shall do so by contacting the Board chairperson. SECTION 5. SPECIAL MEETINGS. Special meetings of the board of directors may be called by or at the request of the chairperson or at least two directors upon two (2) days notice by mail, fax, e-mail or telephone. The person or persons authorized to call special meetings of the board of directors may fix any place within the agency's service area as the place for holding any special meeting of the board of directors called by them. SECTION 6. QUORUM. A majority of the board of directors shall constitute a quorum for the transaction of business at any board meeting. SECTION 7. MANNER OF ACTING. The act of the majority of the directors at a meeting at which there is a quorum shall be the act of the board of directors, unless the act of a greater number is required by statute, these bylaws, or the Articles of Incorporation. SECTION 8. WAIVER OF NOTICE. Whenever any notice is required to be given by these bylaws or any of the corporate laws of the State of Illinois, such notice may be waived in writing, signed by the person or persons entitled to said notice,whether before, at, or after the time stated herein, or before, at, or after the meeting. SECTION 9. VACANCIES. Any vacancies shall be filled by appointment by the board of directors. SECTION 10. ACTION WITHOUT A MEETING. Any action required to be taken at a meeting of the board of directors or of any committee thereof may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all the directors entitled to vote with respect to the subject matter thereof,or by all the members of such committee, as the case may be. Any such consent signed by all the directors or all the members of the committee 2 shall have the same effect as a unanimous vote, and may be stated as such in any document filed with the Secretary of State or with anyone else. SECTION 11. COMPENSATION. Directors shall not receive any compensation for their service as board members. Directors may serve in other capacities and receive compensation therefore. SECTION 12. RESIGNATION AND REMOVAL OF DIRECTORS. A director may resign at any time upon written notice to the Chairperson. Any director may be removed, with or without cause, at a meeting of members by the affirmative vote of a majority of the total number of board members. Removal shall automatically occur when a director misses three unexcused consecutive meetings unless the board by a majority vote of its members votes to continue the director. SECTION 13. TELEPHONIC MEETINGS. The board of directors or any committee of the board may participate in and act at any meeting of such board or committee through the use of a conference telephone or other communications equipment, including computers, by means of which all persons participating in the meeting can communicate with each other. Participation in such meeting shall constitute attendance and presence in person at the meeting of the person or persons so participating. SECTION 14. ELECTION. Board members shall be elected by a majority of members of the Board. Article V OFFICERS SECTION 1. NUMBER. The officers of the corporation shall be a Chairperson, Vice- Chairperson, Secretary and Treasurer and such other officers as may be elected or appointed by the board of directors at the annual meeting. SECTION 2. ELECTION AND TERM OF OFFICE. The Chairperson, Vice- Chairperson, Secretary and Treasurer shall be elected every year. Vacancies may be filled or new offices created and filled at any meeting of the board of directors. Each officer shall hold office until his/her successor shall have been duly elected and shall have qualified or until the director's death, resignation, or removal. SECTION 3. CHAIRPERSON. The Chairperson shall preside at all meetings of the board of directors. Subject to the direction and control of the board of directors, he/she shall be in charge of the business of the corporation. He/she shall discharge all duties incident to the office of Chairperson and such other duties as may be prescribed by the board of directors from time to time. SECTION 4. VICE-CHAIRPERSON. The Vice-Chairperson shall assist the Chairperson in the discharge of his/her duties as the Chairperson may direct and shall perform such other duties as from time to time may be assigned to him by the Chairperson or by the board of directors. In the absence of the Chairperson or in the event of the Chairperson's inability or refusal to act, the Vice-Chairperson shall perform the duties of the Chairperson and when so acting, shall have all the powers of and be subject to all the restrictions upon the Chairperson. 3 SECTION 5. THE TREASURER. The Treasurer shall be responsible for overseeing the financial affairs of the corporation including keeping of books of accounts. He/she shall make sure the staff adequately accounts for the contributions to and funds spent by the Corporation. SECTION 6. THE SECRETARY. The Secretary shall insure that: (a) records of the minutes and reports of all meetings of the board of directors are kept; (b) all notices are duly given in accordance with the provisions of these bylaws or as required by law; (c) a custodian of the corporate records is appointed; (d) a register of the post office address of each member is kept. The Secretary should perform all duties incident to the office of secretary and such other duties as from time to time may be assigned to him/her by the Chairperson or by the board of directors. SECTION 7. OTHER OFFICERS. The corporation may have such other officers and agents as may be deemed necessary by the board of directors, who shall be appointed in such manner, have such duties and hold their offices for such terms as may be determined by resolution of the board of directors. SECTION 8. EXECUTIVE DIRECTOR The Board of Directors shall hire an Executive Director or other appropriate personnel who shall be responsible for the day to day operations of the organization and for implementing the policies of the Board. The Executive Director shall be obligated to work within the budget of the organization and advise the Board at all meetings on the status of the corporation. Article VI COMMITTEES SECTION 1. COMMITTEES. The board of directors by resolution adopted by a majority of the number of directors may create one or more committees and appoint members of the board and non board members to serve on committees. Each committee shall have three or more members, who serve at the pleasure of the board. Non board members may not chair committees. Standing Committees: Audit—The committee is responsible for hiring outside auditors,reviewing their work plan and scope of services and the draft audited financial statements and other reports upon completion of the audit. Development and PR—The committee shall assist and advise staff regarding public relations and development issues. It shall be responsible for planning and carrying out fundraising events. Sub-committees of the Development and PR board committee usually carry out fundraising events. Finance—The committee shall be composed of the treasurer and at least two other board members. The committee shall recommend to the board, and annually review policies for the sound fiscal management of the agency. The committee shall review and recommend to the board a financial plan consistent with the Center's goals and objectives. Through an outside 4 Ecker Center Board of Directors December, 2008 Name Officer Employer Alan Kirk Retired from Total Home Health Dave Conroy Chairman Sales Manager. Gordon Flesch Co. Thomas Young Treasurer Lawyer Joann Reynolds , General Manager Schleifring Medical Systems Aaron Sellers Vice Chairman CEO Training Solutions Tanya Stewart Student Robert Tiballi D.O. Secretarty President/CEO Germbusters,P.C. 10/25/'08 , AUTHORIZING APPLICATION FOR CITY OF ELGIN COMMUNITY DEVELOPMENT FUNDS AND EXECUTION OF ALL NECESSARY DOCUMENTS WHEREAS, Ecker Center for Mental Health has determined that it is in its best interests to submit an application for City of Elgin Community Development Funds for elevator compliance project; and WHEREAS, said project will benefit consumers of Ecker Center's services and the community of Elgin; and WHEREAS, the Elgin City Council must approve said application and will require Ecker Center for Mental Health to execute a Funding Agreement and other necessary documents upon such approval; NOW,THEREFORE, BE IT RESOLVED THAT Karen Beyer, Executive Director, is hereby authorized to execute an application for City of Elgin Community Development Funds, a Funding Agreement and other necessary documents upon approval of the application by the Elgin City Council, and any requests for payment and documentation required to be submitted by Ecker Center for Mental Health to the City of Elgin requesting the dispersal of funds. BE IT FURTHER RESOLVED,that any changes to the above-stated project description need not be approved by Ecker Center for Mental Health. SIGNED: D� ATTEST: ae,009f o Psychiatric Residents Psychiatric o. — Consultants v C�r „ ' ,p G S: a c . Nurses,Nursing Support Staff Psychiatrist p' o;> Specialist. 3 z•a Admin.Support Specialists o. m 0 PPee o m' J Supervisor, b E a=� RNs LPNs,MHPs&MFas Crisis Residential Program S. Crisis Residential a 'al n.n a I O 'a ,. 7 =. ag AN S 9 a '^ PAS Scrceners,Resident — Reviewers,Targeted Case — PAS Coordinator Managers •a , a 3 a Development St PR n s" Manager _y =t"' o S Coordinator,CILA&Supervised o a Residential a c a a a g 3sg sr w Vocational Specialist, PSR Group Facilitators d — Peer Sponsors n a.. -n Supervisor,PSR O n Intensive Case Management n Case Coordinator r C ,}L21z I n 2a rfi Extended Case Management g y C, > hs Case Coordinator —, tm d O C • 5 Intake Coordinator ` ten f/ n &Linkage Case Managers —' g n O w Y to H rs Transitional ,K mre Case Management Case Poi ,__J in- Coordinator Supervisor,Case Management S H zi tl 3n rn Data Entry Operator Data.Billing&Records Manager , • o3 Ra g'z G Z Supervisor.PEP do Therapy Service • PEP Emergency Therapists, Mobile Transition Therapists& Therapy Services Therapists ��O 5. R 1. a g 3 Admin.Support Specialist, a. Courier aS g c p CII F i o E. 'a'a' Human Resource Manner 0o i Tim BATES f'/5 C.9 G U'ri/;.Gi 3673 SONOMA CIRCLE LAKE IN THE HILLS, IL 60156 �1�1 ik'G�ar7�.`� > ,q0,Eiov.cl12. 547-515-2230 TIMBATES@FOXVALLEY.NET SUMMARY Multi-tasked, detailed, organized Accounting and Financial Professional with extensive experience in all facets of accounting, finance, management-and supervision. Self motivated individual with key strengths in problem solving and strong customer service skills. Broad range of experience in computerized accounting programs, spreadsheets, database programming, word processing and desktop publishing. EXPERIENCE Elgin, IL ECKER CENTER FOR MENTAL HEALTH 2O07 ACCOUNTING MANAGER • Responsible for all financial operations • Supervise the senior accountant and office manager NATIONAL STORM MANAGEMENT SERVICES Glen Ellyn IL SENIOR ACCOUNTANT 2006 • Handle payroll for multi-state/multi-company. • Handle all Payroll related Federal and State taxes. • Handle all Health Insurance, and 401(k)retirement programs. . Interviewed agents/researched insurance plans saving the company about Thirty-thousand dollars per year.. • TALKING BOOK WORLD Lake Barrington IL SENIOR ACCOUNTANT/VICE-PRESIDENT OF FINANCE 2004-2006 . Hired as Senior Accountant and promoted to VP of Finance after four months of employment. • . Researched, installed and implemented:new accounting system. • Designed and wrote program in MS Access to download sales:information from various remote stores into • corporate accounting system. . Brought Payroll and benefits systems in house from external vendor saving company Forty-thousand dollars per year. INLAND PRESS ASSOCIATION Des Plaines IL FINANCIAL STUDIES MANAGER 2002—2004 . Administer largest annual financial study of daily newspapers in the nation, including creation of submission forms and instructions allowing papers to identify areas of improvement. . Compile,monthly reports and annual survey cf weekly newspaper operations. . Maintain programs in MS Access developing reports as necessary in Excel, Pagemaker, Access and PowerPoint. ▪ Respond to financial questions and advise members on purchase of materials offered by Association. INTEREST MINISTRIES Hoffman Estates IL ACCOUNTING CONSULTANT-CONTRACT 2001—2004 • Created customized reports using MS Access database linked to QuickBooks accounting system,saving organization cost of expensive,complicated accounting and reporting system. • Closed monthly accounts, monitored payroll entries, reconciled bank and broker statements, and created journal entries. • Prepared all audit work papers and facilitated audit with outside accounting firm. BRIGHT HOPE INTERNATIONAL Hoffman Estates IL BUSINESS MANAGER • 1999—2001 . Managed all financial activities, personnel and insurance matters for fast growing non-profit organization with$500K annual revenue. Plus, managed accounting functions for 2 other organizations:World of Education and Interest Ministries. • • • Supervised information technologies and maintenance of Linux network. • Implemented new systems in Accounting, Development, and Sales&Inventory, resulting in streamlining information flow and allowing greater reporting flexibility; used QuickBooks, Blackbaud Development,and QuickSell POS. INTERNATIONAL TEAMS Elgin IL CHIEF FINANCIAL OFFICER&DIRECTOR OF INFORMATION SYSTEMS 1995— 1999 . Requested to return to former position with added management responsibilities over information Systems department, property insurance and legal issues. • Managed planning, researching and selecting corporate software for the 4 departments for greater interconnectivity with foreign partners and successful overseas information flow. DIRECTOR OF FINANCE 1989— 1993 • Supervised bookkeeper,financial secretary and receipting personnel for international evangelical missionary organization with revenues of$7M annually. • Prepared monthly and annual financial reports for management and board, created budgets, facilitated annual audit of mission and prepared corporate governmental and tax reports. • Taught financial orientation to missionaries in training. • Redesigning financial system from"pooled"to individual accounts for missionary teams. • Developed fixed asset system on PC maintaining book value and depreciation information, allowing better department asset tracking;saved cost of outside consultant or purchasing expensive software. THE CHAPEL OF THE AIR, INC. Carol Stream IL MANAGING DIRECTOR OF FINANCE 1993-1995 • Supervised financial operations for an international outreach service with revenue of$4M from sale of Christian books. Plus, assigned Network Administrator and Human Resources responsibilities. • Researched, installed and implemented new computerized financial system, providing greater financial statement accuracy, especially accounts payable. • Managed insurance issues, reducing commercial insurance cost by$5K per year. INDIAN SUMMER, INC. Traverse City MI SALES ADMINISTRATION MANAGER 1986-1988 • Requested to mediate meetings between 3 disputing departments;position created by company president. • Developed and maintained sales promotions tracking systems. • Approved pricing changes and advised top management on low margin business. • Created program to predict profit by item and assumed cost accounting responsibilities for Evansville plant. COST ACCOUNTANT 1981 —1986 . Managed accounting area including product costing,financial reporting and analysis for Evansville, IN plant and earned responsibility for largest plant in Belding, MI for juice manufacture with revenue of$5-6M. • Set up budgets on computer and assisted in budgeting process. Plus,set up and maintained fixed assets. • Assumed responsibilities held by assistant controller when position was vacated in 1984, including supervision of accounts payable and completion of year end work. Entrusted with training of new assistant controller. EDUCATION • Real Estate Education Company, Sales License, 2002. • Milligan College, Bachelor of Science in Accounting, 1981. COMPUTER SKILLS • Software: QuickBooks Expertise, Excel, MSWord, Access, Outlook, dBASE, Pagemaker, PowerPoint, MAS90, Great Plaines Dynamics, Accpack, Peachtree, and Blackbaud. Tim Bates timbates(c�r7foxvalley.net 2006 12/1512008 2:04:55PM Ecker Center for Mental Health Pagel Statement of Financial Position as of November 30, 2008 Current Year Prior Year Variance • Assets Current Assets 809,048.23 970,080.01 (161,031.78) Long Term Investments 140,056.03 168,790.33 (28,734.30) Receivables 344,987,88 402,559.60 (57,571.72) Other Current Assets 11,470.57 15,825.30 (4,354.73) Fixed Assets 1,794,777.14 1,842,519.14 (47,742,00) Total Assets 3,100,339.85 3,399,774.38 (299,434.53) Liabilities and Net Assets Liabilities Current Liabilities 420,827.69 376,687.25 (44,140.44) Long-term Liabilities 1,134,878.33 1,154,572.69 19,694.36 Total Liabilities 1,555,706.02 1,531,259.94 (24,446.08) Net Assets Unrestricted Net Assets 1,544,633.83 1,868,514.44 (323,880.61) Total Net Assets 1,544,633.83 1,868,514.44 (323,880.61) Total Liabilities and Net Assets 3,100,339.85 3,399,774.38 299,434.53 12/15/2008 1t47:29PM Ecker Center for Mental Health Page 1 Statement of Activity For the Month ended November 30, 2008 Month Month Year to Date Year to Date Year to Date Percent Actual Budget Actual Budget Variance Variance Revenues Public Support 389 10,418 13,534 49,091) (35,556) (72.43)% Fees&Grants-Governmental 59,058 365,586 1,548,534 1,932,893 (384,358) (19.89)% Fundraising 21,075 25,000 74,733 66,500 8,233 12.38% Program Service Fees 28,426 31,331 152,171 156,655 (4,484) (2.86)% Other Revenue 4,008 5,062 26,243 2.5,310 933 3.69% Total Revenues 112,957 437,397 1,815,215 2,230,448 (415,232) (18.62)% Expenses Personnel and Benefits 272,589 277,539 . 1,563,162 1,570,091 6,930 0.44% Program Expenses 29,783 26,607 141,027 148,579 7,552 5.08% . Specific Assistance to Clients 12,152 14,431 77,286 72,155 (5,131) (7.11)% Occupancy 46,707 57,780 263,400 288,903 25,503 8.83% Development&PR 18,729 20,175 46,511 58,595 12,084 20.62% Management&General 856 1,281 23,773 27,705 3,932 14.19% Other Expenses 12,800 16,922 101,036 88,824 (12,212) (13.75)% Depreciation 9,036 8,877 45,182 44,385 (797) (1.80)% Total Expenses 402,653 423,611 2,261,377 2,299,238 37,861 1.65% . NET SURPLUS/(DEFICIT) (289,696) 13,786 (446,161) (68,790) (377,372) (548.59)% 1 ECKER CENTER FOR MENTAL HEALTH, INC. AND FOX VALLEY MENTAL HEALTH FOUNDATION COMBINED FINANCIAL STATEMENTS AS OF JTJNE 30, 2008 TOGETHER WITH AUDITOR'S REPORT Dugan&Lopatka Certified Public Accountants&Consultants A.Professional Corporation 104 East Roosevelt Road Wheaton,Illinois 60187 (630)665-4440 Fax(630)665-5030 http://www.tdip.com Michael J.Dugan e-mail:info@tdip.com Jerry Lopatka Mark F.Schultz Peter J.Zich Leo M.Misdotn T.Brett Flickinger Karen M.Olson INDEPENDENT AUDITOR'S REPORT Gwen Henry Board of Directors of Ecker Center for Mental Health, Inc.: We have audited the accompanying combined statements of financial position of Ecker Center for Mental Health, Inc;, (the Center) and Fox Valley Mental Health Foundation .(the Foundation) as of June 30, 2008, and the related combined statements of activities, functional expenses, and cash flows for the year then ended. These combined financial statements are the responsibility of the Center's and the Foundation's management: Our responsibility is to express an opinion on these combined 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 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 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 Ecker Center for Mental Health, Inc. as of June 30, 2008, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. DUGAN & LOPATKA Wheaton, Illinois October 16, 2008 A F F WAIF INPACT INTERNATIONAL NETWORK OF PROFESSIONAL ACCOUNTANTS ECKER CENTER FOR MENTAL HEALTH, INC. AND FOX VALLEY MENTAL HEALTH FOUNDATION COMBINED STATEMENT OF FINANCIAL POSITION JUNE 30, 2008 ASSETS Ecker Center Fox Valley for Mental Mental Health Combined Health Foundation Eliminations Total CURRENT ASSETS: Cash and cash equivalents-unrestricted $ 1,207,030 $ 58,324 $ - $ 1,265,354 -restricted 35,067 30,721 - 65,788 Investments 146,979 - - 146,979 Program service fees receivable 32,864 - - 32,864 Grants receivable 174,500 - 174,500 Pledges receivable - 29,815 - 29,815 Due from related party 97,673 - (97,673) - Deposits 11,110 - (4,795) 6,315 Prepaid expenses 15,475 - - 15,475 Total current assets 1,720,698 118,860 (102,468) 1,737,090 ' PROPERTY AND EQUIPMENT: Land 381,832 77,829 - 459,661 Building 1,548,082 294,171 - 1,842,253 Building improvements 522,850 - - 522,850 Furniture and equipment 259,053 - - 259,053 Vehicles 47,030 - - 47,030 Leasehold improvements 55,357 - - 55,357 Software 12,977 - - 12,977 2,827,181 372,000 - 3,199,181 Less - Accumulated depreciation 996,666 34,209 - 1,030,875 Net property and equipment 1,830,515 337,791 - 2,168,306 OTHER ASSETS: Pledges receivable, net of current maturities above - 55,867 - 55,867 $ 3,551,213 $ 512,518 $ (102,468) $ 3,961,263 The accompanying notes are an integral part of this statement. 1;:X1i.i.I3f.T 1 • LIABILITIES AND NET ASSETS Ecker Center Fox Valley • for Mental Mental Health Combined Health Foundation Eliminations Total CURRENT LIABILITIES: Accounts payable $ 58,1.18 $ 720 $ - $ 58,838 Accrued wages and payroll taxes .221,088 - - 221,088 Accrued vacation pay 115,819 - - 115,819 Due to related.party - 97,673 (97,673) - Rent deposit 5,220 4,795 (4,795) 5,220 Capital lease, current 17,377 - - 17,377 Notes payable, current 990,310 10,172 - 1,000,482 Total current liabilities 1,407,932 113,360 (102,468) 1,418;824 LONG-TERM LIABILITIES: Capital lease, net of current portion 18,418 - - 18,418 Notes payable, net of current portion 134,064 252;323 - 386,387 Total long-term liabilities 152,482 252,323 - 404,805 Total liabilities 1,560,414 365,683 (102,468) 1,823,629 COMMITMENTS NET ASSETS: Unrestricted 1,781,232 32,132 - 1,813,364 Temporarily restricted 209,567 114,703 - 324,270 Total net assets 1,990,799 146,835 - 2,137,634 $ 3,551,213 $ 512,518 $ (102,468) $ 3,961,263 EY 1BIT 2 Page 1 of 2 ECKER CENTER FOR MENTAL HEALTH_INC. AND FOX VALLEY MENIAL HEAI..THL=OUND. J 1ON. COMBINED STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30.200a Ecker Center for Mental Health Fox Valley Mental Health Foundation Combined Total Temporarily Temporarily Temporarily Unrestricted restricted Total Unrestricted restricted Total Eliminations Unrestricted restricted Total REVENUES,GAINS,AND OTHER SUPPORT: Contributions- United Way and Community Chest $ 8,525 $ 114,500 $ 123,025 $ - $ - $ - $ - $ 8,525 5 114,500 3 123.025 Other revenue 40,395 35,067 75,462 - 114,703 114,703 40,395 149,770 190,165 Fundraising 82,161 - 82.161 - - - - 82,161 82,161 In-kind 306,011 - .306,011 - - - - 306,011 - 306,011 Fees and grants from governmental agencies- - - Depanment of Human Services- - - Fees for service 2,244,246 - 2,244,246 - - - - 2,244,246 - 2,244,246 Grant-in-aid . 1,826,271 - 1,826,27I - - - - 1,826,211 - I,826,271 Title XX 16,696 - 16,696 - - . - 16,696 - 16,696 Township 708 funds 113,638 60,000 173,638 - - - - 113,638 60,000 173,638 Department of Housing and Urban Development 298,765 - 298,765 - - - - 298,765 - 298,765 Other governmental grants 38,411 38,411 38,411 38,411 Other revenues- Program service fees 433,751 - 433,751 - - - - 433,751 - 433,751 Rent income 59,744 - 59,744 56,700 - 56,700 (56,700) 59,744 - 59,744 Interest income 32.123 • - 32,123 329 - 329 (4,884) 27,568 - 27,568 Dividend income 6,494 - 6,494 • - - - - 6,494 - 6,494 Unrealized loss on investments (21,779) - (21,779) - - - - (21,779) - (21,779) Other revenues 10,630 - 10,630 - - - - 10,630 - 10.630 Net assets released from restrictions 190,400 (190,400) - - - 190,400 (190,400) - Total revenues,gains.and other support 5,686,482 19,167 5,705,649 _ 57,029 114,703 171,732 (61,584) 5,681,927 133,870 5,815,797 EXPENSES: Program services- Outpatient 888,905 - 888,905 - - - - 888,905 - 888,905 Psycho-social rehabilitation 317.632 - 317,632 - - - - 317,632 - 317,632 Psychiatric emergency program 415,608 - 415,608 - - - - 415,608 - 415,608 Preadmission screening 60,639 - 60,639 - - - 60,639 - 60,639 Housing and urban development 221.359 - 221,359 37,323 - 37,323 (61,584) 197,098 - 197.098 HUD leasing 182,082 - 182,082 - • - - - 182,082 - 182.082 Supervised residential 287,255 - 287,255 ' - - - - 287,255 - 287,255 Client transition subsidy 66,589 - 66,589 - - - - 66,589 - 66,589 Psychiatric services 485,966 - 485,966 - - - - 485,966 - 485.966 Case coordination 631,570 - 631,570 - - - - 631,570 - 631,570 - The accompanying notes are an integral part of this statement. EXE-U 1i Ease s of 2 ECKEPRCE;ITER FOR MENTAL HEALTHINC, ?.ND FOX VALLEY MENThL HEALTH.FOUNDATION COMBINED STATEMENT OF ACTIVITIES FOR TFIE YEAR ENDED JUNE 30,2008 Ecker Center For Mental Health Fox Valley Mental Health Foundation Combined Total Temporarily Temporarily Temporarily Unrestricted restricted Total _ Unrestricted restricted Total Eliminations Unrestricted restricted Tc_?, EXPENSES:(Continued) Program services-(Continued) Community integrated living arrangement residential $ 292,150 $ - S 292,150 $ - $ - $ - S - S 292,150 S - 3 212.1 Supported residential scattered sites 130,886 - 130,886 ' - - - - 130,886 i 30.386 Supported residential 230,583 - 230,583 - - - - 230,583 - 230,5$3 Crisis Residential 491,602 - 491,602 - - - - 491,602 - t91.602 Community counseling- • Tri-Village 70,347 - 70,347 - - - - 70,347 - 70.347 St.Charles 85,253 - 85,253 - - - - 85,253 - 55.253 Total program services 4,858,426 - 4,858,426 37,323 - 37,323 (61,584) 4,834,165 834.t ` Supporting services- Management and general 598,880 - 598.880 13.342 - 13,342 - 612,222 - 6112.2222 Fundraising 120,925 - 120,925 1,518 - I,518 - 122,443 - 122.443 Total supporting services 719,805 - 719,805 14,860 - 14,860 - 734,665 734,665 Total expenses 5,578,231 - 5,578,231 52,183 - 52,183 (61,584) 5,568,830 - 5,568,830 CHANGE IN NET ASSETS 108,251 19,167 127,418 4,846 114.703 119,349 - 113,097 133,870 246,967 NET ASSETS,Beginning of year 1,672,981 190,400 1,863,381 27,286 - 27,286 - 1,700,267 190,400 1,390,66 NET ASSETS,End of year $ 1,781,232 $ 209,567 S 1,990,799 S 32,132 $ 114,703 $ 146,335 ,S - 3 1,813,364 S 324,27C S 2.137:634 The accompanying notes are an integral part of this statement. EXHE.,IT 3 ECKER CENTER FOR MENTAL HEALTH, INC. AND FOX VALLEY MENTAL HEALTH FOUNDATION COMBINED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2008 Ecker Center Fox Valley for Mental Mental Health Combined Health Foundation Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES: Change in total net assets $ 127,418 $ 119,549 $ - $ 246,967 Adjustments to reconcile change in total net assets to net cash provided by operating activities: Depreciation 109,186 9,805 - 118,991 Unrealized loss on investments 21,779 - - 21,779 (Increase) decrease in assets: Program service fees receivable (302) - - (302) Grants receivable 3,310 - 3,310 Prepaid expenses and deposits 15,107 - - 15,107 Increase (decrease) in liabilities: Accounts payable 18,336 720 - 19,056 Accrued expenses 22,378 - - 22,378 Contributions restricted for long-term purposes: Cash contributions - (29,021) - - (29,021) Restricted unconditional promises to give - (85,682) - (85,682) Total adjustments 189,794 (104,178) - 85,616 Net cash provided by operating activities 317,212 15,371 - 332,583 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments (6,729) - - (6,729) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments of long-term debt (51,018) (9,470) - (60,488) Payments on capital lease (16,205) - - (16,205) Capital campaign collections - 29,021 - 29,021 Net cash provided by (used in) financing activities (67,223) 19,551 - (47,672) NET CHANGE IN CASH AND CASH EQUIVALENTS 243,260 34,922 - 278,182 CASH AND CASH EQUIVALENTS, Beginning of year 998,837 54,123 - 1,052,960 CASH AND CASH EQUIVALENTS, End of year $1,242,097 $ 89,045 $ - $1,331,142 SUPPLEMENTAL DISCLOSURES: Noncash investing and financing transactions: Financed purchase of equipment $ 52,000 $ - $ - $ 52,000 Interest paid $ 70,834 $ 21,195 $ (4,884) $ 87,145 The accompanying notes are an integral part of this statement. EXHIBLL4 _ Pb&clnf7 FCKFR CFNTE$FOR MEt1TAI 1-1F61 TH 11HC. Akin FOX YA11-FY MFNTAI.HEALTH FOUNDATION WOMBINF.72 STAIEblECULDF_EIDICTIONAL.EXPENSFs_ FOR THE.MAA Eli 2FD 3IJNF 30 MI • Edcet Center for Mental Health,Inc. Program Services Community Integrated Psychiatric Housing and Living Supported Psycho-social emergency Preadmission Urban Supervised Client Transition Psychiatrist Case Arrangement Residential Outpatient Rehabilitation program _! screening Development 1111D Leasirg - Residential Subsidy Services Coordination Residential Scattered Sites PERSONNEL: Salaries $ 419,042 $ 195.608 S 316,159 5 44.875 S 106,109 1 33,710 $ 193,892 S - S 178,866 $ 456,723 S 190,353 S 30,250 Payroll taxes 32.948 13,321 23,183 3,308 7,715 2,379 13,928 - 9.936 33,307 14.019 2,289 Employees benefits 55,544 24,346 41,303 5.928 13,930 4,575 26,060 1.986 59,415 25,082 3,87) ' Total personnel 507,534 _ 233,275 380,645 54,111 127,754 40,664 233,880 - 190,788 549,445 229,454 36,412_ COMMODITIES: I office supplies 6.988 2.444 L.157 299 843 93 1,115 - 22 8,046 717 456 Priming and publicarions 409 - 380 - - - - - 129 - Program supplies 293.174 2.950 1,649 - 2.620 • 1,599 : 1.916 - 733 1.266 - . Food and beverages - 2,814 ` - - 8,544 1,426 6.189 - • 10.500 - Total commodities 300,571 8,208 3,186 299 12,007 3,118 9.220 - 22 8,908 12,483 456 CONTRACTUAL SERVICFS: Advenising 10 80 142 - 5(4 334 93 - 19 693 61 Consultation 6.934 3,059 2,505 300 1,147 214 1,738 - 268,889 8,92( 1,696 657 Rental or equipment and building - - - - - - - - - - Rental of building - - - 56,700 129,503 - - - - - Specific assistance-individuals 8 - 557 - 1,021 886 450 66,589 - 7,914 I1,061 86,407 Insurance 5,151 4,909 4,857 472 5,034 472 2,979 - 1,587 3,092 4.568 472 Utilities 18.212 17,378 1.529 1.529 9.705 1.529 6.984 - 5.561 11.122 6,279 1,529 Repairs and maintenance 20,485 20,507 • 1,484 1,484 3,744 1,494 12.792 - 5.466 11,873 14.237 1,484 Pmresslonal scry ices - - - - - - - - - - Telepinne 5,027 2.917 13,373 537 1,702 412 2,841 - 176 5,278 4.028 345 Postage - - - Dues and memberships - - - - - - - - - Real estate taxes - - - - - - - Outside services 141 264 115 19 39 13 73 - 5,877 270 71 12 Total contractual services 55.968 49,114 24,562 4.341 79,606 134,857 27.950 66,589 287,575 49.163 42,001 90,906 OTHER EXPENSES: Interest 12.487 11,915 1,049 1.049 - 1.049 8,865 3.813 7.626 - 1,049 Travel 78 179 2,775 . 893 1,525 221 - 32 6,239 151 745 Training and education 759 354 1,472 - 199 30 145 75 854. 476 30 Special events - - - - - - - - - -Miscellaneous 327 327 1,352 III • 99 • 127 - 184 460 138 __- 223 Total other expenses 13,651 13,800 5.477 1.049 1.191 2,604 9.358 - 4,104 _ 15.179 765 2.047 Total expenses before depreciation 877,724 304,397 413,870 59,800 220,558 181,243 2130,408 66,589 482,489 622,695 284,703 129.821 DEPRECIATION 11,181 13.235 1.738 839 801 839 6,847 - 3.477 8,875 7,447 1.065 TOTAL EXPENSES $ 888,505 S 317.632 5 415,608 S 60,639 $ 221,359 S 182,082 $ 287,255 S 66,589 $ 485.966 S 631,570 S 292,150 5 130,886 The accompanying notes are an intcgnal pan or this statement_ • • \u:R:T a P.a.7 • • F.CEER CENTER FOP,MPI'TAI HP Al Tit 114C AND FOX VAII EY MENTALJ4FAI TH E01 iNUTION COMBI34EF)STATEMENT OF Fl i.Nr;T1ONAL EXPFNcF-c FOR T1IF YEAR FUDF1)•1I1NE 3(4 700, Ecker Center for Mental Health,Inc.•CO-di:rd Fore Valley Menial Health Foundation Toai C era:. Program Program ar Program services-condn o Supporrina Services Serv'res Spooning Services Sue fonint Ser1rm Communir Counsel Sc ices Reusing end Supponod Crisis Management ar4 Urban Management and Tots;(no: in•-? R.aidential Residential TA-\'Igage St.Oaries Total General Fundraising Developrrenr General Fundraising Eliminations Expenses. _ PERSONNEL: Salaries S 103,398 S 344,760 S . 45,034 S • 55229 S 2.711.038 S 324.181 S 61.529 S - S - S - S - 5 3.CSr3--:5 Payroll taxes 7.278 25.532 3.353 4.530 197.026 23,173 4,195 - - - 13.1.3 Employees benefits 12,905 45.001 5.745 7,735 333,425 51,328 3.474 - - - - 39=•=30 Toul personnel 120,581 415.293 54.132 67.494 3,241,462 398,682 74.198 - - - COMMODITIES: Office supplies I.006 1.953 936 433 26.553 35.630 3,862 - 2,977 18 - .59-f.'if Printing and publications . 68S86 1.161 3E5 • - • 2•534 Program supplies 2.838 1,052 293 293 310.353 • 733 - - - ' - -"'-" Food a-d overages 6,707 4,916 - - 41.096 - - - - __ - -I i•:l.'i3O • Total commodities 10,551 7,921 1,229 844 379,022 37,525 4.248 - 2,977 18 473•*:'1 CONTRACTUAL SERVICES: _ Advenising _ 22 1.968 2.717 2,224 - - - - Consultation 1,103 3,158 762 837 301,920 3.235 407 - - • 3C5•551 Rental of epuiprrent and building -. - - 3,003 - - ' • Rental of building 71.160 2,400 9.70) 269,463 - - - (56,7031 .-..-_ Spvil3 c assistance-individuzls 178 1,226 - 176,197 - - 173.757 Insurance 3.144 3,092 2.813 2,896 45,535 8,952 - - . - 54•493 Utilities 18.906 11,122 - 181 111.566 16.547 105 - - 123,313 Repairs and tneinrenace 1.055 23,546 - 1.211 120.862 18,754 - i6,023 - 1`- Professional services - - . - 26.369 - - 127 - • 25.495 Telephone 1.310 4,033 2,054 1,630 45,663 5,625 754 - - - - 52,:L1 Postage - - - _ 3,3?3 2,612 - - c--.?a-. Dues and memberships - . 12,736 1.495 - - 14. 231 Real note taxes - _ - 773 - - 713 - Osuide ser-ices 37 129 6,745 16 13.621_ - - . - - 13.621 Total tontrecoral services 96,893 46.328 14,774 16.471 1,08 i,093 102,084 7,492 16.128 127 - (56.700, 1,156.2 29 OTHER EXPENSES, interest - 7,626 - - 56,533 14,306 - 21,193 - - (4,854) 37.i45 Travel 1,908 - - - . 14.746 . 6.524 974 - - . 22.2er e t _ - . Training and eiucation 395 238 - - 5.027 233 Special events _ _ - - 33.784 - - - • 33.784 Miscellaneous 255 113 42 50 3.551 1.563 - - 433 1.5C0 _ - 7.1244 Total other expenses 2.558 7,977 42 50 79,852 22.623 34,753 = 21.195 433 1.500 (4,884) 155. '7 Total expuxs before deprariarion 230.583 477..519 70.177 84.859 4,787,435 560.914 120.696 37.523 3,537 1.518 (61.584.1 5.449.3.19 DEPRECIATION - 14.093 170 394 70,991 37.966 239 - 9.805 - _ 113.9.91_ TOTAL EXPENSES 5 130.533 S 491,602 $ 70.347 S 85.253 S 4.853,426 5 .593:33C 5 120.925 37..323 13,342 5 1.518, 5 (61,5341 5 5.555-530 The accompanying notes are an in:cgral pan of this statertmr. ECKER CENTER FOR MENTAL HEALTH INC. AND FOX VALLEY MENTAL HEALTH FOUNDATION _NOTES TO COMBINED FINANCIAL STATEMENTS JUNE 30, 2008 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF ACTIVITIES: Ecker Center for Mental Health, Inc. (the Center) is a not-for-profit charitable organization offering various psychiatric services for adults primarily in Kane and Western Cook Counties. Fox Valley Mental Health Foundation (the Foundation) is a not-for-profit foundation created to support the work of the Center. The following is a brief summary of the accounting policies adopted by the Center and the Foundation: Basis of combination- • The Foundation is combined with the Center for financial reporting purposes due to common control. All significant intercompany account balances and transactions have been eliminated in the combined financial statements. Cash and cash equivalents - The Center and the Foundation consider highly liquid investments with a maturity of three months or less to be cash equivalents. Accounts receivables - Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Center and the Foundation establish allowance for doubtful accounts based on past experience and analysis of current receivable collectibility. Pledges receivable- Pledges are recognized as revenue in the period pledged. Pledges are recorded at net realizable value less allowance for uncollectible pledges if expected to be collected in more than one year. The allowance for uncollectible pledges is based on historical collections experience. Conditional pledges are recognized only when the conditions on which they depend are substantially met and the pledges become unconditional. Property and equipment - Property and equipment whose cost exceeds $5,000 and have an estimated useful life of greater than one year are capitalized. Maintenance, repairs and renewals which neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Property and equipment are recorded at cost or estimated fair value, if donated. Gains or losses on dispositions of property and equipment are included in income. Depreciation is computed under the straight-line method over the estimated useful lives of the assets as follows: Building and improvements 15-20 years Equipment, furniture and fixtures 3-12 years Vehicles 3-5 years 2 (l)_. ,SLIM.MARY OF SIGNIFICANT ACCOUNTING POLICIES„AND NATURE OF ACT[VCTIES: (Continued) Contributed goods and services - Certain contributed goods and supplies are recorded as support and expenses at fair market value when determinable, otherwise, at values indicated by the donor. Unpaid volunteers have made contributions of their time to develop and administer the Center's programs. No amounts have been reflected in the combined financial statements for those services since they do not meet the criteria for recognition under accounting principles generally accepted in the United States of America. Supp_ort - Contributions received and unconditional promises to give are measured at their fair values and are reported as an increase in net assets. The Center and the Foundation report gifts of cash and other assets as restricted support if they are designated as support for future periods. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the combined statement of activities as net assets released from restrictions. Donor restricted contributions whose restrictions are met in the same reporting periods are reported as unrestricted support. The Center and the Foundation report gifts of goods and equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how or when the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about how long those long-lived assets must be maintained, the Center and the Foundation report expirations of donor restrictions when the donated or acquired long-lived assets are placed in service, Use of estimates - The preparation of combined financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the combined financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material to these combined financial statements. Functional allocation of expenses - The cost of providing the Center's and the Foundation's various programs and supporting services have been summarized on a functional basis in the combined statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. - 3 - S2) INVESTMENTS: Investments of the Center are carried at fair value and at June 30, 2008 are summarized as follows: Cost Fair Value American Funds - Growth and Income $ 131,150 $ 140,697 T. Rowe Price Prime Reserve 6.282 6,282 Total investments S 131 432 $ 146,9_7_9 Total investment return consists of the following for the year ended June 30, 2008: Interest income $ 235 Dividend income 6,494 Unrealized loss on investments (21,779) Total investment return $— 1 5,QQ (3) PLEDGES RECEIVABLE: Unconditional promises to give which approximate fair market value as of June 30, 2008 are due. as follows: Amounts due in: 29,815 Less than one year One to five years 55,867 $ 85,682 There were no conditional promises to give at June 30, 2008. (4) RELATED PARTY TRANSACTIONS: into an agreement to lease a facility to the Center at a monthly rental Foundation entered t o The g payment of $4,725. The Center has guaranteed repayment of the debt on this leased facility in the amount of $298,000. The mortgage rate is guaranteed for a period of seven years beginning May, 2005 and carries interest at a fixed rate of 5.99%. The Center has advanced $97,673 to the Foundation as of June 30, 2008. This principal is to be repaid on May 20, 2011 and interest is paid annually at a rate of 5.00%. Interest paid by the Foundation to the Center was $4,884 for the year ended June 30, 2008. ).__.._ TAX-EXEMPT STATUS: The Center has been determined to be exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code pursuant to a letter dated June, 2002. However, certain debt-financed rental property is subject to unrelated business income tax. The Foundation has been determined to be exempt from income taxes under Section 501.(c)(3) of the internal Revenue Code pursuant to a letter dated January, 2005. (6)_ COMIvIITMEN'T'S AND CONTINGENCIES: Operating leases - The Center is obligated under the terms of operating leases for office space and equipment. The office space lease agreements require total monthly rental payments between $200 and $5,800 with various expiration dates through December, 2008. One of the leases for $802 a month does not have a determined end. The terms of the lease agreements require the Center to he responsible for utilities, general maintenance, and public liability insurance. The Center also :eases a facility from the Foundation, a related party, which requires a monthly rental payment of $4,7 25. The lease is renewed every year for one year. The Center leases on a month-to-month basis various apartment units on behalf of the Center's clients through its HUD Leasing Program. The monthly rental payments are between $628 and $775. The Center has an equipment lease that requires a monthly rental payment of $129 with an. expiration dates of December 10, 2013. The Center is also responsible for general maintenance of the equipment and to maintain adequate insurance. Total future minimum lease commitments for the remaining terms of the teases as of June 30, 2008 are summarized as follows: Equipment For the Years Ending O`ffice Space Rental Total 2009 $ 10,820 $ 1,548 $ 12,368 2010 9,619 1,548 11,167 2011 9,619 1,548 11,167 2012 9,619 1,548 1.1,167 2013 - 1,548 __ 1,548 Total : 1� �7 7 74D $__42t 17 Total rental expense for the years ended June 30, 2008 was $272,466. - 5 - (6) COMMITMENTS AND CONTINGENCIES: (Continued) Capital leases - The Company has a capital lease for equipment. The lease agreement contains a bargain purchase option at the end of the lease term. The following is an analysis of the leased asset included in Equipment: Equipment $ 52,000 Less - Accumulated depreciation (17.333) $ 14.667 The following is a schedule by years of future minimum payments required under the lease together with their present value as of June 30, 2008: Year Ending June 30: 2009 $ 19,332 2010 19,117 Total minimum lease payments 38,449 Less - Amount representing interest (2,654) • Present value of minimum lease payments ,-35.795 Federal and state grants - The Center receives significant financial assistance from several federal, state and local government agencies in the form of grants. Program revenue in excess of program expenses is typically subject to recapture under various provisions. Additionally, the disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability to the Center. (7) LEASING ACTIVITY: Rental income is derived from leasing office space to unrelated tenants under non-cancelable operating leases with monthly rent amounts between $350 and $1,233 and with terms of one to five years, at which time the majority of the tenants will have an option to renew their leases. Future minimum rents under the leases at June 30, 2008 are as follows: • 2009 $ 30,489 2010 10,875 2011 4,433 Total _. i5_,797 The rental real estate held for lease consists of 6,691 square feet which represents approximately 19% of the Center's premises in Elgin, Illinois. (H)._....... NOTES PAYABLE: Notes payable at June 30, 2008 consisted of the following: The Center- Payable in monthly installments of$7,859 including interest at 5.90%, due November, 2008, and secured by land and a building at 1.845 Grandstand Place, Elgin, Illinois. $ 975,270 Payable in monthly installments of$2,034 including interest at 5.6%, due January, 201.6, and secured by land and a building at 1475 Royal Boulevard, Elgin, Illinois. 149,104 The Foundation. - Payable in monthly installments of$2,148 including interest at 5,99%, due May, 2011, and secured by land and a building at 1383 Abbott Drive, Elgin, Illinois. _ 262.495 Total $1y,.a .r^ Principal payments due on long-term debt during each of the next five fiscal years are as follows: • Year ending June 30 _ Center Foundation Combined 2009 $ 990,31.0 $ 10,172 $ 1,000,482 2010 1.7,315 10,803 28,118 2011 18,314 241,520 259,834 2012 19,371 - 19,371 2013 20,489 - 20,489 .Thereafter 58.575 _ - 58,575 Total $ 1;124,374 1,__2. 4495 $ 1,386,3Q Additionally, the Center has a line of credit that allows borrowings up to $500,000 payable on demand, with interest at the prime rate less .25 percentage points. The line is collateralized by substantially all business assets not otherwise secured. There were no amounts outstanding on this line of credit during the fiscal year ended June 30, 2008. s - 7 - (9) EMPLOYEE RETIREMENT PLAN: The Center maintains an employee retirement plan available to all full-time employees who have completed one year service. The Center's required contribution is a percentage of the employee's annual salary based on years of service as follows: Years of Service Percent 1 - Lessthan3 2.5% 3 - Less than 6 4.0% 6 - Less than 10 5.5% 10 or More 7.0% All contributions are fully vested in tax-sheltered annuities. The Center follows the policy of funding contributions to the Plan on a current basis. The contribution for the year ended June 30, 2008 was $101,202. (10) TEMPORARILY RESTRICTED NET ASSETS: Temporarily restricted net assets relate to time restrictions related to pledges receivable for the period after June 30, 2008 as follows: Center Foundation Total $ 2O9.5b7 $ 14 71 (11) CONCENTRATIONS: The Center maintains its cash accounts in financial institutions located in Elgin, Illinois. The bank balances at each institution are insured up to $100,000 by the Federal Deposit Insurance Corporation. Bank balances periodically exceed federally insured limits. Approximately 72% of the Center's funding for year ended June 30, 2008 was provided by grants from the U.S. Department of Human Services. EXHIBIT B ASSURANCES The SUB-RECIPIENT hereby warrants and represents 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 the 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 SUBGRANTEE 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 11246-Equal Opportunity, as amended by Executive Orders 11375 and 12086,and implementing regulations issued at 41 CFR Chapter 60; 14 (F) Executive Order 11063-Equal Opportunity in Housing, as amended by Executive Order 12259, and implementing regulations at 24 CFR Part 107; (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 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 County, 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 15 � f 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 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 Planning and Neighborhood Services 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 16 I 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 18 `,�.iOF F<C \a' Agenda Item No. Gi , City of Elgin g °/tirEDFF.. N t a�� January 21, 2010 TO: Mayor and Members of the City Council FROM: Sean R. Stegall, City Manager �. AP Qa/ity ,Gd� Denise Momodu, Associate Planner SUBJECT: Community Development Block Grant(CDBG) Sub-Recipient Agreement for the Ecker Center for Mental Health PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information regarding the Sub-Recipient Agreement with the Ecker Center for Mental Health. RECOMMENDATION It is recommended that the City Council approve the Sub-Recipient Agreement with the Ecker Center for Mental Health for the Elevator Renovation Project in the amount of$79,739. BACKGROUND The Ecker Center for Mental Health is a not-for-profit organization providing mental health services to adults throughout the Elgin area. The Ecker Center provides residential, inpatient, and outpatient programs. The Ecker Center's principal place of business is 1845 Grandstand Place in Elgin. The Ecker Center applied for Community Development Block Grant (CDBG) funds in 2008. The funding was approved by the City Council in March 2009 and incorporated into the 2009 Annual Updated Action Plan. The plan was submitted to the Department of Housing and Urban Development(HUD) and approved in May 2009. The Ecker Center was allocated a total of $79,739 in CDBG funds from the 2009 CDBG program year. The funds will be used by the Ecker Center to complete renovations and repairs to the elevator for the building located at 1845 Grandstand Place in Elgin. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. Community Development Block Grant Sub-Recipient Agreement for Ecker Center January 21, 2010 Page 2 Cyk____ FINANCIAL IMPACT The allocation of CDBG funds to complete the Ecker Center project will total $79,739. Sufficient funds are budgeted ($79,739) and available ($79,739) to enter into this agreement in the CDBG Fund, account number 230-0000-791.93-36, "Major Repairs-Buildings" and project number 154565 "Ecker Center Elevator Renovation Project". L GAL IMPACT None. ALTERNATIVES 1. The City Council may choose to approve the Sub-Recipient Agreement with the Ecker Center for Mental Health in the amount of$79,739. 2. The City Council may choose not to proceed with the Sub-Recipient Agreement with the Ecker Center for Mental Health at this time. Respectfully submitted for Council consideration. DMM Attachment y OF.E<C City of Elgin Memorandum ,r6 10 °R rCDF�� Date: February 15, 2010 To: Denise Momodu, Associate Planner From: Jennifer Quinton, Deputy City Clerk Subject: Resolution No. 10-38, Adopted at the February 10, 2010 Council Meeting Enclosed you will find the agreement listed below. Please retain a copy for your records. If you have any questions please feel free to contact our office 847-931-5660 and we will do our best to assist you. Thank you. • Community Development Block Grant Sub-Recipient Agreement with the Ecker Center for Mental Health, Inc.