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HomeMy WebLinkAbout11-97 Resolution No. 11-97 RESOLUTION AUTHORIZING EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT SUB-RECIPIENT AGREEMENT WITH 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 Jennifer Quinton, Acting City Clerk, be and are hereby authorized and directed to execute a community development block grant sub-recipient agreement on behalf of the City of Elgin with Ecker Center for Mental Health,Inc.for retaining wall restoration at 1845 Grandstand Place, a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: June 8, 2011 Adopted: June 8, 2011 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Jennifer Quinton Jennifer Quinton, Acting City Clerk AGREEMENT BETWEEN THE CITY OF ELGIN AND THE ECKER CENTER FOR MENTAL HEALTH,INC. This AGREEMENT is entered into as of the 8th day of June ,2011,by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter called "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 15, 2009, and a revised scope of work stamped received January 26, 2011, submitted by the SUB-RECIPIENT entitled "Retaining Wall Construction" 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)2010-2011. B. All funding provided to SUB-RECIPIENT shall be used solely to restore the existing retaining wall along the southern perimeter of the Ecker Center's facility at 1845 Grandstand Place,Elgin,Illinois. About 3,300 low and moderate income individuals will benefit from the Ecker Center's program in its 2010-2011 fiscal year. The subject building will serve 100 percent low and moderate income persons as defined by 24 CFR 570.208 (a) (2) (i) (A). Such funding shall be used only for the restoration of the retaining wall, 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 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. Monthly Progress Reports 1. The SUB-RECIPIENT shall provide a Monthly Progress Report to the CITY each month, reporting on the status of the PROJECT in relation to the Project Implementation Schedule. The monthly progress reports shall begin upon the 2 signing of this Agreement and shall be submitted until the completion of the project or until directed to discontinue such reports in writing by the CITY. 2. Monthly progress reports shall be due on the 10th day of the following month, for the previous month's activities. 3. 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). 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. 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 the CITY without the required documentation. H. SUB-RECIPIENT shall record and report monthly to the CITY all program income (as defined in 24 CFR 570.500(a)) generated by activities carried out with CDBG funds made available under this Agreement. Any such program income shall be returned to the CITY. Written request for an exception to this section must be made in writing to the CITY's Community Development Department. Such request shall describe why the SUB-RECIPIENT needs the income, the specific activities the SUB-RECIPIENT will undertake with the funds, and how the SUB-RECIPIENT will report income and expenditures to the CITY. A written response to the request will be provided to the SUB- RECIPIENT from the CITY. The use of any program income by the SUB-RECIPIENT shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, to the extent any such income is used during the Agreement period for activities permitted under this Agreement, SUB-RECIPIENT shall reduce requests for additional funds by the amount of any such program income balances on hand. All unexpended program income shall be returned to the CITY at the end of this Agreement period. Any interest earned on cash advances from the U.S. Treasury and from funds held in a revolving fund account is not program income and shall be remitted promptly to 3 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$30,838(hereinafter"Grant Funds"),to be paid in the manner set forth herein at Section VII. B. This PROJECT shall be identified by the following project and account numbers: Project No. 154650 and Account No. 230-0000-791.93-36 in the amount of $30,838, 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 project activities undertaken in whole or in part with CDBG funds at a rate of 6.7% for each year and portion of each year remaining on the ten-year useful life of the Facility improvements. The ten-year compliance period shall begin on the commencement date of this Agreement. This provision shall not be construed as limiting the CITY from asserting any claims against the 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 percent of the persons served on an annual basis shall be at or below 80 percent of the Median Family Income in order for the SUB-RECIPIENT to maintain eligibility for the CDBG funds provided for herein. Said income levels shall be updated and revised annually to conform to levels set by the U. S. Department of Housing and Urban Development. Failure to meet the aforementioned minimum 51 percent threshold shall require SUB-RECIPIENT to reimburse the CITY for funds expended,in whole or in part,for project 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. 4 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: 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 HUD to conduct on-site reviews, examine personnel and employment records and to conduct any other procedures or practices to assure compliance with the provisions of this Agreement. SUB-RECIPIENT 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 5 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 this Agreement. J. SUB-RECIPIENT and CITY shall at all times observe and comply with Title 24 CFR Part 570 and all applicable laws, ordinances or regulations of the Federal, State, County, and local government, which may in any manner affect the performance of this Agreement. Without limiting the foregoing,the SUB-RECIPIENT shall comply with the regulations, policies, guidelines and requirements set forth in Exhibit B, attached hereto and incorporated herein by this reference. 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 6 A. Upon release of Grant Funds by HUD for the PROJECT, the CITY shall make disbursements to the SUB-RECIPIENT as either reimbursement for advances made by SUB-RECIPIENT or as advances for specific cash requirements of SUB-RECIPIENT for the PROJECT. All claims of SUB-RECIPIENT, whether for reimbursement or advancement,shall comply with the following requirements: 1. SUB-RECIPIENT shall submit a listing of all disbursements of CDBG funds, on a form provided by the CITY; 2. Any claim for advancement of CDBG funds shall be limited to an amount necessary for SUB-RECIPIENT to meet specific cash requirements for the PROJECT and shall be disbursed by SUB-RECIPIENT within three(3) working days of receipt by SUB-RECIPIENT; 3. Any request for reimbursement or advancement pertaining to work under contracts from the SUB-RECIPIENT shall include the following: a. For interim payments to contractors and subcontractors, certification that the work for which payment is requested has been performed and is in place and to the best of SUB-RECIPIENT'S knowledge,information and belief that, the quality of such work is in accordance with the contract and subcontracts, subject to: (i) any evaluation of such work as a functioning PROJECT upon substantial completion; (ii) the results of any subsequent tests permitted by the subcontract; and(iii) any defects or deficiencies not readily apparent upon inspection of the work; and b. For final payment, 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 7 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. 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 tenth 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 this 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. 8 C. In the event CITY elects to terminate this Agreement or to suspend payments, for any reason stated herein above 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 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. 9 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. 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. Actions Date 1. Prepare Bid Specification May 31,2011 2. Bids Solicited June 30,2011 3. Select Contractor August 1,2011 4. Construction Begins August 31,2011 5. Construction Completed March 31,2012 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 10 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 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 Sections V and 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•4122.1 �% Sean R. Ste all City Manag DATE: 43 C /�L r ATTEST: 474 IZAI r J nifer Quinton cting City Clerk SUB-RECIPIENT: Ecker Center for Mental Health,Inc. 1845 Grandstand Place,Elgin,Illinois 60123 BY: Karen Beyer LI Executive Director DATE: 5-2-0 ATTEST: 12 EXHIBIT A SUB-RECIPIENT'S CDBG APPLICATION 13 fDEIISfN O. • • - • (847)488-0303 Fax(847)488-0966 • Landscape Contracting&Management www.pedersencompany.corn l '�.. July 1,2010 • VIA FACSIMILE 847-622-1214 • Mr.Jack Shales @ R lJ T 1 425 Renner Drive JAN 2 6 2011 Elgin,IL 60123 Re:Ecker Business Center iBy Dear Jack: Following is our proposal for the above-referenced project.Pricing includes all materials,labor,equipment, and restoration;also removal of railroad ties and unsuitable materials for backfill • Remove one course of stone,which means a slightly steeper grade. • Geogrid behind wall to 6'depth not 12',due to existing conditions(not new construction). This should be more than adequate from information given from block manufacturer. • Use'Alan Block'in lieu of'Anchor Diamond Pro'. S30.600.00 After you have a chance to look this over,please give me a ra11 to discuss. 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U 1L -.1pl 'rR w n n ,„a t i .1 U 31 J1=11 II J J_L=1L J-11 11 Jl-.1 11 JL fro ll JI' �.ft--I69L'�1L .riai'� i.1 H. 9 it 11 Jt�t I- -.illi Jl L _ ll 11 ][ Q LIL = �II�IJ I tt="=ia-LII 71JiJ13 .Ut J1=lL�rtirt�Uilil i—lirll-IJ= II=1111 LU I IIIlIlU11rlUA=111=1p.1 ',�U-Il1ril-ll ll ll • - -[I-JI�JI is-U 1J=U U=11 JI•II=JI=111-11 J JL 11 JL Il I '+ it - =1- 7W I- II [ 11 I[ II tl it I• II I lh�l I!- 2-C PROJECT APPLICATION CITY OF ELGIN CDBG PROGRAM 2010-2011 PROGRAM YEAR Date of Submittal: 12/16/2009 Project Name: Retaining Wall Construction 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 (. Dec aw City: State: Zip Code: Elgin,IL 60123 1 2009 Telephone: 847-695-0484 Fax: 847-695-1265 E-mail: kbeyer(a,eckercenter.org Amount of CDBG Funding Request: $30,838* *This number is 66% of the total project cost. Sixty-six percent of Kane County residents whom we served live 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 who live outside the City of Elgin. PROJECT APPLICATION (continued) F 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 four percent of the organization's funding comes from the State of Illinois. A majority of the Center's services are provided at its 1845 Grandstand Place facility. The facility site slopes steeply toward Larkin Avenue on its southern parameter and clients try, often unsuccessfully, to scale the incline to avoid walking two blocks to reach the building on sidewalks. This is dangerous and would not be possible if the area had the retaining wall the ground requires to stop soil from sliding toward the street and causing concrete slabs in the parking lot from shifting and causing a tripping hazard. The Center lacks funds for this retaining wall project for the reasons that follow. The Center's client population 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 State of Illinois, which: supplies almost three fourths of the Center's funding, has paid the Center only 24% of what it owes the Center this fiscal year, so all of the Center's reserves are being used just to continue its operations. For these reasons the Center is • seeking assistance to build the retaining wall. This project will benefit low and moderate income individuals who live in the northern two thirds of Kane County. The incomes of Ecker Center's clients range from very low to moderate 2. PERFORMANCE MEASUREMENT: Project goals and objectives: The project steps will be completed in a timely and efficient manner with a final objective of a retaining wall 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 Construction begins Construction completed 3. NATIONAL OBJECTIVE: This project will benefit low and moderate income persons as defined by the FY 2009 Income levels for the Chicago Metropolitan Area. 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.89%,low 8%and moderate 3%. 4. ELIGIBLE ACTIVITY DESIGNATION: The project is eligible as a construction activity at a nonprofit-owned nonresidential building under Rehabilitation and Preservation Activities and as construction 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 2010-20011 fiscal year. During the last seven 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 2010 and beyond should the City require data in the following years. 7. PROJECT COST ESTIMATE: $46,225 Blocks, fabric,gravel,drain tile,top soil/sod, labor, equipment, dump charge,trucking 500 Bidding process costs-advertising,printing $46,725 Total Cost 8. OTHER PROJECT FUNDING SOURCES AND AMOUNTS: tf We are requesting 66%of the total cost or$30,838 from the City of Elgin. We are submitting a request for Kane County CDBG funds for the remaining 34%of the total project cost($15,887)because 34%of the Kane County residents we serve live outside of 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 4 months Construction begins 6 months Construction completed 7 months Total 7 months 10. PLANS AND SPECIFICATIONS: OTHER INFORMATION: See attached bid 11. OTHER INFORMATION N.A. 12. ORGANIZATIONAL STRUCTURE: See attached chart Nov. 4. 2009 4:26PM Pedersen Company 847-488-0966 No. 1839 P. 1/1 £DfTS€N CO (847) 488-0303 Fax(847) 488-0966 Landscape Contracting Management www.pedersencompany.corn 4,2 November009 VIA FACSIMILE 847-622-1224 Mr.Jack Shales Shales McNutt Construction 425 Renner Drive Elgin,IL 60123 Re:Fcker Business Center-`Anchor Diamond Pro'Retaining Wall Dear Jack: Following is our proposal for the above-referenced project.Pricing includes all materials,labor,equipment, and restoration;also removal of railroad ties and unsuitable materials for backftll. • Blocks • Fabric • Gravel • Draintile • Topsoil/Sod • Labor, equipment,dump charge and trucking Total Pricing ,$46.225.04 Thank you for the opportunity to submit this proposal.Please feel free to contact me should you have any questions. Sincerely, PEDERSEN COMPANY Paul Pedersen,President PFP/lh 6 N 543 Route 25• St.Charles, Illinois 60174 Pagc 1 of 1 Ecker Center for Mental Health Mission Statement To provide quality mental health services that are courteous,accessible, safe 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 actions 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. Your organization is required to file Form 990, Return of Organization Exempt from Income Tax, only if its 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 'ft 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 letter 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, • John E. Ricketts, Director, TE/GE Customer Account Services -FT,S SSA E�F o „g Y_, rtt Illinois Department of Revenue r; I N � e 21 Office of Local Government Services " � .s a1 Sales Tax Exemption Section, 3-520 ), �•••--- 71 101 W. Jefferson Street fi,,,,p'. = Springfield, Illinois 62702 J 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) IL-492-3456 11-0000119 File Number 3503-746-2 a„_, __ADEL,a- - �-- `.. vOl. 2-0 l/ rik- 3. -- ...NFL [E.� dria, =-.oy- O -�_ /// ,cam- = O _ I M .�� f / V \ v k j ¢ µ ,Ax., s „,. . a+ R► To all to whom these Presents Shall Come, Greeting: • I, Jesse White, Secretary of State of the State of Illinois, do hereby certify that I am the keeper of the records of the Department of . Business Services. I certify that (. ECKER CENTER FOR MENTAL HEALTH, INC., A DOMESTIC CORPORATION, INCORPORATED UNDER THE.LAWS OF THIS STATE ON FEBRUARY 23, 1955, APPEARS TO HAVE COMPLIED WITH ALL THE PROVISIONS OF THE GENERAL NOT FOR PROFIT CORPORATION ACT OF THIS STATE, AND AS OF THIS DATE, IS IN GOOD STANDING AS A DOMESTIC CORPORATION IN THE STATE OF ILLINOIS. / , _�n. Y,:., ..: in Testimony Whereof, I hereto set .. . T Iv „ ern my hand and cause to be affixed the Great Seal of --, „t ,j <, 1', the State of Illinois, this 23RD ` 1 G .11 . 1,0 7d, '�'�"� ,,ki, day of JANUARY A.D. 2009 +. �%{!e ‘4•1.kc,-,•c,:...,,,::. QM,ott.eW )A7)(..t,:&1 Authentication#:0902301531 • Verify at www.cyberdriveillinois.com SECRETARY OF STATE • To D. Filod in DuoScalo FORM NP•35 Date ✓ -53 Filing Feu Xriapy$25.00 ARTICLES OF AMENDMENT Filing Fee $ 2 JC 'G�' to Ih. 2 JJ ARTICLES OF INCORPORATION }}(J1 CJeClerkl f:)l under Lhe GENERAL NOT FOR PROFIT CORPORATION ACT JIM EDGAR, To 4I4k't4k..7tX X5tI C Secretary of State, Springfield, Illinois: The undersigned corporation,for the purpose of amending its Articles of Incorporation and pursu- ant to the provisions of Section 35 of the"General Not For Profit Corporation Act"of the State of Illinois, hereby executes the following Articles of Amendment: 1. The name of the corporation is: F_oa y&1 'ey i',-1t.,9 Final th Assnc itzon, T,no 2. There are___ o +*+embers, having voting rights with respect to amendments: (Inael% •'no' Or "Some") • (Strike paragraphs (a), (b), or (c) not applicable) • 3 A3rb a)?>3t t•EX). E)' sicizxtcosicctrat a;p; cYrkii-ekbeoc:xr..rxxxxxxxxxxxl,$cx.:ac zurzc s .R? s s sex r `C4hrtkrts xp rf a:n _xAr.; c �t ii:xx,3xac xcdct x k obti.i xx Vc cxx���k. eck • (c) At a meeting of directors (members having no voting rights with respect to amendments) held on February 22 , IS ©3 , same receiving the votes of a majority of the directors then • • in office, the following amendment or amendments were adopted in the manner prescribed by the "General Not For Profit,Corporation Act" of the State of Illinois: The name of.the corporation shall be changed from Fox Valley Mental Health Association, Inc. to Esker Center for TinntaJ. Health, Inc. • • =_r • • . 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(;ocur�lCflt Pro. Illinois Recorder's Filed for record in E;e cr's Office o�,���j at /o�0'cEock cz. II. �.!.�.d 4, _ e,T • Recorder of De i•: . • NOTICE TO COIRPOR.\TIO\S each year,n th after the fy :n of its i .%tV Ufrati,tte , "to fur profit" corporation is required itt execute ,ltrttar�• Vlmid e file; itt the.Olrice itf tltr tie•e•rt•t:u}• of jtatt: . Every} "not l ixt��•ccn the 15th day of January and t1 of {ailtu•t:�tct do so. an annual report,.and severe penalties Corpo rations are also required to file all amendments to their articles of incorporation before such amendments become effective. flee of the corporation is located withinois days tram the The rcrtiCtralc of incorporation and :ill asn office thereto must be rt:cordrd in ihr off15ice of the County Recorder of the County in x�'htclt the set;i5te rct issuance thereof. . . , . . . . Al<T1CLES OF INCORPORATION UNDER THE GENERAL NOT FOR PROFIT CORPORATION ACT .--. - (These Articles-Must Ile Filed in 1)uplicate) . To '."..11..r.1,..t. !•'. --,i...1 • . 1'1 i.. ,Serretary of State,Springfield, Illinois: ' t \\.e, the under:II:I-led, . _ ' • (Not less than three) • Address Name Number Street City State . _ . . . .3 0:.:c.ph F. F.:til.r., . _..1..i.1P1-4. 11 14.1•!k1 nni,..ti,o, .1 , 11:1.:i r. E.7....... r.:1 ..1.1! ::.:I ...iers,. .j.I.z. . .621...1.arkin...A. .:ntte . ......... E-1ln),....111 I r•!,1 a . . . . Ht:v. g. tilt:on rktionddu n 707 :Of:lattild t vatt1;0. ......::::l.J114..1.i.i l.;:.:.,1 .. . . . .... iOttert. "..1.. il.t.y..•::: • t306 Iiit...illhn.ci...A Vt:Itt:e 1.11.n, 1.1.1.1•1.)!r- . C.r•ri n ;. Thern11:;‘)/1 !.;'...;:, '.•'.• Cid crt);() r.i..;•.•itt; 1.AZ%n, II.I.it . .. ............ —. ..... ... ........ . . . . ...... ... ..... - . . . . . . . .. . ' being natio al tiersuns of the m...e of twenty-tine)eat!..or mote and citizens of du:united si..vs.fur the inti-,, •v: - 1.. tuts,:or forntion:a curt tooter the"General Nut For VI edit Corporation Act"of the State of Illinois, . : do In:10T atigipt the following At ticks'IA Incorp.ration:'.:. ': . . . . I. The name of the corporation is:_l-'9;.. V r::1.1..ci.y...t),!..t.W.74. 1;eaat...it....!;ty.itkly.._.:. .... _ . . . 2. Tlie period of duration of the corporation is:......., .........X.,:::-2.1.Yi.•:11 .. ...... .. • ". • - , ' . . • • 3. The addies.s of its licit;11 iti.gisteretl °Ike in the State of Illinois is:___:...,!)31.211,:„...!%11:1.11.r...„:.: '.. ' • • y..........01..........E1-gin_I.._ -... Count)* of . . _—_....,. . . .. Street.in the ......CI t, '.'. . ...-_-...1..ctr.e. . and the name of its initial Registered Agent at said address is; . .• ' . ••-•„:., . .. Itt*:.:. :.1.:hut:t.c:1!- E.:...1.1.svir..... • .;.-... •••• •--..'-. •-•,.....-----,.. !....-.7-.:•-. • .. • . , . .. . . . • • 4. .Tlie first llo(rki of I)irectoss liall he,.___:..1.5..._._...........„:7in number,their names rind address being . : . . - , (Nut It:sit titan thriA. • , • as follows: . .. . • 1 " , . . - . . . ; . . • . . . . . . • - • Address . • N..nne Ntont.er Street . ' "Citv State . : - .7t)::c:plt I . F.:;t es " 7 1::61cieri !..tne .Dundee I11'I•to Lit - ..._... . ... . . .... , . .. . . • • i'.1's. Vnn.l.i o:qr./It * 2116 !!. 1.-:91'tit tsyvnue Elgin, I 11 I no . """***" •- . :ii:rolc. T. F.011:-,1 e 5(.) id ver llit:fr ilena Eiri n, Ili inott; . . Dr. i;o:-..t.rt. t::. L.,11:!yevi 006 iiir.illtinu ftvenne . El sin, Ill !. • ;* . . . . .. .•.:•:.... Ci r•-.::ter li. ..;:t•il:: hinvc 1.111.1,3i:1 _._. . . . . ... .. . . ... . ... ... . .. - . . • . Orrin r.',. Tilt.n•Ipt...cm 5,58 r. Ci ( ) ntrcet Elgin, I Illn;:sli; • . :11•:•.. Joti::: terry . Irrini-,t.on.3.1 Li tt::•.1 • ! Juri:tc c.:.11'i !J. !;-ittpc-n iCO :'.. r.tiictnip 1:kreet.. El'On, illit:01:: , . itov. ':!. IN enn ...f:i•'otle!rw. 767 Hi r.itIntIL.: :,vonitc: Eir_in, 3.I linear.. :Tulin El. .1,.:1 rt:t II 563 Lim C.rcv.: Elc.i n, 1 1 I 1.-loin . . I . I — . it-:;. P.nyr:or.ti Pc::r:.-.t.l.t 621 irciol-: .!*,tree L. Elr,ln, illinol n ,. Dv. Dlnit:J. h91rron 150 . .. .:Ln tit ntre;:t. EttLin, E ill : • I •,.. " . i1•:-. t.f,ri : . : 11..t..::•:•, .!:•. 621 1,:irk In :,venue. 1::1:-,in, I 1 1 i no In 1 f.1.1.111:i• C. 1..-.....1.:1•,1 9110 1:ouglan ivenut: Elgin, 111 ir.o1:-, 1 - :• :,II-21•: m.t :;t.:.t..,-1 Blink . • St. Citurier, IL 1 ;co‘s • . . . - - • . : .-.. . ..__ • 11' , . • 3. The purpose or purposes for which the corporation is organized are: To engage exclusively in scientific, literary and cduccttiti:.r:l promotion an ,activities leading to the p d conservation of the mental health of tale people of tie Fox Valley, Illinois, area; tits study end furnishing of facilities� Clf disorders, he pre- vention , :. including r eI:totio:nl and and care of nervous, of race, creed OP color; :� •dl.e:sa - . rem, x ��� ewt :::a And to receive, use, ::old c.nci apply funds, Eif ts, ` • and • a cal i'caf, to ;Ave_ effect to endowments s or the proceeds carry out t.,,e ►•urposes herein stated. • " herein cciztained snail be construedof oaauulyrizc b. "nothing perform Pny of the funs . „ i;:la cc;3•;)c;2'�Li.on o•C r:-ate r� the corporationecto nor s,iall licen,-- �J. medical doctor, t ne case of people vs United i e'Ai.cal clinic as defined in Service, 362 III . i;);2. " • • •, Stattc;to be cositained in ihe•-ArticlCs of �. (Note: Any special provision authorized or permitted by u Incorporation, may be inserted.above.) (Si i;'ed ) soseoh P. 'Estes. n i•.1,J • lJ J: 1llw..� •3•. ';it'hers, Jr. 1,c1;adden Incorporators. n Orr in G. Thonpson - . ' • . . • . • • 1 • • . • • . . . . . . . . . . • /.., - ' ' - f. . . . 7:::"..-.i% • • • . .- • . " . . . . . • ...;) . . nothin:,. horoin contained ohall be construed to authorizo . the cororation to prform any of the functions of a duly ' 1:; collo od medical ei GC tar p 210/' 011:131 ti1C. COZTO.'41'Clan oporatp a clinic os dofinod In the ccoo of .?ooplo vc United godiOal -- • S..)rvices •.32 X110 442," . . • • . . • . - - • . • . • • • . • . • • . . • • •. . • • . .. • • • • . . • . • • . . . . .. • • . • . - • • . • . • . - • . . . •• . • . . • • • . . . • . . • , •• .• .- - . . • • . - • • . . . . . . . . . . . • • • • • • • .. .. . . . . . • -- - • - • - . • . • - • . . . . . . • . . - . . -- •• • • -- . . • - - - . • . . . . .. . . . .- . . . . . • - . • . . . . . . - . . . . • - . . . . . (NOTE:.Any special provision authorized or permitted by Statute to bc contained in the Articles of Incoi-Poration;may :( _ .. . •,- • ...In inserted abovc.) .... . • . . - . • • • . • .....,....• - . . • (INCORPORATORS hi ST SIGN. "13.E.L9> ) c - - • .. . , .. , . . el. • . - . . . V . . . . . •• 24 . . • . . . . / /gi • . ., • . 911`-'- • . Incorporators - . ...e...4-7 i.-". ----126"-yr,—• . , 1 . . t i e. .b....4. • • • • . • • • - . . , • . . ,..... . I• • • • ' . . . ' t • . I • , Certificate Number • 3745 - STATE OF I L L I N n I S OFFICE OF THE SECRETARY OF STATE • • - II„,l ii 11,i I,11„11„1,U 1t Il 1i ll it li;t II U 1f • - . - " State- Seal Vignette " -It II 11 It II tt 11 II II II II 11 11 It 11 It II II II II U 11 11 TO ALL TO WHOM THESE: PRESENTS SHALL COME, GREETING: • WHEREAS, Articles of Izicorporation duly signed and verified of - FOX _VALLEY MENTAL HEALTH SOCIETY • • have been filed. in' the Office of theiSecretaryy eof State' n the e~ 23rd. .. R i" day of February A• D. 1955 ° p ioved ..July. 17.., 19 :i, izi -force �'� 'PROFIT CORPORA'1'ION :ACT" . of Illinois; aPP -January 1, A. D. 1944; • 110W, THEREFORE, I , Charles F. Carpentier, Secretary of - State of the State of--Illinois , 'ty virtue of - the powers ,vested :in me by law, do hereby issue this Certificate oofftIncoon rporation norndaiattach h ' of the Articles of Inco�.p• . thereto a copy d corporation. IN TESTIMONY V HERECF, I -hereto set my hand and c<ut=C to bt: affixed the Great Seal of the State of Illinois. Done at the City of Springfield this 23rd day of February A. D. 1955 , and of the Indet:endence of the United States the one hundred and 79th. . CHARL`ES I'. CAHI'ENTIE.R _ SECRETARY RY Or ST.1TE tt t, ,I ,, I, I, t, 11 I, 11 11 II I,II 11 II 11 11 II II 11 11 II II II 11 II II II II It It 11 . " SEAL OF THE STATE OF ILLINOIS I, - (SEAL) I1 tI August 26th, 1818 „ I, I, II I, I, I, II II It II II II II II II II II II It II It It II It It II 11 II II II II II • / - • • ACKNOWLEDGMENT STATE OF ILLINOIS, }SS. County of .. >f?1 ::. :-!ITI: H i 4, -,Tit. , a Notary Public. lllt h : day of. :e'prI,tt:t'`r`................. .... do:hereby certify that on the.,, ....�...:�..._...._. _.. .. Rev. W. i;1Ct:11'- .•'.t::�t-.'•.air:` , . Joseph h I, - t s. .Di B. :?.ittt,.r;�, Jr. ,- ..._ _...._...._..............f. i.e:• .....thi Liz` A . r_ i t�cU ..1? `-o ;, ..Orrin...;: Vc -ip soI:......... ..vit.e'u�r. ... personally appeared before ine and being first duly sworn by me severally acknowledged that they signed - the foregoing document in the respective capacities therein set forth and declared that the statements . therein contained are true. . IN.wrrNESS WIIERF.0F, I have hereunto set my hand and seal the day andycar above written..- • . • • -,..) '•o•11.. " .1. _` .4,.. .r, <.,:::.::: Notary Pu ic. . • • Notarial Seal . —-r ...--.--.- • :•ly ,`,j., :insien Expit'Is• (;^sober s'.'', 1955 . • • Document No. 773954 Filed Mar. 3, 1955 Filed for record in Recorder's Office of Kane County, Illinois at. 10:45 o'clock A.M. - • (Signed) Grade E.Recorder of Deeds - Book 1730, Page 469 - ( 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 2 ECKER CENTER FOX MENTAL HEALTH BOARD OF DIRECTORS October 2009—October 2010 NAME/EMPLOYER/POSITION ADDRESS PHONE NUMBERS/ MEMBER TERM E-MAIL ADDRESS SINCE EXPIRATION Conroy, David,Chairman 401 N. Kirk Road 630-262-8300 x7602(W) 12/2006 12/2009— 1" Sales Manager Geneva, IL 60134-1667 Gordon Flesch Co. dconroy@gflesch.com Sellers,Aaron, Vice Chairman 1137 Forest Drive 847-903-1054(W) 10/2006 10/2009— 1st CEO Elgin,IL 60123 • Training Solutions, Inc. asellersQwideopenwest.com Young,Tom,Treasurer 112 William Dr. 847-888-9800(W) 2/2004 2/2010- 2"d Crisanti and Young P.C. Elgin,IL 60123 847-695-3252(H) Attorney 847-888-9899(F) tort24@hotmail.com Tiballi,Dr. Robert, Secretary P.O. Box 5934 847-781-1790—W 11/2004 11/2010—2id (Anna D'Alessio,Personal Asst.) Elgin,IL 60121-5934 847-781-9973—F Gerinbuste.rs, P.C. • President& CEO - BTiballi@germbusters.com Acevedo, Marilena 739 N. State St. 847-608-7151(W) 12/2009 12/2012— 1st PetroLiance LLC Elgin, IL 60123 847-878-7140(C) Director,Human Resources macevedo@,petrolian.zce.com marilena926na,comcast.net Kirk, Alan 619 N. Harrison St. 847-854-5063(H)- 8/2004 8/2010—2nd Algonquin,IL 60102 • akirkna,resultsmc.com Pate, Greg 185 Alleghany Rd. 847-602-2096(C) 12/2008 12/2011 _1st Grayslake,IL 60030 bankerbob56@yahoo.com Reynolds, Joann 4345 Barharbor Drive 847-741-9600 x205(W) 8/2004 8/2010—2"d Schleifring Medical Systems LLC Lake in the Hills, IL 60156 847-741-0022(F) General Manager 847-669-3509(H) jreynolds. schleifringznedical.com Stewart,Tanya 1335 Todd Farm Dr.,#101 847-741-3536—H 2/2006 2/2009— 1st Elgin,IL 60123 stewarttanya19Ca�yahoo.com RESOLUTION AUTHORIZING APPLICATION FOR CITY OF ELGIN AND KANE COUNTY 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 and Kane County Community Development Funds for a retaining wall; and WHEREAS,said project will increase client safety; and WHEREAS,the Elgin City Council and the Kane County Board must approve said application and will require Ecker Center for Mental Health to execute Funding Agreements 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 and Kane County Community Development Funds,Funding Agreements and other necessary documents upon approval of the application by the City of Elgin and the Kane County Board, and any requests for payment and documentation required to be submitted by Ecker Center for Mental Health to City of Elgin and Kane County 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: A I EST: Ta. Cl. o s ca n c' .7. Psychiatric Residents ' y O— r, F. aS'3 Psychiatric 5 R,g Consultants e w w ., . Nurses,Nursing.Support 0 0 X Specialist, t7 p -ice Admin.Support Specialists R s ' ° a z c, Pm Nurses,MHPs&MITs o H Supervisor,C Crisis Residential Crisis Residential Program, _ d 1 P K 8 PAS Screencrs,Resident ('),'—° Reviewers,Targeted Case PAS Coordinator Managers X� y t.° _7 0 Coordinator,CILA&Supervised ,Pa Residential y a R. a 6 R. I3 7 a . rym._a ,.. 6 Y y �53 a it w 1-1 PSR Group Facilitators& Peer Sponsors Supervisor,PSR A A Intensive Case Management _ O g Case Coordinator t=1 a n O y Extended Case Management ,.._ g y N Cole Coordinator P. ° C p H Ni C O 0u � a yy z4 c + 77 >2 Int�ceCoordinator '. FS C(I N —3 &Linkage Case Managers '—' m a .-3 0 s R -3 Transitional , 7 Case Management Case _ R. ty co Coordinator Supervisor,Case Management _ �- ne g P. Data Entry Operator En R 3 < .`r Medical Records Supervisor Data,Billing&Records Manager '^ A 7a 'R v�o '" Billing Office Assistant PEP Emergency Therapists, Supervisor,PEP&Therapy Mobile Transition Therapists& Services Therapy Services Therapists Senior Accountant Accounting Manager Business Office Assistant N n Courier so 6 • Human Resource Manager TIM BATES 3673 SONOMA CIRCLE LAKE IN THE HILLS, IL 60156 847-515-2230 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. • Created program to predict profit by individual item,achieving higher profit margins. • Redesigned financial system from"pooled"to individual accounts,allowing better and complete financial information to end-user. • Wrote budget system in dBASE consisting of about 8000 lines of code. EXPERIENCE ECKER CENTER FOR MENTAL HEALTH Elgin, IL ACCOUNTING MANAGER 2007-Present Not-for-profit charitable organization offering various psychiatric services for adults. • Prepare annual fiscal budget. • Oversee production of financial reports,analyze financial trends, and recommend appropriate action. • Act as staff liaison to the Finance Committee of the Board of Directors and attend Board meetings as requested. • Manager audits. • Oversee agency's environmental condition and acquisition and maintenance of property and equipment_ • Oversee purchasing, office operations and risk management, including insurance policies. { 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 of 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 finked 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. Tim Bates timbates@foxvalley.net 2007 . 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 'J 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@foxvailey.net 2007 12/9/2009 10:32:04AM Ecker Center for Mental Health Page 1 Statement of Financial Position as of November 30, 2009 • Current Year Prior Year Variance Assets Current Assets 608,635.26 809,048.23 (200,412.97) Long Term Investments 133,148.55 140,056.03 (6,907.48) Receivables 125,668.04 344,987.88 (219,319.84) Other Current Assets 11,730.35 11.470.57 259.78 Fixed Assets 1,830,074.01 1,794,777.14 35,296.87 Total Assets 2,709,256.21 3,100,339.85 (391.083.64) Liabilities and Net Assets Liabilities Current Liabilities 286,820.66 420,622.41 I33,801.75 Long-term Liabilities 1,070,533.49 1,134,878.33 64,344.84 Total Liabilities 1,357,354.15 1,555,500.74 198,146.59 Net Assets Unrestricted Net Assets 1,351,902.06 1,544,839.11 (192,937.05) Total Net Assets 1,351,902.06 1,544,839.11 (192,937.05) Total Liabilities and Net Assets 2,709 256.21 3,100,339.85 391,083.64 1219/2009 10:36:29AM Ecker Center for Mental Health Page 1 Statement of Activity For the Month ended November 30, 2009 Month Month Year to Date Year to Date Year to Date Percent Actual Budget Actual Budget Variance Variance Revenues Public Support 153 8,750 34,317 44,065 (9,748) (22.12)% Fees&Grants-Governmental 61,479 381,649 697,622 1,857,245 (1,159,623) (62.44)% Fundraising 20,510 5,000 64,730 61,865 2,865 4.6 3% Program Service Fees 47,340 34,499 200,493 192,495 7,998 4.16% Other Revenue 2,907 6,427 31,674 32,135 (461) (1.44)% Total Revenues 132,389 436,325 I.028,83'6 2,187,805 (1,158,969) (52 97)% .Expenses Personnel and Benefits 231,362 231,225 1,216,711 1,240,164 23,453 1.89% Program Expenses 33,838 51,530 110,582 280,415 169,833 60.57% Specific Assistance to Clients 8,832 13,868 32,595 69,340 36,745 52.99% Occupancy 47.930 77,709 255,117 396,781 141,664 35.70% Development&PR 7,015 200 41,477 53,593 12,116 22.61% Management&General 825 3,785 24,363 40,259 15,896 39.48% Other Expenses 12,763 21,115 7I,225 105,975 34,750 32.79% Depreciation 0 9,977 36,145 49,885 I3,740 27.54% Total Expenses 342,565 409,409 1,788,216 2,236,4I2 448,196 20.04% ( NET SURPLUS/(DEFICIT) (210,177) "26,916 (759,380) (48,607) (710,773) (1,462.28)% • • ECKER CENTER FOR MENTAL HEALTH,INC. AND SUBSIDIARY CONSOLIDATING FINANCIAL STATEMENTS AS OF JUNE 30, 2009 TOGETHER WITH AUDITOR'S REPORT Du an Lo atka Certified Public Accountant.;8:Consultants A Professional Corporation 104 East Roosevelt Road Wheaton,Illinois 60187 (630)665 1110 Fax(630)665-5030 www.duganlopatka.corn Michael J.Dugan e-mail:info@duganlopatka.com T.Brett Flickinger Jerry L.Lopatka Karen M.Olson Mark F.Schultz Hugh E.Elliott Peter J.Zich Leo M.Misdom Gwen S.Henry • INDEPENDENT AUDITOR'S REPORT Board of Directors of Ecker Center for Mental Health, Inc.: We have audited the accompanying consolidating statement of financial position of Ecker Center for Mental Health, Inc. (the Center) and Subsidiary as of June 30, 2009, and the related consolidating statements of activities, cash flows and functional expenses for the year then ended. These consolidating financial statements are the responsibility of the Center's management. Our responsibility is to express an opinion on these consolidating 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 consolidating financial statements referred to above present fairly, in all material respects, the individual and consolidated financial position of Ecker Center for Mental Health, Inc. and Subsidiary as of June 30, 2009, 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 23, 2009 • • AFFILIATE IN PACT INIERNATIONAL NETWORK OF PROPESSIONAI ACCOUNTANTS ECKER CENTER FOR MENTAL HEALTH. INC.AND SUBSIDIARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION WITH CONSOLIDATING INFORMATION NNE 30. 2009 ASSETS Ecker Center Fox Valley for Mental Mental Health Consolidated Health, Inc. Foundation Eliminations Total CURRENT ASSETS: Cash and cash equivalents-unrestricted $ 175,908 $ 69,930 $ - $ 245,838 -restricted 10,468 42,790 - 53,258 Investments 118,606 - - 118,606 Program service fees receivable 1,050,357 - • - 1,050,357 Grants receivable 163,110 - 163,110 Pledges receivable-net of allowance - 14,437 - 14,437 Due from related party 97,673 - (97,673) - Deposits 11,110 - (4.,795) 6,315 , Prepaid expenses 17,722 - - 17,722 Total current assets 1,644,954 127,157 (102,468) 1,669,643 PROPERTY AND EQUIPMENT: Land 381,832 77,829 459,661 Building 1,548,082 294,171 - 1,842,253 Building improvements 651,969 - - 651,969 Furniture and equipment 259,054 - - 259,054 Vehicles 47,030 - - 47,030 Leasehold improvements 55,357 - - 55,357 Software 12,977 - - 12,977 2,956,301 372,000 - 3,328,301 Less- Accumulated depreciation 1,098,163 44,014 - 1,142,177 Net property and equipment 1,858,138 327,986 - 2,186,124 OTHER ASSETS: Pledges receivable, net of current maturities - 30,709 - 30,709 $ 3,503,092 $ 485,852 $ (102,468) $ 3,886,476 The accompanying notes are an integral part of this statement. • EXHIBIT I LIABILITIES AND NET ASSETS Ecker Center Fox Valley for Mental Mental Health Consolidated Health, Inc. Foundation Eliminations Total CURRENT LIABILITIES: Accounts payable $ 81,629 $ 1,466 $ - $ 83,095 Accrued wages and payroll taxes 92,688 - - 92,688 Accrued vacation pay 115,819 - - 115,819 Due to related party - 97,673 (97,673) - Rentdeposit 5,220 4,795 (4,795) 5,220 Capital lease 18,418 - - 18,418 Notes payabre, current 43,707 10,172 - 53,879 Total current liabilities 357,481 114,106 (102,468) 369,119 LONG-TERM LIABILITIES: Notes payable, net of current portion 1,034,457 242,140 - 1,276,597 Total liabilities 1,391,938 356,246 (102,468) 1,645,716 COMMITMENTS NET ASSETS: Unrestricted 1,937,576 41,670 - 1,979,246 Temporarily restricted 173,578 87,936 - 261,514 Total net assets 2,111,154 129,606 - 2,240,760 $ 3,503,092 $ 485,852 S (102,468) $ 3,886,476 • • EXHifii,f 2 Page 1 of") ECXJ?R CF.NTFR FOR MENTAL HEALTH.INC.AND SUBSIDIARY CONSOLIDATED STATEMENT OF ACTIVITIES WITH CONSOLIDATINQINFORMATION FOR THE YEARENDED JUNE 30.2009 • Ecker Center for Mental Health,Inc. Fox Valley Mental Health Foundation Consolidated 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 $ 12,400 $ 98,610 $ 111,010 $ - $ - $ - $ - $ 12,400 $ 98,610 $ 111,010 Other revenue 20,476 24,600 45,076 20,476 24,600 45,076 Fundraising 92,377 92,377 - - - - 92,377 - 92,371 In-kind 1,336 256,394 257,730 - - - - 1,336 256,394 257,730 Fees and grants from governmental agencies- - - Department of Human Services- Fees for service 2,336,720 2,336,720 2,336,720 2,336,720 Grant-in-aid 1,597,606 - 1,597,606 - - - - 1,597,606 - 1,597,606 Title XX 18,217 - 18,217 - - - - 18.217 - 18,217 Township 708 funds 95,413 61,000 156,413 - - - - 95,413 61,000 156,413 Department of Housing and Urban Development 305,307 - 305,307 - - - -_ 305,307 - 305,307 Other governmental grants 51,000 - 51,000 - - - - 51,000 - 51,000 Other revenues- Program service fees 458,781 - 458,781 - - - - 458,781 - 458,781 Rent income 48,094 - 48,094 56,700 - 56,700 (56,700) 48,094 - 48,094 Interest income 17,387 - 17,387 1,326 - 1,326 (4,884) 13,829 - 13,829 Dividend income 2,603 - 2,603 - - - - 2,603 • - 2,603 Unrealized loss on investtnents • (31,058) - (31,058) - - - - (31,058) (31,058) Other revenues. 14,232 - 14,232 - - - - 14,232 - 14,232 Net assets released from restrictions - 476,593 (476,593) - 26.767 (26,767) - - 503,360 (503,360) - Total revenues,gains,and other support 5,517,484 (35,989) 5,481,495 84,793 (26,767) 58,026 (61,584) 5,540,693 (62,756) 5,477,937 EXPENSES: Program services- Outpatient 778,814 - 778,814 - - - - 778,814 - 778,814 Psycho-social rehabilitation 251,588 - 251,588 - - - - 251,588 - 251,588 Psychiatric emergency program 402,970 - 402,970 - - - - 402,970 - 402,970 Preadmission screening 58,199 - 58,199 - - - - 58,199 - 58,199 Housing and urban development 229,824 - 229,824 38,130 - 38,130 (61,584) 206,370 - 206,370 HUD leasing 186,466 - 186,466 - - - - 186,466 - 186,466 Supervised residential 276,058 - 276,058 - - - - 276,058 - 276,058 Client transition subsidy 70,800 • 70,800 - - - - 70,800 - 70,800 Psychiatric services 459,828 - 459,828 - - - - 459,828 - 459,828 Case coordination 551,785 - 551,785 - - - - 551,785 • - 551,785 The accompanying notes are an integral part of this statement. • EXHIBIT 2 Page 2 of 7 ECKER CF,NTFR FOR MENTAL HEALTH.INC.AND SUBSIDIARY CONSOLIDATED STATEMENT OF ACTIVITIES WITH CONSOLIDATING INFORMATION FOR THE.YEAR ENDED TUNE 30.2009 Ecker Center For Mental Health,Inc. Fox Valley Mental Health Foundation Consolidated Total _ Temporarily Temporarily Temporarily Unrestricted restricted Total Unrestricted restricted Total Eliminations Unrestricted restricted Total EXPENSES: (Continued) Program services-(Continued) Community integrated living arrangement residential $ 297,348 $ - $ 297,348 $ - S - $ - $ - $ 297,348 $ - $ 297,348 Supported residential scattered sites 118,077 - 118,077 - - - - 118,077 118,077 Supported residential 226,279 - 226,279 - - - - 226,279 - 226,279 - - Crisis Residential 482,541 - 482,541 482,54E - 482,54E Community counseling- Tri-Village 64,760 - 64,760 - - - - 64,760 - 64,760 St.Charles 85,517 85,517 - - 85,517 - 85,517 Total program services 4,540,854 - 4,540,854 38,130 - 38,130 (61,584) 4,517,400 - 4,517,400 Supporting services- Management and general 708,106 - 708,106 37,125 37,125 745,23E 745,231 Fundraising 112,180 - 112,180 112,180 112,180 Total supporting services 820,286 - 820,286 37,125 37,125 - 857,411 - 857,411 Total expenses 5,361,140 - 5,361,140 75,255 - 75,255 (61,584) 5,374,811 - 5,374,811 CHANGE IN NET ASSETS 156,344 (35,989) 120,355 9,538 (26,767) (17,229) - 165,882 (62,756) 103,126 • NET ASSETS,Beginning of year 1,781,232 209,567 1,990,799 32,132 114,703 146,835 - 1,813,364 324,270 2,137,634 NET ASSETS,End of year $1,937,576 $ 173,578 $2.111,154 $ 41,670 $ 67,936 $ 129,606 $ - $1,979,246 $ 261,514 $2,240,760 • • The accompanying notes are an integral part of this statement. • EXHIBIT 3 ECKER CENTER FOR MENTAL HEALTH_INC. AND SUBSIDIARY CONSOLIDATED STATEMENT OF CASH FLOWS WITH CONSOLIDATING INFORMATION FOR THE YEAR ENDED JUNE 30, 2009 Ecker Center Fox Valley for Mental Mental Health Consolidated Health, Inc. Foundation Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ 120,355 $ (17,229) $ - $ 103,126 Adjustments to reconcile change in total net assets to net cash provided by(used in)operating activities: Depreciation 101,494 9,805 - 111,299 Unrealized loss on investments 31,058 - 31,058 Bad debt expense - 26,767 - 26,767 • (Increase)decrease in assets: Program service fees receivable (1,017,493) - - (1,017,493) Grants receivable 11,390 - - 11,390 Prepaid expenses and deposits (2,247) - - (2,247) Increase(decrease)in liabilities: - Accounts•payable 23,511 746 - 24,257 Accrued expenses (128,400) - - (128,400) Total adjustments (980,687) 37,318 - (943,369) Net cash provided by(used in)operating activities (860,332) 20,089 - (840,243) CASH FLOWS FROM INVESTING ACTI'VI'I'IES: Purchase of property and equipment (129,117) - - (129,117) Purchase of investments (2,685) - (2,685) Net cash(used in)investing activities (131,802) - - (131,802) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments of long-term debt (46,210) (10,183) - (56,393) Payments on capital lease (17,377) - - (17,377) Capital campaign collections - 13,769 - 13,769 Net cash provided by(used in)financing activities (63,587) 3,586 - (60,001) NET CHANGE IN CASH AND CASH EQUIVALENTS (1,055,721) 23,675 - (1,032,046) CASH AND CASH EQUIVALENTS, Beginning of year 1,242,097 89,045 - 1,331,142 CASH AND CASH EQUIVALENTS, End of year $ 186,376 $ 112,720 $ - $ . 299,096 SUPPLEMENTAL DISCLOSURES: tntrrest paid $ 68,036 $ 20,482 $ (4,884) $ 83,634 The accompanying notes are an integral part of this statement. EXHIBIT-4 FCX FR CFNTFR FOR MFNTAI HPAI 114.INC' Ear 1 of 7 AND 177X VALLEY MENTAL I1EAL774 FCIL'NDATjD7 jY}NSCIr IfiATFD STATEMENT OF F11NC IJOJJAL EXPENSES Waif CONSOI MATING INFORMATION EO THE YEAR ENOFD TUNE 30.2039 Esker Center Inn Mental Health,Inc. Program Services . Community • • In Psychiatric Housing and Living Lg Supported Psycho-social emergency Preadmission Urban Supervised Client Transition Psychiatrist Case Arrangement Residential Outpatient Rehabilitation programs screening Development HUD Leasing Reddenlial Subsidy Services Coordination Residential Scattered Sites PERS(75INTsL: Salaries 5 397,461 $ 170,171 S 303,198 S 45,131 5 111,575 1 37.046 S 189,033 S • 5 162,890 $ 395,571 S 184.294 S 29,535 Payroll taxes 22,897 11,523 21,893 3,274 7,908 2,448 13.437 - 10.803 28,586 13,293 2,251 Employees benefits 64,905 25.305 46,571 6,811 17,153 3,639 28,648 •- 2,008 61,642 28,500 4,389 Total personnel 415,263 207,100 371,662 55,216 136,638 45,133 231,118 - 175,701 485,799 226,087 36,173 COMMODITIES: Office supplies 5,727 3,449 2,440 - 621 6 .1,709 - 221 18,612 1,327 420 Printing and publications 446 - - - - - - - 72. 149 - Program supplies 245,873 1,374. 1,184 - 2,813 3,868 1,015 - 134 4,050 - Pond and beverages - 3,100 - - 8,992 1,649 6,323 - - - i1,639 - lolatcormmeditlas 252.046 8,123 3,624 - 12,426 5,523 9,047 - 427 18,761 17,016 420 CONTRACTUAL SERVICES: Advertising 22 141 93 - - - 363 - - 44 373 - Consulmilon 1,959 2,5e6 1,769 192 944 1S8 1.271 - 264,050 7,758 1,254 587 Rental of equipment and building 330 (9131 - - 94 - ' (48) - - 339 (133) - - Rental of building - - - - 56,700 130,650 - _ _ - - - Specific assigner*:-indl,idualt 38 34 451 - 127 335 668 70,800 - 6,939 10,219 77,254 Insurance 4.590 4,374 4,370 421 4;396 421 2,613 - 1,415 2,755 4,023 421 Utilities 7,848 7,489 669 659 10,102 869 3,746 - 2,396 4.793 6,376 639 Repairs and maintenance 7,936 7,168 530 440 3,796 696 6,366 - 1,600 4,370 18,789 . 440 Professional services - - _ - _ - - - - Tctephone 6.210 3,204 13,555 673 1,704 395 2,801 - 186 5,937 3,608 424 Postage - 20 - - _ - - - Dues and nrctnEverships - - - - - - - - _ - Real estate taxes - _ - - •- _ _ • . Outside services - 98 - - - - - - 11,JB4 98 - - Total contractual services 12,948 24,181 21,427 2,383 77,863 133,434 20,05D 70,800 281,071 33,233 44,09_ 79,785 OTI IER EXPENSES: Interest 3,995 3.812 333 335 - 335 7,974 - 1.220 2,440 - 335 Bad debt expense - _ - - - - Travel 4 141 3.742 24 1,469 1.832 - 143 - - 3,632 584 683 • • Training and education 459 468 B10 30 455 - 207 - - 915 797 Special events - _ - - - _ - - - Miscellaneous 312 1.352 181 • - _ 99 - - - 114 460 ,231 223 Taal other expenses 4,770 5,773 5.068 389 2,923 2,167 8.374 - 1,404 4,447 1,612 1,241 Total expenses before depreciation 773,029 245.177 401.781 57,990 228,950 186,257 268,589 70.800 458,403 547,240 289,224 117,621 DEPRECIATION 3,785 - 6,411 1,189 209 874 209 7,469 - 1,225 4,543 8.124 456 TOTAL EXPENSES S 778,814 $ 251.588 S 402,970 S 58,199 5' 229.824 S 186.466 $ 276,058 $ 70,400 S 459,128 S 551.783 $ 297.348 5 118.077 The accompanying notes are an integral part of this statement. • FXHIRIT 4 • FCIFFR CENTER FOR MENTAL 11FA1 TH INC - Page 2 of 2 AND FOX VA1 LEY•MFNTAL.UEI LTH FOUNDATION r.ONSf9 Ir1ATFll 9TATEMFNT OFJIIN(TI(N I,L RXPPNSFS WITH f3:lN501-IIIATINN,INFORMATION FOR THE YI9AR ENDED 11RNE 30 2009 • Esker Center for Mental Health.Inn.-continued Fox Valley Mental Health Foundation • • Total Consolidated Program Program and Program services-continued Swooning Services . Services _ SJpportlrsg Services Supposing Services • Community Courod Services• • Housing and Supported Crisis Management and Urban Management and Total Combined Residential Residential Tri-V10sge St.Charles Total General Fundraising Development General Fmrdralsing Eliminations Expenses PERSONNEL - Solution 5 91,491 S 347,026 S 39,502 S 54,242 S 2,539,269 S 293,902 S 31.912 S - 5 $ - S - $ 2,905,083 Payroll taxes 6,598 25,320 2.917 4,722 177,870 21.574 3,468 - - - 202,912 Employs benefits • 14.439 52,712 6.183 9,081 373,986 58,648 8,955 - - - - 441.591 Taal personnel 113.528 425,038 48,602 68,045 3,111,127 374.124 64,335 • - - - 3,549,586 COMMODITIES: Office supplies 514 2,231 968 595 38,840 42,242 672 - 221 - - 111,975 Printing and publications - - 37 - 704 .720 - - - 1,424 Program supplies 2.554 609 321 321 264,316 . - - - - 264,316 . Food and beverages 6.955 5.345 - 44,003 - - - • • - 44,003 Total can:teditles 10,023 8,165 1,326 916 347.863 42,962 672 - 221 - 391.718 C01ITRACTUAL SERVICES: Advertising - 86. 49 - 1,171 2,821 807 - - - - 4.799 Consultation 839 2,412 625 702 291.141 3,095 238 - - - - 294,474 Rental of equipment and building 12 - - - (119) 2,094 - - - - 1,973 Rental of building 73.344 - 2,400 9,819 272,913 - • - (3G.700) 216,213 Specific assistance-irtl»4duals 665 938 - - 168,468 - - - - - - 168,466 Insurance 2,831 2,755 2,534 2,608 40,597 9,501 - - - - - 50.098 Utilities 19,780 4,793 - 218 72.387 • 67,773 - - • - 140,160 Repairs and maintenance 907 19,861 - 920 • 73,949 50,131 - 17.648 - - - 141,726 Professional services - - - - . • 25.873 - 332 - - 26,205 Telephone 1,406 5,147 2,115 1,736 49,101 6.079 B32 - - - - 56,012 Postage - - - 20 3,213 2.364 - - 5,597 Dues and mernl,erslrlps - - - - 7.223 433 - - - 7,678 Real estate saxes - - - - - 782 - - . - - 782 Outside services - - 6,807 - 18,387 - - - - - - 18.387 Total contractual services 99,334 35.992 14,530 16.003 988,015 178.585 4,696 17,648 332 - (56,700) 1,132,576 OTHER EXPENSES: Interest - 2,440 - - .23221 44.815 • 20,482 - (4,884) 83,638 toad debt expense - - - - - - 26,767 - - 24,767 Travel 2,055 28 14 3 16.404 7,7.53 655 - - - - 24.312 Training and educallon 487 499 60 60 5.247 471 - - • - - 5,716 Special events - - - 41,572 - - - - 41.572 Mirellateous 382 113 42 58, 3,637 3.992 - - - 7,629 • Total other expenses 2,924 3.080 116 121 48,309 56,531 42,227 20.482 26,767 - (4.884) 189,632 Total expenses beforeh;preciaticer 224,279 472.315 64,574 85,085 • 4,495,314 652,202 111,930 36,130 27,320 - (61.584) 5,263.312 DEPRECIATION - 10,226 186 432 43,340 55,904 230 - 9,805 - - 111.299 TOTAL EXPF_VSFts $ 226,279 5 482,541 5 64,760 S 85,517 5 4,540,854 S 708,106 $ 112,180 $ 38,130 $ 37,125 $ - 5 (61,584) $ 5,374.611 The accompanying rotes are an integral part of this statement. ECKER CENTER FOR MENTAL HEALTH INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS WITH CONSOLIDATING INFORMATION JUNE 30.2009 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF ACTIVITIES: Ecker Center for Mental Health, Inc. (the Center) and its Subsidiary are not-for-profit charitable organizations offering various psychiatric services for adults primarily in Kane and Western Cook Counties. The financial statements were available to be issued on October 23,2009, with subsequent events being evaluated through this date. The following is a brief summary of the accounting policies adopted by the Center: Basis of Consolidation- Fox Valley Mental Health Foundation (the Subsidiary) is consolidated with the Center for financial reporting purposes due to the fact it was created to support the work of the Center and that the Center, the only lessee of the Subsidy, has guaranteed the mortgage of the Subsidiary. Basis of Accounting- The Center records its financial transactions and maintains its books and records on the accrual basis of accounting which recognizes revenue as it is earned and expenses as they are incurred. Cash and Cash Equivalents - The Center considers all highly liquid investments with a maturity of three months or less to be cash equivalents. Credit Risk- Financial instruments, which potentially subject the Center to concentrations of credit risk, consist principally of cash. The Center places its cash and deposits with high credit quality financial institutions; however, deposits may exceed the federally insured limits from time to time.. Accounts Receivables - Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Center establishes 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. 2 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF ACTIVITIES: (Continued) 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 using the straight-dine 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 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 consolidating 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. Support- Contributions received and unconditional promises to give are measured at their fair values and are reported as an increase in net assets. The Center reports 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 consolidating 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 reports 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 reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. {, (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF ACTIVITIES: (Continued) Use of Estimates - The preparation of consolidating 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 consolidating 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 various programs and supporting services has been summarized on a functional basis in the consolidating statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. (2) INVESTMENTS: Investments of the Center are carried at fair value and at June 30, 2009 are summarized as follows: Fair Value Cost Total mutual funds $ 118,606 $ 140,U7 Total investment return consists of the following for the year ended June 30, 2009: Dividend income $ 2,603 Unrealized loss on investments (31,058) Total investment return (3) FATR VALUE MEASUREMENTS: Effective MayCenter 1 2008,the Ce to adopted Financial Accounting Standards Board Statement No. 157,Fair Value Measurements(FASB 157). FASB 157 establishes a single definition of fair value and a framework for measuring fair value, sets out a fair value hierarchyto be used to classifysource the so rce of information used in fair value measurement and expands disclosures about fair value e measurements required under other accounting pronouncements. It does not change existing guidance as to whether or not an instrument is carried at fair value. FASB 157 established market and observable inputs as the preferred source of values, followed by assumptions based on hypothetical transaction in the absence of market inputs. `,,. -4- 131 FAIR VALUE MEASUREMENTS: (Continued) The valuation techniques required by FASB 157 are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Center's market assumptions. These two types of inputs create the following fair value hierarchy. Level 1 -Quoted prices in active markets for identical assets or liabilities. • Level 2 -. Observable inputs other than quoted prices included in Level I, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs reflect management's own assumptions about the assumptions a market participant would use in pricing the asset or liability. This includes certain pricing models,discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at June 30,2009 and 2008. Mutual Funds: Valued at the net asset value(NAV)of shares held at year end. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Center believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table sets forth by level,within the fair hierarchy,the Center's assets at fair value: Assets at Fair Value as of June 30,2009 Description Level 1 Level 2 Level 3 Total Mutual funds _18,606 $ - $ - $ u8si06 • • j(t~ - 5 - (4)- PLEDGES RECEIVABLE: Unconditional promises to give which approximate fair market value as of June 30, 2009 are due as follows: Amounts due in: Less than one year $ 31,837 One to five years 30;709 Total unconditional promises to give 62,546 Less allowance for uncollectible promises receivable (17,400) $ 45,144 There were no conditional promises to give at June 30, 2009. (5) RELATED PARTY TRANSACTIONS: The Subsidiary entered into an agreement to lease a facility to the Center at a monthly rental 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 Subsidiary as of June 30, 2009. 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 Subsidiary to the Center was $4,884 for the year ended June 30, 2009. (6) 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 Subsidiary 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. In accordance with FSP 48-3, the Center has elected to defer the implementation of FIN 48, Accounting,for Uncertainty in Income Taxes. The Center continues to follow the guidance included in FASB Statement No.5,Accounting for Contingencies. - 6- (7) COMMITMENTS 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 $6,112 with various expiration dates through March, 2010. One of the leases for$802 a month does not have a determined end. The terms of the lease agreements require the Center to be responsible for utilities, general maintenance, and public liability insurance. The Center also leases a facility from the Subsidiary, which requires a monthly rental payment of$4,725. The lease is renewed every year for one year. The Center leases various apartment units on a month-to-month basis 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 leases as of June 30, 2009 are summarized as follows: For the Office Equipment Year Ending Space Rental Total 2010 $ 112,908 $ 1,548 $ 114,456 2011 - 1,548 1,548 2012 - 1,548 1,548 2013 - 1,548 1,548 Total 112.,908 $ 6,192 $ 119,100 Total rental expense for the year ended June 30, 2009 was $274,888_ Capital Leases — The Center has a capital lease for equipment. The lease agreement contains a bargain purchase option at the end of the lease term. - 7- (7) COMMITMENTS AND CONTINGENCIES: (Continued) Capital Leases - (Continued) The following is an analysis of the leased asset included in equipment: Equipment $ 52,000 Less - Accumulated depreciation (34,667) $ 17,333 The following is the future minimum payment, due in the next fiscal year, required under the lease together with the present value as of June 30, 2009: Year ending June 30, 2010 $ 19,117 Less- Amount representing interest (699) Present value of minimum lease payments $ 18,418 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. (8) 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, 2009 are as follows: 2010 $ 10,875 2011. 4.433 Total $_.:15,,308 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. - 8- (9) NOTES PAYABLE: Notes payable at June 30, 2009 consisted of the following: Center- • Payable in monthly installments of$6,891,principal and interest, bearing interest at 5.90%, due in November, 2013, and secured by land and a building. $ 945,500 Payable in monthly installments of$2,034, principal and interest, bearing interest at 5.6%, due in January, 2016, and secured by land and a building. 132,664 • Subsidiary- Payable in monthly installments of$2,148, principal and interest, bearing interest at 5.99%, due in May, • 2011,and secured by land and a building. 252,312 Total $ 1, %4�.§ Principal payments due on long-term debt during each of the next five fiscal years are as follows: Year ending June 30 Center Subsidiary Consolidating 2010 $ 43,707 $ 10,172 $ 53,879 2011 46,240 242,140 288,380 2012 48,920 48,920 2013 51,755 - 51,755 2014 849,696 - 849,696 Thereafter 37,846 - 37,846 Total $ 1.078,.164 $ 252,312 $ 1,330,476 (10) LINE OF CREDIT: 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 as of June 30, 2009. • -9- (11). 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 -Less than 3 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 annnities. The Center follows the policy of funding contributions to the plan on a current basis. The contribution for the year ended June 30, 2009 was$107,238. (12) -TEMPORARILY RESTRICTED NET ASSETS: •. Temporarily restricted net assets relate to time restrictions•related to pledges receivable for the period after June 30, 2009 as follows: Center Subsidiary • Total $ 173,578 $ _ 87,936 (13) CONCENTRATIONS: The Center maintains its cash accounts in financial institutions located in Elgin, Illinois. The bank balances at each institution are insured up to $250,000 by the Federal Deposit Insurance Corporation. Bank balances periodically may exceed federally insured limits from time to time. Approximately 72% of the Center's funding for year ended June 30, 2009 was provided by grants from the Illinois Department of Human Services. The Ecker Center for Mental Health has never received funding from ACORN. Karen Beyer Executive Directort 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 this 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 this 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 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: (I) Abide by the terms of the statement;and (2) Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction; (E) Notifying the City of Elgin's Community Development Department within ten(10) days after receiving notice under subparagraph (D)(2) from an employee or otherwise receiving actual notice of such conviction; (F) Taking one of the following actions, within 30 days of receiving notice under subparagraph(D)(2),with respect to any employee who is so convicted: (1) Taking appropriate personnel action against such an employee, up to and including termination;or (2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State,or local health,law enforcement,or other appropriate agency; (G) Making a good faith effort to continue to maintain a drug-free workplace through 16 implementation of paragraphs(A),(B),(C),(D),(E)and(F). 11. It has adopted and is enforcing a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations. 12. In regards to lobbying,the SUB-RECIPIENT certifies: (A) No Federal appropriated funds have been paid or will be paid, by or on behalf of the SUB-RECIPIENT, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement,and the extension, continuation,renewal,amendment, or modification of any Federal contract,grant,loan,or cooperative agreement. (B) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying,"in accordance with its instructions. (C) The SUB-RECIPIENT shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants,loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352,title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than$10,000 and not more than$100,000 for each such failure. 17 EXHIBIT C EQUAL EMPLOYMENT OPPORTUNITY CERTIFICATION Community Development Block Grant Program City of Elgin The undersigned understands and agrees that it is a SUB-RECIPIENT of the Community Development Block Grant Program of the CITY. 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 and HUD, 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,HUD,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, HUD, and the Secretary of Labor such information as they may require for the supervision of such compliance, and will otherwise assist the CITY and HUD 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 or HUD. (7) In the event that SUB-RECIPIENT fails or refuses to comply with the undertaking, the CITY, or HUD may take any or all of the following actions: cancel, terminate or suspend, in whole or in part, this grant, refrain from extending any further assistance to the SUB-RECIPIENT until satisfactory assurance of future compliance has been received; and refer the case to HUD for appropriate legal proceedings. 18 SUB-RECIPIENT: Ecker Center for Mental Health 1845 Grandstand Place,Elgin,Illinois 60123 BY: tit.c."-,A_, uki�Beer Exece Director Karen Beyer, DATE: S 2,0 ATTEST: ___ 19 f - h REPORT TO MAYOR & MEMBERS OF CITY COUNCIL E LG I N THE CITY IN THE SUBURBS AGENDA ITEM: D MEETING DATE: May 11, 2011 ITEM: 2010-2011 Community Development Block Grant Sub-Recipient Agreement with Ecker Center for Mental Health ($30,838) OBJECTIVE: Provide federal grant funding for an Elgin-based not-for-profit organization providing mental and substance abuse health services to adults with severe and chronic mental illnesses. RECOMMENDATION: Approve the execution of a Program Year 2010-2011 Community Development Block Grant Sub-Recipient Agreement with Ecker Center for Mental Health in the amount of$30,838. BACKGROUND In May 2010, city council allocated just over $920,000 in Community Development Block Grant (CDBG) funds to eight projects. CDBG funds come from the federal government, which uses a population- and need-based formula to distribute money to local communities to provide assistance to low and moderate-income persons. For the 2010-2011 CDBG program year, the federal government budgeted $3.9 billion. The city has participated in the CDBG program since 1975, receiving over$25 million since that time. Each year, the projects selected by city council are incorporated into an action plan, which must be approved by the Department of Housing and Urban Development (HUD). HUD approved the city's 2010-2011 Action Plan in May 2010 (see Attachment A for a copy of the executive summary of the plan). Then, each applicant must sign an agreement with the city which outlines the applicant's obligations as a recipient of federal funds. This agreement with the Ecker Center for Mental Health (Ecker Center) is the last such agreement of the 2010-2011 program year(see Attachment B for a copy of Ecker Center's agreement). The Ecker Center, located at 1845 Grandstand Place, is a not-for-profit organization providing dual mental and substance abuse health services to adults with severe and chronic mental illnesses throughout the Elgin area. Services range from early intervention to recovery, and include crisis, psychiatric, case management, rehabilitation, residential and psychotherapy assistance. Ecker Center will use this $30,838 to restore its existing retaining wall along the southern perimeter of the parking lot. The Ecker Center has requested and has been awarded CDBG funds in 2003, 2004 and 2009. The organization has complied with all the federal requirements of the CDBG Grant Program and the city's sub-recipient agreement for the previous years. The 2009 award was issued for the purpose of renovating the center's elevator. This project has been started but is yet to be completed. OPERATIONAL ANALYSIS Founded in 1955, Ecker Center is the only comprehensive behavioral health organization serving adults with moderate to severe mental illnesses in the greater Elgin area. Ecker Center is the state-designated outpatient mental health center for the city of Elgin. Ecker Center staff assists up to 3,200 low to moderate-income individuals with the process of obtaining and taking prescribed medication; provides individual and group counseling; offers a 24-hour psychiatric emergency program; and, helps with some of the special recreational needs. The Ecker Center also provides safe, low-rent housing to 60 mentally ill individuals, many of whom were formerly homeless. The Ecker Center coordinates its services with its other primary partners in the area including, PADS, Renz Addiction Counseling Center and Greater Elgin Family Care Center. The 2010-2011 CDBG grant allocation will be used solely to cover capital costs associated with the restoration of the existing retaining wall along the southern perimeter of the parking lot. INTERESTED PERSONS CONTACTED The Ecker Center was consulted during the creation of the sub-recipient agreement. FINANCIAL ANALYSIS The proposed Ecker Center CDBG award will be used to restore the existing retaining wall along the southern perimeter of the Center's parking lot thus providing a safe environment for their clients. The overall cost of the project is estimated at $30,838. The project will be financed entirely with funds allocated through the CDBG program. BUDGET IMPACT FUND(S) ACCOUNT(S) PROJECT#(S) AMOUNT AMOUNT BUDGETED AVAILABLE CDBG 230-0000-791.93-36 154650 $30,838 $30,838 LEGAL IMPACT None. ALTERNATIVES The city council may choose not to approve the sub-recipient agreement with Ecker Center and reallocate the funds to another project. NEXT STEPS 1. Execute a sub-recipient agreement with Ecker Center. 2. Monitor the bidding and construction process. 3. Process payment as approved by the agreement. 4. Complete review and monitoring of Ecker Center's clientele file by December 2011 to ensure compliance with the national objectives of the program that requires service to low-to moderate-income persons. 5. Request and review quarterly reports from the sub-recipient. 6. Submit annual reports to HUD on the sub-recipient's activities. 7. Prepare sub-recipient files for on-site monitoring by HUD prior to closing out project. Originators: Denise Momodu, Associate Planner Sarosh Saher, Senior Planner Marc Mylott, Community Development Director Final Review: Colleen Lavery, Chief Financial Officer William A. Cogley, Corporation Counsel/Chief Development Officer Richard G. Kozal, Assistant City Manager/Chief Operating Officer Approved: Sean R. Stegall, City Manager ATTACHMENTS A: Executive Summary of the 2010-2011 CDBG Action Plan B: Draft Sub-Recipient Agreement 11 CITY OF ELGIN ANNUAL ACTION PLAN FY2010-2011 °� -c C., LJK FLUMINIs t n ao cb sb Rh TED 'Vgol :. Community Development Block Grant Program April, 2010 1 CITY OF ELGIN ONE-YEAR ACTION PLAN FY2010-2011 2 EXECUTIVE SUMMARY The City of Elgin's 2010-2011 CDBG Program will receive $921,182 in Community Development Block Grant(CDBG) funds to assist Elgin's low and moderate income population. These funds will be used to address Elgin's priorities to rehabilitate affordable and special needs housing, renovate social service agency facilities, support emergency shelter facilities and support community planning activities. On March 31, 2010, the Elgin City Council held the Final Public Hearing and approved eight(8) projects for the 2010-2011 Annual Action Plan (One Year Use of Funds). These projects assist the City's low and moderate income population; support the ability for individuals and families to become independent and self-sufficient; and promote the City's anti-poverty strategy. Additionally, the projects support the City of Elgin's Strategic Goals to promote a safe community for people, neighborhood vitality, economic growth, quality housing, and efficient services. The projects and budgets are as follows: 1. Residential Rehabilitation Grant Program-$593,344: 2. CDBG Grant Administration-$75,000: 3. Northern Illinois Food Bank- $50,000: 4. YWCA Roofing and Planning-$55,400: 5. PADS Emergency Shelter Program-$50,000: 6. Ecker Center Retaining Wall Project-$30,838: 7. Community Crisis Center Interior Rehabilitation-$36,850: 8. NHS of the Fox Valley Foreclosure Prevention Counseling-$29,750: As specified by the CPD Outcome Performance Measurement System, each project is assigned 1) an objective that describes the project purpose and 2) the primary outcome that results from the project. Table 1 summarizes the goals of each activity selected for 2010 CDBG funding. TABLE 1: PROJECT PERFORMANCE MEASURES AND OUTCOMES FundingPerformance Elgin's Strategic Consolidated Activity gi gt Plan Allocation Measure' Goal Priority Residential Rehabilitation Grant $593,344 DH-3 Quality Housing Housing Program CDBG Grant Administration $75,000 EO-3 Efficient Services Public Service Northern Illinois Food Bank $50,000 SL-1 Economic Growth Public Facility YWCA Roof and Planning $55,400 SL-3 Alive Downtown Public Facility PADS Emergency Shelter Program $50,000 DH-1 Safe Community Homelessness Ecker Center Elevator Renovation $30,838 SL-3 Safe Community Public Facility CCC—Interior rehabilitation $36,850 SL-1 Quality Housing Public Facility NHS of the Fox Valley—Counseling $29,750 DH-1 Neighborhood Vitality Public Service ' Suitable Living Environment(SL),Decent Housing(DH)or Economic Opportunity(EO)]and the primary outcome that will result from the project[Availability/Accessibility(1),Affordability(2)or Sustainability(3) 3 Total CDBG Funds $921,344 The selected projects are consistent with the 2005-2009 Consolidated Plan. Four Consolidated Plan priorities - 1) Housing, 3) Public Facilities, 4) Homelessness and 5) Planning and Capacity Building-will be pursued with 2010 CDBG Program funds. Priority 1: Housing Preserve existing units throughout the area served by the Consortium. • Residential Rehabilitation Grant Program- $593,344 Priority 2: Infrastructure Provide gap financing for critical infrastructure projects. • No new CDBG activities are proposed during the 2010-2011 program year. • City funds will be used for infrastructure projects. Priority 3: Public Facilities and Public Services Support the construction, rehabilitation, and improvement of public facilities from which human services are provided. Occasionally support public services operated from public facilities when funds have not been designated for capital improvements to those facilities. • Ecker Center Retaining Wall Project- $30,838 (public facility improvement) • Northern Illinois Food Bank- $50,000 (public facility improvement) • YWCA Roof repair and Planning- $55,400(public facility improvement) • CCC Interior Rehabilitation-$36,850(public facility improvement) • NHS of the Fox Valley Counseling- $29,750 (public service) Priority 4: Homelessness Increase the availability of both emergency shelter and transitional housing services and facilities. Support the Kane County Continuum of Care in its efforts. • PADS Emergency Shelter Program- $50,000 Priority 5: Planning and Capacity Building Support community planning activities that effectively use and leverage resources. • CDBG Grant Administration- $75,000 In addition to undertaking 2010-2011 CDBG projects, Elgin will be pursuing the completion of several carryover projects in the upcoming program year. The City of Elgin has been working effectively with Sub-recipients to complete outstanding projects. All following projects are currently underway or nearing completion: PADS of Elgin, Ecker Center elevator renovation project; Housing Authority of Elgin elevator upgrade project; and the Community Crisis Center basement remodel project. • PADS of Elgin has drawn down $50,000 as of February 5, 2010. All funds has been drawn down. 4 • The Ecker Center Elevator Renovation Project is expected to go out for bid in May 2010, and construction should begin in June 2010. The project is expected to be completed in 5 to 6 months. The project is also using a CDBG grant from Kane County. The Elgin grant of$79,739 is expected to be expended first and should be completely drawn down and all funds expended by December 31,2010. • The Housing Authority of Elgin Elevator Renovation Project is expected to go out to bid in May 2010, and construction should begin in June 2010. The project is expected to be completed in 4 to 5 months. The grant of$68,500 should be completely drawn down and all funds expended by November 30,2010. • The Community Crisis Center Basement Remodel Project is expected to go out to bid in April 2010, and construction should begin May 2010. The project is expected to be completed in 3 to 4 months. The grant of$41,500 should be completely drawn down and all funds expended by October 31, 2010. • City of Elgin expended approximately $467,785 in 2008 for the Residential Rehabilitation Grant Program, funding the rehabilitation of residential properties within its jurisdiction. This assisted 41 homeowners to rehabilitate their existing homes. In 2009, the City of Elgin expended approximately $383,225 for the rehabilitation of residential properties within its jurisdiction. This assisted 46 homeowners to rehabilitate their existing homes. The following are a list of projects carried over from previous years that were completed during the 2009-2010 program year. • Elgin Day Care Center project- $33,423 • Housing Authority of Elgin security camera project- $38,690 • Renz Addiction Center office remodel project- $50,000 • Association for Individual Development building renovation project- $48,315 • Well Child Center Site Improvements Project- $56,043. 5 AGREEMENT BETWEEN THE CITY OF ELGIN AND THE ECKER CENTER FOR MENTAL HEALTH,INC. This AGREEMENT is entered into as of the day of ,2011,by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter called "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 15, 2009, and a revised scope of work stamped received January 26, 2011, submitted by the SUB-RECIPIENT entitled "Retaining Wall Construction" 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)2010-2011. B. All funding provided to SUB-RECIPIENT shall be used solely to restore the existing retaining wall along the southern perimeter of the Ecker Center's facility at 1845 Grandstand Place,Elgin, Illinois. About 3,300 low and moderate income individuals will benefit from the Ecker Center's program in its 2010-2011 fiscal year. The subject building will serve 100 percent low and moderate income persons as defined by 24 CFR 570.208 (a) (2) (i) (A). Such funding shall be used only for the restoration of the retaining wall, 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 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. Monthly Progress Reports 1. The SUB-RECIPIENT shall provide a Monthly Progress Report to the CITY each month, reporting on the status of the PROJECT in relation to the Project Implementation Schedule. The monthly progress reports shall begin upon the 2 signing of this Agreement and shall be submitted until the completion of the project or until directed to discontinue such reports in writing by the CITY. 2. Monthly progress reports shall be due on the 10t'day of the following month,for the previous month's activities. 3. 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). 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. 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 the CITY without the required documentation. H. SUB-RECIPIENT shall record and report monthly to the CITY all program income (as defined in 24 CFR 570.500(a)) generated by activities carried out with CDBG funds made available under this Agreement. Any such program income shall be returned to the CITY. Written request for an exception to this section must be made in writing to the CITY's Community Development Department. Such request shall describe why the SUB-RECIPIENT needs the income, the specific activities the SUB-RECIPIENT will undertake with the funds, and how the SUB-RECIPIENT will report income and expenditures to the CITY. A written response to the request will be provided to the SUB- RECIPIENT from the CITY. The use of any program income by the SUB-RECIPIENT shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, to the extent any such income is used during the Agreement period for activities permitted under this Agreement, SUB-RECIPIENT shall reduce requests for additional funds by the amount of any such program income balances on hand. All unexpended program income shall be returned to the CITY at the end of this Agreement period. Any interest earned on cash advances from the U.S. Treasury and from funds held in a revolving fund account is not program income and shall be remitted promptly to 3 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$30,838(hereinafter"Grant Funds"),to be paid in the manner set forth herein at Section VII. B. This PROJECT shall be identified by the following project and account numbers: Project No. 154650 and Account No. 230-0000-791.93-36 in the amount of $30,838, 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 project activities undertaken in whole or in part with CDBG funds at a rate of 6.7% for each year and portion of each year remaining on the ten-year useful life of the Facility improvements. The ten-year compliance period shall begin on the commencement date of this Agreement. This provision shall not be construed as limiting the CITY from asserting any claims against the 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 percent of the persons served on an annual basis shall be at or below 80 percent of the Median Family Income in order for the SUB-RECIPIENT to maintain eligibility for the CDBG funds provided for herein. Said income levels shall be updated and revised annually to conform to levels set by the U. S. Department of Housing and Urban Development. Failure to meet the aforementioned minimum 51 percent threshold shall require SUB-RECIPIENT to reimburse the CITY for funds expended,in whole or in part,for project 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. 4 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: 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 HUD to conduct on-site reviews, examine personnel and employment records and to conduct any other procedures or practices to assure compliance with the provisions of this Agreement. SUB-RECIPIENT 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 5 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 this Agreement. J. SUB-RECIPIENT and CITY shall at all times observe and comply with Title 24 CFR Part 570 and all applicable laws, ordinances or regulations of the Federal, State, County, and local government, which may in any manner affect the performance of this Agreement. Without limiting the foregoing,the SUB-RECIPIENT shall comply with the regulations, policies, guidelines and requirements set forth in Exhibit B, attached hereto and incorporated herein by this reference. 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 6 A. Upon release of Grant Funds by HUD for the PROJECT, the CITY shall make disbursements to the SUB-RECIPIENT as either reimbursement for advances made by SUB-RECIPIENT or as advances for specific cash requirements of SUB-RECIPIENT for the PROJECT. All claims of SUB-RECIPIENT, whether for reimbursement or advancement,shall comply with the following requirements: 1. SUB-RECIPIENT shall submit a listing of all disbursements of CDBG funds, on a form provided by the CITY; 2. Any claim for advancement of CDBG funds shall be limited to an amount necessary for SUB-RECIPIENT to meet specific cash requirements for the PROJECT and shall be disbursed by SUB-RECIPIENT within three(3) working days of receipt by SUB-RECIPIENT; 3. Any request for reimbursement or advancement pertaining to work under contracts from the SUB-RECIPIENT shall include the following: a. For interim payments to contractors and subcontractors, certification that the work for which payment is requested has been performed and is in place and to the best of SUB-RECIPIENT'S knowledge, information and belief that, the quality of such work is in accordance with the contract and subcontracts, subject to: (i) any evaluation of such work as a functioning PROJECT upon substantial completion; (ii) the results of any subsequent tests permitted by the subcontract;and(iii)any defects or deficiencies not readily apparent upon inspection of the work; and b. For final payment, 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 7 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. 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 tenth 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 this 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. 8 C. In the event CITY elects to terminate this Agreement or to suspend payments, for any reason stated herein above 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 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. 9 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. 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. Actions Date 1. Prepare Bid Specification May 31,2011 2. Bids Solicited June 30,2011 3. Select Contractor August 1,2011 4. Construction Begins August 31,2011 5. Construction Completed March 31,2012 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 10 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 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 Sections V and 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: Sean R. Stegall City Manager DATE: ATTEST: Diane Robertson City Clerk SUB-RECIPIENT: Ecker Center for Mental Health,Inc. 1845 Grandstand Place,Elgin,Illinois 60123 BY: Karen Beyer Executive Director DATE: ATTEST: 12 EXHIBIT A SUB-RECIPIENT'S CDBG APPLICATION 13 [DERSf C°• (847)488-0303 Fax(847)488-0966 Landscape Contracting&Management • www.pedersencompany.corn • giP July 1,2010 VIA FACSIMILE 847-622-1214 • lIgHT -Mr.Jack Shales 425 Renner Drive J A N 2 6 2 01 1 Elgin,FL 60123 Re:Ecker Business Center By Dear Jack: - Following is our proposal for the above-referenced project.Pricing includes all materials,labor,equipment, and restoration;also removal of railroad ties and unsuitable materials for backFll • Remove one course of stone,which means a slightly steeper grade. • Geogrid behind wall to 6'depth not 12',due to existing conditions(not new construction). This should be more than adequate from information given from block manufacturer. • Use'Alan Block'in lieu of'Anchor Diamond Pro'. S30.600.00 After you have a chance to look this over,please give me a call to discuss. 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Jl�l II11 11 7i�11 Il� I ll 11 �1 .el �.1- T--- �1 llI A 111 1 1 1 Ji II 11 f 1 ll ll 11= ml1 11 1=A uriiuun-u 1 - 11-1111L- =iC=n ilnit 11111 11111=11=1 ' .� � llu11 1 1unll {I1 1�U11 I 1�11 ' 11=`IlliiF ll`11 111 11I it II lj1 Ii 1III IEF 11 1=.- 7 PROJECT APPLICATION CITY OF ELGIN CDBG PROGRAM 2010-2011 PROGRAM YEAR Date of Submittal: 12/16/2009 Project Name: Retaining Wall Construction 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 oU/ City: State: Zip Code: Elgin, IL 60123 FC j 9y p0.9 Telephone: 84 7-695-0484 Fax: 847-695-1265 E-mail: kbeyer@eckercenter.org Amount of CDBG Funding Request: $30,838* *This number is 66% of the total project cost. Sixty-six percent of Kane County residents whom we served live 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 who live outside the City of Elgin. 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 four percent of the organization's funding comes from the State of Illinois. A majority of the Center's services are provided at its 1845 Grandstand Place facility. The facility site slopes steeply toward Larkin Avenue on its southern parameter and clients try, often unsuccessfully, to scale the incline to avoid walking two blocks to reach the building on sidewalks. This is dangerous and would not be possible if the area had the retaining wall the ground requires to stop soil from sliding toward the street and causing concrete slabs in the parking lot from shifting and causing a tripping hazard. The Center lacks funds for this retaining wall project for the reasons that follow. The Center's client population 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 State of Illinois, which supplies almost three fourths of the Center's funding, has paid the Center only 24% of what it owes the Center this fiscal year, so all of the Center's reserves are being used just to continue its operations. For these reasons the Center is seeking assistance to build the retaining wall. This project will benefit low and moderate income individuals who live in the northern two thirds of Kane County. The incomes of Ecker Center's clients range from very low to moderate 2. PERFORMANCE MEASUREMENT: Project goals and objectives: The project steps will be completed in a timely and efficient manner with a final objective of a retaining wall 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 Construction begins Construction completed . 3. NATIONAL OBJECTIVE: This project will benefit low and moderate income persons as defined by the FY 2009 Income levels for the Chicago Metropolitan Area. 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 89%,low 8%and moderate 3%. 4. ELIGIBLE ACTIVITY DESIGNATION: The project is eligible as a construction activity at a nonprofit-owned nonresidential building under Rehabilitation and Preservation Activities and as construction 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 2010-20011 fiscal year. During the last seven 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 2010 and beyond should the City require data in the following years. 7. PROJECT COST ESTIMATE: $46,225 Blocks,fabric,gravel,drain tile, top soil/sod, labor, equipment, dump charge,trucking 500 Bidding process costs-advertising,printing $46,725 Total Cost 8. OTHER PROJECT FUNDING SOURCES AND AMOUNTS: We are requesting 66% of the total cost or$30,838 from the City of Elgin. We are submitting a request for Kane County CDBG funds for the remaining 34%of the total project cost($15,887)because 34%of the Kane County residents we serve live outside of 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 4 months Construction begins 6 months Construction completed 7 months Total 7 months 10. PLANS AND SPECIFICATIONS: OTHER INFORMATION: See attached bid 11. OTHER INFORMATION N.A. 12. ORGANIZATIONAL STRUCTURE: See attached chart Nov. 4. 2009 4:26PM Pedersen Company 847-488-0966 No. 1839 P. 1/1 • pDfsEN (847)488-0303 Fax(847)488-0966 Landscape Contracting l3c Management . . www.pedersencompany.com \ow)/ t . November 4,2009 VIA FACSIMILE 847-622-1224 Mr.Jack Shales Shales McNutt Construction 425 Renner Drive Elgin,IL 60123 Re:Ecker Business Center-'Anchor Diamond Pro'Retaining Wall Dear Jack: Following is our proposal for the above-referenced project.Pricing includes all materials,labor,equipment, and restoration;also removal of railroad ties and unsuitable materials for backfill. • Blocks • Fabric • Gravel • • Draintile • TopsoiL'Sod • Labor,equipment,dump charge and trucking Total Pricing • ,r46.225.Q0 • • Thank you for the opportunity to submit this proposal.Please feel free to contact me should you have any questions. • Sincerely, PEDERSEN COMPANY Paul Pedersen,President PFP/Ih • 6 N 543 Route 25• St.Charles, Illinois 60174 Pagc 1 of 1 Ecker Center for Mental Health Mission Statement To provide quality mental health services that are courteous,accessible, safe 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 actions 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. Your organization is required to file Form 990, Return of Organization Exempt from Income Tax, only if its 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 'ft 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). • cause this letter could help resolve any questions about your organization's exempt status and foundation t,f .,.atus, 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, John E. Ricketts, Director, TE/GE • Customer Account Services 44 A, Illinois Department of Revenue :�< • ' i 4 Office of Local Government Services t l:: "1 Sales Tax Exemption Section, 3-520 ;;,= xi' 101 W. Jefferson Street ,0. '. 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 Occup.ation 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) IL-492-3456 11-0000119 File Number 3503-746-2 __ ___ a, r_ ._ EL 43177,- N r42--- -- _------------ -- -.4 ...".= ----"4 w- -'-- - -'' --.1--.---- v..---..--;-- --------,-, _:". '• - _-- ---7 /* _ - - - i � �_ 31i. gip .- WO a - } t r S Jry �a/� / (---. •1;:',P;\'7.4: '-\..\--- To all to whom these Presents Shall Come, Greeting: I, Jesse White, Secretary of State of the State of Illinois, do hereby certify that I am the keeper of the records of the Department of Business Services. I certify that ECKER CENTER FOR MENTAL HEALTH, INC., A DOMESTIC CORPORATION, INCORPORATED UNDER THE.LAWS OF THIS STATE ON FEBRUARY 23, 1955, APPEARS TO HAVE COMPLIED WITH ALL THE PROVISIONS OF THE GENERAL NOT FOR PROFIT CORPORATION ACT OF THIS STATE, AND AS OF THIS DATE, IS IN GOOD STANDING AS A DOMESTIC CORPORATION IN THE STATE OF ILLINOIS. :•.,h,�. In Testimony hereof I hereto set ,- , ,,$TAT O �,. /14. v�;� - :„ myhandandb cause toe affixed the Great Seal of _ � I I. the State of Illinois, this 23RD .. 9 s� � �.- r: ��. =� day of JANUARY A.D. 200 , ...„....,,,,- Q---2.g.e._.---a--e...--- )‘,/1-)ef.,,& Authentication#:0902301531 Verify at www.cyberdriveiliinois.com SECRETARY OF STATE • • • J To D• FlI d FORM MP.35 In D4YIIc�I Date_ rul°°Fee 5. ARTICLES OF AMENDMENT $25.00 1) to the Filing Fee $ ARTICLES OF INCORPORATION Clerk ��f .1 under the GENERAL NOT FOR PROFIT CORPORATION ACT Jlld EDGAR, To k( kLItliGt(3S?i5{3i . Secretary of State, Springfield, Illinois: .The undersigned corporation,for the purpose of amending its Articles of Incorporation and pursu- ant to the provisions of Section 35 of the"General Not For Profit Corporation Act"of the State of Illinois, hereby executes the following Articles of Amendment: I. The name of the corporation is: F_aa Val ley Aiante 1 Hea1,i-h AscLoci atinn, 2. There are.._i!o memhers, having voting rights with respect to amendments: (insert "no" or —some) (Strike paragraphs (a), (b), or (e) not appiicable) d ,LibB•32 1: kcal tick ,�txtzccr�x�i�,zogxtt:� ��x,Q. •ecvax��'€s.>axl�Xce}ctcx�ccx.�xx�exx_v..�.�.r�;h:^9r�:xx t..:of-.. cvotamcontitklt bniat.xxytt:e:ntedxb=rx eki• y, cx x tix rntxzr..crxxxsext lbsprr .y; z-teRtireg< (c) At a meeting of directors (members having no voting rights with respect to amendments) held on February 22 , I9 f33 , same receiving the votes of a majority of the directors then in office, the following amendment or amendments were adopted in the manner prescribed by the "General Not For Profit,Corporation Act" of the State of Illinois: • The name of.the corporation shall be changed from Fox Valley 'rental Health Association, Inc. to Ecker Center for Mental Health, Inc. • • • • • • ..r r (;c:rtil'icutlt: Ntiinlxrr 3745 1 A lr0r�� r / S S''- i� 1 � 1-.t. ,rrc ,� - f . 1,.PI,Off l�`�VT? `cif•, , �J. •t,,,, :. - '!tiff (! viliTv'�iitilti 4lct`��'.l:tl7t~�eu1 ;k:4R.Q:iullgit 3-rot"iit i' - • . . •Y '11ia'i1•IlI&it .,.(•//r/r.) 1.///r%nO/ar//i./////r///.)r///rv/ai/r/tr? it/i/ •.ox vM.L'::Y •07•}r1'AI. IiEAIli.]I SOCIETY - - �ii/u•X rir �r/riff,//,••IO/ %����r / {//n/r irrr"i' • 23i• I • /r n'r n /r ,riff, rrY�.r�• day r�• I ot.ruar ,( ! r r' /ir/ii/Y//./'/�i•GENERA! NOT r FOR PROFIT CORPORATION ACT"//rJ/�i//i), /0AYr,/vr/Af! 17. r'.rJ! i///rYrr• �iir/nrrY�.I r•/.((1:/.Jt:. ;loin`-Thetcl u - 9Ct:ARLES F C,RiViTt:'R.1,1•Yrf . . air�,..,wi •r//f6r r//ii/r r`f/rrimi;.: . . 4 /tY/ri/•r,/li/rriri) rr:)/a/u/ //ir•%/irr;ehIArYWr i)Jrir- !Y•i//err r•r/ ///t: i%aeii•// a/rr/a//rr/ //ir•'•/71.rrr tY/7////r:r/Y/riffs) 9/• iri:/i•Yrt/i:rr . - r1'/�r r iir.)ari/rr.,0,r,r/i l/. . ��11 (Li',9$igtaalai iia#?rae'a3f,,VAC•Yifi.:)r/a/y/rrr/r/ara/rrllaJr•/• . • ^ r •//� ' , / r///iarr3 .i-A irn a/101:lr%%r�!/ iii/1//;;l%//iJ 231'4 -11- ' Mfg '.,.1 r/r7 r/ Febintcu•;� .0/.0 5 .ra./ - ♦ f .i T f�L t � ,► *SSSS /rrr j ,'• 1� //r•r:ar XaWe/Yrr/rrr.'r/ ..tIffi 7:'Gh. \': ,i . i •,•� =fit i s Qtl'•• ' '4 a.NL1.41 a),SiA11 rA. I•a ..-ftf . ` ! 1 e" •: ::•. lad. (•3UU PAct4ti9 . . • . .,._ , s. ... . . . . . . . • • - - . . . . . . ' . : . , - . . • . . . . . . . , . . . . . - . - - . • • . • ' - . . . • . . . - • . , . . - . . . . . . . . . • - • . . . • , . . . . • . . , • . . . . . • • - . . • - . . . . . . . . . . • • . . . . . . . . . . . . ' . . . . .. . . . . . . . . . . - - . • . . . . • . . .. - . . . . . . . . . . . . . . . . . . . .- . . . • . . . . . . . 1,11fIll —31955 Oocurnent t1o. 77t-'''954 1--iled...._.._........—.....—...195._..... Hied for record in Recorder's Cce of V.ano County, Illinois at /00'co0k a. - . Ril..corde.r of Dee..:i. . . . N()TIC:1'. TO C:(111P()11.‘TIONS , . . . . Every "not for profit" corporati es on is required to ecule th and file in e C)lfice of the Secrctaty of St.ito between the 15th day of January and the last day of Vehrtiar • of each year, after the year of its incorpof.tlion, an annual report, and severe penalties are inflicted for failure to thi so. Corporations are also required to file all amendments to their articles of incorporation below such amendments become effecti‘-e. The certificate of incorporation and all amendments thereto must be recorded in the office of the County •Recorder of the County in which the yo..gistcled office of the corporation is located Nvitliin 15 days flout the issuance thercof. . . . : • : . . ., - . - • • .. • - • . . - . - . . . . . . . ..._. . . . . . • • . . AkT1CLES OF INCORPORATION UNDER THE 'Li GENERAL NOT FOR PROFIT CORPORATION ACT .- . - • - Criteae Articles- lust Be Filedri IN:plicate) • . - ( • -T'•• i.. ,Secretary of St.ite,Springfield,Illinois: • - \Ve. the underz-ir.ned. • • . (Not less than three) . • . . • ------------- Adarrss Name N unit ter Street City State . . . . . . • • • J !nr:-;:it F._F.::tor. - ....7..if1P14gn 1..!.1*!t? . nati..4w, 1 , lin,ir p7 ..!ii.t.....iers, .J r., 1.123. Larkin Avonue vi..i.r, ill 1-01- . . •. . .,o. .4. tataat ri.cFricklun 107 (1J ..1.41.11tui "tvessr.;o* _•.::I.:I.n,..t.t1l:::..,.1:-... •_ • • • ! r. Rouer . W. DitLyo7. - 606 Rifikihnd ivvnue lil.•••141 1111 • - •—-- • . . Of•rin G. ThempuiPn 5r..,::' '..:• Cid eni-,c) r.tr..e.t. Firin, 1111! 0 I s . .. . .. ._....... _. ..... _ ........ . . . . ...... ... ..... _ . . . . . . .. • le:in na tut al;tabor.;of the age of tweitty.tme eat"....ir Mule;i1.1 citizen a the Vititril States.fur die istU-. - ..re • s.• . pus.:of forinieu:a etorporatimi under I lie"General Not For Profit Corporation.Act"of the State of Illinois. . ‘ . do lunch),adopt the folloteing At ticks.i.of Incorporation:' .: '. ... - ' - , • . - • . . . . 1. The name of the corporalind is:......l'.9.;(.V c .Y..rd.',...r.0.!llr• 111:11..1..ktit...!;;Kie..1•Y....... ...... . 2. The pe-rics1 of duration of the corporation is:........ .........,P..:61T.t-li..21.....................-.--........„ ••••••. .. - . - :. . . - . . . . 3. flie address of its ini tal Iteiiistered Office in the State of Illi llllll is:........!)31.lll.•.4.......rir..1... .111.•...L. ..- - . . . . :of. ... Elgin..-...........,..,.......C:otinty , • - . .... .m111 the naine of its initial IZegistered Agent at said totttress is; ......„..........-Iyr.. :.C.hu ..cr:li:''.1.)aviu.... • .1.1.. .... . _..'. :.,.-......—,. ........- . .. . . •, - 4. .Tlie first Fluard of I)ireciois Ai all be-.............15._...........L:7iii utunlier,their aimes and address lacing : • • • - : ( -(Nut less than three). •. , as follows: . .. • - • . • . . . . . . . . . . . . . . • - - Address - • . • Isl..tone Numlier Street . • -Cite State . : - ;in epit F .. f.ti Gus " 7 V.ai dan Lune . Dundee I.11 i no itt • . r.r.t.. Dor.old ::ort oil * 2116 N. '.•:.4.+r tit Avunue ' El n li , 1111 no ........... .. • :I h.role T. :5;e1.1r,le 56 iii',ter Bluff n Rona Eirl .1. i 111 ' • • Dr. ito:-..t.rt. '::. tillvyGs DO6 Ilirillenu Averiut: - IF.11n, .fillnois . !;* ... . ... . . .. . . . .. . Orrin r.',. Thunpvon 558 r. Chicni.:o :;tr(:ut Elgin, I111:1:01i; . - :In- Jez.hu*. rierry . i n,--,1.r.i n,.1"1 1 1 Jud: c tr 1 1 . ::-Itr,,en .1.C:0 !•'.. ..-Aii c:21c:t.) :.:t.rev.t. -e:),...i n, 1111r.,.1:, iteV. . qi arm ,..,-.Phi. ir:r. 767 Hi 1-.11.1.end :',Venn(: :!:11:1n, 1.1 Lill• i:-. F.1 fl Grcv.: Elvin, it 1 i•:.1.:t ... . hrs. !!ityrlor.c.i Pc nrzt.11 621 iirciok ::tree L • F.14-,in, I 1.1i noi Dr. Dlniul. il9rion 750 . . *.. l.r:to ;;Lrett. P.Ici n, I ill r.t.ti.tt r:*• :.!,rt r.. :.i Li.It.r, .!r. 1121 Lorkin ;%ve;lue EL-,1 tt, Ill i no In i , tpLio,:, G. 10,...r.rd 9110 Ltrugl.nr. /venue Elc,in, I IL tr..)in . . I:n (:• LiopLon • . ::1..:Itt: 13ank ' • Z . Citurl en, Ill i n,i1 • . .-:....- 1 . . . • - • . . .. . . . . :. .... , . . 4 if, t The purpose or purposes for which the corporation is organized are! • T »e exclusively in scientific, literary and educatici:.r:l • [lc) engage Illinois, ;:rc:t; activities leading to cUelArG 'U�ier'i3OYdtiPllty,conservation of J the mental health of the people� including toe study end furnishing of facili'tieslforsthe disorders, and core of nervous, emotional and regardless of race, creed or color; And to „eceive) use, ;:old end .,t:. ly funds, 1 'f ts, bequests nd the proceeds t:L:.•reof, to }_ive effect to and endowments or corry out t.►e 1•urposes hereinstated. "Nothingherein contained shall be construedoio;iautoorize 6. rorat perform d of the functions duly . the corporation to pt o :tor'';,i::11 t:ie'. cai•i)CYetiOfl o•c i' to li.cens cd- r•',e3ic::1 doctor, clinic as defined in tno case of People vs United Hetlicll Service, 362 Ill. 11112. • (Note: Any special provision authorized or permitted by Statute:to be contained in She:Articles of Incorporation. may be inserted.above-) . • (5i;'E'd ..1 _ ) Josephle. •::stet. • n • 1) a 53 ::i tiler s, Jr. J Incorporators. n Rev. . Glenn AcFadden 1% 1:X' ...wiz/bo•r.t...:.1....0;.1;;'r4s u Orrin G. `Phor'pson - r ` • G' �' vi1S.I1�� .ioro1:] contained co:U` trucct to fiuthorizo . the cor': ration tJ T�"T's'C�'Iil any of the ' '? 1 'J of a caul-,t .. :a. v is Et�� ccii:iec3 moc".1;t.c t1 Cio•L'tor IIor a'_Jail .t o {,Gi'_ po.`Lltion oporclto A In tho cG )0plt V3 United c1.�•_Zlc n� �a_''�I1�J •;3i� :,_, _'t _i,.ru ;'c�saal • • • • • • • (NOTE: Any special provision authorized or permitted by Statute to be contained in the Articles of Incorporation, may t • be inserted above.) (INCORPORATORS TI SI' SIGN 11nLO2 ) - • • • iv _2.4 • Incorporators 14-r' • Certificate number 3745 OF ILLINOIS . S STATE ��- OFFICE OF THE SECRETARY OF STATE • . It H „ 1t I,II II 11 it 11 it 11 1,,1 11 II r' " State Seal Vignette .. It 11,1 11 it 11 1t II I1 11 11 I1 1,f, 11 11 11 11 11 11. TO ALL TO WHOM THESE PRESENTS SHALL COME, GREETING: WHEREAS , Articles of Incorioration duly signed and verified of FOX VALLEY MENTAL HEALTH SOCIETY have been filed in the Office of the Secretary of GState onOT the 23rd. • day of February A. D. 1955 , as provided by PROFIT CORPORATION ,ACT" of Illinois , approved -.July 17., 1943,.. in force January 1, A. D. 1944; • VOW, THEREFORE, I , Charles F. virtue tof theof Secretary powers vested iil 'of State of the State of I1litloi.s , byy f by law, do hereby issue this CertiaeIncorporation andthiattach d thereto a copy of the ArticlesIncorporation. corporation. IN TESTIMONY V I; RECF, I hereto set my hand and cause to be: affixed the Great Seal of the State of Illinois. Done at the City of Springfield s the day of February A. D. 1955 , d of Indet:endence of the United States the one hundred and 79th. • CHARLES F. CARI'EN'TIER _-- SECRETARY OF STA1 T E • • 'ill,t It II II 11 It It 11 it 1t 1! Ii It 11 II II I1 II It 1111 t1 11 II p I1 11 1I 11 1t It . " SEAL OF THE STATE OF ILLINOIS ,1 (SEAL) August 26th, 1818 1111 It 11 11 I1 1111 II 1111 11 11 II 11 11 11 II 11 If II It II II,t,I II 11 I1 11 „II It . • . .. • . • / . : . . / . . • . . . • . ( . , ACKNOWLEDGMENT i . . . • • . . . . . STATE OF ILLINOIS, . SS. • • • - County of • - " . .. • . . " . DA!! :: . `.-JITitEliS, -Ji •i. , a Notary Public. . 7 do:hereby certify that on the_ _.. _.: ....._....._410...4._..... . ._day of. ...... .e..g.1.?. .r.A.M.ry.....,........., 194..i...:1; Joseph P. - Estes; Pira. Diu B. . 1tu,..r4, Jr. ,- Rev. W. )lob MeYcdtivn, ' L111......IIPMarre.....W.....011c.Y. Tbonpam_..........._...:__...._..................,.._...--. ...._, personally appeared before toe and being first duly sworn by me severally acknowledged that they signed - the foregoing docitment in the respective.capacities therein set forth and declared that the statements . . ,--- . therein contained are true. • • • . . . . . -. . .. -. . - , .. , .. I( IN 'WITNESS WI(El:KW..., I have hereunto set my hand and seal the day and year above written .. .. . . . . . . . . . . . - • . Notary Public. . . . . • . . - • • . --- . Notarial Seal . • ::fir:r.in si en EXri.r c:s.• 0 ;.'Ober . . . - . • . . . - Document No. 773954 Filed Mar. 3, 1955 Filed for record in Recorder's Office of Kane County, Illinois at. 10:45 o'clock A.M. _ • (Signed) Grace E. Markuson• Recorder of Deeds / • . k .• . 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 2 ECKER CENTER F.,.MENTAL HEALTH BOARD OF DIRECTORS October 2009—October 2010 NAME/EMPLOYER/POSITION ADDRESS PHONE NUMBERS/ MEMBER TERM E-MAIL ADDRESS SINCE EXPIRATION Conroy,David, Chairman 401 N. Kirk Road 630-262-8300 x7602(W) 12/2006 12/2009— 1" Sales Manager Geneva,IL 60134-1667 Gordon Flesch Co. dconroy@gflesch.com Sellers,Aaron, Vice Chairman 1137 Forest Drive 847-903-1054(W) 10/2006 10/2009— I" CEO Elgin,IL 60123 • Training Solutions, Inc. asellers(iwideopenwest.com Young,Tom,Treasurer 112 William Dr. 847-888-9800 (W) 2/2004 2/2010- 2nd Crisanti and Young P.C. Elgin,IL 60123 847-695-3252(H) Attorney 847-888-9899(F) tort24(ahotmail.com Tiballi,Dr. Robert, Secretary P.O. Box 5934 847-781-1790—W 11/2004 11/2010—2"" (Anna D'Alessio,Personal Asst.) Elgin,IL 60121-5934 847-781-9973—F Gerrnbusters, P.C. • President& CEO BTiballi@germbusters.com Acevedo,Marilena 739 N. State St. 847-608-7151 (W) 12/2009 12/2012— 1 St PetroLiance LLC Elgin, IL 60123 847-878-7140(C) Director,Human Resources macevedo@petroliance.com _marilena926Qcomcast.net Kirk, Alan 619 N. Harrison St. 847-854-5063(H) 8/2004 8/2010—2114 Algonquin,IL 60102 akirknresultsmc.com Pate, Greg 185 Alleghany Rd. 847-602-2096(C) 12/2008 12/2011 —1" Grayslake,IL 60030 bankerbob56@yahoo.com Reynolds, Joann 4345 Barharbor Drive 847-741-9600 x205(W) 8/2004 8/2010—2"d Schleifring Medical Systems LLC Lake in the Hills,IL 60156 847-741-0022(F) General Manager 847-669-3509(H) jreynolds@schleifringmedical.com Stewart,Tanya 1335 Todd Farm Dr.,#101 847-741-3536—H 2/2006 2/2009— l S' Elgin,IL 60123 s tewarttanva 19(aiyahoo.corn . RESOLUTION AUTHORIZING APPLICATION FOR CITY OF ELGIN AND KANE COUNTY 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 and Kane County Community Development Funds for a retaining wall; and WHEREAS, said project will increase client safety; and WHEREAS,the Elgin City Council and the Kane County Board must approve said application and will require Ecker Center for Mental Health to execute Funding Agreements 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 and Kane County Community Development Funds,Funding Agreements and other necessary documents upon approval of the application by the City of Elgin and the Kane County Board, and any requests for payment and documentation required to be submitted by Ecker Center for Mental Health to City of Elgin and Kane County requesting the dispersal of funds. BE IT FURTHER RESOLVED,that any changes to the above-stated project description need not be approved byEcker Center for Mental Health. P PP SIGNED: AT I EST: \ -� ' ECKER CENTER FOR MENTAL IIEALTII ORGANIZATIONAL CHART BOARD OF DIRECTORS EXECUTIVE DIRECTOR • Director of Medical Services Director of Residential Services Director of Recovery,Emergency&Information Services z "tit P q 5 ,�Ts 3 ail 5 a8 NI J �t� m `01 a 9u o u � ¢ S . x 1 g i t i i m< i O n v ra S r .. wS I Residential Case Managers,MHPs&MHTs Residential Case Manager, Residential Case Manager, Case Case Case Managers Medical Records HUD,HUD Leasing&Supported Apartments MHPs&MHTs MHPs&MHTs Managers Managers &SRSS Specialists CILA Supervised Residential --Indicates position is a consultant position Revised 9R4l09 Tim BATES 3673 SONOMA CIRCLE LAKE IN THE HILLS, IL 60156 • 847-515-2230 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. • Created program to predict profit by individual item,achieving higher profit margins. • Redesigned financial system from"pooled"to individual accounts,allowing better and complete financial information to end-user. • Wrote budget system in dBASE consisting of about 8000 lines of code. EXPERIENCE ECKER CENTER FOR MENTAL HEALTH • Elgin, IL ACCOUNTING MANAGER 2007-Present Not-for-profit charitable organization offering various psychiatric services for adults. • Prepare annual fiscal budget. • Oversee production of financial reports,analyze financial trends,and recommend appropriate action. • Act as staff liaison to the Finance Committee of the Board of Directors and attend Board meetings as requested. • Manager audits. • Oversee agency's environmental condition and acquisition and maintenance of property and equipment • Oversee purchasing,office operations and risk management, including insurance policies. 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 of 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. Tim Bates timbates@foxvalley.net 2007 • 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@foxvalley.net 2007 12/9/2009 10:32:04AM Ecker Center for Mental Health Page 1 Statement of Financial Position as of November 30, 2009 Current Year Prior Year Variance Assets Current Assets 608,635.26 809,04823 (200,41.2.97) Long Term Investments 133,148.55 140,056.03 (6,907.48) Receivables 125,668.04 344,987.88 (219,319.84) Other Current Assets 11,730.35 11,470.57 259.78 Fixed Assets 1,830,074.01 1,79,1,777.14 35.296.87 Total Assets 2,709,256.21 3,100,339.85 (391,083.64) Liabilities and Net Assets Liabilities Current Liabilities 286,820.66 420,622.41 133,801.75 Long-term Liabilities 1,070,533.49 1,134,878.33 64,344.84 Total Liabilities 1,357,354.15 1,555,500.74 198,146.59 Net Assets Unrestricted Net Assets 1,351,902.06 1,544,839.11 (192,937.05) Total Net Assets 1,351,902.06 1,544,839.11 (192,937.05) Total Liabilities and Net Assets 2,709,256.21 3,100,339.85 391,083.64 12/9/2009 10:36:29AM Ecker Center for Mental Health Page 1 Statement of Activity For the Month ended November 30, 2009 Month Month Year to Date Year to Date Year to Date Percent Actual Budget Actual Budget Variance Variance Revenues Public Support 153 8,750 34,317 44,065 (9,748) (22.12)% Fees&Grants-Governmental 61,479 381,649 697,622 1,857,245 (1,159,623) (62.44)% Fundraising 20,510 5,000 64,730 61,865 2,865 4.63% Program Service Fees 47,340 34,499 200,493 192,495 7,998 4.16% Other Revenue 2,907 6,427 31,674 32,135 (461) (1.44)% Total Revenues 132,389 436,325 1,028,836 2,187,805 (1,158,969) (52.97)% Expenses Personnel and Benefits 231,362 231,225 1,216,711 1,240,164 23,453 1.89% Program Expenses 33,838 51,530 110,582 280,415 169,833 60.57% Specific Assistance to Clients 8,832 13,868 32.595 69,340 36,745 52.99% Occupancy 47,930 77,709 255,117 396,781 141,664 35.70% Development&PR 7,015 200 41,477 53,593 12,116 22.61% Management&General 825 3,785 24,363 40,259 15,896 39.48% Other Expenses 12,763 2I,115 7I,225 105,975 34,750 32.79% Depreciation 0 9,977 36,145 49,885 I3,740 27.54% Total Expenses 342,565 409.409 1,788.216 2,236,412 448,196 20.04% NETSURPLUS/(DEFICIT) (210,177) " 26,916 (759,380) (48,6071 (710,773) (1,462.28)% • • ECKER CENTER FOR MENTAL HEALTH, INC. AND SUBSIDIARY CONSOLIDATING FINANCIAL STATEMENTS AS OF JUNE 30, 2009 TOGETHER WITH AUDITOR'S REPORT Dugan&Lopatka Certified Public Accountants 8_Consultants A Professional Corporation 104 East Roosevelt Road Wheaton,Illinois 60187 (630)665-4440 Fax(630)665-5030 www.duganlopatka.com Michael J.Dugan a-mail:infogduganlopatka.com T.Brett Flickinger Jerry.L Lopatka Karen M.Olson Mark F.Schultz Hugh E.Elliott Peter J.Zich Leo M.Misdom Gwen S.Henry INDEPENDENT AUDITOR'S REPORT Board of Directors of Ecker Center for Mental Health, Inc.: We have audited the accompanying consolidating statement of financial position of Ecker Center for Mental Health, Inc. (the Center) and Subsidiary as of June 30, 2009, and the related consolidating statements of activities, cash flows and functional expenses for the year then ended. These consolidating financial statements are the responsibility of the Center's management. Our responsibility is to express an opinion on these consolidating 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 consolidating financial statements referred to above present fairly, in all material respects, the individual and consolidated financial position of Ecker Center for Mental Health, Inc. and Subsidiary as of June 30, 2009, 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 23, 2009 • AFFILIATE IN PACT IN IERNATIONAF NETWORK OF PROYESSIONAI ACCOUNTANTS ECKER CENTER FOR MENTAL HEALTH. INC. AND SUBSIDIARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION WITH CONSOLIDATING INFORMATION JUNE 30, 2009 ASSETS Ecker Center Fox Valley for Mental Mental Health Consolidated Health, Inc. Foundation Eliminations Total CURRENT ASSETS: Cash and cash equivalents -unrestricted $ 175,908 $ 69,930 $ - $ 245,838 - restricted 10,468 42,790 - 53,258 Investments 118,606 - - 118,606 Program service fees receivable 1,050,357 - - 1,050,357 Grants receivable 163,110 - 163,110 Pledges receivable - net of allowance - 14,437 - 14,437 Due from related party 97,673 - (97,673) - Deposits 11,110 - (4,795) 6,315 Prepaid expenses 17,722 - - 17,722 Total current assets 1,644,954 127,157 (102,468) 1,669,643 PROPERTY AND EQUIPMENT: Land 381,832 77,829 - 459,661 Building 1,548,082 294,171 - 1,842,253 Building improvements 651,969 - - 651,969 Furniture and equipment 259,054 - - 259,054 Vehicles 47,030 - - 47,030 Leasehold improvements 55,357 - - 55,357 Software 12,977 - - 12,977 2,956,301 372,000 - 3,328,301 Less- Accumulated depreciation 1,098,163 44,014 - 1,142,177 Net property and equipment 1,858,138 327,986 - 2,186,124 OTHER ASSETS: Pledges receivable, net of current maturities - 30,709 - 30,709 $ 3,503,092 $ 485,852 $ (102,468) $ 3,886,476 The accompanying notes are an integral part of this statement. EXHIBIT 1 LIABILITIES AND NET ASSETS Ecker Center Fox Valley for Mental Mental Health Consolidated Health, Inc. Foundation Eliminations Total CURRENT LIABILITIES: Accounts payable $ 81,629 $ 1,466 $ - $ 83,095 Accrued wages and payroll taxes 92,688 - - 92,688 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 18,418 - - 18,418 Notes payable, current 43,707 10,172 - 53,879 Total current liabilities 357,481 114,106 (102,468) 369,119 r, E LONG-TERM LIABILITIES: Notes payable, net of current portion 1,034,457 242,140 - 1,276,597 Total liabilities 1,391,938 356,246 (102,468) 1,645,716 COMMITMENTS NET ASSETS: Unrestricted 1,937,576 41,670 - 1,979,2-6 Temporarily restricted 173,578 87,936 - 261,514 Total net assets 2,111,154 129,606 - 2,240,760 $ 3,503,092 $ 485,852 $ (102,468) $ 3,886,476 • EXHIBIT/ Pagel oft Ef KTR CANTER FOR MENTAL HEALTH,INC.AND SUBSIDIARY CONSOLIDATED STATEMENT OF ACTIVITIES WITH CONSOLIDATING INFORMATION FOR THE YEAR ENDED TUNE 30.2009 Ecker Center for Mental Health,Inc. Fox Valley Menial Health Foundation Consolidated 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 $ 12,400 S 98,610 $ 111,010 $ - $ - $ - $ - $ 12,400 $ 98,610 S 111,010 Other revenue 20,476 24,600 45,076 - - - 20,476 24,600 45,076 Fundraising 92,377 92,377 - - - - 92,377 - 92,377 In-kind 1,336 256,394 257,730 - - - - 1,336 256,394 257,730 Fees and grants from governmental agencies- _ Department of Human Services- Feesforservice 2,336,720 - 2,336,720 - - - - 2,336,720 - 2,336,720 Grant-in-aid 1,597,606 - 1,597,606 - - - - 1,597,606 - 1,597,606 Title XX 18,217 - 18,217 - - - - 18,217 - 18,217 Township 708 funds 95,413 61,000 156,413 - - - - 95,413 61,000 156,413 Department of Housing and Urban Development 305,307 - 305.307 - - - 305,307 - 305,307 Other governmental grants 51,000 S1,000 - 51,000 - 51,000 Other revenues- Program service fees 456,781 - 458,781 - - - - 458,781 - 458,781 Rent income 48,094 - 48.094 56,700 - 56,700 (56,700) 48,094 - 48,094 Interest income 17,387 - 17,387 1,326 - 1,326 (4,884) 13,829 - 13,829 Dividend income 2,603 - 2,603 - - - - 2,603 - 2,603 Unrealized loss on investments (31,058) - (31,658) - - - - (31,058) - (31,058) Other revenues 14,232 - 14,232 - - - - 14,232 - 14,232 Net assets released from restrictions - 476,593 (476,593) - 26,767 (26,767) - 503,360 (503,360) Total revenues,gains,and other support 5,517,4434 (35,989) 5,481,495 84,793 (26,767) 58,026 (61,584) 5,540,693 (62,756) 5,477,937 EXPENSES: Program services- Outpatient 778,814 - 778,814 - - - - 778,814 - 778,814 Psycho-social rehabilitation 251,588 - 251,588 - - - - 251,588 - 25I,588 Psychiatric emergency program 402,970 - 462,970 - - - - 402,970 - 402,970 Preadmission screening 58,199 - 58,199 - - - 58,199 - 58,199 Housing and urban development 229,824 - 229,824 38,130 - 38,130 (61,584) 206,370 - 206,370 HUD leasing 186,466 - 186,466 - - - - 186,466 - 186,466 Supervised residential 276,058 - 276,058 - - - - 276,058 - 276,038 Client transition subsidy 70,800 70,800 - - - 70,800 - 70,800 Psychiatric services 459,828 - 459,828 - - - - 459,828 - 459,828 Case coordination 551,785 - 551,785 - - - - 551,785 - 551,785 The accompanying notes are an integral part of this statement. EXHIBIT 7 Page 2 of 2 FPRFR CRNTF.R FOR MENTAL HEALTH.INC.AND SUBSIDIARY CONSOLIDATED STATEMENT OP ACTIVITIES WITH CONSOLIDATING INFORMATION FOR THE YEAR ENDED TUNE 30.2009 Ecker Center For Mental Health,Inc. Fox.Valley Mental Health Foundation ConSolidated Total _ Temporarily Temporarily Temporarily Unrestricted restricted Total Unrestricted restricted Total Eliminations Unrestricted restricted Total EXPENSES:(Continued) Program services-(Continued) Community integrated living arrangement residential $ 297,348 $ - $ 297,348 $ - S - $ - $ - $ 297,348 $ - $ 297,348 Supported residential scattered sites 118,077 - 118,077 - - - - 118,077 - 118,077 Supported residential 226,279 - 226,279 - - - - 226.279 - 226,279 Crisis Residential 482,541 - 482,541 - - - - 482,541 - 482,541 . Community counseling- Tri-Village 64,760 - 64,760 - - - - 64,760 - 64,760 - St.Charles 85,517 85,517 - - - - 85,517 - 85,517 Total program services 4,540,854 - 4,540,854 38,130 - 38,130 (61,584) 4,517,400 - 4,517,400 Supporting services Management and general 708,106 - 708.106 37,125 - 37,125 - 745,231 - 745,231 Fundraising 112,180 - 112,180 - - - 112,180 - 112,180 Total supporting services 820,286 - 820,286 37,125 - 37,125 - 857,411 - 857,411 • Total expenses 5,361,140 - 5,36I,140 75,255 - 75,255 • (61,584) 5,374,811 - 5,374,811 CHANGE IN NET ASSETS 156,344 (35,989) 120,355 9,538 (26,767) (17,229) - 165,882 (62,756) 103,126 NET ASSETS,Beginning of year 1,781,232 209,567 1,990,799 32,132 114,703 146,835 • 1,813,364 324,270 2,137,634 NET ASSETS,End of year $1,937,576 $ 173,578 $2,111,154 $ 41,670 $ 87,936 $ 129,606 $ - 51,979,246 $ 261,514 $2,240,760 • The accompanying notes are an integral part of this statement. EXHIBIT 3 1 ECKER CENTER FOR MENTAL HEALTH,_INC. AND SUBSIDIARY CONSOLIDATED STATEMENT OF CASH FLOWS WITH CONSOLIDATING INFORMATION FOR THE YEAR ENDED TUNE 30, 2009 Ecker Center Fox Valley for Mental Mental Health Consolidated Health, Inc_ Foundation Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ 120,355 $ (17,229) $ - $ 103,126 Adjustments to reconcile change in total net assets to net cash provided by(used in)operating activities: Depreciation 101,494 9,805 - 111,299 Unrealized loss on investments 31,058 - - 31,058 Bad debt expense - 26,767 - 26,767 (Increase)decrease in assets: Program service fees receivable (1,017,493) - - (1,017,493) Grants receivable 11,390 - - 11,390 Prepaid expenses and deposits (2,247) - - (2,247) . Increase(decrease)in liabilities: - Accounts payable 23,511 746 - 24,257 Accrued expenses (128,400) - - (128,400) Total adjustments (980,687) 37,318 - (943,369) Net cash provided by (used in)operating activities (860,332) 20,089 - (840,243) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (129,117) - - (129,117) Purchase of investments (2,685) - - (2,685) Net cash (used in)investing activities (131,802) - - (131,802) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments of long-term debt (46,210) (10,183) - (56,393) Payments on capital lease (17,377) - - (17,377) Capital campaign collections - 13,769 - 13,769 Net cash provided by(used in) financing activities (63,587) 3,586 - (60,001) NET CHANGE IN CASH AND CASH EQUIVALENTS (1,055,721) 23,675 - (1,032,046) CASH AND CASH EQUIVALENTS, Beginning of year 1,242,097 89,045 - 1,331,142 CASH AND CASH EQUIVALENTS, End of year $ 186,376 $ 112,720 $ - $ 299,096 SUPPLEMENTAL DISCLOSURES: Interest paid $ 68,036 $ 20,482 $ (4,884) $ 83,634 The accompanying notes are an integral part of this statement. • LULL/NIA - FCKFR CF'/TFR FOR MFNTAI.HFAI 571.1N(' P44e_L_ 2 AND FOX VALLEY MFATALlt EALTN FOL:NDAIT0.`1 9T)NSO1 Ir ATFA STATEMENT OF FIIVCTIONAt.0XPFNSFS WIT)(C(N4SDLIDATING INFORMATIMN • FOR THE YEAR SNDEDIONE30 2009 Esker timer for Modal Health,Inc. • • • Program Services Community Integrated Psychiatric Housing and Living Supposed Psycho-social emergency Preadmission Urban Supervised Client Transition Psychiatrist Case Arrangement Residential Outpatient Rehabilitation pmgrans screening Developrnent t1UD Leasing Residential Subsidy Services Coordination Residential Scattered Sites PERSONNEL,: Salaries S 397,463 $ 170.272 5 303,198 $ 45,131 5 111,575 S 37.046 $ 189,033 $ $ 162,890 $ 395,571 $ 184,294 S 29,535 Payroll taxes 22,897 11,523 21,893 3,274 7,908 2,448 17.437 - 10.803 28,536 13,293 2,251 ' 1!mpleyecs benefits b4,905 25,305 46,571 6.811 17,155 3,639 28,648 _ • 2,006 61,642 28,500 4,389 Total personnel 485,265 207.100 371,662 55,216- 136,639 45,133 231,118 - 173,701 485,799 226,087 36,173 COMMODITIES: Office supplies 5,727 3,449 2,440 - 621 6 .I.709 - 221 11.612 1,327 420 Printing and publications 446 - - - - - - 72. 149 - Pmgrain supplies 243,873 1.574. 1,184 - 2,813 3,968 1,013 - 134 - 4,030 Fond and beverages - 3,100 - _ 8,992 1.649 6,323 - - _ 11,639 - Totalconnmodides i 152,046 8,123 3,624 - 12,426 5,523 9,047 - 427 13,761 17,016 420 CO)4TRACTUAL SERVICES: Adrenising ' 22 141 93 - - - 363 - - 44 373 - Crnsvlrniion 3,934 2,366 1,769 192 944 158 1,271 - 264,093 7.738 1,254 587 Remel of equiprrxns and Mnikling 330 (913) - - 94 - i (46) - - 539 ((33) - Rental of building - - - 56.700 130,650 - - _ - _ Specific msisutax-individuals 38 34 451 . 127 335 668 70,800 ' - 6,939 10,219 77,254 Insurance 4.390 4,374 4,370 421 4,396 421 2,683 - 1,415 2,755 4,023 421 Utilities 7,848 7,489 659 659 10,102 869 5,746 - 2,396 4,793 6,376 659 Repairs and maintenance 7,936 7,168 530 440 3,796 606 6,566 - 1,603 4,370 13,789 440 Professional services - - _ - - _ - - - - Telephone 6,210 3.204 13,335 673 1.704 395 2,801 - 186 5,937 3,608 424 Postage - 20 - - - _ _ • Dues and memberships - - - - _ - - - - _ _ - Real estate taxes - - - - • _ • - - • - Outside services - 98 - - - - - - 11,384 98 - • 'total contractual services 32,948 24,181 21,427 2,383 77,863, 133,434 20,050 70,800 281,071 33,233 44,309 79,735 OTIIER EXPENSES: Interest - 3,995 3.812 333 335 335 7,974 - 1,220 2,440 - 735 Rad debt expense _ _ _ - _ - - - . Travel 4 141 3,742 24 1,469 1.832 • 193 - - 5.632 584 683 • Training and education 459 468 810 30 455 - 207 _ Special events -_ _ - _ • - - 915 797 MIsrcellanesn x 312 1,332 181 • . 99 - - . 114 460 231 223 Taal other expenses 4,770 5,773 5.068 389 2,023 2,167 8,374 - 1.404 9,447 1,612 1,241 Total expenses before depiniation 775,029 245.177 401,781 37,990 226,950 186.257 268,589 70,800 458,603 547,240 289,224 117,621 DEPRECIATION 3,785 - 6.411 1,189 209 874 209 7,469 - 1,225 4,545 8.124 456 TOTAL EXPENSES S 778,814 $ 251,588 S 402,97E3 S i 59,199 $_229,824 S 186.466 S 276,038 $ 70,803. S 459,126 S 551,785 $ 297.348 5 118.077 The accompanying notes are an integral parr of tins staterneru. RxF1(OIT A Page 2 of 2 EUXFR CFNTFR,IOR MENTAL ff.A1 TH INJ.1 AND FOX VAI I.ly MENTAL HEALTH FOIINDAIION CONSOLIDATF❑STATF.MFr4T OF FUNCIIINAL F.XPFNSFS WITH f2XVSOI MATING INFORMAIIC*1 FOR THE YEAR FNDFO IIINF 7n 21119 Ecker Center for Mental Health,Inc.-continued Fox Valley Mental Health Foundation Tout Consolidated Program Program and Program services-continued Supparriry(Services Services Supporting Services Supporting Services • Cornmuniry Counsel Services Housing and Supported Crisis Management and Urban Management and Toud Combined Residential Residential Tri-Village St.Charles Total General Fundralaing Development General Fundraising 13liminalions Expenses PERSONNEL: Salaries 5 92,491 5 347,026 S 39,502 S 54,242 S 2,559,269 S 293,902 S 51,912 $ - $ • $ • $ - 5 2,905,083 Payroll taxes 6,598 25,329 2.917 4,722 177,870 21.574 3,468 - - - - 202,912 Employees benefits 14,439 52.712 6.183 9,081 373,986 58.648 8,955 - - - 441.591 Total personnel 113.528 424,058 48,602 68,045 3,111.127 374,124 64335 - - - - . 3,549,586 COMMOD171ES: Office supplies 514 2,231 968 595 38,840 42,242 672 221 - - 81,975 Printing and publications - - 37 - 704 720 - _ - - - 1,424 Progrton supplies 2,554 609 321 321 264,316 - - - - - - 264,316 • Fond and beverages 6.955 5.345 - - 44,003 - - - - • - 44,003 Tntalcnnunoditles 10,023 8,185 1,326 916 347,863 42,962 672 - 221 - 3.91.718 CONTRACTUAL SERVICES: Advertising - 86. 49 - 1.171 2,821 807 - - - - 4,799 Consultation 859 2,412 625 702 291,141 3,095 238 - - - - 294,474 Rental of equipment and building 12 - - - (119) 2,094 - - - - 1,975 Rental ofIntilding 73.344 - 2,400 9,819 272.913 - - - - (56.700) 216.213 Specific assistance-hldividUalS 665 938 - 168.468 - - - - - - 168,468 Insurance 2.831 2,755 2,534 2,608 40,597 9,501 • - - - 50,098 Utilities 19,780 4,793 - 218 72,387 67,773 - - - • - 140,160 Repairs and maintenance 907 19,861 - 920 • 73,949 50.131 - 17.648 - - - 141.728 Professional services - - - - - - - 25.873 - 332 - - 26.205 Telephone 1,406 5,147 2,115 1,736 49,101 6,079 832 - - - - 56,012 Postage - - - - 20 3,213 2,364 - - - 5,597 Dues and memberships - - - - 7.223 455 - - - 7,678 Real estate lazes - - - - - 782 - - - 7B2 Outside services - - 6,807 - 18,387 - - - • - - 18,387 Total contractual services 99,804 35,992 14,530 16.003 988.015 178,585 4,696 17.643 332 (56,700) 1,132,576 OTHER EXPENSES: Interest - 2,440 - - 23.221 44,815 - 20,482 - - (4,884) 83,634 Bad debt expense - - - - - - - - 26,767 26,767 1'ravel 2,055 28 14 3 16,404 7,253 655 - - • - 24.312 Training and education 487 499 60 60 5,247 471 - - - - - 5,718 Special events - - - - - - 41,572 - . - - 41.572 Mirellancous 382 113 42 58. 5.637 3,992 - - - 7,629 'focal other expenses 2,924 3.080 116 121 48,5(19 56,531 42,227 20,482 26,767 - (4.884) 189,632 Total expenses before depreciation 226.279 472.315 64,574 85,085 . 4,495314 652,202 111,930 38,130 27.320 - (61,584) 5.263.512 DEPRECIATION - 10,226 186 432 43,340 55,904 230 - 9,805 - 111,299 701'41.IiX PFNSPS 3 226,279 S 482,541 $ 64,760 S 85,517 S 4,540,854 S 704,106 _$_ 112,180 $ 38,130. $ 37,125 S - $ (61,5841 $ 5,374.811 The accompanying notes pre an integral part of this statement. ECKER CENTER FOR MENTAL HEALTH INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS WITH CONSOLIDATING INFORMATION JUNE 30, 2009 (I) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF ACTIVITIES: Ecker Center for Mental Health, Inc. (the Center) and its Subsidiary are not-for-profit charitable organizations offering various psychiatric services for adults primarily in Kane and Western Cook Counties. The financial statements were available to be issued on October 23,2009, with subsequent events being evaluated through this date. The following is a brief summary of the accounting policies adopted by the Center: Basis of Consolidation- Fox Valley Mental Health Foundation (the Subsidiary) is consolidated with the Center for financial reporting purposes due to the fact it was created to support the work of the Center and that the Center, the only lessee of the Subsidiary, has guaranteed the mortgage of the Subsidiary. Basis of Accounting- The Center records its financial transactions and maintains its books and records on the accrual basis of accounting which recognizes revenue as it is earned and expenses as they are incurred. Cash and Cash Equivalents - The Center considers all highly liquid investments with a maturity of three months or less to be cash equivalents. Credit Risk- Financial instruments, which potentially subject the Center to concentrations of credit risk, consist principally of cash. The Center places its cash and deposits with high credit quality financial institutions; however, deposits may exceed the federally insured limits from time to time.. Accounts Receivables - Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Center establishes 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. • -2- (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF ACTIVITIES: (Continued) 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 using 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 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 consolidating 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. Support- Contributions received and unconditional promises to give are measured at their fair values and are reported as an increase in net assets. The Center reports 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 consolidating 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 reports 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 reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. i -3 - (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF ACTIVITIES: (Continued) Use of Estimates - The preparation of consolidating 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 consolidating 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 various programs and supporting services has been summarized on a functional basis in the consolidating statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. (2) INVESTMENTS: Investments of the Center are carried at fair value and at June 30, 2009 are summarized as follows: Fair Value Cost Total mutual funds $ 118,606 $ 14,117 Total investment return consists of the following for the year ended June 30, 2009: Dividend income $ 2,603 Unrealized loss on investments (31.058) Total investment return $ 12.8,455) (3) FAIR VALUE MEASUREMENTS: Effective May 1,2008,the Center adopted Financial Accounting Standards Board Statement No. 157,Fair Value Measurements(FASB 157). :PASS 157 establishes a single definition of fair value and a framework for measuring fair value, sets out a fair value hierarchy to be used to classify the source of information used in fair value measurement and expands disclosures about fair value measurements required under other accounting pronouncements. It does not change existing guidance as to whether or not an instrument is carried at fair value. FASB 157 established market and observable inputs as the preferred source of values, followed by assumptions based on hypothetical transaction in the absence of market inputs. -4- f3) FAIR VALUE MEASUREMENTS: (Continued) The valuation techniques required by FASB 157 are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Center's market assumptions. These two types of inputs create the following fair value hierarchy. Level 1 -Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs reflect management's own assumptions about the assumptions a market participant would use in pricing the asset or liability. This includes certain pricing models,discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at June 30,2009 and 2008. Mutual Funds: Valued at the net asset value(NAV)of shares held at year end. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Center believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table sets forth by level,within the fair hierarchy,the Center's assets at fair value: Assets at Fair Value as of June 30,2009 Description Level 1 Level 2 Level 3 Total Mutual funds S I1$,606 $ _ - $ - S_,_11_$r606 - 5 - (4). PLEDGES RECEIVABLE: Unconditional promises to give which approximate fair market value as of June 30, 2009 are due as follows: Amounts due in: Less than one year $ 31,837 One to five years 30.709 Total unconditional promises to give 62,546 Less allowance for uncollectible promises receivable (17,400) $ 45.146 There were no conditional promises to give at June 30, 2009. (5) RELATED PARTY TRANSACTIONS: r' The Subsidiary entered into an agreement to lease a facility to the Center at a monthly rental 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 Subsidiary as of June 30, 2009. 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 Subsidiary to the Center was $4,884 for the year ended June 30, 2009. (6) 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 Subsidiary 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. In accordance with FSP 48-3, the Center has elected to defer the implementation of FIN 48, Accounting for Uncertainty in Income Taxes. The Center continues to follow the guidance included in FASB Statement No.5,Accounting for Contingencies, - 6- (7) COMMITMENTS 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 $6,112 with various expiration dates through March, 2010. One of the leases for$802 a month does not have a determined end. The terms of the lease agreements require the Center to be responsible for utilities, general maintenance, and public liability insurance. The Center also leases a facility from the Subsidiary, which requires a monthly rental payment of$4,725. The lease is renewed every year for one year. The Center Ieases various apartment units on a month-to-month basis 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 leases as of June 30, 2009 are summarized as follows: For the Office Equipment Year Ending Space Rental Total 2010 $ 112,908 $ 1,548 $ 114,456 2011 - 1,548 1,548 2012 - 1,548 1,548 2013 - 1,548 1,548 Total $__112.,908 $ 6,192 $ 119,100 Total rental expense for the year ended June 30, 2009 was $274,888. Capital Leases— The Center has a capital lease for equipment. The lease agreement contains a bargain purchase option at the end of the lease term. -7- (7) COMMITMENTS AND CONTINGENCIES: (Continued) Capital Leases - (Continued) The following is an analysis of the leased asset included in equipment: Equipment $ 52,000 Less -Accumulated depreciation (34,667) $ 17,333 The following is the future minimum payment, due in the next fiscal year, required under the lease together with the present value as of June 30, 2009: Year ending June 30, 2010 $ 19,117 Less - Amount representing interest (699) Present value of minimum lease payments $ 18.418 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. (8) 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, 2009 are as follows: 2010 $ 10,875 2011 4,433 Total $ .15,308 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. - 8- (9) NOTES PAYABLE: Notes payable at June 30, 2009 consisted of the following_ Center- • Payable hi monthly installments of$6,891., principal and interest, bearing interest at 5.90%, due in November, 2013, and secured by land and a building. $ 945,500 Payable in monthly installments of$2,034, principal and interest, bearing interest at 5.6%, due in January, 2016, and secured by land and a building. 132,664 Subsidiary- Payable in monthly installments of$2,148, principal and interest, bearing interest at 5.99%, due in May, • 2011, and secured by land and a building. 252.312 Total $ 1,330)470 Principal payments due on long-term debt during each of the next five fiscal years are as follows: Year ending June 30 Center Subsidiary Consolidating 2010 $ 43,707 $ 10,172 $ 53,879 2011 46,240 242,140 288,380 2012 48,920 48,920 2013 51,755 - 51,755 2014 849,696 - 849,696 Thereafter 37,846 - .37.846 Total $ 1.078,164 $ . 252,312 $ 1,330,476 (10) LINE OF CREDIT: 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 as of June 30, 2009. -9 - (11) 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 -Less than 3 2.5% 3 - Less than 6 4.0% 6- Less than 10 5.5% l0 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, 2009 was$107,238. (12) TEMPORARILY RESTRICTED NET ASSETS: Temporarily restricted net assets relate to time restrictions related to pledges receivable for the period after June 30, 2009 as follows: Center Subsidiary Total $ 173,578 $ 87,936. (13) CONCENTRATIONS: The Center maintains its cash accounts in financial institutions located in Elgin, Illinois. The bank balances at each institution are insured up to $250,000 by the Federal Deposit Insurance Corporation. Bank balances periodically may exceed federally insured limits from time to time. Approximately 72% of the Center's funding for year ended June 30, 2009 was provided by grants from the Illinois Department of Human Services, • The Ecker Center for Mental Health has never received funding from ACORN. x Karen Beyer Executive Directort 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 this 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 this 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 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 fmanced 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 Community Development Department within ten(10) days after receiving notice under subparagraph (D)(2) from an employee or otherwise receiving actual notice of such conviction; (F) Taking one of the following actions, within 30 days of receiving notice under subparagraph(D)(2),with respect to any employee who is so convicted: (1) Taking appropriate personnel action against such an employee, up to and including termination; or (2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State,or local health,law enforcement,or other appropriate agency; (G) Making a good faith effort to continue to maintain a drug-free workplace through 16 implementation of paragraphs(A),(B),(C),(D),(E)and(F). 11. It has adopted and is enforcing a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations. 12. In regards to lobbying,the SUB-RECIPIENT certifies: (A) No Federal appropriated funds have been paid or will be paid, by or on behalf of the SUB-RECIPIENT, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement,and the extension,continuation,renewal,amendment, or modification of any Federal contract,grant,loan,or cooperative agreement. (B) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency,a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying,"in accordance with its instructions. (C) The SUB-RECIPIENT shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants,loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352,title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than$10,000 and not more than$100,000 for each such failure. 17 EXHIBIT C EQUAL EMPLOYMENT OPPORTUNITY CERTIFICATION Community Development Block Grant Program City of Elgin The undersigned understands and agrees that it is a SUB-RECIPIENT of the Community Development Block Grant Program of the CITY. 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 and HUD, 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,HUD,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,HUD, and the Secretary of Labor such information as they may require for the supervision of such compliance, and will otherwise assist the CITY and HUD 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 or HUD. (7) In the event that SUB-RECIPIENT fails or refuses to comply with the undertaking, the CITY, or HUD may take any or all of the following actions: cancel, terminate or suspend, in whole or in part, this grant, refrain from extending any further assistance to the SUB-RECIPIENT until satisfactory assurance of future compliance has been received; and refer the case to HUD for appropriate legal proceedings. 18 SUB-RECIPIENT: Ecker Center for Mental Health 1845 Grandstand Place,Elgin,Illinois 60123 BY: Karen Beyer,Executive Director DATE: ATTEST: 19 i i ELG1N THE CITY IN THE StUE3UPE3S- DATE: June 16, 2011 TO: Denise Momodu, Associate Planner FROM: Jennifer Quinton, Acting City Clerk SUBJECT: Resolution No. 11-97, Adopted at the June 8, 2011, Council Meeting Enclosed you will find the agreement listed below. Please distribute this agreement to the other party and keep a copy for your records if you wish. 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. • Resolution 11-97 Adopted Authorizing Execution of a Community Development Block Grant Sub-Recipient Agreement with Ecker Center for Mental Health, Inc.