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HomeMy WebLinkAboutVILLAGE BOARD - 12/20/1962 - VILLAGE BOARD i MINUTES OF THE REGULAR MEETING OF THE PRESIDENT AND BOARD OF TRUSTEES i OF THE VILLAGE OF ELK GROVE VILLAGE HELD ON DECEMBER 20, 1962 President James R. Gibson called the meeting to order at 8:15 PM in the Municipal Building in said Village and directed the Village Clerk to call the roll. Upon the roll being called the following Trustees answered "FRE=ENT" - Francis J. j Dillon, Eugene V. Keith, Jack D. Pahl, Charles P. Smith, James R. Young, Charles J. Zettek, Jr. ; "ABSENT" - none. ! I It was moved by Trustee Dillon and seconded by Trustee Young that the minutes of I the regular meeting of December 13, 1962 be approved as submitted and that the Board dispense with the reading thereof. The motion was voted upon by acclamation; whereupon the President declared the motion carried. President Gibson requested the approval of the Board in departing from the agenda to take up a matter of new business. There being no objections, he called on Mr. John Black of Alvord, Burdick & Howson, to report to the Board regarding the feasibility report for the acquisition of the Elk Grove Water and Sewer Co. Mr. Black said that they have submitted a complete report to the Village Board on the feasibility of public acquisition of the Water Company and summarized the results by stating that they were concerned primarily with two points : first, whether the water and sewer company is worth the negotiated price, and second, whether or not municipal ownership is feasible. Mr. Black said that the answer to both questions is yes; the properties are worth in excess of the negotiated price and that, after careful study, the Village can support a 30 year revenue bond issue with adequate debt coverage, and at a reasonable going rate i of interest. Mr. Black also stated that the most important element in paying the debt is the growth of the Village, and the growth is necessary to support the bond issue; they are of the opinion that the growth is assured; that there is enough undeveloped acreage to support the issue. Mr. Black further stated that the conclusions presented in their engineering report are reported conservatively. It was moved by Trustee Pahl and seconded by Trustee Dillon that the Board adopt I Resolution No. 29-62 entitled "A RESOLUTION APPROVING THE VILLAGE ENGINEER'S REPORTS COIUERNING APPRAISAL AND FEASIBILITY OF PUBLIC ACQUISITION OF THE ELK GROVE WATER AND SEWER COMPANY, INC." IThe above resolution was read aloud by the Clerk. I The President directed the Clerk to call the roll on the motion and upon the roll being called the following Trustees answered "AYE" Dillon, Keith, Pahl, Smith, Young, Zettek; "NAY" - none; "ABSENT" - none. Whereupon the President declared the motion carried, and directed that the Engineer's Report be placed on file with the Village Clerk. Attorney Hofert stated that the negotiated price of $3,350,000 was achieved through a long period of negotiation. (At this point, Mr. Black pointed out that the replacement cost of the water and sewer system is $4,900,000.) Attorney Hofert then read a letter dated December 20, 1962 directed to the President and Board of Trustees relative to the acquisition of the properties of the Elk Grove Water and Sewer Co., said letter being attached hereto and made a part of these official minutes. The Clerk read a proposed resolution entitled "A RESOLUTION AUTHORIZIG AN AGREEMENT BETWEEN THE VILLAGE OF ELK GROVE VILLAGE AND THE ELK GROVE WATER AND SEWER CO. , INC. RELATING TO THE ACQUISITION OF THE WATER AND SEWER UTILITY PROPERTIES OF SAID COMPANY BY THE VILLAGE OF ELK GROVE VILLAGE, " together with I the attached agreement which was made a part thereof. It was moved by Trustee Pahl and seconded by Trustee Dillon that the Board adopt Resolution No. 30-62 entitled "A RESOLUTION AUTHORIZING AN AGREEMEgT BETWEEN THE VILLAGE OF ELK GROVE VILLAGE AND THE ELK GROVE WATER AND SEWER COMPANY, INC. RELATING TO THE ACQUISITION OF THE WATER AND SEWER UTILITY ! PROPERTIES OF SAID COMPANY BY THE VILLAGE OF ELK GROVE VILLAGE". The President Idirected the Clerk to call the roll on the motion and upon the roll being called the following Trustees answered "AYE" - Dillon, Keith, Pahl, Smith, Young, Zettek; "NAY" - none; "ABSENT" - none. Whereupon the President declared the motion carried. l Reg. 12-20-62 ! i The Clerk read a proposed resolution entitled "A RESOLUTION AUTHORIZIN AN AGREEMENT BETWEEN THE VILLAGE OF ELK GROVE VILLAGE AND CENTEX CONSTRUCTION CO. , Ihrl. , AND GREAT NORTHERN DEVELOPMENT COMPANY AND VALE DEVELOPMENT COMPANY", together with the attached agreement which was made a part thereof. President Gibson noted that the annexation referred to in the above proposed i resolution and agreement concerns apprcximately 1,000 acres lying west of Route 53. It was moved by Trustee Pahl and seconded by Trustee Dillon that the Board adopt Resolution No. 31-62 entitled "A RESOLUTION AUTHORIZING AN AGREEMENT BETWEEN THE VILLAGE OF ELK GROVE VILLAGE AND CENTEYF CONSTRUCTION CO. , INC. , AND GREAT NORITERN DEVELOPMENT COMPANY AND VALE DEVELOPMENT COMPANY". The President directed the Clerk to call the roll on the motion ar.-I upon the roll being called the following Trustees answered "AYE" - Dillon, Keith, Pahl, Smith, Young, Zettek; "NAY" - none; "ABSENT" - none. Whereupon the President declared the motion carried. i Attorney Hofert said that the proposed bond ordinance has been approved by Mr. l Amos Watts of Chapman & Cutler, bond attorneys whose reputation is similar to that of the Chicago Title & Trust Co. ! Mr. Paul Speer, Financial Consultant to the Village, in order to explain the legal phase of the bond ordinance, read a report to the President and Board, dated December 20, 1962, which report is attached hereto and made a part hereof and incorporated by reference. It was moved by Trustee Dillon and seconded by Trustee Zettek that the Board waive the first reading rule with respect to an ordinance entitled "AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUE OF $4,000,000 WATERWORKS AND SEWERAGE REVENUE BONDS, SERIES 1963, OF THE VILLAGE OF ELK GROVE VILLAGE, COOK AND DU PAGE COUNTIES, ILLINOIS, AND PROVIDING FOR PAYING THE PRINCIPAL AND INTEREST OF SAID BONDS AND THE OPERATION AND MAINTENANCE OF THE WATERWORKS AND SE14ERAGE SYSTEM AND PROVIDING OTHER FUNDS THEREFOR." The President directed the Clerk to call I the roll on the motion and upon the roll being called the following Trustees answered "AYE" - Dillon, Keith, Pahl, Smith, Young, Zettek; "NAY" - none; "ABSENT" - none. Whereupon the President declared the motion carried. The Clerk read the above ordinance. I It was moved by Trustee Pahl and seconded by Trustee Dillon that the Board adopt Ordinance No. 263 entitled "AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUE OF $4,000,000 14ATERWORKS AND SEWERAGE REVENUE BONDS, SERIES 1963, OF THE VILLAGE OF ELK GROVE VILLAGE, COOK AND DU PAGE COUNTIES, ILLINOIS, AND PROVIDING FOR ' PAYING THE PRINCIPAL AND INTEREST OF SAID BONDS AND THE OPERATION AND MAINTENANCE OF THE WATERWORKS AND SE?-JERAGE SYSTEM AND PROVIDING OTHER FUNDS THEREFOR" . The i President directed the Clerk to call the roll on the motion and upon the roll being called the following Trustees answered "AYE" - Dillon, Keith, Pahl, Smith, Young, Zettek; "NAY" - none; "ABSENT" - none. Whereupon the President declared j the motion carried. Attorney Hofert distributed copies of a proposed ordinance amending the Subdivi- sion Control Ordinance. The Clerk read the above proposed ordinance. It was moved by Trustee Dillon and seconded by Trustee Young that the Board waive j the first reading rule with respect to an ordinance amending Section 8.005 of I the Municipal Code regarding water and sewer facilities. The motion was voted upon by acclamation; whereupon the President declared the motion carried. It was moved by Trustee Pahl and seconded by Trustee Dillon that the Board adopt Ordinance No. 264 entitled "AN ORDINANCE AMENDING SECTION 8.005 OF THE MUNICIPAL CODE OF ELK GROVE VILLAGE PROVIDING FOR AVAILABILITY OF AND CONNECTION TO VILLAGE WATER AND SEWER FACILITIES" . I President Gibson summarized the contents of the above ordinance by stating that it 1 provides that subdividers and developers shall donate all additional mains and transmission-lines- necessary to the water and sewer system and further provides for inspection fees not to exceed $25.00 per lot. The President directed the Clerk to call the roll on the motion and upon the roll being called the following Trustees answered "AYE" - Dillon, Keith., Pahl, Smith, I Young, Zettek; "NAY" - none; "ABSENT" - none. Whereupon the President declared the motion carried. I -2- Reg. 12-20-62 �I (as amended) 1 I The Clerk read a proposed resolution entitled "A RESOLUTION AUTHORIZING AN AGREE14ENT BETWEEN THE VILLAGE OF ELK GROVE VILLAGE AND CENTEX CONSTRUCTION CO. , IAt. , AND GREAT NORTHERN DEVELOPMENT COMPANY AND VALE DEVELOP14ENT COMPANY", together with the attached agreement which was made a part thereof. I Presidedt Gibson noted that the annexation referred to in the above proposed resoluti\ n and agreement concerns approxi-mately 1,000 acres lying west of Route 53. I i It was move by Trustee Pahl and seconded by Trustee Dillon/otion Board adopt Resolution N 31-62 entitled "A RESOLUTION AUTHORIZING AN BETWEEN THE VILLAGE OF EL GROVE VILLAGE AND CENTEX CONSTRUCTION CO. IGREAT NORTHERN DEVELOPMENT CO ANY AND VALE DEVELOPMENT COMPANY" . The Prerected the Clerk to call th roll on the motion and upon the roll beinthe following Trustees answered "AYE" - Dillon, Keith, Pahl,. Smith, Young "NAY' - none; "ABSENT" - n e. Whereupon the President declared thcarried. Attorney Hofert said hat the proposed bond ordinance has bved by Mr. I Amos Watts of Chapman Cutler, bond attorneys whose reputation is similar to that of the Chicago Tit e & Trust Co. Mr. Paul Speer, Financial onsultant to the Vill/dinante der to explain the legal phase of the bond 'or 'nance, read a reportesident and Board, dated December 20, 1962, whi h report is attachend made a part hereof and incorporated by reference It was moved by Trustee Dillon nd seconded by Ttek that the Board waive the first reading rule wit respect to anentitled "AN ORDINANCE AUTHORIZING ANDPROVIDING FOR ISSUE OF $4,0/0,000 WATERWORKS AND SEWERAGE REVENUE BONDS, SERIES 1963, OF T VILLAGE OF K GROVE VILLAGE, COOK AND DUPAGE COUNTIES, ILLINOIS, AND PROVIDING R PAYING PRINCIPAL AND INTEREST OF SAID BONDS AND THE OPERATION AND MAINTEN CE OF WATERWORKS AND SEWERAGE SYSTEM AND PROVIDING OTHER FUNDS THEREFOR." The tion was voted upon by acclamation; whereupon the President declared the otio carried. The Clerk read the above ordinance. i� i It was moved by Trustee Pahl and seco e by Trustee Dillon that the Board adopt Ordinance No. 263 entitled "AN ORDINE UTHORIZING AND PROVIDING FOR THE ISSUE OF $4,000,000 WATERWORKS AND SEWERAG REVE E BONDS, SERIES 1963, OF THE VILLAGE l OF ELK GROVE VILLAGE, COOK AND DU P GE COU IES, ILLINOIS, AND PROVIDING FOR PAYING THE PRINCIPAL AND INTEREST F SAID BO S AND THE OPERATION AND MAINTENAiiT E i OF THE WATERWORKS AND SEWERAGE SY TEM AND PRO IDING OTHER FUNDS THEREFOR." The President directed the Clerk to all the roll n the motion and upon the roll being called the following Trus ees answered " " - Dillon, Keith, Pahl, Smith, Young, Zettek; "NAY' - none; " SENT" - none. ereupon the President declared 1 the motion carried. Attorney Hofert distributed copies of a proposed dinance amending the Subdivi- sion Control Ordinance. The Clerk read the above roposed ordinance. It was moved by Trustee Dillon and seconded by Truste Young that the Board waive the first reading rule with respect to an ordinance am nding Section 8.005 of the Municipal Code re arding water and sewer facilities The motion was voted upon by acclamation; hereupon the President declared t motion carried. It was moved by Tr tee Pahl and seconded by Trustee Dill n that the Board adopt Ordinance No. 264 ntitled "AN ORDINANCE AMENDING SECTION .005 OF THE MUNTICIPAL CODE OF ELK GROVE VILLAGE PROVIDING FOR AVAILABILITY OF A CONNECTION TO VILLAGE IWATER AND SEWER ACILITIES." I i President Gibs summarized the contents of the above ordinan e by stating that it provides t t subdividers and developers shall donate all a ditional mains I and transmiss on lines necessary to the water and sewer system nd further I provides for inspection fees not to exceed $p25.00 per lot. The Presid t directed the Clerk to call the roll on the motion d upon the roll 'I being called the following Trustees answered "AYE" - Dillon, Keith Pahl, Smith, Young, Zettek; "NAY" - none; "ABSENT" - none. Whereupon the Presid nt declared Ithe motion carried. i -2- Reg. 12-20-62 I __ + President Gibson thanked Messrs. Speer and Black for the tremendous amount of work on their part in helping the Board arrive at the point at which a decision I could be reached. A vote of thanks was voiced by Trustees Pahl and Dillon to President Gibson for his time and effort spent in connection with the acquisition. I The following report was given by President Gibson: I 1. Referred to the Judiciary and Planning Committee a tentative draft, prepared by the Illinois Municipal League, of a bill to permit two or more municipalitlez to establish a commission for the collection and disposal of garbage, rubbish, etc. , and requested a written report. 2. Referred to Trustee Pahl a request from the Sheriff's Office of Cook County for a copy of criminal ordinances and laws in effect in Elk Grove Village. i 3. Requested that Trustee Zettek and Chief Clifford attend a meeting with him of the Governor's Official Traffic Safety Coordinating Committee at 9:30 AM January 17th, at the Park Ridge Inn. I 4. Reported that on January 16th, 8 PM, there will be a meeting of representa- tives of thirteen sister communities, C. D. and Police personnel and 'hospital representatives to discuss disaster plans for the area, and requested that Trustee Zettek, Chief Clifford, Chief Haar and C. D. Director Boyce attend this meeting to be held at Maine Township High School West, Des Plaines. 5. Regarding the relocation of Irving Park Road, stated that the only information in the office of the State District Engineer is that contained in a plan sent them by William E. Downes, Jr. , Commissioner of Aviation, O' Hare Field; and that he has asked Commissioner Downes to see and discuss this plan. President Gibson also said that he is calling a Special Meeting for January 4, 1963 at 8 PM for the purpose of answering questions of anyone in attendance and I repeating the information that has been referred to this evening, and urged all I interested citizens to attend. The President also said that a Press Conference has been scheduled for 2 PM, Friday, December 21st to answer any questions from News Reporters concerning the acquisition. Regarding fire protection for Branigar Estates, Attorney Hofert reported that he has contacted Mr. Schultz who will check into this to see why nothing has been done. I ! Fire Chief John Haar read a report of the Fire Department for the month of I November 1962. (This report will be on file in the Clerk's Office.) I, Chief Haar reported that Mr. Donald Rons, Sola Electric Co., is the only person in the Industrial Park who has exhibited an interest in the establishment of an Auxiliary Fire Force from the Industrial Park, and that as soon as he can reach others, plans can then be made. IPresident Gibson said that mention was again made at a meeting of the Industrial Park Association on December 11th as to the formation of such an Auxiliary Force, and he suggested to Chief Haar that a letter be sent to all industrial plants and I. then follow up with a call since it would be impossible to get them all together at one time. I Trustee Smith presented 39 invoices for a total payment of $13,335.24 from the General Corporate Account. (Itemization will be on file in the Clerk ' s Office. ) It was moved by Trustee Smith and seconded by Trustee Keith that the Board authorize the disbursement of $13,335.25 from the General Corporate Account for the payment of the 39 invoices presented. The President directed the Clerk to call the roll on the motion and upon the roll being called the following Trustees answered "AYE" - Dillon, Keith, Pahl, Smith, Young, Zettek; "NAY" - none; "ABSENT" - none. Whereupon the President declared the motion carried. It was moved by Trustee Smith and seconded by Trustee Zettek that the Board authorize an expenditure not to exceed $2,000 for the hiring of an employee to maintain and supervise the ice skating rinks in the Village and to supervise ' an after-school program until May 1963, these funds to be expended by the lPlayground and Recreation Board. IIn answer to Trustee Dillon' s question regarding maintenance, Trustee Young said that the intent is to have someone take over after the ice skating rink has been I installed. Mr. Morita, Chairman of the Youth Advisory Committee, said that -3- Reg. 12-20-62 basicly the funds are for supervision at the rinks, and if necessary for maintenance, such as resurfacing rinks, details to be in the hands of the Playground and Recreation Board. The President directed the Clerk to call the roll on the motion and upon the roll being called the following Trustees answered "AYE" - Dillon, Keith, Pahl, Smith, Young, Zettek; "NAY" - none; "ABSENT" - none. Whereupon the President I declared the motion carried. 1 Trustee Pahl requested that the following items be removed from the agenda of the Judiciary and Planning Committee until February: Recommendation regarding '^ the amount of bonds for licensees and permittees and a report on a sample solicitors ordinance. I I Trustee Keith reported that he felt it wasn' t feasible to arrange a meeting with State Representatives and Senators due to the holidays being so near and other i Village business at hand, and suggested, that since the legislators will be going to Springfield after the first of the year, that someone be assigned to meet and discuss with one of the legislators any specific area of interest, or write them. Attorney Hofert said that is possible that meetingswith the legislators might be arranged over a week end when they return to their homes from Springfield. A meeting of the Board was scheduled for 7 PM December 27, 1962 to discuss the recommendations of the Fire Department for new officers for 1963; and at 7:30 PM Ito meet with Mr. Scherrer, Grove Taxi Service. i The Clerk read a letter dated December 18, 1962 from Mr. Evan W. Stebbins, Real 1 Estate Manager, Centex Construction Co. , Inc. , reporting that construction of I pavement, curb and gutters, sidewalks and storm drainage has been completed on Biesterfield Road, from Elk Grove Boulevard on the east, to the west side of the bridge over Salt Creek, and that said construction is guaranteed for one year from above date against faulty workmanship and materials, exclusive of ordinary wear and tear and that Centex Construction Co. agrees to provide the Village with a maintenance bond when the Village has accepted this area for permanent maintenance. I i This was referred to the Village Engineer with the request for a recommendation Ias to the size of the bond as well as verification of the completion of the work. I The Clerk read a Holiday greeting card and note to the Village Board from Frank I Scharringhausen thanking them for the reception on November 10th for Mr. 111 Scharringhausen and former Trustee Hartshorn at which time plaques were presented to each acknowledging recognition of services rendered during their terms of Soffice. I The Clerk reported receipt of notice from the State Division of Highways of Motor Fuel Tax Allotment in the amount of $5,507.99 for the month of November 1962. I i Trustee Dillon reported that the Euclid Division of General Motors has requested a variance from the Sign Ordinance to permit them to erect a 32 sq. ft. sign at their property at 2001 Pratt Blvd. , that this sign is standard identification for I Euclid dealers throughout the country, and they base their petition on the I financial burden it would create to have the sign face redesigned and remanufactured. ' Trustee Dillon said that the ordinance (present and proposed) limits the size of the panel on signs to 24 sq. ft. , and that he could see no objection provided they observed the proper safety precautions, and it was his recommendation that the IBoard grant the request. In answer to Trustee Young' s question, Trustee Dillon stated that the sign would I be mounted on steel piling. Trustee Zettek questioned whether or not the Board would be setting a dangerous precedent in granting this request. In reply to this, Attorney Hofert stated that the purpose of the ordinance is to set standards. If the situation which presents itself is unique or particular, a variance could be granted without too much damage to the ordinance; the question to consider is whether you have a situation in which there is a hardship. ' -4- Reg. 12-20-62 I -- I It was moved by Trustee Dillon and seconded by Trustee Young that the Board allow the Euclid Division of General Motors to erect a 4 x 8 ft. sign on their property i as requested in their letter of December 4, 1962. The President directed the Clerk to call the roll on the motion and upon the roll being called the following Trustees answered "AYE" - Dillon, Keith, Pahl, Young; "NAY" - Smith, Zettek; "ABSENT" - none. Whereupon the President declared the motion carried. I Regarding stop signs at streets intersecting Arlington Heights Road, Chief Clifford reported that all such streets have stop signs except Shelley Road. I During discussion, Chief Clifford said that violations occurring at streets intersecting Arlington Heights Road are prosecuted through the State. ti Attorney Hofert stated that as a general rule it is a good idea and a matter of ` convenience to have all stop streets clearly set forth in one ordinance. It was moved by Trustee Young and seconded by Trustee Keith that the Attorney be directed to draft the necessary ordinance covering all streets entering upon Arlington Heights Road, within the Village limits, and that same be posted with stop signs. The motion was voted upon by acclamation; whereupon the President declared the motion carried. It was moved by Trustee Young and seconded by Trustee Pahl that the meeting be adjourned. The motion was voted upon by acclamation; whereupon the President declared the motion carried, and the meeting adjourned at 9:55 PM. I ti Eleanor G. Turner ` Village Clerk I Approved: IJ' es -R. Gibson I President I i I I I ` I I I 1 1 I 1 i -5- Reg. 12-20-62 I I I I V l '.Y I I EDWARD C. HOFERT ATTORNEY AT LAW 77 WEST WASHINGTON STREET CHICAGO 2, ILLINOIS TELEPHONE RANDOLPH 6-8766 RES. CL 5-0807 December 20, 1962 President and Board of Trustees Village of Elk Grove Village Illinois Questions Relating to the Acquisition i of the Properties of the Elk Grove ' Water and Sewer Company by the Village Gentlemen: 'I Please be advised that I have examined the agreement between the Village of Elk Grove Village and the Elk Grove Water and Sevier Com- pany, as well as an agreement between the Village of Elk Grove Village, Centex Construction Company, Great Northern Development Company and Vale Development Company. In my opinion, when such j documents are executed the same will constitute legally binding Iobligations on all parties signatory thereto and that the same are i within the corporate powers of the Village and the respective com- panies to execute. 't I have also examined the $k,000",000 Revenue Bond Ordinance and the Ordinance modifying the Subdivision Control Ordinance, and that the same will be legally binding upon their adoption and are good and valid ordinances. In addition, I have examined other documents which are either re- ferred to in any of the documents aforementioned or important i thereto and that, in my opinion, the foregoing agreements and ordinances truly and accurately reflect the oral opinions of all l parties concerned and afford the Village adequate protection necessary to the acquiring and operating of said facilities con- sistent with the necessary provisions insisted upon by the parties Iconcerned. The following protective features contained in the above agree- ments and ordinances should be noted: I - l I i I i II l • s iJ I , • I I I I I esident and Board of Trustees - 2 December 20, 1962 M 1. The agreement between the Village and the Elk Grove Water and Sewer Company is effective only provided $4,000,000 in financing-:is provided through the Bond Ordinance aforementioned and that if such financing is not available then such contract, as well as the other noted above, is null and void at the option of the Village. 2. The Village shall receive and the Company shall l transfer good and merchantable title to the properties of the Elk I Grove Water and Sewer Company and sufficient cautionery provisions have been made in this regard. I i 3. The Village is obligated to repay the aforementioned Revenue Bonds to be issued from revenues derived from the opera- tion of .the system and does not in any way pledge or obligate its Igeneral credit or corporate funds . -< 4. The Company has agreed to annex property which it owns west of the present limits of the Village, utilize Village water and sewer, install and donate necessary mains , and agrees I not to compete with the Village within its limits or within 1i ! miles without its limits, This provision insures as far as pos- sible, the steady and necessary growth of the system and affords the Village as much protection as can be reasonably afforded to it to guarantee said growth. Sin rely, J I i Village Attorney i 1 I ECH:MMS 1 I , I I i I 1 PAUL D. SPEER MUNICIPAL FINANCE CONSULTANT FINANCIAL 6-0858 AREA CODE 312 '//j/,//�/ /L✓G�i -!` J/GGUi20CD December 20, 1962 President and Board of Trustees Village Hall Elk Grove Village, Illinois .1 Gentlemen: Since our employment by your Village in connection with the proposed ac- quisition of the waterworks and sewerage system, we have been furnished from time to time with the reports of the company; with a preliminary report from your engi- neers, Alvord, Burdick & Howson; with estimated revenues and projections of the system furnish by Duff & Phelps, the engineers for the company; with a preliminary summary report of Alvord, Burdick & Howson; and, with a copy of the proposed acqui - sition agreement between the Village and the Elk Grove Water and Sewer Company, Inc. We have discussed the Bond Ordinance with your attorney and with your bond attorneys, Chapman and Cutler. We have prepared an estimate of the funds required for acquisition under the terms of the contract which will require the issuance of $4,000,000 Waterworks and Sewerage Revenue Bonds. Based upon that amount and upon the preliminary estimates of Alvord, Burdick & Howson, we recommended the maturities to be designated in the Bond Ordinance and the provision for the flow of funds and Iestablishment of reserves. We also recommended the provisions in the Bond Ordinance which would provide for additional borrowing, if necessary, to expand, improve and extend the system. We have also seen the terms of the proposed amendment to the Ir-\ subdivision ordinance regarding installation of distribution system facilities by Ithe developers and the imposition of tap-on and connection charges. j We understand that no Rate Ordinance has yet been prepared, but it is also our understanding and that of the engineers that the rates established for the use I of the systems will be those presently established by the company, with the excep- tion that there will be no charge to the Village for fire hydrant rental or for water and sewer services. The engineers have based their projections upon the l continuation of these rates and elimination of the fire hydrant rental . We have arbitrarily estimated an average interest coupon rate of 4%, which we believe under present market conditions and the maturity schedule shown is realistic and should be achieved. Any extension of maturities would probably be the cause of increasing the coupon rate. There is also an allowance of not exceeding 2% of the amount of the bond issue as discount on the bonds which, in computing the net interest cost of the Village, will be added to the interest established by the coupon rates bid at the I sale as an additional item of interest. This is a normal procedure in revenue p, o m ro o, m V N N N N N N N N N N N N N N N N N N N N N N N N N N N —' i O 0 0 (z, 0 0 0 0 0 0 C) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n IL O 0 0 0 0 0 0 0 0 0 0 0 0 0 Cc0 0 0 0 0 0 0 0 0 0 0 0 0 0 Q n O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 0 0 0 6 0 0 0 0 0 0 0 0 0 0 (D 0 7 7 i' t-t V) V N N N N N N N N N N N N N N N „ � 07.v V_n w %_0 O lD V a W N wwwww �;Z1 o — W N OCnCn -,IwCO 00 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 i O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C, 0 0 0 0 0 0 0 0 0 0 i