november 2017 report to the board of...

College

Report to the

Board of Trustees

Lake County.

Community College District 532

Grayslake, Illinois

November 21, 2017

Mission

The College of Lake County is a comprehensive community college that delivers high quality, accessible learning opportunities to advance student success and strengthen the diverse communities we serve.

Goals and Objectives

Advance student learning, success and completion.The college will help students identify and work toward their educational goals and prepare them to participate in the workforce.

Maximize educational opportunity and equity in student outcomes. The college will enhance, develop and promote educational opportunities and work to increase enrollment and external partnerships.

Promote excellence in the areas of Diversity, Global Engagement, Sustainability, and Wellness as strengths within the college and Lake County community. The college will strive to build an inclusive community that recognizes, values and respects people of all cultures and ways of life while cultivating social justice, global citizenship and environmental responsibility

Enable a culture of innovation, excellenceand continuous improvement. The college will promote employee engagement to create and sustain a culture of high performance, intellectual growth, collaboration and innovation that supports continuous improvement of academic programs and college processes.

Values

We hold these values to be the cornerstone to fulfilling the College’s mission.

Learning: Compels us to create an atmosphere of academic excellence and life-long learning by pursuing the best ideas, approaches and methods.

Integrity: Requires us to work together honestly and respectfully.

Quality: Commits us to ongoing continuous improvement and excellence.

Service: Calls on us to serve as a force for improving the educational, economic, social and cultural quality of life of our students and the community.

Accountability: Guides us to be responsible and exercise good stewardship.

Diversity: Drives us to embrace and respect the uniqueness of students, employees and community members.

COLLEGE OF LAKE COUNTY COMMUNITY COLLEGE DISTRICT NO. 532

NOVEMBER 21, 2017, 6:00 P.M. The Board of Trustees of Community College District No. 532, College of Lake County, will convene the regular meeting in Room A013, 19351 West Washington Street, Grayslake, Illinois. 01. Board Convenes the Regular Meeting 01.1 Call to Order and Roll Call 01.2 Approval of the Agenda 02. Approval of Minutes * 02.1 Regular Meeting of October 24, 2017 02.2 Closed Meeting of October 24, 2017 * 02.3 Committee of the Whole Meeting of November 7, 2017 03. Receipt of Notices, Communications, Hearings, and Petitions 04. Chair’s Report 04.1 Student Trustee’s Report 05. President’s Report 05.1 PFM Brief Overview for Agenda Items 07.6-07.8 06. Approval of Board Policies and Objectives * 06.1 Procurement – Policy 712 – Revised – Second Reading (pp. 1-8) * 06.2 Investment of College Funds – Policy 703 – Revised – First Reading (pp. 9-21) 07. Approval of Financials

* 07.1 Resolution Approving Reimbursement of Travel, Meal and Lodging Expenses (p. 23)

* 07.2 Resolution Approving and Ratifying Bills, Authorizing Budget Transfers and Accepting Monthly Financial Report (pp. 24-37)

* 07.3 Resolution Adopting 2017 Tax Levy (pp. 38-44) * 07.4 Resolution Authorizing a Supplemental Tax Levy to Pay the Principal of

and Interest on Outstanding Limited Bonds of Community College District No. 532, County of Lake and State of Illinois (pp. 45-56)

* 07.5 Resolution Abating the Tax Heretofore Levied for the Year 2017 to Pay Debt Service on General Obligation Bonds (Alternate Revenue Source), Series 2013A, and General Obligation Bonds (Alternate Revenue Source), Series 2013B, of Community College District No. 532, County of Lake and State of Illinois (pp. 57-64)

Agenda for Regular Meeting of November 21, 2017

* 07.6 Alternate Bond Refunding Resolution – Resolution Providing for the Issue

of Not to Exceed $57,000,000 General Obligation Refunding Bonds (Alternate Revenue Source) of Community College District No. 532, for the Purpose of Refunding Certain Outstanding Bonds of Said District, Providing for the Pledge of Certain Revenues to the Payment of Principal and Interest on Said Bonds and the Levy of a Direct Annual Tax Sufficient to Pay Such Principal and Interest if the Pledged Revenues Are Insufficient to Make Such Payment, and Authorizing the Sale of Said Bonds to the Purchaser Thereof (pp. 65-105)

* 07.7 Limited Bond Refunding Resolution – Resolution Providing for the Issue of Not to Exceed $20,000,000 General Obligation Limited Refunding Bonds of Community College District No. 532, for the Purpose of Refunding Certain Outstanding Bonds of Said District, Providing for the Levy of a Direct Annual Tax to Pay the Principal and Interest on Said Bonds, and Authorizing the Sale of Said Bonds to the Purchaser Thereof (pp. 106-140)

* 07.8 Escrow Resolution – Resolution Authorizing and Directing the Execution of an Escrow Agreement in Connection with the Issue of General Obligation Limited Refunding Bonds and General Obligation Refunding Bonds (Alternate Revenue Source) of Community College District No. 532 (pp. 141-167)

08. Approval of Purchasing * 08.1 Biddable Items

• Science Building Lab Equipment (Fischer Scientific Company) (p. 169) * 08.2 Non-Biddable Items

• Cisco SmartNet Network Support and Maintenance (Cisco Systems Capital Corporation) (p. 170)

• Annual Server Purchase (Hewlett Packard) (pp. 171) • Project Management Services (Cotter Consulting) (pp. 172) • Cleaning Equipment (WW Grainger, Inc.) (pp. 173-174) • Wood Chipper (Morbark, LLC) (pp. 175) • GE Annual Maintenance Agreement (GE Healthcare) (pp. 176)

* 08.3 Disposal (pp. 177-178) 09. Approval of Contracts and Grants 10. Approval of Programs

Agenda for Regular Meeting of November 21, 2017 11. Approval of Human Resources Recommendations * 11.1 Resignations (p. 179) * 11.2 Position Additions, Reclassifications, Reorganizations, Deletions, and

Vacant Positions (pp. 180-186) * 11.3 Full-Time Employment (pp. 187-188)

• New – Administrative • Probationary – New – Classified • Probationary – New – Specialist

* 11.4 Promotions and Transfers (p. 189) * 11.5 Employment Contracts (pp. 190-192)

• FY2018 Full-Time Faculty, Administrative and Specialist Personnel (A complete copy of the proposed Full-Time Faculty and Specialists Personnel contracts is available at http://dept.clcillinois.edu/pre/contracts/ContractsNov2017.pdf or by contacting the CLC Human Resources office at 19351 West Washington Street, Room T108, Grayslake, Illinois.)

11.6 Staff Benefits 12. Closed Meeting 13. Other Matters for Information, Discussion, or Action 13.1 50th Anniversary Plan and Recommendations 14. Adjournment * Report Enclosed

http://dept.clcillinois.edu/pre/contracts/ContractsNov2017.pdf

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AGENDA ITEM NO. 6.1 – BOARD POLICIES AND OBJECTIVES

Agenda Item 6.1

November 21, 2017

PROCUREMENT

Policy 712 – Revised – Second Reading

This policy is revised to clarify board approval requirements for a contract change

order as defined in the Illinois Public Community College Act’s 805/3-27.1 (d) that all

contract change orders in excess of 10% require Board approval. The current College

Policy 712 and the Illinois Community College Board’s Fiscal Managers Manual do not

specify Board approval requirements for contract change orders.

In addition, the Administration recommends revising this policy to specify that bid

preferences include Disadvantaged Business Enterprises and Lake County businesses.

Recommended changes are indicated in red. Language highlighted in blue reflects

input presented after the First reading.

Page 1

AGENDA ITEM NO. 6.1 – BOARD POLICIES AND OBJECTIVES (Continued)

Agenda Item 6.1

November 21, 2017

712 PROCUREMENT

All college procurement shall be under the supervision of the Vice President

for Administrative Affairs or designee in order to promote economies

through quantity buying; eliminate duplicate effort; facilitate a system of

budgetary control through the use of purchase requisitions; ensure receipt,

entry, and auditing of invoices and other documents relating to expenditures;

and lend objectivity to the procurement process.

No expenditure for unauthorized purchases shall be approved by the college,

but shall be the sole responsibility of the person making the unauthorized

purchase.

The Vice President for Administrative Affairs or designee shall maintain a

list of reliable vendors for each type of materials or services for which bids

are solicited. In determining the reliability of a vendor, the following will be

considered: quality of products, prior experience with the vendor, number of

years in business, financial stability of the vendor, and other accounts served

by the vendor.

All purchases for commodities must be initiated by requisition and must

carry a budget account code number to ensure that funds are available in the

proper category to maintain the necessary encumbrance control.

01. Quotations, Bids, and Non-Biddable Purchases

The Vice President for Administrative Affairs or designee shall administer

all purchases of budgeted items in accordance with the following regulations:

01.1 Purchases between $5,000 and $25,000

Three written quotations must be secured when possible from

responsible vendors on any item or group of items ranging in cost

from $5,000 to $25,000.

The Vice President for Administrative Affairs or designee has

authorization to make an award in the best interest of the college,

providing the item(s) has been budgeted. When practical, preference

shall be given to Disadvantaged Business Enterprises (DBE) and to

businesses and firms located within the boundaries of the college

district. For informational purposes, a summary report of purchase

awards will be provided to the Board of Trustees on a monthly basis

for purchases made in the amount of $5,000 to $25,000.

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Agenda Item 6.1

November 21, 2017

01.2 Purchases in excess of $25,000

After due advertisement, all competitive bids for contracts involving

an expenditure expected to exceed $25,000 must be sealed by the

bidder and must be publicly opened by the Vice President for

Administrative Affairs or designee and one other staff member. At

this time, the contents of the bids must be publicly announced.

Due advertisement includes, but is not limited to, a minimum of one

public notice at least ten days prior to the bid date in a newspaper

published within the community college district. Bids shall be

solicited directly from responsible vendors that are deemed reliable

and competent to furnish the required items. Awards shall be made

to the lowest, most responsible bidder whose bid is in accordance with

the terms, conditions, and specifications as outlined in the bidding

document. The Board of Trustees has the right to accept or reject any

or all bids, in whole or in part, when deemed in the best interest of the

college. In the case of identical bids, preference shall be given to firms

having places of business within the community college district.

A bid summary accompanied by a recommendation for award of

contract shall be submitted to the Board of Trustees for formal

approval, and no award shall be made prior to or without such

approval.

Following the award of a contract, any change order which that

exceeds 10% of the contract price shall be competitively bid in

accordance with 110 ILCS 805/3-27.1.

01.3 Non-biddable purchases

By Illinois Compiled Statutes 110 ILCS 805/3-27.1, the purchase of

certain supplies, materials or work, involving $25,000 or more, may

be exempt from the competitive bidding process. Procedures for

determining and approving non-biddable purchases shall be

established by the Vice President for Administrative Affairs, or

designee, based on exemptions provided for in Illinois Compiled

Statutes.

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Agenda Item 6.1

November 21, 2017

The Board of Trustees shall approve all non-biddable purchases in

excess of $25,000 on an annual basis for a single scope of work. The

Board of Trustees reserves the right to consider the location of a

business or firm within the boundaries of the college district as a

criterion for award of such contracts.

02. Construction Contracts in Excess of $50,000

After due advertisement, all competitive bids for construction contracts

involving an expenditure expected to exceed $50,000 must be sealed by the

bidder and must be publicly opened by the Vice President for Administrative

Affairs or designee and one other staff member. At this time, the contents of

the bids must be publicly announced.

02.1 Construction contracts between $5,000 and $50,000

Three written quotations must be secured when possible from

responsible contractors on construction contracts ranging in cost from

$5,000 to $50,000.

The Vice President for Administrative Affairs or designee has

authorization to make an award in the best interest of the college,

providing the project has been budgeted. For informational purposes,

a summary report of construction contract awards will be provided to

the Board of Trustees on a monthly basis for construction contracts

made in the amount of $5,000 to $50,000.

02.2 Bonding requirements, and insurance and change orders

All competitively bid construction contracts in excess of $50,000 shall

require bidders to provide a ten percent bid bond, cashier’s check, or

money order made payable to the College of Lake County, to secure

their bid until the award process is complete. Upon award, bid bonds

shall expire, and checks will be returned to respective bidders. All

construction contracts in excess of $50,000 shall require successful

bidders to submit and maintain for the duration of the contract

performance, and material and labor payment bonds for 100% of the

total contract amount.

The college shall require all contractors working on college property

to provide the college with a certificate of liability insurance naming

the college as additional insured.

Page 4


Agenda Item 6.1

November 21, 2017

For construction contracts exceeding $50,000, any change order

which that exceeds 10% of the contract price shall be competitively

bid in accordance with 110 ILCS 805/3-27.1.

02.3 Illinois Prevailing Wages

The college shall require all contractors and subcontractors to comply

with the Illinois Prevailing Wage Law 820 ILCS 130/0.01 through

130/12.

03. Procurement Consortia

Procurement consortia have been developed for educational institutions or

government entities to incur cost savings that can be achieved through

participation in additional procurement options. The goal of these consortia

is to offer cooperative, consolidated, and competitive selection bids and

awards to achieve cost savings for all of their members. These consortia

follow stringent guidelines for proper sealed bidding procedures. The Vice

President for Administrative Affairs or designee is authorized to access

consortia that offer purchasing opportunities that will provide the most cost

effective option for acquiring a product or service for the college.

04. Selection of Professional Services

For services expected to exceed $50,000, and after due advertisement,

proposals may be obtained using one or a combination of Quality Based

Selection, Request for Proposals, Request for Qualifications/Information,

Request for Statements of Interest, or Invitation for Sealed Bids. The Board

of Trustees requires that the firms be the most qualified and that their services

are offered at a reasonable price. The Board of Trustees may determine that

a service does not require competitive bidding because of the lack of a

competitive environment, or the uniqueness of the service and/or the

provider.

Services shall be determined on the basis of demonstrated competence and

qualifications for the type of services required and at a fair and reasonable

compensation, unless the college has determined that it has an established

satisfactory relationship for such services with one or more firms.

Page 5


Agenda Item 6.1

November 21, 2017

05. Disadvantaged Business Enterprises (DBE)

The College recognizes the importance of increasing the participation of

businesses owned by minorities, females and persons with disabilities1 in

public contracts in an effort to overcome the discrimination and victimization

such firms have historically encountered.2 It is the College’s policy to

promote the economic development of businesses owned by minorities,

females and persons with disabilities by setting aspirational goals to award

contracts to businesses owned by minorities, females, and persons with

disabilities for certain services as provided by the Business Enterprise for

Minorities, Females and Persons with Disabilities Act, 30 ILCS 575/0.01 et

seq. (the “Act”) and the Business Enterprise Council for Minorities, Females,

and Persons with Disabilities (the “Council”).3

In support of this policy, the College will encourage the participation of

qualified minority, female and persons with disability owned businesses by

advertising, whenever possible, with trade associations, service

organizations, minority newspapers and other appropriate media and other

organizations focused on the needs of businesses owned by minorities,

females and persons with disabilities to alert potential contractors and

suppliers of opportunities. The College will support key administrative and

staff members to attend and participate in training sessions, workshops,

conferences and seminars dealing with procurement through qualified

minority, female and persons with disability-owned businesses in

compliance with the Act.

In furtherance of the above:

1. The College President4 shall appoint a liaison to the Council;

2. The College Liaison shall file an annual compliance plan with the

Council, which shall include a copy of this Policy, signed by the College

President, which shall outline and summarize the College’s goals for

contracting with businesses owned by minorities, females and persons

with disabilities for the current fiscal year, the manner in which the

College intends to reach these goals, a timetable to reach these goals, and

procedures to support this Policy as specified by the Act5;

1 As defined in 30 ILCS 575/2. 2 See 30 ILCS 575/1. 3 This Council was created to implement, monitor, and enforce the goals of the Act. See 30 ILCS 575/5. 4 Id. 5 30 ILCS 575/6-(a).

Page 6


Agenda Item 6.1

November 21, 2017

3. The College Liaison shall file an annual report with the Council6;

4. The College Liaison shall provide notice to the Council of proposed

contracts for professional and artistic services7;

5. The College shall use bid forms identifying the bidder’s percentage or

disadvantaged business utilization plans; and percentage of business

enterprise program utilization plan8; and

6. The College shall comply with all other requirements of the Act.

The Vice President for Administrative Affairs or his designee shall establish

DBE goals for all construction bids that exceed $250,000. The goals shall

be calculated and established using the known firms in the trades identified

within the bid and as documented by the State of Illinois DBE Program.

Goals shall be established by project and/or bid. Once goals are established,

bidders shall include evidence of their attempt to meet the established goals.

06. Local Business Procurement

State law mandates an open and competitive bidding process and requires

contracts be awarded to the lowest responsive and responsible bidder.

To the extent permitted by law, the College of Lake County will promote

economic development by encouraging the participation of Lake County

businesses.

Wherever and whenever possible, language will be included in bid

specifications that will maximize and support participation from local

businesses. In the event of tie bids, an award preference may be given to

persons or firms located within the confines of the college district.

The Vice President for Administrative Affairs or designee is responsible for

establishing a local vendor list to allow for ease of bid notification and

provide College employees a resource for procuring goods and services from

local vendors.

630 ILCS 575/6(c). 7 30 ILCS 575/6a. 8 30 ILCS 575/7(5).

Page 7


Agenda Item 6.1

November 21, 2017

07. Blackout Period

During the period when a commodity, contractual, or service is advertised

for sealed bid or proposal, the competitive environment will be enhanced

when all prospective bidders and proposers have access to identical

information. Therefore, until it is approved by the Board of Trustees,

members of the college community are prohibited from communicating with

prospective bidders or proposers in the procurement of said commodities,

contractuals or services. All questions, requests for clarifications or

additional information must be referred to the Vice President for

Administrative Affairs or designee. Procedures for responding to all such

inquiries shall be established by the Vice President for Administrative

Affairs or designee.

08. Sustainability

In order to promote sustainability and reduce carbon emissions, the College

of Lake County shall consider the procurement of products or services that

minimize potentially negative impacts on the environment and human health,

in addition to the established purchasing considerations of price and

performance, DBE Enterprises, and Local Business Procurement for

competing products or services that serve the same purpose.

Adopted 11/11/69

Amended 03/27/73

Amended 03/25/75

Amended 10/26/81

Amended 09/23/85

Amended 12/18/90

Amended 09/28/93

Amended 12/16/08

Amended 01/25/11

Amended 11/19/13

Amended 11/18/14

Amended 09/22/15

Amended 08/23/16

Amended

Page 8

AGENDA ITEM NO. 6.2 – BOARD POLICIES AND OBJECTIVES

Agenda Item 6.2November 21, 2017

INVESTMENT OF COLLEGE FUNDS

Policy 703 – Revised – First Reading

The College’s new investment advisor PFM Asset Management LLC completed its

review and is recommending updates to the Board’s investment policy to enhance its

investment policy and portfolio management strategy. These recommendations are based on a

comparison of the Board’s investment policy to current State investing regulations (the Illinois

Public Funds Investment Act, 30 ILCS 235/0.01 et seq., as amended), their experience with

similar governmental investment policies, and suggested changes from First Midwest Bank.

Below is an outline of the material revisions that PFM and First Midwest Bank recommend

to enhance its investment policy and investment management program:

Subject Matter Description of PFMAM’s Suggestion

Scope of Funds Incorporate a declaration that specifies which funds this investment policy applies to.

Liquidity Include a statement that defines the liquidity objectives of the College.

Supranational Bonds Illinois state statutes allows for bonds, notes, debentures, or other similar obligations of the United States of America, its agencies, and its instrumentalities; therefore, the policy could specifically list out supranational bonds as a permitted investment. Supranational bonds are issued by entities such as the World Bank and the international development banks.

Certificates of Deposit Increase the FDIC-insurance capacity listed in its policy from $100,000 to $250,000 to reflect the current standard deposit insurance coverage limit per depositor.

Repurchase Agreements

Repurchase agreements should be listed as an investment instrument that the College may invest in.

Page 9


Agenda Item 6.2

November 21, 2017

Subject Matter Description of PFMAM’s Suggestion Commercial Paper State that commercial paper carry a top tier short-term rating by at least

two of the three nationally recognized rating agencies and mature not more than 270 days after the date of purchase. To strengthen diversification, the College should incorporate a limit to the amount of exposure in any one CP issuer to 5% of the overall portfolio as this would further enhance the risk management for this type of investment.

Municipal Bonds The Illinois state statutes allows for bond and obligations of state and local governments as a permitted investment as well as municipal bonds issued by a political subdivision.

Negotiable Certificates of Deposit

The College should specifically add negotiable certificates of deposit as a permitted investment in its investment policy.

Illinois Trust List out the Illinois Trust local government investment pool (“LGIP”) as a separate type of authorized investment in its investment policy statement since this LGIP is similar, but separate from the Illinois Funds and ISDLAF+.

Short-Term Bond Funds

The Illinois state statutes specifically allow community colleges to invest in mutual funds that invest primarily in corporate investment grade or global government short-term bonds with some restrictions.

Competitive Bid Requirement

State that at least three competitive prices are required for every transaction involving an individual security to ensure a competitive selection of investment instruments. Adequate documentation of the bid process should be maintained.

Credit Risk Detail explicitly how the College will deal with subsequent credit downgrades.

Asset Allocation and Issuer Limitations

Place overall sector and issuer limitations on all credit instruments and limit the percentage of the portfolio to be invested in these types of securities as this would enhance the risk management for investment such as municipal bonds, negotiable and non-negotiable certificates of deposit, commercial paper,. bankers’ acceptances, repurchase agreements, etc.

Maturity Limitation State a maximum maturity limit for all investment types to better limit the College’s duration risk (see the accompanying table on page 5 of the policy). Federal Agency mortgage-backed securities and collateralized mortgage obligations shall be limited to a weighted average life of 5½ years.

Calculations The investment portfolio will be managed in accordance with the parameters specified within the investment policy and such parameters should be calculated at the time of purchase of each investment to determine compliance with the investment policy.

Collateralization Removing and replacing the third party safekeeping collateral requirements as presently stated as most banks do not use the Federal Reserve Bank as custodian.

Page 10


Agenda Item 6.2

November 21, 2017

Subject Matter Description of PFMAM’s Suggestion

Money Manager Add a stipulation to the investment policy that states added language that particularly grants permission for the College to hire a qualified outside investment advisor to become the money manager provided that said advisor meets standard industry qualifications and is registered with the SEC under the Investment Advisers Act of 1940.

Safety Guidelines Should the College delegate investment transactions to a hired qualified investment advisor, state in its investment policy that the outside registered investment advisor can utilize its own approved list of brokers and dealers.

Performance Explicitly state that there is a goal for the funds being managed to meet or exceed the established performance benchmarks and that performance will be evaluated/reviewed on a regular basis.

Policy Considerations The College’s investment policy statement should be reviewed annually.

Recommended changes are indicated in red

Page 11


Agenda Item 6.2

November 21, 2017

703 INVESTMENT OF COLLEGE FUNDS

The Board recognizes that, due to timing of receipts and disbursements of

funds and in order to comply with the statutory mandate requiring all funds

not needed for immediate use be invested within two days of receipt of

same, the College will from time to time have funds available for immediate

investment.

All investments shall be made in accordance with the Illinois Public

Funds Investment Act (30 ILCS 235/.01 et seq.), as may be amended from

time to time (hereinafter referred to as the “Act”). All transactions involving

College funds and related activity of any funds shall be administered in

accordance with the provisions of this policy and the canons of the “prudent

person rule.”

This policy applies to activities of the College with regard to investing the

financial assets of all funds. The covered funds, and any new funds created

by the College, unless specifically exempted by the Board of Trustees and

this policy, are defined in the Illinois Community College Board Fiscal

Management Manual and the Illinois State Statutes (30 ILCS 235/0.01).

Note that any excluded funds, such as employee retirement funds and

foundation or endowment assets are covered by separate board policies.

Except for funds in certain restricted and special funds, the College can

commingle its funds to maximize investment earnings and to increase

efficiencies with regard to investment pricing, safekeeping, and

administration. Investment income will be allocated to the various funds

based on their respective participation and in accordance with generally

accepted accounting principles.

Objectives

Investments shall be undertaken to ensure the preservation of principal in

the overall portfolio. To attain this objective, only appropriate investment

instruments will be purchased and insurance or collateral may be required

to ensure the return of the principal. The investment portfolio shall also

remain sufficiently liquid to meet all operating requirements that may be

reasonably anticipated.

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Agenda Item 6.2

November 21, 2017

The investment portfolio shall be designed to attain a market-average rate

of return throughout budgetary and economic cycles, taking into account

the risk constraints, the cash flow characteristics of the portfolio and legal

restrictions for return on investment.

The College Treasurer shall seek to act responsibly as custodian of the

public trust and shall avoid any transactions that might impair public

confidence in the College, the Board of Trustees, or the College Treasurer.

The College Treasurer may use longer-term investments to increase

yield, provided, however, that sufficient funds are available to meet all

disbursement obligations. The College’s Bank depositories will support

community reinvestment activities as follows:

A. Overall CRA Rating (Community Reinvestment Act 12USCA

2901-2908). The financial institution’s most recent “Overall CRA

Rating” shall be satisfactory or higher. If the institution’s overall

rating is rated need-to-improve or lower, no new funds will be

deposited with that institution. Existing funds deposited in the

institution will remain until maturity, but will not be reinvested with

that institution.

B. CRA Performance Tests. The financial institution shall meet the

requirements of this Sub-Section along with Sub-Section 5.A.; if

District funds are to be deposited in the financial institution. The

institution’s performance tests (Lending, Investment, and Service)

shall be rated satisfactory or higher for each of the three performance

tests. If an institution’s rating is need-to-improve or lower for two

review periods in a row; the District will not deposit any additional

funds with the institution, without respect to the institution’s overall

rating. Existing funds deposited in the institution will remain until

maturity, but will not be reinvested with that institution.

C. Fair Lending Practices. In conjunction with a financial institution

CRA rating, the District will be reviewing any fair lending violations

on behalf of the institution.

Page 13


Agenda Item 6.2

November 21, 2017

Investment Instruments

The College may invest in any type of security allowed by the Act, as

follows:

1. Bonds, notes, certificates of indebtedness, treasury bills or other

securities now or hereafter issued by the United States of America,

its agencies and allowable instrumentalities;

2. Interest bearing savings accounts, interest bearing certificates of

deposit or interest bearing time deposits, or any other investments

constituting direct obligations of any bank as defined by the Illinois

Banking Act;

3. Certificates of deposit with federally insured institutions that are

collateralized or insured at levels acceptable to the District in

excess of the $100,000$250,000 provided by the Federal Deposit

Insurance Corporation coverage limit or that meet or exceed the rating

levels as described in item # 7 of this section;

4. Collateralized repurchase agreements which conform to the

requirements stated in paragraph 2(g) or 2(h) of the Act;

5. Commercial paper meeting the following requirements;

a) The corporation must be organized in the United States.

b) The corporation’s assets must exceed $500,000,000.

c) The obligations at the time of purchase must be rated within the

two highest classifications by at least two of the four standard

rating services nationally recognized statistical rating

organization (for example, Standard and Poor’s, Duff and

Phelp’s, and Moody’s, A-1/P-1and Fitch Investors Service).

d) The obligations cannot have a maturity longer than 180270 days.

e) Not more than 33% of the total investment fund can be invested

in commercial paper at any time.

f) The total investment in any one corporation cannot exceed

10% of the corporation’s outstanding obligations.

g) The total investment in any one corporation cannot be more

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Agenda Item 6.2

November 21, 2017

than $20,000,0005% of the overall portfolio.

6. Municipal obligations of state, provincial and local governments and

public authorities rated in the highest three ratings categories by a

nationally recognized statistical rating organization (“NRSRO”);

7. Negotiable certificates of deposit rated in the highest three ratings

category by a NRSRO;

6.8. The Illinois Funds (formerly known as the Illinois Public Treasurer’s

Investment Pool); and

9. The Illinois School District Liquid Asset Fund; and.

10. The Illinois Trust local government investment pools; and

7.11. Short-term bond funds that invest primarily in corporate investment

grade bonds; these funds are limited to funds with assets of at least

$100 million and that have an average credit quality in the highest

three rating categories by a NRSRO.

8. Investments may be made only in those savings banks or savings and

loan associations the shares, or investment certificates of which

are insured by the Federal Deposit Insurance Corporation.

9.12. Investment products that are considered as derivatives are

specifically excluded from approved investments.

Competitive Transactions

The College has established the following procedures:

A. The College Treasurer or its designee shall seek to obtain competitive

bid information on all purchases of investment instruments purchased

on the secondary market. A competitive bid can be executed through a

bidding process involving at least three separate brokers/financial

institutions.

B. When purchasing original issue securities, no competitive offerings will

be required as all dealers in the selling group offer those securities at the

same original issue price.

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Agenda Item 6.2

November 21, 2017

Subsequent Credit Downgrades

If the credit rating of a security is subsequently downgraded below the

minimum rating level for a new investment of that security, the College

Treasurer shall evaluate the downgrade on a case-by-case basis in order to

determine if the security should be held or sold by applying the general

objectives of safety, liquidity, yield, and legality to make the decision.

Diversification

The College shall diversify its investment portfolio to reduce the risk of loss

from over-concentration in a specific maturity, issuer or class of

securities. Diversification strategies shall be determined and revised

periodically by the College Treasurer.

The following diversification parameters have been established and will be

reviewed periodically by the College Treasurer for all funds:

Sector Type Sector Max2

(%)

Issuer Max2

(%) Ratings Requirement1,2 Max Maturity

US Treasury 100% N/A N/A 5½ Years

Federal Agency3 75% 40% N/A 5½ Years

Supranational Bonds4 30% 5% N/A 5½ Years

Municipals 30% 5% Top Three Ratings Categories 5½ Years

Negotiable CDs 30% 5% Top Three Ratings Categories 3 Years

Commercial Paper 33% 5% Highest Ratings Category 270 Days

Time Deposits 100% N/A N/A 5½ Years

Repurchase Agreements 20% 10% N/A 90 Days

Money Market 100% N/A Highest Ratings Category N/A

LGIP 100% N/A Highest Ratings Category N/A

Short-Term Bond Fund 25% N/A Top Three Ratings Categories N/A 1By a Nationally Recognized Statistical Ratings Organization (“NRSRO”) 2At the time of purchase 3Federal Agency securities include those obligations issued by FNMA, FHLMC, FHLB, FFCB, etc. 4Supranational bonds include securities issued by entities such as the World Bank and the international development banks.

For Federal Agency mortgage-backed securities (“MBS”) and collateralized

mortgage obligations (CMO), the 5½ year maximum maturity limitation will

be applied to the weighted average life calculation rather than the final

maturity of the MBS or CMO security.

Page 16


Agenda Item 6.2

November 21, 2017

Any percentage limits, maturity length, rating requirements, or other

investment parameters will be calculated and/or evaluated based on the

original cost of each investment at the time of purchase of the security in

determining compliance with this investment policy.

Collateralization

Time deposits, including checking accounts and non-negotiable certificates

of deposit (but excluding negotiable certificates of deposit), in excess of

FDIC insurable limits shall be secured by collateral acceptable under the

Act or by private insurance, to protect public deposits in a single financial

institution in the event of default. Collateral must be placed in safekeeping

at or before the time the College acquires the investments so that it is

evident that the purchase of the investment is predicated on secured

collateral.

Third party safekeeping of collateral is required; acceptable locations are:

a Federal Reserve Bank or its branch office;

at another custodial facility in a trust or safekeeping department

through book entry at the Federal Reserve;

Pledged collateral at a minimum of 102% will be held in a third-party

safekeeping account as evidenced by a safekeeping agreement.

Substitution or exchange of collateral securities held in safekeeping for the

College may be approved exclusively by the College Treasurer, provided

the market value of the replacement collateral is equal to or greater than

the market value of the securities being replaced.

Safekeeping of Securities

All securities and commercial paper shall be held in safekeeping at a

custodial facility – generally in a trust or safekeeping through book

entry at the Federal Reserve (unless physical securities are involved) –

independent from any bank or brokerage firm handling securities

transactions for the College. Payment for investments and receipt or

delivery of investment certificates or records shall be controlled by the

independent financial institution’s trust departmentcustodial facility.

Page 17


Agenda Item 6.2

November 21, 2017

Qualified Financial Institutions and Intermediaries

1. Depositories – Demand Deposits

Any financial institution selected by the College shall provide

normal banking services, including but not limited to: checking

accounts, wire transfers and safekeeping services, and comply

with CRA provisions as set forth on pages 1 and 2 hereof.

The College shall not maintain funds in any depository that is not a

member of the FDIC system and that is unable to post the

required collateral or insurance for funds in excess of FDIC insurable

limits.

2. Banks and Savings and Loans – Certificates of Deposit

Any financial institution selected to be eligible for the College’s

competitive non-negotiable certificate of deposit purchase program

shall: (a) provide wire transfer and certificate of deposit

safekeeping services; (b) be a member of the FDIC system and shall

be able to post the required collateral or insurance for funds in excess

of FDIC insurable limits; and (c) meet the financial criteria

established by the College.

3. Intermediaries

Any financial intermediary selected to be eligible for the College’s

competitive investment program shall: (a) provide wire transfer and

deposit safekeeping services; (b) be a member of a recognized U.S.

Securities and Exchange Commission Self-Regulatory

Organization, such as but not limited to the New York Stock

Exchange, National Association of Securities Dealersthe Financial

Industry Regulatory Authority (“FINRA”), Municipal Securities

Rule Making Board; (c) provide an annual audit upon request; (d)

have an office of Supervisory Jurisdiction with the State of Illinois

and be licensed to transact business in Illinois; and (e) be familiar

with and understand the College’s investment policy and accept

financial responsibility for any inappropriate investment.

The College may engage the services of an external investment

manager to assist in the management of the College’s funds in a

manner consistent with the College’s objectives. Such external

managers may be granted discretion to purchase and sell investment

Page 18


Agenda Item 6.2

November 21, 2017

securities in accordance with this investment policy. Such managers

must be registered under the Investment Advisers Act of 1940. If the

College hires an investment adviser to provide investment

management services, the investment adviser may use any brokers

that it deems prudent.

Management of Program

The Treasurer, appointed by the Board of Trustees, under the direction of

the President, is authorized to purchase and sell investments, authorize

wire transfers, authorize the release of pledged collateral, and to execute

any documents required to carry out this investment policy, including but

not limited to wire transfer agreements, depository agreements,

safekeeping agreements, and custody agreements. The wording of such

agreements is the responsibility of the Treasurer, with advice from legal

counsel and auditors, and the Treasurer shall periodically review the

agreements for their consistency with College policy and State law.

The Treasurer is responsible for management of the College’s investment

program, and shall establish a system of internal controls and written

operational procedures designed to regulate the activities of subordinates,

and to prevent losses of funds that might arise from fraud, employee error,

or misrepresentation by third parties, or imprudent actions by employees or

representatives of the financial institution or intermediary. Such procedures

shall include explicit delegation of authority to persons responsible for

investment transactions, check signing, check reconciliation, deposits,

bond payments, report preparation and wire transfers. No person may

engage in any investment transaction on behalf of the College except as

provided for under the terms of this policy and the corresponding

procedures.

To solicit bids for securities and certificates of deposit, the Treasurer may

use SEC-registered investment advisers, financial intermediaries, brokers and/or

financial institutions.

Performance

The Treasurer will seek to earn a rate of return appropriate for the type of

investments being managed and in accordance with the portfolio

objectives established hereinabove. In general, the Treasurer will strive to

earn an average rate of return equal to or greater than the Illinois Funds

rate. The investment portfolio will be managed in accordance with the

parameters specified within this policy. The College shall establish

Page 19


Agenda Item 6.2

November 21, 2017

performance benchmarks that appropriately represent the use and objectives

of the funds invested. The funds’ performance against these benchmarks

will be reviewed by the Board of Trustees on a quarterly basis pursuant to

Board Policy 119.

Ethics and Conflicts of Interest

Officers and employees of the College involved in College investments

shall refrain from personal business activity that could conflict with the

proper execution of the College’s investment program, or which could

impair his/her ability to make impartial investment decisions on behalf of

the College.

Indemnification

Officers and employees of the College acting in accordance with this

investment policy and written operational procedures as have been or may

be established and exercising due diligence, shall be relieved of personal

liability for an individual security’s credit risk or market changes.

Reporting

The Treasurer shall submit to the College’s Board of Trustees and

President at least a quarterly investment report which shall include

information regarding securities in the College’s portfolio by class or

type, book value, income earned, and market values as of the report

date. Generally accepted accounting principles shall be used for valuation

purposed. The report shall indicate any areas of policy concern and planned

revision of investment strategies.

Page 20


Agenda Item 6.2

November 21, 2017

Policy Considerations

This policy shall be reviewed on an annual basis. Any changes must be

approved by the College’s Board of Trustees.

Adopted 04/09/1969 Amended 03/27/1973 Amended 03/25/1975 Amended 10/16/1982 Amended 06/24/1986 Amended 12/21/1999 Amended 08/28/2001

Amended

Page 21


Page 22

AGENDA ITEM 7.1 – FINANCIAL

RESOLUTION APPROVING REIMBURSEMENT OF TRAVEL, MEAL AND LODGING EXPENSES

WHEREAS, the list of reimbursements for travel, meal and lodging expenses are

required to be approved by the Board of Trustees in accordance with the College of Lake

County Policy 960 and 50 ILCS 150/1 et seq.; and

WHEREAS, the monthly expenses to be approved pursuant to 50 ILCS 150/1 et

seq., are set forth below;

NOW BE IT RESOLVED that the Board of Trustees approves the reimbursement

for travel, meal, and lodging expenses in the amount of $6,238.11.

PASSED this 21st day of November 2017 by the Board of Trustees, College of

Lake County, Community College District No. 532, Grayslake, Illinois.

It is recommended that the Board of Trustees approve the reimbursement for

travel, meal, and lodging expenses.

Agenda Item 7.1 November 21, 2017

Page 23

AGENDA ITEM 7.2 – FINANCIAL

Agenda Item 7.2

November 21, 2017

RESOLUTION APPROVING AND RATIFYING BILLS, AUTHORIZING

BUDGET TRANSFERS

AND ACCEPTING MONTHLY FINANCIAL REPORT

WHEREAS, the list of bills has been provided to the Board of Trustees in

accordance with the College of Lake County Invoice Policy 713; and

WHEREAS, the full details of the monthly financial report are contained in this

document, and a summary is attached hereto; and

WHEREAS, budget transfers in the amount of $236,528.98 are recommended to

the Fiscal Year 2018 Budget and are attached hereto;

NOW BE IT RESOLVED that the Board of Trustees approves the bills provided

under separate cover, accepts the monthly financial report and approves/ratifies and

authorizes the Treasurer to make budget transfers in the amount of $236,528.98.

PASSED this 21st day of November 2017 by the Board of Trustees, College of

Lake County, Community College District No. 532, Grayslake, Illinois.

It is recommended that the Board of Trustees adopt the resolution Approving

Bills, Authorizing Budget Transfers and Accepting the Monthly Financial Report.

Page 24

AGENDA ITEM 7.2 – FINANCIAL (Continued)

Agenda Item 7.2

November 21, 2017

FY18 BUDGET TRANSFERS

Increase Decrease

Account No. Department Account Description Budget Budget Reason

1) 516001 01 12001 8060 01 Police Dept. Clerical Staff, F-T $25,642.25

To cover cost of clerical staff moving

516002 01 12001 8060 01 Police Dept. Clerical Staff, P-T

$21,137.25 from part-time to full-time.

541004 01 12001 8060 01 Police Dept. Maintenance Supplies $4,505.00

2) 599004 01 00262 8040 01 Diversity Comm. New Projects $5,000.00 To reallocate funds based on need.

553000 01 00262 8040 01 Diversity Comm. Out-of-District Travel $5,000.00

3) 585000 02 00093 8040 F7 Campus Services Equipment – Office $2,787.67 To cover the purchase of flood damaged

541010 02 00093 8040 F7 Campus Services Computer Supplies $1,600.00 paper stock.

599017 02 00092 8060 F7 Institutional Exp. Flood Expenses $4,387.67

4) 534000 02 00093 8040 01 Campus Services Maintenance Services $70,000.00 To move cost of copy machine

566000 02 00093 8040 01 Campus Services Lease/Purchase Pymts $70,000.00 Maintenance into correct account.

5) 536000 01 00250 8030 01 Foundation Office Services $20,000.00 To cover cost of temporary office staff

518000 01 00250 8030 01 Foundation Student Employees $20,000.00 due to open positions.

6) 585000 01 00250 8030 01 Foundation Equipment – Office $550.00 To cover cost of new printer for

546000 01 00250 8030 01 Foundation Publication and Dues $550.00 Executive Director’s office.

7) 585000 01 01020 1090 02 Lakeshore Campus Equipment – Office $1,380.00 To ensure purchases post to correct

539000 01 01020 1090 02 Lakeshore Campus Other Contractual Svcs $1,380.00 account to match expenditures.

8) 589000 02 00601 1010 F7 Physics Capital Outlay $25,603.30 To cover purchase of flood damaged

599017 02 00092 8060 F7 Institutional Exp. Flood Expenses $25,603.30 cabinets.

Page 25


Agenda Item 7.2

November 21, 2017

Increase Decrease


9) 536000 01 00011 8020 01 Purchasing Office Services $3,993.76 To cover cost of temporary services.

512001 01 00011 8020 01 Purchasing Specialist Staff, F-T $3,993.76

10) 512002 01 00904 3020 01 Career & Job Plcmnt Specialist Staff, P-T $5,000.00 To cover cost of increased part-time

539000 01 00904 3020 01 Career & Job Plcmnt Other Contractual Svcs. $5,000.00 Specialist hours.

11) 512004 01 00904 3020 01 Career & Job Plcmnt Specialist Staff, O-T $110.00 To cover cost of overtime.

516004 01 00904 3020 01 Career & Job Plcmnt Clerical Staff, O-T $112.00

539000 01 00904 3020 01 Career & Job Plcmnt Other Contractual Svcs $110.00

546000 01 00904 3020 01 Career & Job Plcmnt Publications & Dues $112.00

12) 518000 01 01020 1090 02 Lakeshore Campus Student Employees $200.00 To cover costs of student

539000 01 01020 1090 02 Lakeshore Campus Other Contractual Svcs $200.00 employees.

13) 585000 01 01030 3020 01 Advising Computer Hardware $300.00 To cover cost of computer monitors

541010 01 01030 3020 01 Advising Computer Supplies $300.00 for advisor workstations.

14) 539000 01 01032 3020 01 Counseling Other Contractual Svcs $5,000.00 Renewal of Kuder program to

553000 01 01032 3020 01 Counseling Travel/Out-of-District $2,500.00 support students decision of program

542000 01 01032 3020 01 Counseling Printing $2,500.00 choice.

15) 541010 10 10117 3060 01 Multicultural Computer Supplies $150.00 To align accounts with ICCB

599000 10 10117 3060 01 Multicultural Other Expenditures $150.00 guidelines.

16) 538000 57 00910 4020 01 WPDI-Operations Instructionl Svc Contract $1,200.00 To cover costs for instructional

547000 57 00910 4020 01 WPDI-Operations Advising $1,200.00 services.

Page 26


Agenda Item 7.2

November 21, 2017

Increase Decrease


17) 536000 01 01095 8080 01 Information Tech Office Services $60,000.00 To cover cost of temporary worker.

512006 01 01095 8080 01 Information Tech Professional Staff, F-T $60,000.00

18) 532000 03 03003 8060 01 JLC Restoration Consultants $6,500.00 To cover cost of consultant for

589000 03 03003 8060 01 JLC Restoration Other Capital Outlay $6,500.00 Mainstage audio system upgrade.

19) 544003 57 00900 4020 01 WPDI Postage $400.00 To cover cost of postage.

544003 57 00901 4020 01 Client Solutions Postage $400.00

20) 534000 01 00720 1040 01 Medical Imaging Maintenance Services $1,000.00 To place funds in correct account

541020 01 00720 1040 01 Medical Imaging Instructional Supplies $1,000.00 to match expenditures.

TOTAL TRANSFERS-ALL FUNDS $236,528.98 $236,528.98

Page 27


Agenda Item 7.2

November 21, 2017

Operating Funds

Financial Highlights

REVENUE:

The revenues in the operating funds reflect 48.3% of budgeted revenues

through October 2017. Last year, at the end of October 2016, the college had

received 49.7% of the amount budgeted.

The College has received revenues equal to 47.3% of the budgeted fiscal

year amount for property taxes compared to 47.8% for FY 2016. Local source

revenue is budgeted at $67.4 million for Fiscal Year 2017.

As of October 31, student enrollment reflected 54.6% of the tuition

revenue. Last year, at the end of September 2016, the College had received

54.3% of the amount budgeted. Deferred tuition revenue for summer and fall

2017 was transferred into the appropriate revenue accounts in October.

Interest rates, for investment purposes, are averaging 1.45% for all

investments.

EXPENDITURES:

The expenditures in the operating funds reflect 25.7% of budgeted

expenditures for the year. Last year, at the end of the first quarter, the College

had expended 26.2% of the amount budgeted.

Page 28


Agenda Item 7.2

November 21, 2017

Monthly Financial Report

FOR THE MONTH ENDED

October 31, 2017

Page 29


Agenda Item 7.2

November 21, 2017

Fund Revenue Summary

EDUCATIONAL FUND REVENUE

Month Ending: October 31, 2017

YEAR-TO-DATE % BALANCE

ACCOUNT DESCRIPTION BUDGETED AMOUNT RECV'D REC

Current Taxes 52,310,457.00 25,060,365.64 48% 27,250,091.36

T.I.F.A. 70,000.00 0.00 0% 70,000.00

Back Taxes 1,700.00 0.00 0% 1,700.00

CPPRT Corp Pers Prop Repl Tax 1,035,561.00 147,497.21 14% 888,063.79

Chargeback/Contr. Agreement Rev 17,342.00 0.00 0% 17,342.00

ICCB Credit Hour Grants 6,478,761.00 2,893,007.13 45% 3,585,753.87

Vocational Education 406,016.00 (562,410.00) -139% 968,426.00

Tuition 28,956,562.00 15,776,758.36 54% 13,179,803.64

Graduation Fees 8,000.00 270.00 3% 7,730.00

Transcript Fees 100,000.00 33,614.99 34% 66,385.01

On-line Course Fee 231,484.00 115,896.00 50% 115,588.00

Laboratory Fees 500,000.00 285,125.85 57% 214,874.15

Credit By Exam Fees 2,000.00 184.00 9% 1,816.00

Comprehensive Fees 5,501,600.00 2,821,364.95 51% 2,680,235.05

Activity Fee Adjustment (5,405,920.00) (2,684,994.00) 50% (2,720,926.00)

Time Deposits 70,000.00 118,020.44 169% (48,020.44)

Sweep Accounts 2,200.00 2,322.09 106% (122.09)

Library Fines 4,000.00 2,723.25 68% 1,276.75

Transfer in from Other Funds 454,331.00 0.00 0% 454,331.00

Miscellaneous Revenue 225,000.00 2,887.36 1% 222,112.64

Over Short 0.00 (8,766.25) 0% 8,766.25

TOTAL FUND REVENUE 90,969,094.00 44,003,867.02 48% 46,965,226.98

BEGINNING CASH BALANCE 0.00 0.00

TOTAL FUNDS AVAILABLE 90,969,094.00 44,003,867.02

Page 30


Agenda Item 7.2

November 21, 2017

Budget Expenditures

As of October 31, 2017

TRANSFERRED AMOUNT AMOUNT UNEXPENDED UNENCUMBERED

& BUDGETED ENCUMBERED EXPENDED BALANCE BALANCE PCT

Salaries 59,313,190.24 25,928,271.80 18,196,649.97 41,116,540.27 15,188,268.47 26%

Employee Benefits 11,790,095.00 6,748,664.88 2,746,411.14 9,043,683.86 2,295,018.98 19%

Contractual Services 4,838,513.26 1,388,353.98 1,128,252.38 3,710,260.88 2,321,906.90 48%

General Material & Supplies 3,802,044.04 657,329.91 856,459.78 2,945,584.26 2,288,254.35 60%

Travel/Conference Meeting Exp 907,221.00 20,613.29 113,139.39 794,081.61 773,468.32 85%

Fixed Charges 1,070,250.00 17,697.00 362,358.25 707,891.75 690,194.75 64%

Utilities 2,600.00 2,025.38 574.62 2,025.38 0.00 0%

Capital Outlay 751,766.46 4,239.75 18,550.98 733,215.48 728,975.73 97%

Other Expenditures 7,106,344.00 109,172.78 943,836.05 6,162,507.95 6,053,335.17 85%

Provision for Contingency 1,406,210.00 0.00 0.00 1,406,210.00 1,406,210.00 100%

Total For

Educational Fund 90,988,234.00 34,876,368.77 24,366,232.56 66,622,001.44 31,745,632.67 35%

Page 31


Agenda Item 7.2

November 21, 2017

Educational Fund

Balance Sheet


ASSETS

CASH

Cash In Bank

17,108,643.49

Illinois Funds

401,683.47

Petty Cash

0.00

Change Funds

6,539.13

INVESTMENTS


0.00

Treasury Bills

0.00

Certificates of Deposit

(9,127,614.21)

Other Investments

63,382,372.01

RECEIVABLES

Taxes Receivable - Current Levy

0.00

Corp PRS Prty Replc Tax Rec

0.00

Allowance for Uncoll. Tuition

(3,089,662.05)

Allowance Acct. Traffic Program

0.00

Governmental Claims Receivable

(1,124,820.00)

Chargebacks Receivables

0.00

Student Tuition Receivable

7,443,236.13

3rd Party Tuition Receivable

(1,160.00)

Vendor Receivables

824.85

Traffic System Tuition Receivable

0.00

Family Parenting Receivable

0.00

Contract System Receivable

0.00

Other Receivables

0.00

ACCRUED REVENUE

Accrued Interest

(8,048.20)

Accrued State Apportionment

0.00

Other Accrued Revenue

0.00

INTER-FUND RECEIVABLE

Receivable From Education Fund

17,515.95

Receivable From Maint. Fund

1,791.43

Receivable From O.B.M. Fund

1,441,104.19

Receivable From Bond/Int Fund

0.00

Receivable From Auxiliary Fund

18,501.03

Receivable From Restr. Purpose Fund

34,942,298.21

Receivable From Working Cash

256,922.31

Tuition Receivable From Financial Aid

0.00

Receivable From Other Funds

(20,881,483.89)

Deferred Expenses

Deferred Expenses

61,040.50

TOTAL ASSETS

90,849,684.35

Page 32


Agenda Item 7.2

November 21, 2017

Educational Fund

Balance Sheet


LIABILITIES AND FUND BALANCE

LIABILITIES

PAYROLL DEDUCTIONS PAYABLE

Payroll Deductions Payable

0.04

CURRENT OBLIGATIONS PAYABLE

Current Obligations Payable

0.00

ACCOUNTS PAYABLE

Accounts Payable

193,804.62

ACCRUED EXPENSES

Accrued Expense

664,288.15

INTER-FUND PAYABLE

Payable to Maintenance Fund

530.00

Payable to Education Fund

7,055,030.63

Payable to O. B. M. Funds

5,010,571.69

Payable to Bond & Interest Fund

0.00

Payable to Auxiliary Fund

51,932.83

Payable to Restr. Purpose Fund

12,864,100.95

Payable to Working Cash Fund

0.15

Payable to Other Funds

16,959,012.04

DEFERRED REVENUES

Property Taxes

0.00

Total Tuition & Fees

0.00

Miscellaneous Deferred Revenues

0.00

OTHER LIABILITIES

Other Liabilities

1,497,302.39

Vacation Accrual

1,978,151.44

FUND BALANCE

Fund Balance

44,574,959.42

TOTAL FUND BALANCE

44,574,959.42

TOTAL LIABILITIES & FUND BALANCE

90,849,684.35

RECONCILIATION

BEGINNING FUND BALANCE

24,937,324.96

ADD: REVENUE

44,003,867.02

LESS:EXPENDITURES

(24,366,232.56)

OPERATING TRANSFERS

0.00

ENDING FUND BALANCE

44,574,959.42

Page 33


Agenda Item 7.2

November 21, 2017

Fund Revenue Summary

OPER.BLD. & MAINTENANCE FUND

Month Ending: October 31, 2017

YEAR-TO-DATE % BALANCE

ACCOUNT DESCRIPTION BUDGETED AMOUNT RECV'D REC

Current Taxes 13,916,070.00 6,666,769.46 48% 7,249,300.54

T.I.F.A. 18,000.00 0.00 0% 18,000.00

Back Taxes 1,000.00 0.00 0% 1,000.00

Building Rentals 55,000.00 1,135.00 2% 53,865.00

Other Facility Rentals 39,600.00 6,930.00 18% 32,670.00

Miscellaneous Revenue 20,000.00 6,236.48 31% 13,763.52

TOTAL FUND REVENUE 14,049,670.00 6,681,070.94 48% 7,368,599.06

BEGINNING CASH BALANCE 0.00 0.00

TOTAL FUNDS AVAILABLE 14,049,670.00 6,681,070.94

Page 34


Agenda Item 7.2

November 21, 2017

Budget Expenditures


TRANSFERRED AMOUNT AMOUNT UNEXPENDED UNENCUMBERED

& BUDGETED ENCUMBERED EXPENDED BALANCE BALANCE PCT

Salaries 4,262,981.00 2,188,490.70 1,165,041.45 3,097,939.55 909,448.85 21%

Employee Benefits 1,578,795.00 0.00 504,230.57 1,074,564.43 1,074,564.43 68%

Contractual Services 1,034,394.40 275,482.38 149,787.90 884,606.50 609,124.12 59%

General Material & Supplies 351,610.18 416,213.51 46,149.46 305,460.72 (110,752.79) -31%

Travel/Conference Meeting Exp 23,489.00 0.00 1,077.55 22,411.45 22,411.45 95%

Fixed Charges 1,297,332.00 496,185.27 454,303.61 843,028.39 346,843.12 27%

Utilities 3,230,830.00 2,188,465.56 562,114.45 2,668,715.55 480,249.99 15%

Capital Outlay 1,372,901.78 316,722.01 293,019.87 1,079,881.91 763,159.90 56%

Other Expenditures 854,039.64 0.00 (537,873.53) 1,391,913.17 1,391,913.17 163%

Provision for Contingency 43,297.00 0.00 0.00 43,297.00 43,297.00 100%

Total For

Operations & Maintenance

Fund 14,049,670.00 5,881,559.43 2,637,851.33 11,411,818.67 5,530,259.24 39%

Page 35


Agenda Item 7.2

November 21, 2017

Operations & Maintenance Fund

Balance Sheet


ASSETS

CASH

Cash In Bank

9,947,817.99

Illinois Funds

0.00

Petty Cash

4.60

Change Funds

0.00

INVESTMENTS


0.00

Treasury Bills

0.00

Certificates of Deposit

10,000,000.00

RECEIVABLES

Taxes Receivable - Current Levy

0.00

Governmental Claims Receivable

0.00

Vendor Receivables

6,877.27

Traffic System Tuition Receivable

0.00

Other Receivables

0.00

ACCRUED REVENUE

Accrued Interest

0.00

Other Accrued Revenue

0.00

INTER-FUND RECEIVABLE

Receivable From Education Fund

9,770.00

Receivable From O.B.M. Fund

1,665,309.95

Receivable From Bond/Int Fund

0.00

Receivable From Auxiliary Fund

0.00

Receivable From Restr. Purpose Fund

593,855.60

Receivable From Working Cash

0.00

Receivable From Other Funds

68,570.40

Deferred Expenses

Deferred Expenses

108,494.50

TOTAL ASSETS

22,400,700.31

Page 36


Agenda Item 7.2

November 21, 2017

Operations & Maintenance Fund

Balance Sheet


LIABILITIES AND FUND BALANCE

LIABILITIES

CURRENT OBLIGATIONS PAYABLE

Current Obligations Payable

0.00

ACCOUNTS PAYABLE

Accounts Payable

16,358.09

ACCRUED EXPENSES

Accrued Expense

186,851.00

INTER-FUND PAYABLE

Payable to Education Fund

403,288.70

Payable to O. B. M. Funds

4,590,353.00

Payable to Bond & Interest Fund

0.00

Payable to Auxiliary Fund

72.24

Payable to Restr. Purpose Fund

48,065.42

Payable to Working Cash Fund

0.00

Payable to Other Funds

0.00

DEFERRED REVENUES

Property Taxes

0.00

Miscellaneous Deferred Revenues

0.00

OTHER LIABILITIES

Other Liabilities

0.00

FUND BALANCE

Fund Balance

17,155,711.86

TOTAL FUND BALANCE

17,155,711.86

TOTAL LIABILITIES & FUND BALANCE

22,400,700.31

RECONCILIATION

BEGINNING FUND BALANCE

13,112,492.25

ADD: REVENUE

6,681,070.94

LESS:EXPENDITURES

(2,637,851.33)

OPERATING TRANSFERS

0.00

ENDING FUND BALANCE

17,155,711.86

Page 37

AGENDA ITEM NO. 7.3 - FINANCIAL

RESOLUTION ADOPTING 2017 TAX LEVY

The recommended amount of the college’s 2017 aggregate tax levy is based on the

estimated change in inflation and equalized assessed value (EAV), including new

construction and dissolving tax increment financing (TIF). Under the Property Tax

Extension Limitation Law (PTELL), the extension of taxes on the 2017 levy will be

capped by a limiting rate. The limiting rate is computed by multiplying the amount of

2016 aggregate tax extensions by the 2.1% increase in the Consumer Price Index (CPI)

for calendar year 2016. That sum is then divided by the College’s 2017 EAV, minus the

EAV of new construction for 2017 (projected to total $161 million) and dissolving TIF

totaling $13 million to produce the limiting rate.

The 2017 levy for the operating funds and special tax levy funds, which comprise

the “aggregate levy,” will increase by 4.97 percent. The debt service tax levy, which is

not subject to the PTELL tax cap, increases by 2.2 percent in 2017. The total debt service

tax levy is based on schedules of principal and interest payments set-out in the bond

resolutions, which were adopted and filed with the County Clerk when the bonds were

issued. Therefore, the debt service levy is not included in the annual tax levy resolution.

The $70,793,246 total of the 2017 aggregate levy and debt service levy, when combined,

represents an increase of 4.9 percent from the total 2016 tax extensions of $67,483,966.

The Lake County Clerk will notify the College District of the actual amount of tax

extensions for the 2017 aggregate levy after applying the tax cap formula, including the Agenda Item 7.3

November 21, 2017

Page 38

AGENDA ITEM NO. 7.3 – FINANCIAL (Continued) addition of the new property in the tax base. Based on assumptions indicated in the

projections above, it is anticipated that the tax rate for capped funds in 2017 will be

approximately $0.2695 per $100 of equalized assessed valuation, which is lower than the

$0.2780 rate in 2016.

The levy for the year 2017 will be allocated 50 percent to Fiscal Year 2018 and 50

percent to Fiscal Year 2019.

It is recommended that the Board of Trustees approve the attached resolution

adopting the 2017 tax levy.

Agenda Item 7.3

November 21, 2017

Page 39

AGENDA ITEM NO. 7.3 – FINANCIAL (Continued)

RESOLUTION ADOPTING 2017 TAX LEVY

WHEREAS, the 2017 estimated levies were presented to the Board of Trustees of

Community College District No. 532, County of Lake, State of Illinois, on

October 24, 2017; and,

WHEREAS, the aggregate levy for the year 2017 does not exceed 105% of the

taxes extended (plus any amounts abated prior to extension) on the College District’s

aggregate levy for the year 2017, such that the provisions of Sections 18-65 through 18-

85 of the Truth in Taxation Law do not apply to the adoption of the 2017 aggregate levy,

and the College District is not required to publish notice of or conduct a hearing thereon.

THEREFORE, BE IT RESOLVED that the Board of Trustees adopts the

following tax levies for 2017 and approves the filing of the attached Certificate of Tax

Levy for 2017 with the County Clerk as provided by statute:

Fund

Educational Purposes $54,138,352

Operations and Maintenance Purposes $14,402,340

Tort Immunity Purposes $471,390


Page 40


Trustee ________________ moved that the foregoing resolution be approved and

Trustee _______________ seconded said motion. Upon the roll being called, the

members voted as follows:

AYE:

NAY:

The Chair declared the motion duly adopted, this 21st day of November, 2017.

BOARD OF TRUSTEES COMMUNITY COLLEGE DISTRICT NO. 532 COUNTY OF LAKE, STATE OF ILLINOIS By: ______________________________________ Chair ATTEST: _______________________________ Secretary


Page 41


CERTIFICATE OF TAX LEVY FOR 2017

Community College District No. 532 County Lake .

Community College District Name: College of Lake and State of Illinois.

We hereby certify that we require: the sum of $54,138,352 to be levied as a tax for educational purposes (110

ILCS 805/3-1), and the sum of $14,402,340 to be levied as a tax for operations and maintenance

purposes (110 ILCS 805/3-1), and the sum of $ 0 to be levied as an additional tax for educational and

operations and maintenance purposes (110 ILCS 805/3-14.3), and

the sum of $ 471,390 to be levied as a special tax for purposes of the Local Governmental and Governmental Employees Tort Immunity Act (745 ICLS 10/9-107), and

the sum of $ 0 to be levied as a special tax for Social Security and Medicare insurance purposes (40 ILCS 5/21-110 and 5/21-110-1), and

the sum of $ 0 to be levied as a special tax for financial audit purposes (50 ILCS 310/9), and

the sum of $ 0 to be levied as a special tax for protection, health, and safety purposes (110 ILCS 805/3-20.3.01), and

the sum of $ 0 to be levied as a special tax for (specify) _________ purposes, on the taxable property of our community college district for the year 2016.

Signed this 21st day of November, 2017 .

Chair of the Board of Said Community College District

___________________________________

Secretary of the Board of Said Community College District


Page 42

AGENDA ITEM NO. 7.3 – FINANCIAL (Continued) When any community college district is authorized to issue bonds, the community college board shall file in the office of the county clerk in which any part of the community college district is situated a certified copy of the resolution providing for their issuance and levying a tax to pay them. The county clerk shall each year during the life of a bond issue extend the tax for bonds and interest set forth in the certified copy of the resolution. Therefore, to avoid a possible duplication of tax levies, the community college board should not include in its annual tax levy a levy for bonds and interest. Number of bond issues of said community college district which have not been paid in full Three (3) years as of 12/1/2017. This certificate of tax levy shall be filed with the county clerk of each county in which any part of the community college district is located on or before the last Tuesday in December. -----------------------------------------------------------------------------------------------------------

(DETACH AND RETURN TO COMMUNITY COLLEGE DISTRICT) This is to certify that the Certificate of Tax Levy for Community College No. _______ County(ies) of ________________________________________ and State of Illinois on the equalized assessed value of all taxable property of said community college district for the year 20____ was filed in the office of the County Clerk of this county on _______________________________, 20 ___. In addition to an extension of taxes authorized by levies made by the board of said community college district an additional extension(s) will be made, as authorized by resolution(s) on file in this office, to provide funds to retire bonds and pay interest thereon. The total amount, as approved in the original resolution(s), for said purpose for the year 20___ is $____________________________. __________________________ _________________________________ Date County Clerk and County


Page 43


CERTIFICATE OF COMPLIANCE WITH THE TRUTH IN TAXATION ACT

I, Richard A. Anderson, DO HEREBY CERTIFY that I am the Chair of the Board

of Trustees of the Community College District 532, County of Lake and State of Illinois.

I DO HEREBY FURTHER CERTIFY that the adoption of the 2017 aggregate tax

levy by said Board of Trustees did fully comply with the provisions of Sections 18-60

through 18-85 of THE TRUTH IN TAXATION LAW (35 ILCS 200/18-60 through 85).

The aggregate levy did not exceed a 5% increase over the prior year’s extension.

Therefore, a notice and public hearing were not necessary.

DATED: November 21, 2017

_______________________________ Chair, Board of Trustees


Page 44

AGENDA ITEM NO. 7.4 – FINANCIAL

RESOLUTION AUTHORIZING A SUPPLEMENTAL TAX LEVY TO PAY THE PRINCIPAL OF AND

INTEREST ON OUTSTANDING LIMITED BONDS OF COMMUNITY COLLEGE DISTRICT NO. 532, COUNTY OF LAKE AND STATE OF ILLINOIS

The attached resolution authorizes a supplemental property tax levy to pay debt

service on General Obligation Limited Tax Bonds, Series 2012. The debt service in levy

year 2017 will be $1,793,150 and the taxes originally extended were $1,744,529, which

results in the need for a supplemental tax levy of $36,635. See Exhibit A as part of the

attached resolution for a supplemental levy schedule, levy years 2017 to 2025. The

College has the authority based on state statute to adopt a supplemental levy causing the

amount of taxes levied to pay principal and interest on these bonds to be increased up to

the amount of the 2017 base, or the amount of the principal and interest due on the bonds

payable for the taxes levied for each levy year, whichever is less.


authorizing a supplemental tax levy.


Page 45


RESOLUTION AUTHORIZING A SUPPLEMENTAL TAX LEVY TO PAY THE PRINCIPAL OF AND

INTEREST ON OUTSTANDING LIMITED BONDS OF COMMUNITY COLLEGE DISTRICT NO. 532,

COUNTY OF LAKE AND STATE OF ILLINOIS.

MINUTES of a regular public meeting of the Board of Trustees of Community College District No. 532, County of Lake and State of Illinois, held in the Board Room at the Grayslake Campus, 19351 West Washington Street, Grayslake, Illinois, in said Community College District at 6:00 o’clock P.M., on the 21st day of November, 2017.

* * *

The meeting was called to order by the Chair and upon the roll being called,

Richard Anderson, the Chair, and the following Trustees were physically present at said location:

______________________________________________________________________________

_______________________ and __________________________ (non-voting student member).

The following Trustees were allowed by a majority of the members of the Board of

Trustees in accordance with and to the extent allowed by rules adopted by the Board of Trustees

to attend the meeting by video or audio conference: ____________________________________

______________________________________________________________________________

No Trustee was not permitted to attend the meeting by video or audio conference.

The following Trustees were absent and did not participate in the meeting in any manner

or to any extent whatsoever: _______________________________________________________

______________________________________________________________________________

The Chair announced that in view of the current financial condition of the District, the

Board of Trustees would consider the adoption of a resolution authorizing a supplemental tax

levy to pay the principal of and interest on certain outstanding limited bonds of the District.


Page 46


Whereupon Trustee ____________________ presented and the Secretary read by title a

resolution as follows, a copy of which was provided to each member of the Board of Trustees

prior to said meeting and to everyone in attendance at said meeting who requested a copy:


Page 47


RESOLUTION authorizing a supplemental tax levy to pay the principal of and interest on certain outstanding limited bonds of Community College District No. 532, County of Lake and State of Illinois.

* * *

WHEREAS, Community College District No. 532, County of Lake and State of Illinois (the

“District”), is a duly organized Community College District operating under the provisions of

the Public Community College Act of the State of Illinois, and all laws amendatory thereof and

supplementary thereto (the “College Act”); and

WHEREAS, the District has heretofore issued and has outstanding its General Obligation

Limited Tax Bonds, Series 2012 (the “Bonds”); and

WHEREAS, the Bonds were issued as limited bonds pursuant to and in accordance with the

provisions of Section 15.01 of the Local Government Debt Reform Act of the State of Illinois, as

amended (the “Debt Reform Act”); and

WHEREAS, pursuant to a resolution adopted by the Board of Trustees of the District (the

“Board”) on the 24th day of January, 2012, as supplemented by a Notification of Sale for the

Bonds, dated the 26th day of January, 2012, and as further supplemented by resolutions adopted

by the Board on the 18th day of November, 2014, and the 15th day of November, 2016

(collectively, the “Bond Resolution”), and in accordance with the provisions of the College Act

and the Debt Reform Act, the District has heretofore levied taxes upon all of the taxable property

within the District to pay the principal of and interest on the Bonds as set forth in Column (B) of

the schedule attached hereto as Exhibit A; and

WHEREAS, the Bond Resolution has been filed with the County Clerk of the County of

Lake, Illinois (the “County Clerk”); and


Page 48


WHEREAS, pursuant to the Bond Resolution, the District directed the County Clerk to

extend the taxes levied in the Bond Resolution to pay principal of and interest on the Bonds in

accordance with the terms of the Bond Resolution; and

WHEREAS, although the obligation of the District to pay the Bonds is a general obligation

under the College Act and all taxable property in the District is subject to the levy of taxes to pay

the Bonds without limitation as to rate, the amount of said taxes that will be extended to pay the

Bonds is limited by the Property Tax Extension Limitation Law of the State of Illinois, as

amended (the “Tax Extension Limitation Law”); and

WHEREAS, pursuant to and in accordance with the provisions of the Debt Reform Act, the

Bonds are payable from the debt service extension base of the District (the “Base”), which is an

amount equal to that portion of the extension of the District for the 1994 levy year constituting an

extension for payment of principal of and interest on bonds issued by the District without

referendum, but not including alternate bonds issued under Section 15 of the Debt Reform Act or

refunding obligations issued to refund or to continue to refund obligations of the District initially

issued pursuant to referendum, increased each year, commencing with the 2009 levy year, by the

lesser of 5% or the percentage increase in the Consumer Price Index (as defined in the Tax

Extension Limitation Law) during the 12-month calendar year preceding the levy year; and

WHEREAS, the Base for levy year 2017 is equal to $1,781,164.33 (the “2017 Base”); and

WHEREAS, the principal of and interest due on the Bonds is set forth in Column (A) of

Exhibit A and in certain levy years exceeds the taxes levied in the Bond Resolution; and

WHEREAS, in accordance with the College Act, the Debt Reform Act and the Tax

Extension Limitation Law, the District has the authority to adopt a supplemental levy causing the

amount of taxes levied to pay the principal of and interest on the Bonds to be increased up to the


Page 49


amount of the 2017 Base or the amount of the principal of and interest due on the Bonds payable

from the taxes levied for each such levy year, whichever is less; and

WHEREAS, the Board has heretofore determined and does hereby determine that it is

necessary and in the best interests of the District that the District adopt a supplemental tax levy to

pay the principal of and interest on the Bonds as further described herein:

NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the Board of Trustees of

Community College District No. 532, County of Lake and State of Illinois, as follows:

Section 1. The preambles to this Resolution are hereby found and determined to be

true, correct and complete and are hereby incorporated into this Resolution by this reference.

Section 2. The District does hereby levy for each of the years 2017 to 2025, inclusive,

the supplemental amounts set forth in Column (C) of Exhibit A, which levy shall be extended

against all of the taxable property in the District for the purpose of paying the principal of and

interest on the Bonds. The taxes herein levied shall be in addition to and in excess of the taxes

levied in the Bond Resolution. A schedule showing the aggregate of the taxes levied in the Bond

Resolution and the taxes levied in this Resolution is set forth in Column (D) of Exhibit A.

Section 3. Forthwith upon the passage of this Resolution, the Secretary of the Board is

hereby directed to file a certified copy of this Resolution with the County Clerk, and it shall be

the duty of the County Clerk to, in and for the years 2017 to 2025, inclusive, ascertain the rate

necessary to produce the tax as set forth in Column (D) of Exhibit A, and extend the same for

collection on the tax books against all of the taxable property within the District in connection

with other taxes levied in each of said years for community college purposes, in order to raise the

respective amount aforesaid and in each of said years such annual tax shall be computed,

extended and collected in the same manner as now or hereafter provided by law for the

computation, extension and collection of taxes for general community college purposes of the


Page 50


District, and when collected, the taxes hereby levied shall be placed to the credit of the special

funds heretofore created and designated in the Bond Resolution as the “Bond and Interest Fund

Account of 2012” which taxes are hereby irrevocably pledged to and shall be used only for the

purpose of paying the principal of and interest on the Bonds; and a certified copy of this

Resolution shall also be filed with the Treasurer of the Board.

Section 4. If any section, paragraph, clause or provision of this Resolution shall be

held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such

section, paragraph, clause or provision shall not affect any of the remaining provisions of this

Resolution.

Section 5. All resolutions or parts thereof in conflict herewith be and the same are

hereby repealed and that this Resolution shall be in full force and effect forthwith upon its

adoption.

Adopted November 21, 2017.

_______________________________________ Chair, Board of Trustees

_______________________________________ Secretary, Board of Trustees


Page 51


Trustee _______________________ moved and Trustee ________________________

seconded the motion that said resolution as presented and read by title be adopted.

After a full and complete discussion thereof, the Chair directed the Secretary to call the

roll for a vote upon the motion to adopt said resolution.

Upon the roll being called, the following Trustees voted AYE: _____________________

_____________________________________________________________________________ .

NAY: __________________________________________________________________

Whereupon the Chair declared the motion carried and said resolution adopted, and in

open meeting approved and signed said resolution and directed the Secretary to record the same

in full in the records of the Board of Trustees of Community College District No. 532, County of

Lake and State of Illinois, which was done.

Other business not pertinent to the adoption of said resolution was duly transacted at said

meeting.

Upon motion duly made, seconded and carried, the meeting was adjourned.



Page 52


EXHIBIT A

SUPPLEMENTAL AND TOTAL TAXES LEVIED AND TO BE EXTENDED

YEAR OF

LEVY

(A) DEBT

SERVICE ON THE BONDS

(B) TAXES LEVIED IN

2012, 2014 AND 2016

(C) 2017

SUPPLEMENTAL TAX LEVY

(D) TOTAL TAXES TO BE

EXTENDED TO PRODUCE

2017 $1,793,150.00 $1,744,529.22 $36,635.11 $1,781,164.33 2018 1,819,700.00 1,744,529.22 36,635.11 1,781,164.33 2019 1,847,475.00 1,744,529.22 36,635.11 1,781,164.33 2020 1,870,975.00 1,744,529.22 36,635.11 1,781,164.33 2021 1,902,225.00 1,744,529.22 36,635.11 1,781,164.33 2022 1,931,075.00 1,744,529.22 36,635.11 1,781,164.33 2023 1,957,525.00 1,744,529.22 36,635.11 1,781,164.33 2024 1,986,500.00 1,744,529.22 36,635.11 1,781,164.33 2025 1,618,925.00 1,618,925.00 0.00 1,618,925.00


Page 53


STATE OF ILLINOIS ) ) SS COUNTY OF LAKE )

CERTIFICATION OF MINUTES AND RESOLUTION

I, the undersigned, do hereby certify that I am the duly qualified and acting Secretary of the Board of Trustees of Community College District No. 532, County of Lake and State of Illinois (the “Board”), and that as such official I am the keeper of the records and files of the Board.

I do further certify that the foregoing constitutes a full, true and complete transcript of the minutes of the meeting of the Board held on the 21st day of November, 2017, insofar as same relates to the adoption of a resolution entitled:


a true, correct and complete copy of which said resolution as adopted at said meeting appears in the foregoing transcript of the minutes of said meeting.

I do further certify that the deliberations of the Board on the adoption of said resolution were conducted openly, that the vote on the adoption of said resolution was taken openly, that said meeting was held at a specified time and place convenient to the public, that notice of said meeting was duly given to all of the news media requesting such notice, that an agenda for said meeting was posted at the location where said meeting was held and at the principal office of the Board at least 96 hours in advance of the holding of said meeting, that at least one copy of said agenda was continuously available for public review during the entire 96-hour period preceding said meeting, that said agenda contained a separate specific item concerning the proposed adoption of said resolution, that said meeting was called and held in strict compliance with the provisions of the Open Meetings Act of the State of Illinois, as amended, and with the provisions of the Public Community College Act of the State of Illinois, as amended, and that the Board has complied with all of the provisions of said Acts and with all of the procedural rules of the Board in the conduct of said meeting and in the adoption of said resolution.

IN WITNESS WHEREOF, I hereunto affix my official signature, this 21st day of November, 2017.



Page 54



FILING CERTIFICATE

I, the undersigned, do hereby certify that I am the duly qualified and acting County Clerk

of The County of Lake, Illinois, and as such official I do further certify that on the ____ day of

___________ , 201__, there was filed in my office a duly certified copy of a resolution entitled:


duly adopted by the Board of Trustees of the District on the 21st day of November, 2017, and

that the same has been deposited in the official files and records of my office.

IN WITNESS WHEREOF, I hereunto affix my official signature, this 21st day of November,

2017.

.

_______________________________________ County Clerk

[SEAL]


Page 55



FILING CERTIFICATE

I, the undersigned, do hereby certify that I am the duly qualified and acting Treasurer of

the Board of Trustees of Community College District No. 532, County of Lake and State of

Illinois (the “District”), and as such official I do further certify that on the 21st day of

November, 2017, there was filed in my office a duly certified copy of a resolution entitled:


duly adopted by the Board of Trustees of the District on the 21st day of November, 2017, and

that the same has been deposited in the official files and records of my office.


2017.

_______________________________________ Treasurer, Board of Trustees


Page 56


RESOLUTION ABATING THE TAX HERETOFORE LEVIED FOR THE YEAR 2017 TO PAY DEBT

SERVICE ON GENERAL OBLIGATION BONDS (ALTERNATE REVENUE SOURCE), SERIES 2013A,

AND GENERAL OBLIGATION BONDS (ALTERNATE REVENUE SOURCE), SERIES 2013B, OF

COMMUNITY COLLEGE DISTRICT NO. 532, COUNTY OF LAKE AND STATE OF ILLINOIS

The attached resolution abates the property taxes levied for the year 2017 to pay

debt service on Series 2013A and B alternate revenue bonds issued in September 2013.

The college has determined that the debt service levy for these bonds can be eliminated for

tax year 2017 since the pledged Education Fund revenues will be available to pay principal

and interest. The abatement resolution is required to be filed with the Lake County Clerk

no later than March 15, 2018.


abating the 2017 tax levy.


Page 57


RESOLUTION ABATING THE TAX HERETOFORE LEVIED FOR THE YEAR 2017 TO PAY DEBT

SERVICE ON GENERAL OBLIGATION BONDS (ALTERNATE REVENUE SOURCE), SERIES 2013A,

AND GENERAL OBLIGATION BONDS (ALTERNATE REVENUE SOURCE), SERIES 2013B, OF

COMMUNITY COLLEGE DISTRICT NO. 532, COUNTY OF LAKE AND STATE OF ILLINOIS

MINUTES of a regular public meeting of the Board of Trustees of Community College District No. 532, County of Lake and State of Illinois, held in A013 (Board Room) at the Grayslake Campus, 19351 West Washington Street, Grayslake, Illinois in said Community College District at 6:00 o’clock P.M., on the 21st day of November, 2017.

* * *

The meeting was called to order by the Chair and upon the roll being called,

__________________, the Chair, and the following Trustees were physically present at

said location: _____________________________________________________________

_______________________________________________________________________

________________ and __________________________ (non-voting student member).

The following Trustees were allowed by a majority of the members of the Board of

Trustees in accordance with and to the extent allowed by rules adopted by the Board of

Trustees to attend the meeting by video or audio conference: _______________________

_______________________________________________________________________

No Member was not permitted to attend the meeting by video or audio conference.

The following Trustees were absent and did not participate in the meeting in any

manner or to any extent whatsoever: __________________________________________

_______________________________________________________________________


Page 58


The Chair announced that the next item of business before the Board of Trustees

was the consideration of a resolution abating the tax heretofore levied for the year 2017 to

pay debt service on the General Obligation Bonds (Alternate Revenue Source),

Series 2013A, and General Obligation Bonds (Alternate Revenue Source), Series 2013B,

of the District.

Whereupon Member ______________________________ presented and the

Secretary read by title a resolution as follows, copies of which were made available to all

in attendance at said meeting who requested a copy:


Page 59


RESOLUTION abating the tax heretofore levied for the year 2017 to pay debt service on General Obligation Bonds (Alternate Revenue Source), Series 2013A, and General Obligation Bonds (Alternate Revenue Source), Series 2013B, of Community College District No. 532, County of Lake and State of Illinois.

* * *

WHEREAS, the Board of Trustees (the “Board”) of Community College District No.

532, County of Lake and State of Illinois (the “District”), by resolution adopted on the

21st day of May, 2013, as amended by notifications of sale (the “Resolution”), did provide

for the issue of $31,690,000 General Obligation Bonds (Alternate Revenue Source),

Series 2013A, and $26,790,000 General Obligation Bonds (Alternate Revenue Source),

Series 2013B (together, the “Bonds”), and the levy of a direct annual tax sufficient to pay

the principal of and interest on the Bonds; and

Whereas the District hereby determines that the Pledged Revenues (as defined in

the Resolution) are or will be available to pay the principal of and interest on the Bonds

when due in the following bond year, so as to enable the abatement of the Pledged Taxes

(as defined in the Resolution) levied for the same; and

WHEREAS, it is necessary and in the best interests of the District that the tax

heretofore levied for the year 2017 to pay principal and interest on the Bonds be abated:

NOW, THEREFORE, Be It and It is Hereby Resolved by the Board of Trustees of

Community College District No. 532, County of Lake and State of Illinois, as follows:

Section 1. Incorporation of Preambles. The Board hereby finds that all of the

recitals contained in the preambles to this Resolution are full, true and correct and does

incorporate them into this Resolution by this reference.

Section 2. Abatement of Tax. The tax heretofore levied for the year 2017 in the

Resolution is hereby abated in its entirety.


Page 60


Section 3. Filing of Resolution. Forthwith upon the adoption of this resolution,

the Secretary of the Board shall file a certified copy hereof with the County Clerk of the

County of Lake, Illinois, and it shall be the duty of said County Clerk to abate said tax

levied for the year 2017 in accordance with the provisions hereof.

Section 4. Effective Date. This resolution shall be in full force and effect forthwith

upon its adoption.

Adopted November 21, 2017

____________________________ Chair, Board of Trustees

____________________________ Secretary, Board of Trustees


Page 61


Trustee ___________________ moved and Trustee ____________________


After a full discussion thereof, the Chair directed that the roll be called for a vote

upon the motion to adopt said resolution.

Upon the roll being called, the following Trustees voted AYE:

___________________ ___________________________________________________ .

NAY: ____________________________________________________________

Whereupon the Chair declared the motion carried and said resolution adopted, and

in open meeting approved and signed said resolution and directed the Secretary to record

the same in full in the records of the Board of Trustees of Community College District No.

532, County of Lake and State of Illinois, which was done.

Other business not pertinent to the adoption of said resolution was duly transacted

at the meeting.


______________________________ Secretary, Board of Trustees


Page 62



CERTIFICATION OF RESOLUTION AND MINUTES

I, the undersigned, do hereby certify that I am the duly qualified and acting Secretary of the Board of Trustees (the “Board”) of Community College District No. 532, County of Lake and State of Illinois (the “District”), and as such official I am the keeper of the records and files of the District and the Board.




I do further certify that the deliberations of the Board on the adoption of said resolution were conducted openly, that the vote on the adoption of said resolution was taken openly, that said meeting was called and held at a specified time and place convenient to the public, that notice of said meeting was duly given to all of the news media requesting such notice, that an agenda for said meeting was posted at the location where said meeting was held and at the principal office of the Board at least 96 hours in advance of the holding of said meeting, that at least one copy of said agenda was continuously available for public review during the entire 96-hour period preceding said meeting, that said agenda contained a separate specific item concerning the proposed adoption of said resolution, that said meeting was called and held in strict compliance with the provisions of the Open Meetings Act of the State of Illinois, as amended, and with the provisions of the Public Community College Act of the State of Illinois, as amended, and that the Board has complied with all of the provisions of said Acts and with all of the procedural rules of the Board in the passage of said resolution.


____________________________ Secretary, Board of Trustees


Page 63



FILING CERTIFICATE

I, the undersigned, do hereby certify that I am the duly qualified and acting County

Clerk of The County of Lake, Illinois, and as such official I do further certify that on the

____ day of _____________, 2017, there was filed in my office a duly certified copy of a

resolution entitled:


duly adopted by the Board of Trustees of the Community College District No. 532, County

of Lake and State of Illinois, on the 21st day of November, 2017, and that the same has

been deposited in the official files and records of my office.

I do further certify that the tax heretofore levied for the year 2017 for the payment

of General Obligation Bonds (Alternate Revenue Source), Series 2013A, and General

Obligation Bonds (Alternate Revenue Source), Series 2013B, as described in said

resolution will be abated in its entirety as provided in said resolution.

IN WITNESS WHERETO, I hereunto affix my official signature and the seal of said

County, this ____ day of ___________, 2017.

_________________________________ County Clerk

(SEAL)


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ALTERNATE BOND REFUNDING RESOLUTION -- RESOLUTION PROVIDING FOR THE ISSUE OF NOT TO EXCEED $57,000,000 GENERAL

OBLIGATION REFUNDING BONDS (ALTERNATE REVENUE SOURCE) OF COMMUNITY COLLEGE DISTRICT NO. 532, FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING BONDS OF SAID DISTRICT, PROVIDING FOR THE PLEDGE OF CERTAIN REVENUES TO THE

PAYMENT OF PRINCIPAL AND INTEREST ON SAID BONDS AND THE LEVY OF A DIRECT ANNUAL TAX SUFFICIENT TO PAY SUCH PRINCIPAL

AND INTEREST IF THE PLEDGED REVENUES ARE INSUFFICIENT TO MAKE SUCH PAYMENT, AND AUTHORIZING THE SALE OF SAID BONDS

TO THE PURCHASER THEREOF

The attached resolution is asking the Board to allow the College of Lake County (College)

to pursue a potential refunding of outstanding debt that would allow the College to realize debt

service savings. The bonds being evaluated for potential refunding include Series 2013A (General

Obligation, Alternate Revenue Source Bonds) and Series 2013B (General Obligation, Alternate

Revenue Source Bonds). While the College is requesting refunding authorization at this time, the

College would only pursue the refundings if savings over 3% were achieved. Additionally, under

State law, debt service on the refunding bonds must be less than debt service on the refunded bonds

in any given year. The College is pursuing authorization at this time due to a number of factors,

including historically low interest rates and the College’s strong rating of Aaa which helps limit

the cost of debt. Additionally, the opportunity to pursue these advanced refundings for savings

may be in jeopardy post 2017, depending on what occurs with tax reform legislation at the federal

level.


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MINUTES OF A REGULAR PUBLIC MEETING OF THE BOARD OF TRUSTEES OF COMMUNITY COLLEGE DISTRICT NO. 532, COUNTY OF LAKE AND STATE OF ILLINOIS, HELD IN THE BOARD ROOM AT THE GRAYSLAKE CAMPUS, 19351 WEST WASHINGTON STREET, GRAYSLAKE, ILLINOIS, IN SAID COMMUNITY COLLEGE DISTRICT AT 6:00 O’CLOCK P.M., ON THE 21ST DAY OF NOVEMBER, 2017.

* * *

The meeting was called to order by the Chair, and upon the roll being called,

Richard Anderson, the Chair, and the following Trustees were physically present at said

location: ________________________________________________________________

_______________________________________________________________________

____________________ and ______________________ (non-voting student member).

The following Trustees were allowed by a majority of the trustees of the Board of

Trustees in accordance with and to the extent allowed by rules adopted by the Board of

Trustees to attend the meeting by video or audio conference: _______________________

_______________________________________________________________________




_______________________________________________________________________

The Chair announced that the next item for consideration was the issuance of not to

exceed $57,000,000 General Obligation Refunding Bonds (Alternate Revenue Source) to

be issued by the District pursuant to Article 3A of the Public Community College Act of

the State of Illinois, as amended, and the Local Government Debt Reform Act of the State

of Illinois, as amended, for the purpose of refunding certain of the District’s outstanding

bonds and that the Board of Trustees would consider the adoption of a resolution providing

for the pledge of certain Agenda Item 7.6

November 21, 2017

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revenues to the payment of principal and interest on the Bonds and the levy of a direct

annual tax sufficient to pay the principal of and interest if the pledged revenues are

insufficient to make such payment. The Chair then explained that the resolution sets forth

the parameters for the issuance of said bonds and sale thereof by designated officials of the

District and summarized the pertinent terms of said parameters, including the specific

parameters governing the manner of sale, length of maturity, rates of interest, purchase

price and tax levy for said bonds.

Whereupon Trustee _________________ presented and the Secretary read by title

a resolution as follows, a copy of which was provided to each member of the Board of

Trustees prior to said meeting and to everyone in attendance at said meeting who requested

a copy:


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RESOLUTION providing for the issue of not to exceed $57,000,000 General Obligation Refunding Bonds (Alternate Revenue Source) of Community College District No. 532, County of Lake and State of Illinois, for the purpose of refunding certain outstanding bonds of said District, providing for the pledge of certain revenues to the payment of principal and interest on said bonds and the levy of a direct annual tax sufficient to pay such principal and interest if the pledged revenues are insufficient to make such payment, and authorizing the sale of said bonds to the purchaser thereof.

* * *


“District”), has outstanding General Obligation Bonds (Alternate Revenue Source), Series 2013A,

dated September 18, 2013 (the “2013A Bonds”), and General Obligation Bonds (Alternate

Revenue Source), Series 2013B, dated September 27, 2013 (the “2013B Bonds” and together with

the 2013A Bonds, the “Prior Bonds”); and

WHEREAS, the Board of Trustees of the District (the “Board”) has determined that it is

necessary and desirable to refund all or a portion of the 2013A Bonds (said 2013A Bonds to be

refunded being referred to herein as the “Refunded 2013A Bonds”) and certain of the 2013B Bonds

(said 2013B Bonds to be refunded being referred to herein as the “Refunded 2013B Bonds” and,

together with the Refunded 2013A Bonds, the “Refunded Bonds”) in order to realize debt service

savings for the District (the “Refunding”); and

WHEREAS, the Refunded Bonds shall be fully described in the Escrow Agreement referred

to in Section 15 hereof and are presently outstanding and unpaid and are binding and subsisting

legal obligations of the District; and

WHEREAS, the Refunding constitutes a lawful corporate purpose within the meaning of the

Local Government Debt Reform Act of the State of Illinois, as amended (the “Debt Reform Act”);

and


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WHEREAS, the Board has determined that in order to accomplish the Refunding, it is

necessary and in the best interests of the District to borrow not to exceed $57,000,000 and issue

alternate bonds (the “Refunding Bonds”), being general obligation bonds payable from (a) student

capital assessment fees, taxes, grants, state aid, interest earnings and other revenues received by

the District and available to be expended for the improvement, maintenance, repair and benefit of

community college and administrative buildings and property (the ”Pledged Revenues”) and

(b) ad valorem property taxes levied upon all of the taxable property in the District without

limitation as to rate or amount (the “Pledged Taxes”), all in accordance with the Debt Reform Act;

and

WHEREAS, Section 15 of the Debt Reform Act provides that alternate bonds may be issued

to refund other alternate bonds without meeting any of the requirements set forth in Section 15 of

the Debt Reform Act, except that the term of the refunding bonds shall not be longer than the term

of the bonds being refunded and that the debt service payable in any year on the refunding bonds

shall not exceed the debt service payable in such year on the bonds being refunded; and

WHEREAS, the term of the portion of the Refunding Bonds to be issued for the purpose of

refunding the Refunded 2013A Bonds (the “2013A Refunding Portion”) will not be longer than

the term of the Refunded 2013A Bonds, and the debt service payable in any year on the 2013A

Refunding Portion will not exceed the debt service payable in such year on the Refunded 2013A

Bonds; and

WHEREAS, the term of the portion of the Refunding Bonds to be issued for the purpose of

refunding the Refunded 2013B Bonds (the “2013B Refunding Portion”) will not be longer than

the term of the Refunded 2013B Bonds, and the debt service payable in any year on the 2013B

Refunding Portion will not exceed the debt service payable in such year on the Refunded 2013B

Bonds; and


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WHEREAS, the Bonds to be issued will be payable from the Pledged Revenues and the

Pledged Taxes; and

WHEREAS, other than the Prior Bonds, the District does not have outstanding any alternate

bonds within the meaning of the Debt Reform Act; and

WHEREAS, the Refunding Bonds will be issued on a parity with the Prior Bonds not

refunded (the “Parity Bonds”), with respect to the Pledged Revenues in compliance with the Debt

Reform Act; and

WHEREAS, the Property Tax Extension Limitation Law of the State of Illinois, as amended

(the “Tax Cap Law”), imposes certain limitations on the “aggregate extension” of certain property

taxes levied by the District, but provides that the definition of “aggregate extension” contained in

the Tax Cap Law does not include extensions made for any taxing district subject to the Tax Cap

Law to pay interest or principal on bonds issued under Section 15 of the Debt Reform Act; and

WHEREAS, the Board does hereby find and determine that the Refunding Bonds will be

issued under Section 15 of the Debt Reform Act; and

WHEREAS, the County Clerk of The County of Lake, Illinois (the “County Clerk”), is

therefore authorized to extend and collect said tax so levied for the payment of said alternate bonds

without limitation as to rate or amount:

NOW, THEREFORE, Be It and It Is Hereby Resolved by the Board of Trustees of Community

College District No. 532, County of Lake and State of Illinois, as follows:

Section 1. Incorporation of Preambles. The Board hereby finds that all of the recitals

contained in the preambles to this Resolution are full, true and correct and does incorporate them

into this Resolution by this reference.

Section 2. Authorization. It is hereby found and determined that the Board has been

authorized by law to borrow the sum of not to exceed $57,000,000 upon the credit of the District


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and as evidence of such indebtedness to issue alternate bonds, being general obligation bonds

payable from the Pledged Revenues as provided by the Debt Reform Act, to said amount, the

proceeds of said alternate bonds to be used for the Refunding, and that it is necessary and for the

best interests of the District that there be issued not to exceed $57,000,000 of the alternate bonds

so authorized.

Section 3. Bond Details. There be borrowed on the credit of and for and on behalf of

the District not to exceed an aggregate amount of not to exceed $57,000,000 for the purpose

aforesaid; and the bonds of the District (the “Bonds”) shall be issued to said amount and shall be

designated “General Obligation Refunding Bonds (Alternate Revenue Source), Series 201__” with

such series designation as set forth in the Bond Notification (as hereinafter defined). The Bonds

shall be issued in an amount not to exceed $57,000,000 (the 2013A Refunding Portion not to

exceed $32,000,000 and the 2013B Refunding Portion not to exceed $25,000,000), shall be dated

such date (not later than May 31, 2018) as set forth in the Bond Notification, and shall also bear

the date of authentication, shall be in fully registered form, shall be in denominations of $5,000

each or authorized integral multiples thereof, unless otherwise provided in the Bond Notification

(but no single Bond shall represent installments of principal maturing on more than one date), and

shall be numbered 1 and upward. The Bonds shall become due and payable serially or be subject

to mandatory redemption (subject to prior redemption as hereinafter set forth) on June 1 of each

of the years (not later than 2034), in the amounts (not exceeding $7,000,000 per year for the 2013A

Refunding Portion and not exceeding $5,000,000 for the 2013B Refunding Portion) and bearing

interest at the rates per annum (not exceeding 9.00% per annum) as set forth in the Bond

Notification.

The Bonds shall bear interest from their date or from the most recent interest payment date

to which interest has been paid or duly provided for, until the principal amount of the Bonds is


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paid, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being

payable semi-annually, commencing with the first interest payment date as set forth in the Bond

Notification, and on June 1 and December 1 of each year thereafter to maturity.

Interest on each Bond shall be paid by check or draft of the bond registrar and paying agent

(which shall be the Treasurer of the Board, the Purchaser (as hereinafter defined) or a bank or trust

company authorized to do business in the State of Illinois) set forth in the Bond Notification (the

“Bond Registrar”), payable upon presentation in lawful money of the United States of America,

to the person in whose name such Bond is registered at the close of business on the 15th day of the

month next preceding the interest payment date. The principal of the Bonds shall be payable in

lawful money of the United States of America at the principal corporate trust office of the Bond

Registrar.

The Bonds shall be signed by the manual or duly authorized facsimile signatures of the

Chair and Secretary of the Board, and shall be registered, numbered and countersigned by the

manual or duly authorized facsimile signature of the Treasurer of the Board, as they shall

determine, and in case any officer whose signature shall appear on any Bond shall cease to be such

officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient

for all purposes, the same as if such officer had remained in office until delivery.

All Bonds shall have thereon a certificate of authentication substantially in the form

hereinafter set forth duly executed by the Bond Registrar as authenticating agent of the District

and showing the date of authentication. No Bond shall be valid or obligatory for any purpose or

be entitled to any security or benefit under this Resolution unless and until such certificate of

authentication shall have been duly executed by the Bond Registrar by manual signature, and such

certificate of authentication upon any such Bond shall be conclusive evidence that such Bond has

been authenticated and delivered under this Resolution. The certificate of authentication on any


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Bond shall be deemed to have been executed by the Bond Registrar if signed by an authorized

officer of the Bond Registrar, but it shall not be necessary that the same officer sign the certificate

of authentication on all of the Bonds issued hereunder.

Section 4. Registration of Bonds; Persons Treated as Owners. (a) General. The

District shall cause books (the “Bond Register”) for the registration and for the transfer of the

Bonds as provided in this Resolution to be kept at the principal corporate trust office of the Bond

Registrar, which is hereby constituted and appointed the registrar of the District. The District is

authorized to prepare, and the Bond Registrar shall keep custody of, multiple Bond blanks

executed by the District for use in the transfer and exchange of Bonds.

Upon surrender for transfer of any Bond at the principal corporate trust office of the Bond

Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in

form satisfactory to the Bond Registrar and duly executed by, the registered owner or his or her

attorney duly authorized in writing, the District shall execute and the Bond Registrar shall

authenticate, date and deliver in the name of the transferee or transferees a new fully registered

Bond or Bonds of the same maturity of authorized denominations, for a like aggregate principal

amount. Any fully registered Bond or Bonds may be exchanged at said office of the Bond

Registrar for a like aggregate principal amount of Bond or Bonds of the same maturity of other

authorized denominations. The execution by the District of any fully registered Bond shall

constitute full and due authorization of such Bond and the Bond Registrar shall thereby be

authorized to authenticate, date and deliver such Bond, provided, however, the principal amount

of outstanding Bonds of each maturity authenticated by the Bond Registrar shall not exceed the

authorized principal amount of Bonds for such maturity less previous retirements.

The Bond Registrar shall not be required to transfer or exchange any Bond during the

period beginning at the close of business on the 15th day of the month next preceding any interest


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payment date on such Bond and ending at the opening of business on such interest payment date,

nor to transfer or exchange any Bond after notice calling such Bond for redemption has been

mailed, nor during a period of fifteen (15) days next preceding mailing of a notice of redemption

of any Bonds.

The person in whose name any Bond shall be registered shall be deemed and regarded as

the absolute owner thereof for all purposes, and payment of the principal of or interest on any Bond

shall be made only to or upon the order of the registered owner thereof or his legal representative.

All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond

to the extent of the sum or sums so paid.

No service charge shall be made for any transfer or exchange of Bonds, but the District or

the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental

charge that may be imposed in connection with any transfer or exchange of Bonds except in the

case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond surrendered for

redemption.

(b) Global Book-Entry System. The Bonds shall be initially issued in the form of a

separate single fully registered Bond for each of the maturities of the Bonds determined as

described in Section 3 hereof. If requested by the Purchaser, upon initial issuance, the ownership

of each such Bond shall be registered in the Bond Register in the name of Cede & Co., or any

successor thereto (“Cede”), as nominee of The Depository Trust Company, New York, New York,

and its successors and assigns (“DTC”). In such event, all of the outstanding Bonds shall be

registered in the Bond Register in the name of Cede, as nominee of DTC, except as hereinafter

provided. The Chair and Secretary of the Board, the Vice-President of Administrative Affairs and

the Controller of the District and the Bond Registrar are each authorized to execute and deliver,

on behalf of the District, such letters to or agreements with DTC as shall be necessary to effectuate


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such book-entry system (any such letter or agreement being referred to herein as the

“Representation Letter”), which Representation Letter may provide for the payment of principal

of or interest on the Bonds by wire transfer.

With respect to Bonds registered in the Bond Register in the name of Cede, as nominee of

DTC, the District and the Bond Registrar shall have no responsibility or obligation to any broker-

dealer, bank or other financial institution for which DTC holds Bonds from time to time as

securities depository (each such broker-dealer, bank or other financial institution being referred to

herein as a “DTC Participant”) or to any person on behalf of whom such a DTC Participant holds

an interest in the Bonds. Without limiting the immediately preceding sentence, the District and

the Bond Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the

records of DTC, Cede or any DTC Participant with respect to any ownership interest in the Bonds,

(ii) the delivery to any DTC Participant or any other person, other than a registered owner of a

Bond as shown in the Bond Register, of any notice with respect to the Bonds, including any notice

of redemption, or (iii) the payment to any DTC Participant or any other person, other than a

registered owner of a Bond as shown in the Bond Register, of any amount with respect to the

principal of or interest on the Bonds. The District and the Bond Registrar may treat and consider

the person in whose name each Bond is registered in the Bond Register as the holder and absolute

owner of such Bond for the purpose of payment of principal and interest with respect to such Bond,

for the purpose of giving notices of redemption and other matters with respect to such Bond, for

the purpose of registering transfers with respect to such Bond, and for all other purposes

whatsoever. The Bond Registrar shall pay all principal of and interest on the Bonds only to or

upon the order of the respective registered owners of the Bonds, as shown in the Bond Register,

or their respective attorneys duly authorized in writing, and all such payments shall be valid and

effective to fully satisfy and discharge the District’s obligations with respect to payment of the


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principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other

than a registered owner of a Bond as shown in the Bond Register, shall receive a Bond evidencing

the obligation of the District to make payments of principal and interest with respect to any Bond.

Upon delivery by DTC to the Bond Registrar of written notice to the effect that DTC has

determined to substitute a new nominee in place of Cede, and subject to the provisions in Section 3

hereof with respect to the payment of interest to the registered owners of Bonds at the close of

business on the 15th day of the month next preceding the applicable interest payment date, the

name “Cede” in this resolution shall refer to such new nominee of DTC.

In the event that (i) the District determines that DTC is incapable of discharging its

responsibilities described herein and in the Representation Letter, (ii) the agreement among the

District, the Bond Registrar and DTC evidenced by the Representation Letter shall be terminated

for any reason or (iii) the District determines that it is in the best interests of the beneficial owners

of the Bonds that they be able to obtain certificated Bonds, the District shall notify DTC and DTC

Participants of the availability through DTC of certificated Bonds and the Bonds shall no longer

be restricted to being registered in the Bond Register in the name of Cede, as nominee of DTC. At

that time, the District may determine that the Bonds shall be registered in the name of and deposited

with such other depository operating a universal book-entry system, as may be acceptable to the

District, or such depository’s agent or designee, and if the District does not select such alternate

universal book-entry system, then the Bonds may be registered in whatever name or names

registered owners of Bonds transferring or exchanging Bonds shall designate, in accordance with

the provisions of Section 4(a) hereof.

Notwithstanding any other provisions of this resolution to the contrary, so long as any Bond

is registered in the name of Cede, as nominee of DTC, all payments with respect to principal of


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and interest on such Bond and all notices with respect to such Bond shall be made and given,

respectively, in the name provided in the Representation Letter.

Section 5. Redemption. (a) Optional Redemption. All or a portion of the Bonds, if any,

specified in the Bond Notification shall be subject to redemption prior to maturity at the option of

the District from any available funds, as a whole or in part, and if in part in integral multiples of

$5,000 in any order of their maturity as determined by the District (less than all of the Bonds of a

single maturity to be selected by the Bond Registrar), on the date specified in the Bond Notification

(but not later than June 1, 2028), and on any date thereafter, at the redemption price of par plus

accrued interest to the date fixed for redemption.

(b) Mandatory Redemption. The Bonds maturing on the date or dates, if any, indicated

in the Bond Notification therefor are subject to mandatory redemption, in integral multiples of

$5,000 selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to

the redemption date on June 1 of the years, if any, and in the principal amounts, if any, as indicated

in said Bond Notification.

The principal amounts of Bonds to be mandatorily redeemed in each year may be reduced

through the earlier optional redemption thereof, with any partial optional redemptions of such

Bonds credited against future mandatory redemption requirements in such order of the mandatory

redemption dates as the District may determine. In addition, on or prior to the 60th day preceding

any mandatory redemption date, the Bond Registrar may, and if directed by the Board shall,

purchase Bonds required to be retired on such mandatory redemption date. Any such Bonds so

purchased shall be cancelled and the principal amount thereof shall be credited against the

mandatory redemption required on such next mandatory redemption date.

(c) General. The Bonds shall be redeemed only in the principal amount of $5,000 and

integral multiples thereof. The District shall, at least forty-five (45) days prior to any optional


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redemption date (unless a shorter time period shall be satisfactory to the Bond Registrar) notify

the Bond Registrar of such redemption date and of the principal amount, series and maturity or

maturities of Bonds to be redeemed. For purposes of any redemption of less than all of the

outstanding Bonds of a single series and maturity, the particular Bonds or portions of Bonds to be

redeemed shall be selected by lot by the Bond Registrar from the Bonds of such series and maturity

by such method of lottery as the Bond Registrar shall deem fair and appropriate; provided that

such lottery shall provide for the selection for redemption of Bonds or portions thereof so that any

$5,000 Bond or $5,000 portion of a Bond shall be as likely to be called for redemption as any other

such $5,000 Bond or $5,000 portion. The Bond Registrar shall make such selection upon the

earlier of the irrevocable deposit of funds with an escrow agent sufficient to pay the redemption

price of the Bonds to be redeemed or the time of the giving of official notice of redemption.

The Bond Registrar shall promptly notify the District in writing of the Bonds or portions

of Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the

principal amount thereof to be redeemed.

Section 6. Redemption Procedure. Unless waived by any holder of Bonds to be

redeemed, notice of the call for any such redemption shall be given by the Bond Registrar on behalf

of the District by mailing the redemption notice by first class mail at least thirty (30) days and not

more than sixty (60) days prior to the date fixed for redemption to the registered owner of the Bond

or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is

furnished in writing by such registered owner to the Bond Registrar.

All notices of redemption shall state:

(1) the redemption date,

(2) the redemption price,


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(3) if less than all outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed,

(4) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date,

(5) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the Principal Office of the Bond Registrar, and

(6) such other information then required by custom, practice or industry standard.

Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed at the

option of the District shall have been received by the Bond Registrar prior to the giving of such

notice of redemption, such notice may, at the option of the District, state that said redemption shall

be conditional upon the receipt of such moneys by the Bond Registrar on or prior to the date fixed

for redemption. If such moneys are not received, such notice shall be of no force and effect, the

District shall not redeem such Bonds, and the Bond Registrar shall give notice, in the same manner

in which the notice of redemption shall have been given, that such moneys were not so received

and that such Bonds will not be redeemed. Otherwise, prior to any redemption date, the District

shall deposit with the Bond Registrar an amount of money sufficient to pay the redemption price

of all the Bonds or portions of Bonds which are to be redeemed on that date.

Subject to the provisions for a conditional redemption described above, notice of

redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed

shall, on the redemption date, become due and payable at the redemption price therein specified,

and from and after such date (unless the District shall default in the payment of the redemption

price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds

for redemption in accordance with said notice, such Bonds shall be paid by the Bond Registrar at

the redemption price. Installments of interest due on or prior to the redemption date shall be


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payable as herein provided for payment of interest. Upon surrender for any partial redemption of

any Bond, there shall be prepared for the registered holder a new Bond or Bonds of the same series

and maturity in the amount of the unpaid principal.

If any Bond or portion of Bond called for redemption shall not be so paid upon surrender

thereof for redemption, the principal shall, until paid, bear interest from the redemption date at the

rate borne by the Bond or portion of Bond so called for redemption. All Bonds which have been

redeemed shall be cancelled and destroyed by the Bond Registrar and shall not be reissued.

Section 7. Form of Bond. The Bonds shall be in substantially the following form;

provided, however, that if the text of the Bond is to be printed in its entirety on the front side of

the Bond, then paragraph [2] and the legend, “See Reverse Side for Additional Provisions”, shall

be omitted and paragraph [6] and the paragraphs thereafter as appropriate shall be inserted

immediately after paragraph [1]:


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[Form of Bond - Front Side] REGISTERED REGISTERED NO. ______ $_________

UNITED STATES OF AMERICA

STATE OF ILLINOIS

COUNTY OF LAKE

COMMUNITY COLLEGE DISTRICT NO. 532

GENERAL OBLIGATION REFUNDING BOND (ALTERNATE REVENUE SOURCE), SERIES 201[__]

See Reverse Side for Additional Provisions

Interest Maturity Dated Rate: ____% Date: June 1, 20__ Date: ___________, 201__ CUSIP: _________

Registered Owner:

Principal Amount:

[1] KNOW ALL PERSONS BY THESE PRESENTS, that Community College District No. 532,

County of Lake and State of Illinois (the “District”), hereby acknowledges itself to owe and for

value received promises to pay to the Registered Owner identified above, or registered assigns as

hereinafter provided, on the Maturity Date identified above, the Principal Amount identified above

and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) on such

Principal Amount from the date of this Bond or from the most recent interest payment date to

which interest has been paid at the Interest Rate per annum set forth above on June 1 and December

1 of each year, commencing _____________ 1, 20__, until said Principal Amount is paid.

Principal of this Bond is payable in lawful money of the United States of America upon

presentation and surrender hereof at the principal corporate trust office of _________________,

__________, ___________, as bond registrar and paying agent (the “Bond Registrar”). Payment


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of the installments of interest shall be made to the Registered Owner hereof as shown on the

registration books of the District maintained by the Bond Registrar at the close of business on the

15th day of the month next preceding each interest payment date and shall be paid by check or

draft of the Bond Registrar, payable upon presentation in lawful money of the United States of

America, mailed to the address of such Registered Owner as it appears on such registration books

or at such other address furnished in writing by such Registered Owner to the Bond Registrar. For

the prompt payment of this Bond, both principal and interest at maturity, the full faith, credit and

resources of the District are hereby irrevocably pledged.

[2] Reference is hereby made to the further provisions of this Bond set forth on the

reverse hereof and such further provisions shall for all purposes have the same effect as if set forth

at this place.

[3] It is hereby certified and recited that all conditions, acts and things required by law to

exist or to be done precedent to and in the issuance of this Bond did exist, have happened, been

done and performed in regular and due form and time as required by law; that the indebtedness of

the District, including the series of Bonds of which this is one, does not exceed any limitation

imposed by law; and that provision has been made for the collection of the Pledged Revenues and

the Pledged Taxes to pay the interest hereon as it falls due and also to pay and discharge the

principal hereof at maturity. The District is authorized to issue from time to time additional

obligations payable from the Pledged Revenues as permitted by law.

[4] This Bond shall not be valid or become obligatory for any purpose until the certificate

of authentication hereon shall have been signed by the Bond Registrar.


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[5] IN WITNESS WHEREOF, said Community College District No. 532, County of Lake

and State of Illinois, by its Board of Trustees, has caused this Bond to be signed by the manual or

duly authorized facsimile signatures of the Chair and Secretary of said Board of Trustees, and to

be registered, numbered and countersigned by the manual or duly authorized facsimile signature

of the Treasurer of the Board of Trustees, all as of the Dated Date identified above.

SPECIMEN Chair, Board of Trustees

SPECIMEN Secretary, Board of Trustees

Registered, Numbered and Countersigned:

SPECIMEN Treasurer, Board of Trustees

Date of Authentication: ___________, 20__

CERTIFICATE Bond Registrar and Paying Agent: OF ______________________ AUTHENTICATION __________, ___________

This Bond is one of the Bonds described in the within mentioned resolution and is one of the General Obligation Refunding Bonds (Alternate Revenue Source), Series 201[__], of Community College District No. 532, County of Lake and State of Illinois. ___________________________, as Bond Registrar

By

Authorized Officer


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[Form of Bond - Reverse Side]


COUNTY OF LAKE AND STATE OF ILLINOIS

GENERAL OBLIGATION REFUNDING BOND (ALTERNATE REVENUE SOURCE), SERIES 201[__]

[6] This Bond is one of a series of bonds issued by the District for the purpose of

refunding certain outstanding bonds of the District, and in full compliance with the provisions of

the Public Community College Act of the State of Illinois, as amended (the “College Act”), and

the Local Government Debt Reform Act of the State of Illinois (the “Act”), and all laws

amendatory thereof and supplementary thereto, and is authorized by said Board of Trustees by a

resolution duly and properly adopted for that purpose, in all respects as provided by law.

[7] The Bonds are payable (a) together with the District’s outstanding General Obligation

Bonds (Alternate Revenue Source), Series 2013A, dated September 18, 2013, and General

Obligation Bonds (Alternate Revenue Source), Series 2013B, dated September 27, 2013, from

student capital assessment fees, taxes, grants, state aid, interest earnings and other revenues

received by the District and available to be expended for the improvement, maintenance, repair

and benefit of community college and administrative buildings and property (the “Pledged

Revenues”) and (b) from ad valorem taxes levied against all of the taxable property in the District

without limitation as to rate or amount (the “Pledged Taxes”), all in accordance with the provisions

of the Act and the College Act.

[8] [Optional and Mandatory Redemption provisions to be inserted, as applicable.]

[9] [Notice of any such redemption shall be sent by first class mail not less than thirty

(30) days nor more than sixty (60) days prior to the date fixed for redemption to the registered


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owner of each Bond to be redeemed at the address shown on the registration books of the District

maintained by the Bond Registrar or at such other address as is furnished in writing by such

registered owner to the Bond Registrar. When so called for redemption, this Bond will cease to

bear interest on the specified redemption date, provided funds for redemption are on deposit at the

place of payment at that time, and shall not be deemed to be outstanding.]

[10] This Bond is transferable by the Registered Owner hereof in person or by his or her

attorney duly authorized in writing at the principal corporate trust office of the Bond Registrar in

__________, ___________, but only in the manner, subject to the limitations and upon payment

of the charges provided in the authorizing resolution, and upon surrender and cancellation of this

Bond. Upon such transfer a new Bond or Bonds of authorized denominations of the same maturity

and for the same aggregate principal amount will be issued to the transferee in exchange therefor.

[11] The Bonds are issued in fully registered form in the denomination of $5,000 each or

authorized integral multiples thereof. This Bond may be exchanged at the principal corporate trust

office of the Bond Registrar for a like aggregate principal amount of Bonds of the same maturity

of other authorized denominations, upon the terms set forth in the authorizing resolution. The Bond

Registrar shall not be required to transfer or exchange any Bond during the period beginning at the

close of business on the 15th day of the month next preceding any interest payment date on such

Bond and ending at the opening of business on such interest payment date[, nor to transfer or

exchange any Bond after notice calling such Bond for redemption has been mailed, nor during a

period of fifteen (15) days next preceding mailing of a notice of redemption of any Bonds].

[12] The District and the Bond Registrar may deem and treat the Registered Owner hereof

as the absolute owner hereof for the purpose of receiving payment of or on account of principal

hereof and interest due hereon and for all other purposes and neither the District nor the Bond

Registrar shall be affected by any notice to the contrary.


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(ASSIGNMENT)

FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto ____________________

______________________________________________________________________________ (Name and Address of Assignee)

the within Bond and does hereby irrevocably constitute and appoint _______________________

______________________________________________________________________________

attorney to transfer the said Bond on the books kept for registration thereof with full power of

substitution in the premises.

Dated: ___________________________ ___________________________

Signature guaranteed: ___________________________

NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever.

Section 8. Sale of Bonds. The Chair of the Board and either the Vice-President of

Administrative Affairs or the Controller of the District (the “Designated Representatives”) are

hereby authorized to proceed not later than the 21st day of May, 2018, without any further

authorization or direction from the Board, to sell the Bonds upon the terms as prescribed in this

Resolution. The Bonds hereby authorized shall be executed as in this Resolution provided as soon

after the delivery of the Bond Notification as may be, and thereupon be deposited with the

Treasurer of the Board, and, after authentication thereof by the Bond Registrar, be by said

Treasurer delivered to the purchaser thereof (the “Purchaser”) upon receipt of the purchase price

therefor, the same being not less than 98.0% of the principal amount of the Bonds (exclusive of

original issue discount), plus accrued interest to date of delivery.

The Purchaser shall be: (a) pursuant to a competitive sale conducted by PFM Financial

Advisors LLC, Chicago, Illinois (“PFM”), the best bidder for said Bonds; (b) in a negotiated


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underwriting, a bank or financial institution listed in the Dealers & Underwriters or Municipal

Derivatives sections of the most recent edition of The Bond Buyer’s Municipal Marketplace; or

(c) in a private placement, (i) a bank or financial institution authorized to do business in the State

of Illinois, (ii) a governmental unit as defined in the Debt Reform, or (iii) an “accredited investor”

as defined in Rule 501 of Regulation D as promulgated under the Securities Act of 1933, as

amended; provided, however, that the Purchaser as set forth in either (b) or (c) shall be selected

only upon the recommendation of PFM that the sale of said Bonds on a negotiated or private

placement basis to the Purchaser is in the best interest of the District because of (i) the pricing of

said Bonds by the Purchaser, (ii) then current market conditions or (iii) the timing of the sale of

said Bonds; and further provided, that the Purchaser as set forth in (c) may be selected through the

utilization of a placement agent selected by the Designated Representatives after consultation with

PFM if the use of such placement agent is determined by the Designated Representatives to be in

the best interest of the District.

Prior to the sale of the Bonds, the Chair of the Board or the Vice-President of

Administrative Affairs or the Controller or any other business official of the District is hereby

authorized to approve and execute a commitment for the purchase of a Municipal Bond Insurance

Policy (as hereinafter defined), to further secure the Bonds, as long as the present value of the fee

to be paid for the Municipal Bond Insurance Policy (using as a discount rate the expected yield on

the Bonds treating the fee paid as interest on the Bonds) is less than the present value of the interest

reasonably expected to be saved on the Bonds over the term of the Bonds as a result of the

Municipal Bond Insurance Policy.

Upon the sale of the Bonds, the Designated Representatives shall prepare a Notification of

Sale of the Bonds, which shall include the pertinent details of sale as provided herein (the “Bond

Notification”). In the Bond Notification, the Designated Representatives shall find and determine


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that the Bonds have been sold at such price and bear interest at such rates that either the true interest

cost (yield) or the net interest rate received upon the sale of the Bonds does not exceed the

maximum rate otherwise authorized by applicable law and that the net present value debt service

savings to the District as a result of the issuance of the Bonds and the refunding of the Refunded

Bonds is not less than 3.00% of the principal amount of the Refunded Bonds. The Bond

Notification shall be entered into the records of the District and made available to the Board at the

next regular meeting thereof; but such action shall be for information purposes only, and the Board

shall have no right or authority at such time to approve or reject such sale as evidenced in the Bond

Notification.

Upon the sale of the Bonds, as evidenced by the execution and delivery of the Bond

Notification by the Designated Representatives, the Chair, Secretary and Treasurer of the Board,

the Vice-President of Administrative Affairs and the Controller of the District and any other officer

of the District, as shall be appropriate, shall be and are hereby authorized and directed to approve

or execute, or both, such documents of sale of the Bonds as may be necessary, including, without

limitation, the contract for the sale of the Bonds between the District and the Purchaser (the

“Purchase Contract”). Prior to the execution and delivery of the Purchase Contract, the

Designated Representatives shall find and determine that no person holding any office of the

District, either by election or appointment, is in any manner interested, directly or indirectly, in his

or her own name or in the name of any other person, association, trust or corporation, in the

Purchase Contract.

The Bonds before being issued shall be registered, numbered and countersigned by the

Treasurer of the Board, such registration being made in a book provided for that purpose, in which

shall be entered the record of the resolution authorizing the Board to borrow said money and a


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description of the Bonds issued, including the number, date, to whom issued, amount, rate of

interest and when due.

The use by the Purchaser of any Preliminary Official Statement or Preliminary Term Sheet

and any final Official Statement or Term Sheet relating to the Bonds (the “Official Statement”) is

hereby ratified, approved and authorized; the execution and delivery of the Official Statement is

hereby authorized; and the officers of the Board are hereby authorized to take any action as may

be required on the part of the District to consummate the transactions contemplated by the Purchase

Contract, this Resolution, said Preliminary Official Statement or Preliminary Term Sheet, the

Official Statement and the Bonds.

Section 9. Alternate Revenue Source; Appropriation; Additional Bonds; Tax Levy. For

the purpose of providing funds required to pay the interest on the Bonds promptly when and as the

same falls due, and to pay and discharge the principal thereof at maturity, the District covenants

and agrees with the purchasers and the owners of the Bonds that the District will budget and

appropriate the Pledged Revenues for the payment of the Bonds and will deposit the Pledged

Revenues into the Bond Fund (as hereinafter defined). All payments with respect to the Bonds

shall be made directly from the Bond Fund. There are hereby created two accounts in the Bond

Fund, designated as the Pledged Revenues Account and as the Pledged Taxes Account. All

Pledged Revenues to be applied to the payment of the Bonds shall be deposited to the credit of the

Pledged Revenues Account. All Pledged Taxes shall be deposited to the credit of the Pledged

Taxes Account.

Pledged Taxes on deposit to the credit of the Pledged Taxes Account shall be fully spent

to pay the principal of and interest on the respective Bonds for which such taxes were levied and

collected prior to use of any moneys on deposit in the Pledged Revenues Account.


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The District reserves the right to issue “Additional Bonds” without limit from time to time

payable from the Pledged Revenues, and any such Additional Bonds will share ratably and equally

in the Pledged Revenues with the Bonds and the Parity Bonds; provided, however, that no

Additional Bonds will be issued except in accordance with the provisions of the Act. “Additional

Bonds” means any alternate bonds issued in the future in accordance with the provisions of the

Act on a parity with and sharing ratably and equally in the Pledged Revenues with the Bonds and

the Parity Bonds.

For the purpose of providing necessary funds to pay the principal of and interest on the

Bonds, and as provided in Section 15 of the Debt Reform Act, there is hereby levied upon all of

the taxable property within the District, in the years for which any of the Bonds are outstanding, a

direct annual tax in amounts sufficient for that purpose, and there be and there hereby is levied

upon all of the taxable property in the District the following direct annual taxes (the “Pledged

Taxes”):


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FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE SUM OF:

2018 $5,719,335.00 for principal and interest up to and including June 1, 2020

2019 $5,721,735.00 for principal and interest 2020 $5,722,535.00 for principal and interest 2021 $5,721,535.00 for principal and interest 2022 $5,723,535.00 for principal and interest 2023 $2,286,935.00 for principal and interest 2024 $2,286,060.00 for principal and interest 2025 $2,284,260.00 for principal and interest 2026 $2,287,652.50 for principal and interest 2027 $2,285,627.50 for principal and interest 2028 $2,283,847.50 for principal and interest 2029 $2,286,947.50 for principal and interest 2030 $2,284,317.50 for principal and interest 2031 $2,286,782.50 for principal and interest 2032 $2,288,787.50 for principal and interest

Interest or principal coming due at any time when there are insufficient funds on hand from

the Pledged Taxes to pay the same shall be paid promptly when due from current funds of the

District on hand in advance of the collection of the Pledged Taxes herein levied; and when the

Pledged Taxes shall have been collected, reimbursement shall be made to said funds in the amount

so advanced.

To the extent that the taxes levied above exceed the amount necessary to pay debt service

on the Bonds as set forth in the Bond Notification, the Chair, Secretary and Treasurer of the Board

are hereby authorized to direct the abatement of such taxes to the extent of the excess of such levy

in each year over the amount necessary to pay debt service on the Bonds in the following bond

year. Proper notice of such abatement shall be filed with the County Clerk in a timely manner to

effect such abatement.

The District covenants and agrees with the purchasers and the owners of the Bonds that so

long as any of the Bonds remain outstanding, the District will take no action or fail to take any


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action which in any way would adversely affect the ability of the District to collect the Pledged

Revenues or to levy and collect the Pledged Taxes (except as set forth in Section 12 hereof). The

District and its officers will comply with all present and future applicable laws in order to assure

that the Pledged Revenues will be available and that the Pledged Taxes will be levied, extended

and collected as provided herein (except as set forth in Section 12 hereof) and deposited in the

Bond Fund.

Section 10. Filing of Resolution and Certificate of Reduction of Taxes. After this

resolution becomes effective, a copy hereof, certified by the Secretary of the Board, shall be filed

with the County Clerk; and the County Clerk shall annually in and for each of the years 2018 to

2032, inclusive, ascertain the rate percent required to produce the aggregate Pledged Taxes

hereinbefore provided to be levied in each of said years; and the County Clerk shall extend the

same for collection on the tax books in connection with other taxes levied in said years in and by

the District for general community college purposes of the District; and in said years the Pledged

Taxes shall be levied and collected by and for and on behalf of the District in like manner as taxes

for general community college purposes of the District for said years are levied and collected, and

in addition to and in excess of all other taxes; and a certified copy of this resolution shall also be

filed with the Treasurer of the Board.

The Chair, Secretary and Treasurer of the Board be and the same are hereby directed to

prepare and file with the County Clerk a Certificate of Reduction of Taxes Heretofore Levied for

the Payment of Bonds showing the Prior Bonds being refunded and directing the abatement of the

taxes heretofore levied to pay the Refunded Bonds, all as provided by the Act.

Section 11. Bonds Shall Not Constitute Debt. The Bonds shall be payable from the

Pledged Revenues and the Pledged Taxes and do not and shall not constitute an indebtedness of

the District within the meaning of any constitutional or statutory limitation, unless the Pledged


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Taxes shall be extended pursuant to the general obligation, full faith and credit promise supporting

the Bonds, as set forth in Section 9 hereof, in which case the amount of the Bonds then outstanding

shall be included in the computation of indebtedness of the District for purposes of all statutory

provisions or limitations until such time as an audit of the District shall show that the Bonds have

been paid from the Pledged Revenues for a complete fiscal year, in accordance with the Act.

Section 12. Abatement of Pledged Taxes. Whenever the District determines that in any

year the Pledged Revenues are or will be available to pay any principal of or interest on the Bonds

due in that bond year (December 1 and June 1), the Board or the officers of the District acting with

proper authority shall direct the abatement of the Pledged Taxes by such amount and proper

notification of such abatement shall be filed with the County Clerk in a timely manner to effect

such abatement.

Section 13. Bond Fund. There is hereby established a special fund of the District known

as the “Refunding Alternate Bond and Interest Sinking Fund Account of 201__” (the “Bond

Fund”) in connection with the issuance of the Bonds. The Pledged Revenues and the Pledged

Taxes shall be set aside as collected and be deposited into the Bond Fund, which is a trust fund

established for the purpose of carrying out the covenants, terms and conditions imposed upon the

District by this resolution. The Bonds are secured by a pledge of all of the moneys on deposit in

the Bond Fund, and such pledge is irrevocable until the Bonds have been paid in full or until the

obligations of the District are discharged under this resolution. Notwithstanding the foregoing, if

the Board determines that there are Pledged Revenues that will not be needed to either pay debt

service on the Bonds or permit the abatement of the taxes herein levied, such Pledged Revenues

are not required to be deposited into the Bond Fund or if such Pledged Revenues are on deposit

therein, the same may at the direction of the Board and to the extent permitted by law, be

transferred to another account or fund of the District.


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Section 14. General Covenants. The District covenants and agrees with the holders of

the Bonds that so long as the Bonds or any of them remain outstanding and unpaid, either as to

principal or interest:

A. The District hereby pledges the Pledged Revenues to the payment of the Bonds and the Parity Bonds, and the Board covenants and agrees to provide for, collect and apply the Pledged Revenues to the payment of the Bonds and the Parity Bonds and the provision of not less than an additional 0.25 times debt service on the Bonds and the Parity Bonds, all in accordance with Section 15 of the Act. The Bonds are issued on a parity with the Parity Bonds to the extent the Parity Bonds and the Bonds are payable from the Pledged Revenues.

B. The District will punctually pay or cause to be paid from the sources herein provided the principal of and interest on the Bonds in strict conformity with the terms of the Bonds and this Resolution, and it will faithfully observe and perform all of the conditions, covenants and requirements thereof and hereof.

C. The District will pay and discharge, or cause to be paid and discharged, from the Bond Fund any and all lawful claims which, if unpaid, might become a lien or charge upon the Pledged Revenues or Pledged Taxes, or any part thereof, or upon any funds in the hands of the Bond Registrar, or which might impair the security of the Bonds. Nothing herein contained shall require the District to make any such payment so long as the District in good faith shall contest the validity of said claims.

D. The District will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the District, in which complete and correct entries shall be made of all transactions relating to the Pledged Revenues, the Pledged Taxes, the Bond Fund and associated subaccounts. Such books of record and accounts will at all times during business hours be subject to the inspection of the holders of not less than ten per cent (10%) of the principal amount of the outstanding Bonds or their representatives authorized in writing.

E. The District will preserve and protect the security of the Bonds and the rights of the registered owners of the Bonds, and will warrant and defend their rights against all claims and demands of all persons. From and after the sale and delivery of any of the Bonds by the District, the Bonds shall be incontestable by the District.

F. The District will adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention of, or to facilitate the performance of, this Resolution, and for the better assuring and confirming unto the registered owners of the Bonds of the rights and benefits provided in this Resolution.


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G. As long as any Bonds are outstanding, the District will continue to deposit the Pledged Revenues into the Pledged Revenues Account and, if necessary, the Pledged Taxes into the Pledged Taxes Account. The District covenants and agrees with the purchasers of the Bonds and with the registered owners thereof that so long as any Bonds remain outstanding, the District will take no action or fail to take any action which in any way would adversely affect the ability of the District to collect the Pledged Revenues. The District and its officers will comply with all present and future applicable laws in order to assure that the Pledged Revenues and Pledged Taxes may be collected as provided herein and deposited into the Pledged Revenues Account and Pledged Taxes Account, respectively, as provided herein.

H. Once issued and while outstanding, the Bonds shall be and forever remain until paid or defeased a general obligation of the District, the payment of which its full faith and credit are pledged, and shall be payable, in addition to the Pledged Revenues, from the levy of the Pledged Taxes as provided in the Act.

When used with reference to the Bonds, “Outstanding” means those Bonds which are

outstanding and unpaid; provided, however, such term does not include any Bonds (a) which have

matured and for which moneys are on deposit with proper paying agents or are otherwise

sufficiently available to pay all principal thereof and interest thereon or (b) the provision for

payment of which has been made by the District by the deposit in an irrevocable trust or escrow

of (i) direct and general full faith and credit obligations of the United States Treasury (“Directs”),

(ii) certificates of participation or trust receipts in trusts comprised wholly of Directs or (iii) other

obligations unconditionally guaranteed as to timely payment by the United States Treasury, the

principal of and interest on which will be sufficient to pay at maturity all the principal of and

interest on such Bonds.

Section 15. Use of Bond Proceeds. Accrued interest received on the delivery of the

Bonds, if any, is hereby appropriated for the purpose of paying first interest due on the Bonds and

is hereby ordered deposited into the Bond Fund. Simultaneously with the delivery of the Bonds,

the principal proceeds of the Bonds, together with any premium received from the sale of the

Bonds and such additional amounts as may be necessary from the general funds of the District, are

hereby appropriated to pay the costs of issuance of the Bonds and for the purpose of refunding the Agenda Item 7.6

November 21, 2017

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Refunded Bonds, and that portion thereof not needed to pay such costs is hereby ordered

deposited in escrow pursuant to an Escrow Agreement to be hereafter authorized by the Board for

the purpose of paying the principal of and interest on the Refunded Bonds when due and upon

redemption prior to maturity as provided in the Escrow Agreement. At the time of the issuance of

the Bonds, the costs of issuance of the Bonds may be paid by PFM or the Purchaser on behalf of

the District from the proceeds of the Bonds.

Section 16. Non-Arbitrage and Tax-Exemption. The District hereby covenants that it will

not take any action, omit to take any action or permit the taking or omission of any action within

its control (including, without limitation, making or permitting any use of the proceeds of the

Bonds) if taking, permitting or omitting to take such action would cause any of the Bonds to be an

arbitrage bond or a private activity bond within the meaning of the Internal Revenue Code of 1986,

as amended (the “Code”), or would otherwise cause the interest on the Bonds to be included in

the gross income of the recipients thereof for federal income tax purposes. The District

acknowledges that, in the event of an examination by the Internal Revenue Service (the “IRS”) of

the exemption from Federal income taxation for interest paid on the Bonds, under present rules,

the District may be treated as a “taxpayer” in such examination and agrees that it will respond in

a commercially reasonable manner to any inquiries from the IRS in connection with such an

examination.

The District also agrees and covenants with the purchasers and holders of the Bonds from

time to time outstanding that, to the extent possible under Illinois law, it will comply with whatever

federal tax law is adopted in the future which applies to the Bonds and affects the tax-exempt status

of the Bonds.

The Board hereby authorizes the officials of the District responsible for issuing the Bonds,

the same being the Chair, Secretary and Treasurer of the Board to make such further covenants


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and certifications regarding the specific use of the proceeds of the Bonds as approved by the Board

and as may be necessary to assure that the use thereof will not cause the Bonds to be arbitrage

bonds and to assure that the interest on the Bonds will be exempt from federal income taxation. In

connection therewith, the District and the Board further agree: (a) through their officers, to make

such further specific covenants, representations as shall be truthful, and assurances as may be

necessary or advisable; (b) to consult with counsel approving the Bonds and to comply with such

advice as may be given; (c) to pay to the United States, as necessary, such sums of money

representing required rebates of excess arbitrage profits relating to the Bonds; (d) to file such

forms, statements, and supporting documents as may be required and in a timely manner; and (e) if

deemed necessary or advisable by their officers, to employ and pay fiscal agents, financial

advisors, attorneys, and other persons to assist the District in such compliance.

Section 17. List of Bondholders. The Bond Registrar shall maintain a list of the names

and addresses of the holders of all Bonds and upon any transfer shall add the name and address of

the new Bondholder and eliminate the name and address of the transferor Bondholder.

Section 18. Duties of Bond Registrar. If requested by the Bond Registrar, the Chair and

Secretary of the Board are authorized to execute the Bond Registrar’s standard form of agreement

between the District and the Bond Registrar with respect to the obligations and duties of the Bond

Registrar hereunder which may include the following:

(a) to act as bond registrar, authenticating agent, paying agent and transfer agent as provided herein;

(b) to maintain a list of Bondholders as set forth herein and to furnish such list to the District upon request, but otherwise to keep such list confidential;

(c) to give notice of redemption of Bonds as provided herein;

(d) to cancel and/or destroy Bonds which have been paid at maturity or upon earlier redemption or submitted for exchange or transfer;


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(e) to furnish the District at least annually a certificate with respect to Bonds cancelled and/or destroyed; and

(f) to furnish the District at least annually an audit confirmation of Bonds paid, Bonds outstanding and payments made with respect to interest on the Bonds.

Section 19. Continuing Disclosure Undertaking. The Chair of the Board is hereby

authorized, empowered and directed to execute and deliver a Continuing Disclosure Undertaking

under Section (b)(5) of Rule 15c2-12 adopted by the Securities and Exchange Commission

pursuant to the Securities Exchange Act of 1934, as amended (the “Continuing Disclosure

Undertaking”). When the Continuing Disclosure Undertaking is executed and delivered on behalf

of the District as herein provided, the Continuing Disclosure Undertaking will be binding on the

District and the officers, employees and agents of the District, and the officers, employees and

agents of the District are hereby authorized, empowered and directed to do all such acts and things

and to execute all such documents as may be necessary to carry out and comply with the provisions

of the Continuing Disclosure Undertaking as executed. Notwithstanding any other provision of

this Resolution, the sole remedy for failure to comply with the Continuing Disclosure Undertaking

shall be the ability of the beneficial owner of any Bond to seek mandamus or specific performance

by court order to cause the District to comply with its obligations under the Continuing Disclosure

Undertaking.

Section 20. Municipal Bond Insurance. In the event the payment of principal and interest

on the Bonds is insured pursuant to a municipal bond insurance policy (the “Municipal Bond

Insurance Policy”) issued by a bond insurer (the “Bond Insurer”), and as long as such Municipal

Bond Insurance Policy shall be in full force and effect, the District and the Bond Registrar agree

to comply with such usual and reasonable provisions regarding presentment and payment of the

Bonds, subrogation of the rights of the Bondholders to the Bond Insurer upon payment of the

Bonds by the Bond Insurer, amendment hereof, or other terms, as approved by the Chair of the


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Board on advice of counsel, his or her approval to constitute full and complete acceptance by the

District of such terms and provisions under authority of this Section.

Section 21. Record-Keeping Policy and Post-Issuance Compliance Matters. On 23rd day

of October, 2012, the Board adopted a record-keeping policy (the “Policy”), as subsequently

amended on the 21st day of May, 2013, in order to maintain sufficient records to demonstrate

compliance with its covenants and expectations to ensure the appropriate federal tax status for the

debt obligations of the District, the interest on which is excludable from “gross income” for federal

income tax purposes or which enable the District or the holder to receive federal tax benefits,

including, but not limited to, qualified tax credit bonds and other specified tax credit bonds. The

Board and the District hereby reaffirm the Policy as amended.

Section 22. Provisions a Contract. The provisions of this Resolution shall constitute a

contract between the District and the owners of the outstanding Bonds. All covenants relating to

the Bonds and the conditions and obligations imposed by Section 15 of the Act are enforceable by

any holder of the Bonds affected, any taxpayer of the District and the People of the State of Illinois

acting through the Attorney General or any designee.

Section 23. Severability. If any section, paragraph, clause or provision of this Resolution

shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of

such section, paragraph, clause or provision shall not affect any of the remaining provisions of this

Resolution.


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Section 24. Repeal. All resolutions or parts thereof in conflict herewith be and the same

are hereby repealed, and this Resolution shall be in full force and effect forthwith upon its adoption.





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Trustee _______________________ moved and Trustee _______________________


After a full discussion thereof, the Chair directed that the roll be called for a vote upon the

motion to adopt said resolution.

Upon the roll being called, the following Trustees voted AYE: _____________________

______________________________________________________________________________

________________________________________________________________________

The following Trustees voted NAY: __________________________________________

Whereupon the Chair declared the motion carried and said resolution adopted, approved

and signed the same in open meeting and directed the Secretary to record the same in the records

of the Board of Trustees of Community College District No. 532, County of Lake and State of

Illinois, which was done.

Other business not pertinent to the adoption of said resolution was duly transacted at the

meeting.




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AGENDA ITEM NO. 7.6 – FINANCIAL (Continued) STATE OF ILLINOIS ) ) SS COUNTY OF LAKE )


I, the undersigned, do hereby certify that I am the duly qualified and acting Secretary of the Board of Trustees of Community College District No. 532, County of Lake and State of Illinois (the “Board”), and as such official I am the keeper of the records and files of the Board.




I do further certify that the deliberations of the Board on the adoption of said resolution were taken openly, that the vote on the adoption of said resolution was taken openly, that said meeting was held at a specified time and place convenient to the public, that notice of said meeting was duly given to all of the news media requesting such notice, that an agenda for said meeting was posted at the location where said meeting was held and at the principal office of the Board at least 96 hours in advance of the holding of said meeting, that at least one copy of said agenda was continuously available for public review during the entire 96-hour period preceding said meeting, that a true, correct and complete copy of said agenda as so posted is attached hereto as Exhibit A, that said meeting was called and held in strict accordance with the provisions of the Public Community College Act of the State of Illinois, as amended, the Open Meetings Act of the State of Illinois, as amended, and the Local Government Debt Reform Act of the State of Illinois, and that the Board has complied with all of the applicable provisions of said Acts and its procedural rules in the adoption of said resolution.


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FILING CERTIFICATE



_____________, 201___, there was filed in my office a duly certified copy of a resolution entitled:


duly adopted by the Board of Trustees of Community College District No. 532, County of Lake

and State of Illinois, on the 21st day of November, 2017, and that the same has been deposited in

the official files and records of my office.

IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of said County,

this ____ day of _____________, 201__.

_______________________________________ County Clerk of The County

of Lake, Illinois (SEAL)


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FILING CERTIFICATE


the Board of Trustees of Community College District No. 532, County of Lake and State of Illinois

(the “District”), and as such official I do further certify that on the 21st day of November, 2017,

there was filed in my office a duly certified copy of a resolution entitled:


duly adopted by the Board of Trustees of the District on the 21st day of November, 2017, and that

the same has been deposited in the official files and records of my office.

I do further certify that the description of the outstanding General Obligation Bonds

(Alternate Revenue Source), Series 2013A, dated September 18, 2013, and General Obligation

Bonds (Alternate Revenue Source), Series 2013B, dated September 27, 2013, of the District set

forth in the Escrow Agreement referred to in Section 15 of said resolution is accurate, and that said

bonds are presently outstanding and unpaid and are binding and subsisting legal obligations of the

District and have never been refunded by the District.


2017.



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LIMITED BOND REFUNDING RESOLUTION -- RESOLUTION PROVIDING FOR THE ISSUE OF NOT TO EXCEED $20,000,000 GENERAL OBLIGATION LIMITED REFUNDING BONDS OF COMMUNITY COLLEGE DISTRICT NO. 532, FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING BONDS

OF SAID DISTRICT, PROVIDING FOR THE LEVY OF A DIRECT ANNUAL TAX TO PAY THE PRINCIPAL AND INTEREST ON SAID BONDS, AND

AUTHORIZING THE SALE OF SAID BONDS TO THE PURCHASER THEREOF

The following resolution is asking the Board to allow the College of Lake County (the

“College”) to pursue a potential refunding of outstanding debt that would allow the College to

realize debt service savings. The bonds being evaluated for potential refunding include Series

2012 (General Obligation, Limited Tax Bonds). While the College is requesting refunding

authorization at this time, the College would only pursue the refundings if savings over 3% were

achieved. The College is pursuing authorization at this time due to a number of factors, including

historically low interest rates and the College’s strong rating of Aaa which helps limit the cost of

debt. Additionally, the opportunity to pursue these advanced refundings for savings may be in

jeopardy post 2017, depending on what occurs with tax reform legislation at the federal level.


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* * *


Richard Anderson, the Chair, and the following Trustees were physically present at said

location: ________________________________________________________________

_______________________________________________________________________

____________________ and ______________________ (non-voting student member).

The following Trustees were allowed by a majority of the Trustees in accordance

with and to the extent allowed by rules adopted by the Board of Trustees to attend the

meeting by video or audio conference: ________________________________________

_______________________________________________________________________




_______________________________________________________________________

The Chair announced that the next item for consideration was the issuance of not to

exceed $20,000,000 General Obligation Limited Refunding Bonds to be issued by the

District pursuant to Article 3A of the Public Community College Act of the State of Illinois,

as amended, and the Local Government Debt Reform Act of the State of Illinois, for the

purpose of refunding certain of the District’s outstanding bonds and that the Board of

Trustees would consider the adoption of a resolution providing for the issue of said bonds


Page 107


and the levy of a direct annual tax to pay the principal and interest thereon. The Chair then

explained that the resolution sets forth the parameters for the issuance of said bonds and

sale thereof by designated officials of the District and summarized the pertinent terms of

said parameters, including the specific parameters governing the manner of sale, length of

maturity, rates of interest, purchase price and tax levy for said bonds.

Whereupon Trustee _____________________ presented and the Secretary read by

title a resolution as follows, a copy of which was provided to each Trustee prior to said

meeting and to everyone in attendance at said meeting who requested a copy:


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RESOLUTION providing for the issue of not to exceed $20,000,000 General Obligation Limited Refunding Bonds of Community College District No. 532, County of Lake and State of Illinois, for the purpose of refunding certain outstanding bonds of said Community College District, providing for the levy of a direct annual tax to pay the principal and interest on said bonds, and authorizing the sale of said bonds to the purchaser thereof.

* * *


“District”), has outstanding its General Obligation Limited Tax Bonds, Series 2012, dated

February 16, 2012 (the “Prior Bonds”); and

WHEREAS, the Board of Trustees of the District (the “Board”) has determined that it is

necessary and desirable to refund all or a portion of the outstanding Prior Bonds (said Prior Bonds

to be refunded being referred to herein as the “Refunded Bonds”) in order to realize debt service

savings for the District; and

WHEREAS, the Refunded Bonds shall be fully described in the Escrow Agreement referred

to in Section 13 hereof and are presently outstanding and unpaid and are binding and subsisting

legal obligations of the District; and

WHEREAS, the Board has determined that in order to refund the Refunded Bonds, it is

necessary and in the best interests of the District to borrow an amount not to exceed $20,000,000

and issue bonds of the District therefor; and

WHEREAS, the bonds so authorized shall be issued as limited bonds under the provisions of

the Local Government Debt Reform Act of the State of Illinois, as amended (the “Debt Reform

Act”), and as such it is not necessary to submit the proposition of the issuance of the bonds to the

voters of the District for approval:




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Section 2. Authorization. It is hereby found and determined that the Board has been

authorized by law to borrow the sum of $20,000,000 upon the credit of the District and as evidence

of such indebtedness to issue bonds of the District to said amount, the proceeds of said bonds to

be used to refund the Refunded Bonds and that it is necessary and for the best interests of the

District that there be issued an amount not to exceed $20,000,000 of the bonds so authorized.

Section 3. Bond Details. There be borrowed on the credit of and for and on behalf of

the District an amount not to exceed $20,000,000 for the purpose aforesaid; and that bonds of the

District (the “Bonds”) shall be issued to said amount and shall be designated “General Obligation

Limited Refunding Bonds, Series 201[__]” with such series designation as set forth in the Bond

Notification (as hereinafter defined). The Bonds shall be issued in an amount not to exceed

$20,000,000, shall be dated such date (not later than not later than May 31, 2018) as set forth in

the Bond Notification, and shall also bear the date of authentication, shall be in fully registered

form, shall be in denominations of $5,000 each or authorized integral multiples thereof, unless

otherwise provided in the Bond Notification (but no single Bond shall represent installments of

principal maturing on more than one date), and shall be numbered 1 and upward. The Bonds shall

become due and payable serially or be subject to mandatory redemption (without option of prior

redemption) on December 1 of each of the years (not later than 2026), in the amounts (not

exceeding $3,000,000 per year) and bearing interest at the rates per annum (not exceeding 9.0%

per annum) as set forth in the Bond Notification.

The Bonds shall bear interest from their date or from the most recent interest payment date

to which interest has been paid or duly provided for, until the principal amount of the Bonds is


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paid, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being

payable semi-annually commencing with the first interest payment date as set forth in the Bond

Notification, and on June 1 and December 1 of each year thereafter to maturity.

Interest on each Bond shall be paid by check or draft of the bond registrar and paying agent

(which shall be the Treasurer of the Board, the Purchaser (as hereinafter defined) or a bank or trust

company authorized to do business in the State of Illinois) set forth in the Bond Notification (the

“Bond Registrar”), payable upon presentation in lawful money of the United States of America,

to the person in whose name such Bond is registered at the close of business on the 15th day of the

month next preceding the interest payment date. The principal of the Bonds shall be payable in

lawful money of the United States of America at the principal corporate trust office of the Bond

Registrar.

The Bonds shall be signed by the manual or duly authorized facsimile signatures of the

Chair and Secretary of the Board, and shall be registered, numbered and countersigned by the

manual or duly authorized facsimile signature of the Treasurer of the Board, as they shall

determine, and in case any officer whose signature shall appear on any Bond shall cease to be such

officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient

for all purposes, the same as if such officer had remained in office until delivery.

All Bonds shall have thereon a certificate of authentication substantially in the form

hereinafter set forth duly executed by the Bond Registrar as authenticating agent of the District

and showing the date of authentication. No Bond shall be valid or obligatory for any purpose or

be entitled to any security or benefit under this Resolution unless and until such certificate of

authentication shall have been duly executed by the Bond Registrar by manual signature, and such

certificate of authentication upon any such Bond shall be conclusive evidence that such Bond has

been authenticated and delivered under this Resolution. The certificate of authentication on any


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Bond shall be deemed to have been executed by the Bond Registrar if signed by an authorized

officer of the Bond Registrar, but it shall not be necessary that the same officer sign the certificate

of authentication on all of the Bonds issued hereunder.

Section 4. Registration of Bonds; Persons Treated as Owners. (a) General. The

District shall cause books (the “Bond Register”) for the registration and for the transfer of the

Bonds as provided in this Resolution to be kept at the principal corporate trust office of the Bond

Registrar, which is hereby constituted and appointed the registrar of the District. The District is

authorized to prepare, and the Bond Registrar shall keep custody of, multiple Bond blanks

executed by the District for use in the transfer and exchange of Bonds.

Upon surrender for transfer of any Bond at the principal corporate trust office of the Bond

Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in

form satisfactory to the Bond Registrar and duly executed by, the registered owner or his or her

attorney duly authorized in writing, the District shall execute and the Bond Registrar shall

authenticate, date and deliver in the name of the transferee or transferees a new fully registered

Bond or Bonds of the same maturity of authorized denominations, for a like aggregate principal

amount. Any fully registered Bond or Bonds may be exchanged at said office of the Bond

Registrar for a like aggregate principal amount of Bond or Bonds of the same maturity of other

authorized denominations. The execution by the District of any fully registered Bond shall

constitute full and due authorization of such Bond and the Bond Registrar shall thereby be

authorized to authenticate, date and deliver such Bond, provided, however, the principal amount

of outstanding Bonds of each maturity authenticated by the Bond Registrar shall not exceed the

authorized principal amount of Bonds for such maturity less previous retirements.

The Bond Registrar shall not be required to transfer or exchange any Bond during the

period beginning at the close of business on the 15th day of the month next preceding any interest


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payment date on such Bond and ending at the opening of business on such interest payment date,

nor to transfer or exchange any Bond after notice calling such Bond for redemption has been

mailed, nor during a period of fifteen (15) days next preceding mailing of a notice of redemption

of any Bonds.

The person in whose name any Bond shall be registered shall be deemed and regarded as

the absolute owner thereof for all purposes, and payment of the principal of and interest on any

Bond shall be made only to or upon the order of the registered owner thereof or his or her legal

representative. All such payments shall be valid and effectual to satisfy and discharge the liability

upon such Bond to the extent of the sum or sums so paid.

No service charge shall be made for any transfer or exchange of Bonds, but the District or

the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental

charge that may be imposed in connection with any transfer or exchange of Bonds except in the

case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond surrendered for

redemption.

(b) Global Book-Entry System. The Bonds shall be initially issued in the form of a

separate single fully registered Bond for each of the maturities of the Bonds determined as

described in Section 3 hereof. If requested by the Purchaser, upon initial issuance, the ownership

of each such Bond shall be registered in the Bond Register in the name of Cede & Co., or any

successor thereto (“Cede”), as nominee of The Depository Trust Company, New York, New York,

and its successors and assigns (“DTC”). In such event, all of the outstanding Bonds shall be

registered in the Bond Register in the name of Cede, as nominee of DTC, except as hereinafter

provided. The Chair, Secretary and Treasurer of the Board, the Vice-President of Administrative

Affairs and the Controller of the District and the Bond Registrar are each authorized to execute

and deliver, on behalf of the District, such letters to or agreements with DTC as shall be necessary


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to effectuate such book-entry system (any such letter or agreement being referred to herein as the

“Representation Letter”), which Representation Letter may provide for the payment of principal

of or interest on the Bonds by wire transfer.

With respect to Bonds registered in the Bond Register in the name of Cede, as nominee of

DTC, the District and the Bond Registrar shall have no responsibility or obligation to any broker-

dealer, bank or other financial institution for which DTC holds Bonds from time to time as

securities depository (each such broker-dealer, bank or other financial institution being referred to

herein as a “DTC Participant”) or to any person on behalf of whom such a DTC Participant holds

an interest in the Bonds. Without limiting the immediately preceding sentence, the District and

the Bond Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the

records of DTC, Cede or any DTC Participant with respect to any ownership interest in the Bonds,

(ii) the delivery to any DTC Participant or any other person, other than a registered owner of a

Bond as shown in the Bond Register, of any notice with respect to the Bonds, including any notice

of redemption, or (iii) the payment to any DTC Participant or any other person, other than a

registered owner of a Bond as shown in the Bond Register, of any amount with respect to the

principal of or interest on the Bonds. The District and the Bond Registrar may treat and consider

the person in whose name each Bond is registered in the Bond Register as the holder and absolute

owner of such Bond for the purpose of payment of principal and interest with respect to such Bond,

for the purpose of giving notices of redemption and other matters with respect to such Bond, for

the purpose of registering transfers with respect to such Bond, and for all other purposes

whatsoever. The Bond Registrar shall pay all principal of and interest on the Bonds only to or

upon the order of the respective registered owners of the Bonds, as shown in the Bond Register,

or their respective attorneys duly authorized in writing, and all such payments shall be valid and

effective to fully satisfy and discharge the District’s obligations with respect to payment of the


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principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other

than a registered owner of a Bond as shown in the Bond Register, shall receive a Bond evidencing

the obligation of the District to make payments of principal and interest with respect to any Bond.

Upon delivery by DTC to the Bond Registrar of written notice to the effect that DTC has

determined to substitute a new nominee in place of Cede, and subject to the provisions in Section 3

hereof with respect to the payment of interest to the registered owners of Bonds at the close of

business on the 15th day of the month next preceding the applicable interest payment date, the

name “Cede” in this resolution shall refer to such new nominee of DTC.

In the event that (i) the District determines that DTC is incapable of discharging its

responsibilities described herein and in the Representation Letter, (ii) the agreement among the

District, the Bond Registrar and DTC evidenced by the Representation Letter shall be terminated

for any reason or (iii) the District determines that it is in the best interests of the beneficial owners

of the Bonds that they be able to obtain certificated Bonds, the District shall notify DTC and DTC

Participants of the availability through DTC of certificated Bonds and the Bonds shall no longer

be restricted to being registered in the Bond Register in the name of Cede, as nominee of DTC. At

that time, the District may determine that the Bonds shall be registered in the name of and deposited

with such other depository operating a universal book-entry system, as may be acceptable to the

District, or such depository’s agent or designee, and if the District does not select such alternate

universal book-entry system, then the Bonds may be registered in whatever name or names

registered owners of Bonds transferring or exchanging Bonds shall designate, in accordance with

the provisions of Section 4(a) hereof.

Notwithstanding any other provisions of this resolution to the contrary, so long as any Bond

is registered in the name of Cede, as nominee of DTC, all payments with respect to principal of


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and interest on such Bond and all notices with respect to such Bond shall be made and given,

respectively, in the name provided in the Representation Letter.

Section 5. Redemption. The Bonds maturing on the date or dates, if any, indicated in the

Bond Notification are subject to mandatory redemption, in integral multiples of $5,000 selected

by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the redemption

date for the Bonds, on December 1 of the years, if any, and in the principal amounts, if any, as

indicated in the Bond Notification.

On or prior to the 60th day preceding any mandatory redemption date, the Bond Registrar

may, and if directed by the Board shall, purchase Bonds required to be retired on such mandatory

redemption date. Any such Bonds so purchased shall be cancelled and the principal amount thereof

shall be credited against the mandatory redemption required on such next mandatory redemption

date.

The Bonds shall be redeemed only in the principal amount of $5,000 and integral multiples

thereof. For purposes of any redemption of less than all of the outstanding Bonds of a single

maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected by lot not

more than sixty (60) days prior to the redemption date by the Bond Registrar, by such method of

lottery as the Bond Registrar shall deem fair and appropriate; provided that such lottery shall

provide for the selection for redemption of Bonds or portions of Bonds in principal amounts of

$5,000 and integral multiples thereof.

The Bond Registrar shall promptly notify the District in writing of the Bonds or portions

of Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the

principal amount thereof to be redeemed.

Section 6. Redemption Procedure. Unless waived by any holder of Bonds to be

redeemed, notice of the call for any such redemption shall be given by the Bond Registrar on behalf


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of the District by mailing the redemption notice by first class mail at least thirty (30) days and not

more than sixty (60) days prior to the date fixed for redemption to the registered owner of the Bond

or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is

furnished in writing by such registered owner to the Bond Registrar.

All notices of redemption shall state:

(1) the redemption date,

(2) the redemption price,

(3) if less than all outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed,

(4) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date,

(5) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal corporate trust office of the Bond Registrar, and

(6) such other information then required by custom, practice or industry standard.

Prior to any redemption date, the District shall deposit with the Bond Registrar an amount

of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are

to be redeemed on that date.

Notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to

be redeemed shall, on the redemption date, become due and payable at the redemption price therein

specified, and from and after such date (unless the District shall default in the payment of the

redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of

such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Bond

Registrar at the redemption price. Installments of interest due on or prior to the redemption date

shall be payable as herein provided for payment of interest. Upon surrender for any partial Agenda Item 7.7

November 21, 2017

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redemption of any Bond, there shall be prepared for the registered holder a new Bond or Bonds of

the same maturity in the amount of the unpaid principal.

If any Bond or portion of Bond called for redemption shall not be so paid upon surrender

thereof for redemption, the principal shall, until paid, bear interest from the redemption date at the

rate borne by the Bond or portion of Bond so called for redemption. All Bonds which have been

redeemed shall be cancelled and destroyed by the Bond Registrar and shall not be reissued.

Section 7. Form of Bond. The Bonds shall be in substantially the following form;

provided, however, that if the text of the Bond is to be printed in its entirety on the front side of

the Bond, then paragraph [2] and the legend, “See Reverse Side for Additional Provisions”, shall

be omitted and paragraph [6] and the paragraphs thereafter as appropriate shall be inserted

immediately after paragraph [1]:


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[Form of Bond - Front Side] REGISTERED REGISTERED NO. ______ $_________

UNITED STATES OF AMERICA

STATE OF ILLINOIS

COUNTY OF LAKE


GENERAL OBLIGATION LIMITED REFUNDING BOND, SERIES 201[__]

See Reverse Side for Additional Provisions

Interest Maturity Dated Rate: ____% Date: December 1, 20__ Date: _______, 201__ CUSIP: ______ ___

Registered Owner:

Principal Amount:

[1] KNOW ALL PERSONS BY THESE PRESENTS, that Community College District No. 532,

County of Lake and State of Illinois (the “District”), hereby acknowledges itself to owe and for

value received promises to pay to the Registered Owner identified above, or registered assigns as

hereinafter provided, on the Maturity Date identified above, the Principal Amount identified above

and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) on such

Principal Amount from the date of this Bond or from the most recent interest payment date to

which interest has been paid at the Interest Rate per annum set forth above on June 1 and

December 1 of each year, commencing _________ 1, 20__, until said Principal Amount is paid.

Principal of this Bond is payable in lawful money of the United States of America upon

presentation and surrender hereof at the principal corporate trust office of _________________,

_________________, Illinois, as paying agent and bond registrar (the “Bond Registrar”).

Payment of the installments of interest shall be made to the Registered Owner hereof as shown on


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the registration books of the District maintained by the Bond Registrar at the close of business on

the 15th day of the month next preceding each interest payment date and shall be paid by check or

draft of the Bond Registrar, payable upon presentation in lawful money of the United States of

America, mailed to the address of such Registered Owner as it appears on such registration books

or at such other address furnished in writing by such Registered Owner to the Bond Registrar.

[2] Reference is hereby made to the further provisions of this Bond set forth on the

reverse hereof and such further provisions shall for all purposes have the same effect as if set forth

at this place.

[3] It is hereby certified and recited that all conditions, acts and things required by law to

exist or to be done precedent to and in the issuance of this Bond did exist, have happened, been

done and performed in regular and due form and time as required by law; that the indebtedness of

the District, including the issue of bonds of which this is one, does not exceed any limitation

imposed by law; and that provision has been made for the collection of a direct annual tax to pay

the interest hereon as it falls due and also to pay and discharge the principal hereof at maturity.

Although this Bond constitutes a general obligation of the District and no limit exists on the rate

of said direct annual tax, the amount of said tax is limited by the provisions of the Property Tax

Extension Limitation Law of the State of Illinois, as amended (the “Law”). The Law provides

that the annual amount of the taxes to be extended to pay the issue of bonds of which this Bond is

one and all other limited bonds (as defined in the Local Government Debt Reform Act of the State

of Illinois, as amended) heretofore and hereafter issued by the District shall not exceed the debt

service extension base (as defined in the Law) of the District (the “Base”), as more fully described

in the proceedings of the District providing for the issue of this Bond. Payments on the Bonds

from the Base will be made on a parity with the payments on the outstanding limited bonds

heretofore issued by the District. The District is authorized to issue from time to time additional


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limited bonds payable from the Base, as permitted by law, and to determine the lien priority of

payments to be made from the Base to pay the District’s limited bonds.

[4] This Bond shall not be valid or become obligatory for any purpose until the certificate

of authentication hereon shall have been signed by the Bond Registrar.

[5] IN WITNESS WHEREOF, said Community College District No. 532, County of Lake

and State of Illinois, by its Board of Trustees, has caused this Bond to be signed by the manual or

duly authorized facsimile signatures of the Chair and Secretary of said Board of Trustees, and to

be registered, numbered and countersigned by the manual or duly authorized facsimile signature

of the Treasurer of said Board of Trustees, all as of the Dated Date identified above.

SPECIMEN Chair, Board of Trustees


Registered, Numbered and Countersigned:



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Date of Authentication: __________, 201__

CERTIFICATE Bond Registrar and Paying Agent: OF __________________________, AUTHENTICATION _________________, Illinois

This Bond is one of the Bonds described in the within mentioned Resolution and is one of the General Obligation Limited Refunding Bonds, Series 201[__], of Community College District No. 532, County of Lake and State of Illinois.

____________________________________ as Bond Registrar

By SPECIMEN

Authorized Officer


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[Form of Bond - Reverse Side]


COUNTY OF LAKE AND STATE OF ILLINOIS

GENERAL OBLIGATION LIMITED REFUNDING BOND, SERIES 201[__]

[6] This Bond is one of a series of bonds issued by the District for the purpose of

refunding certain outstanding bonds of the District, in full compliance with the provisions of the

Public Community College Act of the State of Illinois and the Local Government Debt Reform

Act of the State of Illinois, and all laws amendatory thereof and supplementary thereto, and is

authorized by the Board of Trustees of the District by a resolution duly and properly adopted for

that purpose, in all respects as provided by law.

[7] [Mandatory Redemption provisions to be inserted, as applicable.]

[8] [Notice of any such redemption shall be sent by first class mail not less than thirty (30)

days nor more than sixty (60) days prior to the date fixed for redemption to the registered owner

of each Bond to be redeemed at the address shown on the registration books of the District

maintained by the Bond Registrar or at such other address as is furnished in writing by such

registered owner to the Bond Registrar. When so called for redemption, this Bond will cease to

bear interest on the specified redemption date, provided funds for redemption are on deposit at the

place of payment at that time, and shall not be deemed to be outstanding.]

[9] This Bond is transferable by the Registered Owner hereof in person or by his or her

attorney duly authorized in writing at the principal corporate trust office of the Bond Registrar in

____________, __________, but only in the manner, subject to the limitations and upon payment

of the charges provided in the authorizing resolution, and upon surrender and cancellation of this


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Bond. Upon such transfer a new Bond or Bonds of authorized denominations of the same maturity

and for the same aggregate principal amount will be issued to the transferee in exchange therefor.

[10] The Bonds are issued in fully registered form in the denomination of $5,000 each or

authorized integral multiples thereof. This Bond may be exchanged at the principal corporate trust

office of the Bond Registrar for a like aggregate principal amount of Bonds of the same maturity

of other authorized denominations, upon the terms set forth in the authorizing resolution. The

Bond Registrar shall not be required to transfer or exchange any Bond during the period beginning

at the close of business on the 15th day of the month next preceding any interest payment date on

such Bond and ending at the opening of business on such interest payment date[, nor to transfer or

exchange any Bond after notice calling such Bond for redemption has been mailed, nor during a

period of fifteen (15) days next preceding mailing of a notice of redemption of any Bonds].

[11] The District and the Bond Registrar may deem and treat the Registered Owner hereof

as the absolute owner hereof for the purpose of receiving payment of or on account of principal

hereof and interest due hereon and for all other purposes, and neither the District nor the Bond

Registrar shall be affected by any notice to the contrary.


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(ASSIGNMENT)

FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto __________________________

________________________________________________________________________________________________________ (Name and Address of Assignee)

the within Bond and does hereby irrevocably constitute and appoint _______________________

______________________________________________________________________________

or its successor as attorney to transfer the said Bond on the books kept for registration thereof with

full power of substitution in the premises.

Dated: ______________________ _____________________________

Signature guaranteed: _______________________________

NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever.

Section 8. Sale of Bonds. The Chair of the Board and either the Vice-President for

Administrative Affairs or the Controller of the District (the “Designated Representatives”) are

hereby authorized to proceed not later than the 21st day of May, 2018, without any further

authorization or direction from the Board, to sell the Bonds upon the terms as prescribed in this

Resolution. The Bonds hereby authorized shall be executed as in this Resolution provided as soon

after the delivery of the Bond Notification as may be, and thereupon be deposited with Treasurer

of the Board, and, after authentication thereof by the Bond Registrar, be by said Treasurer delivered

to the purchaser thereof (the “Purchaser”) upon receipt of the purchase price therefor, the same

being not less than 98.0% of the principal amount of the Bonds (exclusive of original issue

discount), plus accrued interest to date of delivery.

The Purchaser shall be: (a) pursuant to a competitive sale conducted by PFM Financial

Advisors LLC, Chicago, Illinois (“PFM”), the best bidder for said Bonds; (b) in a negotiated

underwriting, a bank or financial institution listed in the Dealers & Underwriters or Municipal


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Derivatives sections of the most recent edition of The Bond Buyer’s Municipal Marketplace; or

(c) in a private placement, (i) a bank or financial institution authorized to do business in the State

of Illinois, (ii) a governmental unit as defined in the Debt Reform, or (iii) an “accredited investor”

as defined in Rule 501 of Regulation D as promulgated under the Securities Act of 1933, as

amended; provided, however, that the Purchaser as set forth in either (b) or (c) shall be selected

only upon the recommendation of PFM that the sale of said Bonds on a negotiated or private

placement basis to the Purchaser is in the best interest of the District because of (i) the pricing of

said Bonds by the Purchaser, (ii) then current market conditions or (iii) the timing of the sale of

said Bonds; and further provided, that the Purchaser as set forth in (c) may be selected through the

utilization of a placement agent selected by the Designated Representatives after consultation with

PFM if the use of such placement agent is determined by the Designated Representatives to be in

the best interest of the District.

Prior to the sale of the Bonds, the Chair of the Board or the Vice-President of

Administrative Affairs or the Controller or any other business official of the District is hereby

authorized to approve and execute a commitment for the purchase of a Municipal Bond Insurance

Policy (as hereinafter defined), to further secure the Bonds, as long as the present value of the fee

to be paid for the Municipal Bond Insurance Policy (using as a discount rate the expected yield on

the Bonds treating the fee paid as interest on the Bonds) is less than the present value of the interest

reasonably expected to be saved on the Bonds over the term of the Bonds as a result of the

Municipal Bond Insurance Policy.

Upon the sale of the Bonds, the Designated Representatives shall prepare a Notification of

Sale of the Bonds, which shall include the pertinent details of sale as provided herein (the “Bond

Notification”). In the Bond Notification, the Designated Representatives shall find and determine

that the Bonds have been sold at such price and bear interest at such rates that either the true interest


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cost (yield) or the net interest rate received upon the sale of the Bonds does not exceed the

maximum rate otherwise authorized by applicable law and that the net present value debt service

savings to the District as a result of the issuance of the Bonds and the refunding of the Refunded

Bonds is not less than 3.0% of the principal amount of the Refunded Bonds. The Bond Notification

shall be entered into the records of the District and made available to the Board at the next regular

meeting thereof; but such action shall be for information purposes only, and the Board shall have

no right or authority at such time to approve or reject such sale as evidenced in the Bond

Notification.

Upon the sale of the Bonds, as evidenced by the execution and delivery of the Bond

Notification by the Designated Representatives, the Chair, Secretary and Treasurer of the Board,

the Vice-President of Administrative Affairs and the Controller of the District and any other officer

of the District, as shall be appropriate, shall be and are hereby authorized and directed to approve

or execute, or both, such documents of sale of the Bonds as may be necessary, including, without

limitation, the contract for the sale of the Bonds between the District and the Purchaser (the

“Purchase Contract”). Prior to the execution and delivery of the Purchase Contract, the

Designated Representatives shall find and determine that no person holding any office of the

District, either by election or appointment, is in any manner interested, directly or indirectly, in his

or her own name or in the name of any other person, association, trust or corporation, in the

Purchase Contract.

The Bonds before being issued shall be registered, numbered and countersigned by the

Treasurer of the Board, such registration being made in a book provided for that purpose, in which

shall be entered the record of the resolution authorizing the Board to borrow said money and a

description of the Bonds issued, including the number, date, to whom issued, amount, rate of

interest and when due.


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The use by the Purchaser of any Preliminary Official Statement or Preliminary Term Sheet

and any final Official Statement or Term Sheet relating to the Bonds (the “Official Statement”) is

hereby ratified, approved and authorized; the execution and delivery of the Official Statement is

hereby authorized; and the officers of the Board are hereby authorized to take any action as may

be required on the part of the District to consummate the transactions contemplated by the Purchase

Contract, this Resolution, said Preliminary Official Statement or Preliminary Term Sheet, the

Official Statement and the Bonds.

Section 9. Tax Levy. In order to provide for the collection of a direct annual tax to pay

the interest on the Bonds as it falls due, and also to pay and discharge the principal thereof at

maturity, there be and there is hereby levied upon all the taxable property within the District a

direct annual tax for each of the years while the Bonds or any of them are outstanding, and there

be and there is hereby levied upon all of the taxable property in the District, the following direct

annual tax, to-wit:


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FOR THE YEAR A TAX TO PRODUCE THE SUM OF:

2017 $1,781,164.33 for interest and principal up to and including June 1, 2019

2018 $1,781,164.33 for interest and principal 2019 $1,781,164.33 for interest and principal 2020 $1,781,164.33 for interest and principal 2021 $1,781,164.33 for interest and principal 2022 $1,781,164.33 for interest and principal 2023 $1,781,164.33 for interest and principal 2024 $1,781,164.33 for interest and principal 2025 $1,781,164.33 for interest and principal

Principal or interest maturing at any time when there are not sufficient funds on hand from

the foregoing tax levy to pay the same shall be paid from the general funds of the District, and the

fund from which such payment was made shall be reimbursed out of the taxes hereby levied when

the same shall be collected.

The District covenants and agrees with the purchasers and the holders of the Bonds that so

long as any of the Bonds remain outstanding, the District will take no action or fail to take any

action which in any way would adversely affect the ability of the District to levy and collect the

foregoing tax levy and the District and its officers will comply with all present and future

applicable laws in order to assure that the foregoing taxes will be levied, extended and collected

as provided herein and deposited in the fund established to pay the principal of and interest on the

Bonds.

To the extent that the taxes levied above exceed the amount necessary to pay debt service

on the Bonds as set forth in the Bond Notification, the Chair, Secretary and Treasurer of the Board

are hereby authorized to direct the abatement of such taxes to the extent of the excess of such levy

in each year over the amount necessary to pay debt service on the Bonds in the following bond

year. Proper notice of such abatement shall be filed with the County Clerk of the County of Lake,

Illinois (the “County Clerk”), in a timely manner to effect such abatement.


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Section 10. Filing of Resolution and Certificate of Reduction of Taxes. Forthwith upon

the passage of this Resolution, the Secretary of the Board is hereby directed to file a certified copy

of this Resolution with the County Clerk, and it shall be the duty of the County Clerk to annually

in and for each of the years 2017 to 2025, inclusive, ascertain the rate necessary to produce the tax

herein levied, and extend the same for collection on the tax books against all of the taxable property

within the District in connection with other taxes levied in each of said years for community

college purposes, in order to raise the respective amounts aforesaid and in each of said years such

annual tax shall be computed, extended and collected in the same manner as now or hereafter

provided by law for the computation, extension and collection of taxes for general community

college purposes of the District, and when collected, the taxes hereby levied shall be placed to the

credit of a special fund to be designated “Refunding Bond and Interest Sinking Fund Account of

201[__]” (the “Bond Fund”), which taxes are hereby irrevocably pledged to and shall be used only

for the purpose of paying the principal of and interest on the Bonds; and a certified copy of this

resolution shall also be filed with the Treasurer of the Board.

The Chair, Secretary and Treasurer of the Board be and the same are hereby directed to

prepare and file with the County Clerk a Certificate of Reduction of Taxes Heretofore Levied for

the Payment of Bonds showing the Prior Bonds being refunded and directing the abatement of the

taxes heretofore levied to pay the Refunded Bonds, all as provided by the Act.

Section 11. Limitation on Extension; General Obligation Pledge; Additional

Obligations. Notwithstanding any other provision of this Resolution, the annual amount of the

taxes to be extended by the County Clerk to pay the Bonds and all other limited bonds (as defined

in the Debt Reform Act) heretofore and hereafter issued by the District shall not exceed the debt

service extension base (as defined in the Property Tax Extension Limitation Law of the State of

Illinois, as amended) of the District (the “Base”).


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No limit, however, exists on the rate of the direct annual tax levied herein, and the Bonds

shall constitute a general obligation of the District.

Payments on the Bonds from the Base will be made on a parity with the payments on the

Prior Bonds not refunded by the Bonds. The District is authorized to issue from time to time

additional limited bonds payable from the Base, as permitted by law, and to determine the lien

priority of payments to be made from the Base to pay the District’s limited bonds.

Section 12. Use of Taxes Heretofore Levied. All proceeds received or to be received from

any taxes heretofore levied to pay principal and interest on the Refunded Bonds, including the

proceeds received or to be received from the taxes levied for the year 2016 for such purpose, shall

be used to pay the principal of and interest on the Refunded Bonds and to the extent that such

proceeds are not needed for such purpose because of the establishment of the escrow referred to

in Section 13 hereof, the same shall be deposited into the Bond Fund and used to pay principal and

interest on the Bonds in accordance with all of the provisions of this Resolution.

Section 13. Use of Bond Proceeds. Accrued interest received on the delivery of the

Bonds, if any, is hereby appropriated for the purpose of paying first interest due on the Bonds and

is hereby ordered deposited into the Bond Fund. Simultaneously with the delivery of the Bonds,

the principal proceeds of the Bonds, together with any premium received from the sale of the

Bonds and such additional amounts as may be necessary from the general funds of the District, are

hereby appropriated to pay the costs of issuance of the Bonds and for the purpose of refunding the

Refunded Bonds, and that portion thereof not needed to pay such costs is hereby ordered deposited

in escrow pursuant to an Escrow Agreement to be hereafter authorized by the Board for the purpose

of paying the principal of and interest on the Refunded Bonds when due and upon redemption

prior to maturity as provided in the Escrow Agreement. At the time of the issuance of the Bonds,


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the costs of issuance of the Bonds may be paid by PFM or the Purchaser on behalf of the District

from the proceeds of the Bonds.

Section 14. Non-Arbitrage and Tax-Exemption. The District hereby covenants that it will

not take any action, omit to take any action or permit the taking or omission of any action within

its control (including, without limitation, making or permitting any use of the proceeds of the

Bonds) if taking, permitting or omitting to take such action would cause any of the Bonds to be an

arbitrage bond or a private activity bond within the meaning of the Internal Revenue Code of 1986,

as amended (the “Code”), or would otherwise cause the interest on the Bonds to be included in

the gross income of the recipients thereof for federal income tax purposes. The District

acknowledges that, in the event of an examination by the Internal Revenue Service (the “IRS”) of

the exemption from Federal income taxation for interest paid on the Bonds, under present rules,

the District may be treated as a “taxpayer” in such examination and agrees that it will respond in

a commercially reasonable manner to any inquiries from the IRS in connection with such an

examination.

The District also agrees and covenants with the purchasers and holders of the Bonds from

time to time outstanding that, to the extent possible under Illinois law, it will comply with whatever

federal tax law is adopted in the future which applies to the Bonds and affects the tax-exempt status

of the Bonds.

The Board hereby authorizes the officials of the District responsible for issuing the Bonds,

the same being the Chair, Secretary and Treasurer of the Board to make such further covenants

and certifications regarding the specific use of the proceeds of the Bonds as approved by the Board

and as may be necessary to assure that the use thereof will not cause the Bonds to be arbitrage

bonds and to assure that the interest on the Bonds will be exempt from federal income taxation. In

connection therewith, the District and the Board further agree: (a) through their officers, to make


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such further specific covenants, representations as shall be truthful, and assurances as may be

necessary or advisable; (b) to consult with counsel approving the Bonds and to comply with such

advice as may be given; (c) to pay to the United States, as necessary, such sums of money

representing required rebates of excess arbitrage profits relating to the Bonds; (d) to file such

forms, statements, and supporting documents as may be required and in a timely manner; and (e) if

deemed necessary or advisable by their officers, to employ and pay fiscal agents, financial

advisors, attorneys, and other persons to assist the District in such compliance.

Section 15. List of Bondholders. The Bond Registrar shall maintain a list of the names

and addresses of the holders of all Bonds and upon any transfer shall add the name and address of

the new Bondholder and eliminate the name and address of the transferor Bondholder.

Section 16. Duties of Bond Registrar. If requested by the Bond Registrar, the Chair and

Secretary of the Board are authorized to execute the Bond Registrar’s standard form of agreement

between the District and the Bond Registrar with respect to the obligations and duties of the Bond

Registrar hereunder which may include the following:

(a) to act as bond registrar, authenticating agent, paying agent and transfer agent as provided herein;

(b) to maintain a list of Bondholders as set forth herein and to furnish such list to the District upon request, but otherwise to keep such list confidential;

(c) to give notice of redemption of Bonds as provided herein;

(d) to cancel and/or destroy Bonds which have been paid at maturity or upon earlier redemption or submitted for exchange or transfer;

(e) to furnish the District at least annually a certificate with respect to Bonds cancelled and/or destroyed; and

(f) to furnish the District at least annually an audit confirmation of Bonds paid, Bonds outstanding and payments made with respect to interest on the Bonds.


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Section 17. Continuing Disclosure Undertaking. The Chair of the Board is hereby

authorized, empowered and directed to execute and deliver a Continuing Disclosure Undertaking

under Section (b)(5) of Rule 15c2-12 adopted by the Securities and Exchange Commission

pursuant to the Securities Exchange Act of 1934, as amended (the “Continuing Disclosure

Undertaking”). When the Continuing Disclosure Undertaking is executed and delivered on behalf

of the District as herein provided, the Continuing Disclosure Undertaking will be binding on the

District and the officers, employees and agents of the District, and the officers, employees and

agents of the District are hereby authorized, empowered and directed to do all such acts and things

and to execute all such documents as may be necessary to carry out and comply with the provisions

of the Continuing Disclosure Undertaking as executed. Notwithstanding any other provision of

this Resolution, the sole remedy for failure to comply with the Continuing Disclosure Undertaking

shall be the ability of the beneficial owner of any Bond to seek mandamus or specific performance

by court order to cause the District to comply with its obligations under the Continuing Disclosure

Undertaking.

Section 18. Municipal Bond Insurance. In the event the payment of principal and interest

on the Bonds is insured pursuant to a municipal bond insurance policy (the “Municipal Bond

Insurance Policy”) issued by a bond insurer (the “Bond Insurer”), and as long as such Municipal

Bond Insurance Policy shall be in full force and effect, the District and the Bond Registrar agree

to comply with such usual and reasonable provisions regarding presentment and payment of the

Bonds, subrogation of the rights of the Bondholders to the Bond Insurer upon payment of the

Bonds by the Bond Insurer, amendment hereof, or other terms, as approved by the Chair of the

Board on advice of counsel, his or her approval to constitute full and complete acceptance by the

District of such terms and provisions under authority of this Section.


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Section 19. Record-Keeping Policy and Post-Issuance Compliance Matters. On 23rd day

of October, 2012, the Board adopted a record-keeping policy (the “Policy”), subsequently

amended on the 21st day of May, 2013, in order to maintain sufficient records to demonstrate

compliance with its covenants and expectations to ensure the appropriate federal tax status for the

debt obligations of the District, the interest on which is excludable from “gross income” for federal

income tax purposes or which enable the District or the holder to receive federal tax benefits,

including, but not limited to, qualified tax credit bonds and other specified tax credit bonds. The

Board and the District hereby reaffirm the Policy as amended.



such section, paragraph or provision shall not affect any of the remaining provisions of this

Resolution.


are hereby repealed and this Resolution shall be in full force and effect forthwith upon its adoption.





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Trustee _______________________ moved and Trustee _________________________


After a full discussion thereof, the Chair directed that the roll be called for a vote upon the

motion to adopt said resolution.

Upon the roll being called, the following Trustees voted AYE: ______________________

_____________________________________________________________________________ .

NAY: ________________________________________________________________________

Whereupon the Chair declared the motion carried and said resolution adopted, approved

and signed the same in open meeting and directed the Secretary to record the same in the records




meeting.




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I do further certify that the deliberations of the Board on the adoption of said resolution were conducted openly, that the vote on the adoption of said resolution was taken openly, that said meeting was held at a specified time and place convenient to the public, that notice of said meeting was duly given to all of the news media requesting such notice, that an agenda for said meeting was posted at the location where said meeting was held and at the principal office of the Board at least 96 hours in advance of the holding of said meeting, that at least one copy of said agenda was continuously available for public review during the entire 96-hour period preceding said meeting, that a true, correct and complete copy of said agenda as so posted is attached hereto as Exhibit A, that said meeting was called and held in strict compliance with the provisions of the Open Meetings Act of the State of Illinois, as amended, the Public Community College Act of the State of Illinois, as amended, and the Local Government Debt Reform Act of the State of Illinois, and that the Board has complied with all of the provisions of said Acts and with all of the procedural rules of the Board.


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Page 138



FILING CERTIFICATE



____________, 201__, there was filed in my office a duly certified copy of a resolution entitled:


duly adopted by the Board of Trustees of Community College District No. 532, County of Lake

and State of Illinois, on the 21st day of November, 2017, and that the same has been deposited in

the official files and records of my office.

IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of said County,

this ____ day of ____________, 201__.

_______________________________________ County Clerk of The County of Lake, Illinois

(SEAL)


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FILING CERTIFICATE


the Board of Trustees of Community College District No. 532, County of Lake and State of Illinois,

and as such official I do further certify that on the 21st day of November, 2017, there was filed in

my office a duly certified copy of a resolution entitled:


duly adopted by the Board of Trustees on the 21st day of November, 2017, and that the same has

been deposited in the official files and records of my office.

I do further certify that the description of the outstanding General Obligation Limited Tax

Bonds, Series 2012, dated February 16, 2012, of the District set forth in the Escrow Agreement

referred to in Section 13 of said resolution is accurate, and that said bonds are presently outstanding

and unpaid and are binding and subsisting legal obligations of the District and have never been

refunded by the District.


2017.



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AGENDA ITEM NO. 7.8 – FINANCIAL ESCROW RESOLUTION -- RESOLUTION AUTHORIZING AND DIRECTING THE EXECUTION

OF AN ESCROW AGREEMENT IN CONNECTION WITH THE ISSUE OF GENERAL OBLIGATION LIMITED REFUNDING BONDS AND GENERAL OBLIGATION REFUNDING

BONDS (ALTERNATE REVENUE SOURCE) OF COMMUNITY COLLEGE DISTRICT NO. 532

The attached resolution is asking the Board to enter into an escrow agreement for such

Refunding Bonds related to the proceeds of the Bond refundings of the General Obligation Limited

Refunding Bonds and General Obligation Refunding Bonds (Alternate Revenue Source). The

proceeds of the Bonds will be used to refund, in advance of maturity, certain bonds of the District.

A trust must be set up with an escrow agent to pay the principal of and interest on the Refunded

Bonds when due and upon redemption prior to maturity.


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* * *


Richard Anderson, the Chair, and the following Trustees were physically present at said location:

______________________________________________________________________________

___________________________ and ______________________ (non-voting student member).

The following trustees were allowed by a majority of the trustees of the Board of Trustees

in accordance with and to the extent allowed by rules adopted by the Board of Trustees to attend

the meeting by video or audio conference: ____________________________________________

______________________________________________________________________________

No trustee was not permitted to attend the meeting by video or audio conference.

The following trustees were absent and did not participate in the meeting in any manner or

to any extent whatsoever: _________________________________________________________

______________________________________________________________________________

The Chair announced that proceeds of the District’s General Obligation Refunding Bonds

(Alternate Revenue Source) and General Obligation Limited Refunding Bonds would be used to

refund outstanding bonds of the District and in connection therewith, it would be necessary for the

District to enter into an escrow agreement with a bank or trust company authorized to do business

in the State of Illinois, and that the Board of Trustees would consider the adoption of a resolution

authorizing and directing the execution of such escrow agreement.


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Whereupon Trustee __________________ presented and the Secretary read by title a

resolution as follows, a copy of which was provided to each trustee of the Board of Trustees prior

to said meeting and to everyone in attendance at said meeting who requested a copy:


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RESOLUTION authorizing and directing the execution of an Escrow Agreement in connection with the issue of General Obligation Limited Refunding Bonds and General Obligation Refunding Bonds (Alternate Revenue Source) of Community College District No. 532, County of Lake and State of Illinois.

* * *

WHEREAS, Community College District No. 532, County of Lake and State of Illinois. (the

“District”), has provided by resolutions adopted by the Board of Trustees of the District (the

“Board”) on the 21st day of November, 2017, for the issuance of not to exceed $20,000,000

General Obligation Limited Refunding Bonds and not to exceed $57,000,000 General Obligation

Refunding Bonds (Alternate Revenue Source) (together, the “Bonds”); and

WHEREAS, proceeds of the Bonds will be used to refund in advance of maturity certain

bonds of the District described more particularly in the form of escrow agreement set forth herein

(the “Refunded Bonds”); and

WHEREAS, in order to properly provide for the refunding of the Refunded Bonds, it will be

necessary to place proceeds of the Bonds, together with certain funds of the District on hand and

legally available for such purpose, in trust with an escrow agent to be invested by such escrow

agent, on behalf of the District, in direct obligations of or obligations guaranteed by the full faith

and credit of the United States of America, the principal of and interest on which will be sufficient,

when added to such beginning demand deposit with the escrow agent as may be necessary, to pay

the principal of and interest on the Refunded Bonds when due and upon redemption prior to

maturity; and

WHEREAS, in accordance with the terms of the Refunded Bonds, certain of the Refunded

Bonds may be called for redemption in advance of their maturity, and it is necessary and desirable


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to make such call for the redemption of such Refunded Bonds on their earliest possible call date,

and provide for the giving of proper notice to the registered owners of such Refunded Bonds; and

WHEREAS, it is necessary that the Board authorize the form of escrow agreement with an

escrow agent and direct the execution of such escrow agreement by officers of the District:






Section 2. Definitions. The words and terms used in this Resolution shall have the

definitions set forth for them in the form of escrow agreement provided herein, unless the context

or use of same shall clearly indicate that another meaning is intended.

Section 3. The Funding of the Escrow. As provided in the Bond Resolution, so much

of the proceeds of the Bonds as therein appropriated, together with such further amounts as may

be necessary from the general funds of the District, shall be used to acquire the Government

Securities and to provide a beginning cash deposit and so provide for the payment of all interest

on and all principal of the Refunded Bonds when due and upon redemption prior to maturity. Such

proceeds and general funds of the District will be deposited in trust in the Escrow Account with

the Escrow Agent, as provided in this Resolution. The amount of the proceeds of the Bonds (within

the amount appropriated in the Bond Resolution) and the amount of funds of the District on hand

and legally available which are necessary to be deposited in the Escrow Account shall be

conclusively established under the terms of the Agreement, which will be executed by designated

officers of the District, and such officers are hereby authorized to make such determination.


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Section 4. Call of the Refunded Bonds. In accordance with the redemption provisions

of the resolution authorizing the issuance of the Refunded Bonds, the District by the Board does

hereby make provision for the payment of and does hereby call (subject only to the delivery of the

Bonds) (i) the 2012 Refunded Bonds due on and after December 1, 2022, for redemption on

December 1, 2021, (i) the 2013A Refunded Bonds due on and after June 1, 2023, for redemption

on June 1, 2022, and (i) the 2013B Refunded Bonds due on and after June 1, 2024, for redemption

on June 1, 2020, all as provided by the terms of the Escrow Agreement.

Section 5. Form and Authorization of Agreement. The Agreement and all the terms

thereof, in the form provided hereby, are hereby approved, and the Chair and Secretary of the

Board are hereby authorized and directed to execute the Agreement in the name of the District.

The Agreement shall be in substantially the following form:


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ESCROW AGREEMENT

This Escrow Agreement, dated as of ________, 201__, but actually executed on the date

witnessed hereinbelow, by and between Community College District No. 532, County of Lake and

State of Illinois (the “District”), and _____________________, a banking corporation having

trust powers, organized and operating under the laws of the State of Illinois, located in

___________, Illinois (the “Escrow Agent”), in consideration of the mutual promises and

agreements herein set forth:

W I T N E S S E T H:

ARTICLE I

DEFINITIONS

The following words and terms used in this Agreement shall have the following meanings

unless the context or use clearly indicates another or different meaning:

Section 1.01. “Agreement” means this Agreement between the District and the Escrow

Agent.

Section 1.02. “Board” means the Board of Trustees of the District.

Section 1.03. “Bonds” means the $_______ General Obligation Refunding Bonds

(Alternate Revenue Source), Series 201__, dated ________, 201__, and $______ General

Obligation Limited Refunding Bonds, Series 201__, dated ________, 201__, authorized to be

issued by the Bond Resolution.

Section 1.04. “Bond Resolution” means the resolutions adopted on the 21st day of

November, 2017, by the Board entitled:

RESOLUTION providing for the issue of not to exceed $57,000,000 General Obligation Refunding Bonds (Alternate Revenue Source) of Community College District No. 532, County of Lake and State of Illinois, for the purpose of refunding certain outstanding bonds of said District, providing for the pledge of certain revenues to the


Page 147


payment of principal and interest on said bonds and the levy of a direct annual tax sufficient to pay such principal and interest if the pledged revenues are insufficient to make such payment, and authorizing the sale of said bonds to the purchaser thereof.

and


authorizing the issuance of the Bonds, as supplemented by separate notifications of sale dated _________, 201__.

Section 1.05. “Code” means Section 148 of the Internal Revenue Code of 1986, and all

lawful regulations promulgated thereunder.

Section 1.06. “District” means Community College District No. 532, County of Lake and

State of Illinois.

Section 1.07. “Escrow Account” means the trust account established under this Agreement

by the deposit of the Government Securities and the beginning cash.

Section 1.08. “Escrow Agent” means _____________________, a banking corporation

having trust powers, organized and operating under the laws of the State of Illinois, located in

___________, Illinois, not individually but in the capacity for the uses and purposes hereinafter

mentioned, or any successor thereto.

Section 1.09. “Government Securities” means the non-callable direct obligations of or

non-callable obligations guaranteed by the full faith and credit of the United States of America, or

a money market fund composed entirely of cash and such obligations, as to principal and interest

deposited hereunder as more particularly described in Exhibit A to this Agreement and also

including any direct obligations purchased pursuant to Section 3.02. Agenda Item 7.8

November 21, 2017

Page 148


Section 1.10. “Paying Agent” means Amalgamated Bank of Chicago, Chicago, Illinois, as

bond registrar and paying agent for the Refunded Bonds, and any successor thereto.

Section 1.11. “Refunded Bonds” means the outstanding bonds of the District as follows:

(a) $________ General Obligation Bonds (Alternate Revenue Source), Series 2013A, dated September 18, 2013 (the “2013A Refunded Bonds”), being [all][a portion] of the bonds outstanding from an issue in the original principal amount of $31,690,000, fully registered and without coupons, due serially on June 1 of the years, in the amounts and bearing interest at the rates per annum as follows:

YEAR OF

MATURITY PRINCIPAL AMOUNT

RATE OF INTEREST

2018 $3,795,000 3.00% 2019 3,910,000 4.00% 2020 4,065,000 4.00% 2021 4,230,000 4.00% 2022 4,400,000 4.00% 2023 4,575,000 4.00% 2024 1,760,000 3.50%

(b) $________ General Obligation Bonds (Alternate Revenue Source), Series 2013B, dated September 27, 2013 (the “2013B Refunded Bonds”), being [all][a portion] of the bonds outstanding from an issue in the original principal amount of $26,790,000, fully registered and without coupons, due serially on June 1 of the years, in the amounts and bearing interest at the rates per annum as follows:

YEAR OF


RATE OF INTEREST

2024 $3,000,000 3.50% 2025 1,490,000 3.75% 2026 1,545,000 4.00% 2027 1,605,000 4.15% 2028 1,675,000 4.30% 2029 1,745,000 4.40% 2030 1,820,000 4.50% 2031 1,905,000 4.60% 2032 1,990,000 4.65% 2033 2,085,000 4.70% 2034 2,185,000 4.75%


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(c) $________ General Obligation Limited Tax Bonds, Series 2012, dated February 16, 2012 (the “2012 Refunded Bonds”), being [all][a portion] of the bonds outstanding from an issue in the original principal amount of $19,850,000, fully registered and without coupons, due serially on December 1 of the years, in the amounts and bearing interest at the rates per annum as follows:

YEAR OF


RATE OF INTEREST

2018 $1,395,000 2.00% 2019 1,450,000 2.00% 2020 1,515,000 3.00% 2021 1,585,000 3.00% 2022 1,665,000 3.00% 2023 1,745,000 3.00% 2024 1,825,000 3.00% 2025 1,910,000 3.00% 2026 1,595,000 3.00%

Section 1.12. “Treasurer” means the Treasurer of the Board.

ARTICLE II

CREATION OF ESCROW

Section 2.01. The District by the Bond Resolution has authorized the issue and delivery of

the Bonds, proceeds of which, together with certain funds of the District on hand and legally

available for such purpose, are to be used to refund the Refunded Bonds by the deposit on demand

and to purchase on behalf of the District the Government Securities. Such deposit and securities

will provide all moneys necessary to pay the principal of and interest on the Refunded Bonds when

due and upon redemption prior to maturity.

Section 2.02. The District deposits $_____________ from the proceeds of the Bonds,

$_____________ from the proceeds of the Refunded Bonds and $_____________ from funds on

hand and legally available for the purchase of Government Securities and the funding of a

beginning cash escrow deposit on demand in the amount of $_____________. The beginning

deposit and the Government Securities are held in an irrevocable trust fund account for the District


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to the benefit of the holders of the Refunded Bonds to pay the principal of and interest on the

Refunded Bonds when due and upon redemption prior to maturity.

Section 2.03. The Escrow Agent and the District have each received the report of

___________________, attached hereto as Exhibit B (the “Verification Report”), that the principal

of and income and profit to be received from the Government Securities, when paid at maturity,

and the cash held in accordance with Section 2.02 hereof, will be sufficient, at all times pending

the final payment of the Refunded Bonds, to pay all interest on and all principal of the Refunded

Bonds when due and upon redemption prior to maturity as evidenced by said Report.

ARTICLE III

COVENANTS OF ESCROW AGENT

The Escrow Agent covenants and agrees with the District as follows:

Section 3.01. The Escrow Agent will hold the Government Securities and all interest

income or profit derived therefrom and all uninvested cash in an irrevocable segregated and

separate trust fund account for the sole and exclusive benefit of the holders of the Refunded Bonds

until final payment thereof.

Section 3.02. The beginning cash escrow deposit shall not be invested by the Escrow

Agent. Otherwise, the Escrow Agent will reinvest all available uninvested balances (except for an

amount under $1,000 or as explicitly provided in this Section) in the Escrow Account on deposit

from time to time, whenever said balances exceed $1,000 unless said balance is needed to pay

principal of or interest on refunded bonds within 14 days, and acknowledges that the schedule of

amounts available for reinvestment appears in the cash flow tables in the Verification Report and

in Exhibit C. Investments so made shall be in direct obligations of the United States of America

and shall be scheduled to mature on or prior to the interest payment date on the Refunded Bonds


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on which such proceeds will be needed to pay the principal of or interest on the Refunded Bonds.

Such investments shall, to the extent possible, be in zero-yield obligations issued directly by the

Bureau of Fiscal Service of the United States Treasury (currently designated “U. S. Treasury

Securities—State and Local Government Series Certificates of Indebtedness, Notes or Bonds”)

(“SLGS”). Such investments shall be made only to the extent permitted by, and shall be made in

accordance with, the applicable statutes, rules and regulations governing such investments issued

by the Bureau of Fiscal Service. The Escrow Agent expressly recognizes that under current

regulations all SLGS must be subscribed for not less than 5 days (7 days for amounts of

$10,000,000 or more) nor more than 60 days prior to date of issuance.

Exhibit C contains a list of scheduled reinvestments. The Escrow Agent is instructed to

subscribe for and take delivery of SLGS as described in Exhibit C.

If the Department of the Treasury (or the Bureau of Fiscal Service) of the United States

suspends the sale of SLGS causing the Escrow Agent to be unable to purchase SLGS, then the

Escrow Agent will take the following actions. On the date it would have purchased SLGS had it

been able to do so, the Escrow Agent will purchase direct obligations of the United States (the

“Alternate Investment”) maturing no later than the scheduled maturity date of such SLGS as

shown on Exhibit C. The purchase price of the Alternate Investment shall be as close as possible

but not more than to the principal amount of the SLGS that would have been purchased on such

date if they had been available for purchase and also not more than the total of all principal and

interest to be received on such investment. The maturity date of the Alternate Investment shall be

the latest possible date that (i) is not more than 90 days after the purchase date and (ii) is not after

the scheduled maturity date for the SLGS that would have been purchased if available as shown

on Exhibit C. The Escrow Agent will purchase each Alternate Investment in the customary manner

for such investments (in the secondary market or in a Treasury auction) at a price no higher than


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the fair market value of the Alternate Investment and will maintain records demonstrating

compliance with this requirement. If the Escrow Agent is unable to purchase any investment

satisfying all of these requirements, then the Escrow Agent will leave the balance uninvested and

shall notify the District that it has been unable to purchase such an Alternate Investment, providing

the reason for such inability to the District. On the maturity of each Alternate Investment, the

Escrow Agent shall pay the difference between the total of the receipts (principal and interest) on

the Alternate Investment and the purchase price of the Alternate Investment to the District with a

notice to the District that such amount may need to be paid to the Internal Revenue Service

pursuant to Rev. Proc. 95-47 or successor provisions including any finalized version of Prop.

Treas. Reg. Section 1.148-5(c). If the Alternate Investment matures more than 14 days prior to

the next succeeding interest payment date on the Refunded Bonds on which such proceeds will be

needed to pay principal of or interest on the Refunded Bonds, the Escrow Agent shall treat such

amounts as an uninvested balance available for reinvestment and shall take all reasonable steps to

invest such amounts in SLGS (or additional Alternate Investments as provided in this Section).

The Escrow Agent shall hold balances not so invested in the Escrow Account on demand

and in trust for the purposes hereof and shall secure same in accordance with applicable Illinois

law for the securing of public funds.

Section 3.03. The Escrow Agent will take no action in the investment or securing of the

proceeds of the Government Securities which would cause the Bonds to be classified as “arbitrage

bonds” under the Code, provided, it shall be under no duty to affirmatively inquire whether the

Government Securities as deposited are properly invested under the Code; and, provided, further,

it may rely on all specific directions in this Agreement in the investment or reinvestment of

balances held hereunder.


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Section 3.04. The Escrow Agent will promptly collect the principal, interest or profit from

the Government Securities and promptly apply the same as necessary to the payment of principal

and interest on the Refunded Bonds when due and upon redemption prior to maturity as herein

provided.

Section 3.05. The Escrow Agent will remit to the Paying Agent, in good funds on or before

each principal or interest payment or redemption date on the Refunded Bonds, moneys sufficient

to pay such principal, interest and redemption price as will meet the requirements for the retirement

of the Refunded Bonds, and such remittances shall fully release and discharge the Escrow Agent

from any further duty or obligation thereto under this Agreement.

Section 3.06. The Escrow Agent will make no payment of fees, charges or expenses due or

to become due, of the Paying Agent or the bond registrar and paying agent on the Bonds, and the

District either paid such fees, charges and expenses in advance as set forth in Section 3.07 hereof

or covenants to pay the same as they become due.

Section 3.07. The charges, fees and expenses of the Escrow Agent (other than any charges,

fees and expenses incurred pursuant to Section 3.08 hereof) have been paid in advance, and all

charges, fees or expenses of the Escrow Agent in carrying out any of the duties, terms or provisions

of this Agreement shall be paid solely therefrom. The Escrow Agent is also providing bond

registrar and paying agent services for the Bonds, and the acceptance fee and first annual fee of

the Escrow Agent for such bond registrar and paying agent services have been paid in advance,

and all remaining charges, fees or expenses of the Escrow Agent for such services shall be paid by

the District upon receipt of invoices therefor.

Section 3.08. The District has called (i) the 2012 Refunded Bonds due on and after

December 1, 2022, for redemption on December 1, 2021, (i) the 2013A Refunded Bonds due on

and after June 1, 2023, for redemption on June 1, 2022, and (i) the 2013B Refunded Bonds due on


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and after June 1, 2024, for redemption on June 1, 2020. The Escrow Agent will cause the Paying

Agent to provide for and give timely notice of the call for redemption of such Refunded Bonds.

In the event the Escrow Agent determines that the Paying Agent will not give such timely notice,

the Escrow Agent will give such notice. The form and time of the giving of such notice regarding

such Refunded Bonds shall be as specified in the resolution authorizing the issuance of the

Refunded Bonds. The District shall reimburse the Escrow Agent for any actual out of pocket

expenses incurred in the giving of such notice, but the failure of the District to make such payment

shall not in any respect whatsoever relieve the Escrow Agent from carrying out any of the duties,

terms or provisions of this Agreement.

The Escrow Agent shall also give, or shall cause the Paying Agent to give, notice of the

call of the Refunded Bonds, on or before the date the notice of such redemption is given to the

holders of the Refunded Bonds, to the Municipal Securities Rulemaking Board (the “MSRB”)

through its Electronic Municipal Market Access system for municipal securities disclosure or

through any other electronic format or system prescribed by the MSRB for purposes of Rule 15c2-

12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of

1934, as amended. Information with respect to procedures for submitting notice can be found

at https://msrb.org.

Section 3.09. The Escrow Agent has all the powers and duties herein set forth with no

liability in connection with any act or omission to act hereunder, except for its own negligence or

willful breach of trust, and shall be under no obligation to institute any suit or action or other

proceeding under this Agreement or to enter any appearance in any suit, action or proceeding in

which it may be defendant or to take any steps in the enforcement of its, or any, rights and powers

hereunder, nor shall be deemed to have failed to take any such action, unless and until it shall have

been indemnified by the District to its satisfaction against any and all costs and expenses, outlays,


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https://msrb/


counsel fees and other disbursements, including its own reasonable fees, and if any judgment,

decree or recovery be obtained by the Escrow Agent, payment of all sums due it, as aforesaid, shall

be a first charge against the amount of any such judgment, decree or recovery.

Section 3.10. The Escrow Agent may in good faith buy, sell or hold and deal in any of the

Bonds or the Refunded Bonds.

Section 3.11. The Escrow Agent will submit to the Treasurer a statement within forty-five

(45) days after June 2 and December 2 of each calendar year, commencing ___________ 2, 201__,

itemizing all moneys received by it and all payments made by it under the provisions of this

Agreement during the preceding six (6) month period (or, for the first period, from the date of

delivery of the Bonds to ___________ 2, 201__), and also listing the Government Securities on

deposit therewith on the date of said report, including all moneys held by it received as interest on

or profit from the collection of the Government Securities.

Section 3.12. If at any time it shall appear to the Escrow Agent that the available proceeds

of the Government Securities and deposits on demand in the Escrow Account will not be sufficient

to make any payment due to the holders of any of the Refunded Bonds, the Escrow Agent shall

notify the Treasurer and the Board, not less than five (5) days prior to such date, and the District

agrees that it will from any funds legally available for such purpose make up the anticipated deficit

so that no default in the making of any such payment will occur.

ARTICLE IV

COVENANTS OF DISTRICT

The District covenants and agrees with the Escrow Agent as follows:

Section 4.01. The Escrow Agent shall have no responsibility or liability whatsoever for (a)

any of the recitals of the District herein, (b) the performance of or compliance with any covenant,


Page 156


condition, term or provision of the Bond Resolution, and (c) any undertaking or statement of the

District hereunder or under the Bond Resolution.

Section 4.02. All payments to be made by, and all acts and duties required to be done by,

the Escrow Agent under the terms and provisions of this Agreement, shall be made and done by

the Escrow Agent without any further direction or authority of the District or the Treasurer.

Section 4.03. The District will take no action regarding the proceeds of the Bonds which

would cause the Bonds to be classified as “arbitrage bonds” under the Code, and the District will

take any and all further action necessary to ensure that adequate provision is made for the payment

of the Refunded Bonds and that neither the Refunded Bonds nor the Bonds are classified as

“arbitrage bonds” under the Code.

ARTICLE V

AMENDMENTS, REINVESTMENT OF FUNDS, IRREVOCABILITY OF AGREEMENT

Section 5.01. Except as provided in Section 5.04 hereof, all of the rights, powers, duties

and obligations of the Escrow Agent hereunder shall be irrevocable and shall not be subject to

amendment by the Escrow Agent and shall be binding on any successor to the Escrow Agent during

the term of this Agreement.


and obligations of the District hereunder shall be irrevocable and shall not be subject to amendment

by the District and shall be binding on any successor to the officials now comprising the Board

during the term of this Agreement.


and obligations of the Treasurer hereunder shall be irrevocable and shall not be subject to


Page 157


amendment by the Treasurer and shall be binding on any successor to said official now in office

during the term of this Agreement.

Section 5.04. This Agreement may be amended or supplemented, and the Government

Securities or any portion thereof may be sold, redeemed, invested or reinvested, in any manner

provided (any such amendment, supplement, or direction to sell, redeem, invest or reinvest to be

referred to as a “Subsequent Action”), upon submission to the Escrow Agent of each of the

following:

(1) Certified copy of proceedings of the Board authorizing the Subsequent Action

and copy of the document effecting the Subsequent Action signed by duly designated

officers of the District.

(2) An opinion of nationally recognized bond counsel or tax counsel nationally

recognized as having an expertise in the area of tax-exempt municipal bonds that the

Subsequent Action has been duly authorized by the Board and will not adversely affect the

tax-exempt status of the interest on the Bonds or the Refunded Bonds nor violate the

covenants of the District not to cause the Bonds or the Refunded Bonds to become

“arbitrage bonds” under the Code, and that the Subsequent Action does not materially

adversely affect the legal rights of the holders of the Bonds and the Refunded Bonds.

(3) An opinion of a firm of nationally recognized independent certified public

accountants or consultants nationally recognized as having an expertise in the area of

refunding escrows that the amounts (which will consist of cash or deposits on demand held

in trust or receipts from non-callable direct obligations of or non-callable obligations

guaranteed by the full faith and credit of the United States of America, all of which shall

be held hereunder) available or to be available for payment of the Refunded Bonds will


Page 158


remain sufficient to pay when due all principal and interest on the Refunded Bonds after

the taking of the Subsequent Action.

ARTICLE VI

MERGER, CONSOLIDATION OR RESIGNATION OF ESCROW AGENT

Any banking association or corporation into which the Escrow Agent may be merged,

converted or with which the Escrow Agent may be consolidated, or any corporation resulting from

any merger, conversion or consolidation to which the Escrow Agent shall be a party, or any

banking association or corporation to which all or substantially all of the corporate trust business

of the Escrow Agent shall be transferred, shall succeed to all the Escrow Agent’s rights, obligations

and immunities hereunder without the execution or filing of any paper or any further act on the

part of any of the parties hereto, anything herein to the contrary notwithstanding. The Escrow

Agent may at any time resign as Escrow Agent under this Agreement by giving 30 days’ written

notice to the District, and such resignation shall take effect upon the appointment of a successor

Escrow Agent by the District. The District may select as successor Escrow Agent any financial

institution with capital, surplus and undivided profits of at least $75,000,000 and having a

corporate trust office within the State of Illinois, and which is authorized to maintain trust accounts

for municipal corporations in Illinois under applicable law.

ARTICLE VII

NOTICES TO THE DISTRICT, THE TREASURER AND THE ESCROW AGENT

Section 7.01. All notices and communications to the District and the Board shall be

addressed in writing to: Board of Trustees, College of Lake County, 19351 West Washington

Street, Grayslake, Illinois 60030.


Page 159


Section 7.02. All notices and communications to the Treasurer shall be addressed in writing

to: Treasurer, College of Lake County, 19351 West Washington Street, Grayslake, Illinois 60030.

Section 7.03. All notices and communications to the Escrow Agent shall be addressed in

writing to: Corporate Trust Department, _____________________, __________, ___________,

Illinois _________.

ARTICLE VIII

TERMINATION OF AGREEMENT

Section 8.01. That, upon final disbursement of funds sufficient to pay the principal and

interest of the Refunded Bonds as hereinabove provided for, the Escrow Agent will transfer any

balance remaining in the Escrow Account to the Treasurer with due notice thereof mailed to the

Board, and thereupon this Agreement shall terminate.


Page 160


IN WITNESS WHEREOF, Community College District No. 532, County of Lake and State of

Illinois., has caused this Agreement to be signed in its name by the Chair of the Board and to be

attested by the Secretary of the Board; and _____________________, ___________, Illinois, not

individually, but in the capacity as hereinabove described, has caused this Agreement to be signed

in its corporate name by one of its officers and attested by one of its officers under its corporate

seal hereunto affixed, all as of the ____ day of _____________, 201__. COMMUNITY COLLEGE DISTRICT NO. 532,

COUNTY OF LAKE AND STATE OF ILLINOIS. By SPECIMEN

Chair, Board of Trustees

Attest:


_____________________

___________, Illinois By ____________________________________ Its __________________________________

Attest: _________________________________ Its_______________________________ [BANK SEAL]

This Escrow Agreement received and acknowledged by me this ____ day of _________,

201__.



Page 161


EXHIBIT A

GOVERNMENT SECURITIES [To be completed as of closing]


Page 162


EXHIBIT B

VERIFICATION REPORT [To be completed as of closing]


Page 163


EXHIBIT C

SCHEDULED REINVESTMENTS [To be completed as of closing]


Page 164


Section 6. Purchase of the Government Securities. The Purchaser of the Bonds (as

defined in the Bond Resolution), PFM Financial Advisors LLC, Chicago, Illinois, as financial

advisor, and the Escrow Agent be and the same are each hereby authorized to act as agent for the

District in the purchase of the Government Securities described and set forth in the Agreement.



such section, paragraph, clause or provision shall not affect any of the remaining provisions of this

Resolution.


are hereby repealed, and this Resolution shall be in full force and effect forthwith upon its adoption.





Page 165


Trustee ________________ moved and Trustee ______________________ seconded the

motion that said resolution as presented and read by title be adopted.

After a full and complete discussion thereof, the Chair directed that the roll be called for a

vote upon the motion to adopt said resolution.

Upon the roll being called, the following trustees voted AYE: _______________________

______________________________________________________________________________

______________________________________________________________________________

The following trustees voted NAY: ____________________________________________

Whereupon the Chair declared the motion carried and the resolution adopted, approved and

signed the same in open meeting and directed the Secretary to record the same in full in the records




meeting.




Page 166






RESOLUTION authorizing and directing the execution of an Escrow Agreement in connection with the issue of General Obligation Limited Refunding Bonds and General Obligation Refunding Bonds (Alternate Revenue Source) of Community College District No. 532, County of Lake and State of Illinois.


I do further certify that the deliberations of the Board on the adoption of said resolution were conducted openly, that the vote on the adoption of said resolution was taken openly, that said meeting was called and held at a specified time and place convenient to the public, that notice of said meeting was duly given to all of the news media requesting such notice, that an agenda for said meeting was posted at the location where said meeting was held and at the principal office of the Board at least 96 hours in advance of the holding of said meeting, that at least one copy of said agenda was continuously available for public review during the entire 96-hour period preceding said meeting, that a true, correct and complete copy of said agenda as so posted is attached hereto as Exhibit A, that said meeting was called and held in strict compliance with the provisions of the Open Meetings Act of the State of Illinois, as amended, and with the provisions of the Public Community College Act of the State of Illinois, as amended, and that the Board has complied with all of the provisions of said Acts and with all of the procedural rules of the Board in the conduct of said meeting and in the adoption of said resolution.




Page 167


Page 168

AGENDA ITEM NO. 8.1 - PURCHASING

BIDDABLE ITEM RFB #17035

Item Account Description 1 586701-03-03728-8060-01 SCIENCE BUILDING LAB

EQUIPMENT LEAD STAFF: Mike Welch, Facilities Director ____________________________ I. BIDS AMOUNT *1. Fischer Scientific Company $ 94,311.98

2. Products Unlimited, Inc. $ 105,905.84 3. Columbia Scientific $ 116,321.93 II. STATEMENT OF NEED

This is for the purchase of laboratory supplies and equipment for the new science building at Grayslake Campus. The budgeted amount is $125,000.00.

III. EXPLANATION OF PURCHASE

The request for bids for the Science Building lab equipment was advertised for approximately 4 weeks, ending November 2, 2017. Proactively, the College solicited nine (9) firms. Eight proposals were received, of which three (3) were complete and deemed to be responsive bids. Fisher Scientific is the apparent lowest responsive and responsible bidder.

IV. RECOMMENDATION OF AWARD

It is recommended that the Board of Trustees approve an award for laboratory supplies and equipment to Fischer Scientific of Pittsburgh, PA in the amount of $94,311.98.

*Recommended for Approval

Agenda Item 8.1

November 21, 2017

Page 169

AGENDA ITEM NO. 8.2 – PURCHASING

NON-BIDDABLE ITEM

Item Account Description 1 534009-01-00021-8080-01 CISCO SMARTNET NETWORK

SUPPORT & MAINTENANCE LEAD STAFF: Lynn Butler, CIO, Information Technology Services _________________________ I. PROPOSALS AMOUNT *1. Cisco Systems Capital Corporation $385,992.69 II. STATEMENT OF NEED

This request is for the renewal of the Cisco maintenance agreement for the College. The maintenance agreement supports the College’s network switches and routers. This agreement provides support, troubleshooting and replacement equipment. Administration requests approval to enter into a three (3) year maintenance agreement with an annual cost of $128,664.23. The budgeted amount is $386,000.00.


Pursuant to 110 ILCS 805/3-27.1 (e) contracts for maintenance or service of, or provision of repair parts for, equipment which are made with the manufacturer, this purchase is exempt from the competitive bidding process.


It is recommended that the Board of Trustees approve a three (3) year maintenance agreement with Cisco Systems Capital Corporation of Wayne, PA in the annual amount of $128,664.23, and a three (3) year not-to-exceed total of $385,992.69.


Agenda Item 8.2

November 21, 2017

Page 170

AGENDA ITEM NO. 8.2 – PURCHASING (Continued)

NON-BIDDABLE ITEM

Item Account Description 2 589000-01-01095-8080-01 ANNUAL SERVER PURCHASE

LEAD STAFF: Lynn Butler CIO, Information Technology Services

_________________________ I. PROPOSALS AMOUNT *1. Hewlett Packard $208,000.00 II. STATEMENT OF NEED

At the August 2017 meeting, the Board of Trustees approved the annual purchase of server equipment for $121,998.00, of which $97,998.00 pertained to a refresh of our virtual server environment. As we work toward improving the efficiencies of server operations, we have identified opportunities to pursue a new strategy, which includes faster performance, energy conservation, and disaster recovery.

The budgeted amount is $208,000.00


Administration request approval for a change order in the amount of $86,002.00 for a new awarded total of $208,000.00.


It is recommended that the Board of Trustees approve a change order in the amount of $86,002.00 for a new not-to-exceed total of $208,000.00 for the purchase of server equipment from Hewlett Packard of Austin, TX.


Agenda Item 8.2

November 21, 2017

Page 171


NON-BIDDABLE ITEM

Item Account Description 3 533000-03-03016-8060-01 PROJECT MANAGEMENT SERVICES LEAD STAFF: Mike Welch, Facilities Director _________________________ I. PROPOSALS AMOUNT *1. Cotter Consulting $300,000.00 II. STATEMENT OF NEED

In May 2013, the Board approved an agreement with Cotter Consulting for a three-year contract with two renewal options for owner’s representative services for the college’s Master Plan projects at a not-to-exceed cost of $2,761,276.00 leaving an unbilled balance of $485,141.00. This contract expires December 31, 2017; no additional fees are requested for the work included under this initial contract. Subsequently, the College is proposing to expand the Scope to extend this contract through December 2019 to address remaining Master Plan project needs and support new Master Plan project priorities. Administration requests an additional $300,000.00 for this work.


The original agreement included various projects under the Master Plan. The remaining projects under the original Master Plan include the Library and E Building renovations, which will be completed when these spaces are no longer being used for swing space, as well as the CNC lab renovation and the sustainable farm stand. It is anticipated that all of these projects will be completed by the end of 2018. An additional $300,000.00 is requested to assist with the development and implementation of the next phase of the Master Plan, through December 31, 2019. The recommendation for extension of the existing agreement for professional services is pursuant to 110 ILCS 805/3-27.1.


It is recommended that the Board of Trustees approve an amendment to the Agreement with Cotter Consulting to extend owner’s representative services through December 31, 2019 for a not-to-exceed amount of $300,000.00 for a new contractual total of $3,061,276.00. * Recommended for Purchase

Agenda Item 8.2 November 21, 2017 Page 172

AGENDA ITEM NO. 8.2 - PURCHASING (Continued)

NON-BIDDABLE ITEM RFB #17035

Item Account Description 4 584000-02-00079-8060-01 CLEANING EQUIPMENT

LEAD STAFF: Mike Welch, Facilities Director ____________________________ I. BIDS AMOUNT *1. WW Grainger, Inc. $ 41,941.63 II. STATEMENT OF NEED

This purchase is to replace the following carpet cleaning equipment for the custodial department:

• 1 Floor Scrubber - $6,788.00 • 1 Rider Carpet Extractor - $13,966.00 • 1 Battery Powered Sweepers - $12,471.00/ea • 5 Walk Behind 10 gallon Carpet Extractors - $2,316.00/ea • 2 Walk Behind 5 gallon Carpet Extractors - $2,573.15/ea • 1 Ride on Scrubber - $15,520.00 • 1 Nanocleaner - $10,793.00 • 1 Scrubber - $11,355.00

As part of the Master Plan, additional carpeting has been added throughout the campus. The existing cleaning equipment is over 11 years old and is past its useful life. The new equipment will allow custodial staff to operate efficiently with the newly carpeted areas. The budgeted amount is $50,000.00


The purchase is pursuant to the Illinois Compiled Statutes, 30 ILCS 525/ Governmental Joint Purchasing and the College’s Procurement Policy 712 and will be made under the National Joint Powers Alliance (NJPA) Contract #091214-WWG.

Agenda Item 8.2

November 21, 2017

Page 173



It is recommended that the Board of Trustees approve an award for the purchase of various carpet cleaning equipment from WW Grainger, Inc. of Lake Forest, IL in the amount of $41,941.63.


Agenda Item 8.2

November 21, 2017

Page 174


NON-BIDDABLE ITEM RFB #17035

Item Account Description 5 582000-03-03046-8060- 01 WOOD CHIPPER LEAD STAFF: Mike Welch, Facilities Director ____________________________ I. BIDS AMOUNT *1. Morbark, LLC $ 41,941.63 II. STATEMENT OF NEED

This is for the purchase of a Morbark wood chipper for the grounds department. On a yearly basis the grounds department has rented a chipper for fallen branches around the campuses. The purchase of a wood chipper will eliminate this annual rental and reduce mulching costs. With this addition, the grounds department will be able to produce mulch. The budgeted amount is $50,000.00.


This purchase is pursuant to the Illinois Compiled Statutes, 30 ILCS 525/ Governmental Joint Purchasing, the College’s Procurement Policy 712 and will be made under the National Joint Powers Alliance (NJPA) Contract #062117-MBI.


It is recommended that the Board of Trustees approve an award for the purchase of a Morbark wood chipper from Morbark, LLC of Winn, MI in the amount of $41,941.63.


Agenda Item 8.2

November 21, 2017

Page 175


NON-BIDDABLE ITEM

Item Account Description 6 534000-01-00720-1040-01 GE ANNUAL MAINTENANCE

AGREEMENT

LEAD STAFF: Maureen Robinson Dean of Biological & Health Services Division

_________________________ I. PROPOSALS AMOUNT *1. GE Healthcare $39,639.68 II. STATEMENT OF NEED

This is for annual maintenance and software for the GE Radiographic machine located in the radiology lab. The term is from December 2017 through November 2018. The amount budgeted is $39,639.68.


GE requires owners of GE Radiographic machines to license GE software and utilize GE Healthcare for maintenance and repairs of their equipment. If maintenance or repairs are made by anyone other than GE Healthcare, the overall warranty of the machine would be voided. Pursuant to 110 ILCS 805/3-27.1 (e) contracts for maintenance or service of, or provision of repair parts for, equipment which are made with the manufacturer, this purchase is exempt from the competitive bidding process.


It is recommended that the Board of Trustees ratify and approve the annual maintenance agreement with GE Healthcare of Wauwatosa, WI in the amount of $39,639.68.



Page 176

AGENDA ITEM NO. 8.3 – PURCHASING

DISPOSAL

According to Policy 915, Disposal, the Vice President for Administrative Affairs

shall report damaged, surplus or not needed property for College purposes to the Board of

Trustees 30 days prior to disposal. Pursuant to Policy 915, this process requires, upon

Board approval:

(1) Items are first advertised for public sale;

(2) Items not sold are then offered to in-district public school districts;

(3) Any unclaimed items may be made available to the general public to enhance

the College’s sustainability goals on a first come, first served basis; and

(4) Finally, items not claimed and are then put in the garbage for pickup.

Note: Administrative Affairs may dispose of hazardous materials or property in

advance of Board approval to ensure student and staff safety. This action will be ratified

at a subsequent board meeting.

The College has several items that have been determined to be obsolete (see

itemized list). The Administration will sell or dispose of these items on a date to be

determined.

It is therefore recommended that the Board of Trustees approve the disposal of

obsolete equipment as listed below.


Page 177

AGENDA ITEM NO. 8.3 – PURCHASING (Continued) ADULT EDUCATION Dell Printer (1) Computer Table (1) Lateral Left Desk (1) Lateral Right Desk (1) ATHLETICS & PHYSICAL ACTIVITIES Whitehall Hydrotherapy Pool (1) HORTICULTURE Southland Tiller (1) Husqvarna Tiller (1) ITS Multi-Position Metal Shelving (1) LIBRARY Record Albums (37) PUBLIC RELATIONS Menu Boards (2) Brother Fax Machine (1) Three Drawer Later File Cabinet (2) Two Drawer File Cabinet (3) STUDENT LIFE Radio Table (1) Desk Panels (4) FOR INFORMATIONAL PURPOSES ONLY For assets that were not repurposed, the Purchasing staff conducted ten (10) public auctions. As of November 2017, the College has recovered $46,063.57, up from $32,193.14 as reported at the June 2017 Board of Trustees meeting.


Page 178

AGENDA ITEM NO. 11.1 - HUMAN RESOURCES RECOMMENDATIONS

RESIGNATIONS

It is recommended that the Board of Trustees accept the resignation for the above

employees.

Name Position Number

Position/Department Effective Date

Nieto, Jorge 0079 Academic Operations Manager, Biological & Health Sciences Division

November 2, 2017

Easton, Marlaina 0470 Instructor, English, English

November 16, 2017


Page 179


POSITION ADDITIONS, RECLASSIFICATIONS, REORGANIZATIONS, DELETIONS, AND VACANT POSITIONS

RECLASSIFICATION – EDUCATIONAL AFFAIRS

Facilities Department

It is recommended the Facilities department reclassify to better align staff support

and responsibilities. The recommended location change, title, salary, and union status more

appropriately reflect the work done in this restructured position.

Pos. No.

Department/ Division

Position Title/ Type Add Delete Salary Level

1582 Custodial, SLC

Facility Manager (Southlake)

X Specialist Exempt DBM: C41 40 Hours/Week

1582 Maintenance, LSC

Maintenance Engineer (Lakeshore)

X Classified Nonexempt Salary: Collective Bargaining Agreement (Union Position) 40 Hours/Week

It is recommended that location change, title, salary, and union status be approved,

as described above, effective November 22, 2017.


Page 180

AGENDA ITEM NO. 11.2 - HUMAN RESOURCES RECOMMENDATIONS (Continued)

POSITION ADDITIONS, RECLASSIFICATIONS, REORGANIZATIONS,

DELETIONS, AND VACANT POSITIONS

RECLASSIFICATION – STUDENT DEVELOPMENT

Career and Job Placement Center

It is recommended the Career and Job Placement Center reclassify to better align

staff support and responsibilities. The recommended exemption status more appropriately

reflects the work done in this position.

Pos. No.



0123 Career and Job Placement Center

Career Services Specialist

X Specialist Nonexempt DBM: B32 Full-Time

0123 Career and Job Placement Center

Career Services Specialist

X Specialist Exempt DBM: B32 Full-Time

It is recommended the exemption status change be approved, as described above,

effective November 22, 2017.


Page 181




Children’s Learning Center

It is recommended the Children’s Learning Center reclassify to better align staff

support and responsibilities. The additional funding will be covered by the grant

partnership with United States Department of Education. The recommended changes more

appropriately reflect the work to be done in this restructured position.

Pos. No.



328 Children’s Learning Center

Lead Teacher

X Classified Nonexempt DBM: B21 Part-Time


Lead Teacher

X Classified Nonexempt DBM: B21 Part-Time


Lead Teacher II

X Classified Nonexempt DBM: B23 Full-Time

It is recommended that title and DBM change be approved, as described above,

effective November 22, 2017.


Page 182




Counseling Center

It is recommended the Counseling Center reclassify to better align staff support and

responsibilities. The additional funding will be covered by the reallocation of funds from

the Part-Time Flex seasonal salary budget. This position had already been eligible for paid

time off. The recommended changes more appropriately reflect the work done in this

restructured position.

Pos. No.



1329 Counseling Center

Office Assistant

X Classified Nonexempt DBM: A11 12 hours/week

1329 Counseling Center

Office Assistant

X Classified Nonexempt DBM: A11 25 hours/week

The following position change is recommended:

Pos. No.

Name Department Current Title/DBM/Salary

Recommended Title/DBM/Salary

1329 Reed, Pamela Counseling Center

Office Assistant Classified Nonexempt DBM: A11 12 Hours/Week Salary: $13.78/hour Annual: $8,602

Office Assistant Classified Nonexempt DBM: A11 25 hours/week Salary: $13.78/hour Annual: $17,920

It is recommended that hours increase be approved, as described above, effective

November 22, 2017.


Page 183




REORGANIZATION – EDUCATIONAL AFFAIRS

CLC Online

It is recommended the College support the consistent and significant growth in

online enrollment through the following actions: (1) the reorganization of an existing

position; and (2) a reallocation of two positions to create one new position. These actions

will create centralized accountability for the online student experience from enrollment

through completion and leverage a similar model found in how branch campuses function.

The recommended changes more appropriately reflect the resources needed to enhance the

online student experience and support closing the achievement gap in the online learning

environment. (See next page for details.)


Page 184




Pos. No.



0041 Southlake Campus

Dean

X Administrative Exempt DBM: D72 40 Hours/Week

0041 Southlake Campus and CLC Online

Dean

X Administrative Exempt DBM: D72 40 Hours/Week

0273 Libraries and Instructional Services

Senior Administrative Assistant

X Classified Nonexempt DBM: B23 40 Hours/Week

1255 Library Library Services Assistant

X Classified Nonexempt DBM: A13 24.75 Hours/Week

0273 CLC Online Director

X Administrative Exempt DBM: C51 40 Hours/Week

It is recommended that the proposed position additions, deletions, and

reorganization be approved as described above and, where appropriate, the search process

begin effective November 22, 2017.


Page 185




The following position title and salary change is recommended:

Pos. No.

Name Department Current Title/DBM/Salary

Recommended Title/DBM/Salary

0041 Cvitkovic, Vicky

Southlake Campus and CLC Online

Dean Administrator Exempt DBM: D72 Full-Time Annual: $125,842

Dean Administrator Exempt DBM: D72 Full-Time Annual: $133,400

It is recommended that the position title and salary change be approved, as described

above, effective November 22, 2017.


Page 186


FULL-TIME EMPLOYMENT – NEW

Administrative Staff:

Name Position/Department Salary Rate

Effective Date

Schmidt, Paul

Director, Financial Aid DBM: D61 Position Number: 0031 Exempt

$77,000 December 11, 2017

It is recommended that the Board of Trustees approve the above full-time

administrative personnel.


Page 187


FULL-TIME EMPLOYMENT – PROBATIONARY – NEW

Classified Staff:

The following individual has completed the 180-day probationary period in a Board

established position in accordance with Board Policy 502 (Employee Practices and

Procedures).


Effective Date

Lazaro , Lidia

Senior Office Assistant, Student Services, LSC DBM: A12 Position Number: 0248 Nonexempt

$11.75/Hour $24,441/ Annual

May 1, 2017

Specialist Staff:

The following individual has completed the 180-day probationary period in a Board

established position or a Board established grant funded position in accordance with Board

Policy 611 (Appointment and Status of Employment).


Effective Date

Janes, Jody

Manager, Welcome and One Stop Center DBM: C41 Position Number: 0065 Exempt

$54,000/ Annual

April 17, 2017

It is recommended that the Board of Trustees approve the above full-time

probationary personnel.


Page 188


PROMOTIONS AND TRANSFERS

Any promotion or transfer of an employee requires that the employee apply for a

vacant, Board approved position and successfully complete the search process. When

achieving the new position has no positive effect on salary, the change is labeled as a

transfer.

Name Present Position New Position Date Reason Hudson, Tamara

Retail Assistant, Bookstore Nonexempt, Classified Part-Time DBM: A12 $12.22/Hour Position Number: 1044

Office Assistant, Lakeshore Campus Nonexempt, Classified Part-Time DBM: A11 $11.49/Hour Position Number: 1218

November 27, 2017

Transfer

Mireles, Miguel

Student Success Manager, Adult Education Testing Exempt, Specialist DBM: C41 $56,650/Annual Position Number: 0074

Career Programs Coordinator, Engineering, Mathematics and Physical Sciences Division Exempt, Specialist DBM: B32 $53,000/Annual Position Number: 1469

December 4, 2017

Transfer

It is recommended that the Board of Trustees approve the above Transfers.


Page 189


EMPLOYMENT CONTRACTS ─ FY2018 FULL-TIME FACULTY PERSONNEL

Per Section 2, Article 13 of the 2014 – 2018 Collective Bargaining Agreement

(“CBA”) between the Board of Trustees of the College of Lake County and the College

of Lake County Federation of Teachers, Local No. 2394, AFT, the following full-time

instructional and non-instructional faculty contracts have been revised reflecting band

movement, retroactive to August 14, 2017, for the 2017/2018 academic year. These

contracts are regular full-time load, exclusive of overload, following current Full-Time

Faculty Collective Bargaining Agreement guidelines. The contracts have been made

public with the public posting of the board meeting agenda.

Faculty:

Last First

Name Position Title Contract Effective

Dates Contract Amount

Buckner Mary Instructor, Nursing

August 14, 2017 – May 12, 2018 $97,147

Cash Amanda Instructor,

English August 14, 2017 –

May 12, 2018 $83,920

Jacobs Mary Instructor,

Dental Hygiene August 14, 2017 –

May 12, 2018 $102,785

It is recommended that the Board of Trustees approve the above 2017/2018 full-

time faculty contracts and compensation, revised due to band movement per the Faculty

Collective Bargaining Agreement per Section 2, Article 13, retroactive to August 14,

2017.

^ Career development increase reflected in salary.


Page 190


EMPLOYMENT CONTRACTS ─ FY2018 FULL-TIME ADMINISTRATIVE AND SPECIALIST PERSONNEL

Per policy 211, administrative employees are issued an employment contract. The

following is a FY2018 compensation and contracts for full-time administrative staff. The

contracts have been made public with the public posting of the board meeting agenda.

Administrative:

Last Name

First Name

Position Title/ Department

Contract Effective

Dates

Contract Amount

Board Report Agenda

Item Cvitkovic Vicky Dean, Southlake

and Online Campuses

11/22/2017 - 6/30/2018

$133,400/ Annualized $5,130.77/ Bi-Weekly

Exempt

11.2

Schmidt Paul Director, Financial Aid

12/11/2017 - 6/30/2018

$77,000/ Annualized $2,961.54/ Bi-Weekly

Exempt

11.3

It is recommended that the Board of Trustees approve the full-time administrative

personnel compensation and contracts, as indicated above.


Page 191


EMPLOYMENT CONTRACTS ─ FY2018 FULL-TIME ADMINISTRATIVE AND SPECIALIST PERSONNEL

Per policy 611, non-probationary specialist employees are issued an employment

contract. The following are FY2018 compensation and contracts for full-time specialist

staff. The contracts have been made public with the public posting of the Board meeting

agenda.

Specialist:

Last Name

First Name

Position Title/ Department

Contract Effective

Dates

Contract Amount

Board Report Agenda

Item Janes Jody Manager,

Welcome and One Stop Center

4/17/2017 - 6/30/2018

$54,000/ Annualized $2,076.92/ Bi-weekly

Exempt

11.3

Mireles

Miguel Career Programs Coordinator Engineering, Mathematics and Physical Sciences Division

11/22/2017 - 6/30/2018

$53,000/ Annualized $2,038.46/ Bi-weekly

Exempt

11.4

It is recommended that the Board of Trustees approve the full-time specialist

personnel compensation and contracts, as indicated above.


Page 192

november 2017 report to the board of...

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