Agreements

Section 500 Section 500.90  Agreements a)         Agreement between the State and the Applicant – Form.  Upon certification, and the Department sale of State of Illinois Civic Center Bonds, if such bonds are required to fund the project, an Agreement must be signed by 1)         the Director on behalf of the State, and 2)         by the Applicant's officer(s) on behalf of the Applicant, whose signature shall be appropriately witnessed, dated, and accompanied by a certified copy of the resolution of the governing board of the Applicant authorizing the execution of the Agreement. b)         Agreement between the State and the Applicant – Substantive.  The Agreement shall contain certain substantive provisions including, but not limited to the following: 1)         A recitation of legal authority pursuant to which the Agreement is made; 2)         The identification of the Base Sum; 3)         The conditions essential to payment of State financial support subject to appropriations, and the irrevocable payment of the Local Share; 4)         The amount of financial support provided by the State and the local share provided by the Applicant pursuant to the Agreement; 5)         Covenants of the Applicant to the State, which may include, but are not limited to the following including: A)        exercise of diligence in performing its legal duties; B)        compliance with all Federal, State and local laws in executing its responsibilities; C)        application of the State financial support for Total Project Costs only; D)        engagement of professional and other qualified personnel for the purpose of supervising and performing the duties of the Applicant; E)        employment of construction management  whose duties shall include the supervision of construction of the Project; F)         construction, operation, maintenance and preparation of all Project facilities prudently, including the development and adoption of procedures containing such controls, techniques, standards and guidelines for Project design and implementation, construction progress and the monitoring thereof, and operation of the Project as the Authority may determine; G)        operate, or cause the Project facilities to be operated through Intergovernmental or Management Agreement approved by the Department, prudently and in a sound and economic manner, and maintain, preserve, and keep the same or cause the same to be maintained, preserved and kept, with the appurtenances and every part and parcel thereof, in good repair, working condition, and from time to time make or cause to be made, all necessary and proper repairs, replacements and renewals so that at all times the operation of the Project may be properly and advantageously conducted; H)        commitment to secure funds for the payment of operating deficits, if any, from sources authorized by Resolution, Ordinance, Intergovernmental Agreement or from private sources; I)         maintenance of insurance with insurers, authorized to do business in the State, to cover the loss of or damage to the entire Project and against public and other liabilities and such other insurance with responsible insurers as is appropriate with such variations as shall reasonably be required to conform to customary insurance practices and necessary to protect the interest of the Applicant and the State.  During construction of the project, shall maintain such builder's risk insurance as is customarily carried by owners of buildings with respect to such facilities while under construction, but shall not be required to maintain such insurance to the extent that such insurance is carried for the Authority's benefit by others.  Shall also maintain during construction coverage as is normally carried by corporations to meet liability under "AN ACT providing for the protection and safety of persons in and about the construction, repairing, alteration, or removal of buildings, bridges, viaducts, and other structures, and to provide for the enforcement thereof"  (Ill. Rev. Stat. 1987, ch. 48, pars. 60 et seq.); J)         abiding by its duties and enforcement of its rights under an intergovernmental cooperation agreement, if the Applicant has entered into an intergovernmental cooperation agreement with another unit of local government, with regard to the Project; K)        agrees that upon completion of the design development phase, the Authority will furnish the Department with a copy of the proposed plans, as submitted by the architect, not less than ten (10) business days prior to approval by the Authority; L)        provide a reconciliation of the monies and revenues available to the Authority, along with a comprehensive Project Construction Budget and the Annual Authority Budget, in such detail, and with such account classifications as determined by generally accepted accounting principles upon the determination of the final costs estimate, and prior to advertising for any bids for a major component facility (as determined by the architect) of the Project, for the Department's approval; M)       prior to commencement of construction of each of the major component facilities of the Project, provide a summary of bid awards along with a trade payment breakdown consistent with such bid awards; N)        building the Project in conformity with the Master Building Plan on file with the Department, and obtaining the consent of the Department prior to authorizing any amendment to the Master Building Plan; O)        proceed to implement and complete the Project within the timetable set forth in the Project application, and expend or obligate all project funds no later than two years from the date of the agreement as required under the Illinois Grant Funds Recovery Act (Ill. Rev. Stat. 1987, ch. 127, pars. 2301 et seq., as amended by Public Act 85-1214, effective August 30, 1988); P)         agrees to promptly notify the Department upon the occurrence of any events or circumstances (e.g., work stoppages, weather, delays in receiving materials) which may create substantial delays in complying with the timetable set forth in the application, and in such cases shall take due account of recommendations made by the Department to remedy such delays; Q)        providing the Department with copies of all agreements and contracts which the Authority may enter into for the construction, maintenance and operation of the Project and notify the Department of any defaults under any construction contracts let by the Authority; R)        agrees to pay, cause to be discharged or make provision to satisfy and discharge within sixty (60) days after the same shall accrue all lawful claims and demands for labor, materials, supplies or other objects which, if unpaid, might by law become a lien upon the Project or any part therefrom, provided, however, that nothing contained in the Agreement shall require the Authority to pay or cause to be discharged, or make provision for any such lien or charge, so long as the validity thereof shall be contested in good faith and by legal proceedings; S)         requiring, to the extent feasible, that each supplier, developer, prime contractor and subcontractor, which is engaged in the construction or operation of the Project, shall provide opportunities to: i)          minority individuals, women, and lower income persons for training and employment arising in connection with the planning and furnishing of its services and materials; and ii)         business concerns which are owned in substantial part by minority persons and/or women, including where applicable those individuals or firms located in and owned in substantial part by persons residing and doing business in the area of the Project development; T)         providing the Department with copies of all change orders and periodic construction reports from the construction manager for the Project; U)        providing the Department with Closing Docket(s) for all bonds, if any, issued by a unit of local government for the project; V)        providing the Department with copies of the minutes of each meeting of the Authority; W)       providing the Department quarterly account reports during construction and with an audited copy of the Final Construction Cost Report and Final Acceptance Certificate; X)        assurance of sufficient property interest in land or air rights on which construction or reconstruction of the Project will occur; Y)        provision that, if Total Project Costs on completion of the Project are less than the estimated Total Project Cost as indicated in the Application, that portion of State financial support which is in excess of 75% of Revised Total Project Costs shall be returned to the State; Z)        returning all State funds advanced to the Authority, including interest earned thereon, should construction not begin within one year of the agreement; AA)     covenants that no portion of the State financial support provided hereunder will be used, directly or indirectly, in any trade or business carried on by any person other than a governmental unit; BB)     submit to the Department, the annual operating budget and annual audit of the Authority as required by the Act; CC)     agree to pay all taxes and assessments or other municipal or government charges, if any, lawfully levied or assessed upon or in respect of the Project or upon any part thereof when the same shall become due and shall duly observe and comply with all valid requirements of any municipal or governmental authority relative to any part of the project; and DD)     covenants that the Authority shall not create or suffer to be created any lien or charge upon the Project or any part thereof or upon the revenues therefrom; 6)         Covenants of the State to the Applicant that the Department agrees to include in its appropriation request an amount necessary to make payments of State financial support to the Applicant; 7)         The Interest Income from the investment of State financial support is the property of the State pursuant to the Illinois Grant Funds Recovery Act. Final payment to the Authority when added to interest earned on previous payment(s) plus the payment(s) shall equal the base sum; 8)         The State shall have the remedy of enforcing the terms of this Agreement including obtaining a specific performance if it is breached by the Applicant; 9)         None of the rights, duties or obligations of the Applicant can be assigned or transferred without the express written consent of the State; 10)         The Agreement when executed by the State and the Applicant shall be complete on its face and any modification of the terms or conditions of the Agreement shall be allowed only by the written and signed consent of both parties. c)         Agreement between the State and Applicant – Audit Report and Operating Plan.  The Authority agrees to file with the Department an annual audit report and operating plan on the Authority's operation in accordance with Section 6 of the Act.