ORDINANCE NO. MC-6-2014

AN ORDINANCE

AMENDING TITLE 15 OF THE WINNETKA VILLAGE CODE REGARDING REIMBURSEMENT OF PROFESSIONAL FEES AND COSTS INCURRED BY THE VILLAGE DURING REVIEW OF APPLICATIONS FOR VILLAGE ACTION

WHEREAS,  the Village of Winnetka is a home rule municipality in accordance with Article VII, Section 6 of the Constitution of the State of Illinois of 1970 and has the authority to exercise any power and perform any function pertaining to its government and affairs; and

WHEREAS, Title 15 of the Winnetka Village Code, as amended ("Village Code"), titled "Buildings and Construction," sets forth certain regulations governing the issuance of permits and other approvals necessary for real estate development and construction within the Village ("Development Approvals"); and

WHEREAS,  Section 15.32.02 of the Village Code provides, among other things, that: (i) the Village Council shall establish, by resolution, all fees, costs, deposits, and bonding requirements for obtaining Development Approvals (collectively, "Development Fees and Costs"); and (ii) the owner of property seeking Development Approvals is responsible for the payment of all Development Fees and Costs, including the costs incurred by the Village for professional services retained by the Village in connection with the Village's review of the owner's application for Development Approvals; and

WHEREAS,  the Village desires to update and clarify the process for receiving reimbursement of Development Fees and Costs and other costs incurred by the Village for professional services retained by the Village in connection with the Village's review of applications for Village action or decision on any matter ("Reimbursement Regulations"); and

WHEREAS,  the Village Council has determined that amending Title 15 of the Village Code to add a new Chapter 15.74 adopting Reimbursement Regulations as set forth in this Ordinance is in the best interests of the Village;

NOW, THEREFORE,  be it ordained by the President and Board of Trustees of the Village of Winnetka as follows:

SECTION 1: The foregoing recitals are hereby incorporated as the findings of the Council of the Village of Winnetka, as if fully set forth in this Section.

SECTION 2: Title 15, titled "Buildings and Construction," of the Village Code is hereby amended by adding a new Chapter 15.74, titled "Third Party Fees and Escrow of Funds," which new Chapter 15.74 will read as follows:

Chapter 15.74
THIRD PARTY FEES AND ESCROW OF FUNDS

Section 15.74.010 Purpose.

The general purposes of this chapter are to require persons or other legal entities who apply to or petition the Village for consideration or review of, or action on, any matter requiring Village approval to: (a) reimburse the Village, as required by this Code, for certain professional fees incurred by the Village as a result of the application or petition, and (b) deposit the funds necessary to reimburse the Village before the Village incurs any professional fees as a result of the application or petition. This Chapter specifically applies to Village Attorney fees when specifically invoiced for services beyond the ordinary course of business.

Section 15.74.020 Responsibility for professional fees.

Any person or other legal entity who applies to or petitions the Village for consideration or review of, or action on, any matter requiring Village approval shall be responsible for any services provided by any independent professional, when such services are required by the Village Code, , the Village Manager (or the Manager’s designee), or the Village Council, as part of the Village’s review of, and any action in response to, the application or petition.

Section 15.74.030 Amount of fees.

The Village Council shall establish by resolution the rates at which professional fees shall be reimbursed to the Village pursuant to this chapter.

Section 15.74.040  Estimate of costs and establishment of escrow.

A.   Upon receipt of any application or petition for Village consideration, review, or action, including approvals required under the Winnetka Zoning Ordinance, that will require the Village to obtain professional services, the Village Manager, or the Manager's designee, shall estimate the cost of the professional services based upon the nature and complexity of the required services by the Village Code, the rates established by the Village Council for reimbursement of professional fees, and any other factors that may be relevant to estimating the cost of the required professional services. The Village Manager or designee shall send written notice to the applicant or petitioner of the estimated cost of professional services required by the Village Code and shall require the applicant or petitioner to: (1) execute an escrow agreement in a form to be provided by the Village Manager, and (ii) deposit the estimated amount with the Village within 14 days of receipt of the notice. The Village will not be required to take any official action on the application or petition before the applicant or petitioner executes and delivers the escrow agreement and makes the required escrow deposit. The escrow agreement will include provisions for the deposit, withdrawals, and closing of the escrow consistent with the provisions of this Subsection and Subsections 15.74.050 and 15.74.060 of this Chapter.

B.   Upon receipt of the executed escrow agreement and the amount equal to the estimated cost of the required professional services, the Village Manager, or the Manager's designee, shall deposit this amount into a separate escrow account established to defray the cost of professional fees incurred by the Village during its review of, and any action in response to, the application or petition. No interest shall be payable on any funds deposited in the escrow account.

Section 15.74.050  Withdrawals from escrow.

A.   The Village Manager, or the Manager's designee, shall require the professionals the Village engages in connection with the review of, and any action in response to, any application or petition to keep reasonably detailed records of their services performed and to invoice the Village no less frequently than monthly.

B.   The Village shall draw on the funds deposited in the escrow account to pay, at the rates established by the Village Council, the invoices for professional services, as required by the Village Code, rendered in connection with the review of, and any action in response to, the application or petition. The Village Manager shall approve all draws from the escrow account, keep a written record of the draws, and send a written record of all draws to the applicant.

C.   The Village Manager, or the Manager's designee, shall monitor the balance of funds on deposit in the escrow account to assure that sufficient funds are available to defray the cost of all professional services performed in connection with the review of, and any action in response to, the application or petition. If, at any time, the Village Manager determines that sufficient funds are not available, the Village Manager shall estimate the cost of the foreseeable remaining required professional services and send written notice to the applicant or petitioner requiring an additional amount to be deposited in the escrow account within 14 days after receipt of the notice, all in accordance with  the escrow agreement and  the  process  set forth  in  Section

2.76.040. The Village Manager may instruct the professionals engaged in connection with the review of, and any action in response to, the application or petition to cease performing further services until the additional amount requested has been deposited into the escrow account.

Section 15.74.060 Closing of escrow.

A.   After all professional services required for the review of, and any action in response to, the application or request have been completed, the Village Manager shall perform a final accounting of the deposits made into the escrow account and the actual cost of the professional fees incurred. The Village Manager shall promptly provide a written copy of this accounting to the applicant or petitioner.

B.   If the amount deposited in the escrow account is insufficient to pay for the actual professional fees incurred by the Village for the review of, and any action in response to, the application or petition, the Village Manager shall provide the applicant or petitioner with written notice and require payment of the balance due.

C.   If, after the payment of all actual professional fees incurred for the review of, and any action in response to, the application or petition, the Village Manager shall promptly return any remaining balance to the applicant or petitioner. If the Village Manager is unable to return the balance held in the escrow account to the applicant or petitioner 30 days after sending written notice of any balance to the applicant or petitioner, the Village Manager shall be entitled to charge the applicant or petitioner an administrative fee of $50.00 per month, and to draw upon the escrow account for the payment of the fee, until the applicant or petitioner recovers the balance or the balance is exhausted. If the applicant or petitioner does not recover the remaining balance held in the escrow account two years after the Village Manager sent the applicant or  petitioner written notice, the Village Manager will be entitled to transfer the balance from the escrow account to the Village general fund."

SECTION 3: This Ordinance is passed by the Council of the Village of Winnetka in the exercise of its home rule powers pursuant to Section 6 of Article VII of the Illinois Constitution of 1970.

SECTION 4: This Ordinance shall take effect immediately upon its passage, approval, and posting as provided by law.

PASSED  this 2 nd day of September, 2014, pursuant to the following roll call vote:
AYES:   Trustees Fessler, Kates, Krucks, McCrary, Prodromos   
 NAYS:   None           ABSENT: Trustee Braun      

APPROVED this 2nd day of September, 2014.

   Signed:

   s/ E. Gene Greable   

   Village President

Countersigned:

s/ Robert M. Bahan

Village Clerk

Published by authority of the President and Board of Trustees of the Village of Winnetka, Illinois, this 2nd day of September, 2014.

Introduced: August 5, 2014

Passed and Approved: September 2, 2014