STATE OF ILLINOIS IN THE CIRCUIT COURT OF THE TWENTY-FIRST JUDICIAL KANKAKEE COUNTY, ILLINOIS RIVER VALLEY METRO MASS TRANSIT DISTRICT, a municipal corporation, Plaintiff, Case No. |. WIR Valo SUSANA A. MENDOZA, as yl ) ) ) ) ) v. ) } ‘Comptroller for the State of Illinois, ) ) ) Defendant. VERIFIED COMPLAINT DECLARATORY RELIEF AND WRIT OF MANDAMUS NOW COMES the Plaintiff, RIVER VALLEY METRO MASS TRANSIT DISTRICT, by and through its attomey, LOUIS F. CAINKAR, LTD., and for its complaint against SUSANA A. MENDOZA, as Comptroller of the State of Illinois, states the following: 1. RIVER VALLEY METRO MASS TRANSIT DISTRICT (the District) is an Illinois local mass transit district organized and existing under the Local Mass Transit District Act (the LMTDA), 70 ILCS 3610/1, ef seg., with its principal office located at 1137 East 5000 North Road, Bourbonnais, Kankakec County, Illinois. 2. SUSANA A. MENDOZA (the Compiroller) is the Comptroller for the State of Ilinois (the Stare). 3, The Comptroller is the chief fiscal control officer of the State having a duty to: (a) ‘maintain the State's central fiscal accounts; (b) order all payments into and out of the funds held by the Treasurer of the State (the Treasurer); (c) cause to be signed all warrants for money on the ‘treasury of the State or on other funds held by the Treasurer; (d) draw warrants from the treasury ‘or on such other funds as may be appropriate for sums due; and (e) perform such other acts as required by law, (15 ILCS 405/2; 15 ILCS 405/10.01; 15 ILCS 405/10.03).4. The Illinois Downstate Transportation Act (30 ILCS 740/1-1, et seq.) (the IDTA) provides for the creation and capitalization of the Downstate Transportation Fund, fom which Illinois Downstate Operational Assistance Program (DOAP) grants are to be made to assist units of local government (hereinafter participants) by mitigating operational deficits incurred while providing “public transportation” services within urbanized and nonurbanized areas. 30 ILCS 740/1-2.. 5. The District cannot provide “public transportation” services in accordance with State mandates without DOAP grants because it has no general authority to levy taxes to fund operational expenses; similarly, State mandates imposed on local mass transit districts, such as the District, require them to offer services to certain persons without charge or at discounted rates. 6. The Illinois Department of Transportation (JDO) is an administrative agency of the State responsible for administering the IDA, and ensuring compliance therewith by the District and other participants. 7. Any city, village, or incorporated town, a county, or a local mass transit district, serving and providing public transportation services in an urbanized or nonurbanized area is eligible to receive DOAP grants as a participant under the IDTA. (30 ILCS 740/2-2.02). 8. The District is a participant under the IDTA providing public transportation service within the County of Kankakee, which is an urbanized area. 9. The District has received DOAP grants under the IDTA for over 15 years. 10. A participant secking financial assistance under the IDTA is required to file with TDOT a grant application for the then upcoming July 1 - June 30 fiscal year, which includes, amongst other things: (a) an estimate of projected operating deficits and a separate statement of cligible operating expenses and an estimate of all projected operating income or revenues; and (b) a program of proposed expenditures directly related to the operation, maintenance or improvement of an existing system of public transportation serving the residents of theparticipants, and shall include the proposed expenditures for eligible operating expenses. (30 ILCS 740/2-5). 11. On March 22, 2016, the District filed with IDOT a timely and complete FY 2017 DOAP grant application pursuant to and in accordance with the provision of § 2-5 of the IDTA GO ILCS 740/2-5). 12, TDOT is required to review, and approve or disapprove, a participant's DOAP grant application within 45 days after itis filed. (30 ILCS 740/2-11). 13, A participant’s DOAP grant application must be approved by IDOT unless: (a) the expenditures are proposed for projects or purposes which are not in compliance with § 2-5 of the IDTA; or (b) the expenditures are proposed for projects or purposes which are in conflict with established comprehensive transportation plans for a participant or a region of which it is part. (30 ILCS 740/2-11). 14, If grounds exist for the disapproval of a DOAP grant application, IDOT must ‘communicate such disapproval to the chief official of the participant, and that communication must detail IDOT’s reasoning for the adverse decision, within the 45 day review and decision period, (30 ILCS 740/2-11; 30 ILCS 740/212). 15, On August 23, 2016, there being no basis to deny the District FY 2017 DOAP ‘grant application pursuant to the provision of §2-11 of the IDTA (30 ILCS 740/2-11), John J. Marella, Bureau Chief of Transit Operations for IDOT, issued a letter (the FY 2017 Grant Approval Letter) to the District approving the District’s FY 2017 grant application 16. After the earlier of IDOT’s approval or the expiration of the 45-day review and decision period, but no later than the first day of the applicable fiscal year, IDOT is required to enter into a DOAP grant agreement with each participant and make DOAP grants to the same to implement the participant’s DOAP program. (30 ILCS 7402-14). 17. Enclosed with the District's FY 2017 Grant Approval Letter was a copy of the IDOT prepared DistrietIDOT FY 2017 grant agreement (the FY 2017 Grant Agreement) in the FY 2017 appropriation amount of $6,131,000.18. On October 3, 2016, the District returned an approved and executed copy of the FY 2017 Grant Agreement to IDOT. 19. The District’s FY 2017 Grant Agreement was executed by IDOT, and the same is in fall force and effect. 20. After the earlier of IDOT’s approval or the expiration of the 45-day review and decision period for DOAP grant approval, but no later than the first day of the relevant fiscal year, IDOT must certify to the Illinois Department of Revenue (the DR) the name and territorial boundary of each DOAP participant. (30 ILCS 740/2-3). 21. IDOT has certified the District’s name and territorial boundary to IDR, which have not changed since the preceding fiscal year. 22. Upon certification by IDOT, but no later than the first day of the fiscal year, and fas soon as possible after the first of each month thereafter, the IDR must certify to the Comptroller the amount of each eligible participant’s portion of Funding Revenues. (30 ILCS 740/23). 23. Funding Revenues constitute monies in the General Revenue Fund in amounts ‘equaling 3/32 of 80% of collected Retailers Occupation Tax Act, Service Occupation Tax Act, Use Tax Act, and Service Use Tax Act revenues collected within the territorial boundaries of a DOAP participant, (30 ILCS 740/2-3(a)). 24, Funding Revenues transferred to the Downstate Transportation Fund are deemed continually and irrevocably appropriated each fiscal year for grant payments to participants in a collective amount equal to the sum of each individual appropriation calculated in accordance with the provisions of §2-7 of the IDTA (30 ILCS 740/2-7). (30 ILCS 740/2-3(@)). 25. Upon certification by IDR, but no later than the first day of the fiscal year, and as soon as possible after the first of each month thereafter, the Comptroller must order transferred, ‘and the Treasurer is required to transfer, an amount equal to each DOAP participant's FundingRevenues from the State of IMlinois’ General Revenue Fund to the Downstate Transportation Fund, (30 ILCS 740/2-3). 26. No later than 30 days before the end of each quarter of the fiscal year, a DOAP participant is required to file with IDOT, on forms provided by IDOT for such purposes, a report of its projected cligible operating expenses to be incurred in the next quarter and 30 days before the third and fourth quarter of any fiscal year, a statement of actual eligible operating expenses incurred in the preceding quarters. (30 ILCS 740/2-7(b)). 27. The IDTA requires IDOT to deliver a certified voucher to the Comptroller for payment of a DOAP participant’s grant in accordance with its quarterly report at such time that will permit, no later than 45 days after IDOT’s receipt of a quarterly report, the Comptroller to order paid, and the Treasurer to pay from the Downstate Public Transportation Fund, an amount equal to 65% of the DOAP participant’s projection of eligible operating expenses, except that such payment for the third and fourth quarters shall be adjusted to reflect actual eligible operating expenses for preceding quarters of such fiscal year. (30 ILCS 740/2-7(b)) 28 Upon satisfaction of every DOAP grant, residual Funding Revenues in the Downstate Public Transportation Fund are prohibited from being swept to another fund or used for non-transportation related purposes. (30 ILCS 740/2-15). 29. Residual Funding Revenues are to be transferred to the Downstate Transit Improvement Fund and appropriated to the Illinois Department of Transportation (ZDOT) to make competitive capital grants to the downstate participants, excepting that portion that IDOT deems necessary for audit purposes and all 1* quarter payments for the succeeding fiscal year’s DOAP grant program. 30. The District, as a downstate participant, has competitive capital grant contracts with IDOT in effect for FY 2017, and approximately $1,302,750 thereof are payable from residual Funding Revenues transferred to the Downstate Transit Improvement Fund. 31. This District will be a downstate participant in the FY 2018 DOAP program. | | | |32. On July 6, 2016, the District submitted to IDOT a quarterly report (the J" Quarter Report), on forms provided by IDOT containing its projected eligible operating expenses for the first quarter of FY 2017 in the amount of $1,790,375.00, of which $1,163,743.75 was payable to the District in accordance with §2-7 of the IDTA (30 ILCS 740/2-700). 33. On September 27, 2016, the District submitted to IDOT a quarterly report (the 2" Quarter Report), on forms provided by IDOT containing projected eligible operating expenses to be incurred for the second quarter of FY 2017 in the amount of $1,809,697.00, of which $1,176,303.05 was payable to the District in accordance with §2-7 of the IDTA (30 ILCS 740/2- 10)). 34. On October 25, 2016, IDOT delivered certified vouchers to the Comptroller for payment of the District’s DOAP grant in accordance with, and in the amounts specified in, the District’s FY 2017 1* and 2™ Quarter Reports. 35. The Comptroller refused to order the timely payment of IDOT’s vouchers corresponding to the District FY 2017 1* and 2" Quarter Reports because there was not enough money in the Downstate Transportation Fund. 36. At that time, the most recent transfer from the State of Illinois General Revenue Fund to the Downstate Transportation Fund was the June of 2016 transfer, corresponding to the Funding Revenues certified by the IDR in January of 2016. 37. At that time, the Comptroller had failed to make timely transfers of, and was then refusing to transfer, to the Downstate Transportation Fund not less than $156,442,887.37 in Funding Revenues (representing IDR certifications from February of 2016-October of 2016) being held in the State of Illinois General Revenue Fund. 38. On November 28, 2016, only days before the trial in the of action entitled River Valley Metro Mass Transit District v. Leslie Geissler Munger, Case No. 16 MR 666, the Comptroller ordered the Treasurer (a) to transfer $17,583,014.97 in Funding Revenues (representing the IDR certified amount from February of 2016) from the State of Illinois GeneralRevenue Fund to the Downstate Transportation Fund, and (b) to pay the IDOT certified vouchers corresponding to the District's 1 and 2 Quarter Reports. 39. In December of 2016, the Comptroller transferred $19,689,785.90 in Funding Revenues (representing the IDR certified amount from March of 2016) from the State of Illinois General Revenue Fund to the Downstate Transportation Fund. 40. In January of 2017, the Comptroller transferred $29,793,739.29 in Funding Revenues (representing the IDR certified amount from April and May of 2016) from the State of Illinois General Revenue Fund to the Downstate Transportation Fund. 41. Upon information and belief, the FY 2017 1% Quarter DOAP vouchers of all participants have been paid, but only the nonurbanized participants’ FY 2017 2"4 Quarter DOAP vouchers have been paid (excepting the District’s paid in December of 2016). 42. The total DOAP appropriation for FY 2017 is $310,737,000. 43. As of February 20, 2017, there is only $600,766.53 in Funding Revenues in the Downstate Transportation Fund. 44. As of February 20, 2017, the IDR has certified to the Comptroller the following amounts of Funding Revenues on the dates hereinafter stated to be transferred to the Downstate Transportation Fund, which the Comptroller has not transferred: (a) June 6, 2016 - $17,660,815.39 () July 6, 2016 . $17,067,936.11 (© August 4, 2016 - $17,834,088.66 @ September 6, 2016 - $18,821,143.65 (© October 6, 2016 - $17,553,073.67 (®) November 3, 2016 - $17,794,140.93 (g) December 6, 2016 . $17,544,850.12 (b) January 9, 2017 - $17,479,822.38 (i) February 3, 2017 : $16,964,050.31T 1 = DECLARAT( ELIEF 45. The District re-alleges and incorporates the allegations of paragraphs 1 through 44 of this Complaint as paragraphs 1 through 44 of Count I 46. On November 22, 2016, the District submitted to IDOT a quarterly report (the 3° Quarter Report), on forms provided by IDOT containing project eligible operating expenses to be incurred for the third quarter of FY 2017 in the amount of $1,865,635.00, of which $1,270,681.76 was payable to the District in accordance with §2-7 of the IDTA (30 ILCS 740/2- 7). 47, IDOT has delivered a certified voucher to the Comptroller for payment of the District’s DOAP grant in accordance with, and in the amount specified in, the District’s FY 2017 3" Quarter Report. 48. The Comptroller is refusing to make timely DOAP grant payments to its participants, including the District, because there is not enough money within the Downstate Transportation Fund to satisfy them. 49. However, IDR has certified to the Comptroller not less than $159,250,209.67 in Funding Revenues (representing the IDR certifications from June of 2016-February of 2017) as being collected and maintained in the State of Illinois General Revenue Fund for transfer to the Downstate Transportation Fund. 50. There exists over $170,000,000 in the State of Illinois’ General Revenue Fund, $159,250,209.67 of which constitutes Funding Revenues, which is earmarked and appropriated for DOAP grant payments. 51. ‘The Comptroller has refused to order transferred, and the Treasurer has therefore not transferred, the Funding Revenues referenced above from the State of Illinois’ General Revenue Fund to the Downstate Transportation Fund, 52, The Comptroller is not ordering, and has practice of not ordering, the timely transfer of Funding Revenues to the Downstate Transportation Fund in order to illegallyrepurpose those Funding Revenues in a manner not authorized by the IDTA and in violation of the appropriation of the General Assembly of the State of Illinois. 53. The Comptroller has refused to order paid, and the Treasurer has therefore not paid, from the Downstate Public Transportation Fund an amount equal to 65% of the District’s eligible operating expenses, or $1,270,681.76, pursuant to the IDOT certified voucher corresponding to the District’s FY 2017 3" Quarter Report. 54, The Comptroller, and others subordinate to her, but pursuant to her direction and control, are precluding IDOT, the IDR, the Office of the Comptroller, and the Treasurer, and other agencies and officers reliant on them, from fulfilling their duties under the IDTA with respect to the District and other participants. 55, The Distriet has an interest and is entitled to the timely transfer of Funding Revenues in amounts certified by the IDR and DOAP grant monies funded with Funding Revenues and appropriated for its benefit and use under and pursuant to the IDTA now and in the future, 56, The District’s ability to provide public transportation services in and around the County of Kankakee, in accordance with State of Ilinois policies and programs, is contingent upon its receipt of DOAP grant monies, which for over the past 15 years, have mitigated operational deficits resulting from the provision of public transportation services in accordance with State transportation mandates. 57. To the extent that no grant monies are received, less grant monies are received than are projected and budgeted by the District, or grant monies are received in an untimely fashion, the District will be unable to fulfill operating obligations and liabilities, including but not limited to the payment of wages, causing it to default on contractual obligations and resulting, in the reduction or stoppage of public transportation services in and around the County of Kankakee, State of Illinois. 58, The District is currently operating at a reduced capacity in anticipation that the Comptroller would refuse to order the timely transfer of Funding Revenues and the timely payment of DOAP grants in accordance with her obligations under the IDTA. | | |59, Nevertheless, the District will be forced to suspend public transportation services in and around the County of Kankakee by April 30, 2017 if it does not receive its FY 2017 3% Quarter DOAP grant allotment prior to that date. 60. No provision of the IDTA or any other law authorizes the Comptroller to withhold, redirect, repurpose or refuse to timely transfer Funding Revenues certified by IDR from the State of Illinois General Fund to the Downstate Transportation Fund. 61. No provision of the IDTA or any other law authorizes the Comptroller to refuse to timely order the Treasurer to disburse DOAP grant payments to participants upon receipt of certified vouchers from IDOT. 62, The Comptroller's arbitrary and capricious repurposing of Funding Revenues, refusal to transfer Funding Revenues to the Downstate Transportation Fund in a timely fashion, and her refusal to timely deliver warrants to the Treasurer for payment to the District in amounts that correspond to vouchers received by IDOT, are unlawful and unauthorized under the IDTA. 63, ‘The Comptroller’s unlawful and unauthorized decisions have and will result in the halting of public transportation services in Kankekee County and the State of Ilinois in general, underfunding of capital grants, as well as the perpetual underfunding of the DOAP program. 64, Assuming the Comptroller is not directed to transfer the full amount of Funding Revenues certified by the IDR which remains in arrears, neither the District nor any other participants will receive their full DOAP grant allotments within FY 2017 (if ever), capital grants payable from residual Funding Revenues, and there will be no funding to subsidize the FY 2018 1* Quarter DOAP allotments. 65, The District has done all it is required to do under law, substantively and procedurally, and it is entitled, to receive in a timely manner its full allotment of DOAP grant monies for the 3" Quarter of FY 2017. 66. The Comptroller is adverse to the District's interest, doing everything in her control to preclude IDOT, the IDR, the Office of the Comptroller, the Treasurer, and other 10departments, agencies and officials, from performing their duties under the IDTA by repurposing Funding Revenues, refusing to transfer Funding Revenues certified by IDR from the State of linois General Fund to the Downstate Transportation Fund in a timely manner, and by refusing to order paid, in a timely manner, the District's DOAP grant payments despite receiving certified vouchers therefor from IDOT. 67. There exists an actual controversy between the District and Comptroller regarding the Comptroller's authority, decisions, and actions under or in violation of the IDTA. 68. It is just and proper that this Court enter a declaratory judgment setting forth the rights of the District and Comptroller with respect to the controversies set forth above. WHEREFORE, the District prays that this court enter a judgment in its favor and against the Comptroller, and that its judgment include specific findings and declarations: (a) that the Comptroller was and is without legal authority to (i) repurpose Funding Revenues upon deposit in the State of Tlinois General Revenue Fund; (ii) refuse to timely order the Treasurer to transfer from the State of Hlinois General Revenue Fund to the Downstate Transportation Fund, on a monthly basis, Funding Revenues certified by the IDR in accordance with the IDTA; (b) that the Comptroller’s actions as described above are unlawful and in violation of the IDTA, and any action taken in violation or her legal authority shall be considered void, and prevented and prohibited in the future; and (c) for such other relief as the court deems just and proper. COUNT II - WRIT OF MANDAMUS 69. The District re-alleges and incorporates the allegations of paragraphs 1 through 68 of this Complaint as paragraphs 1 through 68 of Count II. 70. There is not less than $159,250,209.67 in Funding Revenues certified by the IDR within the State of Illinois General Revenue Fund that is eligible for transfer to the Downstate ‘Transportation Fund, 71. The State of Illinois has appropriated from the Downstate Transportation Fund $6,131,000 for payment of the District's FY 2017 DOAP grant. u72. Only $2,340,046.80 has been paid to the District from its total DOAP appropriation for FY 2017. 73, IDOT has delivered to the Comptroller a certified voucher in the amount of $1,270,681.76, corresponding to the District’s FY 2017 3 Quarter Report. 74, The District has fully complied with the law, both substantively and procedurally, and the District has a clear right to the performance by the Comptroller of the following tinisterial acts: (a) to order the Treasurer to transfer all Funding Revenues certified by the IDR from the State of [linois General Revenue Fund to the Downstate Transportation Fund; and (b) to order the Treasurer to pay the District $1,270,681.76, in accordance with the IDOT certified voucher, 75. The Comptroller is acting arbitrarily, capriciously, unlawfully, in excess of her authority, and in violation of the IDTA, in that she has taken actions and made decisions, and continues to take action and to make decisions, personally and through others subordinate to her, but pursuant to her direction and control, to prevent and preclude the performance of the aforementioned ministerial acts for reasons that are improper, unauthorized, outside the scope of her duties, and which have no basis in fact or in law. 76. The Comptroller has a mandatory duty under the IDTA to perform the acts specified above, none of which involve the exercise of discretion. 77. If the writ is issued, the Comptroller, due to her position and power, and due to the statutory prescriptions codified in the IDTA, has the power and authority to perform, or direct the performance of, the acts specified. WHEREFORE, the District respectfully requests that a writ of mandamus be issued directing the Comptroller to: (a) order the Treasurer to transfer from the State of Illinois General Revenue Fund to the Downstate Transportation Fund (i) not less than $159,250,209.67, or the total outstanding amount of Funding Revenues certified by the IDR for transfer to the Downstate ‘Transportation Fund at the time of entry of such writ; or, alternatively (ii) if the total amount of funds within the State of Ilinois General Revenue Fund at the time of entry of such writ is less than $159,250,209.67 (or the total outstanding amount of Funding Revenues certified by IDR for 12transfer at the time of entry of such writ), such an amount equal to the greatest aggregate amount of whole monthly amounts certified as Funding Revenues by IDR without depleting the State of Mlinois General Revenue Fund to a negative balance, with the remaining amounts of Funding Revenues certified by IDR to be transferred simultancously with the deposit of monies into the State of Ilinois General Revenue Fund, until such time as the Comptroller is current with all such outstanding transfers; (b) order the Treasurer to pay an amount equal 10 65% of the District’s eligible operating expenses, or $1,270,681.76, pursuant to the IDOT certified voucher corresponding to the District’s 3** Quarter Report; and (c) for such other relief as the court deems just and proper including, but not limited to, costs of this suit. Respeptfilly submitted, Joseph Cainkar - 6281109 LOUIS F. CAINKAR, LTD. Attomeys for River Valley Metro Mass Transit District 30 North LaSalle Streot - #3430 Chicago, Hlinois 60602 312/236-3985 joe@lfeltd.net VERIFICATION Robert M. Hoffmann, Managing Director for River Valley Metro Mass Transit District, under penalties as provided by law pursuant to Section 1-109 of the Code of Civil Procedure, certifies that the statements set forth in this instrument are true and correct, except as to matters therein stated to be on information and belief, and as to such matters the undersigned certifies as aforesaid that he verily believes the same to be true, xy Hoffmann, Mayigike Director 3