HomeMy WebLinkAbout6. MANAGER'S REPORT 2/5/02 O:
FROM:
DATE:
SUBJECT:
Village of Mount Prospect
Mount Prospec& Illinois
INTEROFFICE MEMORANDUM
VILLAGE MANAGER MICHAEL JANONIS
PUBLIC INFORMATION OFFICER
FEBRUARY 1,2002
MCIC CONTRACT FOR MULTI'YEAR SURVEY PLAN
The attached contract from Metro Chicago Information Center is a result of the Village
Board's discussion at the January 8 Committee of the Whole meeting in regard to
developing a multi-year survey plan. At that meeting, the Village Board approved moving
forward in developing the multi-year plan. It is expected that the completed plan will be
presented at the June 11 Committee of the Whole meeting. It is anticipated that the multi-
year survey plan will assist the Board in making determinations in regard to budgeting for
future survey efforts.
If you have any questions regarding this contract, please contact me.
Public Information Officer
mO
Metro Chicago Information Center
January 29, 2002
Michael E. Janonis
Village Manager
Village of Mount Prospect
100 South Emerson Street
Mount Prospect, IL 60056
Dear Mr. Janonis:
360 North Michigan Avenue · Suite 1409 · Chicago, Illinois 60601-3802
312-580'2878 voice 312.580.2879 fax · ww~mcic.org
Board of Directors
Jean Allard
Sonnenschein. Noth and Rosent~ol
John D. & Catherine ~ MacArthur
Foundation
Clark Burrus, Retired
Rrst Chicago Capital M~,'kets. Inc
William H. Downey
Downey & Associates
Mike Hobor
MJH Inc.
The Metro Chicago Information Center (MCIC) is pleased to submit this
proposal to conduct a multi-year survey plan for the Village of Mount
Prospect.
The Village of Mount Prospect demonstrates cutting-edge strategic
thinking by recommending a multi-year approach to study resident
attitudes regarding their quality of life. MCIC proposes to develop a plan
that will serve as a guide for the Village to conduct on-going needs
assessment and quality of life surveys in Mount Prospect. The survey plan
will include recommended methodologies for groups that are targeted for
primary research.
To develop the multi-year survey plan, MCIC proposes the following
scope of services:
SECONDARY DATA ANALYSIS
Literature review of information over the past ten years related to the
Village of Mount Prospect. This would include any surveys that have
been conducted with residents, businesses and/or specific interest groups,
such as:
· Police and public safety
· Economic development survey on the Northwest highway
· New resident surveys
· Other available research (schools, park districts, cable
television)
· Research conducted by sister communities
William C. Hunter
Federal Reserve Bank Of Chicago
Edward O. Laumann
University of Chicago
Lisa Lowe
Schwartz & Freeman
Carole No[an
WB~Z Radio
Anna M. Rappaport. FSA
William M. Mercer Inc.
Ben RothbiatL Retired
Lloyd A. Fry Foundation
Martin E. $ilverrnan
$ooz-Allen & Hamilton Inc.
Howard Stanback
New Kenwood
Paur G.Yovov[ch
F6ufiding Chair
Frank~Luerssen
D. Garth Toylo¢ Ph.D.
(Continued...)
In addition, MCIC will review "lessons learned" from the quality of life research efforts
of other communities and use data from the MCIC Metro Survey, 2000 U.S. Census,
HMDA and CRA to prepare a list of findings that will enhance our primary research
functions.
KEY INFORMANT INTERVIEWS
Six key informant interviews to elicit responses from religious leaders, service providers
and/or community leaders on current perceptions and needs in Mount Prospect. Key
informant interviews offer the best introduction to a community for the researcher.
MCIC is proposing six thirty-minute interviews, conducted by telephone (if necessary,
we may arrange for an in-person interview), with six community leaders identified by
Village staff. MCIC will work with Village staffto develop a list of key informant
respondents.
FOCUS GROUPS
Two focus groups conducted with random sample of Mount Prospect residents and local
business owners to obtain in-depth qualitative information and rich detail on topics of
interest. Focus groups also provide a means for determining key issues and needs, and
for stimulating new ideas and concepts. While results cannot always be generalized
across the entire population, they can give deep insight into how people think and
perceive a particular subject.
Both focus groups will be held in Mount Prospect at a public facility arranged by the
Village. MCIC will recruit 10 to 12 participants for each focus group, and plan for 8 to
attend. A random sample of Mount Prospect residents will come from the MCIC Metro
Survey sample of Chicago Metro area households.
We will work with Village staffto determine the best time of day and day of the week to
conduct both focus groups. _ -
KEY INFORMANT INTERVIEWS AND FOCUS GROUPS
MCIC will develop discussion guides with input from the Village of Mount Prospect.
These guides will be provided in advance to the Village for review and approval. For the
focus groups, depending on logistics of the room that is used, Village of Mount Prospect
staff and trustees will be invited to observe. The session will be audio taped.
DRAFT SURVEY PLAN
After reviewing audiotapes, MCIC will prepare a summary of results. The summary will
include overall results, as well as recommendations for Mount Prospect. Findings will
be used to prepare a draft multi-year survey plan for the Village.
WORKSHOP WITH VILLAGE LEADERSHIP
We are well aware that two-thirds to three-fourths of community research efforts do not
result in any policy action or budget decisions.1 This stems from a disconnect between
policy makers and research designers, which is why we are proposing a workshop with
key leaders to close this gap and increase the policy usefulness of the research.
The workshop will take place at a public facility in the Village of Mount Prospect. The
client will identify key leaders to participate in these workshops and will provide a cover
letter encouraging invitees to attend. At the workshop, MCIC will present the findings of
our primary and secondary research, identifying specific goals and actionable outcomes.
We will discuss sampling selection and proposed methodologies for future survey ;~'
research. Examples of questionnaire items will be provided so that participants can react
to and discuss the proposals. We will use the meeting and follow Up conversations to
supplement ottr understanding of specific priorities, challenges, and upcoming decisions
that can be informed by the right data. MCIC specializes in design, analysis, and
presentation that supports and promotes policy decision-making.
MULTI-YEAR SURVEY PLAN
MCIC will produce a multi-year survey plan that will identify specific goals for future
research and actionable outcomes. The plan will serve as a guide for the Village to
conduct on-going needs assessment and quality of life surveys in Mount Prospect. The
survey plan will include recommended methodologies for groups that .~re targeted for
primary research. It will include sample data collection instruments, sampling
procedures and proposed methodologies.
SCHEDULE
February March April May
WEEKENDING"-)' 4 11 18 25 4 11 18 25 1 8 15 22 29 6
Kickoff meeting X
Secondary data X X X X
analysis
Key informant X X X X
interviews
Focus groups X X
Draft survey plan X X X X X
Workshop with X X
Village
Multi-Year Plan X X
This ambitious schedule requires a signed contract by February 1 st; otherwise, the
schedule will have to be revised. It is important to note that both the Village of Mount
~ Thomas I. Miller and Michelle Miller Kobayashi, Citizen Surveys: How to do them, how to use them,
what they mean. Washington, D.C.: International City/County Management Association, 2000, p. 22.
Prospect and MCIC are responsible for completing certain tasks within a set time period.
Delays in receiving data from the client might result in delays of final deliverables;
therefore, timeliness and communication will be essential to ensure a high-quality plan
completed in the month of May.
BUDGET
Survey Plan Cost
Secondary data analysis $750
Key informant interviews $300
Focus groups :~ ~-' '~ ~"~ $4,965
~)raft and Final Multi-Year Survey Plan $2,244
Workshop with Village leadership $1,496
On-going Technical Assistance $3,000
TOTAL FOR PHASE ONE* $12,755
*Costs for Phase I will not exceed $12,755.00
One-third of the project fee ($4,252) will be invoiced upon the signing of this Letter of
Agreement. $4,252 wili be invoiced no later than halfway throu~:Ja the performance
period, with the remainder due upon the delivery of the final survey plan. MCIC terms
are net 30 days. ·
RESEARCH CREDIT
The Village of Mount Prospect agrees to cite MCIC as the research provider in all print
and electronic media copy referencing this project.
CONFIDENTIALITY
MCIC understands that the data pertaining to this project is highly proprietary and will
release no specific information to anyone other than the Village of Mount Prospect
without the express written consent of the Village of Mount Prospect. Ail specific data
received from the Village of Mount Prospect during the course of this research project
will be returned to the Village of Mount Prospect upon the completion of this project.
PUBLICATION RIGHTS
Project deliverables are the property of the Village of Mount Prospect. The Village of
Mount Prospect agrees that MCIC may publish non-proprietary project information of
public interest in other related research reports, the MCIC newsletter, press releases, and
other public relations materials in a way that does not compete with, or harm the interests
of, the Village of Mount Prospect.
OuT-OF-PoCKET EXPENSES
It is expected that there will minimal out-of-pocket expenses, such as mass photocopying,
mailings, etc. pertaining to the above scope of work. Should the need for materials arise,
MCIC and the client will discuss the need and make a final decision. Out of pocket
expenses will be passed on to the client at a rate considered reasonable by common
ndustry standards. Over night mail fees will be logged and billed to the client at cost.
Should these costs exceed $500, MCIC will notify the client ahead of time.
RECORD RETENTION
MCIC stores hard copies of completed questionnaires, focus group transcripts, tapes, and
videos for a period of one month from the date of client acceptance of the final report.
Should the Village of Mount Prospect wish to keep these hard copies for a longer period
of time, please make arrangements to collect them at MCIC before this deadline.
INITIATION OF CONTRACT
MCIC Board policies require a fully initiated contract before the commencemenl~:work
and the expenditure of resources. Cduntdrsigning this contract in the space provided, and
returning a copy of this letter to MCIC will initiate a contract for the above-listed
services. A faxed copy is acceptable for the initial commencement of work. Please
submit an original for our files within five business days thereafter.
This proposal constitutes the entire contract. Changes to the contract can only be made by
written consent of both parties.
MCIC is dedicated and committed to improving the quality of life in the six-county metro
region; therefore, we are especially eager to help you with this important project. We
look forward to working with the Village of Mount Prospect to provide information that
will guide policy and simplify the decision-making process for community leaders. If
you have any questions or comments about MCIC or this proposal, please feel free to call
me at (312) 580-2873.
Sincerely,
Patricia Gross
Deputy Director
ACCEPTED AND AGREED FOR THE VILLAGE OF MOUNT PROSPECT:
Authorized Agent Title Date
Signature acknowledges acceptance of the contents of this Letter of Agreement
illage of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
VILLAGE MANAGER MICHAEL E. JANONIS
ASSISTANT VILLAGE MANAGER
JANUARY 21, 2002
COMPUTER PURCHASES FOR 2002
As has been the policy for the last several years staff has obtained quotes for the purchase
of all PCs scheduled for replacement on a four-year cycle. The requested purchase for
2002 includes 32 PCs, two Iow-end servers, and a GIS server. You will note from the
attached memorandum from MIS Coordinator Joan Middleton that the quoted Gateway
pdce is $1710 per PC compared to the lowest price from Dell of $1693. All previous annual
purchases, Gateway has been the lowest quote, except for this year. The MIS Coordinator
makes a point regarding some quality hardware differences between Dell and Gateway
that are compelling enougl~ of consideration of the Gateway quote. Also the Village's
experience with Gateway has been very satisfactory and the standardization goals of
technology usage have proven valuable.
Therefore, I would concur with the MIS Coordinator's recommendation to purchase 32
Gateway PCs in an amount not to exceed $54,720, purchase twO Iow-end servers from
Gateway in an amount not to exceed $4924, and purchase a GIS server from Gateway in
an amount not to exceed $9534. The total Gateway purchase price would be $69,178.
There are funds available for this purchase through the internal department lease
accounts.
Per the Village Attorney, a supermajority is required to approve the purchase from Gateway
since it is not the lowest quoted price.
If you have any questions, please contact me.
David Strahl
c: MIS Coordinator Joan Middleton
H:\GEN\MIS~2002 PC Purchase Cover Memo,doc
Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
ASSISTANT VILLAGE MANAGER DAVE STRAHL
MIS COORDINATOR
JANUARY 30, 2002
2002 COMPUTER PURCHASES
It is time to begin making scheduled purchases for the new budget year. The Village Board
has previously authorized computer purchases on an annual basis after comparing quotes
from various vendors. The 2002 budget includes 33 desktop PCs, two Iow-end servers,
and one GIS server. Three quotes are provided for each system.
Desktop PCs
Gateway originally came in with the highest price for desktop PCs this time, but they
worked with us to be competitive with the other vendors. The Dell PC has slower memory
and an integrated network adapter instead of the 3Com card the Village has standardized
on. Gateway is preferred because of their successful history with Mount Prospect. The
quotes are shown below.
Standard PCs (33)
Pentium 4, 1.8 GHz Pentium 4, 1.8 GHz Pentium 4, 1.8 GHz
256 Mb RDRAM 256 Mb RDRAM 256 Mb Standard RAM
MS Windows 2000 Professional MS Windows 2000 Professional MS Windows 2000 Professional
MS Office 2000 Professional MS Office 2000 Professional MS Office XP (2000 not available)
3Corn Network Adapter 3Com Network Adapter Integrated Network Adapter
15" LCD Flat Panel Display 15" LCD Flat Panel Display 15" LCD Flat Panel Display
$1,710 $1,712 $1,693
Low-end Servers
The firewall and WebSENSE servers are currently running on standard PCs, but the
upgraded software that will be installed on them requires Windows 2000 Server for the
operating system. It is more economical to purchase Windows 2000 Server on a Iow-end
server than to purchase a standard PC and then purchase the server operating system
separate. Gateway's price for the Iow-end server is well below the others. The quotes are
provided on the next page.
002 Computer Purchases
January 17,2002
Page 2
Low-end Servers (2)
G~wa¥ Micron Deli
Penfium Ill, 1.2 GHz Pentium III, 933 MHz Pentium III, 1.13 GHz
768 Mb SDRAM 768 Mb SDRAM 768 Mb SDRAM
80 Gb IDE Hard Drive 18 Gb Ultra 3 SCSI 60 Gb IDE Hard Drive
Windows 2000 Server Windows 2000 Server Windows 2000 Server
Integrated Network Adapter i integrated Network Adapter Integrated Network Adapter
10/20 Gb TR5 IDE Tape Drive No Tape Drive No Tape Drive
$2~462 $41894 $2,725
GIS Server
The GIS server is a special-use machine designed to serve up large GIS maps. Gateway's
price for the GIS server is well below the others. The quotes are shown below.
Server
' ' Gateway Micron Compaq
(2) Pentium III Xeon wi 2 Mb Cache (2) Pentium III Xeon w/2 Mb Cache (2) Penfium III Xeon w/2 Mb Cache
768 Mb ECC SDRAM : 768 Mb ECC SDRAM 512 Mb SDRAM
(4) 18 Gb Ultra 160 SCSI (4) 18 Gb Ultra 160 SCSI (4) 18 Gb Ultra 160 SCSI
10K RPM Hard Drives 10K RPM Hard Drives 10K RPM Hard Drive
$9~534 $13,002 $11,477
Recommendation
The Village standardized oR Gateway computers in 1997 and has been very satisfied with
their equipment and service.TM Their prices have always been competitive, too. If Gateways
are purchased in 2002, all computers on the Village network will be Gateways, except for a
few special-use machines. It is easier to troubleshoot PCs and to work with tech support if
the PCs are standardized. The Village would benefit by continuing to purchase Gateway
products in 2002.
Please consider this purchase request for 33 PCs, two Iow-end servers, and one GIS
server. Based on Gateway's pricing of $1710 for a PC ($56,430), $2462 for a Iow-end
server ($4,924), and $9534 for the GIS server, the total purchase requested is $70,888.
~JJoan Middleton
MIS Coordinator
I:\lnventor~002 Requests.doc
TO:
FROM:
DATE:
SUBJECT:
MICHAEL E. JANONIS, VILLAGE MANAGER
MICHAEL J. FIGOLAH, FIRE CHIEF
JANUARY 16, 2002
MOBILE DATA TERMINALS
The Fire Department is requesting approval to purchase two Mobile Data Terminals (MDT) and
two Vehicle Radio Modems (VRM) from Motorola for an amount not to exceed $13,108.00. This
purchase will complete a multi-year purchasing plan that provides this equipment in all of the eight
frontline apparatus. Funding for this purchase is provided in account number 5107701-670208
Apparatus Data Links on page 290 in the 2002 budget book.
The IVIDT's are used to display maps, pre-plans, and other emergency response information. These
terminals are also used to provide status information to Northwest Central Dispatch through the
touch screen status barons. The Fire Department currently has six MDT's in service; one in each
fi'ontline engine, one in the shffi commander's vehicle, and one in each frontline ambulance. The
two proposed units would be installed in the quint and the squad.
Each MDT consists of a VRM and a Panasonic CF28 laptop computer. We have selected the
Panasonic model CF28 laptop because of its ragged design, durability and ease of operation for the
user. We currently have six Panasonic laptop computers in vehicles and want to stay with this
model for consistency. A change to a different computer model will create functional differences.
The VRM is the piece of equipment that allows the laptop computer to communicate with
Northwest Central Dispatch. The VRM can only be purchased through Motorola, as they are the
sole source vendor for this piece of equipment.
The following are the results of prices received fi'om applicable vendors:
.Vendor Vehicle Radio Panasonic CF28 Total
Modem .
Motorola $2,572.00 $3,982.00 $6,554.00
Tallgrass Systems Not available $4,047.00 $6,619.00
CDS Technologies Not available $4,107.00 $6,679.00
M 6m
H:H Archlves~01 Janua~MF-Mobile Data Terminals-Village Manager.doc
Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
MICHAEL JANONIS, VILLAGE MANAGER
DIRECTOR OF FINANCE
JANUARY 25, 2002
AUDIT SERVICES
PURPOSE:
' To present a recommendation that the Village Board accept a proposal from Sikich
Gardner and Co, LLP to provide audit services for the fiscal years ending December 31,
2001,2002 and 2003
BACKGROUND:
In the Fall of 2000 staff mailed a Request for Proposal to six CPA firms that had extensive
experience in state and local governmental auditing. Proposals were received from four
firms. The Village Board concurred with staff's recommendation and accepted the
proposal from Crowe Chizek and Company for audit services for our fiscal years ending
December 31,2000 through 2003. Their governmental auditing staffwas very experienced
and the fees proposed were the lowest of the four firms submitting proposals.
DISCUSSION: . '
I recently received notification from a partner at Crowe Chizek that their firm decided to
shift the focus of their practice and that they are no longer going to be providing audit
services to local governments. As with most professional service contracts, both the
Village and Crowe Chizek have the ability to cancel the agreement at any time.
Due to the decision by Crowe Chizek, the senior professional staff primarily responsible for
local government audits are moving to the firm of Sikich Gardner and Co, LLP. Even prior
to the move by the Crowe Chizek staff, Sikich Gardner was very experienced in state and
local governmental audits. In fact, Sikich Gardner was one of the four firms we considered
in 2000 when we went out for proposals.
Attached is a letter from Sikich Gardner that states that they would be pleased to provide
audit services to the Village of Mount Prospect and would agree to honor the fee
quotations that Crowe Chizek originally submitted. Following is a summary of the fees that
Sikich Gardner is proposing:
ROPOSAL FOR AUDIT SERVICES
January 25,2002
Page 2
Service 2001 2002 2003 Total
Basic Services
Opinion on CAFR $15,085 $15,685 $17,350 $ 48,120
Annual Financial Report - Library 1,590 1,655 1,720 4,965
SAS No. 61 Letter 65 70 70 205
Management Letter 320 330 345 995
TIF Audit 445 465 485 1,395
Single Audit 1,275 1,325 1,375 3,975
Total - Basic Services $18,780 $19,530 $21,345 $59,655
Optional Services
Preparation of CAFR $ 5,090 $ 5,295 $ 8,955 $19,340
Preparation of Comptrollers Report255 265 275 795
Preparation of both IDOl Reports 4,460 4,640 4,830 13,930
Of the optional services, the Village has typically retained its audit firm for the preparation
of the Comprehensive Anh~ual Financial Report (CAFR), and has prepared the State
Comptroller's Report and the Illinois Department of Insurance Reports in-house.
Given the excellent reputation and knowledge of the audit staff that would manage our
engagement and the fact that they performed the audit last year, and based upon the low
fees being proposed, staff recommends the Sikich Gardner proposal be accepted.
RECOMMENDATION:
It is recommended the Village Board accept the proposal from Sikich Gardner and Co, LLP
dated January 23, 2002 for audit services.
DRE/
Attach,
I:~audit\Sikich Gardner~Board Memo 1-25-02.doc
DOUGLAS R. ELLSWORTH, CPA
DIRECTOR OF FINANCE
hursday 24 of Jan 2002, Faxination
Sikich Gardner & Co, LLP
q98 Co~l.~orate BouJevard
Auror,~, IL 60~04-
->18~78185336
Paso 2 o£
January 23, 2002
Mr. Douglas R. Ellsworth
Director of Finance
Village of Mount Prospect
101 South Emerson Street
Mount Prospect, Illinois 60056
RE: Annual Audit
Fiscal Year~ Ending December 31, 2001, 2002 and 2003
Dear Mr. Ellsworth:
Thank you for contacting us regarding our providing audit scrviocs for the Village as ret~reneed
above. Wc will perform those scrviees as specified in dxc Villagc'~ request for proposal dated
October 5, 2000, {'or Ihe same Fees a.s proposcd by the Village's predecessor audit firm for those
Il'you have any questions or require further information, please do not hesitate to contact us at
Sincerely,
SIKICH GARDNER & CO, LLP
Freder'ek G. Lantz, CPA
Partner, Director of Government Sorwces
STATEMENT OFINDEPENDENCE
Sikich Gardner & Co, LLP has evaluated its independence from the Village of Mount Prospect
and its component unit in accordance with the second general standard for performing
government audits as defined by the U.S. Genei'al Accounting Office's Government Auditing
Standards (1994) and the AICPA Code of Professional Ethics. Based upon our evaluation,
Sikich Gardner & Co, LLP is free of any personal and external impairment to independence from
the Village of Mount Prospect and its component unit both in fact and in appearance to any
knowledgeable third pan5,.
LICENSE TO PRACTICE IN ILLINOIS
The Firm of Sikich Gardner & Co, LLP is a licensed Public Accountant Limited Liability
Panaership in Illinois (license g066-003584). All of the parmers assigned to the engagement am
registered and licensed Certified Public Accountants (CPAs) in Illinois. In addition, all of the
professional staff assigned to the engagement are either registered Certified Public Accountants
or are completing the exam.
~i~ Sikich Gardner & Co, LLP 5
FIRM QUALIFICATIONS AND EXPERIENCE
Experience
The Firm of Sikich Gardner & Co, LLP traces its foundation to a predecessor firm founded in
1928. Today, we are one of the fastest growing regional firms in Illinois with three offices
located in Aurora, Sycamore and Springfield. Through these offices, we provide a wide
spectrum of services including audit, tax, accounting and management consulting services. In
addition, through our subsidiaries of the Sikich Group, we provide insurance, technology,
investment and human resources services. When clients come to us, they have their needs met
promptly by our unique team philosophy, which allows each client to work with a team of
specialists that focus on providing these services to a specific industry. Government and non-
profit organizations, high-tech and manufacturing, construction, medical service providers and
distributors are some of the more significant industries that are served by these teams.
Since our inception, our Firm has been dedicated to providing high quality, timely services to
state and local units of government. During 2000, the local government team in our Aurora
office conducted audits of over seventy cities, villages, towns and other units of government,
including the third largest city, two of the top five fastest growing communities, the second
largest park district and third largest community college in Illinois. Many of these have been
long standing clients and are evidence of our dedication to the state and local government
industry and our abilities to provide high quality, timely services within this specialized industry.
These clients and related work have enabled our Firm to develop an extensive expertise in
governmental accounting, audj~ng and financial reporting procedures and practices.
Qualifications And Technical Expertise
Senior members of our government team in our Aurora office who will be directly involved in
your engagement presently hold memberships and are actively involved in numerous
governmental organizations, including the Government Finance Officers Association of the
United States and Canada (GFOA), the Association of School Business Officials International
(ASBO), the Illinois Government Finance Officers Association (IGFOA), the Illinois City
Management Association, the Illinois Municipal Treasurers Association (IMTA), the American
Institute of Certified Public Accountants (AICPA) and the Illinois CPA Society (ICPAS).
In addition, members of this team serve on the GFOA Special Review Committee (SRC), the
ASBO Panel of Review.ers (Arbitrator), the IGFOA Technical Accounting Review Committee
and the ICPAS Board of Directors and Governmental Report Review Committees. Moreover,
members of this team have served as expert speakers to these organizations, state GFOAs and
others for formal presentations at local meetings and annual conferences on a variety of
governmental accounting, auditing and financial reporting topics. Finally, we have also
developed governmental accounting, auditing and financial reporting training courses for various
organizations with members of our Firm serving as lead instructors for the courses.
~ Sikich Gardner & Co, LLP 6
The Illinois Government Finance Officers Association sponsored an Advanced Governmental
Accounting and Financial Reporting seminar that was developed and instructed by our staff. We
also developed and presented a session on hiring an auditor and preparing an RFP that was
presented at IGFOA's Annual Conference. Furthermore, our staff assisted IGFOA in developing
a new reporting model and in testifying before the Governmental Accounting Standards Board
(GASB) in October 1994 on this new proposed model and continued in this capacity by
testifying before GASB in November 1995. In addition, we published an article in the IGFOA
Communiqud on the effect of GASB's three new pension pronouncements on local governments
in Illinois. In February 1997, we served as instructors for the IGFOA Finance Officers Institute
for the sessions on accounting, auditing and financial reporting for state and local governments.
Furthermore, in March 1997 and Mamh 1998, we served as instructors for the IGFOA Pension
Institute, developing a case study for implementing the new pension guidance on local police and
fire pension plans in Illinois. Finally, in 1998 and 1999, we have developed three governmental
accounting courses for IGFOA, basic, intermediate and advanced, and are serving as instructors
for courses offered throughout the year. Lastly, we have developed a course for implementing
GASB's new reporting model and presented it to numerous State GFOA's, including the Illinois
GFOA.
Quality Control
Quality control is so important to us that our Firm has been a member of the SEC Practice
Section (SECPS) and the Private Companies Practice Section (PCPS) of the Division for CPA
Firms of the AICPA since 1982~ As such, we have voluntarily submitted our audit and
accounting practice to quality control reviews of our compliance with professional standards as
established by the AICPA and, more recently, by the United States General Accounting Office
(GAO), for over sixteen years. We have met these standards and have received unqualified
opinions on each of our five reviews. Attached to this proposal is the report fi.om our most
recent review dated May 20, 1999, which included a review of specific government engagements
since this accounts for a significant segment of our practice.
Our state and local government reports have been reviewed by numerous federal and state
oversight bodies and professional organizations. These reports have been judged to meet and, in
most instances, exceed industry standards and requirements. We have never had any disciplinary
action taken nor is any pending against our Firm with any state or federal regulatory body or
professional organization.
~ Sikich Gardner & Co, LLP 7
PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS
Sikich Gardner & Co, LLP has three offices in Illinois located in Aurora (managing office),
Sycamore and Springfield. The Firm currently has twenty partners and over one hundred
professional staff, with the highest concentration of staff in Aurora and Springfield. Four of
these partners and eighteen members of the staff are devoted extensively to the Finn's
government industry team. If Sikich Gardner & Co, LLP were chosen to provide audit services
to the Village, we would staffthe engagement with professional staff from this group in our
Aurora and Sycamore office. These staff, all of whom meet or exceed the CPE requirements
contained in the U.S. General Accounting Office, Government Auditing Standards (I 994) would
include:
Frederick G. Lantz, Director of GoVernment services/Engagement Partner - As director of
government services and engagement partner, Mr. Lantz has responsibility for the overall
management of the audit. This includes developing and coordinating the overall audit plan, the
in-depth review of all workpapers and the preparation of the Village's comPrehensive annual
financial report (CAFR) (Mr. Lantz is a member of the SRC). MoreoVer, our Firm's philosophy
is to have the team leader on location during the completion of the majority of fieldwork.
Therefore, Mr. Lantz would be present at the Village's offices dUring both preliminary and final
fieldwork. Mr. Lantz has over seventeen years of experience in the state and local government
industry, including leading our local gnvemment team on over fifty local government
engagements, and is a nationally recognized expert in the industry. Mr. Lantz, a licensed
certified public accountant, is a graduate of Northern Illinois University with a degree in
Accounting.
Michael J. Palmatier, Resource Partner - As resource parmer, Mr. Palmatier Will be
responsible for providing technical support for the OVerall eXeeution of the engagement. Mr.
Palmatier has fourteen years of experience auditing a variety of governmental entities, including
serving as engagement partner for the audit of the third largest city in Illinois and one of the..~-
largest sanitary districts in the state. Mr. Palmatier, a licensed certified public accountant, is
of Iowa with a degree m Accounting and has also received the.~
graduate of the University ' '
Certificate of Educational Achievement in Governmental AcCounting and Auditing from the
AICPA. He has served on the Illinois CPA Society Local Government COmmittee.
Duane D. Suits, Quality Control Partner - As quality control partner, Mr. Suits will provide
our second partner review of the audit workpapers and the Village's CAFR. Mr. Suits is parmer-
in-charge of our Firm's audit committee and has over twenty-five years of experience auditing
local governments. Mr. Suits, a licensed certified public accountant, is a graduate of Southern
Illinois University with a degree in Accounting. He is a member of the Illinois CPA Society
Board of Directors and has spoken at conferences sponsored by the ICPAS, Illinois Municipal
League and Illinois Municipal Treasurer's Association.
~ Sikich Gardner & Co, LLP 8
Brian D. LeFevre, Engagement Manager - As engagement manager, Mr. LeFevre is
responsible for the day-to-day supervision of the audit engagement. Mr. LeFevre has eight years
of experience auditing governmental entities, including serving as manager for the audits of the
Cities of DeKalb, Des Plaines, St, Charles and Wheaton, the Villages of Carol Stream, Hoffman
Estates, Lake in the Hills, North Riverside, Riverside, Western Springs and Montgomery and the
preparation of numerous reports for submission to GFOA's Certificate of Achievement Program.
Mr. LeFevre, a certified public accountant, is a graduate of Valparaiso University with a degree
in Accounting and Northern Illinois University with a Masters in Business Administration.
Heather Scholl, Engagement In-charge - As engagement in-charge, Ms. Scholl is responsible
for the day-to-day execution of the audit programs. Ms. Scholl has five years of experience
auditing governmental entities, including serving as in-charge for the audits of the Cities of
DeKalb, Geneseo and Genoa, the Village of East Dundee and Waubonsee Community College
including preparation of the first ever CAFRs for the City of Geneseo and Waubonsee
Community College that were awarded a Certificate of Achievement for Excellence in Financial
Reporting on its first submission. Ms. Scholl, a certified public accountant, is a graduate of
Northern Illinois University with an undergraduate degree in Accounting.
Other professional staff assigned to the engagement are full time employees of the firm and
would have a minimum of one to three years of auditing experience, including local government
auditing experience. In addition, all staffin the Firm that are assigned to government
engagements meet and usually exceed the continuing professional education (CPE) requirements
contained in the U. S. General Accounting Office, Government Auditing Standards (1994).
Moreover, our government staff }~ave a specific knowledge of local government accounting and
reporting requirements and their application for Illinois governments. This is achieved by
attending at least forty hours per year of a combination of external courses sponsored by the
AICPA, ICPAS, GFOA, IGFOA and internal courses instructed by Fred Lantz who has over
seventeen years of experience instructing national governmental accounting, auditing and
financial reporting courses for the GFOA; IGFOA, AICPA and ICPAS.
This enables our firm to staff our governmental engagements with qualified professionals in the
industry, providing valuable services to our governmental clients during the audit and throughout
the year, as well as consistency in staffing multi-year engagements. We can assure the Village
that none of the staff assigned to the engagement would need any "on the job accounting or
financial reporting training" by the Village's staff. Moreover, we can assure the Village of the
quality of staffing for a multi-year engagement, even ifa change in personnel is required, subject
to the approval of the Village.
~ Sikich Gardner & Co, LLP 9
SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENTAL ENTITIES
Following is a list of significant engagements performed last year that are similar to the
engagement that we are proposing for the Villa'ge of Mount Prospect. All of these engagements
were led by Mr. Lantz. In addition, Mr. LeFevre served as manager on all of these engagements
except for the City of Aurora.
Approximate
Number of
Name Hours Contact
*City of Aurora
44 East Downer Place
Aurora, Illinois
1,200
Mr. Brian Caputo
Treasurer, Finance Director
(630) 844-3613
*City of Des Plaines
1420 Miner Street
Des Plaines, Illinois 60016
800
Mr. Jim Egeberg
Finance Director
(847) 391-5300
*City of Wheaton
303 West Wesley Street
Wheaton, Illinois
700
Mr. Mark Horton
Finance Director
(630) 260-2032
*Village of Hoffman Estates
1900 Hassell Road
Hoffman Estates, Illinois
700
Mr. Michael DuCharme
Director of Finance/Treasurer
(847) 882-9100
*Village of Carol Stream
500 North Gary AVenue
Carol Stream, Illinois
400
Mr. Stan Helgerson
Finance Director
(630) 665-7050
*These govemments participate in GFOA's Certificate of Achievement for Excellence in
Financial Reporting Program (we assisted the Cities of DeKalb and Aurora in receiving their first
Certificate of Achievement for Excellence in Financial Reporting). Single audits or program
specific audits were performed for the Cities of Aurora, Des Plaines and Wheaton and the
Village of Carol Stream. Sikich Gardner & Co, LLP has twenty (20) clients who have applied
for and received the Certificate of Achievement for Excellence in Financial Reporting.
~ Sikich Gardner & Co, LLP 10
Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
MICHAEL JANONIS, VILLAGE MANAGER
DIRECTOR OF FINANCE
JANUARY 25, 2002
BOND REFINANCING
PURPOSE:
To present a recommendation that the Village Board authorize staff to proceed with the
current refunding of its Series 1993 and 1994 general obligation bonds.
BACKGROUND: ~
In April of 1993 the Village sold $10 million of general obligation refunding bonds to
refund certain previously issued bonds and to provide a small amount of new money for
downtown redevelopment costs. The bonds mature December 1, 2005. There is
currently $4,360,000 outstanding. The bonds ara callable anytime on or after
December 1,2000.
In Mamh of 1994 the Village sold $6.8 million of general obligation bonds to fund
various street improvements, flood control improvements and downtown
redevelopment. The bonds mature December 1, 2004. There is currently $2,225,000
outstanding. The bonds are callable anytime on or after December 1, 2000.
DISCUSSION:
Attached is a letter from R.V. Norene & Associates, the Village's bond advisors,
regarding potential savings from a current refunding of the outstanding balance of our
Series 1993 and 1994 general obligation bonds.
According to Mr. Norene, short term interest rates in the capital markets have dropped
significantly over the past year resulting in the potential to save as much as $216,820 in
debt service costs over the next four years (approximately $54,000 per year). The
present value savings are estimated at $207,220, which is 3.15% of the par value of the
refunded bonds.
urrent Bond Refunding
January 25,2002
Page 2
The average interest coupon rates on our Series 1993 and 1994 bonds are 4.49% and
4.34% respectively. Mr. Norene estimates that a current refunding bond issue with the
same maturity and debt service schedule will see average coupon rates closer to
2.15%. It is this difference in rates that generates the savings.
The $216,820 of potential savings are net of the costs of bond issuance, which are
estimated at $74,000.
If directed by the Village Board, staff will immediately begin working with R.V. Norene
and Associates on developing the Official Statement and the necessary bond
documents, and soliciting bids. We would expect to come to the Board in early or mid-
March with the bid results. If interest rates dse, and the expected savings do not
materialize, the Village Board can decide if the sale should go through at that time.
RECOMMENDATION:
It is recommended the Village Board authorize staff to proceed with the current
refunding of the Series 1993 and 1994 general obligation bonds and authorize R.V.
Norene & Associates to solicit bids for the bond sale.
DIRECTOR OF FINANCE
DRE/
I:\Debt~2002 REFUNDING\Memo 1-25-02.doc
R.V. NORENE & Associates, Inc.'
Mr. Douglas R. EIIsworth
Director of Finance and Treasurer
Village of Mount Prospect
100 South Emerson Street
Mount Prospect, Illinois 60056
January 24, 2002
RECE :,;~ SD
Current Refunding of Series
1993 and 1994 Bonds
Dear Doug:
When we sold the Village's 1993 (A&B) and 1994 General Obligation Bonds we
incorporated a pdor redemption feature that allowed the bonds to be called for redemption
on or after December 1, 2000. We also required that the bidders use ascending coupons
on the bonds which meant that when the bonds became callable the highest coupon
remained offedng the greatest potential for a refunding issue to produce an interest
rate/cost savings. The remaining callable maturities (December 1, 2002-2005) had
coupons ranging from 4.30% to 4.50% (see Table A).
In December 2000 munidpal interest rates from one to five years were flat at
approximately 4.20% and a refunding for savings was not possible. Interest rates on
short term municipal issues are now very attractive. By way of illustration, on Tuesday,
January 22, 2002 the Village of Oak Lawn sold General Obligation's. The reoffering
yields on the 2002-2005 maturities (an identical period to the remaining bonds on your
Series 1993/1994)were: 2002=1.45%; 2003=1.55%; 2004=2.25%; and 2005=2.85%.
The Oak Lawn bonds were insured which means the reoffedng yields were comparable
to what would be received for your "Aa3" rated bonds
Using the above interest rates on a current refunding issue to call and redeem the
$4,360,000 callable Series 1993 Bonds and $2,225,000 callable Series 1994 Bonds
would have the following results (see Table B):
Refunding Issue Amount .... $6,660,000*
Gross Savings ............ $ 216,820
Present Value Savings:
Amount .............. $ 207,220
Percent of Refunded Par . 3.15%
Includes $39,000 legal, fiscal and administrative
costs, bond discount provision of $33,300 and
$1,975 contingencies.
Unlike an advance refunding bond issue (depositing bond proceeds into an
escrow to be used to pay debt service until the redemption date) which can be deferred
to a future date in an attempt to access more favorable interest rates, if bonds that are
immediately callable are not redeemed (a current refunding) and lower interest rates
substituted, the potential savings is lost forever. A "current" refunding of previously
issued "bank qualified" bonds (such as the Series 1993 and 1994 issues) does not
encumber your current years$10,050,000 bank qualified authorization except to the extent
Lake & Waukegan Office Center, Suite 215 · 1701 Lake Avenue · Glenview, IL 60025
R&7.~R-~R,I~ ° FAX 847-.q98-5503
.V. NORENE & Associates, Inc.
of the issuance costs - - in this case the $75,000 for bond discount and issuance costs
would leave $9,925,000 available in 2002.
We recommend that the refunding bonds be sold at a public competitive sale to
obtain the lowest interest rotes and therefore greatest savings. After you have had a
chance to review this letter please give me a call with your thoughts. I would anticipate a
sale in early/mid March which would allow the bonds to be redeemed April 1,2002.
Yours truly,
President
R.V. Norene & Associates, Inc.
RVN/vim
Enclosures
01/24/02 14:25 FAX 18479985503 R.V.Norene Assoc ~07
Table B
Mount Pvospect
Interest start date:
Refunding Bonds, Series
Bid per $1000 995.00000000
Aug coupon 2.15376%
Avg life 1.91216216
Bend yrs 12,735.00
Interest start date: 04/01/02
First interest paysent: 12/01/~
DEBT S~RVIC~ SCHEDULE
PERIOD ANNUAL
ENDING PRINCIPAL RATE INTEREST
I 1~/01/02 2,045,000.0~ 1.450 84~013.33
2 1~/01/03 1,860~000.00 1.550 96,367.50
3 1~/01/04 1~830~000.00 e.~50 67,537.50
TOTAL 6~660,~0.00 ~74~80.83
TOTAL
2,1~9,013.3~
1,956,367.50
1,897, 537.50
951~36~.50
6,934,~80.83
Savings.Analysis
Endin9
Date Set 93/~4 Ser 2092 Savings
1
3
4
1~/01/02 ~ 183~ 081 ~, 1~9~ 813 5~, 787
12/01/03 2,009,488 1,956,367 53, 1~B
1~/~1/~4 1,949~ 387 1 ~ 897~ 537 51,849
1~/~1/~5 1, ~8, 4~5 951, 36a 57~ ~6~
7, 151~ 181 6,934~ ~88 ~16~ 6EB
P~esent Value Savings @2.10% .................... 207,220
R.V. Norene & Assoelstes, Inc. - - Janusry, 7.3, 2002 - File:mp2OO2r