HomeMy WebLinkAbout7. MANAGERS REPORT 9/21/04
Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
FROM:
MICHAEL E. JÅNONIS, VILLAGE MANAGER
DIRECTOR OF FINANCE
TO:
DATE:
SEPTEMBER 17,2004
REVISED TRAVEL AND PURCHASING POLICIES
SUBJECT:
At the August 10 Committee of the Whole meeting the Village Board reviewed revisions and
formatting changes to the Village's Travel and Purchasing Policies. Listed below are the changes
recommended by the Village Board resulting from discussions between the Board and Village staff.
TRAVEL POLICY
1.
Modified authorization process for Chicago Metro area lodging (Page 4, Chapter
3, Item F).
Removed in-state/out-of-state designation from per diem for overnight travel
(Page 12, Exhibit 3).
2.
PURCHASING POLICY
1.
Added language clarifying required approvals for Village purchases (Page 4,
Section D).
Attached are the Travel and Purchasing Policies incorporating the above-mentioned
changes. Please review and contact me if you have any questions. I would like to place
these two items on the agenda for the upcoming Village Board meeting scheduled for
September 21. Thanks.
/tJl~ é?. «~
DAVID O. ERB
DIRECTOR OF FINANCE
DOE!
1:\Policies\Purchasing\Second Memo to Board - September Revision (Travel & Purchasing).doc
VILLAGE
OF
MOUNT PROSPECT
Travel Policies and Procedures Manual
Revised September 2004
TABLE OF CONTENTS
CHAPTER 1 - INTRODUCTION
A. Introduction/Statement of Policy
CHAPTER 2 - TRAVEL POLICY
A. General Travel Policy
B. Travel Authorization
C. Travel Advance
D. Travel Expense Reports
CHAPTER 3 - TRAVEL RULES AND REGULATIONS
E. Per Diem Allowance
F. Chicago Metropolitan Area Travel Expenses
G. Transportation
H. Lodging
1. Take-Home Vehicles
CHAPTER 3 - EXHIBITS
A. Exhibit 1 - Conference/Seminar Attendance Request Form
B. Exhibit 2 - Employee Expense Report Form
C. Exhibit 3 - Current Per Diem Amounts and Transportation Stipends
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CHAPTER 1 - INTRODUCTION
A. Introduction/Statement of Policy
The purpose of this Travel Policy and Procedures Manual is to provide the Village of Mount
Prospect officials and staff with guidelines and directions for obtaining approval and
reimbursement for travel costs incurred during the course of normal village business.
The Village of Mount Prospect utilizes a decentralized purchasing process. Initiating Village
business-related travel activities (obtaining air fare quotes, hotel quotes, etc.) is the responsibility
of the each individual department and must be conducted within policies and procedures
contained within this Travel Policies and Procedures Manual.
Employees are expected to read and understand the travel policies and procedures manual. This
manual is designed to be a fluid document and will be modified from time to time to conform to
changes in legislation, usual and customary travel expense charges and best management
practices. Although it may not answer every question related to travel practices, it does provide
general guidelines for travel activities. Employees who need help dealing with specific
situations not covered by the manual should contact their department head.
The Village Manager, or his/her designee, shall be the final authority with regards to
enforcement of any of the provisions of this manual. Failure to follow the procedures outlined in
this manual may lead to disciplinary action in accordance with the provisions of the Village of
Mount Prospect Employee Personnel Manual.
Michael E. Janonis
Village Manager
Dated this - day of September 2004.
CHAPTER 2- TRAVEL POLICY
A. General Travel Policy
The purpose of the Village of Mount Prospect's Travel Policy is to set forth the regulations
governing travel arrangements and reimbursement for travel expenses. This document explains
the travel polices and procedures a traveler on official Village business is expected to follow.
The regulations contained within this document are applicable for all travel expenses incurred on
behalf of the Village by employees and Village officials. For definition purposes, the President,
Board of Trustees and all Commission Members are considered officials. Employees, by
definition, include all full-time and part-time paid personnel.
The Village of Mount Prospect, so as to advance the training and professionalism of its officials
and employees, authorizes travel to certain seminars, conferences and conventions. Officials and
employees also travel, on occasion, during the normal course of business or to promote the
Village of Mount Prospect. It is not the intention of the Village to expect an individual
conducting official Village business to incur personal out-of-pocket expenses without
compensation or reimbursement.
Control of travel authorization and adherence to approved travel budgets are the responsibilities
of department heads. Travel authorization is a two-part process including: 1) approval of the
travel request in advance; and 2) approval of the travel expense report following the completion
of the travel. Approval of the travel expense report indicates that expenses submitted have been
reviewed and have been found to comply with Village regulations regarding travel and
authorized business expenses.
All Village personnel traveling or incurring business expenses on behalf of the Village, and
those responsible for the approval of these expenses, are expected to use these measures to assist
in maintaining control over travel expenses. The policies detailed here apply to all funds under
Village control and are superseded only in those instances where funding agencies apply specific
and more restrictive rules and rates.
B.Travel Authorization
Authorized trips are determined through the budget formulation process. Exceptions to this rule
include unscheduled travel required in the line of duty or travel due to special circumstances,
which require Village Manager approval.
In general, no more than one national and one state conference may be authorized for any
department head in any fiscal year and must be approved in advance. Attendance at other
meetings outside the State of Illinois may be authorized when the department head or appropriate
staff is an active participant in the national and/or state organization. Local professional and
technical conferences/meetings are authorized as funding and duty conditions permit.
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B. Travel Authorization (cont.)
It is Village policy that all Village-related travel must be approved in advance. Department
heads can authorize travel and training where the total cost for the travel or training is expected
to be less than $1,000. In cases where the total costs for the travel and training is expected to be
more than $1,000 approval in advance is required from both the department head and the Village
Manager. The Village Manager may authorize exceptions when these regulations do not cover
the situation.All employees attending conferences and seminars shall obtain approval in advance
by submitting a completed Conference/Seminar Attendance Request form (Exhibit 1) no later
than twenty-one (21) days prior to the conference or training event. A descriptive brochure or
announcement describing the seminar or training session should accompany the attendance
request form.
C. Travel Advance
Normal practice will be for the Village to directly pay vendors for as many travel expenses as
possible, including seminar and conference registration fees. Travel advances to cover travel
costs expected to be paid by the employee will be permitted through completion of the
Conference/Seminar Attendance Request form and completion of a check request form.
Conference/Seminar Attendance Request forms and travel advance check requests should be
submitted far enough in advance to avoid having to issue manual checks, typically three weeks.
Travel advance check requests, however, should not be submitted more than one month prior to
the dates of travel.
D. Travel Expense Report
The Village of Mount Prospect Employee Expense Report (Exhibit 2) is to be completed and
submitted within five business days after returning from the business trip. The form should be
submitted to the department head, and once reviewed and approved, forwarded to the Finance
Department. Original receipts for all expenditures are to be attached to the Employee Expense
Report. If total eligible out-of-pocket expenses paid by the employee exceed any travel advance
received, a check request should be completed and submitted to reimburse the employee for the
difference. The check request form will be processed as part of the routine accounts payable
process. Special checks will be authorized by the Director of Finance only when extraordinary
circumstances make it necessary to deviate from the normal reimbursement policy. If total
eligible out-of pocket expenses paid by the employee is less than the travel advance received, the
employee is to return the excess funds along with the completed Employee Expense Report
within five business days after returning from the business trip.
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CHAPTER 3- TRAVEL RULES AND REGULA nONS
E. Per Diem Allowance
For travel requiring overnight lodging, the Village provides a per diem allowance to cover meals
and other incidental travel expenses incurred in a day. Employees and Village officials will not
be reimbursed for any expenses which exceed the per diem allowance. The per diem allowance
is appropriate for education and conference type travel. Receipts are not required for expenses
covered by the per diem. The types of costs covered by the per diem allowance includes 3 meals
and incidentals (personal phone calls, baggage charges, newspapers, tips, etc).
The currently approved per diem amounts can be found in Exhibit 3 of this Travel Policies and
Procedures Manual.
Where conference registration fees include one or more daily meals, the per diem allowance
will be reduced by the appropriate meal allowances as provided for above.
The per diem allowance for the days of departure and return will be reduced by the appropriate
meal allowance(s) not required for that day. Breakfast allowances will only be given when the
employee or official was forced to obtain overnight accommodations the night before. Lunch
allowances will be provided only when the employee or official has left the Village boundaries
for the training session before 10:00 a.m. and is not expected to return until after 2:30 p.m.
Dinner allowances will be given only if the employee or official will not be returning home prior
to 8:00 p.m. or if the employee will be staying overnight on Village business.
F. Chicago Metropolitan Area Meeting Expenses and Other Business Related Travel
Lodging
Lodging expenses for employees, relating to travel within the Chicago Metropolitan Area, will
only be approved in the most unusual circumstances and must be authorized in advance by the
Village Manager.
Transportation
Private vehicles may be used for travel on Village business when authorized by the department
head. If training is scheduled for the start of the workday, reimbursement is based upon the
shortest distance to the training site from the closer of either the employee's residence or place of
employment. If a private vehicle is used, mileage reimbursement will be paid at the current
reimbursement rate allowed by the Internal Revenue Service. The mileage reimbursement rate is
intended to cover the following expenses: gasoline, normal wear and tear on the vehicle,
insurance, and any vehicle damage. In the case of vehicle accidents, the employee's insurance
policy will be considered to be the primary insurance coverage.
If public transportation is used, a receipt must be provided to obtain reimbursement.
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F. Chicago Metropolitan Area Meeting Expenses and Other Business Related Travel
(cont.)
Parking and Tolls
Parking lot receipts and toll receipts are required for reimbursement.
Meal Expenses
Total meal expenses, including tips, are generally not to exceed the per diem amounts set forth in
Exhibit 3. However, under special circumstances, the Village Manager may approve
reimbursements of a higher amount provided that the expenditure is reasonable and justifiable.
Except for meals, receipts to document the above local travel expenses are required for
reimbursement. Professional luncheon meetings will be reimbursed at actual cost if one price is
charged to all participants.
Use of Petty Cash
When travel allowances or reimbursements amount to less than $50.00, petty cash may be used.
A petty cash slip must be completed and approved by the department head prior to receiving
cash. Following the conference, receipts must be presented and if money is due the employee or
official, the petty cash representative will calculate amount due and will reimburse the employee
or official. If money is due the Village, it must be submitted at the time receipts are presented,
which may be no later than five business days following the conference. Receipts will not be
required for professional luncheons in which one price is charged all participants. However, the
name of the association and description of the meeting must appear on the petty cash slip.
Receipts will be required for transportation, parking and tolls in these cases; mileage should be
recorded if a private vehicle was utilized.
G. Transportation
1. Air Travel
Air travel reimbursement is limited to "coach" or "economy" fares. Travel to and from
airports may be by bus, limousine, taxi, or private vehicle (for which mileage will be
paid), whichever mode of transportation is less costly. Receipts for such transportation
costs, including airport or station parking, must be obtained and submitted after returning
from the trip.
In order to secure reduced rate tickets, air travel arrangements should be made as far in
advance as possible. The Conference/Seminar Attendance Request form must be
approved before airfare will be booked.
Reduced rate tickets are often non-refundable and only exchangeable by paying a penalty
fee. Therefore, travelers must be careful to specify the dates and times correctly before
tickets are purchased. In case of emergency, the Village will bear the cost of the
refunding or exchanging of tickets, but approval must be obtained from the Director of
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1. Air Travel (cont.)
Finance. The cost savings obtained by using non-refundable tickets are great enough to
warrant the occasional extra charge for an emergency or otherwise unforeseen event.
2. Village Vehicles
Village of Mount Prospect vehicles are to be used to travel when available. Since the
inventory of "pool cars" for use by employees and public officials is limited, it will not
always be possible for a Village vehicle to be obtained. If a vehicle is unavailable, the
employee should notify the department head. A private vehicle may be used in these
cases. In addition, employees may use a private vehicle to attend meetings when leaving
directly from their home if traveling from home is more practical.
Village vehicles may be used to travel to destinations within 300 miles from Mount
Prospect on official Village business. Special approval must be obtained for longer trips
from the department head and the Director of Finance.
If expenses are incurred which relate to the use of a Village vehicle, receipts are required
in order to receive reimbursement. Gasoline, tolls, repairs and other expenses
attributable to the Village vehicle are reimbursable.
3. Private Vehicles
Private vehicles may be used for travel on Village business when a Village vehicle is not
available or when traveling greater than 300 miles from Mount Prospect. In either
instance, the department head must grant approval. Reimbursement shall be limited to
the lower of:
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The amount due based upon the current mileage rate approved by the Internal
Revenue Service plus tolls, parking, and garage charges (receipts required) or
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The cost of air travel.
The mileage reimbursement rate, as determined by the Internal Revenue Service, is
intended to cover the following expenses: gasoline, normal wear and tear on the vehicle,
insurance, and any vehicle damage. In the case of vehicle accidents, the employee's
insurance policy will be considered to be the primary insurance coverage.
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4. Taxi and Airport Transportation
It is expected that employees will use the most effective ground transportation available,
considering cost, time, availability and scheduling.
In travel between the employee's residence and the airport, the Village will reimburse the
employee based on actual expenses incurred not to exceed the local transportation stipend
provided for in Exhibit 3. Receipts must be submitted for reimbursement.
An additional on-site transportation stipend will be available for other expenses related to
transport between the airport and the conference/seminar hotel. The Village will
reimburse the employee for actual expenses incurred not to exceed the on-site
transportation stipend provided for in Exhibit 3. Receipts must be submitted for
reimbursement.
5. Rental Vehicles
The Village does not provide direct reimbursement for any car rental expenses. Should
an employee choose to rent a vehicle at his or her own expense at the location of a
conference or seminar, eliminating the need to take a taxi or bus between the airport and
conference hotel, the Village will reimburse the employee up to an amount not to exceed
the on-site transportation stipend provided for in Exhibit 3. Car rental receipts must be
submitted before reimbursement is made. An employee may combine the local and on-
site stipends for use either locally or at the conference/seminar location to allow
flexibility in transportation options.
H. Lodging
1. Hotel Reservations: General Information
Reimbursement for lodging will be limited to the minimum number of nights required to
conduct the assigned Village business including adequate travel time to and from the
conference or business location. For example, if a conference opens on Monday morning
at 8:00 a.m. in Springfield and closes on Thursday noon, reimbursement would be paid
for Sunday through Wednesday night (assuming travel on Sunday with return on
Thursday). Receipts for lodging are required.
Additional nights lodging will be reimbursed if discount airfares are available and can be
used by the employee so that the total cost of the discounted airfare and the additional
lodging and other travel expenses produce a net savings for the Village. If an employee
or official chooses to arrive earlier or stay later at his/her own discretion, the additional
lodging and other expense incurred from the individual's decision will be considered
personal expenses and will not be reimbursed.
Various hotels/motels offer special discounts to government employees. The employee
or official should check on such discounts when the reservation is placed. If a conference
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1. Hotel Reservations: General Information (cont.)
registration form indicates discounted lodging rates for conference attendees, the
employee or official should obtain a room at the hotel/motel suggested given the rate is
moderate. If the suggested hotel/motel is different from the conference site, and the
conference does not provide transportation (such as a shuttle) between the sites,
reasonable travel fees will be reimbursed with proper receipts. A copy of the registration
form with the lodging rates should accompany the expense report.
2. Hotel Deposits
The employee or official should pay hotel or motel deposits required to reserve
accommodations unless this causes undue financial hardship. In most cases, the traveler
can use a personal credit card to pay such a deposit. If the traveler wishes the Village to
cover the deposit due to undue financial hardship, approval must be sought from the
Department head and the Director of Finance.
3. Traveling With Spouse and/or Other Family Members
If a spouse and/or other family members travel on an official trip, reimbursement will be
limited to the single rate for the room occupied.
4. Miscellaneous Hotel Charges
The Village will not reimburse employees for any hotel charges deemed to be personal.
These include parking fees, in-room movies, health club charges, etc. The Village will
reimburse for hotel parking charges if the use of a Village vehicle or rental car has been
preauthorized. Any meals charged to the room are to be considered personal expenses in
that the employee will be receiving a per diem for daily meals.
I. TAKE-HOME VEHICLES
Only those employees receiving authorization from the Village Manager may take Village-
owned vehicles home. These employees are to use Village-owned vehicles for business
purposes, commuting to and from work, and for occasional, incidental travel of short distance
(such as stopping at a store on the way home).
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The Village will consider the personal use of Village-owned vehicles, including travel to and
from home, a taxable fringe benefit as provided for in the Internal Revenue Code.
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CHAPTER 3- TRAVEL RULES AND REGULATIONS
A. Exhibit 1 - Conference/Seminar Attendance Request Form
B. Exhibit 2 - Employee Expense Report Form
C. Exhibit 3 - Current Per Diem Amounts and Transportation Stipends
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Exhibit 1
VILLAGE OF MOUNT PROSPECT
Conference/Seminar Attendance Request
Employee & Department:
Dates of Conference/Seminar:
to
Conference/Seminar Topic:
Sponsoring Organization:
Location:
Purpose:
Estimated Cost
Registration Fee:
Lodging:
Meal Expense (Per Diem):
- Bkfst @ $8.00
_Lunch @ $12.00
- Dinner @ $20.00
-or-
Per Diem - Daily Rate:
# of Days
Rate
Transportation:
Air Fare
Private Car
Miles at
Village Car
Miscellaneous:
Total Estimated Cost
Advance Requested
(Attach Check Request)
Date
Submitted By
Date
Authorized By
H :\M I SC\D i rector\Policies\ T ravel\forms. doc
Exhibit 2
VILLAGE OF MOUNT PROSPECT
Employee Expense Report
Employee & Department:
Dates of Conference/Seminar:
to
Conference/Seminar Topic:
Sponsoring Organization:
Location:
Expenses
Registration Fee:
Lodging:
Meal Expense (Per Diem):
- Bkfst @ $8.00
- Lunch @ $12.00
- Dinner @ $20.00
-or-
Per Diem - Daily Rate:
# of Days
Rate
Transportation:
Air Fare
Private Car
Miles at
Village Car
Miscellaneous:
Total Expense
Advance Received
<
>
Balance Due or <Refund>
Date
Submitted By
Date
H :\M ISC\Director\Policies\ T ravel\forms .doc
Authorized By
Exhibit 3
VILLAGE OF MOUNT PROSPECT, ILLINOIS
CURRENT PER DIEM AND TRANSPORTATION ALLOWANCE
AMOUNTS
Per Diem Meal Reimbursements
Breakfast
Lunch
Dinner
$8.00
$12.00
$20.00
Per Diem - Overnight Travel
Per Diem
$50.00
Reimbursement for Use of Personal Vehicle
Mileage Rate set by Internal Revenue Service - Recertify Each Year
Conference Transportation Stipends
Local Transportation $50.00
On-site Transportation $50.00
Revised: August 2004
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"t.
VILLAGE
OF
MOUNT PROSPECT
Purchasing Policies and Procedures Manual
Revised September 2004
TABLE OF CONTENTS
CHAPTER 1 - INTRODUCTION
A. Introduction/Statement of Policy
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CHAPTER 2 - GENERAL PURCHASING POLICIES
A. Purchasing Code of Ethics
B. Conflict of Interest Policy
C. Gifts and Gratuities - Village Guidelines for Accepting
D. Approval of Village Purchases
E. Competitive Bidding and Quotation Policy
F. Waiver of Competitive Bidding
G. Emergency Purchases Policy
H. Sole Source Purchases
I. Competitive Bidding Exemption
J. Joint Purchasing
K. Local Vendor Preference
L. Adherence to Budget
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CHAPTER 3 - MISCELLANEOUS PURCHASING POLICIES AND GUIDELINES
A. Disposal of Village Property
B. Purchases Near Year-end
C. Use of Sales Tax Exemption Number
D. Change Order Policy
E. Fixed Asset Policy
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CHAPTER 4 - COMPETITIVE BIDDING & REQUESTS FOR PROFESSIONAL SERVICES
A. When a Formal Bid Is Required
B. Preparing the Bid Document
C. Additional Requirements for the Bid Document
D. Bid Opening Requirements
E. Bid Lists
F. Requests for Professional Services
G. Contracts
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TABLE OF CONTENTS (cont.)
CHAPTER 5 - METHODS OF PAYMENT PROCESSING
A. Bill List Approval by the Village Board
B. Regular Purchase Orders
C. Changes to Existing Purchase Orders
D. Blanket Purchase Orders
E. Payment Directly from Invoices
F. Prepayments
G. Manual Checks
H. Petty Cash
1. Credit Card Payments
J. Check Requisitions
K. Prompt Payment Act
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CHAPTER 6 - GLOSSARY OF TERMS
A. Glossary of Terms
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CHAPTER 8 - EXHIBITS
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A. Exhibit 1 - Budget Transfer Form
B. Exhibit 2 - Sales Tax Exemption Letter
C. Exhibit 3 - Bid Invitation Package
D. Exhibit 4 - Instructions to Bidders - Equipment and Products
E. Exhibit 5 - Instructions to Bidders - Services and Projects
F. Exhibit 6 - Sample Bid Recommendation Memo
G. Exhibit 7 - Purchase Order
H. Exhibit 8 - Check Requisition Form
1. Exhibit 9 - Petty Cash Request Form
CHAPTER I - INTRODUCTION
A. Introduction/Statement of Policy
The purpose of this purchasing manual is to provide the Village of Mount Prospect officials and
staff with guidelines and directions for the acquisition of goods and services. When used with
good judgment and common sense, the policies and procedures conveyed herein will allow the
Village to obtain required supplies and services efficiently and economically.
The Village of Mount Prospect utilizes a decentralized purchasing process. Purchasing activities
(specification preparation, bid reviews, telephone quotation solicitation, and requisition
preparation) are the responsibility of the using department and must be conducted within policies
and procedures contained within this Purchasing Policies and Procedures Manual.
The manual is divided into sections dealing with purchasing policies and procedures. The policy
sections contain all the purchasing policies reviewed and recommended by the Village Manager
and adopted by the Village Board, which must be adhered to by Village employees. The
procedures sections provide a "how to" guide for processing purchase orders and other
procedures regarding payment processing.
Employees are expected to read and understand the purchasing policies and procedures manual.
This manual is designed to be a fluid document and will be modified from time to time to
conform to changes in legislation, technology, and actual practice. Although it may not answer
every question related to purchasing practices, it does provide general guidelines for purchasing
activities. Employees who need help dealing with specific situations not covered by the manual
should contact their department head.
The Village Manager, or his/her designee, shall be the final authority with regards to
enforcement of any of the provisions of this manual. Failure to follow the procedures outlined in
this manual may lead to disciplinary action in accordance with the provisions of the Village of
Mount Prospect Employee Personnel Manual.
Michael E. Janonis
Village Manager
Dated this - day of September 2004.
CHAPTER 2 - PURCHASING POLICIES
A. Purchasing Code of Ethics
All Village personnel engaged in purchasing and related activities on behalf of the Village shall
conduct themselves in a manner above reproach in every respect. Transactions relating to the
expenditure of public funds require the highest degree of public trust to protect the interests of
the Village and the residents of Mount Prospect. Village employees shall strive to:
1. Ensure that public money is spent efficiently and effectively and in accordance with statutes,
regulations, and Village policies.
2. Procure the item needed by the Village that when placed in use will represent the maximum
benefit and most economical cost for each dollar spent over the use or service life of the
item.
3. Consider cooperative purchasing with other local governments and/or with the state of
Illinois.
4. Not accept gifts or favors from current or potential suppliers, which might compromise the
integrity of their purchasing function.
5. Specify generic descriptions of goods wherever possible in lieu of brand names when
compiling specifications.
6. Not split purchase orders for identical or related goods or services to be received from the
same vendor in order to circumvent established policy.
7. Purchase without favor or prejudice.
8. Ensure that all potential suppliers are provided with adequate and identical information upon
which to base their offer or quotation and that any subsequent information is made available
to all bidders.
9. Establish and maintain procedures to ensure that fair and equal consideration is given to each
offer or quotation received.
10. Offer a prompt and courteous response to all inquiries from potential or existing suppliers.
It shall be the responsibility of the Village Manager to determine if a violation of this Code of
Ethics has occurred and if disciplinary action is necessary in accordance with the Village's
Employee Personnel Manual.
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B. Conflict of Interest Policy
Except as may be disclosed to and permitted by the Village Board, it shall be a breach of ethical
standards for any employee to participate directly or indirectly in the purchasing process when
the employee knows that:
1. The employee is contemporaneously employed by a bidder, vendor, or contractor involved in
the procurement transaction; or
2. The employee, the employee's partner, or any member of the employee's immediate family
holds a position with a bidder, offeror or contractor such as an officer, director, trustee,
partner or the like, or is employed in a capacity involving personal and substantial
participation in the procurement transaction, or owns or controls an interest in the company;
or
3. The . employee, the employee's partner, or any member of the employee's immediate family
has a financial interest arising from the procurement transaction; or
4. The employee, the employee's partner, or any member of the employee's immediate family is
negotiating, or has an arrangement concerning, prospective employment with a bidder,
vendor, or contractor.
The employee's immediate family shall be defined as a spouse, children, parents, brothers and
sisters, and any other person living in the same household as the employee.
It shall be the responsibility of the Village Manager to determine if a violation of this Conflict of
Interest policy has occurred and if disciplinary action is necessary in accordance with the
Village's Employee Personnel Manual.
C. Gifts and Gratuities - Village Guidelines for Accepting
Village personnel should be aware that offers of gratitude from vendors could be designed to
compromise objective judgment in product or service selection. Accordingly, it is Village policy
to observe the highest standards of ethics and to shield the employee, the Village, and the vendor
from any suggestion or appearance of conflict of interest.
No employee shall permit any influence by vendors which could conflict with the best interest of
the Village or prejudice the Village's reputation. Expenditures of Village funds to vendors shall
not by intention personally benefit any person officially connected with the Village. Employees
shall strive to follow the following guidelines:
1. Tangible gifts or gratuities shall not be accepted where their value suggests something more
than merely a social gesture. Such gifts should be returned with a statement of Village
policy. Promotional or advertising items of nominal value such as key chains, pens, coffee
mugs, calendars and holiday candy are acceptable. Gifts that are capable of being shared,
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such as a box of chocolates, shall. be shared within the office or section where the recipient
works.
2. Association with vendor representatives at business meals or business organization meetings
is occasionally necessary and is neither questionable nor unethical, provided the individual
keeps himself/herself free of obligation.
3. Personal loans of money or equipment are not to be accepted from a vendor or an individual
associated with a vendor doing business with the Village.
4. Solicitation of vendors for merchandise or certificates to serve as door prizes or favors is
normally prohibited. However, exceptions may be approved by the Village Manager.
5. Corporate discounts granted to Village employees are acceptable only if they are offered to
all Village employees and other corporate clients of the vendor.
If in any doubt about the propriety of accepting a gift, the matter should be referred to the
department head who will then, if necessary, discuss the matter with the Village Manager or
his/her designee.
In regards to gifts and gratuities, it is essential that all Village officials and staff conduct
themselves according to the State of Illinois Gift Ban Act, Chapter 5 ILCS Section 425 of the
Illinois Compiled Statutes.
D. Approval of Village Purchases
No employee shall purchase goods or services on behalf of the Village without first seeking
approval as required by this policy. All purchases shall require advance approval of the
appropriate individuals in accordance with the guidelines set forth below:
Dollar Limits
Under $1,000.00
Required Approvals
Department Head
$1,000.00 - $9,999.99
Department Head plus Director of Finance
$10,000.00 and above
Department Head plus Director of Finance plus Village Manager
plus Board of Trustees
Approval for purchases shall occur before the purchase is made, except in cases where the
purchase is deemed to be an emergency. In emergency purchases, the required approvals are to
be obtained as soon as reasonably possible. Any person responsible for approving purchases
may delegate their approval authority to a designee in the event they are unable to approve
purchases.
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-
E. Competitive Bidding and Quotation PoíŒy'{i- ',' . - , -
Whenever possible, all purchases are to be based upon competitive bids or quotes in order to
obtain the highest quality service, commodity or material at the lowest possible price. The
following guidelines are to be followed in determining how many bids or quotes are required:
Purchase Amount
Under $1,000.00
Bidding and Quotation Requirement
At least two competitive quotes recommended, but not required.
$1,000.00 - $3,999.99
Two quote minimum, three quotes preferred. Verbal quotes are
acceptable.
$4,000.00 - $9,999.99
Two quote minimum, three quotes preferred. Quotes must be
written.
$10,000.00 and above
Formal, advertised bidding process required. Village Board
approval required.
Requisitions submitted without the required quotes or a satisfactory explanation as to why quotes
were not obtained (e.g. sole source, emergency, standardized vendor etc.) will be returned to the
originator without approval.
The splitting of a purchase into two or more purchase requisitions for the purpose of avoiding
competitive quotes or the bidding process is an express violation of this policy. The unlawful
stringing of bids for the purpose of evading the bidding requirements is a violation of state
statute (720 ILCS 5/33E-18), and is a Class 4 felony.
Items purchased more than once during a fiscal year (e.g. forms, copier supplies, etc.) do not
need quotes every time a purchase is made. However, competitive quotes for these items shall
be sought at least once each year to ensure that vendors are competitive.
F. Waiver of Competitive Bidding
The Village Board, by a two-thirds vote of all the Trustees then holding office, may waive the
bidding procedures and enter into a contract or agreement. Requests for bid waivers shall be
made only when goods or services are proprietary (i.e. sole source), where standardization is
necessary or desirable (e.g. furniture), in emergencies as defined in this manual, or when it is in
the best interests of the Village to do so. In any instance, a statement justifying the need for a
bid waiver shall be included in the department's recommendation.
G. Emergency Purchases Policy
Emergencies are defined as events that could not have been foreseen where immediate action is
necessary to safeguard the public's health and safety, and prevent excessive delays in work,
contracts, and/or transportation. In the event of an emergency, a department head or his/her
5
designee may authorize a vendor to perform work necessary to resolve such emergency without
formal bid solicitation. If the emergency and the need for immediate action result in an
expenditure of $10,000 or more, documentation shall be presented to the Village Manager prior
to such authorization.
Emergency purchases of $10,000 or more shaH be presented to the Village Board for approval in
a reasonable period of time following resolution of the crisis.
Within one business day of procuring the emergency purchase, the department head shall ensure
that a purchase order is generated for the item. The purchase order description should clearly
indicate that this is a "confirming order".
H. Sole Source Purchases
Contracts for parts, supplies, or equipment that are available only from a single source are
referred to as sole source purchases. Sole source procurements may arise from the following
circumstances:
1. Equipment for which there is no comparable competitive product or is available only from
one supplier.
2. Public utility services from natural or regulated monopolies.
3. A component or replacement part for which there is no commercially available substitute,
and which can be obtained only from the manufacturer.
4. An item where compatibility is the overriding consideration, such as computer software.
5. A used item that becomes immediately available and is subject to prior sale.
These items shall not be subject to the requirement of seeking competitive quotes or bids.
However, sole source purchases of $10,000 or more shall be presented to the Village Board prior
to acquisition with a request to waive bids, approve the purchase, and enter into a formal
contract.
I. Competitive Bidding Exemption
When, in the ordinary course of Village business, no single purchase of, or individual contract
for specific types of supplies, materials, or services exceeds $10,000, but the total dollar value of
all purchases and/or contracts for said specific types of supplies, materials, or services during the
Village's fiscal year does exceed said amount, said purchases may not be subject to the
competitive bidding requirement and may not require the Village Board to waive the competitive
bidding requirement. At his/her discretion, the Village Manager shall determine whether these
purchases require Village Board approval of a waiver of bids. Where a bid waiver is determined
to not be necessary, said purchases shall still be subject to the requirements of Chapter 2, Section
E of this manual concerning quote solicitation for purchases under $10,000.
6
It is not the intent of this subsection to ehëoúragethë circumvention of the bidding requirements
and, to the extent practicable, Village staff is encouraged to rely upon the competitive bidding
process. Rather, the competitive bidding exemption provided by this section is intended to
recognize and address those situations in which. a- competitive bidding requirement is not
necessarily practicable, and can be eliminated without jeopardizing the Village's ability to obtain
a low and competitive price from a qualified responsible contractor/vendor.
J. Joint Purchasing
State of Illinois
The State of Illinois Joint Purchasing Program was established by State Statute (30 ILCS 525/2).
The program is administered by the Procurement Services Division of the Illinois Department of
Central Management Services.
Appropriate Village employees are authorized to obtain goods and services using the State of
Illinois Joint Purchasing program. When available through the State program, it is not necessary
for Village employees to obtain quotes or to competitively bid the goods or services that are
sought. Employees shall be responsible, however, for ensuring that the goods or services are of
a quality sufficient to meet the Village's needs and that pricing is competitive.
When making purchases using the State's assigned vendor, purchase requisitions are submitted
to the vendor directly and shall include the State of Illinois contract number and the Village's
assigned Joint Purchasing member 1.0. number (L 3720-00) on the purchase order.
Purchases through a Joint Purchasing Program in an amount of $10,000 or more still require
Village Board approval as set forth in Section D.
Other Units of Government
Employees are permitted to purchase items jointly with other units of government or with the
Northwest Municipal Conference when the price of the goods or services sought is competitive
and the quality meets the Village's standards. Prior to initiating the transaction, employees shall
seek the appropriate approvals as set forth in Section D of this purchasing policy.
K. Local Vendor Preference
The Village of Mount Prospect will strive to give vendors located within the Village's
boundaries an opportunity to submit quotes or bids for services, commodities, or equipment if
they are competitive in price and quality. The Village will not, however, pay a higher price to a
vendor located in Mount Prospect for a comparable product or service offered by a vendor
located outside the Village's corporate boundaries at a lower price.
L. Adherence to Budget
Village employees and officials shall not purchase goods or services unless there are adequate
funds budgeted within the currently approved budget. The level of budgetary control is
7
- -'------..-'-'----.---...----.--------" '-'-
established at the department level within each fund. Department heads shall not expend funds
in excess of the amounts budgeted for their department within each operating or capital fund. If
under extraordinary circumstances the department head finds it necessary to exceed the budget
established for his or her department, a memorandum shall be sent to the Director of Finance
requesting a budget amendment. The Director of Finance shall obtain Village Manager approval
prior to requesting the Village Board amend the current budget.
In the event that circumstances require a department head to exceed a specific line-item budget
by an amount in excess of 10%, he or she shall request a line-item budget transfer using the
appropriate budget transfer form (Exhibit 1). The budget transfer form shall be forwarded to the
Director of Finance for approval.
Department heads shall not charge purchases to improper expenditure accounts in order to stay
within the approved budget.
8
"
'...,:.
CHAPTER 3 - MISCELLANEOUS PURCHASING POLICIES & GUIDELINES
A. Disposal of Village Property
Property owned by the Village may be sold or otherwise disposed of when such personal
property is no longer necessary or useful to the Village. Village property of value may not be
sold or traded without prior approval of the Village Board. The Director of Finance may
authorize the disposal of Village property if the value of such property does not exceed $100.
All proceeds from the sale or trade-in of Village owned property is to be forwarded to the
Director of Finance for deposit into Village accounts.
B. Purchases Near the End of the Fiscal Year
When purchases are made near the end of the fisc:Cil. year (i.e. December 31), departments shall
be responsible for ensuring that they are expensed (Le. charged) against the fiscal year in which
the goods or services were received. The date goods are received or services are performed
determines which fiscal year they are expensed against. This is true regardless of when the
purchase requisition is processed or the purchase order is issued.
C. Use of Sales Tax Exemption Number
1. Use by Employees
Village purchases are not subject to sales tax, therefore, employees shall make efforts to inform
vendors of the Village's tax-exempt status and to ensure that sales tax is not paid for purchases
made with petty cash or credit cards. Employees shall provide vendors who request them with a
sales tax exemption form signed by 'the Director of Finance (Exhibit 2-1). Sales tax exemption
letters may be obtained from the Accounts Payable Clerk in the Finance Department.
Use of the Village's sales tax exemption number is restricted to purchases made on beba1fofthe
Village. State law prohibits use of the Village's sales tax exemption number to secure
exemptions for personal reasons and such use will subject the responsible individual and all
guilty parties to a fine of not more than $10,000 or to imprisonment for not more than five years
or both, together with costs of prosecutions.
2. Use by Outside Contractors or Vendors
The Illinois Department of Revenue regulations allow contractors to use the Village's sales tax
exemption number to purchase materials used in construction of public improvements, which
will be eventually dedicated to the Village. Use of the exemption number is limited to
purchases directly related to work being done on behalf of the Village. Contractors are
responsible for any tax due on purchases determined to be non-exempt and for purchases not
made on the Village's behalf.
9
--"
Requests by contractors for the Village's sales tax exemption number shall be forwarded to the
Director of Finance. In order to obtain the number, the contractor shall be required to complete
and submit to the Village a sales tax exemption request letter and a material and estimated
quantities worksheet. After these documents have been received and approved, the Village will
provide the contractor with a sales tax exemption certificate.
D. Change Order Policy
Village Manager and Village Board approval is required for all change orders of $10,000 or
more and for all change orders which, when combined with those previously approved, increase
or reduce the contract price by more than $10,000. The following financial policy is consistent
with this statute.
It shall be the responsibility of each department head to ensure that all applicable change orders
are submitted to the Village Board for approvaL In addition, department heads shall be
responsible for monitoring all contract payouts and retainages and ensuring that the amount of
the change order is correct.
In special circumstances a change order requiring Village Board approval may be authorized by
the Village Manager or his/her designee prior to being placed on the Village Board agenda.
After receiving authorization, however, the department, following the requirements outlined
above, shall place the change order on the Village Board's agenda.
Prior to approving a change order or series of change orders which authorize or necessitate an
increase or decrease in either the cost of a public contract by a total of $1 0,000 or more or the
time of the completion by a total of 30 days or more the employee or official shall first present to
the Village Board a determination in writing that (1) the circumstances said to necessitate the
change in performance were not reasonably foreseeable at the time the contract was signed, or
(2) the change is germane to the original contract as signed, or (3) the change order is in the best
interest of the Village. To fail to do so the employee or official commits a Class 4 felony. The
written determination and the written change order resulting from that determination shall be
preserved in the contract's file which shall be open to the public for inspection.
B. Fixed Asset Policy
A fixed asset policy is herein established to ensure compliance with governmental financial
reporting standards and to safeguard Village assets.
Fixed assets shall include land, buildings, machinery, equipment and vehicles with a life
expectancy of one year or more. To be included in this definition, the capitalization threshold of
the asset or minimum value of the asset at the time of acquisition is established at $5,000.
General infrastructure such as roads, sidewalks and storm sewers shall be capitalized utilizing a
threshold of $1 0,000.
10
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.
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Responsibility for control of fixed assets restS witIl the operating department wherein the asset is
located. The Director of Finance shall ensure that such control is being maintained by
establishing a fixed asset inventory that is updated on a regular basis and which documents all
additions and deletions to the fixed asset inventory. Operating departments shall report the
disposal or relocation of a fixed asset promptly to the Director of Finance or his/her designee.
Assets acquired during the year shall be recorded as an expenditure against the appropriate
capital expenditure account, which shall be used for financial reporting purposes.
Assets shall be recorded in the fixed asset inventory by using an appropriate description and by
recording serial numbers where applicable. Tagging of all assets will not be required.
Assets not capitalized under this policy but which, in the opinion of the Director of Finance may,
in the aggregate, account for a substantial asset group, shall be inventoried by the appropriate
operating department by means or system suitable for maintaining control of the assets.
Departments shall maintain separate detailed fixed asset inventory records for those capital
assets falling below the capitalization threshold when the nature 9f th()se assets warrants close
oversight and control. Examples include firearms, computers, fire hose, and chainsaws.
11
CHAPTER 4- COMPETITIVE BIDDING AND REQUESTS FOR PROFESSIONAL SERVICE
A. When a Formal Bid Is Required
All purchases of goods or services exceeding $10,000 shall be subject to the competitive bidding
process and shall be let, by free and open competitive bidding after advertisement, to the lowest
responsible bidder or any other bidder whom the Village Board deems to be in the best interest
of the Village. Sealed bids shall be sought when goods or services are anticipated to cost more
than $10,000.
B. Preparing the Bid Document
1. It is the responsibility of the respective department to prepare the specifications for the
item(s) to be bid along with any other documents needed to complete the bid invitation
package (Exhibit 3).
2. All bid documents must contain the following information:
. Cover Letter
.
Instructions to Bidders (Exhibit 4 or Exhibit 5)
. Notice of Bid
. Bid Proposal Form
.
Bid Certification Form
.
General Terms, Conditions and Instructions
.
Specifications of the item/service
3. The department head shall determine a bid opening date. The bid opening date must be
at least ten days and not more than forty-five days after the published notification date.
4. The department head is responsible for placing a legal notice concerning the bid in a
local newspaper of general circulation at least ten days prior to the bid opening.
5. The department head shall send bid invitations to all known responsible vendors on the
bidders list for the particular item, as well as to any other prospective bidders the
department head deems qualified and competitive. Bid documents should not be mailed
to bidders before the notice of bid ad is placed in the newspaper. This will help ensure
that all prospective bidders have the same amount of time to complete the bid document.
6. The Instructions to Bidders shall specify that all submitted bids are to be sealed and
delivered/mailed to the department preparing the bid documents.
12
-
." .
.
'-'"
- .
7. The Instruction to Bidders shall specify that each submitted bid is to include a
certification by the prime contractor that the prime contractor is not barred from
contracting with any unit of State or local government as a result of a violation of either
the State's bid-rigging law (720 ILCS 5/33E-3) or the bid rotating law (720 ILCS 5133E-
4)
8. The department head shall determine if a pre-bidders conference meeting is to be held to
explain to all potential bidders the purchase or project, the bidding requirements, and any
other information the potential bidders might need to submit a qualified bid. Ideally, the
notification of the pre-bidders conference will be included with the bid invitation
package. This notification should indicate the date, time and location of the conference
and who from the Village will be in attendance. The conference should be held early in
the bidding process, leaving vendors ample time to submit their bid. A sign-in sheet
should be available at the pre-bidders conference for all attending vendors to sign.
9. Departments shall not provide anyone or more potential bidders with material
information relative to the purchase or project without providing the same information to
all vendors that requested bid documents. Any Village employee or official who
knowingly conveys, directly or indirectly, outside of the publicly available invitation to
bid, pre-bid conference, or solicitation for contracts procedure, to any person any
information concerning the specifications for such contract or the identity of any
particular potential subcontractor, when inclusion of such information in the bid would
influence the likelihood of acceptance of such bid or offer, commits a Class 4 felony. It
is not a violation of law to convey information intended to clarify plans or specifications
regarding a public contract where such disclosure of information is also made generally
available to the public and those companies that requested a bid document package.
10. An employee or official who, either directly or indirectly, knowingly informs a bidder or
offeror that the bid or offer will be accepted or executed only if specified individuals are
included as subcontractors commits a Class 3 felony.
11. Any employee or official who knowingly awards a contract based on criteria which were
not publicly disseminated via the invitation to bid, the pre-bid conference, or any
solicitation for contracts procedure, commits a Class 3 felony.
C. Additional Requirements for the Bid Document
1. A bid bond, cashier's check, certified check, or other approved security in an amount
equal to 10% of the bid should be required to be submitted at the time bids are due to
guarantee the successful bidder will sign a contract when the Village deems it necessary.
2. When preparing the bid document, departments should consider whether to require
contractors to provide a performance bond if awarded the contract. In instances where
the bid is for construction services or significant building improvements, it is customary
to require the contractor to provide a performance bond. A performance bond, issued by
13
a surety company, stipulates a legal, written obligation to guarantee 100% payment for
any financial loss caused by default of the contractor. When assigned to the Village of
Mount Prospect, it grants an assurance as to the performance and successful completion
of the terms of the contract and assures payment of the taxes, licenses, or assessments
associated with the contract. The contractor shall provide the performance bond within
ten (10) calendar days of award of the bid. Bonds required to guarantee performance
shall be in a form acceptable to the Village and shall provide that they shall not terminate
on completion of the work, but shall be reduced to ten percent (10%) of the contract sum
upon the date of final payment by the Village for a period of one (1) year to cover a
warranty and maintenance period which Contractor agrees shall apply to all material and
workmanship for one (1) year from the date of issuance of the final payment by the
Village.
3. During the term of the contract, the contractor shall provide the Village with a certificate
of insurance. The limits of liability shall be specified in the bid document's General
Terms and Conditions and shall include comprehensive general liability, auto liability,
professional liability (required only where contracts are for professional services),
workers compensation (the policy shall include a 'waiver of subrogation'), and umbrella
coverage.
4. The aforementioned insurance requirements shall be fulfilled by the contractor by
maintaining insurance policies which name the Village, its officers, agents, employees,
representatives and assigns as additional insureds. The contractor shall furnish to the
Village satisfactory proof of coverage by a reliable company or companies, before
commencing any work. Such proof shall consist of certificates executed by the
respective insurance companies and filed with the Village together with executed copies
of an "Additional Insured Endorsement" form. Said certificates shall contain a clause to
the effect that, for the duration of the contract, the insurance policy shall be canceled,
expired or changed so as to the amount of coverage only after written notification 30
days in advance has been given to the Village. In addition, said certificates shall list the
Village and its officers, agents and employees as additional insureds on all required
insurance policies except the policy for professional liability.
D. Bid Opening Requirements
1. The Village Manager's Office shall receive all sealed bids. Any bids submitted that are
not sealed shall not be accepted and shall be returned to the vendor. All bids are to be
date and time stamped upon receipt. All eligible bids must be received before the
deadline on the day of the bid opening. Sealed bids are not to be opened by the Village
prior to the published bid opening date and time; to do so is to commit a Class 4 felony.
Any employee who knowingly discloses to any interested person any information related
to the terms of a sealed bid commits a Class 3 felony.
2. All formal bid openings are to be conducted by the Village Clerk or his/her designee and
at least one other village representative on the scheduled bid opening date and time.
14
3. A designated department employee shall review the post bid process with those vendors
in attendance at the bid opening.
4. Upon opening the bids, a designated department employee shall provide the vendors in
attendance at the bid opening the name of each vendor submitting a bid and their
submitted price.
5. After the bid opening, the department head shall prepare a bid tabulation and review all
bids for compliance with the bid specifications. The department head shall then forward
to the Village Manager a memorandum summarizing the bid results and his or her
recommendation. This memorandum shall take the form shown in Exhibit 6. The
responsible employee shall analyze the bid results and recommend which company
should be awarded the bid. The recommendation should be based on the following:
a) The lowest responsible bid.
b) The ability, capacity, and skill of the bidder to perform the contract to provide the
service required.
c) Whether the bidder can perform the contract or provide the service promptly, or
within the time specified, without delay or interference.
d) The character, integrity, reputation, judgment, experience, and efficiency of the
bidder.
e) The quality of performance of previous contracts of services.
f) The previous and existing compliance by the bidder with laws and ordinance relating
to the contract or service.
g) The sufficiency of the financial resources and ability of the bidder to perform the
contract or provide the service.
h) The quality, availability, and adaptability of the supplies or contractual service to the
particular use required.
i) The ability of the bidder to provide future maintenance and service for the use of the
subject of the contract.
j) The number and scope of conditions attached to the bid.
k) Whether the bidder has a place of business in the Village.
1) Responsiveness to the exact requirements of the invitation to bid.
15
m) Ability to work cooperatively with the Village and its administration.
n) Past records of the bidder's transactions with the Village or with other entities as
evidence of the bidder's responsibility, character, integrity, reputation, judgment,
experience, efficiency and cooperativeness.
6. Upon concurrence of the bid recommendation by the Village Manager, the bid award
recommendation will be forwarded to the Village Clerk to be placed on the agenda of the
next scheduled Village Board meeting.
7. Following the acceptance of the bid and awarding of a contract by the Village Board, the
department head shall notify the successful bidder of the Village Board's approval. The
department head shall also notify the unsuccessful bidders of the results.
8. The department head shall then initiate a purchase order for the purchase.
9. The department head shall retain the originally submitted bids for a period of not less
than ten years.
10. Within fourteen (14) days following Village Board approval of the contract, the issuing
department will contact the successful bidder to have the Village's contract signed and to
obtain performance bonds and certificates of insurance when required. The signed
contract will be forwarded to the Village Clerk for safekeeping after it is received.
11. Signed contracts, certificates of insurance and performance bonds must be obtained from
the contractor before work begins. It is the responsibility of the applicable department to
ensure that the Village's contract has been signed, and certificate of insurance and
performance bond obtained before work begins.
12. The issuing department shall be responsible for handling bid deposits. The bid deposit of
the accepted bidder is to be returned only after acceptance by the Village of a satisfactory
performance bond where such bond is required or completion of contract where no
performance bond is required. The remaining bid deposits of each contractor should be
returned after the Village Board has awarded the contract.
E. Bid Lists
Each department shall be responsible for maintaining a current list of bidders and for
determining prospective bidder's qualifications for goods and services they might require.
Requests to be placed on the bid list received by the Finance Department shall be forwarded to
the appropriate individuals or departments for consideration. When developing the list of
bidders, all relevant vendors within the Village of Mount Prospect will be given every
opportunity to compete for the Village's business.
16
-"...,
F. Requests for Professional Services
Some contracts, by their nature, are not adapted to award by competitive bidding. These
contracts generally result from a request for proposal (RFP). A request for proposal is utilized
when professional services are being sought such as engineering, legal, audit, or consulting
serVIces.
Essentially, all of the procedures that apply to sealed bids also apply to the request for proposal.
The specifications, however, are written around performance standards rather than a description
of a good. Whereas the bidding process begins with the issuance of a bid invitation package for
the sealed bid process, the request for proposal is issued for professional services.
The originating department should follow all of the procedures listed on pages 12 - 18 of this
policy document when professional services are being bid. A pre-proposal conference may be
substituted in the place of the pre-bidders conference and follows the same guidelines as
explained on page 13.
When seeking approval from the Village Board, a guideline should be submitted to the Board
indicating the criteria used to qualify the prospective professionals. The criteria used can be past
projects of comparable size, number of years in the profession, number of qualified and/or
licensed staff on the project team, references of past clients, and Village staff site visits.
G. Contracts
After the bidding process is completed and the Village Board approves the purchase of the goods
or services, which were bid, the originating department issues a purchase order and/or a contract
to be executed by the successful bidder. A contract is a legal obligation of the Village and must
be on terms acceptable to the Village Board. In order to make certain the contract provisions as
set by Village staff and the vendor are in the best interests of the Village and are legally accurate,
the department head should provide a copy of all proposed contracts to the Village Attorney for
review. After review by the Village Attorney, the contract is forwarded to the Village Manager
for his signature or the signature of the Mayor.
The originally signed contract is routed to the Village Clerk for filing. The Village Clerk's
office retains all original contracts for the Village of Mount Prospect. If the vendor requires an
originally signed contract as well, two documents should be executed. The originating
department should retain a copy of the contract for future reference.
17
CHAPTER 5 - METHODS OF PAYMENT PROCESSING
A. Bill List Approval by the Village Board
The final step in the purchasing process involves the payment of invoices for goods or services
received and accepted. The Village Board generally meets on the first and third Tuesdays of
each month. It is at these meetings that the bill lists are approved. The Finance Department is
responsible for generating a report listing all bills to be paid. If the Village Board approves the
bill list, the payments are mailed or are ready for pick-up the Wednesday following the Village
Board meeting.
To insure a check is cut for any given bill list (the 1 st and 3rd Tuesday of each month), the request
must generally be submitted to the Accounts Payable Clerk no later than the Friday falling nine
days prior to the board meeting date.
B. Regular Purchase Orders
Generally, all purchases shall require the issuance of a regular purchase order (Exhibit7) to the
vendor before an order for goods or services is filled. The exceptions are purchases processed
with a blanket purchase order (see description below) and purchases totaling $500 or less. No
employee shall have the authority to purchase items on the Village's behalf without first
submitting a purchase requisition request and obtaining the required approvals from supervisory
staff or the Village Board where applicable.
C. Changes To Existing Purchase Orders
After a purchase order is issued to the vendor it may become necessary to make changes to the
quantity, price, shipping cost, account number, etc. When this occurs, the department submits an
amended purchase order request through the purchasing software module. Sometimes because
of minor price variation and/or shipping costs, the amount of the purchase order will not be
identical to the invoice amount. Approval of the invoice amount will override the purchase order
amount as long as appropriate signatures are obtained.
Change orders where the original contract was for $10,000 or more, or where the change order
increases the total cost to $10,000 or more, require Village Manager and Board approval.
D. Blanket Purchase Orders
Blanket Purchase Orders are intended to give employees flexibility when purchasing items for
less than $1,000. Orders exceeding $1,000 shall be processed using a regular purchase order.
In instances where a blanket purchase order has been issued to a vendor, it is not necessary to
process a separate purchase order in advance of obtaining the goods or services. The receipt
18
and/or packing slip shall be sent to the Accoùriis Payable Clerk. When the invoice is received,
they are attached and sent to the designated department for approval.
The following is a partial list of the commodities and services that can be purchased through a
blanket purchase order arrangement:
. auto and truck parts
. batteries (automotive, truck, flashlight and barricade)
. bituminous surface materials, cold patch, seal coating
. chlorine and phosphate
. forestry and agriculture supplies
. gasoline and diesel fuel
. hardware items
. landscaping materials
. lubricants
. lumber
. office supplies
. painting supplies
. sod and top soil
. tires, tubes and front end alignments
. trees
. uniforms
. welding gases
E. Payment Directly from Invoices
There are some bills that can be paid directly from invoices received without the issuance of a
purchase order. Generally, these are for on-going expenditures where little or no choice of
vendors exists. Examples include utility bills, newspaper subscription renewals, insurance
payments, debt service payments, and renewal dues for professional organizations. In this case,
the Accounts Payable Clerk sends the invoice to the designated department, where the
appropriate authority assigns an account number and approves.
F. Prepayments
The Village will not pay for goods and services until the goods are received or the service is
rendered.
Exceptions:
1. Deposits on contracts approved by the Village Board.
2. Memberships and books or periodicals.
3. Payments to local, State, and Federal government entities.
19
4. Service and maintenance contracts where necessary.
5. Small orders (under $500.00) where the department head approves prepayment.
6. Prepayments approved by the Director of Finance or Village Manager.
G. Manual Checks
Manual checks are interim checks issued between normal accounts payable cycles when an
emergency or other extenuating circumstance as determined by the Director of Finance makes it
impractical or unreasonable to wait until Village Board approval. Since the issuance of manual
checks circumvent Village Board approval and are labor intensive and time consuming to issue,
this method of payment shall be restricted to unique or special circumstances.
All requests for manual checks must be processed by completing a check requisition form
(Exhibit 8). The completed form shall include the vendor's name and address, the account
number against which the payment is being charged, a description of the item purchased, and an
explanation in the remarks section as to need for the check. The form shall also include the
signature of the applicable department head. The check requisition form needs to be marked for
a "manual" or "ASAP" check. Completed forms shall be submitted to the Director of Finance
for approval.
The Department of Finance will not issue manual checks in instances where reasonable means
could have been taken to process the payment following normal payment methods.
H. Petty Cash
This policy sets forth procedures for the handling of petty cash monies at the Village Hall,
Police, Public Works, and Fire Departments. It further establishes the procedures for reporting
petty cash disbursements by department to the Department of Finance as well as reimbursements
to each petty cash box.
Petty cash boxes are located in the Village Manager's Office, the Finance Department, Police
Department, Public Works Building, and Fire Department. Each department head is responsible
for designating an individual accountable for petty cash in their possession. They are
responsible for seeing that the total value of receipts and cash on hand equal the amount of petty
cash established. The Petty Cash box is subject to audit (Section 2f) and the department heads
will be accountable for any non-compliance with these procedures and any shortage of funds.
The following policy and procedural guidelines have been established to promote a more
efficient and accountable petty cash operation. All departments within the Village are
responsible for abiding by this policy.
20
"' -. . , .
'. ".
1.
Petty Cash Disbursements to Employees
a.
Requests for petty cash may be made to the representative responsible for administering
the petty cash in each department.
b.
There is a $50 limit per petty cash request per day. Any amount above $50 must be
reimbursed via a check requisition submittal through the accounts payable process.
Reimbursable expenses under $50 incurred by an employee for training expenses, etc.
should be reimbursed from petty cash rather than through the accounts payable process.
c.
No one is allowed to take money from petty cash without a petty cash request form
(Exhibit 9) signed by the appropriate supervisor. The employee who will receive the
money must also sign the petty cash request form.
. If a petty cash request form is submitted without a receipt (e.g. money is requested
before a receipt has been obtained), the person disbursing the money will mark the
receipt form for the amount given out. When the employee brings back a receipt after
the money is spent, along with the change (if applicable), the proper dollar amount is
recorded. The receipt will then be attached to the petty cash request form and placed
in the petty cash box.
. If a receipt is submitted with the petty cash request form, the employee is reimbursed
and no further action by the employee is needed. At this time, the petty cash request
form is put in the petty cash box.
. All receipts must be original. If desired, copies may be made and kept by the
employee, but the original is given to the respective person responsible for petty cash
in each department.
.
If for some reason the employee did not obtain a receipt for submittal with the petty
cash request form, supervisory approval must be noted on the petty cash receipt form.
d.
All petty cash request forms must contain the following information:
.
Date
.
Detailed description of the expenditure
.
Name ofperson(s) to receive money
.
Name of person authorizing receipt of money (must be a supervisory employee
specifically designated by the department)
.
Account number to which the expenditure will be charged and receipt
21
-.. -- -. ""-"__m-
2.
Reimbursing Each Petty Cash Box
a. The persons responsible for the various petty cash boxes not only disburse petty cash to
various employees, they must reconcile the petty cash box and request petty cash
reimbursements as needed.
b. The amount of petty cash allotted to each department will be determined by the Director
of Finance based upon average petty cash disbursements.
c. Departments shall submit petty cash reimbursement requests on an as needed basis to the
Finance Department. However, reimbursement requests should generally not exceed two
per month.
The petty cash reimbursement request shall contain the following information:
.
Detailed list of account numbers
.
Total amount of charges for each account number
.
All original petty cash request forms and corresponding receipts
.
A completed and signed check request form
d. Once the petty cash reimbursement request is reviewed and processed, the Finance
Department will forward to the department head a check for petty cash reimbursement.
The check is then cashed at the bank and the money is forwarded to the respective
department rep(~sentative to reimburse their petty cash box.
e. The envelope with the petty cash request forms and receipts is then attached to the file
copy of the check that was cut for reimbursement and is stored with the accounts payable
files in the Finance Department.
f.
Petty Cash will be subject to periodic announced and unannounced audits to determine
compliance with these procedures. Any discrepancies with compliance or cash balance
shall be immediately reported to the Director of Finance.
I. Credit Card Payments
The Village has provided certain department heads and deputy directors with a corporate credit
card for use in making purchases. Each individual is responsible for the security of the card and
should not permit its use for means other than those permitted by this policy. Credit card use
shall be limited to the purchase of items under $500 (excluding payment of travel expenses)
where a purchase order cannot be used (e.g. airline reservations, restaurants etc.). Credit cards
shall not be used to circumvent the normal payment process.
22
As with all purchases made on the Village's bèhalf, goods purchased with a credit card are
exempt from sales tax. Therefore, employees shall provide the vendor with a sales tax
exemption form in order to avoid being charged sales tax.
When credit card invoices are received, they should be processed as soon as possible to avoid
late fees and finance charges. Receipts for goods or services purchased with a credit card shall
be obtained and submitted to accounts payable when requesting payment. If a receipt is not
issued, a packing slip may be provided to accounts payable. Payment will not be made unless
receipts (or an explanation as to why receipts are not available) are included with the credit card
statement.
The Finance Department shall maintain a list of the credit cards issued to each employee and
shall request that they be returned prior to termination of employment. Returned cards shall be
forwarded to the Director of Finance or his/her designee and shall be canceled.
J. Check Requisitions
Purchase orders are the preferred method of payment for most Village transactions. However,
when purchase orders are not utilized, check requisitions (Exhibit 8) should be used for payment
processing. Check requisitions require the signature of a Department head and the Director of
Finance. Invoices or receipts are to be attached to check requisition forms. Check requisitions
should contain the following information; name and address of vendor, description of goods or
services received, amount to be paid, account number to be charged, invoice number and invoice
date (where applicable) and the date the requisition was submitted.
K. Prompt Payment Act
The Illinois Prompt Payment Act (50 ILCS 505) provides that the appropriate local government
official receiving goods or services must approve or disapprove a bill from a vendor or
contractor for goods or services furnished the Village within thirty (30) days after the receipt of
such bill or within thirty (30) days after the date on which the goods or services were received,
whichever is later. Written notice is to be mailed to the vendor or contractor immediately if a
bill is disapproved.
Any bill approved for payment is to be paid within thirty (30) days after the date of approval. If
payment is not made within such 30 day period, the vendor may invoice the Village for an
interest penalty of 1 % of any amount approved and unpaid for each month or fraction thereof
after the expiration of such 30 day period, until final payment is made.
If the local government official whose approval is required for any bill fails to approve or
disapprove that bill within the thirty day period provided for above, the vendor may invoice the
Village for an interest penalty of 1 % of the outstanding bill computed from the date sixty (60)
days after the receipt of that bill or the date sixty (60) days after the goods or services are
received, whichever is later. Department heads are charged with the responsibility of ensuring
compliance with the approval requirement.
23
CHAPTER 6 - GLOSSARY OF TERMS
"'"
A. Glossary of Terms
1. Addenda are written or graphic instruments issued prior to the time of bid opening, which
modify or interpret the Bid Documents by additions, deletions, clarifications, or
corrections.
2. Alternate Bid is a bid that deviates from set specification and offers or proposes another
way of accomplishing the same.
3. Approval means the process of Village authorization of an action prior to its execution.
4. An Award is the acceptance of a bid proposal, which results in the presentation of a
purchase agreement or contract to a bidder.
5. A Bid is a complete and properly signed proposal to provide the commodities or services
or designated portion thereof for the sums stated therein, submitted in accordance with
the Bid Documents.
6. A Bid Bond is an insurance agreement in which a third party agrees to be liable to pay
the Village a certain amount of money in the event the Bidder awarded the Contract does
not execute the Contract Documents, or furnish any required Performance Bond. The
Bond is given to the Village at the time of Bid submittal.
7. A Bid Deposit is a sum of money or guaranteed check deposited with and at the request
of the Village guarantee that a Bidder (depositor) awarded the Contract will execute the
Contract, furnish any required Performance Bond, and proceed with performance. The
Bid Deposit is given to the Village at the time of Bid submittal and released when
Performance Bond is received.
8. A Bidder is an individual, firm, or corporate entity submitting a bid (proposal).
9. Bid Documents include the advertisement or invitation to bid, instructions to bidders, the
bid form, other sample bidding and contract forms, and the proposed Contract
Documents including all Addenda issued prior to receipt of bids.
10. A Capital Project is a facility construction or modification project or a road and bridge
project approved by the Village Board as part of the Capital Improvement Program.
11. A Change Order is a written change to the Contract signed by the contractor, the Village
and, where applicable, the consultant; issued after execution of the Contract, authorizing
a change in the work or an adjustment in the contract sum or the contract time.
24
. -
.
.
- .'"" .'. -U--.'"
.
12. Commodity is an article of trade, afuôvâblë article of value, something that is bought or
sold, or any movable or tangible thing that is produced or used as the subject of barter or
sale. Goods, materials, supplies, and equipment are commodities.
13. A Contract to be valid and enforceable must contain four basic elements: 1) agreement
(meeting of the minds) resulting from an offer and acceptance. (2) consideration, or
obligation; (3) competent parties; and (4) a lawful purpose.
14. The Contract Documents consist of the owner-contractor agreement, the conditions of the
Contract (general, supplementary, and other conditions), any drawings, the specifications,
and all addenda issued.
15. An Emergency Purchase is a purchase of commodities or services necessitated by
breakage, damage, or decay, or when the public interest would suffer by delay, which is
made without following the normal purchasing procedure.
16. The Evaluation of a Bid is the process of examining a bid after opening to determine the
bidder's price(s), responsibility, responsiveness to requirements, and other characteristics
of the bid.
17. A Formal Bid is a bid, which must be forwarded in a sealed envelope and in conformance
with a prescribed format, to be opened at a specified time.
18. Free on Board this is a shipping term that defines three things.
1.
The point at which the buyer takes legal title to the goods.
2.
Who is responsible for payment of freight charges.
3.
Who is responsible for prosecuting claims against carriers for loss or
damage.
The term F.O.B. must be qualified by a name of location, such as shipping point,
destination, name of city, warehouse, etc. The slated F.O.B. point is usually the
location where title to the goods passes from seller to buyer. The seller is liable
for transportation charges and the risks of loss or damage to the goods up to the
point where title passes to the buyer. The buyer is liable for such charges and
risks after passing of title.
19.
An Informal Bid is an unsealed competitive offer conveyed by letter, telephone, fax, or
other means. .
20.
An Invitation for Bids is a request, verbal or written, which is made to prospective
suppliers requesting the submission of a bid on commodities or services.
25
25.
26.
27.
28.
29.
30.
21.
The Lowest Responsible Bidder is the bidder whose bid is in compliance with the
specifications in all material respects and whose bid in unit price, total cost of operation
or value per dollar is lower than any of the other bidders, and whose reputation, past
performance, and business and financial capabilities are such that they are judged by the
appropriate authority to be capable of satisfying the Village's needs for the specific
contract.
22.
A Performance Bond is a form of security executed subsequent to award by a successful
Bidder that guarantees the proper execution of the Contract and the payment of debts to
persons furnishing services or materials on account of the Contract work. The bond is
provided by the Contractor prior to Contract execution.
23.
Personal Services are services provided by an individual, firm or corporate entity where
no Village job classification exists for the work which is to be performed or where the
Human Resources Department has determined that another type of appointment is not
practical.
24.
Prequalification of Bidders is the screening of potential vendors in which the Village
considers such factors as financial capability, reputation, and management in order to
develop a list of Responsible Bidders qualified to bid on contracts.
A Price Agreement is a contractual agreement in which the Village contracts with a
vendor to provide the purchaser's requirements at a predetermined price. Usually it
involves a minimum number of units, orders placed directly with the vendor by the
Village, and a limited duration of the contract (usually one year).
Professional Services are those services which require specialized training and
knowledge and intellectual skills such as architectural, engineering, medical, accounting,
auditing, legal, real estate, consulting, and counseling services.
Proposal vs. Bid the State Statute requires that competitive "bids" be taken for all matters
except professional services. The "bid" may be a proposal, but the process is "bidding".
If we choose to waive the statutory "bidding" requirement, then we consider non-
competitive or selective quotes or proposals.
Proprietary Items are items belonging to or controlled as property manufactured and sold
only by the owner of the patent, formula, brand name, or trademark associated with the
product.
A Responsible Bidder is a bidder whose reputation, past performance and business and
financial capabilities are such that the bidder is judged by the appropriate Responsible
Official to be capable of satisfying the government's needs for a specific contract and
who is not debarred by the Village.
A Responsive Bidder is a bidder whose bid does not materially vary from the
specifications and terms set out in the Invitation for Bids.
26
31.
32.
33.
...<
Sole (Single) Source - When only one supplier is able to provide the product, material, or
service required by the Village. This is usually because of technology or uniqueness of
product and there is not a comparable product available.
Specifications mean any description of the physical, technical, or functional
characteristics of a commodity, service, or construction item. It may include a
description of any requirement such as inspecting, testing or preparing a commodity,
service or construction item for delivery. It may also include provisions which govem
various aspects of the relation of parties under the Contract.
A Sub-bidder is a person or entity that submits a Bid to a Bidder for materials or labor for
a portion of the work.
34.
A Unit Price is an amount stated in the Bid as a price per unit of measurement for
materials or services as described in the Bid Documents or in the proposed Contract
Documents.
27
..
- - - .
CHAPTER 7 - EXHIBITS
A. Exhibit 1
B. Exhibit 2
C. Exhibit 3
D. Exhibit 4
E. Exhibit 5
F. Exhibit 6
G. Exhibit 7
H. Exhibit 8
1. Exhibit 9
- Budget Transfer Request Form
- Sales Tax Exemption Letter
- Bid Invitation Package
- Instructions to Bidders - Equipment and Products
- Instructions to Bidders - Services and Projects
- Sample Bid Recommendation Memo
- Purchase Order
- Check Requisition Form
- Petty Cash Request Form
28
VILLAGE OF MOUNT PROSPECT
Exhibit 1
Budget Transfer Request Form
Date of Request:
For Fiscal Year:
Department:
Request No.
(For Finance Department Use Only)
Amount
To Account
Amount
From Account
$
$
$
$
$
$
$
$
Need assistance in finding a source funds.
Justification:
... -.........h.". ...h.... ........ .... ...... ..... ....... ........ ... .u..........u.u....u.... ".'..u....h_"- ..... ....... ..-.. ... ...- u. u...- ....._h_'._..- "-".". u_..... _u..,- ,'.u."." ......... _u_.
Signatures and Approval
Dept. Head 1:
Dept. Head 2:
Director of Finance:
Comments:
Approved/Di sapproved/
Referred to Village Manager
Village Manager:
Comments:
Approved/Disapproved
....h.h..........u."." -............ ........-. .-.... ................... _u.... .._u...-... ...... u.".".' ...... .-... ......h "'. ... ......u .... .... ._.. .h_".,.- u_u_....... - -"..'.u..' -'..'.-".".".u'.
Finance Dept. Data Entry
Copies:
Village MaI1ager
Dept. 1:
Dept. 2:
Instructions
1.
Transfers may only be made between expenditure accounts (no revenue accounts).
2.
No request should be made for a transfer of less than $100.
3.
Amounts to be transferred must be rounded to the nearest dollar.
4.
The total of the transfers from the "From" accounts must equal the total transfers to the "To" accounts.
5.
Whenever possible, transfers should be requested between accounts of the same department.
6.
The references to "Dept. Head 1" and "Dept. 1" on the front side of this form pertain to the department
initiating the budget transfer. That is, a department requesting a transfer of funds between its own
accounts or requesting a transfer of funds to its accounts from accounts of another department. The
references to "Dept. Head 2" and "Dept. 2" relate to a department agreeing to relinquish funds to
another department. If a department head is agreeing to relinquish funds to another department, the
signatures of both department heads must appear on the front side ofthis form.
7.
If a department head cannot identify a funding source for a requirement, the block beside "Need
assistance in finding a source of funds" should be checked. In these cases, the Director of Finance wi 11
attempt to identify a source account. The requesting department should attempt to identify source
accounts from among its own departmental accounts before asking for assistance. If neither the
requesting department nor the Director of Finance can identify a source account, the Director of
Finance will request a budget amendment from the Village Board if appropriate.
8.
All transfers must be between accounts of the same fund.
9.
Although transfers between more than two accounts may be requested with this form, separate budget
transfer request forms should be used for funding requirements which are unrelated.
1 O. Budget transfer requests should be submitted to the Director of Finance.
disapproved, a copy of the request form will be sent to all departments involved.
Once approved or
11.
If sufficient funds are not available in an account to make a purchase, a budget transfer shou]d be
requested before the purchase is made or a purchase order is submitted.
Exhibit 2a
MAYOR
Gerald L. Farley
Phone: (847) 392-6000
Fax: (847) 818-5336
TOO: (847) 392-6064
TRUSTEES
Timothy J. Corcoran
Paul Wm. Hoefert
Richard M. Lohrstorfer
Michaele W. Skowron
Irvana K. Wilks
Michael A. lade!
VILLAGE CLERK
Velma W. Lowe
Village of Mount Prospect
50 South Emerson Street Mount Prospect, l11inois 60056
VILLAGE MANAGER
Michael E. Janonis
RETAILERS' OCCUPATION AND SERVICE USE TAX
EXEMPTION CERTIFICATE
The undersigned hereby certifies that he is the Finance Director of the Village of Mount Prospect, a
governmental unit of the State of Illinois, and that he is authorized to execute this certificate and that the article
or articles specified in purchase orders of this governmental unit are purchased from you for exclusive use of
the said Village of Mount Prospect in connection with the operation of the said Village of Mount Prospect.
The Department of Revenue, State of Illinois, issued to the Village of Mount Prospect tax exemption
identification number E9998-1475-04 pursuant to letter dated January 20,2000.
It is understood that the exemption from tax in the case of sales of articles under this exemption certificate to a
state, tenitory or political subdivision thereof, or the District of Columbia, is limited to the sale of articles
purchased for their exclusive use, and it is agreed that if articles purchased tax free under this exemption
certificate are used otherwise or are sold to employees or others, such fact will be reported by me to the
manufacturer ofthe article or articles covered by this certificate. It is also understood that the fraudulent use of
this certificate to secure exemption will subject the undersigned and all guilty parties to a fine of not more than
$10,000, or to imprisonment for not more than five years, or both, together with costs of prosecution.
David O. Erb, Director of Finance
Date
Exhibit 2b
illinois Department of Revenue
Office of Local Government Services
Sales Tax Exemption Section, 3-520
101 W. Jefferson Street
Springfield, IL 62702
217 782-8881
January 20, 2000
VILLAGE OF MT PROSPECT
RICHARD L JESSE. FISCAL OFFICE
100 S EMERSON ST
MT PROSPECT IL 60056
Effective January 1, 2000, we have renewed your governmental exemption
from payment of the Retailers' Occupation Tax, the Service Occupation Tax
(both state and loca!), the Use Tax, and the Service Use Tax, as required by
Illinois law. Your organization is not, however, exempt from Illinois Hotel
Operators' Occupation Tax, Electricity Excise Tax, Electricity Distribution Tax,
and Telecommunications Excise Tax. "
We have issued the following new tax exemption identification number:
.E9998-1475-04
to
VILLAGE OF MT PROSPECT
of
MT PROSPECT. IL
The terms and conditions governing use of your exemption number rema.jn
unchanged.
Office of Local Government Services
Illinois Department of Revenue
.
JAN 3 , 2(D)
.,.n........."" .
-(:.. ,:'c./'. .
STS-70 (R-2/98J
IL-492-3524
10-0000458
Exhibit 3
VILLAGE OF MOUNT PROSPECT
BID DOCUMENTS
«Insert bid item name here in italic, bold and in caps))
BID OPENING DATE:
BID OPENING TIME:
TABLE OF CONTENTS
Bidder Introduction Letter........................
Bid Notice..........................................
Proposal Form......................................
Bid Certification Fonl1............................
Bidders Reference Form...........................
Instructions to Bidders.............................
((Any other items))
1
2
3
4
5
6-
MA YOR
Gerald L Farley
Phone: (847) 392-6000
Fax: (847) 392-6022
TOO: (847) 392-6064
TRUSTEES
Timothy 1. Corcoran
Paul Wm. Hoefert
Richard M. Lohrstorfer
Michaele W. Skowron
¡rvana K. Wilks
Michael A. Zadc!
VILLAGE MANAGER
Michael E. Janonis
VILLAGE CLERK
Velma W. Lowe
Village of Mount Prospect
50 South Emerson Street Mount Prospect, Illinois 60056
(SAMPLE BIDDER INTRODUCTION LETTER)
((Date))
To Prospective Bidder:
On behalf of the citizens of the Village of Mount Prospect I want to express my thanks
for your interest in becoming a part of our Village bid process.
I call you special attention to the Instructions to Bidders section of the bid documents.
Please be sure that you read this document thoroughly and fully understand these
instructions prior to the preparation of your bid. Note that the instructions call for no
deviation from the bid specifications except for those deviations which are listed as
such on the vendors bid detail sheet and which are expressly approved as part of the
Village's acceptance of the bid.
The equipment you are considering offering as part of this bid must meet the
performance and specifications set forth in the bid document Unles~denotE:;d "No
Substitution", the Village's minimum required specifications may be exceeded.
Remember, however, to list all deviations and provide a description of the upgraded
item in the proper space provided. Final bid acceptance will be based upon that
equipment which is deemed most favorable to the interests of the Village after all bids
have been examined and canvassed.
We encourage you to participate in our bid process and will be happy to answer any
questions you may have regarding the accompanying documents. Questions with
regard to specifications should be directed to ((insert appropriate individuals name and
telephone number).
Thank you for considering submitting a bid.
Sincerely,
NOTICE TO BID
VILLAGE OF MOUNT PROSPECT
Mount Prospect, IL 60056
The Village of Mount Prospect Department of «(insert department name)) is soliciting bids for
«(insert item name here».
Sealed bids will be received by the ((insert tile of department director», ((insert department
address here», until «(enter bid opening time here», local time, ((enter bid opening date
here», at which time they will be publicly opened and read aloud. It is the responsibility of the
bidder to meet the specified opening time, and any bid not so received will be retumed
unopened. Bids must be identified as such on the outside of the sealed envelope. This can be
done by label as may be provided or by marking the envelope "SEALED BID" and with the
following infonnation: company's name, address, bid item, date and time of opening.
Specifications and complete bid documents may be obtained from the Office of the ((insert title
of department director here». Further inforn1ation regarding this bid may be obtained by
contacting ( insert appropriate name and telephone number here».
The Village of Mount Prospect reserves the right to waive any and all informality, or to reject
any and all bids and/or parts thereof; and to accept that bid which it deems most favorable to
Mount Prospect after all bids have been examined and canvassed.
By Order of the President and Board of Trustees of the Village of Mount Prospect.
date
«insert department head name))
TO BE PUBLISHED ON
, 20- IN (insert name of newspaper»
NOTE: THIS FORM MUST BE NOTARIZED
Return with Bid
VILLAGE OF MOUNT PROSPECT
BID CERTIFICATION FORM
RE: CERTIFICATION OF BIDDER, COMPLIANCE WITH 720 ILCS 5/33
I/We hereby certify that
is not barred from bidding on
(name of bidder)
this contract as the result of a violation of either Article 33E-3 or Article 33E-4 of State Statute 720
ILCS 5/33.
Signed:
Date:
Title:
----------------------------------------------------------------------------------------------------------------------------
PUBLIC ACT 85-1295
720 ILCS 5/33
Section 5/33E-3 Bid-rigging. A person commits the offense of bid-rigging when he knowingly
agrees with any person who is, or but for such agreement would be, a competitor of such person
concerning any bid submitted or not submitted by such person or another to a unit of State of local
government when with the intent that the bid submitted or not submitted will result in the award of a
contract to such person or another and he either (1) provides such person or receives from another
information concerning the price or other material term or terms of the bid \vhicl1 would .otherwise not
be disclosed to a competitor in an independent non-collusive submission of bids or (2) submits a bid
that is of such a price or other material tern1 or terms that he does not intend the bid to be accepted.
Bid-rigging is a Class 3 felony. Any person convicted of this offense shall be barred for 5 years from
the date of conviction from bidding on any contract offered for bid by any unit of State or local
government.
Section 5/33E-4 Bid Rotating. A person commits the offense of bid rotating when pursuant to any
collusive scheme or agreement with another, he engages in apattern over time (which, for purposes of
this Section, shall include at least 3 contract bids within a period of ten years, the most recent of which
occurs after the effective date of this amendatory Act of 1988) of submitting sealed bids to units of
State or local government with the intent that the award of such bids rotates, or is distributed among,
persons or business entities which submit bids on a substantial number of the same contracts. Bid
rotating is a Class 2 felony. Any person convicted of this offense or any similar offense of any state or
the United States which contains the same elements as this offense shall be permanently barred from
bidding on public contracts in the State of Illinois.
REFERENCES
BIDDER NOTE: Bidder shall provide as many customer references as possible for
services/equipment identica1 or as similar as possib1e to that which the bidder has proposed within
his bid submitta1.
BUSINESS:
ADDRESS:
CONTACT PERSON:
PHONE NUMBER:
APPROXIMATE DATE OF SALE/SERVICE:
BUSINESS:
ADDRESS:
CONT ACT PERSON:
PHONE NUMBER:
APPROXIMATE DATE OF SALE/SERVICE:
BUSINESS:
ADDRESS:
CONTACT PERSON:
PHONE NUMBER:
APPROXIMATE DATE OF SALE/SERVICE:
BUSINESS:
ADDRESS:
CONT ACT PERSON:
PHONE NUMBER:
APPROXIMATE DATE OF SALE/SERVICE:
BUSINESS:
ADDRESS:
CONTACT PERSON:
PHONE NUMBER:
APPROXIMATE DATE OF SALE/SERVICE:
BUSINESS:
ADDRESS:
CONTACT PERSON:
PHONE NUMBER:
APPROXIMATE DATE OF SALE/SERVICE:
Exhibit 4
VILLAGE OF MOUNT PROSPECT
INSTRUCTIONS TO BIDDERS
EQUIPMENT/PRODUCTS
The general rules and conditions that follow apply to all bids requested and accepted by the Village of
Mount Prospect unless otherwise specified. Bidders or their authorized representatives are expected to
fully inform themselves as to the conditions, requirements, and specifications before submitting bids.
Failure to do so will be at the bidder's own risk. Submitting of a bid is an assumption that vendor has
familiarized himself with all conditions and intends to comply with them unless noted otherwise.
1. FORMS
Bid forn1s are furnished by the Village. All bids must be submitted on the forn1s provided,
complete and intact, properly signed in ink in the proper spaces, and submitted in a sealed
envelope. All bids must be delivered to the appropriate Village representative prior to the bid
opening date and time to be considered.
Bids must be identified as such on the outside of the sealed envelope. This can be done by label as
may be provided by the Village, or by marking the envelope "SEALED BID" and with the
following infonnation: company's name, address, item bid, date and time of opening.
2. ALTERNATE MULTIPLE BIDS/SPECIFICATIONS
The specifications describe the equipment/product that the Village feels is necessary to meet the
perfonnance requirements of the Vil1age. It is not the desire or the intent to eliminate or exclude
any bidder from bidding because of minor deviations, alternates or changes.
Bidders desiring to bid on items which deviate from these specifications, but which they believe are
equivalent, are requested to submit alternate bids. However, alternate bids must be clearly
indicated as such, and deviations from the applicable specifications should be plainly noted. The
bid must be accompanied by complete specifications for the items offered. Any questions
regarding the specifications, drawings, etc., shall be refeITed to that individual so referenced in the
Specifications section of the Bid Document. Vendors wishing to submit a secondary bid must
submit it as an alternate bid. There is to be only one bid per envelope.
The Village shall be the sole and final judge unequivocally as to whether any substitute is of
equivalent or better quality. This decision is final and will not be subject to recourse by any person,
fin11 or corporation.
3. RECEIVING OF BIDS
Bids received prior to the time of opening will be securely kept, unopened. The Department
Director or his/her designee, whose duty it is to open the bids, will decide when the specified time
has anived, and no bid received thereafter will be considered. No responsibility wil1 be attached to
the Village or its representatives for the premature or non-opening of a bid not properly addressed
and identified, except as otherwise provided by law.
4. LATE BIDS
Bids arriving after the specified time, whether sent by mail, courier, or in person, will not be
accepted. These bids will either be refused or returned unopened. It is the bidder's responsibility
for timely delivery regardless of the method used. Mailed bids which are delivered after the
specified hour will not be accepted regardless of post marked time on the envelope.
5. BIDS BY FAX
Bids must be submitted on the original forn1s provided by the Village completely intact as issued.
Facsimile machine transmitted bids will not be accepted, nor will the Village transmit bid
documents to prospective bidders by way of a facsimile machine.
6. ERROR IN BIDS
When an error is made in extending total prices, the unit bid price will govern. Otherwise, the
bidder is not relieved from errors in bid preparation. Erasures in bids must be explained over
signature of bidder.
7. WITHDRAWAL OF BIDS
A written request for the withdrawal of a bid or any part thereof maybe granted if the request is
received by the Director of the requesting Department prior to the specified time of opening. After
the opening, the bidder cannot withdraw or cancel his bid for a period of sixty (60) calendar days,
or such longer time as stated in the bid documents.
8. CONSIDERATION OF BID
No bid will be accepted from or contract awarded to any person, firn1 or corporation that is in
arrears or is in default to the Village upon any debt or contract, or that is a defaulter, as surety or
otherwise, upon any obligation to the Village or had failed to perform faithfully any previous
contract with the Village.
The bidder, if requested, shall present, within 48 hours, evidence satisfactory to the V i11age of
perforn1ance ability and possession of necessary facilities, pecuniary resources and adequate
insurance to comply with the tern1S of these specifications and contract document.
9. PRICES
Unit prices shall be shown for each unit on which there is a bid, and shall include all packing,
crating, fTeight, and shipping charges, and cost of unloading at the destination únl'êss otherwise
stated in the bid.
Unit prices shall not include any local, state or federal taxes. The Village is exempt, by law, from
paying state and village retailer's occupation tax, service occupation tax, and federal excise tax.
The Village will supply the successful bidder with its tax exemption number.
Cash discounts will not be considered in determining overall price, but may be used in an overall
evaluation.
10. AWARD OR REJECTION
The Village reserves the right to reject and/or award any and al1 bids or parts thereof and to waive
formalities and technicalities according to the best interests of the Village. Any bid submitted wi11
be binding for sixty (60) days subsequent to the date of the bid opening.
Bidders shall make all investigations necessary to thoroughly inform themselves regarding the
equipment or supplies to be fumished in accordance with the bid. No plea of ignorance by the
bidder of conditions that exist or that may hereafter exist as a result of failure or omission on the
part of the bidder to make the necessary examinations and investigations wi11 be accepted asa basis
for varying the requirements of the Vi11age of the compensation to the bidder. Any exceptions not
taken by the bidder shall be assumed by the Village to be included.
A contract wil1 be awarded to the lowest responsible bidder complying with the conditions of the
contract documents only when it is in the best interest of the Village to accept the bid. The Village
shal1 be the sole judge of compliance with the specifications and reserves the right to accept or
reject any and/or al1 bids or parts thereof.
11. PAYMENT
Payment will be made within thirty (30) days after acceptance of the equipment or supplies and
bidder's compliance with al1 stipulations relating to the bid/contract.
12. REQUIREMENT OF BIDDER
The successful bidder shall, within ten (10) days after notification of the award: a) enter into a
contract in writing with the Vil1age covering all matters and things as are set forth in the
specifications and his bid; b) carry insurance acceptable to the Vi11age, covering public liability,
property damage and workers compensation.
13. COMPLIANCE WITH ALL LAWS
Al1 work under the contract must be executed in accordance with all applicable federal, state and
local laws, ordinances, rules and regulations.
14. CONTRACT AL TERA nONS
No amendment of a contract shall be valid unless made in writing and signed by the Village
President, Vil1age Manager, or their authorized representative.
15. NOTICES
All notices required by the contract shal1 be given in writing.
16. NONASSIGNABILITY
The contractor shall not assign the contract, or any part thereof, to any other person, firm or
corporation without the previous written consent of the Village. Such assignment shall not relieve
the contractor from his obligations or change the terms of the contract.
17. INDEMNITY
The contractor shall indemnify and save halmless the Village, its officers and employees from any
and all liability, losses or damages, including attorneys fees and costs of defense, the Village may
suffer as a result of claims, demands, suits, actions or proceedings of any kind or nature, including
workers' compensation claims, in any way resulting from or arising out of the operations of the
contractor under this contract, including operations of subcontractors; and the contractor shall, at
his own expense, appear, defend, and pay all fees of attorneys and all costs and other expenses
arising therefrom or incurred in connection therewith; and, if any judgements shall be rendered
against the Village in any such action, the contractor shall, at his own expense, satisfy and
discharge same. The contractor expressly understands and agrees that any perfonnance bond or
insurance protection required by the contract, or otherwise provided by the contractor, shall in no
way limit the responsibility to indemnify, keep and save hannless and defend the Village as herein
provided.
18. EQUAL EMPLOYMENT OPPORTUNITY
During the perforn1ance of the contract and/or supplying of materials, equipment and supplies,
bidder must be in full compliance with all provisions of the Acts of the General Assembly of the
State of Illinois relating to employment, including equal opportunity requirements.
19. REQUIRED INSURANCE
In submission of a bid, the bidder is certifying that he has all insurance coverages required by law
or would nonnally be expected for bidder's type of business.
20. BID PERFORMANCE DEPOSIT
When it is required, it will be so stated elsewhere within this bid package áJong with the amount
required. The deposit is to be in the fonn of a certified check, or a bank cashiers check. All bid
perfornlance deposit checks will be retained by the Village until the bid award is made, at which
time the checks will be promptly returned to the unsuccessful bidders. The bid perfornlance deposit
check of the successful bidder wilI be retained until the goods have been received or
completedlinstalled and found to be in compliance with the specification or until surety bonding
requirements have been satisfied and proof of insurance coverage is provided in accordance with
the Special Provisions Section of these specifications.
21. ACCEPTANCE
After the acceptance and award of the bid, and upon receipt of a written purchase order executed by
the proper officials of the Village, this instructions to bidders, and all other portions of the bid
documents, including the specifications, will constitute part of the legal contract between the
Village of Mount Prospect and the successful bidder.
22. DEFAULT
The Village may tenninate a contract by written notice of default to the contractor if the contractor:
a. Fails to make delivery of the product within the time fÌame specified in the specifications,
or
b. Fails to make progress so as to endanger performance of the contract, or
c. Fails to provide or maintain in full force and effect, the liability and indemnification
coverages or performance bond as is required.
If the Village ternlinates the contract, the Village may procure equipment or supplies similar to
those so terminated, and the contractor shall be liable to the Village for any excess costs for similar
equipment or supplies, unless the contractor provides acceptable evidence that failure to perform
the contract was due to causes beyond the control and without the fault or negligence of the
contractor.
23. SPECIAL CONDITIONS
Wherever special conditions/requirements are written into the Specifications or Special Provisions
which are in conflict with conditions stated in these Instructions to Bidders, the conditions stated in
the Specifications or Special Provisions/Requirements shall take precedence.
24. PERMITS AND LICENSES
The successful bidder shall obtain, at his own expense, all permits and licenses that may be required
to complete the contract (where applicable).
25. GENERAL GUARANTY
Neither the final certificate of payment nor any provision in the contract nor partial or entire use of
the equipment/product embraced in this contract by the Village or the Public shall constitute an
acceptance of work not done in accordance with the contract, or relieve the contractor of liability in
respect to any express warranties or responsibility for failure to comply with the te1111S of those
contract documents.
It is expressly agreed by the parties hereto that in the event any defects or imperfections in the
materials or workmanship to be furnished by the contractor herein appear within the period of one
year fÌom the date of completion of all the work mentioned herein and acceptance thereof by the
Village of Mount Prospect, the contractor will, upon notice from said Village (which notice may be
given by letter to said contractor to the business address of the contractor shown in the proposal),
repair and make good at his own cost any such defects or imperfections and replace any defective
or imperfect materials or workmanship with other materials or workmanship satisfactory to said
Village, and ful11ish all such new materials and labor as may be necessary to do so; and in the event
of the failure, refusal or delay of said workmanship or materials said Village may do so or have
same done by others, and said contractor and surety or sureties on his bond given for the faithful
performance of this contract shall be liable to the Village of Mount Prospect for all damages and
expenses occasioned by such failure, refusal or delay.
26. PREVAILING WAGES
All laborers and mechanics employed by contractors and subcontractors on construction work for
this project shaH be paid wages at rates no less than those prevailing on similar construction in the
locality as deternlined by the Secretary of Labor in accordance with the Davis-Bacon Act, as
amended (40 US.c. 276a-5), and shal1 receive overtime compensation in accordance with and
subject to the provisions of the Contract Work Hours and Safety Standards Act (40 US.C. 327-
333), and the contractors and subcontractors shall comply with all regulations issued pursuant to
these Acts and with other applicable federal laws and regulations pertaining to labor standards. The
Secretary of Labor has, with respect to the labor standards specified in this Section, the 1950 (5
USe. 1332-15) and Section 2 of the Act ofJune 13, 1934, as amended (40 u.S.e. 276c).
Not less than the prevailing wage shall be paid for labor on the work to be done as required by law.
27. BIDDERS QUALIFICATIONS
All bidders must submit the following infonnation on or before the time at which the bid is required
to be submitted:
a. The location of the bidder's pennanent place ofbusiness.
b. Evidence of ability to provide an efficient and adequate plan for executing the work.
c. A Jist of similar projects carried out by the bidder.
d. A list of projects the bidder presently has under contract.
e. Any additional evidence tending to show that the bidder is adequately prepared to fulfill the
contract.
28. BID CERTIFICATION FORM
All bid submittals must include a signed Bid Certification Fonn (copy included in Bid Documents)
certifying that the bidder is in compliance with Sections 33E-3 and 33E-4 of the Illinois Criminal
Code regarding bid rotating and bid-rigging.
Illinois State Law Article 33E-3 and 33E-4 states that it is unlawful to participate in bid-rigging
and/or bid rotating. Therefore, all bidders must certify that they are not barred from bidding on the
contract as a result of a violation of State Law 33E-3 and/or 33E-4, prohibiting bid-rigging and bid
rotation. It is necessary that this be done under oath. Therefore, the fOlID included with the bid
submittal sheets must be notarized.
29. DEVIATIONS
Unless denoted "No Substitution", the Vi1lage's minimum required specifications may be
exceeded. However, vendors must list all specification deviations and provide a description and/or
catalog sheet that ful1y describes that which they propose to furnish, in lieu of that specified. Final
bid acceptance shall be based upon that bid deemed most favorable to the interests of the Village
after al1 bids have been examined and canvassed.
Exhibit 5
VILLAGE OF MOUNT PROSPECT
INSTRUCTIONS TO BIDDERS
SERVICES
The general rules and conditions that follow apply to all bids requested and accepted by the Village of
Mount Prospect unless otherwise specified. Bidders or their authorized representatives are expected to
fully inform themselves as to the conditions, requirements, and specifications before submitting bids.
Failure to do so wil1 be at the bidder's own risk. Submitting of a bid is an assumption that vendor has
familiarized himself with all conditions and intencls to comply with them unless noted otherwise.
1. FORMS
Bid forms are furnished by the Village. All bids must be submitted on the fon11S provided,
complete and intact, properly signed in ink in the proper spaces, and submitted in a sealed
envelope. All bids must be delivered to the appropriate Vil1age representative prior to the bid
opening date and time to be considered.
Bids must be identified as such on the outside of the sealed envelope. This can be done by label as
may be provided by the Vil1age, or by marking the envelope "SEALED BID" and with the
following information: company's name, address, item bid, date and time of opening.
2. ALTERNATE MOL TIPLE BIDS/SPECIFICATIONS
The specifications describe the services that the Village feels is necessary to meet the performance
requirements of the Village. It is not the desire or the intent to eliminate or exclude any bidder
from bidding because of minor deviations, alternates or changes.
Bidders desiring to bid on services which deviate from these specifications, but which they believe
are equivalent, are requested to submit alternate bids. However, alternate bids must be clearly
indicated as such, and deviations from the applicable specifications should be plainly noted. The
bid must be accompanied by complete specifications for the services offered. Any questions
regarding the specifications, drawings, etc., shall be referred to that individual so referenced in the
Specifications section of the Bid Document. Vendors wishing to submit a secondary bid must
submit it as an alternate bid. There is to be only one bid per envelope.
The Village shall be the sole and final judge unequivocally as to whether any substitute is of
equivalent or better quality. This decision is final and will not be subject to recourse by any person,
firm or corporation.
3. RECEIVING OF BIDS
Bids received prior to the time of opening will be securely kept, unopened. The Depa11ment
Director or his/her designee, whose duty it is to open the bids, will decide when the specified time
has arrived, and no bid received thereafter will be considered. Nö responsibility will be attached to
the Village or its representatives for the premature or non-opening of a bid not properly addressed
and identified, except as otherwise provided by law.
4. LATE BIDS
Bids alTiving after the specified time, whether sent by mail, courier, or in person, will not be
accepted. These bids will either be refused or returned unopened. It is the bidder's responsibility
for timely delivery regardless of the method used. Mailed bids which are delivered after the
specified hour will not be accepted regardless of post marked time on the envelope.
5. BIDS BY FAX
Bids must be submitted on the original fonns provided by the Village completely intact as issued.
Facsimile machine transmitted bids will not be accepted, nor will. the Village transmit bid
documents to prospective bidders by way of a facsimile machine.
6. ERROR IN BIDS
When an error is made in extending total prices, the unit bid price will govern. Otherwise, the
bidder is not relieved from errors in bid preparation. Erasures in bids must be explained over
signature of bidder.
7. WITHDRAWAL OF BIDS
A written request for the withdrawal of a bid or any part thereof may be granted if the request is
received by the Director of the requesting Department prior to the specified time of opening. After
the opening, the bidder cannot withdraw or cancel his bid for a period of sixty (60) calendar days,
or such longer time as stated in the bid documents.
8. CONSIDERA nON OF BID
No bid will be accepted from or contract awarded to any person, finn or corporation that is in
arrears or is in default to the Village upon any debt or contract, or that is a defaulter, as surety or
otherwise, upon any obligation to the Village or had failed to perfornl faithfully any previous
contract with the Village.
The bidder, if requested, shall present, within 48 hours, evidence satisfactory to the Village of
perfornlance ability and possession of necessary facilities, pecuniary resources and adequate
insurance to comply with the tenns of these specifications and contract document.
9. PRICES
Unit prices shall be shown for each unit on which there is a bid, and shall include all packing,
crating, freight, and shipping charges, and cost of unloading at the destination unless otherwise
stated in the bid.
Unit prices shall not include any local, state or federal taxes. The Village is exempt, by law, from
paying state and village retailer's occupation tax, service occupation tax, and federal excise tax.
The Village will supply the successful bidder with its tax exemption number.
Cash discounts will not be considered in deternlining overall plice, but may be used in an overall
evaluation.
10. A WARD OR REJECTION
The Village reserves the right to reject and/or award any and all bids or parts thereof and to waive
formalities and technicalities according to the best interests of the Village. Any bid submitted will
be binding for sixty (60) days subsequent to the date of the bid opening.
Bidders shall make all investigations necessary to thoroughly infornl themselves regarding the
equipment or supplies to be furnished in accordance with the bid. No plea of ignorance by the
bidder of conditions that exist or that may hereafter exist as a result of failure or omission on the
part of the bidder to make the necessary examinations and investigations will be accepted as a basis
for varying the requirements of the Village of the compensation to the bidder. Any exceptions not
taken by the bidder shall be assumed by the Vi1lage to be included.
A contract wi1I be awarded to the lowest responsible bidder complying with the conditions of the
contract documents only when it is in the best interest of the Village to accept the bid. The Village
shall be the sole judge of compliance with the specifications and reserves the right to accept or
reject any and/or all bids or parts thereof.
11. PAYMENT
Payment will be made within thirty (30) days after acceptance of the services rendered and bidder's
compliance with all stipulations relating to the bid/contract.
12. REQUIREMENT OF BIDDER
The successful bidder shall, within ten (10) days after notification of the award: a) enter into a
contract in writing with the Village covering all matters and things as are set forth in the
specifications and his bid; b) carry insurance acceptable to the Village, covering public liability,
property damage and workers compensation.
13. COMPLIANCE WITH ALL LAWS
All work under the contract must be executed in accordance with all applicable federal, state and
local laws, ordinances, rules and regulations.
14. CONTRACT ALTERATIONS
No amendment of a contract shall be valid unless made in writing and signed by the Village
President, Village Manager, or their authorized representative.
15. NOTICES
All notices required by the contract shall be given in writing.
16. NONASSIGNABILITY
The contractor shall not assign the contract, or any part thereof, to any other person, fiml or
corporation without the previous written consent of the Village. Such assignment sha11 not relieve
the contractor from his obligations or change the ternlS of the contract.
17. INDEMNITY
The contractor shall indemnify and save ha1l11less the Village, its officers and employees from any
and all liability, losses or damages, including attoll1eys fees and costs of defense, the Village may
suffer as a result of claims, demands, suits, actions or proceedings of any kind or nature, including
workers' compensation claims, in any way resulting from or arising out of the operations of the
contractor under this contract, including operations of subcontractors; and the contractor shall, at
his own expense, appear, defend, and pay all fees of attorneys and all costs and other expenses
arising therefrom or incurred in connection therewith; and, if any judgements shall be rendered
against the Village in any such action, the contractor shall, at his own expense, satisfy and
discharge same. The contractor expressly understands and agrees that any performance bond or
insurance protection required by the contract, or otherwise provided by the contractor, shall in no
way limit the responsibility to indemnify, keep and save ham1less and defend the Village as herein
provided.
18. EQUAL EMPLOYMENT OPPORTUNITY
During the performance of the contract and/or supplying of materials, equipment and supplies,
bidder must be in full compliance with all provisions of the Acts of the General Assembly of the
State of Illinois relating to employment, including equal opportunity requirements.
19. REQUIRED INSURANCE
In submission of a bid, the bidder is certifying that he has all insurance coverages required by law
or would normally be expected for bidder's type of business. In addition, the bidder is certifying
that he has at least the following insurance coverages:
Tvpe of Insurance
General Liability
Bodily Injury
Property Damage
Contractual Ins.
Automobile Liability
Bodily Injury
Property Damage
Workers Compensation
Employee Claims
Employers Liability
Limit! Limit/
Ea. Occurrence Aggregate
$1,000,000 $3,000,000
$1,000,000 $3,000,000
$1,000,000 $3,000,000
$1,000,000 $1,000,000
$1,000,000 $1,000,000
Statutory for Illinois
$1,000,000 per accident
The bidder is to grant the Village an "additional insured" status on all applicable insurance policies
and provide the Village with original endorsements affecting coverage required by this clause. Said
policies will not be cancelled unless the Village is provided a thirty (30) day written notice.
Nothing contained in the insurance requirement shall be construed as limiting the extend of the
contractor's responsibilities for payment of damages resulting from his operations under this
agreement.
20. BID PERFORMANCE DEPOSIT
When it is required, it will be so stated elsewhere within this bid package along with the amount
required. The deposit is to be in the fonn of a certified check, or a bank cashiers check. All bid
perfOlmance deposit checks will be retained by the Village until the bid award is made, at which
time the checks will be promptly returned to the unsuccessful bidders. The bid perfonnance deposit
check of the successful bidder will be retained until the services have been rendered or
completed/installed and found to be in compliance with the specification or until surety bonding
requirements have been satisfied and proof of insurance coverage is provided in accordance with
the Special Provisions Section ofthese specifications.
21. ACCEPTANCE
After the acceptance and award of the bid, and upon receipt ofa written purchase order executed by
the proper officials of the Village, this instructions to bidders, and all other portions of the bid
documents, including the specifications, will constitute part of the legal contract between the
Village of Mount Prospect and the successful bidder.
22. DEFAULT
The Village may terminate a contract by written notice of default to the contractor if the contractor:
a. Fails to make delivery or perfonn the services within the time frame specified in the
specifications, or
b. Fails to make progress so as to endanger perfom1ance of the contract, or
c. Fails to provide or maintain in full force and effect, the liability and indemnification
coverages or performance bond as is required.
If the Village terminates the contract, the Village may procure services similar to those so
terminated, and the contractor shall be liable to the Village for any excess costs for similar services,
unless the contractor provides acceptable evidence that failure to perform the contract was due to
causes beyond the control and without the fault or negligence of the contractor.
23. SPECIAL CONDITIONS
Wherever special conditions/requirements are written into the Specifications or Special Provisions
which are in conflict with conditions stated in these Instructions to Bidders, the conditions stated in
the Specifications or Special Provisions/Requirements shall take precedence.
24. PERMITS AND LICENSES
The successful bidder shall obtain, at his own expense, all permits and licenses that may be required
to complete the contract (where applicable).
25. GENERAL GUARANTY
Neither the final certificate of payment nor any provision in the contract nor partial or entire use of
the product! improvement embraced in this contract by the Village or the Public shall constitute an
acceptance of work not done in accordance with the contract, or relieve the contractor ofliability in
respect to any express warranties or responsibility for failure to comply with the terms of those
contract documents.
It is expressly agreed by the parties hereto that in the event any defects or imperfections in the
materials or workmanship to be furnished by the contractor herein appear within the period of one
year from the date of completion of all the work mentioned herein and acceptance thereof by the
Village of Mount Prospect, the contractor will, upon notice from said Village (which notice may be
given by letter to said contractor to the business address of the contractor shown in the proposal),
repair and make good at his own cost any such defects or imperfections and replace any defective
or imperfect materials or workmanship with other materials or workmanship satisfactory to said
Village, and furnish all such new materials and labor as may be necessary to do so; and in the event
of the failure, refusal or delay of said workmanship or materials said Village may do so or have
same done by others, and said contractor and surety or sureties on his bond given for the faithful
performance of this contract shall be liable to the Village of Mount Prospect for all damages and
expenses occasioned by such failure, refusal or delay.
26. PREVAILING WAGES
All laborers and mechanics employed by contractors and subcontractors on construction work for
this project shall be paid wages at rates no less than those prevailing on similar construction in the
locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as
amended (40 u.S.e. 276a-5), and shall receive overtime compensation in accordance with and
subject to the provisions of the Contract Work Hours and Safety Standards Act (40 u.S.e. 327-
333), and the contractors and subcontractors shall comply with all regulations issued pursuant to
these Acts and with other applicable federal laws and regulations pertaining to labor standards. The
Secretary of Labor has, with respect to the labor standards specîfied in this Section, the 1950 (5
USe. 133Z-15) and Section 2 of the Act of June 13, 1934, as amended (40 US.C. 276c).
Not less than the prevailing wage shall be paid for labor on the work to be done as required by Jaw.
27. BIDDERS QUALIFICATIONS
All bidders must submit the following infornlation on or before the time at which the bid is required
to be submitted:
a. The location of the bidder's pernlanent place of business.
b. Evidence of ability to provide an efficient and adequate plan for executing the work.
c. A list of similar projects carried out by the bidder.
d. A list of projects the bidder presently has under contract.
e. Any additional evidence tending to show that the bidder is adequately prepared to fulfill the
contract.
28. BID CERTIFICATION FORM
All bid submittals must include a signed Bid Certification Fonn (copy included in Bid Documents)
certifying that the bidder is in compliance with Sections 33E-3 and 33E-4 of the Illinois Criminal
Code regarding bid rotating and bid-rigging.
Illinois State Law Article 33E-3 and 33E-4 states that it is unlawful to participate in bid-rigging
and/or bid rotating. Therefore, all bidders must certify that they are not barred from bidding on the
contract as a result of a violation of State Law 33E-3 and/or 33E-4, prohibiting bid-rigging and bid
rotation. It is necessary that this be done under oath. Therefore, the fonD included with the bid
submittal sheets must be notarized.
29. DEVIATIONS
Unless denoted "No Substitution", the Village's minimum required specifications may be
exceeded. However, vendors must list all specification deviations and provide a description and/or
catalog sheet that fully describes that which they propose to furnish, in lieu of that specified. Final
bid acceptance shall be based upon that bid deemed most favorable to the interests of the Vil1age
after all bids have been examined and canvassed.
Exhibit 6
VILLAGE OF MOUNT PROSPECT
BID RECOMMENDA nON - STANDARD MEMO FORMAT
TO:
Village Manager
FROM:
Department Director
DATE:
SUBJECT:
XYZ Program Bid Results
General Bid Information
August 1,2004, at 10:00 am sealed bids were received for the XYZ Program. At this time, the sealed bids were publicly
opened and read aloud.
The XYZ Program involves the purchase of specific equipment to be used to improve Village property located in the
downtown district. Ten contractors received invitational bids and advertising was placed in the local newspaper.
Summary of Bids Received
Three contractors submitted bids: ABC Improvements, Village Builders, and Community Supplies. It was determined
that of the seven contractors who did not submit bids, four could not meet the deadline and three were unable to provide
the goods and services being requested. Bid tabulations are as follo\\/s:
Bidder
Village Builders
ABC Improvements
Community Supplies
Equipment Cost
$ 7,845.00
9,430.00
10,290.00
Bid Recommendation
I recommend award of the contract to Village Builders in an amount not to exceed $7,845.00. Village Builders has
successfully performed work for us in the past. Plus, they have provided severa] satisfied municipal references for similar
work.
Budget Authorization
There is $10,000.00 allocated in this year's budget on page 175 in account number 01-001-00-0001 for the XYZ Project.
BID RECOMMENDA nON - STANDARD MEMO FORMAT
Additional Information
1.
\\'hen a memo is from an individual other than a department director, a director's recommendation is required. A signature
line would read as foJlows:
I concur with the above recommendation
Name of Director
2.
If an unusual number of contractors declines to bid, an explanation, if known, should be included.
3. For more complicated bids, a detailed table should be attached.
4.
If the recommendation is not for the lowest bidder, an explanation must be provided.
5.
If the amount of the bid exceeds the budget amount, the memo must outline that a limit wiJl be imposed or whether there is a
reason for exceeding a budgeted amount.
VILLAGE OF MOUNT PROSPt:C I
SO SOUTH EMERSON STREET
MOUNT PROSPECT, ILLINOIS 60056
I PURCHASE ORD~ERI1NÖI'
S003329
PURCHASE ORDER
ISSUE DATE
09/07/04
ISSUED CLEAN CUT TREE SERVICE SHIP PUBLIC WORKS DEPARTMENT
TO: P.O. BOX 545 TO: VILLAGE OF MOUNT PROSPECT
LAKE VILLA, IL 60046 1700 WEST CENTRAL ROAD
08729 MOUNT PROSPECT, IL 60056
FOR MORE INFORMATION CONTACT: PUBLIC WORKS DEPARTMENT PHONE NO: 847
ITEM
NO. QTY UIM
1
UNIT PRICE
37000.00
870-5640
EXTENDED PRICE
DESCRIPTION
WELLER CREEK TREE TRIMMING/REMOVAL
CONTRACT - PER SPECS DATED 7/23/04
ACCOUNT DISTRIBUTION:
5907704-690079
37000.00
37000.00
*CONFIRMA TION-DO NOT DUPLICA TE*
THIS ORDER IS EXEMPT FROM
SALES AND USE TAX.
EXEMPTION NUMBER IS
E9998-1475-04.
TOTAL OF PURCHASE ORDER
37000.00
SEE REVERSE SIDE FOR IMPORTANT INFORMATION
PLEASE REFERENCE THIS PURCHASE
ORDER NUMBER AND YOUR FEDERAL
TAX 10 ON INVOICE.
Please mail invoice to:
Accounts Payable
Village of Mount Prospect
50 South Emerson Street
Mount Prospect, IL 60056
APPROVED BY:
d~ø.
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Director of Finance
Exhibit 8
VILLAGE OF MOUNT PROSPECT
Check Request
Vendor No.
Check No.
Date
Submitted by
Department Director
Account Number Description . Amount
TOTAL
Account Number Checked
Funds Available
Initials
Approved:
Revised 3/00
Director of Finance
Exhibit 9
CHARGE TO ACCOUNT
TOTAL
RECEIVED BY
ftH. FORM 3OOB
APPROVED BY
MADE IN U.S.A.
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INTEROFFICE MEMORANDUM
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Mount Prospect Public Works Department
FROM:
VILLAGE MANAGER MICHAEL E. JANONIS
ADMINISTRATIVE/SOLID WASTE COORDINATOR
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TO:
DATE:
SEPTEMBER 14, 2004
RESIDENTIAL SOLID WASTE CONTRACT
SUBJECT:
Backqround
ARC Disposal and Recycling Company has been the Village's exclusive residential solid waste hauler
since August of 1991. ARC was awarded the 1991 - 1994 and 1994 - 2000 exclusive contracts
through a competitive bid process. Prior to the expiration of the 1994-2000 contract the Village and
ARC Disposal negotiated a new residential contract for another four (4) year, eight (8) month period,
May 1, 2000 - December 31, 2004. In accordance with the contract agreement, effective January 1,
of each year the Contractor received a 4% increase for services provided.
Per the terms of the current Contract, at the expiration of the initial term, and for two (2) renewal terms
of one (1) year each thereafter, the Contract shall be considered to be automatically renewed, unless
either party shall notify the other party in writing, not less than ninety (90) days prior to the expiration of
the current term, that the notifying party does not wish to renew for an additional term. [Article IV, Term
of Contract]
Discussion
Cost benefit analysis and resident satisfaction studies have significantly influenced local government's
approach to solid waste management. While competitive bidding for solid waste services was the fiscally
sound approach ten years ago, many local governments are realizing the economic benefit of negotiating
for services and extended contracts with the existing hauler if resident satisfaction is at an acceptable
level.
Since 1991 ARC Disposal has consistently provided high quality solid waste services to the residents
of Mount Prospect. In addition, the Village of Mount Prospect currently has one of the most favorable
contractual rate agreements for solid waste services within the Solid Waste Agency of Northern Cook
County (SWANCC) region. Recent discussions with Mr. Brooke Beal, SWANCC Executive Director
indicate the 4% annual rate increase would still leave Mount Prospect with a very favorable rate. [ARC
has indicated rate increases of approximately 11 % (wages/benefits) and 15% (fuel) over the last year.
Recommendation
It is staffs recommendation that the Village Board approve renewal of the existing solid waste contract
for a one (1) year term effective January 1, 2005 - December 31, 2005. All terms and conditions as
outlined in the current contract shall remain the same including the annual 4% rate increase.
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M. Lisa Angell /
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Village of Mount Prospect
Community Development Department
Mount Prospect
MEMORANDUM
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DATE:
SEPTEMBER 15, 2004
DOWNTOWN STREETSCAPE PROGRAM - CHANGI: O.RDER FOR
SIDEWALK IMPROVEMENTS ON WILLE STREET LOT
FROM:
MICHAEL E. JANONIS, VILLAGE MANAGER
WILLIAM J. COONEY JR., DIRECTOR OF COMMUNITY DEVELOPME
TO:
SUBJECT:
The Village's Downtown Streetscape Improvement Program calls for the installation of a 10' wide brick
paver sidewalk and associated landscaping along the southern portion of the Residences at Village
Centre project, immediately north of the Ye Olde Town Inn and other commercial properties. This
project has been put on hold for several years to allow for the completion of the public parking lot and
final determination of the development of the "small triangle"area.
In light of the completion of the Residences project, staff is proposing that the sidewalk component of
this project be installed at this time to clean up this view for the new residents and to provide improved
pedestrian access in this area. The landscaping and brick paver improvements proposed for the area
immediately behind the Busse commercial properties will not be installed until a final determination is
made regarding the development of this area.
Staff requested our current streets cape contractor, Martam Construction, to provide a cost estimate for
this improvement. They have submitted a bid to complete this work for a total of $72,174.44. Norwood
Builders has agreed to split the cost of the improvement; therefore the Village would need to contribute
$36,087.22 as our share of the project. This improvement is not currently budgeted for this year and
would therefore require a budget amendment to authorize the project. I would therefore request
approval from the Village Board to increase this year's Streetscape Program budget, account 3
5507703-690059 (page 298 of the Village Budget), from $950,000 to $1,022,175.
Please forward this memorandum and attachmentstp the Village Board for their review and
consideration at their September 21st meeting. Staff will be at that meeting to answer any questions
related to this matter.
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INTEROFFICE MEMORANDUM
Village of Mount Prospect
Mount Prospect, Illinois
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DATE:
SEPTEMBER 10, 2004
RECOMMENDATION FOR GEMS UPGRADE
FROM:
ASSISTANT VILLAGE MANAGER DAV~o STRAHL
IT DIRECTOR
TO:
SUBJECT:
GEMS (Government e-Management Solutions), the Village's financial software vendor, has
recommended that the Village upgrade several software components that work with the
GEMS application modules. The upgrades are required for the Village to maintain support
for the 2004 year-end close processes. Staff is requesting approval to purchase the
upgrades, which are detailed below.
The recommended upgrade includes the three components as listed below:
1. Upqrade to LlNC version 3r3. LlNC is the interface between the GEMS software
modules and the backend database. TheYiJl?ge is currently running version 3r1 b.
The new version became available in August 2004 and is the main component
required for support of the year-end close.
2. Upqrade to the backend database. The Village is currently running on Oracle 8 for
backend database. An upgrade to either Oracle 9i or Microsoft SOL 2000 is
required to support LlNC version 3r3. Village staff prefers to migrate to SOL
because it would be less expensive than Oracle in the long run due to lower
maintenance support costs.
3. Purchase Net Express Runtime. Net Express Runtime is a sub-component of LlNC,
which is required with LlNC version 3r3. Fifty concurrent licenses are needed.
Costs for the upgrade include license fees and installation. It is necessary to have GEMS
perform the upgradés so they will support it. Prices assume the work will be done on the
weekend to minimize downtime for production jobs during the work week. The costs are
listed in the chart on the next page.
Subject
Date, 1998
Page 2
u
rade Costs
Price
11,458
6,500
3,500
3,600
1,200
Total $26,258
$3,060/ year
Since the system is proprietary, GEMS is the only vendor qualified to perform the
upgrades. I recommend that we purchase the upgrades from GEMS at a cost not to
exceed $26,258 to be paid from account number 5107701-650039, GEMS Conversion.
Please let me know if you have any questions or concerns.
~~
é'j~an Middleton
IT Director
c: Deputy Finance Director Carol Widmer
I:\VB Request Memos\GEMS Upgrade 2.DOC