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Home My WebLink About6. Village Manager's Report 12/16/2014Mount 1'r ,,til wc( Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: DAVID STRAHL, ACTING VILLAGE MANAGER VS FROM: FINANCE DIRECTOR 12- DATE: DECEMBER 5, 2014 SUBJECT: 2015 PROPERTY AND WORKERS COMPENSATION INSURANCE PROGRAM PURPOSE: To present a recommendation for the property and workers compensation insurance program for the policy year beginning January 1, 2015 and ending December 31, 2015. DISCUSSION: The Village's current property and workers compensation insurance policies are set to expire on December 31, 2014. With the assistance of the Village's insurance consultant, staff sought quotes with the existing broker and insurance companies to secure coverage for 2015. There remains just a single competitive insurer for the excess workers compensation - Safety National while Federal Insurance (Chubb) has been the most competitive on cost and coverage for property. The following is a brief summary of our expiring insurance program, an analysis of the proposal received, and a summary of the insurance package being recommended by staff and its consultant. Expiring Program Attachment I provides a listing of the current schedule of insurance in force, showing the type of coverage, the carrier, policy limits, and the broker of record. Village buildings and vehicles were insured this past year by Federal Insurance (Chubb) Company. Property values on which the premium was based totaled $95,296,056. A $25,000 deductible is in place for this coverage. The annual premium was $101,750. The broker offering the coverage was Arthur J. Gallagher and Co. Excess workers compensation coverage was purchased from Safety National, which insured the Village for individual claims in excess of $600,000. There is a $1 million aggregate limit for worker compensation claims. The annual premium was $81,465. The broker again was Arthur J. Gallagher and Co. Proposal Received Nugent Consulting Group assisted the Village in securing proposals from our current broker and underwriters. Attachment II presents a summary of the 2015 insurance renewal for the upcoming policy period. A breakdown of premium by coverage type for policy year 2013 and 2014 is also included. The renewal quote for property coverage increased $2,865, or 2.8% from the prior year and totals $104,615. Insurable values during the same period increased 2.9%. The renewal quote for excess workers compensation coverage increased $6,043 or 7.4% from the prior year and totals $87,508. The self-insured retention level did not change from the prior year and remains at $600,000. The total for all premiums and commissions for selected coverage levels is $204,505, an increase of 4.55% from the 2014 premium. Property and Workers' Compensation Insurance Program December 5, 2014 Page 2 The insurance companies being recommended are very sound financially and have an excellent claims payment history. Federal Insurance is rated A++, XV (Superior) by A.M. Best, a recognized insurance company rating service. Safety National Casualty Corp. is rated A, IX (Excellent). RECOMMENDATION: It is recommended the Village purchase property and excess workers compensation insurance from Arthur J. Gallagher and Co. with premiums and broker's fees not to exceed $204,505. David O. Erb Finance Director DOE/ Attachments I:\Insurance\Renewals\2015\2015 Renewal - Property and WC.docx Attachment I VILLAGE OF MOUNT PROSPECT SCHEDULE OF INSURANCE IN FORCE December 31, 2014 Type of Coverage Carrier Deductible/ Self -Insured Retention Specific Excess Limit Aggregate Excess Limit Expiration Date Policy Number Broker Premium Property & Inland Marine Federal Insurance / Chubb $25,000 $95,296,056 none 01/01/15 35826710 Arthur J. Gallagher $101,750 Workers' Compensation Safety National Insurance Co. $600,000 Statutory $1,000,000 01/01/15 SP 4047829 Arthur J Gallagher $81,465 Self -Insured Liability Program General Liability N/A $2,000,000 $0 $0 $0 Auto Liability N/A $2,000,000 $0 $0 $0 Employment Practices Liability N/A $2,000,000 $0 $0 $0 Police Professional Liability N/A $2,000,000 $0 $0 $0 Public Officials Liability N/A $2,000,000 $0 $0 $0 (Errors and Omissions) Excess Liability High-level Excess Liability Pool $2,000,000 $13,000,000 $13,000,000 04/30/18 n/a n/a $82,282 Fiduciary Liability - Police Pension Federal Insurance / Chubb $25,000 $5,000,000 $5,000,000 08/01/15 8158-5499 Arthur J. Gallagher $11,960 Fiduciary Liability - Fire Pension Federal Insurance / Chubb $25,000 $5,000,000 $5,000,000 08/01/15 8169-8992 Arthur J. Gallagher $13,100 Public Employee Dishonesty Travelers $5,000 $500,000 none 05/01/15 105779765 Arthur J. Gallagher $2,678 Depositors Forgery Travelers $1,000 $100,000 none 05/01/15 105779765 Arthur J Gallagher Incl. in above Public Officials Bond - President Liberty Mutual $0 $100,000 $100,000 05/01/15 404009933 Arthur J. Gallagher $100 Public Officials Bond - Manager Liberty Mutual $0 $100,000 $100,000 05/01/15 404009934 Arthur J Gallagher $100 Public Officials Bond - Treasurer Liberty Mutual $0 $250,000 $250,000 05/01/15 404009932 Arthur J. Gallagher $250 Contingent Tax Interruption Federal Insurance / Chubb $25,000 $9,000,000 $9,000,000 01/01/15 35826710 Arthur J. Gallagher Incl. in Prop Employee & Retiree Health Ins. Intergovernmental Personal $30,000/ Benefit Cooperative $75,000 none none 06/30/15 n/a n/a Varied Third Party Administrators Workers' Comp Claims Administration ASC Liability Claims Administration Gallagher Bassett I:\Insurance\Schedule of Coverage0ecember 31, 2014 xlsx Attachment II VILLAGE OF MOUNT PROSPECT 2015 INSURANCE RENEWAL Percent Increase of Renewal 4.55% Property Values $ 92,717,046 $ Expiring Renewal Coverage Type / Values 2013 2014 2015 Property & Inland Marine $ 99,466 $ 101,750 $ 104,615 Excess Workers Compensation 65,720 81,465 87,508 Gallagher Fee 12,382 12,382 12,382 Total $ 177,568 $ 195,597 $ 204,505 Percent Increase of Renewal 4.55% Property Values $ 92,717,046 $ 95,296,056 $ 98,062,237 Property Deductible 25,000 25,000 25,000 Auto Physical Damage Deductible 100,000 100,000 100,000 WC Self-insured Retention - General Employees 600,000 600,000 600,000 WC Self-insured Retention - Police/Fire 600,000 600,000 600,000 ji ±Loon[ Prospcc-t Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM v r TO: DAVID STRAHL, ACTING VILLAGE MANAGER l FROM; FINANCE DIRECTOR DATE: DECEMBER 9, 2014 SUBJECT: GENERAL AND AUTO LIABILITY THIRD -PARTY CLAIMS ADMINISTRATION PURPOSE: To present a recommendation for renewal of the annual service agreement for third - party liability claims administration for the period January 1, 2015 - December 31, 2015. BACKGROUND: To assist in the administration of general and auto liability claims the Village has contracted out the service to a third -party administrator. The Village's current agreement for claims administration expires on December 31, 2014. A new agreement is needed at this time for the current provider to continue to service the Village. DISCUSSION: Gallagher Bassett (GB) is the current service provider for general and auto liability claims administration. The agreement for 2015 contains no changes to the terms and conditions from the prior year. Below is a summary of fees for the prior year and 2015. Service..................._2014 Rates._....._ 2014RatesClmaims..Administrati.on .....................................................................1......0.8.2....._ ......................................1�......._......1..25.. ............_..._.........................._......_.............................................. SIMMS Bankinq Fee :��.. 410 ...... 434 M i n i m u.m...An..�.....�� .�m........ ........m................. nual Fee 8..............................,..... ....................�..... .m..... ...... w........w®..................�.m.�m.000 8m 000 .....................__.....................Tota.L...Fee.................................._� ........ ..........._W.......... $�.9._4.92........................................................... $9....,55.9.... The claims administration fee increased 4.0% ($43) from the prior year's program. The SIMMS Banking fee is an annual flat fee assessed for maintaining the escrow and processing and making payment on claims. This service relieves the Village from having to process payments internally. The SIMMS fee increased 5.9% ($24) from the prior year's program. General and Auto Liability Third -Party Claims Administration December 9, 2014 Page 2 The Village is subject to an $8,000 minimum annual fee. Time and expense charges are invoiced against the annual fee until the balance is exhausted. When the entire annual fee is depleted, the Village will begin making payments for charges incurred in managing the open claims. Our liability ends when all the claims for a particular period are closed. Our experience with GB continues to be very positive. Communication between the Finance Department, Corporation Counsel and third -party claims administrator continues to be strong. Based on our satisfaction with the service provided and modest increase to the minimum annual fee I recommend we continue the relationship with GB. RECOMMENDATION: It is recommended we approve the agreement for GB to provide general and auto liability claims administration services during 2015 according to the proposed funding and fee schedule. David O. Erb Finance Director DOE/ Attachment I:\Insurance\GAB-GBS\Renewal - 2015.docx Village of Mount Prospect - #007474 1 LAG1/1/2015 - 1/1/2016 '�1�� i, PRICING OPTI : TIME & EXPENSE HANDLING This program is quoted at a total minimum of $9,559 (including administration and banking fees). WiltiUf�MWWN'WW mm wuww.wuuu .wu... w.W .... um..M 0n m 'm'uromoN uuuuiWwi�I�W4W4llY0N01�hWNVW,b1 NOWVWWWV�NOMONV@U4W4w�'k49tiNNtlom,A�'roWV4WW New Business Cost & Terms Revision date: 6/27/2013) Page 1 Prospect TO: FROM: DATE: SUBJ: Background Mount Prospect Public Works Department INTEROFFICE MEMORANDUM ACTING VILLAGE MANAGER DAVID STRAHL DIRECTOR OF PUBLIC WORKS DECEMBER 11, 2014 BID RESULTS FOR ISABELLA AREA SEWER IMPROVEMENTS ($8,863,088) The 2011 Comprehensive Flood Study Report identified several sewer improvement projects for areas subjected to severe, recurrent, and geographically concentrated flooding. The first phase of these improvements (Phase 1 Improvements) involved storm sewer improvements on SeeGwun Avenue, NaWaTa Avenue, Lawrence Lane, Hatlen Avenue, Hatlen Court, Busse Road, Michael Street, Verde Drive, Bonita Avenue, and Audrey Lane. The Phase 1 Improvements also included ditch regrading and culvert replacement work in the Golfview Estates residential subdivision. This work was facilitated by $2.5 million in short-term debt issued in 2012. All of this work was designed and constructed in 2013. The second, and final, phase of public sector work identified by the 2011 Comprehensive Flood Study is the construction of a relief sewer system in the Isabella Street residential area. The proposed scope of work for this project includes the installation of approximately 6,600 linear feet of relief sewer ranging in size from 15" to 84" (and appurtenances) to provide a 25 -year recurrence interval level of protection for approximately 800 single-family homes. Funding for this work has been facilitated by $10 million in general obligation bond debt. Bid Results Plans and bid documents for this project were prepared by Burns & McDonnell consulting engineers of Downers Grove, Illinois. Bids were let on October 17, 2014. A public notice was placed in a local newspaper. Thirteen (13) sewer construction firms picked up bid documents and eight (8) attended a mandatory pre-bid meeting on November 3, 2014. Bids were opened and read aloud on November 24, 2014. Six (6) bids were received: Bidder Bid Amount A Lamp Concrete Contractors $8,057,352.09 Martam Construction, Inc. $9,057,012.40 Glenbrook Excavating & Concrete, Inc. $9,290,734.73 John Ned Construction Company $10,158,791.00 Bolder Contractors, Inc. $11,111,193.27 Berger Excavating Contractors, Inc. $12,563,144.73 Page 2 of 4 Bid Results for Isabella Area Sewer Improvements ($8,863,088) December 11, 2014 The engineer's estimate of probable construction cost for this project is $10,052,725. Discussion All bids were properly signed, accompanied by appropriate bid bonds, and responsive to the bid documents. All six (6) bidders attended the mandatory pre-bid meeting. The apparent low -bidder is A Lamp Concrete Contractors of Schaumburg, Illinois (ALamp). ALamp has performed work for the Village in the past. In 2009, ALamp was the general contractor for the $2.7 million street resurfacing program. The paving work was subcontracted to Arrow Road of Mount Prospect. However, ALamp was responsible for sub -base preparation, concrete flatwork, structure adjustments, small -diameter storm sewer work, and overall project management. ALamp's performance was acceptable. Work was completed on time and below the project award amount. Review of ALamp's bid submittal revealed several concerns about their ability to complete the project. Among these concerns were disparaging references about project close-out, housekeeping, and crew turnover; a lack of experience installing 84" diameter (or larger) pipe; inordinately low bid prices for trench backfill, junction chamber reconstruction work, by-pass pumping, and overall project cost; as well as unbalanced prices for mobilization and traffic control. On December 4, 2014, staff and design engineer Burns & McDonnell met with ALamp representatives to discuss these concerns. These matters were disposed as follows: Project Close-out, Housekeeping, and Crew Turnover. ALamp acknowledged these issues and proposed they would avoid potential problems by permanently assigning their best underground construction crew to this project. They also identified the project foreman they planned to assign to this project and provided specific work references for his crews. All references were acceptable with respect to timeliness, project close-out, and housekeeping. Lack of Experience Installing 84" Diameter (or larger) Pipe. ALamp provided acceptable references for the installation of 60" diameter pipe and 48" diameter pipe. However, approximately 30% of the work in this project involves the installation of larger pipe. Notably, the work involves installing 1,000 feet of 72" diameter sewers and 2,000 feet of 84" diameter sewers. ALamp acknowledged this deficiency but advised that they presently own and can adeptly operate the trench boxes, large backhoes, and other equipment necessary to safely install the large pipe. Inordinately Low Bid Price for Trench Backfill. ALamp's bid price for trench backfill is approximately half the cost of other bidders. ALamp explained that they own a concrete recycling facility and have the capability to manufacture their own trench backfill. They Page 3 of 4 Bid Results for Isabella Area Sewer Improvements ($8,863,088) December 11, 2014 further opined that this resource differentiates them from the other bidders and facilitates lower costs for trench backfill. Inordinately Low Bid Price for Junction Chamber Work. The project involves structural concrete construction work on sewer junction chambers. ALamp's prices for this work seem low considering the scope of work involved. Particularly, staff was concerned that ALamp might not have properly assessed the trench shoring requirements and might not fully appreciate the difficulties performing partial concrete demolition work on active sewer structures. ALamp responded that they plan to subcontract this work to a structural concrete contractor with relevant experience in these niche tasks. The subcontractor is known to Burns & McDonnell as competent in this work. In addition, staff reminded ALamp that shoring designs must be signed and sealed by a structural engineer; they are also subject to Village review. Inordinately Low Bid Price for Sewer By -Pass Pumping. An important component of the project is facilitation of by-pass pumping that will enable construction on live combination sewers. ALamp's bid price for this work is substantially lower than the costs of other bidders and the engineer's estimate. ALamp acknowledged that the by-pass pumping plan must accommodate both low and peak flows without surcharging. They further explained that they own a variety of resources and were confident that they could provide a by-pass pumping plan that will satisfy Village requirements. Overall Project Cost is Exceptionally Low. ALamp's bid is approximately $1 million lower than the second -lowest bidder and almost $2 million lower than the engineer's estimate and median bid. ALamp stated that they can construct the improvements at the bid price and within the contract time without additional compensation. They also opined that vertical integration of key project components including trucking, traffic control, and trench backfill along with advantageous supplier relationships allow them to be cost competitive on this project. Mobilization and Traffic Control Prices are Unbalanced. ALamp's bid prices for mobilization and traffic control constitute approximately 25% of the project cost. This allocation of costs is unusual and could be construed as a means to be compensated at a rate that exceeds value added. Staff advised ALamp that these pay items would be paid pursuant to Illinois Department of Transportation (IDOT) standard procedures. As a consequence, much of the money attributed to these pay items will not be eligible for payout until the end of the project. ALamp acknowledged understanding of the Village's position on this matter. As a result of this meeting, staff is satisfied that aforementioned concerns can be effectively managed. It is also the opinion of staff that ALamp can construct the improvements at the price quoted and within the time frame specified in the bid documents. Page 4 of 4 Bid Results for Isabella Area Sewer Improvements ($8,863,088) December 11, 2014 Staff also recommends that the award for this project include a 10% contingency to accommodate quantity variances and unforeseen conditions commonly associated with underground work. The total recommended project award is $8,863,088 ($8,057,352.09 base bid + $805,735.91 contingency). Recommendation I recommend that the Village Board accept the lowest cost bid for the Isabella Area Sewer Improvements as submitted by Al -amp Concrete Contractors, Inc., of Schaumburg, Illinois in an amount not to exceed $8,863,088. Sufficient funds for this propo d expenditure exist in the current budget. can P. Dorsey Cc: Director of Finance David Erb Deputy Director of Public Works Jason Leib Water/Sewer Superintendent Matt Overeem Streets/Buildings Superintendent Paul Bures Village Engineer Jeff Wulbecker Administrative Superintendent Kristina Jakupovic Traffic Engineer Matt Lawrie Project Engineer Joel Michalik File TO: FROM: DATE: SUBJ: Background Mount Prospect Public Works Department INTEROFFICE MEMORANDUM ACTING VILLAGE MANAGER DAVID STRAHL DIRECTOR OF PUBLIC WORKS DECEMBER 11, 2014 CONSTRUCTION ENGINEERING FOR ISABELLA AREA SEWER IMPROVEMENTS ($672,799) Staff asked Burns & McDonnell consulting engineers of Downers Grove, Illinois for a proposal to provide specified construction engineering services for the Isabella Area Sewer Improvements Project. The scope of work requested stipulated full-time supervision of multiple construction crews for the contract term, project administration, material testing, and pre/post construction videography of the project area. Proposal Burns & McDonnell has submitted a cost proposal to provide the requested professional services at a cost not to exceed $672,799. Discussion Staff has reviewed Burns & McDonnell's proposal and determined that they have allotted adequate, qualified resources necessary to monitor all phases of work and administer the construction contract. In addition, their cost proposal includes appropriate allocations for requisite sub -contracted technical assistance including laboratory materials testing services and construction site videography. Burns & McDonnell has successfully performed a variety of civil engineering projects for the Village over the course of 20 years. Of particular relevance to this project is their experience with the 2011 Comprehensive Flood Study. Burns & McDonnell authored that study and developed its recommendations; including all of the Phase 1 and Phase 2 projects. They were also the design engineers for the Isabella Area Sewer Improvements project. Because of this experience, Burns & McDonnell is intimately familiar with the Village's sewer systems, drainage patterns, and, most importantly, the flooding problems endured by Mount Prospect residents. Page 2 of 2 Construction Engineering for Isabella Area Sewer Improvements ($672,799) December 11, 2014 The Burns & McDonnell fee is approximately 8% of the low bid cost for construction and approximately 7% of the median bid price. Typically, we expect construction engineering fees to be 8%-10% of construction costs. As such, Burns & McDonnell's fee appears reasonable. Burns & McDonnell staff, including the project manager Randy Patchett, and senior civil engineer Steve Crede have established relationships with residents that will be impacted by these proposed improvements. Consequently, it is our opinion that Burns & McDonnell is uniquely, arguably exclusively, well qualified to provide construction engineering services for these improvements. Recommendation I recommend that the Village Board accept the proposal from Burns &i McDonnell consulting engineers of Downers Grove, Illinois, to provide specified construction gineering services for the Isabella Area Sewer Improvements for a fee not to exceed $672,79 n P. Dorsey Cc: Director of Finance David Erb Deputy Director of Public Works Jason Leib Village Engineer Jeff Wulbecker Water/Sewer Superintendent Matt Overeem Streets/Buildings Superintendent Paul Bures Administrative Superintendent Kristina Jakupovic Project Engineer Joel Michalik Traffic Engineer Matt Lawrie File Mount Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: ACTING VILLAGE MANAGER DAVID STRAHL FROM: VEHICLE/EQUIPMENT MAINTENANCE SUPERINTENDENT DATE: DECEMBER 4, 2014 SUBJECT: ACCEPT NJPA BID FOR THE PURCHASE OF ONE (1) NEW 70' REARMOUNT AERIAL TRUCK WITH FLATBED BODY ($182,500.00) Background In the current budget, there are sufficient funds available to replace unit 4541. 4541 is a 1997 International 4900 with a flatbed body and 55' Aerial Lift of Connecticut (ALC) used by the Public Works Department's Forestry Division. This truck is primarily utilized for maintaining the Village's parkway tree population (tree trimming, tree removals, cabling, inspections, etc.). Our current aerial unit is well liked by many operators/mechanics, but unfortunately they went out of business several years ago. In preparation of selecting the appropriate unit, we inspected several aerial trucks from various Villages and local tree companies over the past year. The Forestry Division also wanted to make sure the aerial selected would have the over -center capability, higher working height, and greater side reach compared to our current unit. The additional 15 feet of working height and greater side reach is necessary as age and crowns of our tree population have grown larger in the seventeen years since this truck was purchased. Replacement Policy This vehicle has been evaluated utilizing our detailed comprehensive replacement policy. This policy uses a point -based criterion, which rates the following four (4) major factors to a baseline when considering a unit for replacement: Age, mileage, repair & maintenance (R&M) cost, and condition of the body/mechanical components. A point total equaling or exceeding eleven (11) out of sixteen (16) indicates that the vehicle should be recommended for replacement. This vehicle scored a total of fifteen (15) points indicating a high rating and should be placed on the highest priority to be replaced. The vehicle condition evaluation form and summary report have been attached as Exhibits A and B respectively. Additionally, I have included the life cycle cost analysis on Exhibit C, which breaks out our total ownership cost. Other Factors If the service life is extended the following repairs should be performed: ➢ Refurbish/paint rear body and rusted sheet metal $3,500.00 ➢ Replace brakes, springs and king pins $5,200.00 ➢ Aerial bull gear, cables and upper boom $20,000.00 Total estimated cost: $28,700.00 Accept NJPA Bid for the Purchase of one (1) New 70' Reaimount Aerial Truck with Flatbed Body ($182,500.00) December 3, 2014 Page 2 of 2 Discussion There is no local or State purchasing program for this vehicle. However, Public Works is part of a national joint purchase cooperative, the National Joint Powers Alliance (NJPA), through which the Village can procure this vehicle from Altec Industries. The Altec model we recommend purchasing is a LR7-60E74RM, which includes an International 4300 chassis. The International truck chassis closely matches the rest of Public Works heavy duty truck fleet. Bid Recommendation I am recommending the Village Board accept the NJPA bid Contract Award #031014 and authorize the purchase of one (1) new 70' Rearmount Aerial Truck with Flatbed Body, from Altec Industries, of Birmingham, Alabama at a cost not to exceed $182,500.00. The NJPA Contract is publicly bid and satisfies the public bidding requirements of the Village of Mount Prospect Purchasing Policy. Funds for this proposed purchase are funded through the Vehicle Replacement Fund and are available in the 2014 budget. The vehicle being replaced will be sold through the GovDeals.com Internet auction. ?mes R. Breitzman Vehicle/Equipment Superintendent I concur. Sean P. of Public Works JB Attachments C: Deputy Director of Public Works Jason Leib H:\Administration\BIDS\RESULTS\4541-NJPA BID Purchase, 12-2014.docx Unit # 4541 Year: 1997 Hours: 13,165 EXHIBIT A Village of Mount Prospect Vehicle/Equipment Condition Evaluation Form Assigned Dept. /Div. Public Works/Forestry Make: International Model: 4900 Mileage: 58,200 Date of Evaluation: 12/2/14 Performed By: Jim Breitzman System Diagnosis Estimated Repair Cost Engine Fair Possible rebuild in future Transmission Fair Possible rebuild in future Differential Good Exhaust System Good Cooling System Good Brakes Fair -Shoes, Drums $1,200.00 Tires Good Steering Fair -King Pins $1,000.00 Suspension Fair -Springs $3,000.00 HVAC Good Electrical Good Body/Frame Fair-Refurbish/Paint $3,500.00 Interior Good Other- ALC Aerial Total Estimated Repair Cost Fair -Bull Gear, Drive Cables, Fiberglass Upper Boom $20,000.00 $28,700.00 Diagnosis Code Code Description Good Systems are functioning well and no major repairs are expected. Fair Some major repairs are needed, but unit can remain in service a little longer in current condition. [P-0or Major repairs are required as soon as possible to ensure unit safety and reliability. 1 *3 0111 i Village of Mount Prospect Vehicle/Equipment Evaluation Summary Report Unit # 4541 Assigned Dept. /Div. Public Works/Forestry Year: 1997 Make: International Model: 4900 Mileage: 58,200 Date of Evaluation: 12/2/14 Performed By: Jim Breitzman Ratings: Unit age: 17 Base Policy Age: 15 Mileage/Hrs: 58,200/13,165 Base Policy Mileage/Hrs: 50,000/9,000 Maintenance Cost: Repair and Maintenance Cost: $ 68,836 _ Purchase Price: $ 97,005 Repair and Maintenance Percentage of Purchase Price: 71 % Condition Evaluation: (attach Vehicle Condition Evaluation Form) Estimated Repair Cost: $ 28,700 - Current Book Value: $ 12,000 Repair Cost Percentage of Current Book Value: 239 % Total Ownership Cost Per Mile: (Lifetime Fuel + R&M + Purchase Price) $ 202,641 Less Salvage Value $ 12,000 Net Lifetime Costs $ 190,641 Divided by Mileage Hours 58,200 Operating Cost Per Mile/Hour $ 3.28 Points: 3 Points: 4 Points: 4 Points: 4 otal Points: 15 Comments and other considerations: This vehicle has operated 13,165 hours during its lifetime which equals 394,950 engine miles. Superintendent's recommendation: This vehicle has well exceeded its life expectancy and major repairs will be needed if service life is extended any longer based on condition. Total Point Evaluation: A point total equaling or exceeding eleven (11) indicates that the vehicle should be recommended for replacement. The point total is used to rank its replacement priority. The larger the number the higher the replacement priority will be. EXHIBIT C Village of Mount Prospect December 2014 Vehicle/Equipment Life Cycle Cost Analysis Vehicle/Equipment Number - 4541 (1997 International 4900, 55' Aerial) --O—Total Ownership Costs Life Cycle Costs —A— Total R&M —0 Total Fuel ■ - Market Value $200,000.00 �,,� $202,641.00 $150,000.00 N Year Total Ownership Cost - Salvage Value / Mileage = Cost Per Mile to Operate $202,641.00 $12,000.00 58,200 $3.28 Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: ACTING VILLAGE MANAGER DAVID STRAHL FROM: VEHICLEXQUIPMENT MAINTENANCE SUPERINTENDENT DATE: DECEMBER 9, 2014 SUBJECT: RFP RESULTS FOR ALTERNATIVE FUEL STUDY ($39,135.00) BACKGROUND In October 2014, Public Works requested proposals for an alternative fuel study of the Village's municipal fleet in an effort to examine the potential for fuel expenditure reductions and environmental improvements utilizing alternative fuels. The following scope of work was requested in the RFP: • Assessment of the Village's fleet, define the feasibility and advantages of conversion to an alternate fuel without sacrificing safety and service. A complete list of vehicles will be provided upon contract approval. • Alternative fuel sources should include compressed natural gas, liquid petroleum gas, all electric and hybrid. • Feasibility of constructing an alternative fueling station in the Village and the estimated cost to construct. Include the time needed to fuel a single vehicle for various fuels. • Provide information of any grant, rebate or incentive programs offered by the State or Federal government. • Provide cost analysis to retrofit vehicles for alternative fuels. • Identify any necessary alterations and associated costs needed to the Public Works vehicle maintenance area to accommodate the repair and maintenance of alternative fueled vehicles. • Estimate the regular maintenance costs of a fleet utilizing alternative fuels. • Define impacts of converting to alternative fuels on drivers/mechanics daily routines and changes associated with alternative fuel vehicles. o Fueling (charging) logistics based on Village's vehicle use o Impacts on driver's /Village's daily processes o Repair and maintenance, including training • Define safety considerations for use of alternative fuels • Define matrix of investment requirements for Village Fleet needs: o Vehicle change alternatives (fuel type, convert or buy new) o Fueling infrastructure options o Operation and maintenance facilities o Vehicle repair and maintenance Page 2 of 3 RFP Results for Alternative Fuel Study ($39,135.00) December 9, 2014 o Site candidates o Utility infrastructure • Model Return on Investments (RO" for 111'�Icycic cost matrix of vehicles. and infrastructures for Village Fleet • Compile data, analyses and recommendation into Final Study Report • All recommendations should include data indicating the expected return on investment. Staff requires assistance from a qualified and experienced fleet consultant to determine the advantages of alternative fuel sources for the purpose of reducing the overall life cycle cost of our fleet. Ultimately, the selected consultant will create a final report denoting opportunities for alternative fuel implementation and recommendation as the most advantageous course of action for the Village. This report will be presented to the Village Board in the spring 2015. REQUEST FOR PROPOSALS Chapter 4 of the village's purchasing policy and procedures manual states: 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. Pursuant to this policy, staff requested proposals for an alternative fuel study from eight (8) qualified consultants. We received five (5) responses from Mercury Associates of Rockville, MD, Chatham Consulting, Inc. of Chatham, NJ, Energetics of Columbia, MD, Green Ways 2Go of Park Ridge, IL, and MCB Fleet Management of St. Simmons, GA. These consultants submitted documentation that indicated their ability to perform the necessary services. All of the consultants also included references for past work and qualifications of personnel who will be analyzing our fleet and suggesting any opportunities for alternative fuel implementation. All five (5) firms were evaluated and selected top two (2) interviewed utilizing the following weighted criteria: Criteria Response to proposal request Points 10 Education and experience of key personnel 25 Project understanding, implementation plan, and methods 25 Experience on similar projects 25 Total cost of proposed study 15 Total 100 Page 3 of 3 RFP Results for Alternative Fuel Study ($39,135.00) December 9, 2014 With a maximum best score of 100 points possible, the proposals and interviews were rated yielding the following results: Discussion Staff established that Mercury Associates, Inc. was the most qualified firm that can perform the necessary services within budget limits. It is noteworthy that Mercury Associates has experience working with local Illinois government fleets, which includes the Cities of Springfield, Lake Forest, Highland Park, Kane County and the Village of Buffalo Grove. Their cost proposal for the specified work is a not to exceed amount of $39,135.00. This amount includes all professional services and out-of-pocket expenses and is based on 235 hours of work. It is the opinion of staff that the work hours allotted are reasonable, including the rate of $150- $200/hour is competitive. RECOMMENDATION I recommend that the Village Board accept the proposal for the Alternative Fuel Study from Mercury Associates, Inc. of Rockville, MD in an amount not to exceed $39,135. 'ames R. Breitzman Vehicle/Equipment Superintendent JB C: Deputy Director of Public Works Jason Leib H:\Administration\ALT FUEL STUDY PROPOSALS\RFP Results for Alt Fuel Study, 12-2014.docx