Loading...
HomeMy WebLinkAbout5. NEW BUSINESS 2/21/06 l Mount Prospect Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS ~b IJ~ z./2.I oe. FROM: PROJECT ENGINEER DATE: FEBRUARY 15, 2006 SUBJECT: FEBRUARY SAFETY COMMISSION MEETING TRAFFIC STUDY AT THE INTERSECTION OF SYCAMORE LN & CEDAR I.; The Safety Commission transmits their recommendation to approve Stop signs on Cedar Lane at Sycamore Lane. With the recommendation to add Stop signs on Dogwood Lane at Sycamore Lane, Staff noted that this intersection would be the only 4-leg intersection in the neighborhood without traffic control. Concerned this lack of consistency could increase the potential for collisions, Staff decided to study this uncontrolled intersection to determine if traffic control signs are warranted. In October 2005, Staff performed a traffic study of the intersection. Traffic volume and speed data were collected, crash reports were reviewed and measurements were taken at the intersection. Results show there are approximately 850 vehicles per day (700 on Sycamore Lane and 150 on Cedar Lane) that enter the intersection. There have been three recorded crashes at the intersection over the past three years. Average recorded speeds along both streets ranged from 20-24mph. Finally, there are not any sight obstructions immediately adjacent to the intersection but there is a private evergreen tree at the northwest corner and a private fence at the southeast corner near the intersection that may limit motorist visibility. This issue was discussed at the February 13,2006 Safety Commission Meeting. There was one resident in the audience to speak on this issue. The Safety Commission was reminded and the resident informed of the Village's initiative to review intersection traffic control neighborhood by neighborhood. It was also discussed that the Village Board has recently allowed Staffto study individual intersections again but that any decision would be an interim solution until the entire neighborhood was studied. The Safety Commission determined Stop signs on the minor street (Cedar Lane) would be the appropriate traffic control for the intersection based on Staff's study and to be consistent with the neighborhood program. By a vote of 7-0, the Safety Commission recommends to add Stop signs for eastbound and westbound Cedar Lane at Sycamore Lane (Section 18.2004A of the Village Code). cc: Village Clerk Lisa Angell h: lengineering\trajJiclsafecomm\recs&min!feb06rec2.doc Please include this item on the February 21 st Village Board Meeting Agenda. Enclosed are the Safety Commission Minutes from the meeting as well as a location map for your reference. ~-~{-~ Matt~ ~ .~._~-~----- ._------.~~"""=""'==.".,""".="'"..,."" 2/14/06 ORDINANCE NO. AN ORDINANCE AMENDING ARTICLE XX OF CHAPTER 18 ENTITLED 'TRAFFIC CODE' OF THE VILLAGE CODE OF MOUNT PROSPECT BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: That Section 18.2004 of "Schedule IV - Stop and Yield Signs" of Chapter 18 of the Village Code of Mount Prospect, as amended, is hereby further amended by adding thereto in proper alphabetical sequence so that hereafter said Section 18.2004.A of the Village Code of Mount Prospect shall include the following: "Name of Street "Cedar Lane Direction of Traffic Movement East and Westbound At Intersection With Sycamore Lane." SECTION TWO: That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of ,2006. Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk H:IClKOlfilesIWINIORDINANCICH 18 slop sign sycamorefeb 2006.doc -.-V-'--""----.,_'___.._..T___._.~.~'.='.e,.._.,,"""''''''.-,,"''=,=,"',=,,,.~"",.:';,,,;O'.":'C,,:"'=.,,,_ [VILLAGE O~ MOUNT PROSPECT ] .' . . . . .. o (k: w ~ <( l? ~ V') W ~ SYCAMORE LANE & CEDAR LANE TRAFFIC STUDY . EXISTING STOP SIGN e RECOMMENDED STOP SIGN ..'mr~l-m'... ,.... .... LiJ BARBERRY LN BARBERRY LN ."..... / INTERSECTION ...\.. STUDIED: ' '-.",.--.. '=,=.e '_'m___~-, .: . . Z -I >-. (k: (k:' W CO -I => ~ Z -I, >- Ck: Ck: W co ~ w Z . . . . Z -I W (k: o ~ <( U >- V') , CEDARLN DOGWOOD LN GREENWOOD DR LINDEN LN 'fJ EUCLID A V f Z -I >- (k: Ck: W co Ck: <( co [I] . o Ck: u.. -I o ~ Mount Prospect Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS ~b~~ ~z.t ~ FROM: PROJECT ENGINEER DATE: FEBRUARY 15,2006 SUBJECT: FEBRUARY SAFETY COMMISSION MEETING TRAFFIC STUDY AT TIlE INTERSECTION OF SYCAMORE LN & DOGWO The Safety Commission transmits their recommendation to approve Stop signs on Dogwood Lane at Sycamore Lane. A serious collision at this uncontrolled intersection in September 2005 prompted the Village Manager's Office to direct the Engineering Staff to determine if traffic control signs are warranted. In October 2005, Staff performed a traffic study of the intersection. Traffic volume and speed data were collected, crash reports were reviewed and measurements were taken at the intersection. Results show there are approximately 900 vehicles per day (700 on Sycamore Lane and 200 on Dogwood Lane) that enter the intersection. There has been one recorded crash at the intersection over the past three years. Average recorded speeds along both streets ranged from 21-24mph. Finally, there is a bush located in the public right-of-way at the southwest comer of the intersection that is considered a sight obstruction for motorists per Village Code regulations. This issue was discussed at the February 13,2006 Safety Commission Meeting. There was one resident in the audience to speak on this issue. The Safety Commission was reminded and the resident informed of the Village's initiative to review intersection traffic control neighborhood by neighborhood. It was also discussed that the Village Board has recently allowed Staff to study individual intersections again but that any decision would be an interim solution until the entire neighborhood was studied. The Safety Commission determined Stop signs on the minor Street (Dogwood Lane) would be the appropriate traffic control for the intersection based on Staff's study and to be consistent with the neighborhood program. By a vote of 7-0, the Safety Commission recommends to add Stop signs for eastbound and westbound Dogwood Lane at Sycamore Lane (Section 18.2004A of the Village Code). Please include this item on the February 21 sl Village Board Meeting Agenda. Enclosed are the Safety Commission Minutes from the meeting as well as a location map for your reference. cc: Village Clerk Lisa Angell h: lengineeringltrafficlsafecommlrecs&min lfeb06rec1.doc c, ~ Vl1.LAGE OF MOUNT PROSPECT] . '. . .. .,'" ' .. o 0:::: W . I- <( o l- V) W ~ SYCAMORE LANE & DOGWOOD LANE TRAFFIC STUDY '., I . EXISTING STOP SIGN \~ e RECOMMENDED STOP SIGN dnn- LiJ ,,__,__.. n' .n._.._', BARBERRY LN <- . INTERSECTION . STUDIED ' -- -_m___-:e. . . . . . . . Z Z Z .....J .....J .....J >- W >- G::: 0:::: 0:::: 0:::: 0 0:::: w W CO ~ CO ~ <( .....J W U ::) z ~ >- V) BARBERRY LN CEDARLN DOGWOOD LN .w _~""_"'__"~'.',_,_",_,_, "_ ._.__'._..,_.., GREENWOOD DR [IJ EUCLID A V Z .....J >- 0:::: 0:::: w CO 0:::: <( CO . o 0::: L1.. .....J o ~ 2/14/06 ORDINANCE NO. AN ORDINANCE AMENDING ARTICLE XX OF CHAPTER 18 ENTITLED 'TRAFFIC CODE' OF THE VILLAGE CODE OF MOUNT PROSPECT BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: That Section 18.2004 of "Schedule IV - Stop and Yield Signs" of Chapter 18 of the Village Code of Mount Prospect, as amended, is hereby further amended by adding thereto in proper alphabetical sequence so that hereafter said Section 18.2004.A of the Village Code of Mount Prospect shall include the following: "Name of Street "Dogwood Lane Direction of Traffic Movement East and Westbound At Intersection With Sycamore Lane." SECTION TWO: That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of ,2006. Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk H:ICLKOlfilesIWINIORDINANCICH 18 stop sign Dogwoodsycamorefeb 2006.doc Director Glen R. Andler Mount Prospect ~ Deputy Director Sean P. Dorsey Mount Prospect Public Works Department 1700 W. Central Road, Mount Prospect, Illinois 60056-2229 MINUTES OF THE MOUNT PROSPECT SAFETY COMMISSION DRAFT CALL TO ORDER The Regular Meeting of the Mount Prospect Safety Commission was called to order at 7:00 p.m. on Monday, February 13, 2006. ROLL CALL Present upon roll call: Chuck Bencic John Keane Carol Tortorello Marshall Petersen Buz Livingston Ken Lee Paul Bures Matt Lawrie Absent: Kevin Grouwinkel Mark Miller Others in Attendance: Al Schovanec APPROVAL OF MINUTES Chairman Vice Chairman Commissioner Commissioner Fire Department Representative Police Department Representative Public Works Representative Traffic Engineer - Staff Liaison Commissioner Commissioner 1112 Sycamore Lane Commissioner Keane, seconded by Commissioner Tortorello, moved to approve the minutes of the regular meeting of the Safety Commission held on December 12,2005. The minutes were approved by a vote of 7-0. . CITIZENS TO BE HEARD There was. no one in attendance that spoke on an issue not on the agenda. Phone 847/870-5640 - ._'---'-~""-'~""='~"'"'~"'~"1~ Fax 847/253-9377 www.mountprospect.org OLD BUSINESS None. NEW BUSINESS A) TRAFFIC STUDY AT THE INTERSECTION OF SYCAMORE LN & DOGWOOD LN 1) Background Information The intersection of Sycamore Lane and Dogwood Lane is uncontrolled. Petition information was forwarded to the owner at 1305 Dogwood Lane in July 2002, however, interest from the neighborhood was not generated and a petition was never returned to the Village to perform a study. A rollover crash occurred at this intersection in September 2005 which prompted a reaction from concerned residents to review this intersection for traffic control signs. A year ago the Village Board of Trustees had directed Staff to no longer present traffic control studies of individual intersections. Rather, a new program has begun that reviews intersection traffic control on a neighborhood-wide basis. Due to the severity of the recent crash and because this neighborhood will not be studied in the near future, Staff was instructed by the Manager's Office to perform a study and provide recommendations. The Village Board of Trustees recently allowed Staff to again study the traffic control at individual intersections with the understanding that any decisions would be an interim solution until the entire neighborhood could be reviewed. 2) Staff Study a) Crashes A search of the crash reports by the Police Department indicated: Year 2002 (Oct) 2003 2004 2005 Number of Accidents . o o o 1 The crash report indicated the eastbound driver accelerated through the intersection believing she could avoid a crash. The northbound driver did not see the other vehicle until right before impact. The northbound driver told police she had just stopped at a stop sign at the intersection one block prior. The cause of the crash was the eastbound driver failing to yield to a vehicle on the right. The northbound driver may have contributed by assuming she had the right-of-way and not paying attention before entering the intersection. b) SpeedData Representative speed studies were performed at the intersection between October 4th and 7th. The average and 85th percentile speeds are as follows: Northbound Sycamore Lane Southbound Sycamore Lane Eastbound Dogwood Lane Westbound Dogwood Lane average 23 mph 24 mph 21 mph 21 mph 85th % 29 mph 30 mph 29 mph 28 mph Phone 847/870-5640 Fax 847/253-9377 www.mountprospectorg The speed limit on Sycamore Lane and Dogwood Lane is 25mph. Based on the results, there doesn't appear to be an overall speeding problem. However, the data did show some motorists did drive above the speed limit as is evident on most residential streets. c) Volume Data Traffic volume data was gathered between October 4th and 7th. Based on the results, there are approximately 900 vehicles per day that enter the intersection. 700 vehicles travel on Sycamore Lane and 200 vehicles on Dogwood Lane. The peak hour of the day (typically 7am-8am) experiences approximately 80 vehicles that enter the intersection. d) Traffic Control Signs at Adiacent Intersections Traffic control signs adjacent to the intersection are as follows: Sycamore Lane & Cedar Lane (north) - uncontrolled Sycamore Lane & Greenwood Drive (south) - 4-way Stop signs Barberry Lane & Dogwood Lane (east) - uncontrolled Westgate Road & Dogwood Lane (west) - Stop sign on Dogwood Lane e) Sight Obstructions Based on an inspection of the area, the southwest comer has landscaping (bushes) close to the intersection. The bushes are taller than three feet and, therefore, would qualify per Village Code as a sight obstruction for motorists. Even though the bushes are not wide, they may make it difficult for eastbound motorists to see northbound vehicles and vice-versa. Since this intersection currently is uncontrolled, the safe approach speed on this street should be greater than the measured 85th percentile speed to remain uncontrolled. The safe approach speed is the speed at which a typical motorist when seeing an approaching vehicle on the cross street can safely stop their vehicle before reaching the intersection to avoid a crash. If the safe approach speed is greater than the measured 85th percentile speed and there is not a history of crashes, it can be appropriate to leave the intersection uncontrolled. If the safe approach speed is greater than the measured 85th percentile speed but there are concerns such as crashes, Yield signs would be an appropriate solution. If the safe approach speed is less than the measured 85th percentile speed, Stop signs would be appropriate to define the right-of- way. These standards come from the Manual on Uniform Traffic Control Devices (MUTCD). Staffs measurements reveal that the bushes and houses limit the visibility for motorists approaching the intersection such that a vehicle must travel less than the measured 85th percentile speed in order to have enough time to make a safe decision. f) Evaluation All-Way Stop Signs- All-way Stop signs are normally warranted at intersections where there is a significant amount of vehicles and pedestrians, many crashes, or severely restricted view. They are typically placed at the intersection of two collector streets or two minor arterial streets. Sycamore Lane and Dogwood Lane are classified as local streets. The peak hour of the day experiences approximately 80 vehicles entering the intersection. In order to meet the criterion according to the MUTCD, the volume entering the intersection from the major street approaches (total of both approaches) is to average 300 vehicles per hour for any 8 hours of the day and 200 vehicles per hour for the same 8 hours from the minor street approaches. Therefore, it does not meet the volume criterion. There has been 1 recorded crash over the past 3 years. In order to meet the criterion for an all-way stop sign installation according to the MUTCD, there are to be 5 crashes in a 12- month period. It does not meet the crash rate criterion. Phone 847/870-5640 Fax 847/253-9377 www.molJntprospectorg Based on an inspection, the southwest corner has a small amount of landscaping close to the intersection that could limit the visibility for motorists to see vehicles on the cross street. While the landscaping is considered a sight obstruction per the Village Code regulations, Staff would not conclude the intersection as having a "severely restricted view" where it would necessitate motorists to have to stop in all four directions. Based on the data collected in the traffic study, Staff would not recommend all-way Stop signs at this intersection. One Street Stop Signs - Stop signs on one street are normally warranted at intersections where the criteria for an all- way. Stop sign installation is not met but where a full stop is necessary at all times on one street in order to clarify the right-of-way. With this application Stop signs are typically installed on the . minor street which, for this case, would be Dogwood Lane. When considering intersection traffic control other than all-way Stop signs, typical engineering practice is to first determine the safe approach speed for each direction. If a motorist must travel at a speed less than the measured 85th percentile speed when approaching an intersection because of a sight obstruction in order to have enough time to avoid a crash, Stop signs should be considered rather than Yield signs. Otherwise, an uncontrolled intersection or Yield signs should be considered depending on the crash history. For this case, the safe approach speed for all four directions is less than the measured 85th percentile speed. Therefore, leaving the intersection uncontrolled or adding Yield signs are not recommended. Trimming or removing the bushes at the southwest corner would improve the visibility but the safe approach speed would still be less than the measured 85th percentile speed because of the close proximity of the houses to the intersection. Therefore, Stop signs on the minor street are recommended to clarify the right-of-way. The recent crash also supports the need for traffic control. For the eastbound driver accelerating through the intersection, the limited sight distance may not have given her adequate time to make a safe decision and avoid a collision. For the northbound driver who stopped at a stop sign the intersection prior, she may have assumed she had the right-of-way since most of the 4-intersections in the neighborhood have some sort of traffic control. The addition of Stop signs on the minor street will address the limited sight distance issue and provide a higher level of standardization of traffic control in the neighborhood. This decision is also consistent with the evaluation process currently being used in the program to determine traffic control at intersections on a neighborhood-wide basis. 3) Recommendation Based on the traffic study, Staff recommends: II- installation of Stop signs on Dogwood Lane at Sycamore Lane II- trimming or removal of the bushes at the southwest corner of the intersection 4) Discussion Al Schovanec, 1112 Sycamore Lane, commented on speeding vehicles along Sycamore Lane. He was appreciative of the study and suggested the Village also review the intersection of Sycamore Lane and Barberry Lane. Chairman Bencic asked Traffic Engineer Lawrie to present the study and recommendations to the Safety Commission. Traffic Engineer Lawrie reviewed both studies since the intersections are adjacent to each other. P!'1one 847/870-5640 Fax 847/253-9377 www.mountprospect.org Commissioner Petersen commented that the vehicles involved in the recent crash appeared to be speeding based on the results. He also agreed that the bush at the southwest comer could be trimmed to improve the visibility. This prompted a discussion of sight obstructions at other intersections in the neighborhood. Commissioner Keane, seconded by Mr. Bures, moved to approve the recommendations of the Village Traffic Engineer. The motion was approved by a vote of 7-0. B) TRAFFIC STUDY AT THE INTERSECTION OF SYCAMORE LN & CEDAR LN 1) Background Information The intersection of Sycamore Lane and Cedar Lane is uncontrolled. With the recommendation to insta)) Stop signs on Dogwood Lane at Sycamore Lane, this would be the only 4-leg intersection in the area that would be uncontrolled. This intersection is similar in characteristic to Sycamore Lane and Dogwood Lane. By installing traffic control signs at one intersection and not reviewing the adjacent uncontrolled intersection, there is the potential for increasing crashes at the only remaining uncontrolled intersection in the neighborhood. To provide a higher level of standardization and to better meet driver expectation, this study is being done simultaneous to the traffic study at Sycamore Lane and Dogwood Lane. 2) Staff Study a) Crashes A search of the crash reports by the Police Department indicated: Year 2002 (Oct) 2003 2004 2005 Number of Accidents o 2 1 o All three crashes were right angle crashes indicating limited sight distance may have been a factor. This would result in insufficient time to avoid a co))ision. b) Speed Data Representative speed studies were performed on Cedar Lane between May 17th and 20th as part of the program reviewing residential speed limits and on Sycamore Lane between October 4th and 7th. The average and 85th percentile speeds are as follows: Northbound Sycamore Lane Southbound Sycamore Lane Eastbound Cedar Lane Westbound Cedar Lane average 23 mph 24 mph 22 mph 20 mph 85th % 29 mph 30 mph 29 mph 27 mph The speed limit on Sycamore Lane and Cedar Lane is 25mph. Based on the results, there doesn't appear to be an overall speeding problem. However, the data did show some motorists did drive above the speed limit as is evident on most residential streets. Phone 847/870-5640 Fax 847/253..9:377 www.mountprospocl.org - ~_".m'_..~__'~.~<<.,~.~_..,."~,_~~".",,..,-.--~___________,_._,_.---'---~-'~~"~-=-,~,,",""=""=,"',C_''''''"''"=~''''''~~~________'_ c) Volume Data Traffic volume data was gathered on Cedar Lane between May 17th and 20th and on Sycamore Lane between October 4th and 7th. Based on the results, there are approximately 8S0 vehicles per day that enter the intersection. 700 vehicles travel on Sycamore Lane and ISO vehicles on Cedar Lane. The peak hour of the day (typically 7am-8am) experiences approximately 80 vehicles that enter the intersection. d) Traffic Control Signs at Adiacent Intersections Traffic control signs adjacent to the intersection are as follows: Sycamore Lane & Barberry Lane (north)- Stop sign on northbound Sycamore Lane Sycamore Lane & Dogwood Lane (south) - uncontrolled Barberry Lane & Cedar Lane (east) - uncontrolled Barberry Lane & Cedar Lane (west) - uncontrolled e) Sight Obstructions Based on an inspection of the area, the northwest comer has low-lying landscaping close to the intersection. The ground cover is shorter than three feet and, therefore, would not qualify per Village Code as a sight obstruction for motorists. There is, however, an evergreen tree and bush a little further from the intersection at the same comer that may make it difficult for eastbound motorists to see southbound vehicles and vice-versa. The southeast comer has a four foot tall fence and bushes near the house that may limit visibility as well. Since this intersection currently is uncontrolled, the safe approach speed on this street should be greater than the measured8Sth percentile speed to remain uncontrolled. The safe approach speed is the speed at which a typical motorist when seeing an approaching vehicle on the cross street can safely stop their vehicle. before reaching the intersection to avoid a crash. If the safe approach speed is greater than the measured 8Sth percentile speed and there is not a history of crashes, it canbe appropriate to leave the intersection uncontrolled. If the safe approach speed is greater than the measured 8Sth percentile speed but there are concerns such as. crashes, Yield signs would be an appropriate solution. If the safe approach speed is less than the measured 8Sth percentile speed, Stop signs would be appropriate to define the right- of-way. These standards come from the Manual on Uniform Traffic Control Devices (MUTCD). Staffs measurements reveal that the evergreen tree, bushes, fence and houses all contribute to limiting the visibility for motorists approaching the intersection such that a vehicle must travel less . than the measured 8Sth percentile speed in order to have enough time to make a safe decision. f) Evaluation All-Way Stop Signs- All-way Stop signs are normally warranted at intersections where there is a significant amount of vehicles and pedestrians, many crashes, or severely restricted view. They are typically placed at the intersection of two collector streets or two minor arterial streets. Sycamore Lane and Cedar Lane are classified as local streets. The peak hour of the day experiences approximately 80 vehicles entering the intersection. In order to meet the criterion according to the MUTCD, the volume entering the intersection from the major street approaches (total of both approaches) is to average 300 vehicles per hour for any 8 hours of the day and 200 vehicles per hour for the same 8 hours from the minor street approaches. Therefore, it does not meet the volume criterion.' Phone 847/870-5640 Fax 847/253-9377 www.rno untp rospect.or~l There have been 3 recorded crashes over the past 3 years. In order to meet the criterion for an all-way stop sign installation according to the MUTCD, there are to be 5 crashes in a 12- month period. It does not meet the crash rate criterion. Based on an inspection, the northwest and southeast comers have landscaping that could limit the visibility for motorists to see vehicles on the cross street. While the landscaping is considered a sight obstruction per the Village Code regulations, there is not any immediately adjacent to the intersection. Therefore, Staff would not conclude the intersection as having a "severely restricted view" where it would necessitate motorists to have to stop in all four directions. Based on the data collected in the traffic study, Staff would not recommend all-way Stop signs at this intersection. One Street Stop Signs - Stop signs on one street are normally warranted at intersections where the criteria for an all- way Stop sign installation is not met but where a full stop is necessary at all times on one street in order to clarify the right-of-way. With this application Stop signs are typically installed on the minor street which, for this case, would be Cedar Lane. When considering intersection traffic control other than all-way Stop signs, typical engineering practice is to first determine the safe approach speed for each direction. If a motorist must travel at a speed less than the measured 85th percentile . speed when approaching an intersection because of a sight obstruction in order to have enough time to avoid a crash, Stop signs should be considered rather than Yield signs. Otherwise, an uncontrolled intersection or Yield signs should be considered depending on the crash history. For this case, the safe approach speed for all four directions is less than the measured 85th percentile speed. Therefore, leaving the intersection uncontrolled or adding Yield signs are not recommended. Trimming or removing the evergreen tree and bushes at the northwest and southeast comers would improve the visibility but the safe approach speed would still be less than the measured 85th percentile speed because of the close proximity of the houses to the intersection. Therefore, Stop signs on the minor street are recommended to clarify the right- of-way. The recent crashes also support the need for traffic control. With all three being right angle crashes, the limited sight distance may not give adequate time to make a safe decision and avoid a collision. The addition of Stop signs on the minor street will address the limited sight distance issue and provide a higher level of standardization of traffic control in the neighborhood. This decision is also consistent with the evaluation process currently being used in the program to determine traffic control at intersections on a neighborhood-wide basis. If approved, Stop signs on Cedar Lane and Dogwood Lane at their intersections with Sycamore Lane would be installed allowing for 800' of uninterrupted flow along Sycamore Lane from Barberry Lane to Ironwood Drive. Staff does not believe this is a long length that promotes a cut through route. Rather, it defines the right-of-way along a street (Sycamore Lane) that has four to five times the amount of traffic compared to the minor streets. By controlling the minor street at these intersections, Staff anticipates a greater adherence to the Stop signs as opposed to installing the signs on Sycamore Lane. 3) Recommendation Based on the traffic study, Staff recommends: 110 installation of Stop signs on Cedar Lane at Sycamore Lane Phone 847/870-5640 Fax 847/253-9377 www.mountprospect.org 4) Discussion Traffic Engineer Lawrie presented the study to the Safety Commission concurrently with the previous item. Officer Lee commented that he thought the recommendations were a great idea. There was no further discussion. Commissioner Keane, seconded by Commissioner Tortorello, moved to approve the recommendations ofthe Village Traffic Engineer. The motion was approved by a vote of 7-0. COMMISSION ISSUES Traffic Engineer Lawrie told the Safety Commission that next month's meeting will be held at Lincoln Junior High School. The See-Gwun Avenue speed hump project will be the only item on the agenda. He also mentioned that the Open Houses for the neighborhood program will be held at Prospect High School at the end of March or early April. The exact dates will be confirmed in the coming weeks. ADJOURNMENT With no further business to discuss, the Safety Commission voted 7-0 to adjourn at 7:30 p.m. upon the motion of Commissioner Keane. Commissioner Petersen seconded the motion. ~~~ Matthew P. Lawrie, P.E. Traffic Engineer h:\engineering\traffic\safecomm\recs&min\feb06min.doc Phone 847/870-5640 Fax 847/253-9377 WVlfl.V. mo untprosped.o r~l M....\...i........O'.. ;u.. · .n. ..t P'.'ro.s< p..... ..e' c. .t.... F.... '';;r. ." ~'" n.;.... ,..e' "<'1>' .'.........';al': ~ri. v' tmf' c :e;'n" i' ...~. I;' :"- ", ': ,',l, - -', " .. , '" ,.., ' '.1': '" \.(,: :r, _~.. .. :.::' 1 " f'i t': ~" ), " :"l, ,,:; ;0 ~, " ... ..',' ,". -.. ',',. " -, ."- .....,. - / .,~,.,,-,...'.' .,"" ,.,...>' "n~, ~_ ,,-:.. '-'.- ~", ," __.....'.. ...._'. "'",, ,.,',. Interoffice Mem.@ SUBJECT: GLENVIEW AUTOMATIC AID TO: FROM: MICHAEL E. JANONIS, VILLAGE MANAGER MICHAEL J. FIGOLAH, FIRE CHIEF B JANUARY 12, 2006 DATE: Attached is an Automatic Aid agreement for consideration that I recommend entering into with the Village of Glenview. Currently we have automatic aid agreements with Arlington Heights, Prospect Heights, Wheeling, Elk Grove Village, and Des Plaines. We do not currently have an agreement with Glenview. The attached provides a formal agreement to provide manpower and equipment to emergency incidents into specific areas within both communities. This agreement is designed to be reciprocal as far as providing approximately the same amount of responses to each other, which is estimated to be 20. As a matter of clarification there is a difference between Automatic Aid and Mutual Aid. The following is a brief description of mutual and automatic aid and how they both evolved. Mutual Aid Mutual aid is a formal plan that was developed in 1970 to provide assistance to a community when their emergency response capabilities were overwhelmed. The initial plan was to provide fire apparatus and crews to assist a fire department battling a fire that was beyond their capabilities. Over the years this plan has expanded to include ambulance assistance when all of the fire department ambulances are all out on simultaneous incidents or when a mass casualty incident occurs. Mutual aid assistance is also available for Technical Rescue Teams (high-rise & below grade), Scuba Teams, Hazardous Materials Teams, Fire Inspectors, Fire Chiefs and special equipment. Automatic Aid Automatic aid is an enhancement of the mutual aid system. Automatic aid is a predetermined plan for responding apparatus and crews to another community for routine responses. The apparatus from another community responds even if the host community has apparatus crews available in its own stations, but further away. The idea of this plan I:\MF-Glenview Auto-Aid Agreement-MEJ.doc D is to provide the stricken citizen with the fastest response of apparatus and manpower regardless of the name on the side of the vehicle. Rather than responding an engine from our Fire Station #12 to the far north end of the community, a Glenview engine responds. This keeps Engine #12 available for subsequent calls in Mount Prospect and responds the closest apparatus. The advantage of automatic aid response is that more apparatus and manpower arrive at the emergency quicker. When two fire departments provide each other with automatic aid, the responses must be equal to one another. The intention is to help each other without taking advantage of the other. MF Attachments AUTOMATIC FIRE MUTUAL AID AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT, ILLINOIS AND THE VILLAGE OF GLENVIEW, ILLINOIS In accordance with 65 ILCS 5/11-6-1, of the Illinois Compiled statutes, which empowers Municipalities and Fire Protections Districts to enter in to "Mutual Aid Agreements," and in accordance with the MABAS Agreement entered in to by the Village of Mount Prospect and the Village of Glenview in 1973, renewed in 1989, the Village of Mount Prospect and the Village of Glenview agree to provide Automatic Mutual Aid to each other on structural fire alarms as follows: GENERAL CONDITIONS 1. Equipment responding on an automatic mutual aid response to the other community shall have a minimum of three (3) fire department personnel on fire apparatus. 2. Only one (1) unit from the fire department providing aid shall be required to respond at anyone time. In the event that the unit due is unavailable (Le., out of service or committed to another call), no back-up unit from another station shall be required to respond. 3. At all times, the municipality within which the emergency exists will be in charge and responsible for the operations at the emergency scene. If an automatic aid unit is first on the scene, the company officer shall exercise hislher discretion as to the appropriate action to be taken. Upon arrival of a company officer from the community having jurisdiction, command of the emergency scene shall be transferred in a smooth and efficient manner to the fire department in whose municipality the emergency.exists. 4. Each municipality agrees to provide and participate in quarterly training betwee,n the two fire departments. 5. Each municipality agrees that the general provisions of the MABAS Mutual Aid Agreement apply to this agreement, except as modified by this agreement. 6. Each jurisdiction agrees to waive all claims against the other party for compensation for any loss, damage, personal injury or death occurring as a result of performance in conjunction with this agreement. General liability insurance, personal injury insurance, and property/vehicle insurance shall be the responsibility of each individual jurisdiction/department. - - .. '-'-~---'---'---"---'-'--'----~"'-===N",=,,",,"""";:""'O~~-:,';=""":__<'""'-).,''''"''''''''''~'~'''~'^''_'"'___'____ AUTOMATIC FIRE MUTUAL AID AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT, ILLINOIS AND THE VILLAGE OF GLENVIEW, ILLINOIS (Page 2 of 3) RESPONSE AREAS 1. The Village of Glenview Fire Department agrees to provide the Village of Mount Prospect on all Code 3 incidents, subject to the provisions of paragraph two (2) of the general agreement: A. One (1) engine company to the following areas: To the area bounded by River Road to the east, Camp McDonald Road to the north, Wisconsin Central Railroad to the west and Gregory Street to the south. 2. The Village of Mount Prospect Fire Department will provide the Village of Glenview Fire Department on all Code 3 incidents, subject to the provisions of Paragraph two (2) of the general agreement: A.One (1) engine company to the following areas: To the area bounded by River Road to the west, Milwaukee A venue and/or Tri-State overpass to the east, Central Road to the south, and the Milwaukee Avenue / River Road junction to the north. Minor modifications of the above response areas, as well as the vehicles assigned, may be made without further modification to this agreement. However, said modification must be mutually agreed upon in writing by the two respective fire . departments. AUTOMATIC FIRE MUTUAL AID AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT, ILLINOIS AND THE VILLAGE OF GLENVIEW, ILLINOIS (page 3 of 3) TERMINATION OF AGREEMENT The Village of Mount Prospect or the Village of Glenview may terminate this agreement by notifying the Fire Chief of the other department in writing, sixty (60) - days prior to the requested date of termination. TERM OF AGREEMENT This agreement shall be effective as of the day of shall continue in full force until terminated, in writing, by either party. , 2006 and VILLAGE OF MOUNT PROSPECT VILLAGE OF GLENVIEW Irvana K. Wilks Mayor Wayne Globerger Acting Fire Chief - ~--~----'--~'=~'''''~'~'~''''''f'''''''''~-~'''''1'''''''_'=''.",:,,=._~~___. .......... \ I . n n -l~ ~ <, ~ -f: '1/1 \ \;::::.~ \ If/! ~ \; ~ f\\ =C\..' I II. " ~ t~~~7 ~W~~ 1 A1~ 1- \'IIII/I ~~ ~~~~= \ III II I ill' ~II - YT I I ~~ - - ./\ \ .-\\ -' - CT Y:J - "\ . \:::= ~CE :i\ "-\ \ - - \ ~ ~ I j: /II II \,~ ~ ~~ .-==IB ~ ~ cc ~ Jill II II Glenview Fire Department Automatic-Aid Response Area In Mount Prospect, IL I 1111 I II II I I IIIII1111 I II I I - BIIIIIIIIIIIB 1'1 I-~~')T. TT 1\ I 'l"'->< ::::; ~w - 1/7 f::::: :...J,./ }}- "\ =" I ""' I I = I - 1\ T / II I = I -=CI c: 1/ ~,.- I - Ll ~ I :::5f/,N --,.r ~ ~I If::. /1.. I.J ]- K 't I ~( if -" ~ ~r-_ ~ - "-1~~?i - :.[, J'~Y-~ t< \ \ ~ ~ L~ ~~ ,... ;::: ?~ .f./J / I" ....~ ~ "- '/11 \ ~ -~I , r - ~ - - ~ -- t::.. - ~ Anita Av Bonnie Brae Av --===!J Q " c . Brookfield Av ! Morrison Av &i .. ~ '5 c c ':i' ,., 5 HllISt - / J Gregory St l I I Roads Camp Mcdonald Rd- Gregory 51 - Fire Station '14 14 1600 2500 1900 NB 2.400 3000 N8 1200 3200 N8 2000 ]"00 N8 1800 o f"TJ C/) lJ r- 1 600 }> Z f"TJ (J) 1500 1400 600 500 Q -j -< 0" "TJ f ,j 1"'-. ~1-,,=) I I ", ,-- \\ I \\' '::~: \ (---,\ 1 . '.' '~!._- ~ ~:~' \1" j'i/ 6' ';~ . _'?"-~':---~-:--':'-:!_~:-::'_~.:::-::~,'\ I......'! . b\ "::f." \', ',1" ;'1 II " 'C-.:rL':'1 ''''It.::;~\h'l. , I "'~. : ! I .; ) "II"f ":'~'_....' ':' I ~;. Jr' ; I .: "'. .~>-.- _!'<'."""'- "--. . " . i..;.if- -- -, ;". &' II !'1~-J~~~"':: . i! I I ,,'....' ' ," .....~..~ ;1 , : \ ,\T~! ~":1 . . . .......: """l '~. :~~r'~~:-'.':'-';~~lll '~<' ~"'--";~i it I f' '..I 6:':IO~'" 'I ~ , \. . ' ~' -.. ~,"~-;" t. : r.....:~~ " ,,:\. .~'- '-'-~ ..; I ~- ~ ~ ~-~..~ .:~ . <:)~, 1 ' . . -, ----,---. ~_____..^~L'11 \1 .. '.'. . .. '. ;;,,'- i~i.iE.,--<q........ .'\ II: '~.'!\ ~l.'i._.._.".. \'~ ".'., " J" t}- ': I '.' ("', r---'-4Io . .' '-- - ..-. ,,(' .,.{"f.~\ i' (-.,;. ~".,l \ I~j, ~ 1._..--..- "',;:,",~"I ,. \ ....... tt. t ~ '" \ _'. '-\:.\ -""'-"" ). lJ.;.o,. .~~ :~ \ i i: ~. ti ',\ ..1\., !!;., \ \ l!i!..,J'l_' '.:~:~.('~:'~":~\.,."-' '. 6 fr ~ 1; \, ~l t " 't"l.. -._' 3! , !".', ~ .~-:. t- ) 1.-:" ~........ .......... .. ._.t.. ',;_==~- "_'~.' ' .} .\ \ ~,'. . -r- .....- ~j. l ii',. < , ._._.____."._..__..__._'M_ ~ \ II . ClllU."1"(:;!,!, ~....... .... __~J. XjL-.....,-~.~~:-:: -"-"-=~~__'_'-'\.' \---- wES1 tA":'€ .. .-- \ t---A---- 1,\ . . \ t~ . .'~'.A..---Ce~;\~(t 8\ \~ ..--.-~ . ;.-~~~~~.':::-.=:~ ~ \ 'r 'I:::c~ .::~ i.."..:b\ll~""" ,- ~; i ""~~'_:".>-.:; ,'/ "".": ~ Il!.' ",~'?' <,,~:~-':.i~':~:~:i:..-:~__:.:~Y.:,.. -': ..... I. . r i I r' ~ I ; ,i i Ii, I I I/~ ~ Ii" , t". i~' ;c.:.,...-o n tJ.,,1'"1r,I(:~ ~ Ji i I~i . rill t .J ,~?'~.:' ... . ..~ . ... c:.. ----IL~~. 8 i4L~~ . {-:::-~l.-=; ," r ..$..~' f- j ~ It .;Jf :. . ~ .~~ ~~~..~:;,t-<'\-.~' "-....... '" ~ -----, (/ ..., ....... .i /_...., \;'\ 8 ::':'!lIOC;( (J\ t. __~::. J L...wL- ;:?' ~-- . /ri.J" ':'~:!l'k'!8~( ~~;~:~f-\;:~, ,-:~;, , )r i~ ,.. i J I: 5 859 . .". . .-..- ____.--.....\..'tS~ ...../-!',~ ~..._- ..~- ~--.~~ --_k. 4 c:o:~ r...:...,,''!' . ;'"I(f'S'; !"~!'~ ~V( 849 .Ii. 3 729 2 :::c."'.r:.:u.n fCo"lt.S. ~Sll>.~'t .'1.\ ~~:.1::~-::~'~':i.''',"c;..,,;;;.-__:":::---=.,,~:'~~=_ ~~~~~'_. .~ .~ 1 Automatic Aid Area Glenview mla 2/14/06 RESOLUTION NO. A RESOLUTION AUTHORIZING THE VILLAGE OF MOUNT PROSPECT TO ENTER INTO AN AUTOMATIC FIRE MUTUAL AID AGREEMENT WITH THE VILLAGE OF GLENVIEW, ILLINOIS WHEREAS, the President and Board of Trustees of the Village of Mount Prospect has deemed that the best interests of the Village may be served by entering into intergovernmental agreements; and WHEREAS, 65 ILCS 5/11-6-1 empowers municipalities and fire protection districts to enter into mutual aid agreements; and WHEREAS, the Village of Mount Prospect and the Village of Glenview are members of a Mutual Aid Box Alarm System (MABAS), pursuant to an agreement since 1973, and renewed in 1989; and WHEREAS, each community desires to supplement said agreement to provide automatic fire mutual aid to specific areas within both communities, as outlined in the attached agreement; and WHEREAS, said agreement is a direct benefit to the Village of Mount Prospect and its residents by improving upon the Village's fire service capabilities. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: That the Board of Trustees do hereby authorize the Village of Mount Prospect to participate in an Automatic Fire Mutual Aid Agreement with the Village of Glenview. SECTION TWO: That the President and the Fire Chief are hereby authorized to sign the agreement between the Village of Mount Prospect and the Village of Glenview, being the subject of this Resolution, a copy of said agreement being attached hereto and hereby made a part hereof as Exhibit "A". - ".- _.__._-_...~----~-~---_._._~-"""'=.~"""'""'''''=-".-,..,''''''_.'''''''~""'~~----.~,-~,='''''_"''~=.".",..~,__~~~__=-~,~~,__~~>"_W_~~___...___..___ Fire Dept. mutual aid Page 2/2 SECTION THREE: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of ,2006. Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk H:\GEN\files\WIN\RES\Auth agrmt,Fire mutual aidglenviewfeb2006 INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois TO: FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DAVID STRAHL, ASSISTANT VILLAGE MANAGER CABLE PRODUCTION COORDINATOR 'Bf), ~:rc, 2.12.1 lOr.. DATE: FEBRUARY 6, 2006 SUBJECT: TRANSFER OF WIDE OPEN WEST (WOW) Backoround Since 1999, Mount Prospect has had the good fortune of having a second cable operator in town. Ameritech New Media did the initial overbuild of the Village and began providing cable service that same year. Ameritech New Media was sold to Wide Open West Illinois, LLC (WOW) in 2001. At that time the transfer occurred without the board passing a resolution, and WOW has been operating in the Village ever since. WOW provides service to 20 to 30 percent of the cable subscribers in the Village of Mount Prospect. Present On December 14, 2005, WOW was sold to Avista Capital Partners who gained a majority stock ownership ofthe company. Wide Open West Illinois, LLC remains the legal entity holding the franchise agreement with the Village of Mount Prospect. They have filed an FCC Form 394 - Application for Consent to Transfer of Control of Cable Television Franchise per our franchise agreement when a change in stock ownership occurs. We received copies of the FCC Form 394 on December 22, 2005. The FCC Form 394 is consistent with the requirements of the Federal Cable Act and the existing Franchise Agreement between WOW and the Village of Mount Prospect. Discussion Staff has discussed the transfer with representatives of WOW, Brian Blair, WOW Government & Customer Relations Supervisor, and Kelvin Fee, WOW Senior Vice President. They have indicated that Avista Capital Partners have no interest in changing the existing operations of WOW and that the transfer will be invisible to their customers. The FCC Form 394 seems to be in order. Staff and the WOW customers in the Village have had very few issues with Wide Open West since they took over the franchise. There are no current issues that would preclude the transfer from taking place. The Board can issue a resolution that would approve the transfer, or the board can do nothing, and the transfer will automatically take place 120 days after December 22, 2005, or April21, 2006. Staff Recommendation Staff recommends that a resolution be considered to accept the transfer. Brian Blair and Kelvin Fee have both indicated that they would appear before the Village Board and answer any questions, if necessary. Thank you. ~M Howard Kleinstein cc: Lisa Angell, Village Clerk ~ ~-""~-~----"~----~~--'-----"-'~=."""'_.o<""""'''''''''''''''=~"r",~".~"""~,c,:.'""",~~.~,,,,,,,,,,,,,,,,,,,,",,,,".~.,=>=-.._~______~_~___<_.______.__._ mla 2/14/06 RESOLUTION NO. A RESOLUTION CONSENTING TO TRANSFER CONTROL OF CABLE TELEVISION FRANCHISE AGREEMENT WHEREAS, the President and Board of Trustees of the Village of Mount Prospect entered into a non-exclusive Franchise Agreement with Ameritch New Media which agreement was effective January 19, 1999, pursuant to approval of Resolution 2-99 (the "Franchise Agreement"); and WHEREAS, the Franchise Agreement allowed Ameritech New Media Agreement to construct and operate a cable television system within the Village pursuant to Chapter 65 ILCS Section 5/11-42; and WHEREAS, Chapter 6 of the Village Code of Mount Prospect governs the Franchise Agreement required to operate Cable Television in the Village; and WHEREAS, the Cable Television Franchise Agreement may be modified from time to time, as provided in Chapter 6 of the Village Code; and WHEREAS, on November 30, 2001 Ameritech New Media was sold to Wide Open West Illinois, LLC (WOW) and the Village's Cable Television Franchise Agreement transferred to WOW; and WHEREAS, in December 2005 Avista Capital Partners acquired ownership and control of Wide Open West, Illinois, LLC (WOW); and WHEREAS, in accordance with the Village's Cable Television Franchise Agreement Avista Capital Partners filed an FCC Form 394 - Application for Consent to Transfer Control of Cable Television Franchise, "Transfer Application" attached hereto and made a part of this Resolution as "Exhibit A"; and WHEREAS, the "Transfer Application" is consistent with the requirements of the Federal Cable Act and the existing Franchise Agreement between Wide Open West Illinois, LLC (WOW) and the Village of Mount Prospect; and WHEREAS, the Village of Mount Prospect is willing to consent to the Transfer of Control to Avista Capital Partners, LLC effective April 21, 2006; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: Consent to Transfer Control Page 2/2 SECTION ONE. The President and Board of Trustees of the Village of Mount Prospect authorize the Transfer of Control of the Cable Television Franchise Agreement to Avista Capital Partners. SECTION TWO: This Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of , 2006. Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk H:\CLKO\files\WIN\RES\AmendfranchiseagreementWideOpenWest(WOW)feb2006.doc ~ra1 Communlcaliens Commission ..$hington, DC 20554 FCC 394 APPLICATION FOR FRANCHISE AUTHORITY CONSENT TO ASSIGNMENT OR TRANSFER OF CONTROL OF CABLE TELEVISION FRANCHISE ApproWldByOMB 3060-0573 SECTION l. GENERAL INFORMATION I FOR FlWlCHlSEAUTHOIVTY USE ONLY DATE December 22, 2005 1. Community Unit Identification Number: ILl 7 0 1 2. Applicatien for: o AssIgnment of Franchise eg Transfer of Control 3. Franchising Authority: Mount Prospect, IL 4. Identify communitywhere the systemffranchlse that is the subject of the assignment er transfer of control is located: Mount Prospect, IL 5. Date system was acquired or (for system's constructed by the transferor/assignor) the date en which service was prOYided to the first subscnber in the franchise area: November 30, 2001 6. Proposed effective date of dosing r:A the transaction assigning or transferring ownership r! the system to transferee/assignee: April 30, 2006 '. Attach as an E>lhibit a schedule of any and all additional informatien er material flied with this application that is idenllfjed in the franchise as required to be prcMcled to the franchising authoritywhen requesting its approval d the type of transactien that is the subject of this appfication. Elchibit No. 1 PART 1- TRANSFEROR/ASSIGNOR 1. Indicate the name, mailing address, and telephene number of the transferor/assignor. Legal name d Transferor/Assignor (if indMdual, rlSt last name fnt) Wide Open West Holdings, LLC Assumed name used fer doing business (if any) WOW! Internet, Cable and Phone - -- Mailing street address or P.O. Box 7807 East peakview Avenue, Suite 400 City I~ \ ZIP Code I Telephone No. (include area code) Englewood 80111 (720) 479-3500 2. (a) Attach as an Elchlbit a copy of the contract or agreement that provides for the assignment or transfer of control (including any exhibits or schedules thereto necessary in order to understand the terms Ihereof). If there is only an oral agreement, reduce the terms to writing and attach. (Confidential trade, business, pricing or marketing information, or ether informatlcn not otherwise publicly avaDable, may be redacted). Elchibit No. 2 (b) Does the contract submitted in respcnse to (a) abOlle embody the full and complete agreement between the transferor/assignor and the transferee/assignee? o Yes~ No Exhibit'No. 2 If No, explain in an Exhibit ~. I' ,/J// ~. V /./ ~/XT7 /; /\ r-- -Z)-L- , FCC 394 (Page 1) September 1996 'ART 11- TRANSFEREE/ASSIGNEE 1. (a) Indicate the name, mailing address, and telephone number of the transferee/assignee. Legal name of Transferee/Assignee (if individual, list last name first) Racecar Acquisition, LLC Assumed name used for doing business (if any) Mailing street address or P.O. Box 65 East 55th Street, 18th Floor City State \ ZIP Code Telephone No. (include area code) New York NY . 10022 (212 ) 593-6958 (b) Indicate the name, mailing address, and telephone number of person to contact, if other than transferee/assignee. Name of contact Person (list last name first) Elizabeth A. Hammond Firm or company name (if any) Drinker Biddle & Reath LLP Mailing street address or P.O. Box 1500 K Street, NW, suite 1100 City State ZIP Code Telephone No. (include area oode) Washington DC 20005 (202) 842-8843 (e) Attach as an Exhibit the name, mailing address, and telephone number of each additional person who should be contacted, if any. 8chiblt No. 3 (d) Indicate the address where the system's records will be maintained. Street Address 1674 Frontenac Road City State ZIP Code Naperville IL 60563 2. Indicate on an attached exhibit any plans to change the current terms and conditions of service and operations of the system as a consequence of the transaction for which approval is sought. 8chibit No. 4 FCC 394 (Page 2) September 1996 :;TION II. TRANSFEREE'S1ASSIGNEE'S LEGAL QUALIFICATIONS 1. Tr.a~er~As~gneei~ o Corporation a. Jurisdiction of incorporation: d. Name and address of registered agent in jurisdiction: b. Date of incorporation: c. For profit or not-tor-profit: o Limited Partnership a. Jurisdiction in which formed: c. Name and address of registered agent in jurisdiction: b. Date of formation: General Partnership a. Jurisdiction whose laws govern formation: b. Date of formation: o o e9 Individual Other. Describe in an Exhibit. Exhibit No. 5 2. List the transferee/assignee, and, if the transferee/a~gnee is not a natural person, each of its officers, directors, stockholders beneficially holding more than 5% of the outstanding voting shares, general partners, and limited partners holding an equity interest of more than 5%. Use only one column for each individual or entity. Attach additional pages if necessary. (Read carefully - the lettered items below refer to corresponding lines in the foIlO1Ning table.) (a) Name, residence, occupation or principal business, and principal place of business. (If other than an individual, also show name, address and citizenship of natural person authorized to vote the voting securities of the applicant that it holds.) Ust the applicant first, officers, next, then directors and, thereafter, remaining stockholders and/or partners. (b) Citizenship. (c) Relationship to the transferee/assignee (e.g., officer, director, etc.). (d) Number of shares or nature of partnership interest. (e) Number of votes. (f) Percentage of votes. (a) .K.acecar Acqu~s~t~on, LLC see attaChed See attached 65 East 55th St., 18th Fl. New York, NY 10022 (b) Delaware (c) Applicant (d) (e) (f) FCC 394 (Page 3) September 1996 Section n, question 2 cont'd: (a) David Burgstahler (a) Benjamin Silbert 61 East86h Street, Apt. 24 13 West 77th Street, Apt. 2 New York, NY 10028 New York, NY 10024 Partner of A vista Capital Partners General Counsel of A vista Capital Partners RacecarAcqui~ition, LLC . Racecar Acquisition, LLC 65 East 55th St., 18th Fl. 65 East 55th St., 18th Fl. New York, NY 10022 NeW York, NY 10022 'b' US bUS c President & Director 'c Vice President '-'d'. O~OO% d )O.OOOk . , . 'e o;ooe" . ... e O~OOO" 11 0.000" 'fj 0.;00% . (a):Jason Mozingo (a) James Finkelstein .2 Pasture Lane 2 ParkAvenue, Suite 1405 Darien, cr 06820 New York, NY 10016 Principal of Avista Capital Partners rartner of ~vista Capital Partners Racecar Acquisition, LLC Racecar Acquisition, LLC 65 East 55th St., 18th Fl. 6S East SSth St., 18th Fl. New York, NY 10022 New York, NY. 10022 bUS, [1)' 1'08 c Director .c t>irector d 0.00% d 0.00% e 0.00% e 0.00% 'f1 0.00% [11 0.00% (a) Brendan Scollans (a) Colleen Abdoulah 250 East 6S. Street, Apt. lIB CEO of WOW New York, NY 10021 7807 East Peakview Ave., Ste. 400 Englewood, CO 80111 Vice President of Avista Capital Partners Racecar Acquisition, LLC 6S East S5th St., 18th Fl. New York, NY 10022 lb)US -(b) US and Canada (c) Director (c) Director & Member of Racecar Holdings, LLC1 (d) 0.00% (d ) See footnote 1 (elO.OO% (e ) See footnote 1 (00.00% (fl See footnote I I The management group (of 25 people) will collectively own approximately four percent (4%) of the equity of Racecar Holdings, LLC and 6.3 percent of the voting interests. Ms. Abdoulab will become a Director of Racecar Acquisition, LLC at the closing of this transaction. (a) Racecar Holdings, LLC (a) The Northwestern Mutual Life Insurance 65 East 55th St., 18th Fl. Company New York. NY 10022 720 East Wisconsin Avenue Milwaukee WI 53202 Authorized OersOD: Tim Collins ~ Delaware 'b) Wisconsin c Sole Member ofRacecar Acquisition, LLC c Co-investor in. Racecar Holdinas, LLC dl00% d 35.3% membershio interest e 1000At of the membership interests e O.OOOAt ~f: 100% :f 0.00% (a) Thoinpson Dean (a) Steven Webster 550 Park Avenuc, Apt. 10E 1908 RiVer Oaks Blvd . New york, NY 10021 HoustOD,TX 77019 : Co-~gingPartnCtof Avista Co-Managing Partner of Avista AVistaCapitaI Partners AviSt8 Capital Partners 65 East 55th St.,18th Fl. 65 East .55th St., 18th Fl. New York. NY 10022 New York. NY.l0022 ~ US rb US. c See ExIu"bit 7 c See Exhibit 7 d See ExIu"bit 7 d See Exlu"bit 7 e See ExIu"bit 7 e See Exhibit 7 "[f) See ExIu"bit 7 rfl See ExIu"bit 7 .(a) Avista Capital Partners, L.P. (a) To be deterrtrlned3H . 65 East 55th St., 18th Fl. New York, NY 10022 (b) Delaware (c) Controlling Member ofRacecar Holdings, LLC Cd .) 56.5~ membership interest e Not Ap))licable C( 93.7% votine: interests 2 The Northwestern Mutual Life Insurance Company for its Group Annuity Separate Account, an affiliate of The Northwestern Mutual Life Insurance Company (the "Company"), win hold less than five percent of total investment held by the Company. 3 Two additional outside directors win be added to the Board at the Closing. '\. If the applicant is a corporation or a limited partnership, is the transferee/assignee formed under the laws of, or duly qualified to transact business in, the State or other jurisdiction in which the system operates? If the answer is No, explain in an Exhibit. 4. Has the transferee/assignee had any interest in or in connection with an applicant which has been dismissed or denied by any franchise authority? If the answer is Yes, describe circumstances in an Exhibit. 5. Has an adverse finding been made or an adverse final action been taken by any court or administrative body with respect to the transferee/assignee in a civil, criminal or administrative prQceeding, brought under the provisions of any law or regulation related to the following: any felony; revocation, suspension or involuntary transfer of any authorization (including cable franchises) to provide video programming services; mass media related antitrust or unfair c:ornpetition; fraudulent statements to another government unit; or employment discrimination? If the answer is Yes, attach as an Exhibit a full description of the persons and matter(s) involved, including an identification of any court or administrative body and any proc:eeding(by dates and file numbers, if applicable), and the disposition of such proceeding. 6. Are there any documents, instruments, contracts or understandings relating to ownership or future ownership rights with respect to any attributable interest as described in Question 2 (including, but not limited to, non-voting stock interests, beneficial stock ownership interests, options, warrants, debentures)? If Yes, provide particulars in an Exhibit. '. Do documents, instruments, agreements or understandings for the pledge of stock of the transferee/assignee, as security for loans or contractual performanc:e, provide that: (a) voting rights will remain with the applicant, even in the event of default on the obligation; (b) in the event of default, there will be either a private or public sale of the stock; and (c) prior to the exercise of any ownership rights by a purchaser at a sale described in (b), any prior consent of the FCC and/or of the franchising authority, if required pursuant to federal, state or local law or pursuant to the terms of the franchise agreement will be obtained? If No, attach as an Exhibit a full explanation. SECTION III. TRANSFEREE'S/ASSIGNEE'S FINANCIAL QUALIFICATIONS 1. The transferee/assignee certifies that it has sufficient net liquid assets on hand or available from committed resources to consummate the transaction and operate the facilities for three months. 2. Attach as an Exhibit the most recent financial statements, prepared in acc:ordanc:e with generally ac:cepted accounting principles, including abalanc:e sheet and inc:orne statement for at least "one full year, for the transferee/assignee or parent entity that has been prepared in the ordinary course of business, if any such financial statements are routinely prepared. Such statements, if not otherwise publicly available, may be marked CONFIDENTIAl and will be maintained as confidential by the franchise authority and its agents to the extent permissible under local law. SECTION IV. TRANSFEREE'S1ASSIGNEE'S TECHNICAL QUALIFICATIONS Set forth in an Exhibit a narrative account of the transferee'sfassignee's technical qualifications, experience and expertise regarding cable television systems, including, but not limited to, summary information about appropriate management personnel that will be involved in the system's management and operations. The transferee/assignee may, but need not, list a representative sample of cable systems currently or formerly n\lVl1ed or operated. FCC 394 (Page 4) o Yes ~ No Exhibit No. I 6 o Yes ~ No I ~,~o. I o Yes ~ No Exhibit No. N/A e9 Yes 0 No Exhibit No. 7 o Yes ~ No Exhi:t No'1 e9 Yes 0 No Exhibit No. 9 Exhibit No. 10 September 1996 3ECTIONV. CERTIFICATiONS ..:\. .:> Part 1- Transferor/Assignor All the statements made in the appfication and attached exhibits are considered material representations, and an the Exhibits are a material part hereof and are incorporated herein as if set out in fun in the application. . WILLFUL FAlSE STATEMENTS MADE ON THIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT. U.~. CODE, TITLE 18, SECTION 1001. Check appropriate classification: D IndMduaI D General Partner DIle SIgnature I CERTIFY that the statements in this application are true, complete and correct to the best of my knowledge and belief and are made in good faith. PrintY n. D. Craig Martin, General Counsel & Secretary O CorpcnteOJllc8r (IndlcIle TIlle} El 0Iher. ElClIIIn: . LLC Officer Part II - Transferee/Assignee All the statements made In the application and attached exhibits are considered material representations. and aD the Exhibits are a material part hereof and are incorporated herein as if set out in full In the application. The transferee/assignee certifies that helshe: (a) Has a current copy of the FCC's Rules goveming cable television systems. (b) Has a current copy of the franchise that is the subject of this application, and of any applicable state laws or local ordinances and related regulations. (c) Will use its best efforts to comply with the terms of the franchise and applicable state laws or local ordinances and related regulations, and to effect changes, as promptly as practicable. in the operation system, If any changes are necessary to Qlre any violations thereof or defaults thereunder presently in effect or ongoing. . SIgnature I CERTIFY that the statements in this appfication are true, complete and c:onect to the best of my knowledge and belief and are made In good faith. WILLFUl FAlSE STATEMENTS MADE ON THIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT. U.S. CODE, TITLE 18, SECTION 1001. DIte PrInt Mname Benjamin Silbert, Vice President Check appropriate classification: D individual D General Partner DCclrpcnIIeOfficer (lndicale TIUe) El Other. ExplaIn: Vice Pres. of LLC FCC 394 (Page 5) september 1996 ""'ff""'=='N"""F""",~",_",""~,"".==",=.=,-",m',,,,~w=.z"";;!,'X."3\ctt:.,:"c:.~,"'='iL~"''''''='C,''';;:''''''.n"=,"",..~.~--~'-"'--'-~"""",_""","",,,,,,,='''"''~'''';=''"''''''''''''''''''''='='''~~-_"__''''''-''''<<C~'''''=-''''"'__'~____'__'_~_ TABLE OF EXHIBITS Description Number . Application Complete ................... .... ...... ................ ...... .................... ....... .....~ ....... 1 Asset Purchase Agreement .............. .....;....'............... ~..... .......... ....... .... .................. 2 Additional Contact Persons ........... .... ........ ....';.;.... .... ~.......'.... ....;;. ............ ...... ........ ..... 3 Terms and Conditions of Service ........;.............;.................... ...;............... ............. 4 Transferee ...................................................... ........................ ....... ...... ............ ...... 5 Qualification to Transact Business .......................................................................6 Future Ownership ............ ..... ....... ~......:..........;............ ........... ....... .......................... 7 Pledge of Membership Interests ... ............ ............ ................... ................. ............. 8 Financial Statements .......................... .... .... ......'......... ......... .... ...... ~......................... 9 Technical Qualifications ..... ................... .......... .......... ............. ............ ..... ............. 1 0 INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: DIRECTOR OF FINANCE DATE: FEBRUARY 15, 2006 SUBJECT: RESERVATION OF PRIVATE ACTIVITY BOND VOLUME CAP PURPOSE: To present for the Village Board's consideration an ordinance that would reserve the Village's 2006 private activity bond volume cap. DISCUSSION: The Internal Revenue Code allows state and local governments to issue tax-exempt debt for the benefit of certain qualified private development projects. These projects include the acquisition or construction of industrial facilities and apartments for low and moderate-income families. The amount of such private activity debt issued in any given year cannot exceed the equivalent of $80 per resident. The Village's private activity bond volume cap is currently $4,501,200. According to the regulations, any volume cap not reserved or committed by a municipality by April 30th is automatically transferred to the state government. If a community does not have any specific projects that would qualify for the tax exempt financing, it can cede, or transfer, the volume cap to another community. Over the past several years, it has become common for municipalities to transfer their unused volume cap to other municipalities in exchange for a fee. The fee is actually paid by the ultimate beneficiary of the tax-exempt financing. The amount of the fee paid depends upon the economy and the current interest rate environment. For the past few years, the fee received for the Village's cap has been 1-2%. The Village of Mount Prospect has ceded its authority to other governments in previous years. SUMMARY: At this time, the Village has not been approached by any company interested in our volume cap for a project in Mount Prospect. Nor have we been approached by any investment banker about ceding our 2006 volume cap to them. F -----~".,..~.,.~',--"=..>:<.,~'"""'y'<..,."=''''''".,,,.l''"'''''''''',,_i"=.'="'mi<r~~~-=~=~~-;:,r'''''"Z'';;F:,'i1:'.:'';'",:'=''''',=''''-''''''''_'_~_.."-"-_,_~._.,___..___ 2006 Private Activity Bond Volume Cap 2/15/2006 Page 2 The Village has a total of $4,501,200 of private activity bond volume cap it must reserve by April 30th or it will be transferred to the State government. The Village can choose to hold onto the volume cap after it is reserved until a project is identified. It may also be able to carry over the cap for up to three years depending on the type of project being considered. RECOMMENDATION: It is recommended the Village Board adopt the attached draft ordinance reserving the Village's private activity bond volume cap for 2006. ~cP. ~ DAVID O. ERB DIRECTOR OF FINANCE DOE/ 1:\Private Activity Bonds\2006\Memo to Janonis - March 2006.doc ORDINANCE NO. AN ORDINANCE RESERVING VOLUME CAP IN CONNECTION WITH PRIVATE ACTIVITY BOND ISSUES, AND RELATED MATTERS. WHEREAS, the Village of Mount Prospect, Cook County (the "Municipality"), is a municipality and a home rule unit of government under Section 6 of Article VII of the 1970 Constitution of the State of Illinois; and WHEREAS, Section 146 of the Internal Revenue Code of 1986, as amended (the "Code "), provides that the Municipality has volume cap equal to $80.00 per resident of the Municipality in each calendar year, which volume cap may be reserved and allocated to certain tax-exempt private activity bonds; and WHEREAS, the Illinois Private Activity Bond Allocation Act, 30 Illinois Compiled Statutes 1998, 345/1 et seq., as supplemented and amended (the "Act"), provides that a home rule unit of government may transfer its allocation of volume cap to any other home rule unit of government, the State of Illinois or any agency thereof or any non-home rule unit of government; and WHEREAS, it is now deemed necessary and desirable by the Municipality to reserve all of its volume cap allocation for calendar year 2006 to be applied toward the issuance of private activity bonds (the "Bonds "), as provided in this Ordinance, or to be transferred, as permitted by this Ordinance; Now, THEREFORE, Be It Ordained by the President and Board of Trustees of the Village of Mount Prospect, Cook County, Illinois, as follows: SECTION 1. That, pursuant to Section 146 of the Code and the Act, the entire volume cap of the Municipality for calendar year 2006 is hereby reserved by the Municipality, which shall issue the Bonds using such volume cap, or otherwise use or transfer such volume cap in a lawful manner without any further action required on the part of the Municipality. The adoption of this Ordinance shall be deemed to be an allocation of such volume cap to the issuance of the Bonds or such other bonds; provided, that any such transfer shall be evidenced by a written instrument executed by the President or any other proper officer or employee of the Municipality. SECTION 2. That the Municipality shall maintain a written record of this Ordinance in its records during the term that the Bonds or any other such bonds to which such volume cap is allocated remain outstanding. SECTION 3. That the President, the Village Clerk and all other proper officers, officials, agents and employees of the Municipality are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents and certificates as may be necessary to further the purposes and intent of this Ordinance. --'-"~"""""'.'""''''-''~'~_''!_~'-_~O::'''''.7_''';::-~'''~~"~"'1;11:f.'=;W;,,"=<rot:f;~'i?_""::1;;;;;"':;i"~"':~_~"'_"'~""~;='~'~;"""""_'.==~~=1Z<-;:Zry.""""",:"",=""'=~--~--'--_~,==>~~.",=",_=,_,.o_.'~~~"~~W,~____"_._'"~~_"________~_.__ SECTION 4. That the provisions of this Ordinance are hereby declared to be separable, and if any section, phrase or provision of this Ordinance shall for any reason be declared to be invalid, such declaration shall not affect the remainder of the sections, phrases and provisions of this Ordinance. SECTION 5. That all ordinances, resolutions or orders, or parts thereof, in conflict herewith are, to the extent of such conflict, hereby superseded; and that this Ordinance shall be in full force and effect upon its adoption and approval. AYES: NA YES: ABSENT: PASSED and APPROVED this day of February, 2006. Irvana K. Wilks, Mayor ATTEST: [SEAL] M. Lisa Angell, Village Clerk H:\CLKO\fiIes\WIN\ORDINANC\Volume Cap Reservation Ordinance - 2006.doc -2- Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: DIRECTOR OF FINANCE DATE: FEBRUARY 14, 2006 SUBJECT: REVISED PURCHASING POLICY AND PROCEDURES PURPOSE: To present a revised purchasing policy and procedures manual for use by Village officials and staff in the acquisition of goods and services for the Village. BACKGROUND: The Village has in the past provided corporate credit cards to department heads and deputy directors for use in making purchases. The use of these cards has been cancelled for several years. Recently, a Costco Wholesale warehouse store has opened for business in the Village in which various departments have shown an interest in purchasing from the store. In order to shop at this store, an annual membership must be obtained. In addition, only certain types of payment are accepted (no PO's). To facilitate the use of this store for the purchase of supplies and to reduce the number of manual checks prepared, staffwould like to establish an account with Costco and designate certain Village employees as Costco cardholders. DISCUSSION: Attached please find a copy of a revised purchasing policy and procedures document. The document reflects the utilization of Costco credit cards for the purchase of Village supplies and provides for general responsibilities and guidelines for use and an acknowledgement form to be signed off by all cardholders. Along with the table of contents, revision dates and references to new exhibits, the following is a summary of the changes from the existing document. The changes incorporate the utilization of Costco credit cards and clarify some other document language. All adds/changes to the document have been highlighted using underlining (adds) and strikeouts (deletions). Summary of Changes: 1. Chapter 2, Section M (page 8) - There is new language addressing the utilization of Village issued credit cards. Purchasing Policy and Procedures February 14,2006 Page 2 2. Chapter 3, Section C1 (page 9) - Reference number to exhibit 2a was changed to reflect actual item found in Chapter 7 -Exhibits. 3. Chapter 3, Section E (page 10) - Adjusts capitalization threshold for fixed assets to reflect auditor recommendation. 4. Chapter 5, Section I (page 22) - Updates language related to the use of credit cards. RECOMMENDATION: It is recommended the Village board accept the revised Purchasing Policy and Procedures manual for use by Village officials and staff in the acquisition of goods and services for the Village. J~~ <<- DAVID O. ERB DIRECTOR OF FINANCE DOE! 1:\Policies\Purchasing\2006\January Revision (Purchasing) - 2006.doc VILLAGE OF MOUNT PROSPECT Purchasing Policies and Procedures Manual Revised i\Ugust 2004February 2006 TABLE OF CONTENTS CHAPTER 1 - INTRODUCTION A. Introduction/Statement of Policy 1 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 M. Village Issued Credit Cards 2 3 3 4 5 5 5 6 6 7 7 8 8 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 9 9 9 10 10 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 12 12 13 14 17 17 17 TABLE OF CONTENTS (coot.) 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 I. Credit Card Payments J. Check Requisitions K. Prompt Payment Act 18 18 18 18 19 19 20 20 22 23 23 CHAPTER 6 - GLOSSARY OF TERMS A. Glossary of Terms 24 CHAPTER 7 - EXHIBITS 28 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 I. Exhibit 9 - Petty Cash Request Form J. Exhibit 10 - Costco Credit Card: General Responsibilities and Guidelines for Use K. Exhibit 11 - Costco Credit Card: Acknowledgement 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 hislher 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. J anonis Village Manager Dated this day of-August 2004February 2006. 1 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 ofthe item. 3. Consider cooperative purchasing with other local governments and/or with the state of TIlinois. 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. 2 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, 3 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. 4 E. Competitive Bidding and Quotation Policy 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 Ouotation 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, 5 contracts, and/or transportation. In the event of an emergency, a department head or hislher 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 shall 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 $1 0,000 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 hislher discretion, the Village Manager shall determine whether these purchases require Village Board approval of a waiver of bids. Where a bid waiver is determined 6 --_.~."~'<.~""="'.=""'''''''''~~._~--""""""-"",,,===-",~.~,,-----------_._-- 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. It is not the intent of this subsection to encourage the 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 IT..,CS 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 reql:lisitionorders are submitted to the vendor directly and shall include the State of Illinois contract number and the Village's assigned Joint Purchasing member LD. 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. 7 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 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. M. Villa2e Issued Credit Cards To reduce the number of manual checks prepared for purchase of commodities and supplies and to facilitate the acquisition of goods through a membership only purchasing club. management feels it is in the best interest of the Village to utilize credit cards. Use ofthe credit card is limited to purchases made through Costco Wholesale. The number of authorized card holders is limited to select personal in the various Village Departments. All purchases made using cards must be made in accordance with existing purchasing policies and guidelines of the Village. Each cardholder will be required to review the General Responsibilities and Guidelines for Purchasing specifically in place for card use (exhibit 10) and sign off on the Costco Credit Card Acknowledgement Form (exhibit 11) before a credit card is released. 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 fiscal year (i.e. December 31), departments shall be responsible for ensuring that they are expensed (i.e. 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-4-l2a). Sales tax exemption letters may be obtained from the Accounts Payable Clerk in the Finance Department. Use ofthe Village's sales tax exemption number is restricted to purchases made on behalf of the 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 $1 0,000 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 hislher 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 of30 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. E. 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 $1 O.OO~. General infrastructure such as roads, sidewalks and storm sewers shall be capitalized utilizing a threshold of$25.0001O,000. 10 --._-.___W~'~"."".._"'==-=-""""'""","""~~~._~_ Responsibility for control of fixed assets rests with 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 hislher 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 ofthe assets. Departments shall maintain separate detailed fixed asset inventory records for those capital assets falling below the capitalization threshold when the nature of those assets warrants close oversight and control. Examples include firearms, computers, fire hose, and chainsaws. 11 CHAPTER 4- COMPETITNE 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. 12 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. 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 5/33E- 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. 13 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 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. 14 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. 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. 15 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. 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. 16 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. 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 ofthe 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 PROCESSlNG 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 bi11list (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 requisitionorder 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 Accounts 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 requisitionrequest 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 requisitionreouest 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, Human Services. 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 ~""'~''''''''''-'''-'''''''"''''W1'''';;~';:~~1 ~ 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 requisitionrequest 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 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 representative 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 directorsVillage employees 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) v/here a parehase order cannot be used (e.g. airline reservations, restaurants etc.)listed in the Guidelines for Use attached as Exhibit 10. Credit cards shall not be used to circumvent the normal payment process. 22 ~. " - ~~ ~.~- ---_._--~--- ---~.__._~.. As with all purchases made on the Village's behalf, 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 R-equisitioBReauests Purchase orders are the preferred method of payment for most Village transactions. However, when purchase orders are not utilized, check requisitionrequests (Exhibit 8) should be used for payment processing. Check requisitionrequests require the signature of a gl)epartment head and the Director of Finance. Invoices or receipts are to be attached to check requisitionrequest forms. Check requisitionrequests 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 requisitionrequest 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 I % 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 23 received, whichever is later. Department heads are charged with the responsibility of ensuring compliance with the approval requirement. 24 --"_.'-'--'~~",=...., 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. 25 12. Commodity is an article of trade, a movable 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. 26 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. 25. 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). 26. 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. 27. 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. 28. 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. 29. 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. 27 30. A Responsive Bidder is a bidder whose bid does not materially vary from the specifications and terms set out in the Invitation for Bids. 31. 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. 32. 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 govern various aspects of the relation of parties under the Contract. 33. 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. 28 CHAPTER 7 - EXHIBITS A. Exhibit 1 - Budget Transfer Request 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 RequisitionRequest Form 1. Exhibit 9 - Petty Cash Request Form J. Exhibit 10 - Costco Credit Card: General Responsibilities and Guidelines for Use K. Exhibit 11 - Costco Credit Card: Acknowledgement Form 29 VILLAGE OF MOUNT PROSPECT Exhibit 1 Budget Transfer Request Form Date of Request: For Fiscal Year: Depanment: Request No. (For Finance DepanmclIl Use Only) From Account Amount To Account Amount $ $ $ $ $ $ $ $ Need assistance in finding a source funds. Justification: .....- ,.-. ..... ,_u_ ,-- u_n_.._ ,.- .......-.... .-..-..-........ -......-..-.. -..-..----........_ "'_0__. ...... _00 -. .-.._........_ '''_'''_''''''n_.._ .._. '_..._u_ ,,_.0 _.._......._.0 _..._.._.._.. _ "_'0_"'" U_'O""". _'0 _ ,__.._.._.. _.. _. '_00_. 0_.._. Signatures and Approval Dept. Head I: Dept. Head 2: Director of finance: Comments: ApprovedJDi sapprovedJ Referred to Village Manager Village Manager: Comments: ApprovednJisapproved _'0 -.. .... _..- '....... _. '_'0 -.- _h_"_' '-'0_-' -..-. .-..-.--..-..-..- ..-..-..-,-_.._.._. ,_. ._. ...... _.._.._ ,__.__.._.._.._ _'_'0 _.._ n_""",o _"_" _.._ ,,_..._..... "_"__'_"_"_ _.....u_.._.._... __._..._ .... _. _"_.0"".._ .._..... ,._. Finance Dept. Data Entry Copies: Village Manager 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 I" 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 of this 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 will 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 ofthe 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. 10. Budget transfer requests should be submitted to the Director of Finance. Once approved or disapproved, a copy of the request form will be sent to all departments involved. 11. If sufficient funds are not available in an account to make a purchase, a budget transfer should be requested before the purchase is made or a purchase order is submitted. MAYOR Irvana K. Wilks Exhibit 2a TRUSTEES Timothy J. Corcoran Paul Wm. Hoefert A. John Korn Richard M. Lohrstorfer Michaele W. Skowron Michael A. Zadel Phone: (847) 392-6000 Fa,,: (847) 818-5336 TDD: (847) 392-6064 VILLAGE CLERK M. Lisa Angell Village of Mount Prospect 50 South Emerson Street Mount Prospect, Illinois 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 E9998-1475-05 pursuant to letter dated January 20,2005. It is understood that the exemption from tax in the case of sales of articles under this exemption certificate to a state, territory 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 of the 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 H :\M1SC\Administrative Assistant\FORML TRS\t"-e,,mpt.doc 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 7, 2005 VILLAGE OF HT PROSPECT 100 S EMERSON ST HT PROSPECT IL 60056 Effective January 1, 2005, 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. We have issued the following new tax exemption identifi.cation number: E9998-1475-05 to VILLAGE OF MTPROSPECT of HT PROSPECT, IL The terms and conditions governing use of your exemption number remain unchanged. Office of Local Government Services Illinois Department of Revenue . ::-.\ ~., ( ~: ~ : ~~I '{':. ~; ". ~.l1 . . 5T5-70 (R-2198) IL-492-3524 10-0000574 VILLAGE OF MOUNT PROSPECT BID DOCUMENTS ((Insert bid item name here in italic, bold and in caps)) BID OPENING DATE: BID OPENING TIME: Exhibit 3 TABLE OF CONTENTS Bidder Introduction Letter........................ 1 Bid Notice. .. . ... . .. .......... .... . ..... ........ .... 2 Proposal Form..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 Bid Certification Form. .. ...... ................... 4 Bidders Reference Form... .. .... ..... ............. 5 Instructions to Bidders.. . .. . . .. ... . . . . . .. .. .. ...... 6- ((Any other items)) MAYOR Irvana K. Wilks Mount Prospect TRUSTEES Timothy J. Corcoran Paul Wm. Hoefer! A. John Korn Richard M. Lohrstorfer Michaele W. Skowron Michael A. Zadel ~ Phone: (847) 392-6000 Fax: (847)392-6022 TDD: (847) 392-6064 VILLAGE MANAGER Michael E. Janonis VILLAGE CLERK M. Lisa Angell 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 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 deviation 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. Unless denoted "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 names and telephone number)). Thank you for considering submitting a bid. Sincerely, H:\MISC\Administrative Assistant\Purchasing Policy\Replacement SAMPLE BIDDER INTRODUCTION EL TIER - 2-14-2006.doc 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 returned 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 information: company's name, address, bid item, date and time of opening. Specifications and complete bid documents may be obtained from the Office ofthe ((insert title of department director here)). Further infomlation 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 NOT ARlZED VILLAGE OF MOUNT PROSPECT BID CERTIFICATION FORM Return with Bid RE: CERTIFICATION OF BIDDER, COMPLIANCE WITH 720 ILCS 5/33 IIWe 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 oflocal 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 which 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 term 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 shan 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 a pattem over time (which, for purposes of this Section, shall include at least 3 contract bids within a period often 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 ofthe 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 identical or as similar as possible to that which the bidder has proposed within his bid submittal. 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: BUSINESS: ADDRESS: CONTACT 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: 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. I. FORMS Bid forms are furnished by the Village. All bids must be submitted on the forms 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 information: 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 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 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 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 wiII 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 arrived, and no bid received thereafter will be considered. No responsibility wi11 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. ---'.~~'_-~"""=,,,,,=,~,.,,>,~,",,,-,,,,,,,,,,,,,,,,,",,,._,,"""l""'"""~---""" > "-~""'=,~"'n:~~='~',,,,,,,,"_,,,,,,,,,,_,,,,_,.,,,,,,,,,,,,,~" 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 fornls 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. CONSIDERATION OF BID No bid will be accepted from or contract awarded to any person, firm 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, ifrequested, shall present, within 48 hours, evidence satisfactory to the ViIlage of performance ability and possession of necessary facilities, pecuniary resources and adequate insurance to comply with the temlsofthese 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 determining overall price, 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 pal1s thereof and to waive formalities and technicalities according to the best interests of the Village. Any bid submitted wi1J be binding for sixty (60) days subsequent to the date of the bid opening. Bidders shall make aU investigations necessary to thoroughly inform 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 Village to be included. A contract will 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 equipment or supplies 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. ]4. CONTRACT ALTERATIONS No amendment of a contract shall be valid unless made in writing and signed by the Vi Ilage President, Village Manager, or their authOl;zed representative. 15. NOTICES All notices required by the contract shall be given in writing. 16. NONASS]GNABILITY 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 shaH indemnify and save harmless 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 ofthe contractor under this contract, including operations of subcontractors; and the contractor shall, at his own expense, appear, defend, and pay all fees of attomeys and all costs and other expenses arising therefrom or incUlTed in connection therewith; and, if any judgements shaH 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 harmless 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 fun compliance with all provisions of the Acts of the General Assembly oftbe 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. 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 f0l111 ofa certified check, or a bank cashiers check. All bid performance deposit checks will be retained by the Village until the bid award is made, at which time the checks will be promptly retumed to the unsuccessful bidders. The bid perfomlance deposit check of the successful bidder will be retained until the goods have been received 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 of these 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 of the product within the time frame 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 terminates the contract, the Village may procure equipment or supplies similar to those so terminated, and the contractor shaH 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 shaH take precedence. 24. PERMITS AND LICENSES The successful bidder shaH obtain, at his own expense, all pem1its 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 shaH 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 thereofby 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 ViHage, 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 matel;als 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. ---,._,-"-,._.,...-.""",.",',><,~.,.,,.-""",.~""'""'''';''''''''''''t''''''''-''--'''''''"''''''''-'--~'''''_"",_,"""",,,,,,,,=''''='",,.,~,~,.='r~c=,,=.=-_"_____-._~_~_~_..~.~_ 26. PREVAILING WAGES All laborers and mechanics employed by contractors and subcontractors on constl1Jction 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.C. 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.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 U.S.c. 133Z-15) and Section 2 of the Act ofJune 13, 1934, as amended (40 U.S.c. 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 information on or before the time at which the bid is required to be submitted: a. The location of the bidder's permanent 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. Anyadditional 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 Form (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 ofa 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 form included with the bid submittal sheets must be notarized. 29.DEVIA TIONS 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 ofthe Village after all 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 fuBy 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 ofa bid is an assumption that vendor has familiarized himselfwith all conditions and intends to comply with them unless noted otherwise. I. FORMS Bid forms are furnished by the Village. All bids must be submitted on the forms 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 information: company's name, address, item bid, date and time of opening. 2. ALTERNATE MULTIPLE 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 fi'om 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 Department 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. No 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 othenvise 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 wil1not be accepted regardless of post marked time on the envelope. 5. BIDS BY FAX Bids must be submitted on the original forms 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. CONSIDERATION OF BID No bid will be accepted from or contract awarded to any person, firm 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 performance ability and possession of necessary facilities, pecuniary resources and adequate insurance to comply with the ternlS oflhese 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 determining 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 inform 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 Village to be included. A contract will 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 B1DDER 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 locallav,ls, ordinances, rules and regulations. 14. CONTRACT ALTERATIONS No amendment ofa contract shaH 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, 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 haml1ess 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 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 harmless and defend the Village as herein provided. 18. EQUAL EMPLOYMENT OPPORTUNITY During the perfornlance 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. Limit! Ea. Occurrence Limit! Aggregate $1,000,000 $1,000,000 $1,000,000 $3,000,000 $3,000,000 $3,000,000 Automobile Liability Bodily Injury Property Damage $1,000,000 $ 1 ,000,000 $1,000,000 $1,000,000 Workers Compensation Employee Claims Employers Liability 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 form of a certified check, or a bank cashiers check. All bid performance 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 performance 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 ofinsurance 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 pOltions 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 perform the services within the time frame 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 liabiJity and indemnification coverages or perfornlance 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 of liability 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 a1l damages and expenses occasioned by such failure, refusal or delay. 26. PREV AILING 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.c. 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 V.S.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 U.S.c. 133Z-l5) and Section 2 of the Act of June 13, 1934, as amended (40 V.S.c. 276c). Nolless than the prevailing wage shall be paid for labor onlhe work to be done as required by law. 27. BIDDERS QUALIFICATIONS All bidders must submit the following information on or before the time at which the bid is required to be submitted: a. The location of the bidder's permanent 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 Form (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 ofa violation of State Law 33E-3 and/or 33E-4, prohibiting bid-rigging and bid rotation. 1t is necessary that this be done under oath. Therefore, the form included with the bid submittal sheets must be notarized. 29. DEVIA TJONS 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 Village after all bids have been examined and canvassed. --"~~"'Y'~"""<""'~'-'Y""='~'''''<'''''",~=,."",=::="7"""r=~!;tNo/,,,",,,,,,,,,,;;i";"'=,",=,,,',,,,,,.F"""""'."='."~==~'8==""'~"'''-=~___~___~'_'~_~_''''''~~'_'''''"'''''''''''''''''''''""'~'''''''"'-==-__''~~___~_.________________ Exhibit 6 VILLAGE OF MOUNT PROSPECT BID RECOMMENDATION - STANDARD MEMO FORMAT TO: V illage 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 follows: 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 several 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 01-001-00-000 I forthe XYZ Project. ''''"'~''''>'''''~'''':,';z",''~=;r..",..",=",.""~~~'l;'''1X~;p.:%'__'''''~'=<,"=",,,,,,~=='~=",'=""="""=_"''''''~''W,~_.___.. BID RECOMMENDATION - STANDARD MEMO FORMAT Additional Information I. When a memo is from an individual other than a department director, a director's recommendation is required. A signature line would read as follows: 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. Ifthe amount of the bid exceeds the budget amount, the memo must outline that a limit will be imposed or whether there is a reason for exceeding a budgeted amount. VillAGE OF MOUNT PROSPECT 50 SOUTH EMERSON STREET MOUNT PROSPECT, ILLINOIS 60056 Exhibit 7 IpURCHASE ORDER Nol 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: 847 870-5640 jlTEM QTY U!M DESCRIPTION UNIT PRICE EXTENDED PRICE I NO. 1 WELLER CREEK TREE TRIMMING/REMOVAL 37000.00 37000.00 CONTRACT - PER SPECS DATED 7/23/04 ACCOUNT DISTRIBUTION: 5907704-690079 37000.00 I I I I I I I I I *CONFIRMA TION-DO NOT DUPLICA TE* THIS ORDER IS EXEMPT FROM SALES AND USE TAX. EXEMPTION NUMBER IS E9998-1475-04. see REVERSE SIDE FOR IMPORTANT INFORMATION TOTAL OF PURCHASE ORDER 37000.00 Please mail invoice to: Accounts Payable Village of Mount Prospect 50 South Emerson Street Mount Prospect, IL 60056 PLEASE REFERENCE THIS PURCHASE ORDER NUMBER AND YOUR FEDERAL TAX 10 ON INVOICE. APPROVED BY: J~ ttJ. U- Director of Finance VILLAGE OF MOUNT PROSPECT Check Request Exhibit 8 Vendor No. Check No. Date Submitted by Department Director Account Number Description . Amount TOTAL Account Number Checked Funds Available Initials Approved: Director of Finance Revised 3/00 "--...-_..~-~.."q"';';",.,,,,,,,,,,.~~,,,,,,,(.,,,,.,.,,,,,,,,,,,,,..~;..t,,,,,.''."'rm'.1""""""";::"'t~;~''''"______''''''="''''-=-",7';7''''''';;::'''%o/=''%'%'''''''''"'''"","~."~---'-----"-'-'--'----__'_"~'~_~_' Exhibit 9 . '.' "''';~~'i~lt'''!lt!~,:;II_"i<:i:i;<,; ...:..... No. DATE '. .. .,. '.' E1.~~Riiar4\;t)F'i~:m@i/.;$eiq\llG~iR\dRGfilA$Etr.,'1;-~';;",' > . :~:.yA1Vl!;il.JfN!f.~ CHARGE TO ACCOUNT TOTAL <.';;:';:. "1':;:'; ...:.... ~,,~.". >~ RECEIVED BY APPROVED BY Wl'oN FOAM SODB MACE IN lJ.S.A. ...._~---~'.__.., .--- -_..~_..__.._._.~_...-_.~.._-~..~-- ._.. '--'___"_"_"_'_C"_~=-~'=~''''''_~_"______''~~'''''''_",,",='",,<'=''''''"''',,",,~~'<='"'~--~-~-'----'--___~''''''m.__~_~~_~.___'_'' EXHIBIT 10 GENERAL RESPONSIBILITIES 1. General responsibilities · This card is to be used to purchase supplies, materials and other items for Village use only. · The Costco Credit Card (CCC) is not a personal credit card and remains the property of the Village of Mount Prospect. The liability for all outstanding charges on the card is with the Village. Therefore, the card should only be used for purchases required in the normal course of business. · Cardholders cannot use the CCC for personal purchases with the intent of reimbursing the Village at a later date. · The CCC that the cardholder receives has the cardholder's name and account information included on the back of the card. It may not be transferred to, assigned to, or used by anyone other than the designated cardholder. · Mount Prospect retains the right to cancel a cardholder's CCC. Cards may be revoked for misuse or non-compliance of procedures. 2. Cardholding Spending Limit · The "Designation of Authority" that has been provided to each cardholder sets a total for all purchases made within a given billing cycle (25 days) at $1,000. · The credit limit on each card was preset based on certain usage assumptions. If the credit limit on your card is not adequate to handle planned purchases, contact the Finance Director. 3. CCC Security · Keep the CCC in a secure location. Since you, as the cardholder, should be the only one using the card it needs to be accessible only to you. · Guard the account number carefully. Do not post it at your desk or write it in any place that is easily accessible to others. · Similar to a personal credit card, if the CCC is lost/stolen you must immediately notify the Finance Department and credit card company by phone. Use of the card will be suspended and a replacement card will be issued. 4. TransferredlTerminated Employee (Canceling the Card) · CCC are issued to individual employees. If an employee leaves the department, whether transferred to another department or terminated, it is the supervisor/department head's responsibility to obtain the CCC from the cardholder that is terminated/transferred and return it to the Finance Director. The return of the card should be handled at the department sign-off, which is part of the exit process. ~<^"~,,,,-,,,,,,"-:'j,,-,',.',"."-~^'?:.:,,,=~~.'~\:r~=.'~~",,;:;'w.,"p=;m;:T""......"""'~='" 5. Personal Credit Rating · The CCC and all the charges on it are Village liabilities. Therefore, it has no impact on your personal credit rating. . Remember that you signed an agreement with the Village prior to receiving the CCC and as such you are responsible for any abuse as outlined in this manual. 6. Audits · To ensure the success of the CCC program and the Village's financial responsibility, continual audits of a cardholder's CCC documentation and files will occur. . The primary purpose of the audit is to ensure that complete and accurate record keeping is occurring and that all CCC program procedures are being followed. 9. For Whom Can a Cardholder Purchase . The cardholder whose name appears on the CCC may purchase supplies, materials and other items for Village use for any employee that is located in the cardholder's department if the cardholder has received authorization from a supervisor/department head to do so. 10. Consequences for Failure to Comply with Program Guidelines · Permanent revocation of Card · Collection of unauthorized purchase amounts . Disciplinary actions that may include termination and legal action. 2 GUIDELINES FOR USE 1. Guidelines for Card Use It is the responsibility of each cardholder to be acquainted with the Purchasing Policies and guidelines of the Village and to make card purchases in accordance with these policies. Examples of the types of transactions your Costco Credit Card could be used for include: · Office Supplies · Luncheon Supplies (for authorized Village functions) · Miscellaneous Operating Supplies Do not use your Costco Credit Card on expenditures for the following items. · Purchases in excess of $1,000, without completing the appropriate purchase order process. · Professional Services and IRS 1099 required Services · Individual purchases which have been artificially separated from larger or bulk requirement to fall within spending limits. Each of these areas requires a level of review or approval beyond the limit of authorization. Prior approval from the Manager's Office is required for the following items: · Purchases of electronics (including, but not limited to computers, televisions, stereos), liquor and gasoline. · Purchases for Boards & Commissions 2. How to Purchase - Cardholder Responsibilities · Cardholder is responsible for ensuring receipt of materials and supplies, and resolving any receiving discrepancies or damaged goods issues. · Although Costco has the Village's tax-exempt number on file, the cardholder is responsible for indicating that the Village is TAX EXEMPT, and therefore should not be charged sales tax. Documentation will indicate if sales tax has been charged. Repeated neglect by the cardholder will result in card privileges being revoked. 3. General Instructions On How to Purchase · Identify an item that you wish to pay for with the Costco Credit Card. · Determine if the item is one prohibited by Village policy for purchase. · At check-out · Submit Costco Credit Card to cashier. 3 --~-- "-"-"-="""""~N-n='"9~"'"_~"~ 3. General Instructions On How to Purchase (cont.) · Notify the cashier that the Village is Tax Exempt and should not be charged sales tax. The Village's tax-exempt number is E9998-14-7505. Upon receiving invoice review sales slip to determine all amounts were properly charged and retain the receipt. 4. If Approval is Denied · If Costco advises that card approval has been denied; it is most likely a violation of one of the established levels of authority checks. · The purchase exceeds the single dollar transaction limit (individual card limit). · The account is over the set monthly limit (aggregate limit). Costco will not have information related to the reason for denial, nor does the cardholder have the authority to obtain this information from the Bank. If a transaction is denied, the cardholder should contact the Finance Department for assistance. 5. Reconciliation Responsibilities · Master statements are mailed to Village Finance Department on a monthly basis. The billing cycle ends on the 26th of every month. · A reconciliation of transactions between the monthly statement and your Costco Credit Card log will be performed by the finance department. · A "Costco Credit Card Log File" (see attached) has been provided to you to record transactions and aid in reconciliation. Cardholders are required to submit the Log by the 3rd of every month to assist Finance in monitoring card activity and to aid the reconciliation process. · Cardholders are required to attach to the Log all sales receipts and packing slips for the transactions listed on the statement in the order as they appear on the statement. Please number the transactions on the log as well as the receipt, and attach the receipts in that order. · If a receipt cannot be obtained after a reasonable effort, you should write not "No Receipt" on the log next to the item. This will be allowed on an exception basis only, and continued failure to provide receipts will result in card privileges being revoked. · The log with attached receipts must be signed by the cardholder as proof of reconcilement and then forwarded to the Finance department. 6. Disputed Billing · If you have a problem with a purchase item or billing of an item, you should first try to reach a resolution directly with Costco. Most problems can be resolved expeditiously in this manner. · The cardholder is responsible to follow-up with Costco on any erroneous charges, disputed items, or returns. 4 7. Approval of Card Use · Approval of the transactions that cardholders have made using the Costco Credit Card will not be totally defined in this literature. Department Heads or designees, because of their knowledge of the job responsibilities of the cardholders, are required to look at each cardholder's purchases in order to determine if these items were for Official Use and if they were allowed to be purchased in accordance with the instructions provided. · If for any reason the department head or designee questions the purchase(s); it is their responsibility to resolve the issue with the cardholder. If they cannot be satisfied that the purchase was necessary and for Official Use, then the cardholder must provide a Credit Voucher proving item(s) have been returned for credit, or the full amount of the purchase will be deducted from the card holders next payroll check. · Resolution for improper use of the Purchasing Card will be the responsibility of the department head or designee to resolve. 5 EXHIBIT 11 Village of Mount Prospect Costco Credit Card Acknowledgement Form I, , hereby acknowledge receipt of a Costco credit card, card number . As a cardholder, I accept responsibility for keeping the card in a secure manner. If I lose the card, I will report the loss to my supervisor and to the credit card company immediately. I further acknowledge that I have received a copy of the Village's purchasing policy and have read and understand it. I also acknowledge that I have received a copy of the general responsibilities and guidelines for use of the Costco credit card and intend to comply with these guidelines. I understand that this Costco credit card will be used only for official Village business and that all purchases will be made in accordance with the Village's purchasing policy. Under no circumstances will I use the Costco credit card for personal purchases. I further understand that the Finance Department will audit the use of this card and report any discrepancies to the appropriate person(s). I understand that improper use of this card may result in disciplinary action, up to and including termination of employment. I agree to surrender the credit card at the point that I am no longer employed by the Village or if requested to do so by a supervisor. Applicant Signature Printed Name Date Mount Prospect Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: FROM: DATE: SUBJECT: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE FEBRUARY 9, 2006 REVISED INVESTMENT POLICY PURPOSE: To present an updated investment policy to the Village Board identifying changes to the depositories and broker/dealers listed in Exhibit A of the policy. BACKGROUND: The Village has had an approved investment policy since 1985. The policy sets forth the requirements for the investment of public funds. Included in the policy is a list of all financial institutions the Finance Department is authorized to conduct business with. The policy was last amended on February 2004. Section 16.0 of the policy states that the Director of FinancelTreasurer shall review the policy on an annual basis and any modifications made thereto must be approved by the Board of Trustees. DISCUSSION: As part of the annual review of the investment policy, the list of authorized financial institutions and broker/dealers (Exhibit A) is reviewed so it reflects current, existing entities. In addition, it is also prudent to add/remove institutions and brokers/dealers from time to time to allow the Village more flexibility in managing its investments. Currently, the Village is authorized to conduct business with eight (8) financial institutions and eleven (11) broker/dealers in managing its investment portfolio. Since the last review, authorized institutions included on the list have changed ownership and no longer exist in that name. In addition, authorized institutions and broker/dealers not currently being utilized are planned for removal from Exhibit A. Each institution affected by the revisions to the policy (either by name change or addition to the authorized list) will receive an updated investment policy and will be required to sign off on its receipt and understanding of the contents thereof. RECOMMENDATION: It is recommended the Village Board approve revisions made to the Village's Investment Policy, including Exhibit A. /) f' . ' U~~#, &C DAVID O. ERB DIRECTOR OF FINANCE 1:\lnvestments\2006\Board Memo-February 2006-Additional Authorized Inst..doc "_-"'~''';'==''''''''''='-~~''''""r,"""~,,,",';;<:,n:'l'~'~='';;;'$~~,",,,,__=''''''''''~""==",,,,'"':;;;t<:;:,==",:mw:?I"=C~'='tt=_==~__~__~.___ VILLAGE OF MOUNT PROSPECT, ILLINOIS INVESTMENT POLICY 1.0 Policy It is the policy of the Village of Mount Prospect to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the Village and conforming to all state and local statutes governing the investment of public funds. The following investment policy is hereby promulgated for use by the Village of Mount Prospect. 2.0 Scope This investment policy applies to the investment activities of all funds of the Village of Mount Prospect, except for the Police and Firefighters' Pension Funds that are subject to the order of the Board of Trustees of each respective Fund. The Illinois Compiled Statutes will take precedence except where this policy is more restrictive wherein this policy will take precedence. 3.0 Prudence The standard of prudence to be used by the investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investments shall be made with the judgement and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital, as well as the probable income to be derived. Investment officials of the Village of Mount Prospect acting in accordance with this investment policy and written procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that material deviations from expectations are reported to the Village Manager in a timely fashion, and appropriate action is taken to control adverse developments. 4.0 Investment Objectives The primary investment objectives, in order of priority, shall be: . Legality - The investment activities of the Village will conform to federal, state and local legal requirements. INVESTMENT POLICY Page 2 · Safety - The preservation of capital and protection of investment principal shall be the primary concern of the investment officials in selecting depositories or investments. · Liquidity - The investment portfolio shall remain sufficiently liquid to meet all operating requirements, which might be reasonably expected. · Return - The investment officials shall seek to obtain a market average or better rate of return throughout budgetary and economic cycles, taking into account investment risk, constraints, cash flow, and legal restrictions on investments. The portfolio should be reviewed periodically as to its effectiveness in meeting the Village's needs for safety, liquidity, rate of return, diversification and its general performance. When deposits of Village monies become collected funds, and it is determined that those funds are not needed for immediate disbursement, those funds shall be invested within two working days at prevailing rates of return. 5.0 Delegation of Authority Management and administrative responsibility for the investment program is hereby delegated to the Director of Finance/Treasurer who, under the delegation of the Board of Trustees, shall establish written procedures for the operation of the investment program. 6.0 Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. 7.0 Authorized Investment Advisors, Broker/Dealers and Financial Institutions The Director of Finance/Treasurer shall maintain a list of all investment advisors, broker/dealers and financial institutions authorized by the Village Board to provide investment services, attached hereto as Exhibit A. It shall be the policy of the Village of Mount Prospect to select financial institutions on the following basis: · Security: The Village will not maintain funds in any financial institution that is not covered by the Federal Deposit Insurance Corporation. Furthermore, the Village will not maintain funds in any financial institution not willing or capable of posting required collateral for funds in excess of the FDIC limits. 2 INVESTMENT POLICY Page 3 . Size: The Village will not select as depository any financial institution in which the Village funds on deposit will exceed 50% of the institutions stated capital stock and surplus. . Location: The Village will maintain operating and investment accounts in financial institutions located within the corporate boundaries of the Village of Mount Prospect whenever economically beneficial to the Village, and when not precluded by other standards of this policy. However, the Village may approve qualified depositories regardless of location. . Statement of Condition: The Village will maintain for public and managerial inspection the last two sworn statements of resources and liabilities that the institution is required to file with the Commissioner of Banks or the Comptroller of the Currency. . Services and Fees: Fees for banking services shall be mutually agreed to by the depository bank and the Director of Finance/Treasurer on an annual basis. Whenever possible, the Village shall cover fees for services by means of compensated balances. Investment advisors and broker/dealers shall be selected based upon their overall experience with Illinois municipalities and the Illinois Compiled Statutes with regard to the Investment of Public Funds Act. Broker/dealers will also be selected on the basis of credit worthiness as well as their ability to obtain competitive prices on securities purchased and sold on behalf of the Village. 8.0 Authorized and Suitable Investments Investments may be made in any type of security allowed for in the Public Funds Investment Act (30 ILCS 235/2). A summary of authorized investments follow: a.) Notes, bonds, certificates of indebtedness, treasury bills, or other securities, which are guaranteed by the full faith and credit of the United States of America. b.) Bonds, notes, debentures, or other similar obligations of the United States of America or its agencies. c.) Interest-bearing savings accounts, interest-bearing certificates of deposit or interest- bearing time deposits or any other investments constituting direct obligations of any bank as defined by the Illinois Banking Act. d.) Short term obligations of corporations organized in the United States with assets exceeding $500,000,000 if (i) such obligations are rated at the time of purchase at one of the 3 highest classifications established by at least 2 standard rating services and which mature not later than 180 days from the date of purchase, (ii) such purchases do not exceed 10% of the corporation's outstanding obligations and (iii) no more than one-third of the Village's funds may be invested in short term obligations of corporations. 3 INVESTMENT POLICY Page 4 e.) Money market mutual funds registered under the Investment Company Act of 1940, provided that the portfolio of any such money market mutual fund is limited to obligations described in paragraphs (a) and (b) of this section. f.) Repurchase agreements, subject to the requirements and limitations set forth in 30 ILCS 235/2. g.) Illinois Funds, the investment pool administered by the Illinois State Treasurer, and h.) Illinois Metropolitan Investment Fund. Investments shall be made that reflect the cash flow needs of the fund type being invested. The Village will specifically avoid any purchase of financial forwards or futures, any leveraged investments, and lending securities or reverse repurchase agreements. 9.0 Collateralization Funds on deposit in checking accounts and certificates of deposit in excess of FDIC insurance limits must be secured by some form of collateral, witnessed by a written agreement and held in the name of the Village at an independent/third party institution. The Village will accept any of the following assets as collateral: . U.S. Government Securities · Obligations of Agencies or Instrumentalities of the U.S. Government · Obligations of the State of Illinois · Obligations of the Village of Mount Prospect · General Obligation Municipal Bonds rated "A" or better · Any other collateral acceptable for use by the Treasurer ofthe State of Illinois The amount of collateral provided will not be less than 110% of the fair value of the net amount of public funds being secured. The ratiofl: of fair value of collateral to the amount of funds being secured will be reviewed at least quarterly. 10.0 Safekeeping and Custody All security transactions, including collateral for repurchase agreements, entered into by the Village, shall be conducted on a delivery-verses-payment (DVP) basis. Securities will be held by an independent third party custodian designated by the Director of Finance/Treasurer and evidenced by safekeeping receipts and a written custodial agreement. 4 INVESTMENT POLICY Page 5 11.0 Diversification The Village shall diversify its investments to the best of its ability based on the type of funds invested and the cash flow needs of those funds. Diversification can be by type of investment, number of institutions invested in, and length of maturity. In order to reduce the risk of default, the investment portfolio of the Village shall not exceed the following limits: . No financial institution shall hold more than 20% of the Village's investment portfolio, exclusive of any securities held in safekeeping. . Investment in the Illinois Funds shall not exceed 40% of the investment portfolio. . Investment in the Illinois Metropolitan Investment Fund shall not exceed 10% of the investment portfolio. 12.0 Maximum Maturities To the extent possible, the Village shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the Village will not directly invest in securities maturing more than two (2) years from the date of purchase. Reserve funds may be invested in securities exceeding two (2) years if the maturity of such investments are made to coincide as nearly as practicable with the expected use of the funds. 13.0 Internal Control The Director of Finance/Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Village are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable, not absolute, assurance that these objectives are met. The internal controls shall address the following points: . Control of collusion . Separation of transaction authority from accounting . Custodial safekeeping . Written confirmation of telephone transactions for investments and wire transfers 14.0 Performance Standards The Village's investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a comparable rate of return during a market/economic environment of stable interest rates. Portfolio performance should be compared to benchmarks with similar maturity, liquidity, and credit quality as the portfolio. The Village will use the ninety-day Treasury bill rate as its benchmark. 5 INVESTMENT POLICY Page 6 15.0 Reporting The Director of Finance/Treasurer shall prepare an investment report at least monthly, and submit said report to the Board of Trustees. The report shall include a management summary that provides an analysis of the status of the current investment portfolio. The report will also include the following information: · Listing of individual securities held at the end of the reporting period by maturity date. · Average weighted yield to maturity of the portfolio. · Average weighted maturity. · Percentage of the total portfolio that each type of investment represents. At least quarterly, the investment report shall include a summary of the unrealized gains or losses resulting from appreciation or depreciation by listing the cost and market values of all securities with an original maturity of over three months. The quarterly report will also include a list of transactions made over the last quarter. 16.0 Investment Policy Adoption The investment policy shall be adopted by the Board of Trustees. The policy shall be reviewed on an annual basis by the Director of Finance/Treasurer and any modifications made thereto must be approved by the Board of Trustees. This policy was adopted by the Village Board this 20th day of July 1999 pursuant to Resolution 36-99. Exhibit A of the policy was first amended on April 17, 2001 then again on February 17, 2004. Further revisions to the policy and amendment of Exhibit A were adopted on February 21, 2006. 6 Exhibit A VILLAGE OF MOUNT PROSPECT INVESTMENT POLICY LISTING OF AUTHORIZED ADVISORS, BROKERS/DEALERS AND FINANCIAL INSTITUTIONS Authorized Financial Institutions Bank OneJ.P Morgan-Chase ABN AMRO-LaSalle Bank Northern Trust Mount Prospect National Bank MB Financial Fifth Third Bank Cole Taylor Oak Brook Bank Charter One Bank Authorized Investment Broker/Dealers Wachovia Securities Smith Barney Inc. Northern Trust Co. ABN AMRO-LaSalle Bank Capital Gains Segal Bryant & Hamill PMA Financial Network Mischler Financial William Blair & Co. Griffin, Kubik, Stephens & Thompson Fifth Third Bank Authorized Investment Advisors Becker Burke Associates I:\Investments\Investment Policy Exhibit A.doc