The URL can be used to link to this page

Home My WebLink About7. MANAGERS REPORT 12/18/2007 Mount Prospect Mount Prospect Public Works Department ~ INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS $~' tl~ . IZ. 1./01 FROM: WATER & SEWER SUPERINTENDENT DATE: DECEMBER 3, 2007 SUBJECT: BID RESULTS FOR EMERGENCY GENERATOR (CIP) - ($510,722) Background In the capital improvement program (CIP), there are funds available over the next five years to provide diesel-powered emergency generators for the Village's deep wells and pumping stations. The deep wells and pumping stations are the Village's emergency water source in the event that flow from the North West Suburban Municipal Joint Action Water Agency (NSMJAWA) is disrupted. The first generator is slated for Well 5 located at 112 East Highland. The Public Works Department obtained the services of the Farnsworth Group to provide the technical expertise necessary to specify an appropriately sized generator to power all of the pumps, the deep well, and all ancillary electrical equipment in the pump station during in a loss of ComEd line power. Farnsworth determined that a 750kw generator was of sufficient size and capability to meet the Village's needs. Farnsworth also created the specification to procure the needed equipment. With each generator, there will be a super critical muffler, a sound attenuated enclosure to house the generator and an above-ground, fire-rated, 4,000 gallon concrete diesel fuel storage tank. The physical size of these units (24'L x 10'W x 8'H) makes it impractical for the unit to be configured as a tow-behind portable. Consequently, the specifications call for a permanent installation. See Attachment A for a graphical depiction of the proposed layout for this equipment at Booster Station 5. In 2006, above ground utility poles and the old transformer bank were removed at Well . 5. As part of this work, the underground conduit and switchgear were pre-installed to accommodate the generator. This method of preparing each station for their generator with the necessary electrical improvements and underground conduits will continue for each of the future generator sets. Bid Results for Emergency Generator (CIP) November 27,2007 Page 2 of 3 Bid Results On Monday, November 12, 2007 at 10:00 A.M., sealed bids for the proposed purchase of Emergency Generator(s) were opened and read aloud. Three invitational bids were distributed and public notice was placed in a local newspaper as required. Two additional bids were acquired by unsolicited vendors. Two bids were received. The result was as follows: Bidder Bid Price Patten Power Systems Elmhurst, IL $255,361 $261,538 Cummins NPower Systems Hodgkins, IL Discussion The consultant and staff have reviewed the bid submittals and find that both of the bidders meet the intent of the specification, are qualified and are proposing similar equipment. Patten Power Systems has worked with the Village in the past as they recently provided the standby generator for the Village Hall. Staff finds that Patten Power Systems of Elmhurst, Illinois is the lowest responsible bidder. Since the manufacture and delivery of the generator set will take approximately 26 weeks after order, the specification and bids were prepared to include an alternate bid item to provide for the purchase of two (2) generator sets. Staff is recommending that the Board authorize the purchase of two (2) generator sets (1 - 2007 Budget/1 - 2008 Budget.) The second generator would follow the Capital Improvement Program schedule and would be installed at Well 16 located at 1629 West Algonquin Road. Attachment B depicts this proposed location. The underground conduit and switchgear work at Well 16 will be completed by early June 2008 before the generator sets are delivered. The next phase of the project would be to secure an electrical contracting firm to install the generator sets. A bid award recommendation for this work will be forthcoming for the Board's consideration after the delivery window for the generator is established. The aforementioned electrical modifications and preparatory work at Booster Station 16 will be included in scope of the generator installation bid. Bid Results for Emergency Generator (CIP) November 27, 2007 Page 3 of3 Bid Recommendation I recommend accepting the lowest qualified bid for the purchase of two (2) Emergency Generators as submitted by Patten Power Systems of Elmhurst, Illinois at a cost not to exceed $510,722. Sufficient funds for this proposed purchase are available in account 6105505-670301 Emergency GeneratorlWells (CIP) on page 245 of the current 2007 Budget and page 246 of the proposed 2008 budget. -~~~ Matt Overeem Water & Sewer Superintendent Glen R. Andler Director of Public Works MOl meo H:\Water\generators\emergency generator station 5.doc I. I I PROPOSED LAYOUT OF BOOSTER STATION :# 5 ~ ..J - " 1 .... ., ~ .' ......... ..... J (. ;.;r ~ . If... .."" J 0 .... --- ~ " .~.<.. ........ ~ -'.. ,- :.~ JI .:,~..~. ...' " .. .. I It': ;.; ;.:~ .; "'.II.. . .. tIo -.. . .:-,:'. L ....:1. . · ~';.-"".'" ,. :'. . ....po. , ." "',., ~ - '. "...-:. i I .t: __ .If"' . ....ilIo... . ..... . 1:1>,,"1:-............ '....... _t.......~..'" } ~ - . ~ ", f.- ''''r-' . "'~... t''IG>~. ...-- ~'-:..1.- PROPOSED LAYOUT OF BOOSTER STATION #. 16 Mount Prospect ~ INTEROFFICE MEMORANDUM ~ TREE CITY USA Mount Prospect Public Works Department TO: VILLAGE MANAGER MICHAEL E. JANONIS ~b. )...\"tb,) 12.) .810; FROM: FORESTRY/GROUNDS SUPERINTENDENT DATE: DECEMBER 4, 2007 SUBJECT: BID RESULTS - TREE REMOVALS - $165,000.00 BACKGROUND Sealed bids for parkway tree removals in 2008 were opened on December 3, 2007. This co act requires removal of dead, dying or structurally unsound parkway trees to ground level. In order to maximize the number of potential bidders, this year we added a provision allowing contractors to bid on one, two or three partial contracts. (In this way, smaller contractors who did not have enough labor and equipment to complete one large contract could be considered for at least some of the work.) We also included a provision which will allow us to extend the contract(s) for a second year at the same bid prices, if both the contractor and Village agree. BID RESULTS Sixteen invitational bids were mailed and a notice was published in a local newspaper. Five bids and one "no bid letter" were received. Bid results were as follows: Bid Price for each l'artial contract # of proposed contracts Powell Tree Care, Inc. Steve Piper & Sons Winkler's Tree Service Asplundh Tree Experts Kramer Tree Specialists Nels J. Johnson Tree Experts $50,200.00 $58,052.50 $62,359.50 $63,760.00 $75,550.00 NO BID Three Two Three Two Three DISCUSSION At the time the bid specifications were prepared the actual number of trees to be removed was unknown. However, based on past experience we estimated that 192 trees would need removal during the year. Bidders were asked to submit a price per inch for removal of trees in each of five different size classes. In order to draw comparisons between various bids, we asked bidders to use our estimated quantities to calculate an extended cost. The low bidder, Powell Tree Care, Inc., held one of our 2007 regular tree removal contracts and performed very well. Additionally, they were one of the three contractors who performed H'''''nr"drvIWOROI,)OOllIRFMOV A I.IMFMO-RFMOV AI. RECOMMFNDA TION.DOT "emergency tree work" almost daily during the two weeks following the August 23 storm. Finally, they accepted many additional storm-related tree removals following that period, holding their original bid prices and promptly completing all work as specified. BID RECOMMENDATION The lowest qualified bidder, Powell Tree Care, Inc., bid on all three partial contracts, so we can combine all removals into one large contract. On page 222 of the 2008 budget, a total of $165,000.00 has been budgeted for Tree Removal. Therefore I recommend award ofa two-year tree removal contract to Powell Tree Care, Inc. Year one will be in an amount not to exceed $165,000.00. Year two will be limited to whatever amount is appropriated in the 2009 budget. / ~.AJ ~ _. Sandy Clark7 6d~~ Director of Public Works I concur: Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE "!b.~ \2.l''1o( TO: DATE: DECEMBER 11, 2007 2008 PROPERTY AND WORKERS COMPENSATION INSURANCE PROGRA SUBJECT: PURPOSE: To present a recommendation for the property and workers compensation insurance program for the policy year beginning January 1, 2008 and ending December 31, 2008. DISCUSSION: The Village's current property and workers compensation insurance policies are set to expire on December 31, 2007. Over the past several years the Village was limited to negotiating with the existing broker and insurance companies to secure coverage due to the lack of brokers and insurers in the marketplace. Recently there has been a loosening in the marketplace with respect to property rates outside of catastrophic zones. As such, the Village went out into the market to receive quotes for property and inland marine coverage. Market conditions and current loss history does did not afford the same opportunity for obtaining quotes on our workers' compensation coverage. The following is a brief summary of our expiring insurance program, an analysis of the proposals received, and a summary of the insurance package being recommended by staff and its consultant. Expiring Program Attached is the current schedule of insurance in force, showing the type of coverage, the carrier, policy limits, and the broker of record (Attachment I). Village buildings and vehicles were insured this past year by Federal Insurance (Chubb) Company. The amount of coverage was $63.2 million, with a $25,000 deductible. The annual premium was $86,849. The broker offering the coverage was Arthur J. Gallagher and Co. The Village has been self-insured for liability insurance since 2005. Prior to 2005 the Village purchased conventional coverage. The change in the insurance program was based on a recommendation from our insurance consultant and the results of an actuary study. The Village elected to self-insure for liability coverage up to the point where excess coverage is available from HELP, the high-level excess liability pool ($2,000,000). Excess workers compensation coverage was purchased from Safety National, which insured the Village for individual claims in excess of $400,000. There is a $1 million aggregate limit for worker compensation claims. The annual premium was $36,967. The broker was Arthur J. Gallagher and Co. Proposal Received Nugent Consulting Group assisted the Village in securing quotes from Federal Insurance (our current insurance provider) and Great American for property & inland marine coverage. An additional provider was solicited to provide a quote for the excess workers' compensation coverage. Unfortunately, current terms and conditions for coverage were beyond what the provider was willing to offer. Consequently, efforts were put into negotiating with the current provider, Safety National. Mr. Nugent presents a summary of renewal offered by Arthur J. Gallagher and Co. for the PROPERTY AND CASUALTY INSURANCE PROGRAM 12/12/2007 Page 2 upcoming policy period and a breakdown of premium by coverage type for 2006, the current policy year (2007) and our 2008 renewal (Attachment II). The renewal quote for property coverage from both providers decreased from the prior year due to the loosening of the market. Federal Insurance quoted $74,248 while Great American quoted $74,705. Insured values for property coverage increased 2.5% while premiums decreased 10%. The renewal quote for inland marine coverage decreased as well from the prior year. Federal Insurance quoted $3,506 while Great American quoted $2,051. The renewal quote for excess workers compensation coverage increased 14.9% from the prior year from $36,967 to $42,473. For 2007, the self-insured retention level of public safety employees (Police and Fire) was $500,000 while the retention level for all other employees was $400,000. For 2008, the self-insured retention level for all employees is now $500,000. New legislation and difficulties in managing workers compensation claims is responsible for the continued increase in the retention amount and regularly increasing premiums. The total for all premiums under the Federal Insurance quote is $131,457 while the total premium from Great American is $130,459. A total of $144,000 is included in the proposed 2008 budget for this coverage. While the combined quote from Federal Insurance is higher by $998, they are providing $5 million in extra expense coverage (General American provides just $1.3 million). This covers the extra expense to support continuing operations if a public facility was rendered untenantable by fire or any other insured peril and necessitated a move to a temporary location. This would include many extra expenses, such as rent, installation oftelephones and computer networking. Extra expense insurance covers such expenditures over and above the normal monthly expenses. All the insurance companies submitting quotes are very sound financially and have an excellent claims payment history. Federal Insurance/Chubb Group is rated A++, XV (Superior) by A.M. Best, a recognized insurance company rating service. Great American is rated A, XIV (Excellent) and Safety National Casualty Corp. is rated A, IX (Excellent). RECOMMENDATION: It is recommended the Village purchase property and excess workers compensation insurance from Arthur J. Gallagher and Co. with premiums and broker's fees totaling $131,457. ~~. CL. DAVID O. ERB DIRECTOR OF FINANCE DOE/ Attachments 1:\Insurance\Memos\2007\2008 Renewal- Property and We.doc Attachment I VILLAGE OF MOUNT PROSPECT SCHEDULE OF INSURANCE IN FORCE December 31, 2007 Deductiblel Specific Aggregate Self-Insured Excess Excess Expiration Policy Type of Coverage Carrier Retention Limit Limit Date Number Broker Premium Property & Inland Marine Federal Insurance I Chubb $25,000 $63,161,128 none 01/01/08 35826710 Arthur J. Gallagher $86,849 Workers' Compensation Safety National Insurance Co. $500,000 Statutory $1,000,000 01/01/08 SP-1H74-ll Arthur J. Gallagher $36,967 General liability N/A $2,000,000 $0 $0 - - $0 Auto liability N/A $2,000,000 $0 $0 - $0 Employment Practices Liability N/A $2,000,000 $0 $0 - - $0 Police Professional Liability N/A $2,000,000 $0 $0 - $0 Public Officials Liability N/A $2,000,000 $0 $0 - $0 (Errors and Omissions) Fiduciary Liability - Police Pension Federal Insurance I Chubb $25,000 $5,000,000 $5,000,000 08/01/08 8158-5499 Arthur J. Gallagher $9,061 Fiduciary Liability - Fire Pension Federal Insurance I Chubb $25,000 $5,000,000 $5,000,000 08/01/08 8169-8992 Arthur J. Gallagher $10,378 Excess Liability High-level Excess Liability Pool $2,000,000 $12,000,000 $12,000,000 04/30/08 nla nla $71,460 Public Employee Dishonesty ITT Hartford $5,000 $500,000 none 05/01/08 83BPEAD4895 Hobbs Group $2,423 Depositors Forgery ITT Hartford $1,000 $100,000 none 05/01/08 83BPEAD4895 Hobbs Group Incl. in above Public Officials Bond - President ITT Hartford $0 $100,000 $100,000 05/01/08 83BSBDK7589 Hobbs Group $400 Public Officials Bond - Manager ITT Hartford $0 $100,000 $100,000 05/01/08 83BSBCQ9763 Hobbs Group $400 Public Officials Bond - Treasurer ITT Hartford $0 $250,000 $250,000 05/01/08 83BSBAK8746 Hobbs Group $1,150 Contingent Tax Interruption Chubb $25,000 $9,000,000 $9,000,000 01/01/08 35826710 Arthur J. Gallagher Incl. in Prop Employee & Retiree Health Ins. Intergovernmental Personal $20,000 I Benefit Cooperative $75,000 none none 06/30/08 nla nla Varied Third Party Administrators Workers Comp Claims Admin CCMSI Liability Claims Admin. GAB Robins Attachment II VilLAGE OF MOUNT PROSPECT 2008 INSURANCE RENEWAL 2008 Proposals Actual Actual Safety Great Federal 2006 2007 National American Insurance Property $ 88,124 $ 83,070 $ 74,705 $ 74,248 Inland Marine $ 3,998 $ 3,779 $ 2,051 $ 3,506 Excess Workers Compensation $ 35,000 $ 36,967 $ 42,473 $ 127,122 $ 123,816 $ 42,4 73 $ 76,756 $ 77,754 Gallagher Fee $ 10,187 $ 10,696 $ 11,230 $ 11,230 $ 11,230 Total Fee for Renewal * $ 137,309 $ 134,512 $ 130,459 $ 131,457 Property Values $ 61,321,483 $ 63,161,128 $ 64,729,190 $ 64,729,190 Property Deductible $ 25,000 $ 25,000 $ 25,000 $ 25,000 Auto Physical Damage Deductible $ 100,000 $ 100,000 $ 100,000 $ 100,000 WC Self-insured Retention $ 400,000 $ 400,000 $ 500,000 $ 500,000 WC Self-insured Retention - Police/Fire $ 400,000 $ 500,000 $ 500,000 $ 500,000 * Total proposed fee for 2008 includes premiums for Property, Inland Marine and Excess Workers' Compensation Coverage. Mount Prospea ~ Mount Prospect Public Works Department INTEROFFICE MEMORANDUM FROM: DEPUTY DIRECTOR OF PUBLIC WORKS TO: VILLAGE MANAGER MICHAEL E. JANONIS DATE: DECEMBER 11, 2007 ACCEPT PROPOSAL FROM CE DESIGN FOR DESIGN ENGINEERING SERVICES I PROSPECT MEADOWS WATER AND STORM IMPROVEMEN ($104,000) SUBJECT: Background In the current budget, funds have been requested to complete the third and final phase of watermain replacements in the Prospect Meadows subdivision. Funds have also been requested to construct the second of three planned phases of storm water drainage improvements in this area. Funds for the final phase of drainage work have been requested in the 2009 forecast budget. Due to the highly interelated nature of this work, and in order to gain efficiencies from economy of scale, staff proposes to combined these projects into a single engineering design contract. Staff anticipates completing all design work in 2008. Construction should start in 2008 and reach final completion in early 2009. In general, the proposed work includes the abandonment of 4" diameter cast iron pipe in rear- yard easements and the installation of new 8" Class 56 ductile iron pipe in the public rights-of- way immediately adjacent to the roadway pavement edge. The transfer of water services from the old water main to the new is also included. Additionally, the work includes re-grading of drainage ditches, replacement of driveway culverts, and construction of a relief storm sewer beneath Forest Avenue. Almost 4,400 linear feet of water main improvements and storm water improvements are anticipated. It is the opinion of staff that packaging this work into a single design project is important due to the interrelationship of the remaining work. Water main excavations necessitate drainage ditch reconstruction which will cause storm water to flow towards Forest Avenue more efficiently. Therefore, a plan must be established to handle water that reaches Forest before more water mains are installed in the rights-of-way or further improvements are made to drainage ditches west of Prospect Manor. A comprehensive, holistic approach to the remaining work is essential. Attachment A depicts the proposed storm water improvements area. Attachment B depicts the proposed water main improvements area. Survey, design, and construction inspection services for Phase 1 of the Prospect Meadows water and storm water improvements were provided by Stanley Consultants, Inc. of Chicago, Illinois. Phase 1 was completed in 2005. Unfortunately, Phase 1 was beset with construction '. Page 2 of 3 Accept Proposal from CE Design for Design Engineering Services / Prospect Meadows Water and Storm Improvements ($104,000) December 11, 2007 problems and cost overruns. Due to this experience, competitive proposals were solicited for Phase 2 engineering work. Phase 2 water main survey, design, and construction inspection services were provided by CE Design, Inc. of Rolling Meadows, Illinois This work included field survey and design work necessary to relocate approximately 2,400 linear feet of water main and replace approximately 67 water service lines. No storm water improvements were included in Phase 2 due to budget constraints. Phase 2 was completed in 2007. Request for Proposal Because of a favorable Phase 2 experience, and the fact that they were already very familiar with the Prospect Meadows subdivision, staff has asked CE Design to submit a proposal to provide survey and design engineering services for scope of work referenced above. CE Design has submitted a proposal to provide the prescribed services for a fee not to exceed $104,700. Discussion CE Design has intimate knowledge of the design and construction challenges associated with the Prospect Meadows project. In particular, they are keenly aware of the need for a high degree of resident interaction and public communication due to the volume of work that will occur on or immediately adjacent to privately owned homes. Of note, is the need to work with homeowners to obtain accurate survey information, establish lot and right-of-way lines, and design work to minimize impacts on private property. CE Design's price proposal ($104,700) represents approximately 9% of the anticipated construction cost for the designed work. Staff anticipates construction costs for Phase 3 water main improvements and Phases 2 & 3 storm sewer improvements to total approximately $1.2 million. It has been our experience that design engineering fees typically range between 7% - 10% of construction costs for these types of projects. By comparison, CE Design's fees seem reasonable and are consistent with our expectations. Further analysis of CE Design's fees reveal that unit costs are substantially lower than those incurred for Phase 2 work performed in 2007. For example, topographic survey work fees have been reduced from $5.08/ft to $4.43/ft. Additionally, water main design fees have been reduced from $12.41/ft to $10.50/ft. Since no drainage work was included in the Phase 2 project, direct comparisons for storm water improvements are not possible. Nonetheless, it appears to staff that CE Design has leveraged their Phase 2 experience and intends to realize efficiencies that benefit the Village. These efficiencies appear to be based on their understanding of the work as well as re-use of details, specifications, the project manual, and some previously captured topography. CE Design performed admirably during Phase 2 work. In addition, they have a long history of successful civil construction projects, including water main installations and storm water improvements in neighboring communities. Their references include the Village of Arlington Heights, the City of Rolling Meadows, the Mount Prospect Park District, and the Arlington Heights Park District. All references were favorable. Page 3 of 3 Accept Proposal from CE Design for Design Engineering Services / Prospect Meadows Water and Storm Improvements ($104,000) December 11, 2007 In addition, CE Design's principal is John Pezl, P.E. Mr. Pezl is a former village engineer for the Village of Arlington Heights. He is well known to staff and has an outstanding reputation as a municipal engineer. It is the opinion of staff that CE Design is well qualified to perform the work requested. Recommendation I recommend accepting the proposal from CE Design of Rolling Meadows, Illinois to provide design engineering services for the Prospect Meadows Watermain Improvements Project Phase 3 I Storm Water Improvements Phase 2 & 3 for a not-to-exceed fee of $104,700. Sufficient funds for this proposed expenditure can be found in the 2008 budget. Sean P. Dorsey 225 ORIOLE IN Ocjl~C1Jt:iJfJ~ o O~ CJ 0 Ei [j cj [j (j cf ""'" ~I""'..r-"I'" A nr- A ,..r-n ...,... P7777A "'''''r''''II.. 'AlA CJ r/)).. "'- ~"-~ CJ ~ O//~ ~ I ~ ~ I ~~ ATTACHMENT B : \) \, ~ Ir ~ ~ ,,:'~V G ~~ ~ 'Q ~ '~ /' / ~ / ~----cr ~~~ ~ V ~~ ~ ~ I "" 11 1151 o 1151 0 r-- 115 .fl~~ ~ j ~ ~~/~ ~~~ u. ~ c ~fI lJD[jcJ1J Oirdi~ LZ) ~ BUNTING lN -~ :C;]~~~CJ~T~ ~ ODD r---rr C -~ ow-' P nOD [0 _[ 0 ~ ~. ~ ~[kH)cj [J 1!Jll~ ~ ~ I U ALBION lN \;;\0 ~ ~ :!]dI[oacjcja \\';'0\ i ~ u 0 -[ [0 I 0 \ S \ ~ n '(8J _ Bo ~dcfclOLf[] []\\\U~~[]~~cf[Jjn )225 1] WWlALE LN - ~ y \.. =u [) [] r1 cj m\ ~ ci ~~T--- ~ ~ ~ h olJ IJ 15 0 ft:i!~ do ~dJ [jod OM ! IU CJ I LJ 0 ~ U ..J fL] ~ [" - C r--, 0 ~ fUi~alnO~'d~~\ ~\OO~I~~~~ RJ ORIOLE IN ORIOLE I.N _ fL] ~qqd[j~~cJ ~ ~ ~ rJC1J~[Jo _ ~ I ~ c cLJ 0 0 I L,.J :iJ n.. 10 DO .d. r1 ~~.n ~~~cJPChjO ~ L lJ Lj [] d [) c; Cj ell L!!J l.)!J U ~ . ~ ~ ~ / ~ ~~ ~ r P7777'1..........__...... ....___..._..._..._ ____ Mount Prospect INTEROFFICE MEMORANDUM @) TRIlE CITY l& Mount Prospect Public Works Department FROM: FORESTRY/GROUNDS SUPERINTENDENT ~b. M;a, I z.I,talt11 TO: VILLAGE MANAGER MICHAEL E. JANONIS SUBJECT: BID RESULTS - PARKWAY TREE STUMP REMOVALS - $92,30 DATE: DECEMBER 5, 2007 BACKGROUND Sealed bids for parkway tree stump removals in 2008 were opened on December 3, 2007. Thi contract requires grinding tree stumps to a 10" - 12" depth, removing the grindings, and restoring the area with topsoil and grass seed. We also included a provision which will allow us to extend the contract for a second year at the same bid prices, if both the contractor and Village agree. BID RESULTS Eighteen invitational bids were mailed and a notice was published in a local newspaper. Five bids and one "no bid" letter were received. Bid results were as follows: Company Price Per Diameter Inch 0-24" 25" + $11.44 $12.75 $11.00 $13.00 $12.40 $15.40 $14.87 $14.87 $15.00 $18.50 NO BID NO BID Extended Cost Asplundh Tree Experts Steve Piper & Sons Powell Tree Care, Inc. Winkler's Tree Service Kramer Tree Specialists Nels Johnson and Sons $86,630.00 $87,000.00 $101,800.00 $104,090.00 $122,500.00 DISCUSSION At this time we do not know how many stumps will need removal, however we typically have to remove approximately 400 -500 stumps per year. In the bid specifications we estimated that 7000 diameter inches of stumps would need removal, with 2000 inches in the 0-24" size class range and 5000 inches in the 25" and larger size class. The specifications were written to allow us to assign stumps throughout the year, up to the amount budgeted. Unfortunately, Asplundh Tree Experts did not submit any of the required documentation with their bid, including a statement regarding a permanent place of business, a list of satisfied municipal references or an equipment list. Asplundh's corporate address is in Pennsylvania, and we are unaware of them completing any local contracts except for line clearance tree trimming for Commonwealth Edison. Steve Piper & Sons held our second 2007 stump removal contract, performed very well, and was very cooperative. Additionally, they were very willing to accommodate us by removing many H:\Forestry\ WORD\2008\STUMP\MEMO-STUMP RECOMMENDA nON.DOT additional stumps from the August 23 storm, stockpiling topsoil well beyond the normal stump removal period in order to help us get these stumps removed before the winter. It should be noted that Asplundh and Piper each submitted a low unit price for one of the two size classes. If our estimates are accurate, the total contract price if awarded to Asplundh would only be $370.00 less than if awarded to Piper, an almost negligible difference on a contract this large. Ifwe have overestimated the sizes of the trees to be removed, the total cost of a contract to Piper could actually be less than one awarded to Asplundh. All things considered, I believe it would be in the best interests of the Village to reject the bid submitted by Asplundh and award a contract to Piper. BID RECOMMENDATION There are sufficient funds available in the 2008 budget for this proposed contract. I recommend award of a two-year contract to the lowest qualified bidder, Steve Piper and Sons. Year one will be in an amount not to exceed $92,300.00. Year two will be limited to whatever amount is appropriated in the 2009 budget. I concur: Glen R. Andler Director of Public Works ~~r ~l~k ~<- Mount Prospect ~ Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS FROM: VILLAGE ENGINEER DATE: DECEMBER 12, 2007 SUBJECT: LEVEE 37 PLAT OF EASEMENT AND TREE INVENTORY RECOMMENDATION TO HIRE CONSULTANT - $62,305 Back2round The U. S. Army Corps of Engineers (Corps) has designed a levee wall to provide flood protection along the east side of Des Plaines River Road from Euclid A venue to Palatine Road. Associated with the levee wall is the necessity for permanent and temporary easements to facilitate construction of the wall and future operation and maintenance. The responsibility to obtain all land rights for the project falls to the local municipalities, in this case Mount Prospect and Prospect Heights. Mount Prospect has assumed the lead in obtaining the land rights. To enter into discussion with the District about the easements, the Village needs the survey points staked for the easement boundaries for both the temporary easement and the permanent easement. An Easement Plat with legal descriptions of the easements will also be required. In addition, the Village intends to purchase land from the Solid Waste Agency of Northern Cook County (SW ANCC) that it will donate to the District to mitigate the land rights necessary for construction of the Levee. The parcels are Lots 2 and 3 of the SWANCC Subdivision Unit No.2 and include a total of9.73 acres along the west side of the Des Plaines River north from Central Road. As part of the mitigation process a tree inventory of that land is necessary. Because of project scheduling for the Levee, this work needs to be completed as quickly as possible. Proposal Results Three firms were solicited for proposals and two firms returned proposals on December 12,2007. The proposals supplied references of past work and qualifications of the personnel who would be involved in the design. Listed below are the engineering firms and their costs. 1. 2. Name Haeger Engineering CE Design LTD. cost $62,305.00 $74,666.00 Discussion Both Engineering firms that responded to the RFP have the experience and expertise to complete the work. Both expressed an understanding of the work involved and presented approaches which would accomplish the necessary tasks. Both have completed similar surveying projects and will utilize sub consultants to perform the tree inventory work. The timing of the project has brought about a need to accelerate the schedule for this work. Haeger Engineering presented a more timely schedule indicating th~t thp.v r.onlci r.omnlete the easement olat. easement staking: and tree inventorv bv Januarv 28. 2008. CE Page 2 of3 Levee 37 Easement Staking and Tree Inventory Recommendation December 12,2007 Design LTD. presented a schedule showing completion of the easement plat and staking by mid-February and the tree inventory by March I SI. Haeger Engineering has not completed any projects under contract for the Village of Mount Prospect, however the Engineering staff is familiar with their work. They have acted as design engineers for numerous development projects within Mount Prospect over the years that have been reviewed by staff. They have exhibited the ability to competently complete engineering design and surveying work. Recommendation It is my recommendation that the proposal submitted by Haeger Engineering for Easement Staking and Tree Inventory services be accepted with a not to exceed amount of $62,305.00. This expenditure has been allocated in the 2007 Village Budget. Please include this item on the December 18th Village Board Meeting Agenda. ~ I concur with the above recom ndation. Sean Dorsey, Deputy Director of Public Works h:\Engineering\Agencies\ARMYCORP\DesPlainesRiver\Levee 37\Rec-EasementPlat&Treelnventory Mount Prospect ~ Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS '1>b ,2. , FROM: VEHICLE/EQUIPMENT MAINTENANCE SUPERINTENDENT DATE: DECEMBER 11, 2007 SUBJECT: SEALED BID RESULTS FOR ONE 31" STUMP GRUBBING MACHI ($26,200.00) Backaround In the current budget, there are funds available to replace unit 4545. 4545 is a 1992 Vermeer Model 6658 stump grubbing machine. The Forestry Division uses the stump grubbing machine to remove large tree stumps after the tree has been removed. Replacement Schedule 4545 was purchased in 1992. This unit has entered its 16th year of service. The replacement schedule for this type of unit is 15 years. 4545 meets the required years for replacement. Bid Results On Monday, December 3, 2007, at 10:00 A.M., sealed bids for the proposed purchase of one 31" stump grubbing machine were opened and read aloud. Five invitational bids were distributed, and public notice was placed in a local newspaper as required. Five bids were received. The results are as follows: Trade-In Bid Price Bidder Year/Make/Model Bid Price Allowance Less Trade-In Wins Equipment 2007 Rayco $34,760.00 $9,060.00 $25,700.00 Sugar Grove, IL Model RG1672M Alexander Equipment 2007 Carlton $32,700.00 $6,500.00 $26,200.00 Lisle, IL Model 7500 Vermeer - Midwest 2007 Vermeer $34,593.00 $3,900.00 $30,693.00 Aurora, IL Model SC802 R.Z. Zimmerman 2007 Carlton $34,675.00 no trade-in $34,675.00 Marietta, GA Model 7500 J.P. Carlton 2008 Carlton $34,925.00 no trade-in $34,925.00 Spartanburg, SC Model 7500 Subject: Sealed Bid Results For 31" Stump Grubbing Machine Date: December 11, 2007 Page 2 of2 Alexander Equipment, RZ Zimmerman, and JP Carlton met all our specifications. Wins Equipment and Vermeer-Midwest took exceptions to the size of the cutting wheel diameter, number of cutting teeth, and above ground cutting height. Wins Equipment did not bid a cordless remote control. Vermeer-Midwest did not include a bid bond. Vil/aae Bid Soecifications Wins Eauioment Vermeer-Midwest 31" Diameter Cutting Wheel 25" 28" 68 Cutting Teeth 32 Teeth 42 Teeth 46" Above Ground Cutting Height 29" 35" Cordless Remote Control No Yes $500.00 Bid Bond Yes No Discussion The Forestry Division had tested several different manufacturers' style stump grubbing machines prior to writing the bid specifications. The larger cutting wheel and the greater number of teeth made the machine much more balance and stable when in operation. The specifications were written around the Carlton 7500 because it was the best performing machine. Bid Recommendation I recommend accepting the lowest qualified bid for the proposed purchase of one 2007 Carlton Model 7500, a 31" stump grubbing machine per our specifications, as submitted by Alexander Equipment Company, Lisle, Illinois, at a cost not to exceed $26,200.00 which includes trade-in. Funds for this proposed purchase are available in account 6707709-660115, page 289, of the current budget. The existing 4545 will be used as a trade-in versus being sold at the NWMC auction. Our past experience has shown these types of specialized equipment have a higher resale value as a trade-in. ~ [ h---=-G ames E. G~ent~er c: Director Public Works Glen R. Andler H:\Administration\BIDS\RESUL TS\Large Stump Grubbing Machine 2007.doc INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois DATE: DECEMBER 11, 2007 FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE TO: SUBJECT: WORKERS' COMPENSATION THIRD-PARTY CLAIMS ADMINISTRATIO PURPOSE: To present a recommendation for renewal of the annual service agreement for third-party claims administration for the year beginning January 1,2008 and ending December 31, 2008. BACKGROUND: The Village is self-insured in its workers' compensation program. To assist in the administration of claims the Village has contracted out the service to a third-party administrator. The Village's current agreement for claims administration is set to expire on December 31 , 2007. A review of the Village's workers' compensation program done toward the end of 2006 resulted in a change in this service provider. At that time the Village received a one-year quote from the selected vendor. A new agreement is needed at this time to have the current provider continue to service the Village. DISCUSSION: Cannon Cochran Management Services, Inc. (CCMSI) is the current service provider for workers' compensation claims administration. Their proposed agreement for 2008 is attached. There were no changes to the terms or conditions in the agreement and the minimum annual fee and per claim charge has not changed from the prior year. Below is a summary of fees for the current year and 2008. Service 2008 Rates 2007 Rates Claims Administration $ 12,000 $ 12,000 Annual Administration 2,500 2,500 Internet Claims Access 1,000 1,000 Total Fee excl. Run-Off $ 15,500 $ 15,500 In addition there is an annual fee for CCMSI to handle run-off claims through to their closure. The first-year fee was $450 per claim. The fee for year two is $300. There were 32 indemnity claims and 1 medical only claim that were carried over from the previous Workers' Compensation Third-Party Claims Administration December 11, 2007 Page 2 service provider. Throughout 2007 we were able to close 19 run-off claims (18 indemnity claims and the one medical only). The total expected cost for run-off claims for 2008 will be $4,200. Our experience with GGMSI in their first year with the Village has been very positive. Several troublesome claims have been closed and the interaction between the Village and the provider has improved greatly from our previous administrator. The internet reporting tool that is available for tracking progress on claims has proved to be invaluable. I recommend we continue our relationship with GGMS!. RECOMMENDATION: It is recommended we approve the agreement for GGMSI to provide workers' compensation claims administration services during 2008 for a not-to-exceed amount of $19,700. J~ CL- David O. Erb Director of Finance DOE/ Attachment 1:\lnsurance\CCMSI\Renewal- 2008.doc SERVICE AGREEMENT BETWEEN VILLAGE OF MOUNT PROSPECT AND CANNON COCHRAN MANAGEMENT SERVICES. INC. THIS SERVICE AGREEMENT is made and entered into this 151 day of January 2008, by and between Village of Mount Prospect (the "Client"), an authorized self-insured entity, and Cannon Cochran Management Services, Inc. ("CCMSI"), a Delaware corporation. It is agreed between the parties hereto as follows: A. APPOINTMENT OF CCMSI. The Client hereby appoints CCMSI, and CCMSI hereby agrees to serve, as Third Party Administrator ("Administrator") of the Client's self-insurance program created and existing under the State of Illinois ("State") Self-Insurance Regulations. B. FUNCTIONS OF CCMSI. During the term of this Agreement, the regular functions of CCMSI as the Client's Administrator shall include the following: 1. Claim Administration. (a) Claim Manaaement and Administration. In compliance with its Best Practices, CCMSI will manage and administer all claims of the Client that occur during the period of this Agreement. All claim payments shall be made with Client funds. CCMSI will act on behalf of Client in handling, monitoring, investigating, overseeing and adjusting all such actual and alleged claims. (b) Claim Settlement. CCMSI will settle claims of the Client with Client funds in accordance with reasonable limits and guidelines established with the Client. (c) Claim Reserves. CCMSI will recommend reserves for unpaid reported claims and unpaid claim expenses. (d) Allocated Claim Exoenses. CCMSI will pay all Allocated Claim Expenses with Client Funds. Allocated Claim Expenses are charges for services provided in connection with specific claims by persons or firms which are eligible claim expenses under the Client's program. Notwithstanding the foregoing, Allocated Claim Expenses will include all expenses incurred in connection with the investigation, adjustment, settlement or defense of Client claims, even if such expenses are incurred by CCMS!. Allocated Claim Expenses will include, but not be limited to, charges for: 1) Independent medical examinations of claimants; 2) Managed care expenses, which include the services provided by comp mc™, CCMSI's proprietary managed care program. Examples of managed care expenses includes but is not limited to state fee schedule, PPO net works, utilization review, nurse case management, medical bill audits and medical bill review; 3) Fraud detection expenses, such as surveillance, which include the services provided by FIRE, CCMSI's proprietary Special Investigation Unit (SIU), and other related expenses associated with the detection, reporting and prosecution of fraudulent claims, including legal fees; 4) Attorneys, experts and special process servers; ~ r r M .. T' VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 2 of 15 5) Court costs, fees, interest and expenses; 6) Depositions, court reporters and recorded statements; 7) Independent adjusters and appraisers; 8) Index bureau and OFAC (Office of Foreign Assets Control) charges; 9) Electronic Data Interchanges, EDI, charges if required by State law; 10) CCMSI personnel, at their customary rate or charge, but only with respect to claims outside the State and only if such customary rate is communicated to the Client prior to incurring such cost; 11) Actual reasonable expenses incurred by CCMSI employees outside the State for meals, travel, and lodging in conjunction with claim management; 12) Police, weather and fire report charges that are related to claims being administered under Client's program; 13) Charges associated with accident reconstruction, cause and origin investigations. etc.; 14) Charges for medical records, personnel documents, and other documents necessary for adjudication of claims under Client's program; 15) Charges associated with Medicare Set-Aside Allocations; and 16) Other expenses normally recognized as ALAE by industry standards. (e) SubroQation. CCMSI will monitor claims for subrogation (f) Provision of Reoorts. CCMSI agrees to provide reports to the Client as specified in the Schedule of Reports attached hereto as Exhibit A. 2. Risk Manaaement Services. CCMSI will provide the Client with additional Risk Management Services not contemplated in the Agreement upon mutual agreement of the parties. The Schedule of additional Risk Management Services to be provided is attached hereto as Exhibit B. 3. Loss Control Services. CCMSI will provide the Client loss control services upon mutual agreement of the parties. The Client shall remain fully responsible for the implementation and operation of its own safety programs and for the detection and elimination of any unsafe conditions or practices. The Schedule of Loss Control Services to be provided is attached hereto as Exhibit C. 4. ManaQed Care Services. CCMSI will provide the Client with managed care services (comp mc™) upon mutual agreement of the parties. The Schedule of Managed Care Services to be provided is attached hereto as Exhibit D. C. CLIENT RESPONSIBILITIES. Client agrees to: 1. Report all claims, incidents, reports or correspondence relating to potential claims in a timely manner. Village of Mt Prospect Contract 2008 February 20, 2007 ~ C eMS J' VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 3 of 15 2. Reasonably cooperate in the disposition of all claims. 3. Provide adequate funds to pay all claims and expenses in a timely manner. 4. Respond to reasonable information requests in a timely manner. 5. Provide a complete copy of current excess or other insurance policies, including endorsements and audits, applicable to Client's self-insurance program. 6. Promptly pay CCMSI's fees. D. OPERA riNG EXPENSES. The Client agrees to be responsible for and pay all of its own operating expenses other than service obligations of CCMS!. Such operating expenses shall include but not be limited to charges for the following: 1. All costs associated with Client meeting its State security and licensing requirements; 2. Certified Public Accountants 3. Attorneys, other than provided for in Section B.1. (d) 3) and B.1. (d) 4) of this Agreement; 4. Outside consultants, actuarial services or studies and State audits; 5. Independent payroll audits; 6. Allocated Claims Expenses incurred pursuant to Section B. 1. (d) of this Agreement; 7. All applicable regulatory fees and taxes; 8. Educational and/or promotional material, industry-specific loss control material, customized forms and/or stationery, supplies and extraordinary postage, such as bulk mailing, express mail or messenger service. 9. National Council on Compensation Insurance, NCCI, charges; 10. Excess and other insurance premiums; 11. Costs associated with the development, record keeping and filing of fraud statistics and plans, but only if required by any State or regulatory authority having jurisdiction over Client; 12. Other operating costs as normally incurred by the Client. E. BOOKS AND RECORDS. 1. (a) CCMSI shall maintain all claim information relating specifically to the Client which is necessary to the performance of CCMSI's obligations under this Agreement (the "Records"). The Records shall remain at all times the sole property of the Client. (b) The Records shall not include any manuals, forms, files and reports, documents, customer lists, rights to solicit renewals, computer records and tapes, financial and strategic data, or information which documents CCMSl's processes, procedures and methods, or which CCMSI employs to administer programs other than the Client. The items specified in this Paragraph E. 1. (b) shall at all times be and remain the sole and exclusive property of CCMSI, and the Village of Mt Prospect Contract 2008 February 20, 2007 L& VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 4 of 15 Client shall not have any ownership, interest, right to duplicate or right to utilize these items except for the above documentation or information that relates soley to Client's Program. 2. During the term of this Agreement, CCMSI shall provide the Client with copies of the Records, if so requested by the Client Any reasonable costs of reproduction of the Records shall be borne by the Client. In the event this Agreement is terminated or non-renewed, Client Records will be turned over to the Client or to a successor administrator designated by the Client. 3. CCMSI shall make the Records available for inspection by any duly authorized representative of the Client, or any governmental or regulatory authority having jurisdiction over CCMSI or the Client. F. NON-SOLICITATION OF EMPLOYEES. During the term of the Agreement and for two (2) years thereafter, the Client and CCMSI mutually agree not to recruit, solicit or hire any employee of the other without written permission. G. OTHER INSURANCE. If CCMSI places any specific or aggregate excess insurance, reinsurance, or other insurance product associated with this Agreement, then customary commissions and fees will be retained by CCMS!. H. TERM AND TERMINATION. 1. Term of Aareement. The first term of this Agreement shall be for one (1) year beginning on January 1, 2008 and terminating on December 31, 2008. Unless the Agreement is terminated as set forth in paragraph H. 2., it will automatically renew for successive one (1) year terms. At least ninety (90) days prior to the expiration of each one (1) year term of this Agreement, the parties shall enter into good-faith negotiations regarding any proposed change in Agreement terms or fees. If there are no changes requested by either party, then the Agreement will automatically renew under the same terms and fee arrangement as the prior term. 2. Termination of Aqreement. This Agreement may be terminated: (a) By mutual agreement of the parties hereto; (b) Upon expiration of the current term of this Agreement if either party has given the other at least ninety (90) days written notice of its intention to terminate as set forth in paragraph H. 1.; (c) Upon dissolution of the Client's self-insurance program whether voluntary or due to cessation of Client's authority to self-insure; (d) Upon dissolution of the Client's self-insurance program due to Client insolvency or bankruptcy; (e) Upon ninety (90) days written notice by either party if the other party is in material breach of any term, covenant or condition contained herein; provided, however, that as a condition precedent to termination under this Section H. 2. (e), the terminating party shall give written notice to the other party, who shall have sixty (60) days from the date of such notice to cure or correct the grounds for termination. If the grounds of termination are not corrected or cured during the sixty (60) day period, this Agreement may be terminated on the termination date specified in the notice, but not prior to the expiration of the ninety (90) day period described herein. Village of Mt Prospect Contract 2008 February 20, 2007 ~ CCM"" VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 5 of 15 3. Services FollowinQ Termination of AQreement. Should this Agreement be terminated or non- renewed for any reason, CCMSI will cease providing services, turn over to the Client all Client files in CCMSI's possession, which shall include all open and closed files. Upon the Client's request and subject to agreement by CCMSI, CCMSI will be paid a reasonable negotiated fee to: (a) Provide for continued administration of the open claim files; (b) Cooperate with any successor administrator in the orderly transfer of all functions, including providing a runoff listing of open claim files if desired by the Client and any other records reasonable and necessary for a successor administrator; and (c) Provide an electronic transfer of data if such is feasible, with the cost of providing such borne by the Client. I. SERVICE FEE PAYMENTS. The Client shall pay to CCMSI a service fee as outlined in the Fee and Payment Schedule attached hereto as Exhibit E. J. ARBITRATION. If an irreconcilable difference of opinion or claim should arise between the Client and CCMSI as the interpreters of any matter relating to this Agreement, such matter will be submitted to mediation or arbitration as the sole remedy available to both parties. Any such mediation or arbitration will take place in the City of Chicago, Illinois and will be conducted in accordance with the then-current rules of the American Arbitration Association. K. RELATIONSHIP OF PARTIES. With respect to the services provided by CCMSI in this Agreement, CCMSI is considered an independent contractor. Nothing in this Agreement shall be construed to create a relationship of employer/employee, partners or joint ventures between the Client and CCMS!. This Agreement is non-exclusive, and CCMSI shall have the right to perform services on behalf of other individuals, firms, corporations and entities. L. INDEMNIFICATION. 1. Indemnification by Client. The Client agrees that it will indemnify and hold harmless CCMSI and CCMSl's directors, officers, employees, agents, shareholders, subsidiaries and other affiliates from and against any and all claims, losses, liability, costs, damages and reasonable attorney's fees incurred by CCMSI as a result of breach of this Agreement by the Client, or misconduct, error or omissions by the Client, or by any of the Client's trustees, directors, officers, employees, agents, shareholders, subsidiaries, or other affiliates in connection with the performance of this Agreement. 2. Indemnification by CCMS!. CCMSI agrees that it will indemnify and hold harmless the Client and the Client's trustees, directors, officers, employees, agents, shareholders, subsidiaries, members, or other affiliates from and against any and all claims, losses, liability, costs, damages and reasonable attorney's fees incurred by the Client as the result of breach of this Agreement by CCMSI or misconduct, error or omissions by CCMSI, or by any of CCMSl's directors, officers, employees, agents, shareholders, subsidiaries or other affiliates in connection with the performance of this Agreement. M. CHANGE IN CIRCUMSTANCES. In the event the adoption of any statute, rule or regulation materially changes the nature of the relationship between the parties hereto or the legal or economic premises upon which this Agreement is based, the parties hereto shall undertake good faith negotiations to amend the terms of this Agreement to account for such changes in a reasonable manner. Village of Mt Prospect Contract 2008 February 20, 2007 ~ VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 6 of 15 N. MISCELLANEOUS. 1. GoverninQ Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Illinois without regard to principles of conflicts of law. 2. Timina of Services. CCMSI may exercise its own reasonable judgment, within the parameters set forth herein and in compliance with State regulations, as to the time and manner in which it performs the services required hereunder. Additionally, CCMSI will be held to a standard of like administrators performing like services for customers such as Client. 3. Successors in Interest. This Agreement shall be binding upon, and inure to the benefit of, the successors in interest and permitted assigns of the parties hereto. 4. Severability. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if the invalid or unenforceable provision had been revised to the minimum extent necessary to make it valid and fully enforceable under applicable law. 5. Paraaraph HeadinQs. All paragraph headings in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 6. Waiver. The failure of any party to enforce any provisions of this Agreement shall not constitute a waiver by such party of any provision. A past waiver of a provision by either party shall not constitute a course of conduct or a waiver in the future with respect to that same provision. 7. Notice Provision. All notices, requests and other communications required under this Agreement shall be in writing and delivered by hand or mailed, registered or certified, return receipt requested, postage paid, or sent via a nationally recognized overnight courier to the other party at the following address: Client: David Erb Village of Mount Prospect 50 S. Emerson Street Mount Prospect, IL 60056-3218 CCMSI: Cannon Cochran Management Services, Inc. 2 E. Main St. Danville, IL 61832 Attn: Chief Operating Officer 8. File Destruction Policy. CCMSI will maintain all closed files on behalf of Client for a period of seven (7) years after the month of closure, or for as long as necessary to protect the applicable statute of limitations, whichever is longer. It is the sole responsibility of Client to advise CCMSI if files are not to be destroyed per this policy. Village of Mount Prospect would like to be contacted before files are destroyed. Village of Mt Prospect Contract 2008 February 20, 2007 ~ C eMS 1- VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 7 of 15 9. Insurance. CCMSI will purchase and maintain insurance coverages for its performance of the services contemplated in this Agreement. Minimum policy limits are as follows: Workers Compensation - Statutory Professional- $5,000,000 General Liability - $1,000,000 / $2,000,000 Umbrella - $5,000,000 10. Entire AQreement/Amendment. This Agreement sets forth the full and final understanding of the parties hereto with respect to the matters described herein, and supersedes any and all prior agreements and understandings between them, whether written or oral. This Agreement may be amended only by written document executed by the Client and CCMS!. Executed this _ day of ,200_. CANNON COCHRAN MANAGEMENT SERVICES, INC. By: Rodney J. Golden Its: Chief Operating Officer/Executive Vice President VILLAGE OF MOUNT PROSPECT By: Its: Village of Mt Prospect Contract 2008 February 20. 2007 e:p VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 8 of 15 EXHIBIT A SCHEDULE OF REPORTS 1. A detailed listing of all claims broken down by location, policy year and line of coverage. (MONTHL Y) 2. A summary of all claims broken down by location, policy year and line of coverage. (MONTHLY) 3. A check register listing all checks issued during a reporting period. (MONTHLY) Village of Mt Prospect Contract 2008 February 20, 2007 ~ r r M S I' VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 9 of 15 EXHIBIT B SCHEDULE OF RISK MANAGEMENT SERVICES None to be provided. Village of Mt Prospect Contract 2008 February 20, 2007 ~ VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 10 of 15 EXHIBIT C SCHEDULE OF LOSS CONTROL SERVICES None to be provided Village of Mt Prospect Contract 2008 February 20. 2007 ~ C eMS '" VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 11 of 15 EXHIBIT D SCHEDULE OF comp mc ™ SERVICES AND FEES Provider Bill Re-pricina Service Fee schedule re-pricing Usual and Customary re-pricing Fee $9.00 per bill $9.00 per bill PPO Re-pricina Bills with additional PPO discount opportunities below the Fee Schedule will be billed at 30% of savings. Pharmacy Network Services Pharmacy Network services are priced at 33% of savings. Field Case Management CCMSI does not offer proprietary field case management or vocational rehabilitation services. These are available from third party providers at market price and the cost of these services would be captured as an allocated loss expense to the referral file. Village of Mt Prospect Contract 2008 February 20, 2007 ~ VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 12 of 15 CCMSI will manage all workers' compensation claims for the life of this contract for an annual fee as follows: Claims will be analyzed by the number and type of claim on an on-going basis and priced on a per claim fee as outlined below. Workers' Compensation * Indemnity claims @ $775 / per claim Medical only claims @ $125/ per claim Incident/record only @ $30 / per incident Claims will be analyzed by the number of claims as well as the type of claim on an on- going basis and priced on a per claim fee as outlined above. Any additional charges over the $12,000 minimum claim fee will be billed at the expiration of the policy term and quarterly thereafter. The flat rate unit prices include: · Prompt and courteous customer service · Timely investigation and determination of compensability in accordance with CCMSI Best Practices · Strict adherence to state workers compensation statutes and regulations, attendance at hearings, as required. · Preparation for and compliance with and response to regulatory audits · Timely payment of all legitimate claims . Fraud detection and prevention · Litigation Management Note: These prices do not include those costs typically identified and expense as allocated loss expenses. Please see the attached roster that details those typical allocated loss expense items. (ex. Field investigation & adjusting) Claim charges are based on a per claim, not per occurrence basis. Any occurrence resulting in 10 or more claims will be considered a catastrophic claim. All resulting claims will be handled on a time and expense basis. Any claim which falls under the catastrophic definition in the reinsurance contract, e.g., brain damage, death, etc., will also be handled on a time and expense basis. Annual Administration $2,500 Annual Account Management Fee includes: . Designated Account Manager . Client Specific Service Instructions . Preparation and participation in Semi-Annual claims reviews . Set up and Maintenance of the loss fund account . Monthly loss runs and loss fund activities reports . Filing of all required state forms including state mandated assessments . Reporting to excess/fronting carrier . Computer set-up, training and client specific special analysis codes Village of Mt Prospect Contract 2008 February 20, 2007 t:9 C eMS I' VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 13 of 15 Internet Claim Access . $1,000. .. Internet claims system access which includes: . Viewing access to all claims data . Risk Management statistical analysis . Comprehensive and complete access to claims management process . On-line reports . On-line reporting capability via the internet . Ability to generate OSHA Log, OSHA 301 Form and Illinois First Report of Injury (Illinois Form 45) M~f1aged> G.reServices Provider Bill Re-pricing Service Fee schedule re-pricing Usual and Customary re-pricing Fee $9.00 per bill $9.00 per bill PPO Re-pricing Bills with additional PPO discount opportunities below the Fee Schedule will be billed at 30% of savings. Pharmacy Network Services Pharmacy Network services are priced at 33% of savings. Field Case Management CCMSI does not offer proprietary field case management or vocational rehabilitation services. These are available from third party providers at market price and the cost of these services would be captured as an allocated loss expense to the referral file. Run-Off Claims TBD . 1 st year/12months commencing with the start of the TP A contract or any portion there of $450 per claim . 2nd year or any portion thereof $300 per claim . 3rd and each subsequent year $200 per claim We would propose to bill a deposit fee for the 1 st 12 months based on the number of claims we actually take over and then adjust it at the end of 12 months based on any additional claims that needed to be handled or reopened. Village of Mt Prospect Contract 2008 February 20, 2007 ~ VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 14 of 15 Data Conversion $125 an hour This is the fee associated with consolidating all of Village of Mount Prospect's historical data into CCMSl's database. Our cost for this service is $125 an hour and it typically averages 20/30 hours to complete. We would be willing to "cap" the cost of this service at $5,000. In order to accurately and competitively asses this fee we would need to know: . The number of data sources · The experience period data ranges (Le., 1/1/95to 12/31/05) · The total number of claim records to be transferred · Whether or not all transactional information on closed claims is to be transferred or alternatively if we can transfer closed values only Loss Control (Optional) $3,700 CCMSI can provide the Client with loss control services. The Client shall remain fully responsible for the implementation and operation of its own safety programs and for the detection and elimination of any unsafe conditions or practices. The fee for services will be $3700 to provide 4 days - 30 hours of loss control service. Additional services are available for rate of $950 per day plus expenses or priced per project. Special System Reports $125 an hour CCMSI will provide special reports, (reports not currently programmed or written) for a fee of $125 per hour for system programming time. CCMSI will provide an estimate of charges before any work will be done. Fee & Payment Schedule The total fee of $15,500 will be billed in quarterly installments of $3,875.00 due on the first day of January 2008; April 2008; July 2008 and November 2008 Run-off claims: An additional fee will be billed for the second 12 months based on the number of claims that remain open and then adjusted at the end of 12 months based on any additional claims that need to be handled or reopened. Village of Mt Prospect Contract 2008 February 20, 2007 ~ C eMS " VILLAGE OF MOUNT PROSPECT - SERVICE AGREEMENT Page 15 of 15 Executed this _ day of ,200_" CANNON COCHRAN MANAGEMENT SERVICES, INC. By: Rodney J. Golden Its: Chief Operating Officer/Executive Vice President VILLAGE OF MOUNT PROSPECT By: Its: Village of Mt Prospect Contract 2008 February 20, 2007 ep Mount Prospect ~ Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS b"', ~ I~ Iqe:{) FROM: VEHICLE/EQUIPMENT MAINTENANCE SUPERINTENDENT DATE: DECEMBER 11, 2007 SUBJECT: SEALED BID RESULTS FOR ONE 21" STUMP GRUBBING MACHINE WIT TRAILER ($14,750.00) Backaround In the current budget, there are funds available to replace unit SG22. SG22 is a 1999 Rayco model RG1625 stump grubbing machine. The Forestry Division uses this stump grubbing machine to remove tree stumps in locations that are not easily accessible such as rear yard easements, park areas, and retention basins. The unit is carried on a trailer and is self propelled. Replacement Schedule SG22 was purchased in 1999. This unit has entered its 9th year of service. The replacement schedule for this type of unit is 8 years. SG22 meets the required years for replacement. Bid Results On Monday, December 3, 2007, at 10:00 A.M., sealed bids for the proposed purchase of one 21" stump grubbing machine and trailer were opened and read aloud. Five invitational bids were distributed, and public notice was placed in a local newspaper as required. Five bids were received. The results are as follows: Trade-In Bid Price Bidder Year/Make/Model Bid Price Allowance Less Trade-In Wins Equipment 2007 Rayeo $18,072.00 $5,000.00 $13,072.00 Sugar Grove, IL Model RG1625 Super Jr.ITrailer Alexander Equipment 2007 Carlton $18,800.00 $4,050.00 $14,750.00 Lisle, IL Model SP4012VITrailer Vermeer - Midwest 2007 Vermeer $20,744.00 $4,000.00 $16,744.00 Aurora, IL Model SC352/Trailer R.Z. Zimmerman 2007 Carlton $18,425.00 no trade-in $18,425.00 Marietta, GA Model SP4012V/no trailer J.P. Carlton 2008 Carlton $21,789.00 $500.00 $21,289.00 Spartanburg, SC Model SP4012VITrailer Subject: Sealed Bid Results For 21" Stump Grubbing Machine with trailer Date: December 11, 2007 Page 2 of 2 Alexander Equipment, RZ Zimmerman, and JP Carlton met all our specifications. Wins Equipment and Vermeer-Midwest took exceptions to the tongue extension and number of cutting teeth. Wins Equipment bid a machine with only one drive motor and a maximum speed of 2 MPH. Vermeer-Midwest did not include a bid bond. Villaae Bid Specifications Wins Eauipment Vermeer-Midwest 32 Cutting Teeth 18 Teeth 20 Teeth 30" Hydraulic Tongue Extension No No Two Drive Motors - Max. 3.5 MPH One Motor - 2MPH Yes $500.00 Bid Bond Yes No Discussion The Forestry Division had tested several different manufacturers' style stump grubbing machines prior to writing the bid specifications. The larger cutting wheel and greater number of teeth made the machine much more balanced and stable when in operation. This unit is staked to the ground by the tongue to keep the machine from moving while in operation. With the 30" hydraulic tongue extension the machine does not have to be repositioned as often. The specifications were written around the Carlton SP4012V because it was the best performing machine. Bid Recommendation I recommend accepting the lowest qualified bid for the proposed purchase of one 2007 Carlton Model SP4012V 21" stump grubbing machine and one Beaver Creek trailer per our specifications, as submitted by Alexander Equipment Company, Lisle, Illinois, at a cost not to exceed $14,750.00 which includes trade-in. Funds for this proposed purchase are available in account 6707709-660115, page 287, of the current budget. The existing SG22 and trailer will be used as a trade-in versus being sold at the NWMC auction. Our past experience has shown these types of specialized equipment have a higher resale value as a trade-in. )' it ----/~ James ~~e~ther ~ c: Director Public Works Glen R. Andler H:\Administration\BIDS\RESUL TS\Small Stump Grubbing Machine 2007.doc