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HomeMy WebLinkAbout6. MANAGERS REPORT 10/07/2008 ( Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: FROM: DATE: SUBJ: Backaround VILLAGE MANAGER, MICHAEL E. JANONIS WATER/SEWER SUPERINTENDENT OCTOBER 1, 2008 INSTALLATION FOR S1 ANDBY PUMP POWER SUPP JIN ELECTRIC, $9,626.46 - COMMONWEALTH EDISON, MART AM CONSTRUCTION)) In the current budget, staff requested funds for the installation of emergency power generators for the stand-by deep well pumps. The Board approved a multi-year capital improvement to equip each of the deep well pumping stations with emergency generators that would power the deep wells and pumping stations in case the power from Commonwealth Edison was disrupted. The purchase of two (2) 750 kW diesel generators for Reservoir 5 and 16 was previously awarded to Patten Power Systems in 2007 for $510,722 and the units were delivered on Thursday, September 4, 2008. This memo outlines the last phase of the work that includes the provision of the concrete pads for the generators and diesel fuel tanks, on-site electrical connections, utility relocation work at Station 16, wiring and conduits to be installed to accommodate the generators and the diesel fuel tanks. The work will also include the startup of the generators and coordination with the generator vendor to ensure their successful operation. With the completion of this work, the Village will have two (2) water wells (Station 5 and Station 16) that have the capability of running completely independently for up to five days without refilling the fuel tanks. Bid Results Farnsworth Group of Bloomington, Illinois was awarded the contract in April 2008 to prepare the bid specifications for the installation of the generators. The bid spec was advertised in the local paper on August 22, 2008. Eight local contractors were solicited and four additional contractors requested bid packets. Four bids were received, opened and read aloud on September 15, 2008. Three bids were received late and were not opened or considered. Page 2 of 3 BID RESULTS FOR STANDBY PUMP POWER SUPPLY ($281,400 - JIN ELECTRIC, $9,626.46- COMMONWEALTH EDISON, $40,400 - MART AM CONSTRUCTION) OCTOBER 1, 2008 , The following bids were received: 1. Jin Electric, Chicago 2. Broadway Electric, Elk Grove Village 3. Ridgewood Engineering, Schaumburg 4. Poulos Construction, Chicago Engineer's Estimate $268,000 $305,490 $361,000 $550,000 $246,898 Discussion Staff checked the references of Jin Electric. Their project history includes multi-million dollar electrical projects for the Chicago Housing Authority. Their past projects included similar work involving backup generators and switchgear work. All of their references stated that their work is of good or better quality and that their work was timely without issues. Farnsworth Group and Village staff reviewed the bids and both are recommending that the Village accept Jin Electric of Chicago, Illinois as the lowest responsible, responsive bidder for the installation and startup of the two generators systems for the cost of $268,000. Staff is requesting that a 5% contingency ($13,400) be added to the contract award in case of unforeseen construction issues. The total amount of the award to Jin Electric of Chicago, Illinois would be $ 281,400.00. There are sufficient funds in the budget to perform this installation work. As part of the installation work, Commonwealth Edison will need to relocate the three -phase service feed and install a new transformer at Station 16. Commonwealth Edison has prepared a work agreement and is seeking $9,626.46 for their work. This utility work is essential for the completion of the standby power project and we are recommending that the Board authorize the work agreement and the payment to Commonwealth Edison for their work. There are sufficient funds in the budget for this utility work. The concrete work was bid as alternates to the base electrical work and the following bids were received for the four (4) concrete pads (one for each generator and each fuel tank): 1. Jin Electric, Chicago 2. Broadway Electric, Elk Grove Village 3. Ridgewood Engineering, Schaumburg 4. Poulos Construction, Chicago Engineer's Estimate $60,000 $63,770 $67,080 $170,000 $50,000 The engineer's estimate was deliberately high in anticipation of the rising costs of cement and rebar. Staff was not satisfied with the bids received as it was felt that pricing was too high and speculative. Staff is not recommending the alternates to the Village Board. The utility work was scheduled in June with Commonwealth Edison as they presently have a twelve (12) week lead time to coordinate their work. The Station 16 work by Commonwealth Edison is set to begin on Page 3 of 3 BID RESULTS FOR STANDBY PUMP POWER SUPPLY ($281,400 - JIN ELECTRIC, $9,626.46- COMMONWEALTH EDISON, $40,400 - MARTAM CONSTRUCTION) OCTOBER 1, 2008 October 20, 2008. If this start date is missed then the next available date from Commonwealth Edison is January 2009. To ensure that the needed utility work is completed before Commonwealth Edison arrives on site, staff asked a local contractor familiar with area pricing to quote on the concrete work. Martam Construction responded with a proposal for the work for a cost of $36,400. This figure is in keeping with the Engineer's estimate. Staff is asking that the Board waive sealed bids for this concrete work due to the need to adhere to Commonwealth Edison's construction schedule and to award the concrete work to Martam Construction of Elgin in an amount of $36,400. Staff is asking for a 5% contingency ($1,800) for the concrete work to address any unforeseen issues that may arise so the total award in the amount of $38,200. Sufficient funds are available in the budget to perform this work. Recommendations 1. I recommend that the Village Board authorize a contract with Jin Electric of Chicago, Illinois for the Installation of two (2) Standby Pump Power Supplies at Station 5 and Station 16 in an amount not to exceed $281,400. 2. I recommend that the Village Board authorize the work agreement and the payment of $9,626.46 to Commonwealth Edison for utility relocation work at Station 16 necessary for the Installation of the Standby Pump Power Supply. 3. I recommend that the Village Board waive sealed bids for the Concrete Work necessary for the Installation of the two (2) Standby Pump Power Supplies at Station 5 and Station 16 and authorize a contract with Martam Construction of Elgin in an amount not to exceed $38,200. Sufficient funds exist in the budget to cover these expenses. -lvf\~.~ M~eem '.i\~ I concur A Glen R. Andler Director of Public Works CC: Deputy Director of Public Works Sean Dorsey Village Clerk Lisa Angell H:\WalerlprojectsI2008Igeneralorslinslallalion award. doc Mount Prospt.'Ct Mount Prospect Public Works Department INTEROFFICE MEMORANDUM DATE: OCTOBER 2, 2008 TO: VILLAGE MANAGER, MICHAEL E. JANONIS FROM: WA TERlSEWER SUPERINTENDENT SUBJ: BID RESULTS FOR WATER DISTRIBUTION AND PUBLIC WO SECURITY IMPROVEMENTS (AMERICAN BUILDING SERVIC $228,455) Back~round In the current budget, staff requested funds for the installation of security system improvements for the Village's water distribution system. The Village was required to prepare and submit a vulnerability assessment (VA) to the Illinois Environmental Protection Agency in 2002 that reviewed security as a result of the September 11 terrorist attacks. Burns & McDonnell Engineering Company of Downers Grove, Illinois assisted the Village in the security assessment and preparation of the document. The document reviewed the Village's water system infrastructure and recommended security improvements to maintain or improve the protection of the public water supply. The installation of remote video monitoring equipment and replacement of door lock hardware at the water system facilities were two notable recommendations of the security assessment. The existing lock system is no longer supported by local locksmiths. Key blanks and replacement parts are no longer available. Burns & McDonnell Engineering Company prepared the bid documents for the purchase and installation of the needed security improvements. The security improvements include better locks and card access systems, video cameras and improved door and security hardware at all of the Village water distribution facilities and at the Public Works building which houses water system staff and the water system's supervisory control system (SCADA). Bid results The bid was advertised in the local paper on August 30, 2008. Eight (8) firms were solicited and four additional contractors requested bid packets. A mandatory pre-bid and site inspection was held on September 11, 2008 with 15 firms present. The bids were received and read aloud on September 29, 2008. The following bids were received: 1. American Building Services, Wheeling 2. Elan Technologies, New Lenox 3. Precision Control Systems, Wood Dale Engineer's Estimate $ 217,455 $ 224,499 $ 280,430 $ 210,000 Page 2 of 2 BID RESULTS FOR WATER DISTRIBUTION SYSTEM AND PUBLIC WORKS SECURITY IMPROVEMENTS (AMERICAN BUILDING SERVICES - $228,455) OCTOBER 2, 2008 Discussion The Burns & McDonnell engineering team and Village staff reviewed the bids and are both recommending that the Village accept American Building Services of Wheeling as the lowest responsible, responsive bidder for the installation of the security improvements for an amount not to exceed fee of $217,455. American Building Services is comprised of four groups - M-D Door Hardware, F & H Door, American Building Services and ABS Integrated Security Group. The firm has installed card access and video security systems for regional housing authorities (LaSalle County) and school district 87 in Berkeley, Illinois. Their communications subcontractor will be BearCom Communication which is a national firm that has performed security and video projects throughout the nation. Most notably BearCom was the main contractor for the downtown public security camera project in Dallas, Texas and locally for Gurnee and for Lake Villa Fire Departments. Staff reviewed these projects and finds that American Building Services with BearCom will be able to satisfactorily complete this project for the Village. Staff is requesting that an approximate 5% contingency ($11,000) be added to the contract award in case of unforeseen construction or installation issues. The total amount of the award would be $228,455. There are sufficient funds in the budget to complete this project. Recommendation I recommend that the Village Board authorize a contract with American Building Services of Wheeling, Illinois for the Water Distribution System and Public Works Security Improvements in an amount not to exceed $228,455 (Base bid of $217,455 and $11,000 contingency). \\J\& D~ Matt Overeem Glen R. Andler Director of Public Works CC: Deputy Director of Public Works Sean Dorsey Village Clerk Lisa Angell H:IWaterlprojects\2008lvideo security improvementslinstallation award. doc , Mount Prospect ~ Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS ~.~~ , ') c:e FROM: ENGINEERING ASSIST ANT DATE: OCTOBER 2, 2008 SUBJECT: 2008 RETENTION BASIN DREDGING PROJECT KENSINGTON BUSINESS PARK - BASIN #7 CONSTRUCTION RECOMMENDATION - $163,855.00 ENGINEERING INSPECTION RECOMMENDATION - $11,038. Background Per the agreement made with the Kensington Business Park in the 1980's, the Village of Mount Prospect is responsible for maintaining the 11 retention basins in the park. This includes any dredging work so that the water depth of the basins conform to the design requirements. Staff has identified Basin #7 on Feehanville Drive (map attached) to be included in this year's dredging project. The project will involve pumping the water out of the basin, hauling off the silt that has built up over the years and reshaping the bottom of the basin to conform to the original design. In addition, the shoreline will be stabilized with stone and silt basins will be constructed near inflow structures. Funding for this project has been allocated in the Pond Improvements Account using Flood Control funds. The work is expected to begin mid October and be completed by mid December. Bids Results At 10:00 a.m. on September 29th, sealed bids were publicly opened and read aloud for the 2008 Retention Basin Dredging Project. A Notice to Bidders was published in the local newspaper and several local contractors were sent invitations to bid on the project. All bidders submitted a bid deposit in the amount of 5% of their total bids as required by the contract documents. All bids were checked for their accuracy and there were no errors. All bidders correctly signed their bids, bid bonds, and submitted a Certificate of Eligibility as required by the contract documents. In addition, all bidders other than Maneval Construction signed the Addendum Number 1 acknowledgement as required. Below is a summary of the bids. Bidders Copenhaver Construction, Inc. (Gilberts, IL) Martam Construction, Inc. (Elgin, IL) T & W Edmier Corporation (Elmhurst, IL) Maneval Construction Co., Inc. (Grayslake, IL) Lenny Hoffman Excavating, Inc. (Wilmette, IL) Total Bid $163,855.00 $176,283.00 $207,375.00 $244,565.01 $315,329.50 Engineer's Estimate $196,668.50 , page 2 of2 2008 Retention Basin Dredging Project , Discussion The low bidder, Copenhaver Construction, Inc., has performed extensive drainage, dirt moving, and slope stabilization projects. The Village of Highland Park, Wheeling Township, Glenview and South Barrington Park Districts all indicated Copenhaver has done quality work in their communities in recent years. Copenhaver meets the requirements of the contract documents and their references show their workmanship to be good. Construction Engineering Services Ciorba Group, Inc. of Chicago, Illinois submitted a proposal to provide construction engineering services throughout this project. Ciorba was awarded the engineering design contract through a formal request for proposal process in May of 2008. They have also been the Village's consultant on previous dredging projects as well as various street lighting and bridge rehabilitation projects. Ciorba Group's quote to provide construction engineering services for this project is $11,038.00. Based on the scope of the project compared to previous retention pond projects it is Staff's opinion that the quote is acceptable. Recommendation It is Staffs recommendation that Copenhaver Construction, Inc. be awarded the construction contract for the 2008 Retention Basin Dredging Project in the amount not to exceed $163,855.00. It is also Staffs recommendation that Ciorba Group, Inc. be awarded a contract for construction engineering services in the amount not to exceed $11,038.00. Funding for this project is available in the 2008 Budget. Please inc1u e this item on the October 7th Village Board Meeting Agenda. {) "-<.. f. 7 Dan Randolph Ion. Attachments: Project Location Map c: Village Clerk Lisa Angell H:\Engineering\Ponds\k-bc_basin#7\construction rec memo.doc Project Location Map October 1, 2008 ~~l ,.... tt;: t;;;il w t '" Wi iJ [ - ~;'"' ~ . . _~ ,. 0 ~ j. .... ~ :" 1! . Mount Prospect Public Works Department INTEROFFICE MEMORANDUM FROM: PROJECT ENGINEER 'l~ TO: VILLAGE MANAGER MICHAEL E. JANONIS DATE: SEPTEMBER 30, 2008 SUBJECT: 2008 CDBG SIDEWALK PROGRAM (CONTRACT AWARD NOT TO EXCEED $50,000.00) Backoround The CDBG Sidewalk Program includes the installation of new sidewalk at two locations in th }7 Village where sidewalk is missing. One location is on the south side of Dempster Street, between Busse Road and Algonquin Road; the other location is on the east side of Busse Road, south from Algonquin Road to the existing sidewalk. Bid Results Sealed bids for the 2008 CDBG Sidewalk Program were publicly opened and read aloud on September 29, 2008 at 10:00 A.M. A Notice to Bidders was published in a local newspaper as required and invitations were sent to contractors familiar with this program. Six (6) contractors submitted bids for this project. The bids ranged from a low of $46,222.10 by A & R Cement, Inc. to a high of $75,000.00 by Alamp Concrete Contractors, Inc. The Engineer's estimate for the project was $47,403.75. Each of the bidders submitted a bid bond in the amount of 5% of the total bid as required in the bid proposal packet. All bids were checked for accuracy. One error was found in the bid from A & R cement, Inc. which raised their total bid by $0.50. This did not change the order of the bids. All bidders correctly signed their bids and bid bonds. Below is a summary of the bids: Bidders A & R Cement, Inc. - Roselle, IL Schroeder and Schroeder, Inc. - Skokie, IL Globe Construction, Inc. - Addison, IL Alliance Contractors, Inc. - Woodstock, IL Landmark Contractors, Inc. - Huntley, IL Alamp Concrete Contractors, Inc. - Schaumburg, IL Engineer's Estimate $46,222.10 $52,590.00 $62,961.25 $68,546.75 $74,755.20 $75,000.00 $47,403.75 Page 2 September 30, 2008 2008 CDBG Sidewalk Program Discussion The low bidder, A & R Cement, Inc., is prequalified by the Illinois Department of Transportation for concrete construction projects. The Villages of Hinsdale, Downers Grove, Norridge, and Bedford Park, along with the City of Burbank, all indicated A & R Cement, Inc. has done quality work in their communities in recent years. They meet the requirements of the contract documents and their references show their workmanship to be good. The budget for the 2008 CDBG Sidewalk Program is $50,000.00. The low bid is within the budget limit. Recommendation The Contractor's bid is based on estimated quantities. We recommend the contract for the 2008 CDBG Sidewalk Program to be awarded to the low bidder, A & R Cement, Inc. in an amount not to exceed $50,000.00 to cover the full amount budgeted for the program. There are sufficient funds in the 2008 Budget to cover this proposed contract. Please include this item on the October ih Village Board Meeting Agenda. f;h,~~~).I(. ~v- Donna M. Brown, P.E. I concur with the above recommendation. .4/~ Director of Public Works Glen R. Andler cc: Village Clerk Lisa Angell H: \Engineering\Sidewalk\2008\CDBG\rec_memo.doc Mount Prospect INTEROFFICE MEMORANDUM @) TREE CITY USA Mount Prospect Public Works Department DATE: SEPTEMBER 30, 2008 TO: VILLAGE MANAGER MICHAEL E. JANONIS FROM: FORESTRY/GROUNDS SUPERINTENDENT SUBJECT: BID RESULTS - CREEK CLEANING/TREE WORK - $43,900 BACKGROUND In the 2008 budget, funds have been appropriated to continue the ongoing cleanup of Mou t Prospect waterways. Each year since 1997 we have been hiring a contractor to remove garbage and other debris from the bed and banks of our creeks, remove dead trees, and prune dead limbs. This year we propose to continue the clean up along McDonald Creek. The first portion of work would be on the Com Ed Right-of-way that runs between Euclid Avenue and Kensington Road. The second portion would begin at Burning Bush Lane and proceed southeastward towards Kensington as far as funds allow (approximately 850 feet). Additionally, one hazardous tree along Weller Creek would be removed. BID RESULTS Sealed bids for this year's contract were opened on September 29,2008. Fourteen invitational bids were mailed and a bid notice was placed in the local paper. In addition, a Pre-bid conference was held on September 22, 2008. Two bids and three "No Bid" letters were received. Contractors were asked to submit lump sum prices for all labor and equipment required to perform the specified work for the area listed above. Bid results were as follows: Bidder Winkler's Tree and Landscaping Kramer Tree Service Nels Johnson Tree Experts Powell Tree Care Steve Piper and Sons Total cost to complete creek area $43,125.00 $44,468.00 No Bid No Bid No Bid DISCUSSION The low bidder, Winkler's Tree and Landscaping, Inc. has satisfactorily completed our Creek Cleaning/Tree Work Contract in 2001,2002 and 2006. Additionally, Winkler's has satisfactorily completed our Tree Removal, Tree Trimming, Stump Removal and Holiday Lighting contracts in the past. This bid award is based on estimated quantities of trees and tree sizes. Consequently, it is feasible that actual quantities encountered in the field may vary slightly. Therefore, staff requests that the bid award include a small contingency (approximately $900.00) in the event that additional tree removals are needed. Page 2 of 2 BID RECOMMENDATION Sufficient funds for this proposed expenditure exist in the current budget (Acct. #5907704- 690079 in the amount of $20, 100.00 and Acct. #5907704-690013 in the amount of $23,800.00 both on page 284). Therefore, I recommend award of a contract to the low bidder, Winkler's Tree and Landscaping, in an amount not to exceed $43,900.00. I concur: ~ /' . Glen dler Director of Public Works ~~ --/"" Sandy Clark H:\Forestry\ WORD\2008\CREEK\MEMO-CREEK2008.DOT INTEROFFICE MEMORANDUM Mount Prospect Village of Mount Prospect Fire Department TO: MICHAEL E. JANONIS, VILLAGE MANAGER l:>t>. ~'A, 'Dff! /e6 FROM: FIRE CHIEF DATE: SEPTEMBER 30, 20'08 SUBJECT: FIRE HOSE PURCHASE Backaround During the 2007 budget process, a plan was presented to the Village Board to replace fire hose over a two-year period. This plan called for the replacement all of the 5" hose for the Department's four fire engines and tower ladder in 2007 and the remaining hose: 3", 2", and 1 3/4", in 2008. The 5" hose is used as a supply line to provide large volumes of water over long distances. Examples include; supplying water to the engines and tower ladder, foam trailers, and fire sprinkler systems. Specific target hazards that have the potential for using this hose include the tank farms, Randhurst Shopping Center, and structures within the Forest River Fire Protection District where there are limited fire hydrants. The remaining hose we are replacing is used primarily as fire attack hose. The hose scheduled for replacement is between twenty and thirty years old and needs to be replaced. General Bid Information Fire Department staff developed bid specifications, publicly advertised the bid, and sent out bid documents to five (5) fire hose vendors. The bid opening took place on September 15, 2008 at 10:30 AM where the documents were publicly opened and read aloud. There were a total of five (5) bids received. The bid results were as follows: BID PRICE $34,300.00 $29,727.88 $29,512.00 $29,120.00 $26,796.00 Fire Hose Purchase September 30, 2008 Page 2 Budaet Authorization Funds are available for this purchase in account numbers 0014202-670017 and 5107701-670017, which can be found on pages 181 and 285 of the 2008 budget book. Recommendation Based on the above information I recommend a contract be awarded to Air One Equipment in Elgin for an amount not to exceed $26,796. Air One Equipment was the lowest responsive bidder and met the specifications outlined in the bid packet. Michael J. Figolah J M/jm M:\1 Archives\09 September\FIRE HOSE PURCHASE-JM (092608).doc MOllnt Prospt.'Ct Mount Prospect Public Works Department INTEROFFICE MEMORANDUM FROM: DEPUTY DIRECTOR OF PUBLIC WORKS TO: VILLAGE MANAGER MICHAEL E. JANONIS DATE: OCTOBER 1, 2008 PUBLIC WORKS UNIFORM RENTAL AND CLEANING C (NOT TO EXCEED $12,720.76/ YEAR FOR 24 MONTHS) SUBJ: Background For many years, the labor agreement for the Public Works Department bargaining unit employees has stipulated that the Village must supply 100% cotton work uniforms. In an effort to comply with this requirement, staff has routinely let bids for a contract to supply and launder industrial work uniforms. The current contract was initiated in 2006 and is due to expire in October 2008. Bid Results At 10:00 AM on Monday, September 22, 2008 sealed bids were opened for the weekly rental and cleaning of uniforms worn by Public Works Department maintenance personnel. The term of this proposed contract is 24 months. A legal notice was placed in the Daily Herald and six (6) invitational bids were distributed to local vendors. Four (4) bids were received. The results are listed below: 100% Cotton Shirts & Pants 100% Cotton Indura Flame Resistant Shirts & Pants 100% Cotton Shirts & Pants Total Annual Cost: 34 6 3 5 5 3 $5.35 $8.85 $3.21 $9,458.80 $2,761.20 $500.76 $12,720.76 G & K Services., Lombard, IL 100% Cotton Shirts & Pants 34 5 $5.55 $9,812.40 100% Cotton Indura Flame Resistant Shirts & Pants 6 5 $8.10 $2,527.20 100% Cotton Shirts & Pants 3 3 $3.33 $519.48 Total Annual Cost: $12,859.08 Unifirst, Melrose Park, IL 100% Cotton Shirts & Pants 34 5 $8.91 $15,752.88 100% Cotton Indura Flame Resistant Shirts & Pants 6 5 $16.12 $5,029.44 100% Cotton Shirts & Pants 3 3 $5.67 $884.52 Total Annual Cost: $21.666.84 Aramark, Arlington Heights, IL 100% Cotton Shirts & Pants 34 5 $12.05 $21,304.40 100% Cotton Indura Flame Resistant Shirts & Pants 6 5 $23.95 $7,472.40 100% Cotton Shirts & Pants 3 3 $14.37 $2,241.72 Total Annual Cost: $31,018.52 Page 2 of 2 August 8, 2006 Public Works Uniform Rental and Cleaning Contract Discussion Based on this tabulation, the lowest annual cost for this proposed contract is $12,720.76 as submitted by Lechner & Sons of Mount Prospect, Illinois. Lechner & Sons has provided uniform rental and cleaning services to the Village of Mount Prospect Public Works Department for the past five (5) years. They have proven themselves to be a reliable and competent supplier of laundered public works uniforms. Additionally, it is relevant to note that Lechner & Sons' primary business office is located in the Kensington Business Center (420 Kingston Court). Recommendation I recommend that the Village Board accept the lowest qualified bid of $12,720.76 per year for a 24-month uniform rental and cleaning contract as submitted by Lechner & Sons of Mount Prospect, Illinois. Funds for this proposed contract are available in the current budget. Expenditures in 2008 and 2009 will be limited to approved budgeted amounts. J ;JtIAJ Sean P. Dorsey I concur. ~ Director of Public Works SPD/spd C:\Documents and Settings\sdorsey.DOMAIN\My Documents\PERSONNEL\Uniforms\Bids\200B\Award Recommendation 200B.doc Cc: Director of Public Works Glen R. Andler Streets Foreman Dan Jones Account Clerk Julie Bolin File Mount Prospect Village of Mount Prospect Mount Prospect, Illinois ~ INTEROFFICE MEMORANDUM FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE ~b. M/~ 10/" roe TO: DATE: OCTOBER 1, 2008 SUBJECT: BOND FINANCIAL ADVISORY SERVICES PURPOSE: To present a recommendation the Village retains the services of a Financial Advisor (FA) to assist in the issuance of bonds and its debt management program. BACKGROUND: The Village has utilized the services of a FA to assist in issuing General Obligation Bonds and other debt instruments. Ron Norene from RV. Norene & Associates had provided this service to the Village since the early 1980's. The last time staff looked for authorization to retain an FA was in 2000 in preparation for the Series 2001 GO Bonds - Parking Deck Construction. Mr. Norene also assisted the Village with the Series 2003 GO Bonds bond issuance. Mr. Norene has since retired necessitating the search for a new FA. DISCUSSION: This past June, Request for Proposals were sent out to twelve (12) financial advisory firms to solicit their interest in assisting the Village with its debt management program. Tasks to be provided by the selected firm include analyzing the financing needs of the Village, constructing proposed bond issues, assisting in selection of an underwriter or organizing a competitive sale, assisting with the rating agencies, and advising on other matters of importance such as continuing disclosure filings. The financial advisor would be prohibited from acting as the underwriter on any debt issuance during the term of the contract. The initial term of the contract will be for three (3) years. The Village received responses from five (5) firms. The five firms that returned a proposal were Crowe Chizek & Company, Ehlers & Associates, Kaplan Financial Consulting, Inc., PMA Financial Network, Inc. and Speer Financial. Each of the firms that responded are active in the market and serve governmental entities. After a review of the proposals, four firms were invited for interviews before the Finance Director and Deputy Finance Director. A set list of questions were asked each firm to easily compare qualifications and experience. In addition, several other questions were asked regarding the proposals that were submitted. Two firms, PMA Financial and Speer were determined to be finalists coming out of oral interviews. Calls were then made to listed references to further assess the firm's capabilities and get insight into their interaction with staff and Board members. Financial Advisor Recommendation October 1, 2008 Page 2 A review of the proposed fees was also done. Fees proposed by the firms were based on either a flat amount or per $1 ,000 rate depending on size of issue. For comparative purposes $10 million was used. Based on a $10 million issue the fees for each of the firms is as follows: Firm Rate Crowe Chizek $9,500, Ius $1.50 er $1 ,000 of ar amount Ehlers 0.10% of ar amount, $7,500 min. $25,000 max. Fee $24,500 $10,000 $12,000 - $14,000 $12,500 $15,500 Ka Ian $135 er hour, t icall $12,000-$14,000 PMA $1.25 er $1 ,000 of ar amount Seer $15,000 lus1/60f1% er$1,0000f aramount>$7million After evaluating all the information that was gathered during the selection process, staff is recommending to accept the proposal from PMA Financial Network, Inc. In addition to being able to provide excellent support during the bond issuance process, PMA is also able to provide assistance with investment services and cash flow management. This is important when managing the reinvestment of bond proceeds to ensure adequate funds are on hand to pay contractors while avoiding arbitrage penalties. If the Village were to utilize Speer it would be necessary to look to another firm to assist in this endeavor. PMA also offers competitive bond sales through an on-line auction website (Grant Street Group/Muni Auctions). This on-line bid process permits bidding parties to see the quotes of other bidders and allows multiple quotes that encourage a more competitive process. A draft copy of the agreement between the Village and PMA is attached as additional backup. The Village Attorney has reviewed the agreement and finds it acceptable. The final agreement will be prepared pending Board approval. RECOMMENDATION: It is recommended the Village Board accept the proposal from PMA Financial Network to provide financial advisory services for a not to exceed amount of $1.25 per $1,000 of bond par amount. ~ ~tP.~ AVID O. ERB DIRECTOR OF FINANCE DOE/ 12. Delivery of Debt Instruments. As soon as a bid for the Debt Instruments is accepted by the Issuer, coordinate the efforts of all concerned to the end that the Debt Instruments may be delivered and paid for as expeditiously as possible and assist the Issuer in the preparation or verification of final closing figures incident to the delivery of the Debt Instruments. SECTION II TERM OF AGREEMENT This Agreement shall become effective as of the date executed by the Issuer as set forth on the signature page hereof and, unless terminated by either party pursuant to Section III of this Agreement, shall remain in effect thereafter for a period of _ (_) years from such date. SECTION III TERMINATION This Agreement may be terminated with or without cause by the Issuer or PMA upon the giving of at least thirty (30) days' prior written notice to the other party of its intention to terminate, specifying in such notice the effective date of such termination. In the event of such termination, it is understood and agreed that only the amounts due PMA for services provided and expenses incurred to the date of termination will be due and payable. No penalty will be assessed for termination of this Agreement. SECTION IV COMPENSATION AND EXPENSE REIMBURSEMENT The fees due to PMA for the services set forth and described in Section I of this Agreement with respect to each issuance of Debt Instruments and the continuous analysis of the Issuer and the performance of other services provided, if requested, as described in Section II during the term of this Agreement shall be calculated in accordance with the schedule set forth on Appendix A attached hereto. Unless specifically provided otherwise on Appendix A or in a separate written agreement between Issuer and PMA, such fees, together with any other fees as may have been mutually a6>1:eed upon and all expenses, for which PMA is entitled to reimbursement, shall become due and payable concurrently with the delivery of the Debt Instruments to the purchaser. SECTION V MISCELLANEOUS 1. Choice of Law. This Agreement shall be construed and given effect in accordance with the laws of the State of Illinois. 2. Binding Effect: Assignment. This Agreement shall be binding upon and inure to the benefit of the I ssuer and PMA, their respective successors and assigns; provided however, neither party hereto may assign or transfer any of its rights or obligations hereunder without the prior written consent of the other party. 3. Entire Agreement. This instrument contains the entire agreement between the parties relating to the rights herein granted and obligations herein assumed. Any oral or written representations or September 25, 2008 modifications concerning this Agreement shall be of no force or effect except for a subsequent modification in writing signed by all parties hereto. Village of Mount Prospect PMA Securities, Inc. By: By: Robert E. Lewis III Managing Director Prin t Name Title: By: Michael English President September 25,2008 FINANCIAL ADVISORY AGREEMENT This Financial Advisory Agreement (the" Agreement") is made and entered into by and between the Village of Mount Prospect ("Issuer") and PMA Securities, Inc. ("PMA ") effective as of the date executed by the Issuer as set forth on the signature page hereof. WITNESSETH: WHEREAS, the Issuer will have under consideration from time to time the authorization and issuance of indebtedness in amounts and forms which cannot presently be determined and, in connection with the authorization, sale, issuance and delivery of such indebtedness, Issuer desires to retain a financial advisor; and WHEREAS, the Issuer desires to obtain the professional services of PMA to advise the Issuer regarding the issuance and sale of certain evidences of indebtedness or debt obligations that may be authorized and issued or otherwise created or assumed by the Issuer (hereinafter referred to collectively as the "Debt Instruments") from time to time during the period in which this Agreement shall be effective; and WHEREAS, PMA is willing to provide its professional services and its facilities as financial advisor in connection with all programs of financing as may be considered and authorized by Issuer during the period in which this Agreement shall be effective. NOW, THEREFORE, the Issuer and PMA, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, do hereby agree as follows: SECTION I DESCRIPTION OF SERVICES Upon the request of an authorized representative of the Issuer, PMA agrees to perform the financial advisory services stated in the following provisions of this Section I; and for having rendered such services, the Issuer agrees to pay to PMA the compensation as provided in Section IV hereof. A. Financial Planning. At the direction of Issuer, PMA shall: 1. Analysis. Conduct an analysis of the financial resources of the Issuer to determine the extent of its capacity to authorize issue and service any Debt Instruments contemplated. This analysis will include reviews of any existing debt structure as compared with the existing and projected sources of revenues which may be pledged to secure payment of debt service and, where appropriate, may include an analysis of the trend of the assessed valuation, taxing power and present and future taxing requirements of the Issuer. The analysis may take into account any outstanding indebtedness payable from the revenues of existing or projected facilities operated by the Issuer, additional revenues to be available from any proposed rate increases and additional revenues, as projected internally through the use of proprietary systems, through affiliated companies or by other parties employed by the Issuer, resulting from improvements to be financed by the Debt Instruments under consideration. 2. Future Financings. Consider and analyze future financing needs as projected by the Issuer's staff, or through other experts, if any, employed by the Issuer. September 25, 2008 3. Recommendations for Debt Instruments. On the basis of the information developed by the analysis described above, and other information and experience available, submit to the Issuer recommendations regarding the Debt Instruments under consideration, including such elements as the date of issue, interest payment dates, schedule of principal maturities, options of prior payment, security provisions, and such other provisions as may be appropriate in order to make the issue attractive to investors while achieving the objectives of the Issuer. All recommendations will be consistent with the goal of designing the Debt Instruments to be sold on terms that are advantageous to the Issuer, including the lowest interest cost consistent with all other considerations. 4. Market Information. Advise the Issuer of current bond market conditions, other related forthcoming bond issues and general information, with economic data, which might normally be expected to influence interest rates or bidding conditions so that the date of sale of the Debt Instruments may be set at a favorable time. B. Debt Management and Financial Implementation. At the direction of Issuer, PMA shall: 1. Method of Sale. Evaluate the particular financing being contemplated, giving consideration to the complexity, market acceptance, rating, size and structure in order to make a recommendation as to an appropriate method of sale, and: a. If the Debt Instruments are to be sold by an advertised competitive sale, PMA will: (1) Supervise the sale of the Debt Instruments; (2) Disseminate information to prospective bidders, organize such informational meetings as may be necessary, and facilitate prospective bidders' efforts in making timely submission of proper bids; (3) Assist the staff of the Issuer in coordinating the receipt of bids, the safekeeping of good faith checks and the tabulation and comparison of submitted bids; and (4) Advise the 1ssuer regarding the best bid and provide advice regarding acceptance or rejection of the bids. b. If the Debt Instruments are to be sold by negotiated sale, PMA will: (1) Recommend for 1ssuer's formal approval and acceptance of one or more investment banking firms as managers of an underwriting syndicate for the purpose of negotiating the purchase of the Debt Instruments. 1n keeping with the provisions of Rule G-23 of the Municipal Securities Rulemaking Board, PMA will not participate in an underwriting syndicate in connection with the negotiated purchase of the Debt Instruments. (2) Cooperate with and assist any selected managing underwriter and their counsel in connection with their efforts to prepare any Official Statement or Offering Memorandum. PMA will cooperate with and assist the underwriters in the preparation of a bond purchase contract, an underwriter's agreement and other related documents. The costs incurred in such efforts, including the printing of the documents, will be paid in accordance with the terms of the Issuer's agreement with the underwriters, but shall not be or become an obligation of PMA, except to the extent specifically provided otherwise in this Agreement or assumed in writing by PMA. September 25,2008 (3) Assist the staff of the Issuer in the safekeeping of any good faith checks, to the extent there are any such, and provide a cost comparison, for both expenses and interest which are suggested by the underwriters, to the then current market. (4) Advise the Issuer as to the fairness of the price offered by the underwriters. 2. Offering Documents. Coordinate the preparation of the notice of sale and bidding instructions, official statement, official bid form and such other documents as may be required and submit all such documents to the Issuer for examination, approval and certification. After such examination, approval and certification, PMA shall provide the Issuer with a supply of all such documents sufficient to its needs and distribute by mail sets of the same to prospective purchasers of the Debt Instruments. Also, PMA shall provide copies of the final Official Statement to the purchaser of the Debt Instruments in accordance with the Notice of Sale and Bidding Instructions. 3. Credit Ratings and Insurance. Make recommendations to the Issuer as to the advisability of obtaining a credit rating, or ratings, and/or insurance for the Debt Instruments and, when directed by the Issuer, coordinate the preparation of such information as may be appropriate for submission to the rating agency, or agencies and/or insurance agencies. In those cases where the advisability of personal presentation of information to the rating agency, or agencies and/or insurance agencies, may be indicated, PMA will arrange for such personal presentations, utilizing such composition of representatives from the Issuer as may be finally approved or directed by the Issuer. 4. Trustee. Paying Agent. Registrar. Upon request, counsel with the Issuer in the selection of a Trustee and/or Paying Agent/Registrar for the Debt Instruments, and assist in the negotiation of agreements pertinent to these services and the fees incident thereto. 5. Financial Publications. When appropriate, advise financial publications of the forthcoming sale of the Debt Instruments and provide them with all pertinent information. 6. Consultants. After consulting with and receiving directions from the Issuer, arrange for such reports and opinions of recognized independent consultants as may be appropriate for the successful marketing of the Debt Instruments. 7. Auditors. In the event formal verification by an independent auditor of any calculations incident to the Debt Instruments is required, make arrangements for such services. 8. Issuer Meetings. Attend meetings of the governing body of the Issuer, its staff, representatives or committees as requested at all times when PMA may be of assistance or service and the subject of financing is to be discussed. 9. Printing. To the extent authorized by the Issuer, coordinate all work related to the printing of the offering documents and the Debt Instruments. 10. Bond Counsel. Maintain liaison with Bond Counsel in the preparation of all legal documents pertaining to the authorization, sale and issuance of the Debt Instruments. 11. Changes in Laws. Provide to the Issuer copies of proposed or enacted changes in federal and state laws, rules and regulations having, or expected to have, a significant effect on the municipal bond market of which PMA becomes aware in the ordinary course of its business, it being understood that PMA does not and may not act as an attorney for, or provide legal advice or services to, the Issuer. September 25, 2008 Appendix A Fees Debt Instrument Advisory Fees: With respect to the advice related to the issuance of a Debt Instrument and the services provided in Section I, the Village of Mount Prospect agrees to pay and PMA agrees to accept per $1,000 of original principal amount of debt issued the following: Par Amounts Under $5.0 million $5.0 to $9.95 million $10 million and over General Obligation Financings $7,000 plus $0.40/$1,000 $6,250 plus $0.60/$1,000 $1.25/$1,000 Revenue or TIF Revenue Financings $9,000 plus $0.50/$1,000 $8,000 plus $0.70/$1,000 $1.50/$1,000 Mount Prospect agrees to pay and PMA agrees to accept $175 per hour for financial work unrelated to the issuance of a debt instrument. September 25, 2008 I Village of Mount Prospect Community Development Department Mount Prospect MEMORANDUM FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF COMMUNITY DEVELOPMENT lol.,d6 TO: DATE: SEPTEMBER 30, 2008 REQUEST FOR FACADE REBATE REIMBURSEMENT - CAN"TA NAPOrzi RESTAURANT . SUBJECT: The Village has established the Fa<;:ade Rebate Program in the downtown Tax Increment Financing District that offers matching grants to businesses that make improvements to storefronts in the downtown district. The maximum Village contribution is $10,000 per storefront. Canta Napoli recently renovated their two storefronts at the southwest corner of Emerson Street and Busse Avenue to establish a wood burning oven pizza restaurant in the Emerson development. They made several improvements to the interior of the building to improve the functionality of the space. These improvements included installing black iron for the oven, wood flooring and ADA accessible bathrooms. They also have installed new awnings and signage on both of their frontages. The total expenditures for their project have exceeded $50,000. Canta Napoli is seeking reimbursement for all eligible expenses related to their project. Per the program guidelines, the Village may cover 50% of all eligible of this project. Therefore, the restaurant is eligible for a $20,000 Fa9ade Rebate grant (account # 5507703-590052, page 283 of Budget). Staff supports the request for the reimbursement. Please forward this memorandum and attachments to the Village Board for their review and consideration at their October 7th meeting. Staff will be at that meeting to answer any questions related to this matter. , NORWOOD EMERSON LLC 250 S. NORTHWEST HIGHWAY, SUITE 300 PARK RIDGE, IL 60068 TEL: (847) 655-7700 FAX: (847) 655-7701 September 25,2008 Mr. William Cooney Director of Community Development Village of Mount Prospect 50 S. Emerson Street Mount Prospect, IL 60056 Re: Application for Financial Assistance under the Village of Mount Prospect Fa9ade Improvement and Interior Build Out Program Canta Napoli Pizzeria Restaurant Dear Bill: Enclosed please find a completed and signed Application for Financial Assistance under the Village's Fa9ade Improvement and Interior Build Out Program with respect to the premises containing approximately 2,300 square feet leased by Canta Napoli Pizzeria, Inc., a tenant in The Shops at The Emerson, together with the following Application requirements: I. Applicant Affidavit signed by the Tenant and Property Owner; 2. Spreadsheet of Eligible Costs, together with supporting documentation; 3. Legal Description of The Shops at The Emerson (there is not a separate legal description for the Canta Napoli Pizzeria premises); 4. Copy of Most Recent Available Tax Bill for The Shops at The Emerson, of which the Canta Napoli Pizzeria forms a part; 5. Business Plan of Cant a Napoli Pizzeria; 6. Sales Revenue Projections (Assumptions and Fees); 7. Menu of Cant a Napoli Pizzeria; 8. Site Plan of The Shops at The Emerson showing location of Cant a Napoli Pizzeria premises within the TIF District; 9. Floor Plan of Cant a Napoli Pizzeria premises; and 10. Documentation of Cant a Napoli Pizzeria Restaurant's membership in Mount Prospect Chamber of Commerce. All financial assistance that shall be granted by the Village for the Canta Napoli Pizzeria premises is to be paid to the Property Owner, Norwood Emerson LLC, in accordance with the signed Lease between the Property Owner and Tenant. After Village staff has reviewed the enclosures, please call me with any comments or questions. Our goal is to have the Application presented to the Village Board at its meeting on October 7, 2008. matter. We look f~g from you. ~." .- D. Michael Miller Authorized Representative Thank you for your assistance and cooperation in this -", enc. APPLICA TION Name Telephone (day) ADINA GHERMAN (OWNER/GENERAL MANAGER) & (773) 733-3346 Z ADRIAN HUDEMA (OWNER/MANAGING PARTNER) (224) 623-3260 0 Corporation Telephone (evening) ... ~ ~ CANT A NAPOLI PIZZERIA, INC. 0' Street Address Fax ... ~ .~ 3955 GREGORY DRIVE (847) 258-5586 ~ .~ City State Zip Code Mobile '0 p.. 0' NORTHBROOK IL 60062 (773) 733-3346 ~ ~ Number of storefronts in the building and occupants WITH RESPECT TO CANT A NAPOLI RESTAURANT PREMISES: U -< TWO (2) STOREFRONTS- ONE STOREFRONT ON EMERSON STREET, ONE STOREFRONT ON BUSSE AVENUE = Relationship to Property TENANT Name Telephone (day) RITA DAUPHINEE, LEASING AGENT (847) 655-7715 Corporation Telephone (evening) Z NORWOODEMERSONLLC 0 ... Street Address Fax ~ ~ ~ 250 S. NORTHWEST HIGHWAY, SUITE 300 (847) 655-7701 o ~ City State Zip Code Mobile ~o ~i PARK RIDGE IL 60068 Architect's Name & Address Telephone (day) fax o ... C3D ARCHITECTS LLC, 101 S. PINE ST., 2ND FLOOR, STE. #5, (847) 208-3274 (847) 797-8421 ~p.. ~I MOUNT PROSPECT, IL 60056 ::l!i Contractor's Name & Address: Telephone (day) fax U -< PACK CONSTRUCTION, CHICAGO, IL (773) 968-7210 (708) 478-6856 = Engineer's Name & Address (if applicable): Telephone (day) fax TRUSTED ENGINEERlNG,238 N. TIllRD A VE.,VILLA PARK, IL 60181 (630) 670-7810 (866) 299-8300 Landscape Architect's Name & Address (if applicable) N/A Telephone (day) fax 6 Type of Request (Check all that apply) f;I;o~ X Interior Renovation X Exterior Fayade Improvement ~g Summary of Requested Action i; Financial Assistance in a minimum amount of$20,OOO from the Village forpaymentlreimbursement to Property Owner of the Eligible Costs described on the attached spreadsheet, accompanied by supporting documentation. ~~ U -< Common Address(es) (Street Number, Street) ofCanta Napoli Pizzeria Premises: 90 R Bn~~e Av~nne located at the ~/WlC ofRmersoo Street and Bnsse Avenue, Mount Prospect,IL 60056 ~ Tax J.D. Number or County Assigned Pin Number(s) As of the date of this Application, there is not a separate permanent ... E-o ~ Index Number (nor a separate tax bill) for The Shops at The Emerson, of which the Canta Napoli premises forms a part. 0 Permanent Index Number 08-12-108-043-0000 covers The Shops at The Emerson and other property. ~ Legal Description (see the plat of survey for the property) r-:l E-o See Attached Legal Description of Shops at The Emerson, of which the Canta Napoli premises forms a part. Also, Site Plan ... ~ of the Shops at The Emerson and Floor Plan of the Canta Napoli Premises are included as part of the Application to the Y lllage. October 2007 APPLICANT AFFIDAVIT I have read and understand the terms of the Fac;ade Improvement Program and Interior Build- out Program and agree that all work performed in conjunction with the aforementioned programs must comply with all other Village regulations. Additionally, I understand and will comply with all annual sales tax reporting requirements. APPLICANT: CANTA~~r' INe By: ~, Title: (') ~f lV~ f?.- PROPERTY OWNER: NORWOOD EMERSON LLC By: :;.rw~ me., iffi Mgy Titie: , - October 2007 ELIGIBLE COSTS FOR CANT A NAPOLI PIZZERIA RESTAURANT UNDER MP FACADE IMPROVEMENT AND INTERIOR BUILD OUT PROGRAM Descriotion of Improvement 1. Upgrading to Natural Gas Service to Accommodate Brick Oven and Fryer 2. Signage 3. Awning 4. Upgrading Mechanical Systems 5. Additional Sprinkler Heads/Strobe-Alarm Devices 6. Black Iron Installation Black Iron Testing 7. Architectural Services - C3D Architects TOTAL * Invoices Attached to this Spreadsheet Eliaible Cost * $8,500.00 $ 5,200.00 $ 5,000.00 $11,200.00 $ 3,105.00 $12,450.00 $ 1,790.48 $ 7,549.53 $54,795.01 (Upgrade from electric service to natural gas service for restaurant) (Exterior signage required by Village) (Awning required by Village) (Upgrade in electrical service from 200 amp to 400 amp for restaurant) (@ $345 per additional head/device - 9 additional heads required by Village) (Black iron required for restaurant's fryer and brick oven) (Soft costs)