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HomeMy WebLinkAbout4. MANAGERS REPORT 01/20/2009 Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE "!>~. ~/~ 'lit> ~ TO: DATE: JANUARY 16, 2009 SUBJECT: BOND COUNSEL / DISCLOSURE COUNSEL RECOMMENDATION PURPOSE: To present a recommendation to retain the services of a bond counsel firm to assist in the issuance of bonds and ongoing debt management program. BACKGROUND: As a matter of practice, the Village has utilized the services of bond counsel to assist in issuing general obligation bonds and other debt instruments. Katten Muchin Rosenman (KMR) has provided this service for the Village since 1982. This was the last time staff looked for authorization to retain new bond counsel for the Village. Although the Village has received a high level of service from KMR in the past, it was felt that a Request for Proposal (RFP) should be undertaken for the upcoming bond issue due to the length of time it's been since going out to market. DISCUSSION: This past December, Request for Proposals were sent out to five (5) bond counsel firms active in the municipal bond market to solicit their interest in assisting the Village with its debt management program. Tasks to be provided by the selected firm include the rendering of a legal opinion on the taxable nature of the issue as well as legal support during the authorization, sale and delivery of bonds. In addition to bond counsel support, the RFP had asked for proposals to provide disclosure counsel services. When acting as disclosure counsel, the firm will assist the Village in matters relating to the discharge of responsibilities under federal and state securities law. This includes assistance in the preparation of the bond purchase agreement, official statement or other disclosure documents related to the bonds. This service has become more necessary as regulatory agencies tighten rules related to municipal tax-exempt debt. The Village received responses from four (4) firms. The four firms that returned a proposal were Chapman and Cutler, Ice Miller, Ungaretti & Harris and Katten Muchin Rosenman. Each firm that responded is active in the bond market and serves governmental entities. After a review of the proposals, three firms were invited for interviews before the Village Manager, Corporation Counsel, Finance Director and Deputy Finance Director. KMR was not required to come in to interview as there was already an established relationship with this firm. To easily compare qualifications and experience between the interviewing firms, a set list of questions was used. Two firms, Chapman and Cutler and Ice Miller 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. Bond Counsel Recommendation January 16, 2009 Page 2 After oral interviews and reference calls were completed, a review of the proposed fees was also done. Separate fees proposals were to be provided for both bond counsel and disclosure counsel on tentative financings of $10,000,000 in 2009 and $3,000,000 in 2010. The fees for each of the firms are as follows: $10,000,000 $3,000,000 Firm Issue Issue Chapman & Cutler $7,500 BC, $2,500 DC $2,750 BC, $1,000 DC Ice Miller $10,000 for both BC and DC $5,000 for both BC and DC Katten Muchin Rosenman $10,000 for both BC and DC $5,000 for both BC and DC Unqaretti & Harris $10,000 for both BC and DC $9,000 for both BC and DC BC = Bond Counsel DC - Disclosure Counsel After evaluating all the information that was gathered during the selection process, staff is recommending to accept the proposal from Chapman and Cutler to provide both bond and disclosure counsel services. Chapman has the most experience of all the firms who responded as bond counsel for tax-exempt long-term new municipal issues in Illinois. The firm also has 54 attorneys in their entire U.S. practice dedicated to public finance from which to draw expertise from if needed. Firm partners are active members of the Illinois Government Finance Officers Association (IGFOA) and have participated as presenters and panel members at IGFOA conferences and seminars. If approved, staff will work with Corporation Counsel to finalize the agreement between the Village and Chapman and Cutler. RECOMMENDATION: It is recommended the Village Board accept the proposal from Chapman and Cutler to provide bond counsel and disclosure counsel services per the pricing included in their proposal. J ' J~fp. ~ DAVID O. ERB DIRECTOR OF FINANCE DOE/ 1:\Debt & Bonding\Bond Counsel Recommendation.doc Mount Prospect Mount Prospect Public Works Department INTEROFFICE MEMORANDUM FROM: ENGINEERING ASSISTANT ~b. ~1"9 I} 2010~ TO: VILLAGE MANAGER MICHAEL E. JANONIS DATE: JANUARY 14, 2009 SUBJECT: LINN EMAN ROAD IMPROVEMENTS FINAL BALANCING CHANGE ORDER: $ 47,698.30 Background The Village acquired Linneman Road (from Algonquin Road to Dempster Road) in 2007 as part of the Opus North (Opus) annexation and development of the north east corner of Linneman and Algonquin Roads. To accommodate related traffic increases. Opus agreed to improve 1100 feet of Linneman Road from Algonquin Road north. In addition. the Village agreed to improve the remaining 600 feet of Linneman Road north to Dempster Street. The Village and Opus awarded separate contracts for their respective portions of the project. Both the Opus and Village contracts were awarded to the same contractor. Maneval Construction Co.. Inc. (Maneval). Linneman Road improvements included a complete pavement reconstruction. involving new curb and gutter. widening to a three lane cross-section to accommodate a center turn lane. and new sidewalks and street lights. Construction begun in September 2007 and was completed in autumn of 2008. Discussion The original design and construction contract was based on estimated material quantities. Unfortunately. during construction an unanticipated large amount of soft. organic soil was encountered primarily under the western half of Linneman Rd. As is customary and necessary. Village staff ordered this soil removed and replaced with an engineered aggregate base. However. the cost of removing the organic soil and placement with aggregate base were not included in the original road improvement estimates. Page 2 Linneman Road Improvements January 14. 2009 Recommendation Allocated budget for the Linneman Road Improvements was $328,494.54. Construction expenses totaled $376.192.84. for a net difference of $47.698.30. In order to issue final payment to Maneval a final balancing change order is required. It is Staffs recommendation that a final balancing change order be approved in the amount of $47.698.30. Funding for this change order is available in the 2008 Budget. Please include this item on the January 20th Village Board Meeting Agenda. /2Jj) v Dan Randolph n 'Jc~ I concur with the above recommendation. c: Village Clerk Lisa Angell H: \Engi neeri ng\Pavement\S treet Fi le\Li nneman\Change order memo. doc