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HomeMy WebLinkAbout7. MANAGERS REPORT 04/08/2009 Mount Prospect ~ Mount Prospect Public Works Department INTEROFFICE MEMORANDUM DATE: APRIL 2, 2009 TO: VILLAGE MANAGER MICHAEL E. JANONIS FROM: PROJECT ENGINEER SUBJECT: ALGONQUIN ROAD - BUSSE ROAD - DEMPSTER STREET PEDESTRIAN SIGNAL IMPROVEMENT PROJECT . RECOMMENDATION TO ACCEPT CONSTRUCTION BID FOR AN AMOUNT NOT TO EXCCED $266,231.73 . RECOMMENDATION TO ACCEPT ENGINEERING INSPECTION PROPOSAL FOR AN AMOUNT NOT TO EXCEED $19,728.00 Back2round The area where Algonquin Road, Busse Road and Dempster Street come together form three closely spaced but distinct intersections. There is currently only one leg at one of the three intersections that has a marked crosswalk and pedestrian signals. The combination of multi-family housing and shopping leads to a lot of foot traffic. Unfortunately, many pedestrians are crossing these busy roads without the protection of pedestrian signals. Working together, the Community Development Department and Public Works Department identified a need in this area for additional pedestrian signals. To increase pedestrian safety in the area, the Village applied for and received approval for a Community Development Block Grant (CDBG). This grant is expected to fully pay for both the design and construction of pedestrian signal and sidewalk improvements. Last year, the Village hired an engineering consultant to provide design services. And both mOT and the Cook County Highway Department (CCHD) have reviewed and approved the engineering drawings. The traffic signals at all three intersections as well as the roadways of Algonquin Road and Busse Road are under the jurisdiction of IDOT; Dempster Street is under the jurisdiction of CCHD. The design includes upgrading and adding LED countdown pedestrian signals at the three intersections. Filling in missing sidewalk segments, constructing sidewalk ramps and adding painted crosswalks will also be part of the project scope. In addition, the intersection of Algonquin Road and Busse Road will receive decorative brick sidewalk treatments at the four comers to enhance the area. With approval from both mOT and CCHD, the Engineering Division bid the project in early March. Bid Process The bid opening for the project was on March 16,2009. Sealed bids were publicly opened and read aloud at 10:00 a.m. A Notice to Bidders was published in the local newspaper and four companies were sent invitations to bid on the project. Seven companies picked up bid packages and three submitted bids. The prices were as follows: Company Lyons Electric Company Home Towne Electric Company Gaffney's PMI Bid Amount $255,992.05 $261,637.00 $270,851.55 The consultant's estimate for the project was $291,462.19. The bids were checked for accuracy and there wprp nn prrnrs: page 2 of2 Algonquin-Busse-Dempster Pedestrian Signal Improvement Project April 2, 2009 Construction Discussion The decision to go out for bids early in the year resulted in favorable bids for the Village. The schedule is to begin construction this summer once the necessary paperwork has been completed including securing permits from mOT and CCHD, and once the contractor has received the ordered construction materials. The low bidder, Lyons Electric Company of LaGrange, Illinois, has previously performed electrical work in the Village. They were the contractor on the Village's 1996 Street Lighting Project, the Ida Court Lighting Project and the Central Road Phase 2 Lighting Project. I have spoken with representatives from the Village of Oak Park and City of Berwyn regarding recent traffic signal work performed by Lyons Electric Company. Both said they have done extensive work in their respective communities and will continue to consider them on future projects. In addition, they are prequalified with mOT to perform electrical work on State projects. The low bid of $255,992.05 is based on anticipated quantities. While many of the quantities are not expected to change, a few quantities such as the amount of electric cable and concrete work can fluctuate and affect the final construction cost. To cover any unexpected overages, it is recommended that a contingency of 4% of the bid price be added to the contract. This equates to an additional $10,239.68. Therefore, the total contract awarded to Lyons Electric Company would be for an amount not to exceed $266,231.73. Ens!ineerine: InsDection Discussion Gewalt-Hamilton Associates, Inc. of Vemon Hills, Illinois was requested by the Village to submit a proposal to provide part-time inspection services for this project. Being the design engineer for the project, their field personnel will be able to work closely with their office staff. This will allow for a good working relationship so that construction related decisions can be effectively made. Gewalt-Hamilton Associates, Inc. has performed well thus far. They provided a quality design, met deadlines and have kept project costs within budget. Gewalt-Hamilton Associates quote to provide inspection services for this project is $19,728.00. The work includes on-site inspection of the contractor's work, construction layout and staking, material testing, record keeping, verifying measurements and keeping the project on schedule and within budget. The proposal is acceptable to Staff and the cost is in line with the scope of the project. Recommendation It is Staff's recommendation that Lyons Electric Company of LaGrange, Illinois be awarded the construction contract for the Algonquin Road - Busse Road - Dempster Street Pedestrian Signal Improvement Project in the amount not to exceed $266,231.73. It is also Staff's recommendation that Gewalt-Hamilton Associates, Inc. of Vernon Hills, Illinois be awarded a contract for engineering inspection services in the amount not to exceed $19,728.00. Funding for this project is available in the 2009 Budget as part of the CDBG fund. The total amount of the CDBG funds remaining for this project is $286,816.00 which will cover both the construction and engineering inspection contracts. Please include this item on the April 8th Village Board Meeting Agenda. , ~ U II ~ (y ~~ ~~ ~~ (j')Z -, t ~~ ~~ ~~ 0> ..........0 ~~ ~~ :J~ r:Cl~ ..........~ Z< ~Z ~S2 z{j') oZ ~< ~~ <~ (j') ~ b 0 .u ~ c.. Vl ~ 0 ~ c.. ~ ::J 0 :::; .... 0 .u (j -< ....J ....J - > .. Mount Prospect Mount Prospect Public Works Department INTEROFFICE MEMORANDUM DATE: APRIL 2, 2009 f>\).N\iGJ ~10IO~ TO: VILLAGE MANAGER MICHAEL E. JANONIS FROM: PROJECT ENGINEER SUBJECT: RAND ROAD - CENTRAL ROAD - MOUNT PROSPECT ROAD PEDESTRIAN SIGNAL IMPROVEMENT PROJECT . RECOMMENDATION TO ACCEPT CONSTRUCTION BID FOR AN AMOUNT NOT TO EXCCED $176,996.09 . RECOMMENDATION TO ACCEPT ENGINEERING INSPECTION PROPOSAL FOR AN AMOUNT NOT TO EXCEED $19,563.00 Back2round The area where Rand Road, Central Road and Mount Prospect Road come together form three closely spaced but distinct intersections. The Mount Prospect Shopping Plaza is adjacent to the north sides of Rand Road and Central Road, and to the south and west are primarily single family homes. The three intersections have a partial pedestrian signal system making the roads somewhat difficult and inefficient to cross. Over the years the Village has received requests from residents to enhance the crossings in order to make it easier to access the shopping center. That is why in 2007 the Village hired an engineering consultant to design complete pedestrian signal systems at a few intersections including this location. Due to the size and scope of the necessary work at this location, however, the project was not budgeted until 2009. The design for all three intersections includes LED countdown pedestrian signals, sidewalk, ADA handicap accessible sidewalk ramps and crosswalks. The traffic signals are maintained by the Village but the sequencing is regulated by lOOT. In addition, both Rand Road and Central Road are under the jurisdiction of lOOT. lOOT has reviewed and approved the engineering drawings. Also, a portion of the project will take place within the corporate limits of the City of Des Plaines. Staff has had discussions with City representatives regarding the proposed work. Through a resolution, the City has agreed to reimburse the Village for the portion of the project that will take place in Des Plaines. With support from the City of Des Plaines and approval from lOOT, the Engineering Division bid the project in early March. Bid Process The bid opening for the project was on March 16,2009. Sealed bids were publicly opened and read aloud at 10:00 a.m. A Notice to Bidders was published in the local newspaper and four companies were sent invitations to bid on the project. Seven companies picked up bid packages and three submitted bids. The prices were as follows: Company Gaffney's PMl Lyons Electric Company Home Towne Electric Company Bid Amount $170,188.55 $176,700.00 $189,084.40 The consultant's estimate for the project was $223,146.60. The bids were checked for accuracy and there were no errors. page 2 of2 Rand-Central-Mount Prospect Pedestrian Signal Improvement Project April 2, 2009 Construction Discussion The decision to go out for bids early in the year resulted in favorable bids for the Village. The schedule is to begin construction this summer once the necessary paperwork has been completed including securing a permit from mOT and once the contractor has received the ordered construction materials. The low bidder, Gaffney's PMI, has not performed electrical work in the Village. They have bid on previous traffic signal projects but was never the low bidder. Gaffney's PMI has been in business for many years with a majority of their work taking place in the western suburbs as their office is located in Batavia. I have spoken with representatives from the City of Geneva, City of Aurora and City of St. Charles regarding recent work perfonned by Gaffney's PM!. All said they have done satisfactory work and will continue to consider them on future projects. In addition, they are prequalified with mOT to perform electrical work on State projects. The low bid of $170,188.55 is based on anticipated quantities. While many of the quantities are not expected to change, a few quantities such as the amount of electric cable and concrete work can fluctuate and affect the final construction cost. To cover any unexpected overages, it is recommended that a contingency of 4% of the bid price be added to the contract. This equates to an additional $6,807.54. Therefore, the total contract awarded to Gaffney's PMI would be for an amount not to exceed $176,996.09. En2ineerinl! Insoection Discussion Civiltech Engineering, Inc. ofItasca, Illinois was requested by the Village to submit a proposal to provide part-time inspection services for this project. Being the design engineer for the project, their field personnel will be able to work closely with their office staff. This will allow for a good working relationship so that construction related decisions can be effectively made. Civiltech Engineering, Inc. has performed well thus far. They provided a quality design, met deadlines and have kept project costs within budget. Civiltech Engineering's quote to provide inspection services for this project is $19,563.00. The work includes on-site inspection of the contractor's work, construction layout and staking, material testing, record keeping, verifying measurements and keeping the project on schedule and within budget. The proposal is acceptable to Staff and the cost is in line with the scope of the project. Recommendation It is Staffs recommendation that Gaffney's PMI of Batavia, Illinois be awarded the construction contract for the Rand Road - Central Road - Mount Prospect Road Pedestrian Signal Improvement Project in the amount not to exceed $176,996.09. It is also Staffs recommendation that Civiltech Engineering, Inc. ofltasca, Illinois be awarded a contract for engineering inspection services in the amount not to exceed $19,563.00. Funding for this project is available in the 2009 Budget. Please include this item on the April 8th Village Board Meeting Agenda. T Attachment: Map h.\PnolnpPrino\tmffil"\c:.ion~l~\npilpf:.tr1!:11n\'mntl-C'Pntml_nm\vh l"nntmrtnr T'PC" ilnro t3 ~ Q.. (/l o ~ Q.. ~ :::J o ~ ~ o ~ c.:J <t: ...J ...J :> f-l U ~ f-ley U~ ~~ Cf)f-l Oz ~~ ~~ f-l~ z> :JO O~ ~~ ----~ ~........c ~~ f-lZ Z~ ~Ci) Uz ----< Q........c Z~ ~~ Q ~ ~ j f) , f) ., Mount Prospect Village of Mount Prospect Mount Prospect, Illinois ~ INTEROFFICE MEMORANDUM FROM: MICHAEL E. JANONIS, VILLAGE MANAGER FINANCE DIRECTOR ~~./~/~ e.f B Cfi' TO: DATE: MARCH 30, 2009 SUBJECT: ERP PROJECT MANAGEMENT CONSULTANT RECOMME UPDATE At the March 24 Committee of the Whole meeting Finance staff presented to the V' e Board a recommendation to retain the services of Plante & Moran to provide ERP project management consulting services. The original fee proposal for providing this service to the Village was $114,720. Staff met with Plante & Moran to discuss the project workplan and settle on a not-to-exceed fee for the engagement. The total number of hours for the engagement was adjusted from 478 to 460. It was felt that staff could assume responsibility for completing certain tasks in lieu of having them performed by the consultant. In addition, Plante & Moran agreed to lower their blended hourly rate from $240 to $225. The total savings from the original proposal resulting from these changes is $11 ,220. The final not-to-exceed fee for Phase 1 and Phase 2 work is now $103,500. I am recommending that we retain Plante & Moran to provide ERP project management consulting services for the Village for a not-to-exceed amount of $103,500. ~& VC- David O. Erb Finance Director H:\ACCT\Financial Software RFP\Final ERP Consultant Recommendation.doc Molmt Prospect Village of Mount Prospect Mount Prospect, Illinois ~ INTEROFFICE MEMORANDUM TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: FINANCE DIRECTOR DATE: MARCH 18, 2009 SUBJECT: ENTERPRISE RESOURCE PLANNING (ERP) PROJECT MANAGEMENT CONSULTANT RECOMENDA TION PURPOSE: Present for the Board's consideration a recommendation to retain the services of a project management consultant to support the analysis/design and vendor selection phases for a village- wide ERP system. Enterprise resource planning is an enterprise-wide information system designed to coordinate all the resources, information, and activities needed to complete business processes. ERP software works to promote integration and process automation and better provides for tools and data useful for the end user. BACKGROUND: The Village currently utilizes a suite of software applications to administer its general ledger, payroll, accounts payable, utility billing, accounts receivable and other financial management systems. In addition, there are several other third-party and internally written programs that assist the Village in managing its various business processes. The main suite of programs is over 10 years old and has reached the end of its useful life. Connectivity and similar obsolescence issues are apparent with the third-party and internally written programs which have also reached the end of their useful life necessitating replacement as well. The 2009-2013 Capital Improvement Plan (CIP) identifies budget needs for the replacement of this software. In the 2009 and 2010 Capital Improvement Fund budgets there are monies allocated for the hiring of a consultant to take the Village through the steps of selecting and implementing the new software. DISCUSSION: In February, Request for Proposals (RFP) were sent out to twelve (12) ERP project management consultant firms to solicit their interest in assisting the Village with the selection and implementation of a village-wide ERP system. We feel that a village-wide ERP system, in lieu of the current system configuration, will permit improved connectivity throughout the departments and increase efficiencies in operations. Tasks to be provided by the selected firm include assessment of the Village's current business information system, identify the computing needs and associated applications of its users, recommend a system design, develop a Request for Proposals (RFP) for the new integrated ERP system, evaluate the vendor's proposals, recommend a vendor solution, and manage the implementation. The project is broken down into three phases. Phase 1 is for analysis and design of the existing system and proposed ERP system. Phase 2 is for vendor selection which includes preparation of an RFP. Phase 3 covers the implementation of the selected software. A copy of the RFP is included as Attachment 1. The RFP strictly stated that only independent consultants would be considered for the engagement. Consultants could not have an affiliation or be a reseller of any software or enterprise system proposed. ERP Project Management Consultant Recommendation March 18, 2009 Page 2 of 3 The Village received responses from five (5) firms. The five firms that returned a proposal were Clerestory, Conlon Group, IT Advocates, KPMG and Plante & Moran. Each of the firms has performed the scope of services listed above for other governmental entities. After a review of the proposals, four firms were invited for interviews before a core selection team. The core team included Dave Strahl and Mike Dallas from the Manager's Office, Joan Middleton from IT and Lynn Jarog and myself from Finance. A set list of questions was asked each firm to easily compare qualifications and experience. In addition, several follow-up questions were asked related to the proposals and information that came out during the interview process. After the interviews there was consensus among the core team of a first and second choice to provide the consulting service. Calls were then made to listed references to further assess the firm's capabilities and get insight into their interaction with staff. Finally, the fee structure and time commitment section of the proposal was addressed. Attachment 2 lists the total fees and hours allocated for each phase of the project. Some of the factors considered when determining the most qualified, best suited firm include staffing and other resources available to the firm, experience in providing similar services for other clients, understanding of and approach used to address the Village's needs outlined in the RFP and compatibility with Village staff. Based on these factors it was decided that Plante & Moran (P&M) was most qualified and best suited to provide the consulting services for this engagement. Below are some of the ways P&M was able to address the needs outline in the RFP. . Staffing and Resources: P&M is a management and consulting and public accounting firm with a staff of over 1 ,600 professionals, 150 of which support the Management Consulting Services Group. The project team that would have a part in the engagement with the Village includes professionals from the consulting, governmental accounting, technology and software sectors of their organization. Based on the size and complexity of the engagement we felt that the resource demands would not overwhelm P&M as it could some of the other firms interviewed. The core team also felt the number of hours allocated to the project were sufficient for a successful completion within the desired timeframe. . Relative Experience: Each of the members of the consultant team has considerable experience working with governmental clients. The scope of work for projects P&M team members have been involved in matches what the Village is looking to accomplish with its village-wide ERP system. . Project Approach and Understanding: Through the interview process P&M was best able to convey their business approach to our project. They were able to outline their project work plan that addressed the requirements outlined in the RFP. The project work plan proposed by P&M is very methodical and includes measurable objectives for each phase of the project. Defined roles and expectations were outlined for staff as well as for the consultant. . Compatibility: Understanding the importance of complete buy-in by the end user has on the success of the project we wanted to make sure that the consultants would be able to interact well with staff while balancing the need for the project to move along. Phase 1 of the project is for analysis and design of the existing system and proposed ERP system. This phase will consist of inter-department and inter-function meetings with end users. A high level of interpersonal skills will be needed by the consultant. Based on the interviews and reference calls we believe that P&M staff possesses the needed skills in this area. H:\ACCT\Financial Software RFP\ERP Consultant Recomendation.doc i ERP Project Management Consultant Recommendation March 18, 2009 Page 3 of 3 As staff worked through the proposals and firm interviews it became apparent that to address all three phases at this time might not be cost effective for the Village. There are currently a number of questions regarding the final phase that are dependent on the system configuration and software that is ultimately chosen. The difficulty among the firms in pricing and setting hour commitments for this final phase is obvious in the pricing proposals received. Hours ranged from 76 to 2,330. The number of hours that P&M has allocated for Phase 3 (576) appears to be most in line with the successful completion of the project. However, since it is not necessary to commit to the Phase 3 work at this time we felt it is in the best interest of the Village to delay final decision for this work until better information is available. P&M and the Village have agreed to hold off on setting the scope and pricing on Phase 3 activities until a software vendor is selected. The original fee proposed by P&M for Phases 1 and 2 is $114,720. This is based on 478 hours of consultant staff time. The average number of hours allocated for the first two phases by all five firms was 590 with a low end commitment of 162 hours and a high end commitment of 1,1 00. Staff has had follow-up conversations with P&M and their final fee is negotiable while we firm up roles and responsibilities between the Village and the consultant. Results of our discussion with the consultant will be provided to the Board at the Committee of the Whole meeting. Although the fee for P&M is not the low quote we feel that there is better overall value being received from a more qualified firm. The 2009 and 2010 budgets includes $90,000 for consulting services. The original scope of work that the budget was based consisted of a simple village-wide financial management system, similar to what we currently have, along with the implementation of an integrated suite of programs for Community Development. The scope as presented in the RFP was expanded to address the issues we are having with the third-party and internally written programs that are best addressed using an ERP system. As a result the budget will need to be adjusted to accommodate the additional work. Funds to support the additional cost are available from the Community Development budget for Other Professional Services. These funds are intended for process review in the Building Division that will now occur in the analysis and design phase of the ERP project. RECOMMENDATION: Request authorization from the Board to retain the services of Plante & Moran to provide ERP project management consulting services for an amount not to exceed $114,720. David O. Erb Finance Director DOE! H:\ACCT\Financial Software RFP\ERP Consultant Recomendation.doc Mount Prospect Public Works Department INTEROFFICE MEMORANDUM DATE: MARCH 31, 2009 5 \) .ff(\(? J-{ loel 09 ~~ REPLACEMENT OF PLAN COPIER AND SCANNER ($16,236) DEPUTY DJRECTOR OF PUBLIC WORKS TO: FROM: VILLAGE MANAGER MICHAEL E. JANONIS SUBJ: Background The Public Works Department seeks to replace one (1) large format document copier and one (1) large format document scanner. These devices are primarily utilized by the Engineering Division to manage and duplicate construction plans, permits, and plats. The large format document copier is a K+E 3036 analog copier capable of copying documents ranging in width from 8-1/2" to 36". The machine has no memory and multiple copies must be hand-fed into the machine multiple times. Additionally, the machine is not networkable and it is the only large format copier in the Public Works Department. More significantly. it is one of only two large format document copiers owned by the Village. The other is in the Building Division of the Community Development Department. This copier was originally purchased in 1995. It has entered its 14th year of service. Staff research indicates that it would cost approximately $8,000- $10.000 to replace this machine as a stand alone unit. The large format document scanner is a Vidar Tru Scan machine capable of creating uncompressed tagged image file format (TIFF) files from paper documents ranging in width from 8-1/2" to 36". This scanner is primarily utilized to create digital files of plans, technical drawings, and plats for electronic archiving. Electronic archiving significantly reduces the space needed to store large format documents and minimizes data retrieval times. Unfortunately, this device is not networkable and can only operate in conjunction with a dedicated PC running the dated and problematic Windows 2000 operating system. This PC is the only PC in the Village currently running on Windows 2000. In addition, the files created by this scanner are extremely large (70 MB for a single BIW plan sheet) and must be compressed with third-party software after imaging. This machine has been out of production for many yearsj has no technical support, and cannot be repaired if broken. It was originally purchased in 1994 and has entered its 17th year of service. Staff research indicates that it would cost approximately $9,500 to replace this machine as a stand alone unit. Page 2 of 3 Replacement of Plan Copier and Scanner ($16,236) March 31, 2009 Both the K +E copier and Vidar scanner were purchased prior to the establishment of the computer replacement internal service fund and have not previously been eligible for replacement as part of this program. Rather, these machines were considered components of the Engineering Division office equipment inventory. Staff proposes that these replacements, if authorized by the Village Board, will be included in the computer replacement program and replaced at 7 -year intervals. Due to the limited space available in the Engineering Division office area, staff desired to replace these two separate machines with a single, combination machine capable of . ,effectively performing both copying and scanning functions within a reduced floor footprint. Request for Proposals Staff has obtained the following cost proposals for large format document copier/scanner combination units: Distributor Brand Cost FOS 1ma in FDS Ima in Oce KIP 36" 3100 color co ier/scanner Xerox 36" 6204 color co ier/scanner Oce 36" TDS 450 color co ier/scanner $16,236 $21,592 $26,990 Discussion Staff researched a number of combination units and determined that the KIP 3100 color large format copier/scanner, Xerox 6204 color large format copier/scanner, and the Dce TDS 450 large format copier/scanner all met our needs. All of these machines are digital, networkable devices capable of up to 36" wide scans or copies at a rate of 8" per second. Both machines can scan images to portable document format (POF), compressed tagged image file format (TIFF), or AutoCAD .dwg drawing files. Both the KIP and Xerox wide-format combination copier/scanner machines are marketed via exclusive regional distributors. That is, specific dealers are granted an exclusive license to market these products within a specified geographic boundary. Distributors from other regions are not encouraged to compete for sales in areas licensed to other dealers. The authorized dealer in the Chicago area is FDS Imaging Solutions in Elk Grove Village, Illinois. Staff has visually inspected the apparent lowest cost unit, the KIP 36" 3100, at the FDS Imaging showroom in Elk Grove Village. It is the opinion of staff that this machine can provide specified imaging functions (scanning and copying) at an acceptable rate and quality. Page 3 of 3 Replacement of Plan Copier and Scanner ($16.236) March 31, 2009 The KIP 3100 is currently the subject of marketing incentive program. It's normal price is approximately $18,236. However, if purchases are made prior to the end of April 2009, FOS Imaging will reduce the price by $2000 (to $16,236). KIP is an industry leader in wide format imaging products including copiers, scanners, and specialized printing technologies for engineering and technical design firms. KIP America is headquartered in Novi, Michigan and has office throughout North America and in over 140 countries throughout the world. Technical support and service for the KIP 3100 is provided by FOS Imaging Solutions in Elk Grove Village. lIIinos. Recommendation Staff recommends replacing .the existing K+E 3036 analog large-format copier and the Vidar Tru Scan wide-format scanner with a KIP 3100 36" large-format combination copier/scanner from FDS Imaging Solutions in Elk Grove Village, Illinois for an amount not to exceed $16. 236. Sufficient funds for this proposed purchase re available in the current budget. Sean P. Dorsey I concur. Glen R. Andler Director of Public Works Co: Administrative Superintendent Jason Lelb Village Engineer JeffWulbecker File Molmt Prospect Village of Mount Prospect Mount Prospect, Illinois ~ INTEROFFICE MEMORANDUM FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE ~~~ TO: DATE: MARCH 31, 2009 SUBJECT: GENERAL AND AUTO LIABILITY THIRD-PARTY CLAIMS ADMINISTRATION PURPOSE: To present a recommendation for renewal of the annual service agreement for third-p rty claims administration for the year beginning January 1, 2009 and ending December 31, 2009. BACKGROUND: To assist in the administration of general and auto liability claims the Village has contracted out the service to a third-party administrator. The Village's current agreement for claims administration expired on December 31 ,2008. A new agreement is needed at this time to have the current provider continue to service the Village. DISCUSSION: GAB Robins (GAB) is the current service provider for general and auto liability claims administration. GAB has provided this service to the Village since 1997. The agreement for 2009 contains no changes to the terms and conditions or minimum annual fee from the prior year. Below is a summary of fees for the prior year and 2009. Service 2009 Rates 2008 Rates Claims Administration $ 1,000 $ 1,000 Minimum Annual Fee 8,000 8,000 ACT Charae 1,009 1,009 Total Fee $ 10,009 $ 10,009 The claims administration fee is a flat fee paid to GAB for utilizing their services in administrating claims. The Village is also subject to an $8,000 minimum annual fee. Time and expense charges are invoiced against the annual fee during the 12-month period until the balance is exhausted. Any remaining funds not applied to time and expense charges are credited to GAB for the performance of their contract for the 12-month period. If during the 12-month period the entire annual fee is depleted, the Village will begin making '\ General and Auto Liability Third-Party Claims Administration March 31. 2009 Page 2 payments for charges incurred in managing the claims. The ACT (automated cash transfer) charge is the annual fee for processing and making payment of claims charges. This service relieves the Village from having to process payments internally. Our experience with GAB has been very positive. Communication between the Finance Department, Corporation Counsel and GAB is strong and helps with controlling overall claims costs. Based on our satisfaction with the service provided and no changes to the funding schedule I recommend we continue our relationship with GAB. RECOMMENDATION: It is recommended we approve the agreement for GAB to provide general and auto liability claims administration services during 2009 according to the proposed funding and fee schedule. U~&~ ~, David O. Erb Director of Finance DOEI Attachment 1:\Insurance\GAB\Renewal- 2009.doc ( .G\B RobblS ~ GAB Robins North Am:rica, Inc. 9 Campus Drive. Suite 7 PO Box 316 Parsippany, NJ 07054-0316 T: 973-993-3722 F: 973-993-3419 March 18, 2009 4>~a ~.p ~ (e'~~ ~:I. <~ Mr. David Erb Village of Mount Prospect 50 South Emerson Street Mount Prospect, IL 60056 Re: Village of Mount Prospect cc#453061 Contract Period - January 1. 2009 throUGh December 31. 2009 Dear Mr. Erb: Enclosed are two (2) originals of the above referenced contract. Please forward for execution by an individual authorized to contractually bind your organization. In order for this document to be properly executed, the following items must be completed: . The authorized individual must sign (with job title) and date the signature page. Upon execution, please return both originals to my attention; but before doing so please fax me a copy of the signature page to my attention. My fax number is 973-993 -3419 attn: Len Mier. Once we receive the two originals in the mail we will execute the contracts and return one original to you for your records. Sincerely, ~ /~r~ ~ Contract Administrator Contract Management Division GAB Robins, North America GAB Robins North America, Inc. 449-6-03.doc (01104) Page II . GAB Robins North America, Inc. Client: Villasr:e of Mount ProsDect Customer Code #: 453061 SCHEDULE C GAB Robins will Drovide claim services in the following areas: Auto Liability at Time & Expense General Liability at Time & Expense Auto Physical Damage at Time & Expense All time and expense charges shall be on the basis of the hourly rate existing at the time of file closure and full reimbursement for all reasonable expenses incurred. a. GAB Robins will provide claims administration in connection with services outlined above, for claims occurring during a twelve (12) month period commencing 01/0112009 through 11/3112009. SaleslExcise Tax in those states where levied shall be in addition to the service fee unless Client presents a valid exemption certificate. b. This twelve (12) month period is subject to an $8,000 minimum annual fee. The $8,000 minimum will be invoiced to Client on the inception date of this agreement. Time and Expense charges for claims concluded during the twelve (12) months shall be applied to the $8,000 until exhausted. Any of the $8,000 annual fee that is not applied to Time and Expense charges for claims concluded within the twelve (12) months shall be credited to GAB Robins as fees for the performance of this contract for the twelve (12) month period. If at any time during the twelve (12) month period, the $8,000 is depleted, Client will begin making payments based on statements prepared by GAB Robins. Client will promptly remit these stated charges to GAB Robins North America, Inc. at P.O. Box 7247-7589, Philadelphia, PA 19170-7589. Payments required by this sub-paragraph shall be due and payable not later than thirty (30) days from the invoice date to Client. Interest shall accrue at the rate of 1.5% per month or the maximum allowed by law and shall be due and payable on all undisputed unpaid balances after the initial due date. c. Annual Claims Administration Fee: 51,000.00. This fee will be invoiced to Client on the inception date of this agreement. Annual Automated Cash Transfer (ACT) Charge: 51.009.00