The URL can be used to link to this page

2013-02-25 - Village Board Committee of the Whole - Agenda Packet Meeting of the Village of Buffalo Grove Fifty Raupp Blvd Buffalo Grove, I L 60089-2100 Board of Trustees Phone:847-459-2500 Committee of the Whole February 25, 2013 at 6:30 PM 1. Welcome 2. Discussion A. Presentation of 2013 Procurement Policy [GO TO] B. Discussion -Amending Muncipal Code 13.04.250 to Change Fees Related to Water Service Reinstatement [GO TO] C. Status Update- New World Systems Utility Billing On-Line Credit Card Acceptance [GO TO] 3. Executive Session 4. Adjournment The Village of Buffalo Grove,in compliance with the Americans with Disabilities Act,requests that persons with disabilities, who require certain accommodations to allow them to observe and/or participate in this meeting or have questions about the accessibility of the meeting or facilities, contact the ADA Coordinator at 459-2525 to allow the Village to make reasonable accommodations for those persons. Presentation of 2013 Procurement Policy 2-A Overview Presentation and discussion of the 2013 Procurement Policy. The purpose of this Procurement Policy is to provide the Village of Buffalo Grove staff with guidelines and directions for the acquisition of goods and services. To that end the Policy codifies many practices already in place, defines responsibilities and proper procurement methods, and centralizes documentation. Attachments Purchase Policy Memo.pdf Draft Purchasing_Policy_2_20_13_revisions.pdf Trustee Liaison Staff Contact Trustee Berman Brett Robinson, ....M.o�n.d�a............Fe.b�r�uarY .............2�5......2�0.1.�3....................................................................................................D.��s�cu�s�s.�.o.n...._...Ite.m....�....�._�....................................................................................................................................................... Y, COVER MEMO TO: DAME BRAGG FROM: BRETT ROBINSON SUBJECT: PROCUREMENT POLICY DATE: FEBRUARY 20,2013 CC: SCOTT ANDERSON Please find attached the 2013 Procurement Policy. The purpose of this Procurement Policy (Policy)is to provide the Village of Buffalo Grove staff with guidance and direction for the acquisition of goods and services. To that end the Policy codifies many practices already in place, defines responsibilities and proper procurement methods,and centralizes documentation. While much of what is in the Policy is already standard practice, staff would like to bring attention to three particular changes from the previous purchasing policy including;the "Bid Limit", "Professional Services"or a RFQ (Request for Qualifications),and"Cooperative Procurement". The later two items specifically address the unusual number of times the Village Board is required to "Waive Bids". Staff proposes that the Village Board increase the bid limit to $20,000. This new limit will put us in line with many of our comparable communities (attached is a recent survey performed by Jennifer Maltas) and with the Illinois Municipal Code 65 ILCS 5.This will require a change to Village Ordinance 2.08 In the Section"Professional Services"requests for qualifications are addressed. It is staffs recommendation,that instead of our current policy of waiving bids and then requesting proposals, the Village of Buffalo Grove start a process of Requesting Qualifications followed by an award of contract requiring a two thirds confirmation vote by the Village Board.This process is addressed in the Illinois Municipal Code 65 ILCS 5/8-1-7. Staff has requested the Village Attorney to review what if any changes may be required to Village Ordinance for this process to take place. Again in the Section "Cooperative Procurement" Staff has tried to address the unusual process of the Board having to "Waive Bids"to procure items/services that in many cases have already gone through a competitive procurement process. Whether it be the Northwest Municipal Conference, State of Illinois Department of Central Management Services or the U.S. General Services Administration many agencies have gone through the bid process and the Village of Buffalo Grove can take advantage of these contracts. Staff is recommending the language"Accept 3rd Party Bids for and purchase using a joint procurement agency bid"be used on these particular agenda items. Once again Staff has requested the Village Attorney to review what if any changes may be required to Village Ordinance for this process to take place. VILLAGE MANAGER AUTHORIZATION SURVEY Buffalo Grove $15,000 Lake Bluff $20,000 Mount Prospect $20,000 toilet $20,000 Streamwood $10,000 Bannockburn $20,000 Hanover Park $20,000 Mundelein $10,000 Lisle $10,000 Arlington Heights $10,000 Sycamore $20,000 Vernon Hills $20,000 Niles $20,000 Lake Forest $20,000 Highland Park $20,000 Grayslake $10,000 Elgin $20,000 Northbrook $10,000 Schaumburg $20,000 DeKalb $20,000 Manhattan $3,000 Rochelle $20,000 Glencoe $20,000 Barlett $20,000 Yorkville $20,000 Lindenhurst $20,000 Champaign $17,500 Lincolnwood $20,000 Streator $20,000 Glenview $20,000 Barrington $10,000 Total Respondents 31 Authorizations of$10,000 7 Authorizations of$20,000 22 Authorizations Other 2 2 "No r PROCUREMENT POLICY"' This policy is intended for use by Village Personnel as a general reference and will be revised as policies and procedures require revisions or clarification. VILLAGE OF BUFFALO GROVE PR(]C[}RMENT P(]LTC`/ TABLE OF CONTENTS Village of Buffalo Grove Procurement Policy ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 5 Introduction^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 5 Procurement Guidelines&Summaty............................................................... 6 ''--v-------'--- of Purchasing ^ The Manager's responsibilities 7 The Village Manager's responsibilities 8 Department and employee responsibilities 8 The Purchasing Manager's responsibilities toVendors 9 The Vendor's responsibilities tu Village o[Buffalo Grove 9 Payment''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 9 Conflicts OfInterest....................................................................................... 10 Giftsand Favors............................................................................................ 10 Procurement Methods................................................................................... if Petty Cash 11 Advance Check 8cqocm{ 11 Purchase Orders 11 Blanket Purchase Orders 12 Procurement Card Program 12 Special Equipment Procurement^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 13 Electronic Equipment 13 Electronic Equipment 13 VehicleslEquipment Repair~~~~~~~~~~~^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 13 Buildings 14 Maintenance Agreements 14 WriftenContracts.......................................................................................... 15 VILLAGE OF BUFFALO GROVE PR(]C[}RNIENT P(]LTC`/ Multi-Year Contracts 15 Informal Purchases....................................................................................... 16 Informal Buying Roquirornontu-Purohauouo[$100orLouu 16 Informal Quote Roquirornontu- Purchases 8otvvoon$100.01 8c$2500 16 Informal Proposal Requirements - Purchases 8otvvoon $2500.01 8z $19,999.99 16 Informal Purchase Exceptions 16 Formal Procurement Requirements............................................................... �7 Competitive Sealed Bids 17 Standard for Awarding Bid 18 Requests for Proposals 18 Bid/Quote Records 18 to Bidl .............................................. 19 Sole Source Procurement 19 Emergency Procurements 19 Professional Services 19 Fuel Procurement 19 Cooperative Procurement 20 AppendixA ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 21 Formal Bid Requirements.............................................................................. 21 AppendixB................................................................................................... 26 Compefitfve Sealed ...................................................................... 26 AppendixC................................................................................................... 31 Village of Buffalo Grove Public Contract Statements ...................................... 31 AppendixD................................................................................................... 32 Qualffied Vendor Registratfon........................................................................ 32 AppendixE................................................................................................... 34 VILLAGE OF BUFFALO GROVE PR(]C[}RNIENT P(]LTC`/ Procurement Card Policy.............................................................................. 34 Purpose 34 Background 34 General Information 34 Authorizations and spending limits 35 Responsibilities o[Cardholders 35 Responsibilities o[Finance Department 37 AppendixF................................................................................................... 42 Petty Cash Reimbursement Request 42 Source muatmrialforAppendix AJ&B/American Bar Association The 2000Model Prmcamnmummt Codmfor State and Local Government. VILLAGE OF BUFFALO GROVE PROCUREMENT P(]LTC`/ lN7R0DO[7l0N This procurement policy is intended for use as a guide to the Village of Buffalo Grove procurement methods. When used properly, the policies will enable the Village to obtain needed materials, equipment, supplies, and uorvioou o0]oiondv and economically. While this manual does not answer all questions related to purchasing, it does provide the foundation for a sound procurement policy. This manual is intended for use by the Village's Personnel as agonora|reference and will bo revised au policies and procedures require revisions orclarification. The basic goals o[the Village's procurement program are: 1. 7o comply with the legal requirements o[public procurement and purchasing. 2. To assure vendors that impartial and equal treatment is afforded to all who wish to do business with the Village. 3. To receive rnaxirnurn value for each dollar spent by awarding purchase orders to the |ommut responsible bidder, taking into consideration quality, performance, technical support,delivery schedule,past performance and other relevant factors. 4. To provide Village departments the required goods, equipment and uorvioou at the time and place needed and in the proper quantity and quality. S. To promote environmentally safe products and services while taking into consideration factors such as price,performance,availability and safety. 6. To promote good and effective vendor relations, cultivated by informed and fair buying practices and strict maintenance o[ethical standards. The purpose of this purchasing manual is to provide the Village of Buffalo Grove staff with guidelines and directions for the acquisition of goods and services. This manual is designed to be a fluid document and will be modified from time to time to conform to changes in legislation, technology and actual practice. The Village Manager, or his/her designee, shall be the final authority with regards to on[oroornont of any of the provisions of this manual. Failure to [oUovv the procedures outlined in this manual may lead to disciplinary action in accordance with the provisions of the Village of Buffalo Grove Personnel Manual. This manual is not intended tu provide third parties with any upooiDo rights when transacting with the Village of Buffalo Grove. All policies and procedures in this Manual are subject to modification by the appropriate l/U|ago ornp|oyoou and, therefore, vendors or other third parties shall not be entitled to rely onthe contents o[this manual. VILLAGE OF BUFFALO GROVE PROCURMENT POLICY PROCUREMENT GUIDELINES & SUMMARY Amount Of Purchase Procurement Method Notification Approval Purchases of$50.00 or less Petty Cash Procedures Supervisor or Supervisor or Designee Designee $50.01 to $100.00 Purchases Request for Payment Method Department Department Supervisor or Supervisor or Or Invoice submitted Designee Designee Purchase Order Procedure $100.01 to $999.99 Purchases Quotes (verbal,fax,email,written) Department Purchasing Supervisor or Manager 3 Quotes Recommended Designee Purchase Order Procedure $1000 to $2,499.99 Purchases Quotes (written,faxed or email) Purchasing Department Manager Director or 3 Quotes Required Designee Purchase Order Procedure $2,500 to $19,999.99 Purchases Contact the Purchasing Manager Department Village Manager Director or or Designee Quotes (written,faxed or email) Designee 3 Quotes or State Contract/GSA Purchase Order Procedures $20,000 and above Contact the Purchasing Manager Village Manager Village Board or Designee Formal Procurement Process Award by Village Board *Ultimate authority to make purchases resides with the Village Board. 6 1 F1 a g RESPONSIBILITIES OFPURCHASING AGENTS THE PURCHASING MANAGER'S RESPONSIBILITIES 1. To facilitate the involvement of local vendors in the Village's procurement policy. 2. Impartial judgments in the selection of vendors which are based on product quality, price, warranty, and performance and vendor delivery, service,and performance. 3. Complying with all Village procurement procedures and State Statutes covering procurement and disposal. 4. Maintaining a store of o0]oo supplies and helping establish guidelines for maintaining general janitorial maintenance supplies. S. Preparing formal bid packets and quotation requests. 6. Managing the formal bid process, including advertising for bids, notifying vendors, accepting bid proposals, opening bids, tabulating bids, and serving as the primary resource for questions from vendors. 7. Purchase review and final preparation o[all purchase orders. 8. Maintaining adequate procurement records, including a database of vendors established in an accessible vendor file. 9. Upon request, assist departments in locating the best source for supplies, materials, and equipment 10. Assisting departments in conducting negotiations with vendors concerning prices, bids, terms,deliveries, and adjustments. 11. Maintaining a central file o[contracts. 12. Assisting departments with the informal bid process. THE VILLAGE MANAGER'S RESPONSIBILITIES 1. Purchase all materials, supplies,equipment,po:sona|uorvioouandoontraotu[orvvhkhh/ndu are provided in the budget,but no item or personal service which exceeds any budget appropriation may bopurchased. 2. For a purchase of more than twenty thousand dollars,the Village Manager shall be required to solicit bids and such bids shall be presented to the Corporate Authorities for approval or rejection. 4. The Village Manager shall solicit bids for any public improvement which will exceed twenty thousand dollars,which is not to be paid for in whole or in part by a special assessment or special tax. S. The Village Manager will make recommendations to the Corporate Authorities with respect to all bids. 6. The Village Manager may issue rules and regulations governing requisitions and the transaction of the business of the purchasing agent and the heads of departments, officers and employees o[the Village. 7. In case of circumstances creating an emergency,the Village Manager may,without prior consent of the Corporate Authorities,award contracts and make purchases for the purpose of meeting the emergency. DEPARTMENT AND EMPLOYEE RESPONSIBILITIES 1. It is the responsibility of each department to requisition goods and services in such a way as to a||ovv time for oornpodbvo bidding, ordering, and delivery of materials. Exceptions shall bo made only on rare occasions,when a true emergency exists. 2. It is the responsibility of the Department director or his designee,in consultation with the Purchasing Manager,tu obtain these goods based upon competitive bids and tu give consideration to product price,value,quality,performance, and delivery. 3. While the Department director may delegate minor purchases to employees, he/she is still responsible for ensuring such purchases are made according to the provisions of this policy. 4. No department director or ornp|oyoo is authorized to make any commitment to any salesperson or Drrn that will bind the Village in any way. During rnoodngs with salespersons, no ornp|oyoo shall make any indication that he/she will r000rnrnond a particular product for purchase. S. It is the responsibility of all Village of Buffalo Grove employees to comply with all rules and regulations set forth herein. As directed by the Village Manager, any employee deliberately violating the policy regarding unauthorized purchases shall be held personally accountable for the purchases. Violation o[the procurement policy may result in disciplinary aodon, up to and including dismissal. VILLAGE OF BUFFALO GROVE PR(]C[}RMENT P(]LTC`/ THE 9OR[BA3lNC MANAGER'S RE390N3lBl[l7lE3 70 VENDORS 1. Encourage goodVillage/vendor rokatk`nu. 2. Encourage businesses located within the Village to participate in the 'u procurement policy,by notifying all known in-Village vendors o[opportunities tnbid. 3. Conduct business with vendors in a professional manner that promotes honesty and /u/rnouu. 4. Accept, and in some cases require, samples from vendors to be used for testing. A fair trial shall be giventua|| uarnp|ouandthooutcornoo[dhoteutuha||boprouontodtuthovondor, in general terms. S. Make every effort to be available for appointments during normal business hours on reasonable notice. 6. Arrange interviews between salespersons and department directors as needed. 7. Write all correspondence to salespersons and vendors, except when technical details can be better written by the department 8. Keep on D|o vendor information, catalogs, uarnp|ou, price quotes, etc. to be used by all departments. THE VENDOR'S RE390N3lBl[l7lE3 TO VILLAGE OF BUFFALO CR0\/E 1. Understand the needs of Village of Buffalo Grove and to try to find the right product at the right price,quality,and quantity that benefits the Village auawhole. 2. Conduct thornuo|vou in a professional manner: being honest about the supplies and products they represent. 3. Honor purchase orders generated as a result of providing price quotes on upooiDod items and quantities. 4. Complete on a biennial basis the Village of 8u[hdo Grove Qualified Vendor Registration form. (AnpondixD) PAYMENT The Village is bound by State Statute (50 ILCS 505/1 et seq)which states that payments are to be made pursuant to the Illinois Prompt Payment Act. |tiu important tu note that all contracts and agreements with Vendors reflect these particular payment terms. VILLAGE OF BUFFALO GROVE PR(]C[}RMENT P(]LTC`/ CONFLICTS 0FINTEREST The Purchasing Manager shall not knowingly initiate a purchase order when there is a conflict of interest. All known or suspected conflict o[interest situations shall bo referred to the Office o[the Village Manager. A conflict of interest oniutu when a Village employee or o0]oor (The Village President,the rnornboru o[the Village Board o[Trustees,the Village Clerk,the Village Treasurer,the rnornboru of the Zoning Board of Appeals and the Plan Commission, the Village Manager and his Assistant or Assistants, or the heads of the various departments within the Village) is an officer or director o[ the supplier, or owns five poroont (5Y6) or more of the supplier o[ products and or services tu the Village o[Buffalo Grove. GIFTS AND FAVORS Employees shall not solicit, accept or agree to accept any o#t of any kind from any person or business entity doing business or wishing to do business with the Village, except where said gift is oxprouuh/ permitted by the Illinois State O0]oia|u and Ernp|oyoou Ethics Act A ''gi(t" rnoanu any gratuity, discount, entertainment, hospitality,loan, forbearance, or other tangible or intangiblebern having monetary value including, but not limited to, cash, food and drink, and honoraria for speaking engagements related to or attributable to government employment orthe official position o[anemployee. Employees shall comply with the Illinois State Officials and Employees Ethics Act at all times. The Purchasing Manager may accept uarnp|ou from vendors for the purpose of testing products. 10 | Pa gm PROCUREMENT METHODS PETTY CASH 7o reimburse an employee for small incidental purchases. Appropriate use mf the Petty Cash: Petty cash funds may be used for small incidental nonrecurring cash purchases that do not ox000d $50. The use of petty cash should not be considered as a substitute for regular procurement procedures. Requests for reimbursement using petty cash must be accompanied by the Potty Cash Form (Appendix F). ADVANCE CHECK REQUEST Purpose:7o request a check for payment when an invoice iu not issued. Appropriate use of Advance Check RmqamatforPavmummt Occasionally, a check is needed when there iunoinvoice. These occurrences include,but are not limited to: 1. An employee request for reimbursement for out o[pocket expense. 2. Vendors requiring payment inadvance. 3. Mail in catalog orders requiring pre-payment When the Request for Payment form is used, a cash receipt, a written quote, or a copy of the catalog order must bo submitted au supporting documentation. PURCHASE ORDERS Purpose:To provide a legal document that places an obligation on both the Village and the vendor. When properly endorsed by the Finance Department, the purchase order obligates the l/U|ago to purchase the items listed at the prices stated. The vendor iu obligated according tu the terms and prices stated on the purchase order tu deliver the goods orservices. The purchase order provides specifications for goods and services ordered and shipping and billing information. Appropriate Use mf the Purchase Order. A purchase order must bo used for procurement o[any item or service that requires a written order or any purchase of$100 or more. Purchase orders are not required for prepaid orders. 11 | P � gm VILLAGE OF BUFFALO GROVE PROCURMENT POLICY BLANKET PURCHASE ORDERS Purpose:Blanket purchase orders will be used for repetitive purchases from certain vendors. Appropriate Use of the Blanket Purchase Order. If the Village has entered into contract with a Vendor then a Blanket purchase may be issued for each fiscal year of that contract Departments should follow standard purchase order procedures. For repetitive purchases,rather than issuing a purchase order for each purchase, one purchase order with a dollar limit is issued for a period of up to Three Months. PROCUREMENT CARD PROGRAM A policy has been designed to establish the procedures to be used with the Village of Buffalo Grove's procurement card program. Refer to Appendix E for the complete policy. 12 1 F1 a g SPECIAL EQUIPMENT PROCUREMENT ELECTRONIC EQUIPMENT The IT (Information 7oohno|oovl Department will purchase or authorize the purchase of all computers, peripherals, printers, ooU phones and all other electronics governed by the Communications and Information Technology Policy. The |7 Department will then boresponsible for entering the Purchase Order or instructing the department to enter the information. The IT Department will setup and install equipment in the appropriate departments. ELECTRONIC EQUIPMENT When a copier,large format printer, scanner or multifunction print device requires maintenance, the department should use the contact information located on the device. If you have maintenance or repair need for a cell phone or pager,contact the IT department When maintenance or repair is needed for all other electronic equipment,including but not limited to computers,printers,and telephones,the IT department should be contacted. The |7department will either repair, service or make arrangements for outsourcing the repair. \/EBl[[E3/E0Ol9K4EN7RE9AlR The Central Garage is responsible for the maintenance repair and replacement of all Village owned vehicles. Central Garage personnel will determine when repairs can be made at the garage or should booutuourood. Before outsourcing work,the Fleet Manager will notify the Department director with a recommendation o[the work tobo performed,along with estimates orquotes. 13 | Pa gm BOl[DlNC3 The Public Works division should bo contacted for building repairs. Public Works will access the need or problem and recommend the best course o[action tu correct the pmblemhl Repair services for Village buildings or equipment dhataronotoovorodbvrnahntonanooagroornontu shall bo obtained by the following procedures: 1. An estimate o[the repair work shall bo necessary before proceeding with the repairs. 2. If emergency repairs are needed, Emergency Purchases procedures should be followed. MAINTENANCE AGREEMENTS Departments should follow these guidelines for all maintenance agreements: 1. All maintenance agreements must bo reviewed by the Village Attorney. 2. Maintenance ag7oornontu shall be considered for any equipment/asset that requires frequent adjustment orrepairs. 3. Maintenance agreements are a form of contract Department Directors are not authorized to sign contracts. 4. Copies o[all maintenance agreements will bo filed with the Purchasing Manager. S. Purchase order procedures should bofollowed. 14 | Pa gm ITTN CONTRACTS Contracts range from written contracts described in this section to purchase orders incorporating specifications, which are also contracts. The following purchases will require contracts: 1. Supplies, equipment, apparatus, and material requiring an expenditure of $20,000 and more. Supplies, equipment, apparatus, materials, maintenance, and services requiring an expenditure of less than $19,999.99 do not require a written contract, although a purchase order is preferred. However, a written contract may be used whenever it is deemed necessary and advisable. 2. All maintenance agreements. 3. All leases. 4. Construction and repair (including demolition and renovation) projects requiring an expenditure of $20,000 or more. Construction and repair (including demolition and renovation) projects requiring an expenditure of less than $19,999.99 do not require a written contract However,a written contract may be used whenever it is deemed necessary and advisable. S. Change Orders: Contracts for construction or repair projects can have change orders during the project prior to completion, without going through a new bid process, providing the bidding laws are not evaded. Change orders that exceed 10% of the total contract price must be approved by the Village Board and then should only be approved if it is in the best interests of the Village of Buffalo Grove. Change orders up to $10,000 (but less than 10% of total contract price) can be approved by the Village Manager. While Illinois law and Village policy mandate when written contracts are required,this does not preclude the use of written contracts at any time. It should also be remembered that the need for a contract might vary according to circumstances. MULTI-YEAR CONTRACTS Unless otherwise provided by law,a contract for supplies or services may be entered into for any period of time deemed to be in the best interests of the Village of Buffalo Grove. The term of the contract and conditions of renewal or extension,if any, must be included in the solicitation and funds must be available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds therefor. INFORMAL PURCHASES Any procurement not exceeding$19,999.99 may be made in accordance with the following purchase procedures,provided however,that purchases are not artificially divided so as to create an Informal purchase. INFORMAL BUYING REQUIREMENTS - PURCHASES 0F $1QQ0RLESS The informal buying roquirornontuoovorpurohauou [oroonutruodonorropairvvockandoontraotu forthopurohauoor|oauo'purohauoo[apparatus, uupp|iou, rnatoria|s, oroquiprnontinvo|vingtho expenditure o[$100orless. Pricing may be obtained verbally, or by electronic or written submission. YJo advertisement iu required. The Village of Buffalo Grove standard is to seek three quotes for all purchases that do not qualify for the exception rules. |[the purchase iu for a routine operating good or service,the price comparison needs tubo performed at least once each fiscal year. INFORMAL QUOTE REQUIREMENTS- PURCHASES BETWEEN $1QQ.Q1 &$2500 The informal quote requirements cover contracts for construction or repair work and contracts for dhopurohauoor|oauo'purohauoo[apparatus, uupp|ios, rnatoria|u,oroquiprnontinvo|vingdho expenditure o[$100tu $2,500. Pricing may bo obtained by electronic or written submission. YJo advertisement iu required. The Village of Buffalo Grove standard is to seek three quotes for all purchases that do not qualify for the exception rules. INFORMAL PROPOSAL REQUIREMENTS - PURCHASES BETWEEN $25QQ.Q1 &$19,999.99 The informal proposal requirements cover contracts for construction or repair work and contracts forthopurohauoor|oauo'purohauoo[apparatus, uupp|iou, rnatoria|s, oroquiprnontinvo|vingtho expenditure o[$2,500to $19,999.99. Informal proposals may be obtained by electronic or written submission. No advertisement is required but it is recommended. The Village of Buffalo Grove standard is to seek at least three quotes for all purchases that do not qualify for the exception rules. INFORMAL PURCHASE EXCEPTIONS Exceptions to obtaining price quotes from more than one vendor should be limited to the following, 1. There are a variety o[numerous items in the order,o.g. office supplies. 2. Specifications are sufficiently detailed, or the item being sought is highly unique and/or specialized. 3. Sole source procurement Exceptions must bo noted with the Purchase Order. 16 | Pa gm FORMAL PROCUREMENT REQUIREMENTS Procurement involving the expenditure o[$20,000ormono requires VU|ago8oardapprovai Exception to this rule is provided for only in the case of emergency and is detailed in the section titled Emergency Procurement COMPETITIVE SEALED BIDS The formal bidding requirements cover contracts for construction or repair work and contracts for dhopurohauoor|oauo'purohauoo[apparatus, uupp|ios, rnatoria|u,oroquiprnontinvo|vingdho expenditure o[$20,000ormore. A notice to bidders,"Invitation to Bid"must be advertised locally.The advertisement must include: 1. A general description o[the service or supplies sought after by the Village o[ Buffalo Grove,with details on how to obtain more specific information of those services/supplies. 2. Notification that only sealed bids shall boreviewed. 3. Bonding and Insurance requirements au might bonecessary. 4. Date,time and location o[bid opening. Bid notices should be mailed/e-mailed to Vendors the week the notice is published. Contract documents should be made available to Vendors in the office of the person authorized to administer the bid. If copies of contract documents are expensive to reproduce, a fee may be required by the Village tu create those documents. It should be noted that if the Village has an opportunity to purchase through a joint procurement agency, and it is within reason to believe that a Formal Bid process would not gain additional savings,the Finance department may recommend that the Village Board"Accept 3rd Party Bidsfor and purchase using oh/nt procurement agency b/d,' Bids will be opened at the time and date as advertised on the"Notice to Bidders". Bids received after the time and date specified shall not boaccepted. Both Performance Bonds and Bid deposit checks are acceptable methods of providing earnest payment to show good faith in entering into a Contract with the Village of Buffalo Grove. If the low bidder chooses not to enter into a contract with the Village,the Village shall reserve the right to retain those funds. See Appendix A for more information on the Formal Competitive Sealed Bid Process. The requirement for competitive sealed bids may be waived by a two-thirds vote of the Village Board. 17 | Pa gm VILLAGE OF BUFFALO GROVE PR(]C[}RMENT P(]LTC`/ STANDARD FOR AWARDING BID The standard for awarding contracts is based on the"lowest responsible bidder, or bidders,... taking into consideration quality,performance,and the time specified in the proposals for the performance o[the oontraotu." |[a supplier iu recommended who has not quoted the lowest price, the reasons for selecting the supplier should bodocumented. RE00E373 FOR 9R0903A[3 The formal Requests for Proposal (R.F.P.) process cover contracts for construction or repair work andoontraotu[ordhopurohauoor|oauo'purohauoo[apparatuu,uupp|ios, rnatoria|s, oroquiprnont involving the expenditure o[$20,000 or more. A notice to proposers/offerors, "Request for Proposal"should be advertised locally. The advertisement should include: (a.)A general description o[thouorvi000ruupp|iouuouohtaftorbythoV5Uagoo[8u[hdo Grove,with details on how tu obtain more upooiDo information o[those services/supplies (b.) Notification that only sealed proposals shall boreviewed. (o.) Bonding and Insurance requirements au might bonecessary. (d.) Date,time and location Proposals are due. Requests for Proposals should be mailed/e-mailed to Vendors the week the notice is published. Contract documents should be made available to Vendors inthe o0]oo o[the person authorized to administer the bid. If copies of contract documents are expensive to reproduce,a fee may be required by the Village to create those documents. Proposals will be opened at the time and date as advertised on the "Request for Proposal". Proposals received after the time and date specified shall not boaccepted. Both Performance Bonds and Bid deposit checks are acceptable methods o[providing earnest payment to show good faith in entering into a Contract with the Village of Buffalo Grove. If the low bidder chooses not to enter into a contract with the Village the Village shall reserve the right to retain those funds. See Appendix B. for more information on the Formal Competitive Sealed Proposal Process. B|D/QUQ7ERECQRD3 The Village muutkoop a record o[all bids/quotes uought,butthouo records are not uubioottopublic inspection until the contract has been awarded. 18 | Pa gm EXCEPTIONS 70 BID/ PROCUREMENT REQUIREMENTS SOLE SOURCE PROCUREMENT A contract may be awarded for a supply, service, or construction item without competition when, under regulations,the Finance Director, Purchasing Manager, ora designee o[either determines in writing that there is only one source for the required supply,service,or construction item. Purchases made in this fashion in excess of$20,000 must be brought before the Village Board in the form o[a request for Bid Waiver. EMERGENCY PROCUREMENTS Notwithstanding any other provision of this Policy, the Village Manager, Finance Director or Purchasing Manager may make or authorize others to make emergency procurements when there exists a threat to public health, welfare, or safety under emergency conditions; provided that such ornorgonoy procurements shall be made with such oornpoddon as is practicable under the circumstances. If ornorgonoy purchases are needed during business hours, begin Purchase Order procedures immediately and contact the Purchasing Manager for PO approval. When ornorgonoy purchases occur during non business hours, contact the Purchasing Manager immediately the next business day. A written determination of the basis for the emergency and for the selection of the particular contractor shall bo included in the contract file. The Village Manager must authorize any emergency procurement for$2 0,000 or more. PROFESSIONAL SERVICES Professional services U.o. Legal,Architectural 8c Engineering uorviooularogonoruUvproourod through a Request for Qualifications followed by or in conjunction with a Request for Proposals. The Village will award the contract based upon quality,performance, and the time specified in the proposals for the performance o[the contracts. FUEL PROCUREMENT Due to the speculative nature of fuel purchases and an ever increasing volatile market, The Village Manager working in coordination with the Fleet Manager has been authorized by the Village Board to make purchases in excess of the bid limit in order to secure fuel at the best possible price for the Village o[Buffalo Grove. 19 1 P a gm VILLAGE OF BUFFALO GROVE PROCURMENT POLICY COOPERATIVE PROCUREMENT In some cases the Village has an opportunity to purchase through a joint procurement agency. joint Procurement cooperatives can save the Village of Buffalo Grove money through collective buying power. It may also be the case that other agencies have gone through the Bid process for items or services the Village now seeks. In those cases the Finance department may recommend that the Village Board"Accept 3rd Party Bids forand purchase using ajoint procurement agency bid". The Illinois State Intergovernmental Cooperation Act(5 ILCS 2 2 0) allows for cooperative procurement The link to the full statute can be found here: littp:://www,,iig.,Ta,,g.T,(.:)V/�.e�.,Tjs�.atj(.:)ii/iics/iics,,asp?Acti D:=:92&Chapter1D:=:2 This State Statute is subject to change and the Village of Buffalo Grove does not guarantee that the above provisions accurately reflect the current law. Please consult an attorney with any questions you have regarding the Intergovernmental Cooperation Act 201 F1 a g APPENDIX A FORMAL BID REQUIREMENTS THE |NV|7A7|Qy4 FOR BIDS. The Invitation for Bids is used to initiate a competitive sealed bid procurement. The Invitation for Bids shall include the following: 1. instructions and information to bidders concerning the bid submission requirements, including the time and date set for receipt of bids,the address of the office to which bids are to be delivered,the maximum time for bid acceptance by the Village of Buffalo Grove,and any other special information; 2. the purchase description,ova|uationfooturs, do|ivoryorpor[orrnanoouohodu|o,anduuoh inspection and acceptance requirements as are not included in the purchase description; and 3. the contract terms and conditions, including warranty and bonding or other security requirements, auapplicable. Incorporation by Reference. The Invitation for Bids may incorporate documents by reference provided that the Invitation for Bids specifies where such documents can be obtained. Acknowledgement of Amendments. The Invitation for Bids shall require the acknowledgement of the receipt o[all amendments issued. BIDDING TIME., Bidding time is the period of time between the date of distribution of the Invitation for Bids and the time and date set for receipt of bids. In each case bidding time will be set to provide bidders a reasonable time to prepare their bids.A minimum of 10 days shall be provided unless a shorter time is deemed necessary for a particular procurement as determined in writing by the Procurement Officer. BIDDER SUBMISSIONS. Bid Form. The Invitation for Bids shall provide a form which shall include space in which the bid price shall be inserted and which the bidder shall sign and submit along with all other necessary submissions. BID SAMPLES AND DESCRIPTIVE LITERATURE. 1. "Descriptive literature" means information available in the ordinary course of business which shows the characteristics,construction,or operation of an item which enables the Village of Buffalo Grove to consider whether the item meets the Village's needs. 2. "Bid sample" means a sample to be furnished by a bidder to show the characteristics of the item offered in the bid. 21 | Pa gm VILLAGE OF BUFFALO GROVE PR(]C[}RMENT P(]LTC`/ 3. 8ki samplesor descriptive|beraturomaybono i dvvhonitiun000uoag/tuovak/ato required characteristics 6[the items bid. 4. The Invitation for Bids shall state that bid samples or descriptive|beraturouhou]dnotbo submitted unless expressly requested and that, regardless of any attempt by a bidder to condition the bid,unsolicited bid samples or descriptive literature which are submitted at the bidder's risk will not bo examined ortested,and will not be deemed tn vary any o[the provisions o[the Invitation for Bids. P0BL8C NOTICE., Distribution. Invitations for Bids or Notices of the Availability of Invitations for Bids shall be mailed or otherwise furnished to a sufficient number of potential bidders for the purpose of securing competition. Notices of Availability shall indicate where,when,and for how long Invitations for Bids may be obtained; generally describe the supply,service,or construction desired; and may contain other appropriate information. Where appropriate the Procurement Officer may require payment o[afee ora deposit for the supplying o[the Invitation for Bids. Publication. Every procurement in excess of[$20,000] shall be publicized in one or more of the following ways: 1. ina newspaper of general circulation; 2. in a newspaper of local circulation in the area pertinent to the procurement, 3. in industry media; 4. through electronic mailing lists, S. through the internet,agency web site, or other publicly accessible electronic media,or 6. ina government publication designed for givingpub|ionodoo. Public Availability.A copy o[the Invitation for Bids shall bo made available for public inspection at the Procurement Officer's office or the public information office of such officer's agency. BIDDERS LISTS., Purpose. Bidders lists may be compiled to provide the Village of Buffalo Grove with the narnou of businesses that may be interested in competing for various types of the Village of Buffalo Grove contracts. Unless otherwise provided,inclusion or exclusion of the name of a business does not indicate whether the business is responsible in respect to a particular procurement or otherwise capable of successfully performing a Village of Buffalo Grove contract. Public Availability. Names and addresses on bidders lists shall be available for public inspection, unless a proper exemption to the Illinois Freedom of Information Act applies. PRE BID CONFERENCES., Pre-bid conferences may be conducted to explain the procurement requirements.They shall be announced to all prospective bidders known to have received an Invitation for Bids.The conference should be held long enough after the Invitation for Bids has been issued to allow bidders to become familiar with it,but sufficiently before bid opening to allow consideration of the conference results in preparing their bids. Nothing stated at the pre-bid conference shall change the Invitation for Bids unless aohango is made by written amendment 22 | Pa gm VILLAGE OF BUFFALO GROVE PR(]C[}RMENT P(]LTC`/ AMENDMENTS TO INVITATIONS FOR BIDS., Form.Amendments to Invitations for Bids shall be identified as such and shall require that the bidder acknowledge receipt of all amendments issued. The amendment shall reference the portions of the Invitation for Bids itamends. Distribution.Amendments shall be sent to all prospective bidders known to have received an Invitation for Bids. 7irno|inouu.Amendments shall be distributed within a reasonable time to allow prospective bidders to consider them in preparing their bids. If the time and date set for receipt of bids will not permit such preparation, such time shall be increased to the extent possible in the amendment or,if n000uuarK by telephone and confirmed inthe amendment PRE OPENING MODIFICATION OR WITHDRAWAL OF BIDS., Procedure. Bids may be modified or withdrawn by written notice received in the office designated in the Invitation for Bids prior tu the time and date set for bid opening.An electronic ortelegraphic modification or withdrawal received from the bidder or, as applicable,the receiving telegraph company office prior to the time and date set for bid opening will be effective provided that there is objective evidence, in electronic form or from the receiving telegraph company,confirming that the message was received prior to the time and date set for bid opening. Disposition of Bid Security. If a bid is withdrawn in accordance with this Section,the bid security, if any,shall be returned to the bidder. Records. All documents relating tothe modification or withdrawal o[bids shall be made a part o[ the appropriate procurement file. LATE BIDS, LATE WITHDRAWALS, AND LATE MODIFICATIONS., Definition.Any bid received after the time and date set for receipt of bids is late.Any withdrawal or modification of a bid received after the time and date set for opening of bids at the place designated for opening iulate. Notice. Bidders submitting late bids that will not be considered for award shall be so notified as soon aupracticable. Records. Records equivalent to those required inthe Section titled"Pro'Opening Modification or Withdrawal of Bids,Records"shall be made and kept for each late bid,late modification, or late midxdrammi RECEIPT, OPENING, AND RECORDING OF BIDS., Receipt Upon its receipt, each bid and modification shall be time-stamped but not opened and shall bo stored ina secure place until the time and date set for bid opening. Bids submitted through electronic means shall be received in such a manner that the time and date of submittal, along with the contents of such bids shall be securely stored until the time and date set for bid opening. Opening and Recording. Bids and modifications shall be opened publicly,in the presence of one or more witnesses, at the time, date,and place designated in the Invitation for Bids.The name of each 23 | Pa gm VILLAGE OF BUFFALO GROVE PR(]C[}RMENT P(]LTC`/ bidder,the bid price,and such other information auio deemed appropriate bv the Procurement Officer,shall be read aloud orotherwise made available. Such information also shall be recorded at the time of bid opening; that is,the bids shall be tabulated or a bid abstract made. The names and addresses of required witnesses shall also be recorded at the opening. The opened bids shall be available for public inspection except to the extent the bidder designates trade secrets or other proprietary data tu be confidential as set forth in the Subsection titled"Confidential Data"o[this Section, or as otherwise provided by law. Information marked Confidential shall be readily separable from the bid in order to facilitate public inspection of the no n-confidential portion of the bid. Price, makes and model or catalogue of the items offered,deliveries,and terms of payment shall be publicly available at the time of bid opening regardless of any designation to the contrary. Bids submitted through electronic means shall be received in such a manner that the requirements of this section can bo readily met Confidential Data. The Procurement Officer shall examine the bids to determine the validity of any requests for nondisclosure of trade secrets and other proprietary data identified in writing. If the parties do not agree as to the disclosure of data,the Procurement Officer shall inform the bidders in writing what portions o[the bids will bo disclosed and that,unless the bidder protests under Article 9 (Legal and Contractual Remedies) of the Village of Buffalo Grove Procurement Code the bids will be disclosed.The bids shall be open tn public inspection subject tu any continuing prohibition on the disclosure o[confidential data. BID EVALUATION AND AWARD The standard for awarding contracts is based on the"lowest responsible bidder, or bidders,... taking into consideration quality,performance,and the time specified inthe proposals for the performance o[the oontraotu." |[a supplier iu recommended who has not quoted the lowest price, the reasons for selecting the supplier should bodocumented. Product Acceptability. The Invitation for Bids shall set forth any evaluation criterion to be used in determining product acceptability. It may require the submission of bid samples,descriptive literature,technical data,or other material. |t may also provide for accomplishing any o[the following prior tu award: (a) inspection or testing of a product prior to award for such characteristics as quality or workmanship; Uhl examination o[such elements auappearance, finish,taste, or feel; or (o) other examinations to determine whether it conforms with any other purchase description requirements. The acceptability evaluation iu not conducted for the purpose o[determining whether one bidder's item is superior to another but only to determine that a bidder's offering is acceptable as set forth in the Invitation for Bids.Any bidder's offering which does not meet the acceptability requirements shall bo rejected aunonresponsive. 24 | Pa gm VILLAGE OF BUFFALO GROVE PR(]C[}RMENT P(]LTC`/ Determination o[Lowest Bidder. Following determination of product acceptability,J any io required,bids will be evaluated to determine which bidder offers the lowest cost to the Village of Buffalo Grove in accordance with the evaluation criteria set forth in the Invitation for Bids. Only objectively measurable criteria which are set forth in the Invitation for Bids shall be applied in determining the lowest bidder. Examples o[such criteria include,but are not limited to, transportation cost,and ownership or life oydo cost formulas. Evaluation factors need not be precise predictors of actual future costs,but to the extent possible such evaluation factors shall: (a) be reasonable estimates based upon information the Village of Buffalo Grove has available concerning future use; and (b) treat all bids equitably. Restrictions. Nothing in this Section shall be deemed to permit contract award to a bidder submitting a higher quality item than that designated in the Invitation for Bids if such bidder is not also the lowest bidder. Further,this Section does not permit negotiations with any bidder. LOW TIE fY{DS'. Definition. Low tie bids are low responsive bids from responsible bidders that are identical in price and which meet all the requirements and criteria set forth in the Invitation for Bids. Award.Awards shall not be made by drawing lots, or by dividing business among identical bidders. The Purchasing Manager shall bring before the Village Board a request to reject all Bids and negotiate with the Low Tie Bidders. Records shall be made of all Invitations for Bids on which tie bids are received showing at least the following information: (a) the identification number o[the Invitation for Bids; (b) the supply, service,or construction item; and (da listing o[all the bidders and the prices submitted. A copy o[each such record shall bo sent to the Village Clerk's Office DOCUMENTATION OfrAHIAQD. Following award, a record showing the basis for determining the successful bidder shall be made a part o[the procurement file. 25 | Pa gm APPENDIX B COMPETITIVE SEALED PROPOSALS. Conditions for Use. (u) A contract may be entered into by competitive sealed proposals when the Village Manager, the Finance Director, ora designee o[either above determines invvrUing,,that the use o[ competitive sealed bidding is either not practicable or not advantageous to the Village of Buffalo Grove. (b) Contracts for the douign'bui|d, douign'buUd'operate rnaintain,ordouign'buUd'Dnanoo' oporato'rnaintainprojootdo|ivoryrnodhoduuha||boonterodintobyoornpoddvouoa|odpropoua|u. QE0DES7frOQPQOPOSALS'. Proposals shall bo solicited through a Request for Proposals. Public Notice. Adequate public notice o[the Request for Proposals shall bo givenindhouarno manner au provided in Formal Bid Requirements, Public Notice. Receipt o[Proposals. Proposals shall be opened so as to avoid disclosure of contents to competing offerors during the process o[negotiation. A Register o[Propoua|uuha||boproparodina000rdanoo with regulations,and shall be open for public inspection after contract award. Evaluation Factors. The Request for Proposals shall state the relative importance of price and other factors and uub[aotors, i[any. Discussion with Responsible Offerors and Revisions toProposals. Au provided in the Request for Proposals, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of,and responsiveness to,the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals,and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions,there shall be no disclosure of any information derived from proposals submitted by competing offerors. Award. Award shall be made to the responsible offeror whose proposal conforms to the solicitation and is determined in writing to be the most advantageous to the Village of Buffalo Grove taking into consideration price and the evaluation factors set forth in the Request for Proposals and any related Amendments. YJo other factors or criteria shall bo used in the evaluation. The contract file shall contain the basis on which the award iumade. Debriefings. The Procurement Officer ivauthorized to provide debriefings that furnish the basis for the source selection decision and contract award. When Competitive Sealed Bidding is Not Practicable. Competitive sealed bidding is not practicable unless the nature of the procurement permits award to a low bidder who agrees by its bid to 26 | Pa gm VILLAGE OF BUFFALO GROVE PR(]C[}RMENT P(]LTC`/ perform without condition or reservation hn accordance with the purchase description,doUvoryor performance schedule,and all other terms and conditions of the Invitation for Bids. Factors to be considered in determining whether competitive sealed bidding is not practicable include: (a) whether the contract needs tubo other than a fixed-price type; (b) whether oral or written discussions may need to be conducted with offerors concerning technical and price aspects o[their proposals; (c) whether offerors may need to be afforded the opportunity to revise their proposals, including price; (d) whether award may need to be based upon a comparative evaluation as stated in the Request for Proposals of differing price,quality,and contractual factors in order to determine the most advantageous offering to the Village of Buffalo Grove. Quality factors include technical and performance capability and the content o[the technical proposal; and (e)whether the primary consideration in determining award may not be price. When Competitive Sealed Bidding iu Not Advantageous.A determination may bo made tnuse oornpoddvo sealed proposals i[itiu determined that itiu not advantageous tu the Village of Buffalo Grove,even though practicable,tn use competitive sealed bidding. Factors tnbo considered in determining whether competitive sealed bidding is not advantageous include: (a) if prior procurements indicate that competitive sealed proposals may result in more beneficial contracts for the Village o[Buffalo Grove; and (b) whether the factors are desirable in conducting a procurement rather than necessary; if they are,then such factors may be used to support a determination that competitive sealed bidding is not advantageous. DETERMINATIONS'. The Village Manager or the Finance Director may make determinations by category of supply, service,infrastructure facility,or construction item that it is either not practicable or not advantageous to the Village of Buffalo Grove to procure specified types of supplies,services, or construction by competitive sealed bidding. Procurements of the specified types of supplies, services, or construction may then be made by competitive sealed proposals based upon such determination.The officer who made such determination may modify or revoke it at any time, and such determination should be reviewed for current applicability from time to time. CO&/TE&/TOfr TREQE0DES7frOQ PROPOSALS'. The Request for Proposals shall be prepared in accordance with Section (The Invitation for Bids)provided that it shall also include: 27 | Pa gm VILLAGE OF BUFFALO GROVE PR(]C[}RMENT P(]LTC`/ (a) astatement that discussions may bo conducted with offerors who submit proposals determined to be reasonably susceptible of being selected for award,but that proposals may be accepted without such discussions; and Mbl a statement o[when and how price should bosubmitted. PROPOSAL PREPARATION TIME. Proposal preparation time shall be set to provide offerors a reasonable time to prepare their proposals.A minimum of 10 days shall be provided unless a shorter time is deemed necessary for a particular procurement as determined in writing by the Procurement Officer. FORM OfrPQOPOSAL. The manner in which proposals are to be submitted, including any forms for that purpose, may be designated aua part o[the Request for Proposals. PUBLIC NOTICE. Public notice shall be given by distributing the Request for Proposals in the same manner provided for distributing an Invitation for Bids USE OfrfY{DDEQS' L{S7,5. Bidders lists compiled and maintained in accordance with (Bidders Lists) may serve as a basis for soliciting competitive sealed proposals. PRE PROPOSAL CONFERENCES'. Pre-proposal conferences may be conducted in accordance with (Pre-Bid Conferences).Any such conference should bo held prior to submission o[initial proposals. AMENDMENTS' TOQE0DES7,5frOQPQOPOSALS'. Amendments to Requests for Proposals may be made in accordance with (Amendments to Invitations for Bids) prior to submission o[proposals. MODIFICATION OR WITRDQAHIAL OfrPQOPOS'AI.S'. Proposals may be modified or withdrawn prior to the established due date in accordance with Section (Pre-Opening Modification orWithdrawal of Bids). For the purposes o[this Section and Section (Late Proposals,Late Withdrawals,and Late Modifications),the established due date is either the time and date announced for receipt o[proposals or receipt o[rnodiDoadonuto proposals,if any; or i[discussions have begun,itiu the time and date by which best and final offers must be submitted,provided that only offerors who submitted proposals by the time announced for receipt o[proposals may submit best and final offers. LA TE PROPOSALS, LA TE WITRDQA VIALS, AND LA TE MOD{f7CAT70NS'. Any proposal,withdrawal,or modification received after the established due date at the place designated for receipt of proposals is late. (Modification or Withdrawal of Proposals) for the definition of"established due date."They may only be considered in accordance with (Late Bids, Late Withdrawals, and Late ModiDoadonu). 28 | Pa gm VILLAGE OF BUFFALO GROVE PR(]C[}RMENT P(]LTC`/ QECEIPTAND REGISTRATION OFPQOPOSALS. Proposals shall not be opened publicly but shall bo opened in the presence of two or more [procurement] officials. Proposals and modifications shall be time-stamped upon receipt and held ina secure place until the established due date.After the date established for receipt o[propoua|s, a Register of Proposals shall be prepared which shall include for all proposals the name of each offeror,the number of modifications received, if any,and a description sufficient to identify the supply, service, or construction item offered.The Register of Proposals shall be open to public inspection only after award of the contract. Proposals and modifications shall be shown only to the Village o[Buffalo Grove personnel having a legitimate interest inthem. EVALUATION OfrPQOPOSALS. Evaluation Factors in the Request for Proposals.The Request for Proposals shall state all of the evaluation factors (and subfactors),including price,and their relative importance. Evaluation.The evaluation shall be based on the evaluation factors set forth in the Request for Proposals. Numerical rating systems may bo used but are not required. Factors not specified inthe Request for Proposals shall not boconsidered. Classifying Proposals. For the purpose o[conducting discussions proposals shall boinitially classified as: (a) acceptable; (b) potentially acceptable,that is, reasonably susceptible of being made acceptable; or (o) unacceptable. Offerors whose proposals are unacceptable shall be so notified promptly. Proposal Discussions with Individual Offerors. "Offerors" Defined. "Offerors" includes only those businesses submitting proposals that are acceptable or potentially acceptable. The term shall not include businesses who submitted unacceptable proposals. Purposes o[Discussions. Discussions are held to: (a) promote understanding of the Village of Buffalo Grove's requirements and the offerors' proposals; and (b) facilitate arriving at a contract that will be most advantageous to the Village of Buffalo Grove taking into consideration price and the other evaluation factors set forth in the Request for Proposals. Conduct o[Discussions. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussions and revisions of proposals.The Procurement Officer should establish procedures and schedules for conducting discussions. If during discussions there is a need for any substantial clarification o[orchange in the Request for Proposals,the Request shall bo amended to 29 | Pa gm VILLAGE OF BUFFALO GROVE PR(]C[}RMENT P(]LTC`/ incorporate such clarification orchange.Auction techniques (revealing one offenor'u price to another) and disclosure o[any information derived from competing proposals are prohibited.Any substantial oral clarification of a proposal shall be reduced to writing by the offeror. Best and Final Offers. The Procurement Officer shall establish a common date and time for the submission o[best and final offers. Best and final offers shall be submitted only once; provided, however,the Chief Procurement Officer or the head of a Procurement Agency may make a written determination that it is in the Village of Buffalo Grove's best interest to conduct additional discussions or change the Village of Buffalo Crovo'u requirements and require another submission o[best and final offers. Otherwise, no discussion o[orchanges in the best and final offers shall be allowed prior to award. Offerors shall also be informed that i[they do not submit anotice of withdrawal or another best and final offer,their immediate previous offer will be construed as their best and final offer. 30 | Pa gm APPENDIX C VILLAGE OF BUFFALO GROVE PUBLIC CONTRACT STATEMENTS The Village of Buffalo Grove is required to obtain certain information in the administration and awarding of public contracts. The following Public Contract Statements shall be executed and notarized. PUBLIC CONTRACT STATEMENTS CERTIFICATION OF CONTRACTOR/BIDDER In order to comply with 720 Illinois Compiled Statutes 5/33 E-1 et seq., the Village of Buffalo Grove requires the following certification be acknowledged: The below-signed bidder/contractor hereby certifies that it is not barred from bidding or supplying any goods,services or construction let by the Village of Buffalo Grove with or without bid,due to any violation of either Section 5/33 E-3 or 5/33 E-4 of Article 33E,Public Contracts,of the Chapter 720 of the Illinois Compiled Statutes,as amended. This act relates to interference with public contracting,bid rigging and rotating,kickbacks,and bidding. CERTIFICATION RELATIVE TO 65 ILCS 5/11-42.1.1 In order to comply with 65 Illinois Complied Statutes 5/11-42.1.1,the Village of Buffalo Grove requires the following certification: The undersigned does hereby swear and affirm that: (1)it is not delinquent in the payment of any tax administered by the Illinois Department of Revenue or(2)in contesting in accordance with the procedures established by the appropriate revenue Act,its liability for the tax or the amount of the tax. The undersigned further understands that making a false statement herein: (1)is a Class I Misdemeanor,and(2)voids the contract and allows the Village to recover all amounts payable to it under the contract. CONFLICT OF INTEREST The Village of Buffalo Grove Municipal Code requires the following verification relative to conflict of interest and compliance with general ethics requirements of the Village: The undersigned supplier hereby represents and warrants to the Village of Buffalo Grove as a term and condition of acceptance of this (bid or purchase order)that none of the following Village Officials is either an officer or director of supplier or owns five percent(5%) or more of the Supplier: the Village President,the members of the Village Board of Trustees,the Village Clerk,the Village Treasurer, the members of the Zoning Board of Appeals and the Plan Commission,the Village Manager and his Assistant or Assistants,or the heads of the various departments within the Village. If the foregoing representation and warranty is inaccurate, state the name of the Village official who either is an officer or director of your business entity or owns five percent(5%)or more thereof: (Official) Print Name of Contractor/Bidder/Supplier Signature Title Subscribed and Sworn to before me this day of ,20 Notary Public Notary Expiration Date 311F" „ .. VILLAGE OF BUFFALO GROVE PROCURMENT POLICY APPENDIX D QUALIFIED VENDOR REGISTRATION GENERAL BUSINESS INFORMATION FEIN or SSN (circle one and supply number): Legal Organization Name: Doing Business as: PAYMENT ADDRESS City: 1 State: 1 ZIP Code: Contact Name: Telephone: Fax: E-mail: PRIMARY ORGANIZATION ADDRESS Primary business address: ZIP Code: City: State: Organization Contact: Telephone: Fax: E-mail:1 How long at current address? Has there been a change in ownership in the last Date Business established: 2 years: Type: (circle one Contractor Vendor Professional Services 1 Primary Business Function: Professional Registrations I License number 32 F1 a g CLIENT/TRADE REFERENCES Company .name Ad... dress: I City State: ZIP Code: Pho ne: Fax: E-mail: Contact Name: Company name: Address: St Cit.. ... .... .... y: ate: ZIP Code: Phone: Fax: E-mail: Contact Name: Company name: Address: Cit.. St... .... .... y: ate: ZIP Code: Fax E-mail:Phone: Contact Name: AGREEMENT j 1. All payments will be made per the Prompt Payment Act (50 ILCS 505/1 et seq). 2. By submitting this application, you authorize the Village of Buffalo Grove to make inquiries into the client/trade references that you have supplied. 3. The undersigned supplier hereby represents and warrants to the Village of Buffalo Grove as a term and condition of acceptance of future (bid or purchase order) that none of the following Village Officials is either an officer or director of supplier or owns five percent (5%) or more of the Supplier: the Village President, the members of the Village Board of Trustees, the Village Clerk, the Village Treasurer, the members of the Zoning Board of Appeals and the Plan Commission, the Village Manager and his Assistant or Assistants, or the heads of the various departments within the Village. SIGNATURES Title: Date: Suubu a ou a *I ffi Lhi a �: oN II IF's II of a niu 'VQ p'ri�umi,p;ri uM��uuuuuuu�d;',uuuuu uu,''�um�, duu u:+ M uu a uoi L +,, a,riuovi fi'ovu�u��uu V u rn un un." �'Ib �`Il� u �wriu �i,uu�i1�..� �� uu' u�uum;�ri'u � �. ��' ��,�;�ri�Hdut� ' :'uuu_u '��;�� i1)"9ju1ib. APPENDIX PROCUREMENT CARD POLICY PURPOSE This policy has been designed to establish the procedures to be used with the Village of Buffalo Grove's procurement card program. This policy intends to accomplish the following. - Establish appropriate internal controls over the purchase card process to ensure cards are only used for authorized purposes. - Ensure the Village bears no legal liability from inappropriate use of procurement cards. - To provide a convenient source of funding for employees who must procure for the Village. - Verify payments for purchases are made on a timely basis to minimize finance charges. BACKGROUND The Village has used various methods to process the purchase of goods and services. Traditional procurement utilizing a purchase order or check request has worked well in the past for repetitive vendor invoicing and acquisitions of large ticket items where timing is not critical in the invoicing and payment process. The concern is the use of petty cash, advanced check requests, or employee reimbursement requests in the accounts payable process. These non traditional methods of procurement are due primarily to the timing of the request in light of the next warrant cycle or that the form of payment (check) is occasionally not accepted by merchants. To promote vendor acceptance, improve operational efficiency, and tighten the controls on the use of petty cash and advanced checks the Finance Department is initiating the procurement card program. This program has a number of unique controls that ensure that the card can be used only for specific purposes and within specific dollar limits. GENERAL INFORMATION - The procurement card is a tool for designated Village employees to use when making low-dollar purchases for official business needs. - Each purchase card will include both the individual cardholder and corporate name. However the purchase card issuer will not maintain individual cardholder credit records. - A signed agreement with the Village prior to receiving the card makes the cardholder responsible for any misuse of the card. Failure to comply with these procedures will result in revocation of the card and fraudulent misuse may result in termination of the cardholder. - Purchase cards must be returned to the Finance department upon leaving the Village's employment. 3 4 1 II I a. g �i 1� AUTHORIZATIONS AND SPENDING LIMITS Each indiVidual's card will have monthly maximum spending limits. Additional restrictions exist on the type of purchase each employee can use the purchase card for,based on the employee's need. A Procurement Card is NOT: - a means to avoid appropriate procurement or payment procedures - a card to access cash or credit (ATM) - for items and services for personal,non-business use - for tax reportable services (any vendor that is NOT incorporated is subject to the 1099 reporting process for each calendar year) The following list covers purchases for which purchase card use is expressly prohibited: - Alcoholic Beverages - Capital Equipment - Cash Advances (ATM Machines) - Computer Hardware and Software (with the exception of the IT department or department technology liaison) - Legal Services - Temporary Help - Clothing or other personal items - Telephone calls RESPONSIBILITIES OF CARDHOLDERS - The card must NOT be used for personal transactions. - The card must NOT be loaned to others. - Splitting of purchases into multiple parts in order to circumvent limits on the card is prohibited. - The cardholder is responsible for all inappropriate charges. - The cardholder shall not accept cash in lieu of a credit to the Procurement Card account. - The card must be kept in a secure location at all times. - The Village is a tax-exempt entity. Each cardholder should do their best to ensure that the Village is not charged sales tax. DEPARTMENT CARDS 35 - The card must be kept in a secure location at all times. - All users must have a signed "Cardholder Agreement for Authorized Use of Purchase Card" on file in the Finance Department_ REPORTING LOST OR STOLEN CARDS - Cardholders must notify the Bank and Finance Department immediately when a card is lost or stolen. - Report a lost or stolen card or other emergency situations, by calling the Bank's Customer Service number. REQUIRED RECEIPT DOCUMENTATION - Receipts must be obtained with all purchases,identifying the date and itemized list of all purchases. - Receipts should be attached to a"Record of Purchase Card Use Form"and coded to the appropriate expenditure/expense accounts. The completed "Record of Purchase Card Use Form" should then be signed and attached to the billing statement prior to turning it in to the Department Director for review and signature. - The Department Director is responsible for reviewing all charges and receipts prior to signing the "Record of Purchase Card Use Form"and returning all documentation to the Finance Department. - Forward the signed "Record of Purchase Use Form" with the statement and attached original receipts, to the Finance Department within five business days of receiving the statement. All late charges incurred due to cardholder delay in reporting purchases will be charged to that cardholder's department. - Only signed and properly documented payment requisitions will be accepted. - The Village Manager will review the Village-wide statement prior to payment. THE FOLLOWING ARE ACCEPTABLE RECEIPTS - Credit Card Orders: charge slip with only the total does not qualify as an original receipt. A receipt needs to include an original record of what was purchased.Any exceptions must be documented. - Pick Up Orders:Attach the detailed cash register receipt. - Phone/Fax Orders: original invoice or packing slip providing the packing slip shows what was purchased and pricing - Internet Orders: Print and attach a copy of the order screen or confirmation screen that shows what was purchased and the dollar amount. - Registration Fees: Attach the registration form. The form must show who the registration is for, the registration amount and what was included in the registration fee. - Documentation Not Available: If unable to obtain any type of documentation, write the receipt up by hand. Include the date of the purchase,vendor,items and price. Also attach a brief explanation as to why the original receipt is not attached. This is the exception rather than the rule, individuals not obtaining adequate support multiple times may have their card revoked. 36 � II" ,. �„ � RETURNS, CREDITS OR DISPUTED ITEMS - Returns: A credit should be issued for any item that the supplier has approved for return. The credit will appear on a subsequent statement. Any item purchased with the card that is returned must be returned for credit. Do not accept a refund in cash or check format. - The cardholder is responsible for following up with the merchant or bank on any erroneous charges, disputed items or returns as soon as possible. Disputed billings can result from failure to receive the goods charged, defective merchandise,incorrect amounts, duplicate charges or credit not processed. - If you have a problem with a purchased item or a billing resulting from use of the procurement card, you should first try to reach a resolution with the supplier that provided the item. - If a disputed charge can not be resolved with the supplier, complete the Cardholder Statement of Questioned Item Form attached. The written dispute notice must be received by the bank within 30 days of the date of the bank statement. - Credits: request from the merchant that a credit be placed on your card account. Obtain a receipt for the credit like any other purchase documentation. RESPONSIBILITIES OF FINANCE DEPARTMENT - Receive and review the Village's combined billing statement. When the statement is received the majority of the receipts should already be in to the department. - Review information submitted by cardholder. Match receipts with statement of account. All receipts will be compared to the purchase record submitted by the cardholder. - Verify purchases are for use in Village business. Sign the cardholder's payment requisition to certify that purchases were for Village business purposes. - Verify travel-related charges have been authorized by the Village Manager. - Provide monthly statements of accounts to individual cardholders for their records. - Make payments on a timely basis to ensure the Village does not accrued finance charges. - If the Finance department cannot verify that the purchase made was necessary and for official use, the purchase will be reviewed by the Village Manager. If it is determined the purchase was not appropriate,then the cardholder must provide a credit voucher proving the items have been returned for credit or a personal check for the full amount of that purchase. - Annual inventory of purchase cards: On an annual basis,the Finance department will verify that each cardholder is in physical possession of their assigned card. 37 � II" ,. �„ � Cardholder Agreement for Authorized Use of Purchase Card have read and do understand the Village's Procurement Card Policy. 2) I further agree to abide by the terms and conditions in that policy and understand that this card is subject to revocation if I fail to act in accordance with the policy. 3) I agree that if I engage in fraudulent activity or violate the terms and conditions of the Village's Procurement Card Policy,as amended from time to time, I will fully reimburse the Village for all such transactions 4) I understand that that if I engage in fraudulent activity or violate the terms and conditions of the Village's Procurement Card Policy, as amended from time to time,I will be subject to disciplinary action that may include termination. 5) Upon my termination or resignation as an employee with the Village, I agree to return the purchase card to the Finance Department and will not attempt to use the card after my employment is completed. Printed name: Signature: Date: 381F" a „ .. Cardholder Addition or Change Request Form TO: Finance Department FROM: SUBJECT: Request for Procurement Card or Change of Status ❑ Request the following employee by authorized a Village Purchase Card. ❑ Request the following employee have their Village Purchase Card limit(s) changed. ❑ Request the following employee have their MCC Spending Code changed to enable purchase of the following kind: (list type) Full Name: Signature: Title: Single Purchase Limit(Not to exceed$X,XXX.XX): $ Monthly Cycle Limit(Not to exceed$X,XXX.XX): $ ❑ Cancel/Reason: Date: Department Director Date: Finance Director Date: Village Manager 391II" a. g � Cardholder Statement of Questioned Transaction Cardholder name: Date of purchase: (print) Vendor name: The following item(s)listed on the billing statement is disputed: Reason: Provide information as to why item(s) do not meet your requirements. Indicate actions requested of merchant, reasons merchant refused to correct dispute, and any other information that is available to assist the Finance Department to negotiate the dispute: Action Requested: • Return item and obtain credit • Exchange for same item • Exchange for different model,brand,etc. -with applicable deduction/increase in cost(this action will require prior approval from cardholder if cost increase is a result) Other comments: 40 g � VILLAGE OF BUFFALO GROVE PROCURMENT CARD POLICY Record of Purchase Card Use Form Cardholder name: Description of Purchase Date Vendor Account Amount Ensure all original receipts are attached to this form Cardholder signature: Supervisor signature: Date received by Finance Department: Finance Department signature: 41 11 a e KTA APPENDIX F PETTY CASH REIMBURSEMENT REQUEST Note:Reimbursements from petty cash cannot exceed$50.00. .................................................................................................................................................................... .............. ..................................................................................................................................................................................................................................... *A receipt for goods purchased,must be attached to this form. 42 111 a av Discussion -Amending Muncipal Code 13.04.250 to Change 2-B Fees Related to Water Service Reinstatement Overview Staff is proposing to add two fees to the Village of Buffalo Grove's Municipal Code that will assist the utility billing department to better manage delinquent water utility accounts. Attachments Water Shut off Fees.pdf Trustee Liaison Staff Contact Scott D Anderson, ....M.o�n.d�a............Fe.b�r�uarY .............2�5......2�0.1.�3....................................................................................................D.��s�cu�s�s.�.o.n...._...Ite.m....�....�._�B........................................................................................................................................................ Y, OF DATE: February 18, 2013 TO: Dane Bragg,Village Manager FROM: Scott Anderson, Finance Director RE: Amendment to Municipal Code—Water System Shut off and NSF Fees Staff is proposing to add two fees to the Village of Buffalo Grove's Municipal Code that will assist the utility billing department to better manage delinquent water utility accounts. With the recent conversion of utility billing data to New World Systems and the processing of four billing cycles staff is ready to move forward with two initiatives. The first is to start building the Village's on-line website portal for viewing account history and offering the ability to pay by credit card. The second initiative, the subject of this memorandum, is to add two tools that will assist staff in managing utility accounts receivable. The change to New World Systems has given staff the ability to manage delinquent accounts with much more granularity than the previous software. Enhancements include automatic flagging of delinquent accounts, ability to add notes to accounts to document customer discussions, and the functionality to run on demand account aging reports. With more data, staff's goal is to reduce the number of accounts and balances that are in arrears. Arrears balances (about $75,000) represent about seven percent of the receivable balance. One of the obstacles in managing delinquent accounts was not having a credit payment option. That hurdle will be cleared in the next few months. The next step is to strengthen the water shut off process. The Village's process is illustrated below using the date of the most recent billing. � mlll III� ; � it 111 w� mllllll III II" �Iluyl�ll��I�I�VIIII�II°ui V^ Im 11�1�91 III lUi� I�u �IIII m �. m. Ili mu• i�lu.m. uim u IIIII� 9III�III�i •�u•� .mm�� s � � � Page 1 of 3 To summarize the chart above, the customer is billed and has roughly twenty-one days to pay. The account is delinquent if not paid by the due date and assessed a ten percent penalty. About ten days later a delinquent notice is sent with a shut-off date that is sixty days in the future. Once the account is in shut-off status, the water department places a red hanger on the front door of the residence signifying impending service disconnection. The red door hanger is extremely effective in reducing the amount of accounts that are shut off. The reason for the significant time gap between the delinquent notice and shut off tag (about sixty days) is for two reasons. The first is that due to the number of employees in the water department, the process for tagging and service disconnections must occur right after all the meter reads and billing. There is a three or four day window before accounts are read for the next billing cycle. In order to coincide with that window, the disconnection process must be either thirty or sixty days from the delinquent bill. The second reason is that If the Village were to shift to thirty days, the number of accounts in pre-shut off status would be much higher necessitating more staff time to deliver red tags. The utility billing clerk works with delinquent customers to avoid disconnection by establishing, if appropriate, payment plans. Most of the accounts that are disconnected make no attempt to contact the Village. The discontinuation of service is governed by municipal code section 13.04.250. Staff is recommending a change to section A noted below. Service may be discontinued when any payment is past due. Service may not be resumed until payment of all charges, and a twenty-five-dollar reconnection fee. There shall be one automatic waiver of the reconnection fee for each user/consumer annually. Staff requests the elimination of the one automatic waiver of reconnection fee annually and to increase the reconnection fee from $25 to $50.The disconnection of service is the result of ignoring a late notice and failing to contact the Village over a period of 90 days to discuss the account. The process and net result are solely within the customer's power to remedy. Staff also recommends the addition to Section A of an after hours fee for any demands to restore service outside water department business hours. Any requests for service restoration after 4 pm on weekdays, and all day Saturday and Sunday, would be deemed as after hours. Customers are instructed to go to the police department to make payment after the close of business to restore service. A water department employee is called in for a minimum of two hours of overtime.The total employee cost is approximately $100. It is staff's belief that if a customer demands that their service be restored outside of business hours then the cost should be borne by the customer. The following chart shows what some other communities are charging for like services. Water Turn-Off Fee IDuring Water T'urrr-Garr Fee IDuring Water T'urrr-Garr Fee fitter Community Business Hours Business Hours Hours Arlington Heights $50 $50 $50 Barrington $0 $`O $`O Bloorningdalr: $40 $60 $120 Buffalo Grove $0 $�D 1,1.2'00 Deerfield $CD $25 $50 E-vansGon $0 $25 $75 1o'ffirnan If2states $:D $15 $40 Highland Dark $`O $`O $`O Lake(Forest $:D $75 $100 Lombard $0 $`O $90 Page 2 of 3 Moline $0 $40 $85 Wes $0 $SO $SO Northbrook $ro $ro $zzs Schaumburg $u $su $7s St.Charles $o $95 $95 Wheeling $u $sn $11S The average turn on fee of the listed communities is $53 for water turn-on fees and $96 for after hours service. Some communities (Arlington Heights, Bloomingdale, Highland Park and Northbrook) charge both a turn-off and turn-on fee. Although the Village recognizes financial hardship, the village should be able to recover some of the costs associated with water department staff turning off and then reinitiating the service. Other expenses include the time and effort taken to send delinquent bills and drive to the home to the tag the residence. On average, there are about eighty water service disconnections each year due to non'payment. About twenty percent (16) are after hours call outs. The last proposal to assist in utility receivable collections, and other receivable functions, is to institute a non-sufficient funds fee (NSF) of $25. Currently the Village cannot recover any costs associated with returned checks. The charge is not intended to generate revenue rather itismeant to offset bank fees and employee time to manage accounts. If these proposals are accepted, the philosophy of working with customers with economic hardships will not change. Staff is requesting additional tools to help manage, and recover some costs of delinquent utility accounts. Page 3of3 Status Update- New World Systems Utility Billing On-Line 2-C Credit Card Acceptance Overview Staff will provide an overview of the efforts to establish an on-line presence for on-line credit card acceptance. One item for additional discussion will be the decision to absorb or pass-on processing fees. Attachments NWS Credit card.pdf Trustee Liaison Staff Contact Trustee Berman Scott D Anderson,Finance&GS ....M.on.da............Fe.bruarY .............25......20.1.3....................................................................................................Discussion .'sc uss'on _Item2_C Y, VIIJILAGIE OF BUIIIF IIP ID GROVE DATE: February 20, 2013 TO: Dane Bragg,Village Manager FROM: Scott Anderson, Finance Director RE: Credit Card Payment Options At this time, staff is seeking direction from the Village Board on two items. The first is whether to absorb the cost the village will incur by offering credit card payments as an option. The second is to get direction from the Board on which fees/fines should have credit card payment as an option. At the conclusion of this memo is a status of the implementation of infrastructure needed to make online bill payment available. Online Utility Billing Payments. The first online credit card payment option ready to be implemented is utility billing payments. Therefore, the information provided in this section only relates to utility billing payments. For the sake of discussion it is anticipated that the fee will be between 2 and 2.5 percent of the charge. Because the transaction is taking place online, a convenience fee can be used to recover the cost. Convenience fees are charges levied for the privilege of paying for a product or service using an alternative payment channel, or a payment method that is not standard for the merchant. Technically the customer is not paying for the privilege of using the credit card rather it is for the privilege of using the on-line option. Although convenience fees cannot be added to in-person transactions, governments have the ability to add surcharges to face-to-face sales. The ability to charge convenience fees or surcharges is governed by 50 ILCS 345/25 -Payment of fees by cardholders - that states that villages may impose a convenience fee or surcharge upon a cardholder making payment by credit card or debit card in an amount to wholly or partially offset, but in no event exceed, the amount of any discount or processing fee incurred by the local governmental entity. The fees associated with accepting credit if the following percentage of customers migrated to that payment option would be; 5% $11,250 10% $22,500 15% $33,750 20% $45,000 Represented above is a gross cost and will be reduced by an ability to capture more in delinquent amounts outstanding. Key to the discussion is whether the village wants to encourage and promote the ability to use credit to pay for water accounts.The positive side of passing the fee on is that there is no budget impact on the Water Fund for offering the service. The negatives include the potential diminishment of the use of the payment option and the core users of credit may be those who are having the most trouble Page 1 of 4 staying current on their account. This would be another fee on top of what will be a billing, delinquent fee, and potentially a service disconnection. The village should carefully consider allowing customers to make automatic payments via credit card. The concern on staff's end is primarily with large corporate customers who may use the convenience of an automatic payment via credit card to earn miles which would significantly increase the village's costs for credit card fees. If the option to set up a credit card for recurring payments is not allowed, staff believes that the majority of customers will pay via check (or e-check) and send to the village's lock box for payment processing. Regardless of the decision made on credit cards, staff will continue to promote the direct debit option (EZPay) as it is the easiest and cost effective means of collecting payment. If we do not allow for automatic payment via credit cards, the use of credit cards will be more of a factor for those with delinquent balances or may have trouble with the higher summer billings. All Other Fees and Fine" The second decision point is more global and addresses what fees/fines should be collected through a credit card. Listed below is a chart of General Fund revenues that could be processed via credit card. Significant revenue that is not considered due to the mechanics of the collection are property taxes, state shared revenues (income. telecommunications, and sales taxes), remittances from utility companies (use taxes — electric/natural gas, cable franchise fees), Cook and Lake County ticket revenues, and ambulance fees. Account Number Description Budget Fund General Fund Revenue.... 415.15 Taxes-Local Real Estate Transfer Tax $525,000 415.20 Taxes-Local Hotel/Motel Tax $121,000 415.30 Taxes-Local Prepared Food&Beverage Tax $741,600 415.50 Taxes-Local Auto Rental Tax $8,500 Intergovernmental Revenue 440.15 Intergovernmental Revenue-Local Reimb-District#214 $85,717 Officer 440.20 Intergovernmental Revenue-Local Reimb-Various Govts Fuel $86,500 440.25 Intergovernmental Revenue-Local Reimb-D.A.R.E.Officer $85,717 440.35 Intergovernmental Revenue-Local Reimb-Park District IT $9,996 Support Licenses.... 420.05 Business Licenses Business Licenses $100,000 420.10 Business Licenses Tobacco Licenses $1,950 420.15 Business Licenses Vending Machine Licenses $2,200 420.20 Business Licenses Chauffer Licenses $2,650 420.25 -------Business Licenses Alarm Permits-------- $28,375-------- 420.50 Business Licenses All Other Licenses $9,000 425.05 Liquor Licenses Class A $60,000 425.10 Liquor Licenses Class B $23,000 425.15 Liquor Licenses Class C $30,000 425.20 Liquor Licenses Class D $600......... 425.25 Liquor Licenses Class E $9,000 425.30 Liquor Licenses Class F $2,000 425.50 Liquor Licenses Other $2,500 430.05 Animal Licenses Dogs $8,100 430.10 Animal Licenses Cats $720......... Page 2 of 4 Permits 435.05 Building Revenue&Fees Development Building Permits $19,500 435.10 Building Revenue&Fees Engineering Fees $49,557 435.15 Building Revenue&Fees Contractor Registration $70,000 435.20 Building Revenue&Fees Plan Review Fees $60,000 435.25 Building Revenue&Fees Filing Fees $2,500 435.35 Building Revenue&Fees Building Inspection Fees $200,000 435.40 Building Revenue&Fees Plumbing Inspection Fees $28,000 435.45 Building Revenue&Fees Electrical Inspection Fees $40,000 435.50 Building Revenue&Fees Mechanical Inspection Fees $15,000 435.55 Building Revenue&Fees Sign Inspection Fees $5,000 435.60 Building Revenue&Fees Elevator Inspection Fees $35,000 435.65 Building Revenue&Fees Fire Suppression Inspection Fees $1,250 435.70 Building Revenue&Fees Rental Inspection Fees $75,000 435.71 Building Revenue&Fees Other Non-Business Lic&Permits $45,000 Fines and Fees 455.15 Fines&Fees Village Ordinance Fines $35,500 455.20 Fines&Fees Alarm Service Calls $17,000 455.25 Fines&Fees Accident Reports $3,725 455.40 Fines&Fees Subpoena Fees $1,000 455.50 Fines&Fees Impounding Fees $39,525 Miscellaneous Revenue 465.20 All Other Revenue Facility Rental $3,850 465.90 All Other Revenue Miscellaneous Income $40,000 Total: Miscellaneous Revenue Fund Total.General Fund $2,7301,532 There is a total of$2.7 million in transactions that could be processed by credit. For purposes of fee analysis, for every five percent of customers that shift to credit as the preferred payment method the village will incur fees of approximately $4,095 using three percent as the target fee. The amount estimated for General Fund fees/fines is more than the fee used for utility on-line payments because the fee structure for utility billing collection is typically less by about 50 basis points (.5 percent). If 30 percent of payers migrated to credit the fees would be$24,570. If the prerogative is to absorb costs, it may be prudent to identify revenues for exclusion to minimize some of the cost. Staff believes that prepared food and beverage taxes, real estate transfer taxes, hotel taxes, and any payment by a government could be eliminated. That would drop the credit eligible revenues to about $1.1 million. 30% of those revenues, if charged, would cost the village about$10,000. If it is determined that convenience fees/surcharge is passed on to the customer the language in the municipal code would resemble this, The village is hereby authorized to enter into agreements with debit card and credit card companies to accept debit or credit card payments and to agree to the payment of the charges imposed by those companies. If any of those agreements becomes effective, payments to the village shall be accepted via the debit or credit card process. For each such payment accepted via debit or credit card there shall be imposed a convenience fee of $1.00 or x percent of the payment amount, whichever is greater. X=actual card fee. Page 3 of 4 Status of lnfrvstructure to Accept Online Payments Over the last few months, IT and Finance staff have been working to build the infrastructure and design the web site interface to begin accepting on-line credit card payments for water bills. Once the web site interface is activated (able to be viewed), customers will be able to access their account to receive up-to-date account information. Through the secure site customers can view billing history, payment activity, and consumption summaries. Additional features will include; • Payment History—view both applied and pending payments and current billing information • Account Information—displays current balance, last payment made, account status (active or inactive) and current billing information • Consumption Information-consumption history can be displayed by billing period or in graph form. Current meter reading and average daily usage is also displayed. • Billing History- view past bills including bill date, due date, balance forward, payments and adjustments, and current charge. Past bills can be viewed and printed. There will be a security feature that will require the entering of an account number plus a personal identification number (PIN) in order to gain access to account information. The web server will provide secure access for all connections. Staff has been working with colleagues in other New World System (NWS) communities to garner feedback on what credit card payment solutions work best for the NWS utility module. By choosing a proven solution, staff can reduce additional programming and testing time required by NWS. Over the next week, staff will be meeting with one of the recommended vendors. Regardless of the decision on transfer of fees, staff intends to roll out the entire program in several phases. The first is to establish the utility billing on-line credit card portal. Once that is operational, tested, and reliable, staff will move forward with a separate on-line solution for all other accepted revenues.The last step, if appropriate,will be the installation of credit card terminals in village hall. Page 4 of 4