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2011-09-19 - 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 September 19, 2011 at 6:30 PM 1. Welcome 2. Discussion A. Centralized Purchasing Program [GO TO] B. Rental Housing Program [GO TO] C. Utility Use Tax Review-[GO TO] D. Amusemet Tax Research [GO TO] E. Home Rule Sales Tax Review [GO TO] F. Capital Improvement Plan - FY 2012 [GO TO] G. 20 Year Water& Sewer System Pro Forma/Combined Water Rate Recommendations [GO TO] H. FY 2012 Preliminary Corporate Fund Budget Development [GO TO] 3. Executive Session A. Personnel: Section 2(c)(1)of the Illinois Open Meetings Act 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 459-2518 to allow the Village to make reasonable accommodations for those persons. Centralized Purchasing Program 2-A Overview The attached memo is a follow-up from the July 18 Committee of the Whole meeting presentation on a village Centralized Purchasing Program. Attachments Centralized Purchasing Memo FOLLOW UP.pdf Centralized Purchase Program Memo-July 2011.pdf Centralized Purchase Program Presentation-July 2011.pdf(Appendix) 2011 Purchasing Agent Position Description.pdf(Appendix) Trustee Liaison Staff Contact Trustee Berman Leisa M Niemotka,Office of Village Manager ....M.on.da...........Se......ptem.be.r...1..9......2.0.1..1............................................................................................D.'sc uss.'.o.n...._...Ite.m........2._A....................................................................................................................................................... Y, September 8, 2011 To: Dane Bragg,Village Manager From: Leisa Niemotka, Assistant to the Village Manager Subject: Centralized Purchasing— Follow Up As you requested, I have put together follow-up information and next steps for the Centralized Purchasing plan. Introduction On July 18 the concept of a Centralized Purchasing program was presented to the Village Board at the Committee of the Whole meeting.The recommendation includes the addition of a full-time Purchasing Agent position in the Finance Department.This position would be responsible for the standardization of all purchasing decisions, be versed in all legal aspects of procurement-such as bidding requirements and conflict of interest laws, author and implement an updated village purchasing policy and garner buy- in throughout the organization for the new program.This position is proposed at a pay grade of 14 with a salary range of$65,111 -$98,563. The purpose of this memo is to address questions that were raised at the July 18 meeting. Q: How can a Purchasing Agent do a better job purchasing material than the subject matter experts? A: Because a purchasing agent is the subject matter expert for obtaining the best cost, consolidating specifications, writing contracts and assuring that all vendors/suppliers are treated in the same, ethical and equitable manner. Further, a purchasing agent can: • Establish long term relationships with vendors • Eliminate unnecessary and time consuming paperwork • Assure prompt payment of invoices to earn cash discounts • Negotiate higher levels of warranties on capital purchases • Aggregate purchases of like materials and equipment to obtain the best possible bids This program will provide a new level of internal control while streamlining the bureaucracy for the subject matter experts.The purchasing agent would spend the time necessary to "service"the vendors, all the accounts and all purchases on behalf of the village. Example: In a neighboring municipality,the Purchasing Agent worked with the Fire Department to spec out and purchase over$160,000 worth of flooring for four Fire Stations.Two years later, the floors began to fail.The vendor claimed that under their typical warranty, the cost of replacing the floor was not fully covered. Because of the expertise provided by the Purchasing Agent, who co-wrote the specifications with the Fire Chief, the warranty on the floor was outlined as part of the Request for Proposal and the floors were replaced. 1 �� IIIIIIIIIWII � 'I� m[3i`,1,J IFIF A LA) «�a�����d7 ucl Q:What else will the Purchasing Agent do in the Finance Department? A:The Finance Department staff has recently been reorganized; positions have been eliminated and restructured. In 2009 there was the complete elimination of one full time position; in both 2010 and 2011 a full-time position was reduced to permanent part-time. Because this is a degreed position, it is envisioned that the incumbent can provide general support to the Finance and Assistant Finance Directors.Tasks such as inventory control, central stores, bank reconciliation, budgetary compliance and more would fall under this role. The Purchasing Agent would also be responsible for working with various vendors and grant agencies to pursue and implement grant programs on behalf of the village. Example:The Purchasing Agent in a downstate community works with engineering firms to secure grant funding for alternative fuel purchases for the municipality.This work saves money and assists the municipality in achieving Federal Environmental mandates. lid I Q. How can we better measure the need for a Centralized Purchasing Program? A:There is not a formula that can be universally applied to predict specific dollar savings. However, a review of specific commodities from 2010—provides important information supporting the need for a centralized purchasing program. There are a variety of vendors used across the organization. Purchasing is decentralized and is currently a highly bureaucratic process-based function versus a customer-focused program. Having a centralized purchasing agent manage this program in a knowledge/results based platform will provide great benefits to the Village through: 2 �� IIIIIIIIIWII � 'I� m[3i`,1,J IFIF A LA) I1�a�����d7 ucl • Lower costs through higher volume purchasing • Inventory controls and management • Stimulation of vendor competition • Standardization of commodity purchasing • Lower costs to"service"vendors(i.e. less checks/bills to process) Q. Is the Village really large enough to justify having a Centralized Purchasing Program? How much business could this really affect? A: Based on the 2011 budget, the estimated total discretionary spending for 2011 is $17,540,328.00, a fairly sizable amount—certainly large enough to justify having a centralized purchasing program. According to the 2010 Treasurer's Report, the village paid out at least$600 to 774 different vendors. Many of those different vendors were providing the same or similar services to the village. Below is a chart outlining some examples of those types of vendors—clearly cost savings can be achieved by combining and streamlining these efforts. Close to half a million dollars were spent last year in the sample commodities presented in this chart. ��aairrir rrr f.rioi rr f»i «»� rr r rr,rrai a�for 1 � li«duGrOiirorisir Jrr / �iiJ ialiiiJ Garvey (Fire) $49,924.00 Warehouse Direct (Public Works) • Staples (Finance/OVM/B&Z) • Des Plaines Office Equipment (Police) • TriComm (Finance/OVM/B&Z) • Logsdon (Finance/OVM/B&Z) • IKON (Public Works) J oJr/op° . Verizon (Police) ��u�1J11J��1/ll�lll�ll fj11�11J � ? • Sprint/Nextel (Public Works/Fire/Finance/OVM/B&Z) $21,732.42 • USA Mobility(EMA) • AT&T Call One �� �� �II • AT&T $62,297.26 r • MCI JJ11J1JJ f/jJ jJfJJ1°ll/ • Oce (Public Works/OVM/Finance/B&Z) $38,429.52 %� , »�II,, • Des Plaines Office Equipment (Police) • IKON ;J"J/aOr//lr Ooi° . New Egg MNJ Technology $257,297.57 • CDW-G • Tiger Direct 3 �iioirrir rrr l.rloi rr r»i a»� rr r rr,roar ar iir iIIJJ�IJ////IJJ�/JJ / 1 J / U1J 11 J � J li«duiiNlrOniii IIIIIIIIIIIIIIII'. »> J»jrrrrrt ,r/rroliiai/ i/a/ill fajoi Kale $62,780.33 IIIII>I l�»1�Jl1f�Jf�f�l1lJ��, � �' r • Uniformity • Aramark • G&K • All American Uniform • Gale • Rogan's Shoes »rrrrrgq;y rrrrfrly Neopost (Village Hall) $3,023.41 I�Ulrfl fl1f�+lf�llfffll �111��fff/����������������� •� Pitney Bowes (Police)(((ffffffllll II � $495,484.51 *This information was obtained from the 2010 Treasurer's Report, so some information may not be readily apparent, i.e. a department could purchase office supplies from Sam's Club, but that is not reflected here. Recommendation The centralization of purchasing practices will help save costs and increase efficiency. Currently there are insufficient staff resources to coordinate this program. Having a professional purchasing agent on staff in the Finance Department is a critical step in modernizing and professionalizing business practices in the village. It is recommended that the Village Board approve this position in accordance with the prior recommendation of staff. Next Steps With the approval of the Village Board—the Village Manager's office will implement the following revised timeline: • November: Advertise the position of Purchasing Agent for the Village of Buffalo Grove. Development of formalized work plan for position/function will occur concurrently • November/December: Screen resumes, interview candidates, make candidate selection • January: Orientation and Departmental Meetings. Review of formalized work plan • February/March: Draft purchasing ordinance/purchasing policy to Village Board for review • April/May: Codification of Village of Buffalo Grove Purchasing Policy • June/July: Six month report on new purchase program 4 Village of Buffalo Grove Agenda Item Title: Centralized Purchasing Program PDF Bookmark Title: Centralized Purchasing Program Agenda Section: Discussion Meeting Date: 09/19/2011 . ...... ........ .... ........ ........ ........ ........ ........ ........ ..... ........ .................. Item TYPe. Discussion Status: Draft Trustee Liaison: Trustee Berman .. Numeral. II NIlllim 2 E.... Agenda Item Detail : Overview IIv;;4w Buffalo Grove faces increasing demands and decreasing resources. Centralized purchasing operations - appointing a single agent to serve as liaison between vendors and departments and adopting written procedures for administrating our purchasing polices will help ensure the efficient and cost-effective purchase of goods and services for the Village. According to the Illinois Association of Public Procurement Officials Buffalo Grove could achieve between a 15 and 20 percent cost savings per year through volume buying and improving the Village's bidding and quotation procedures. Background Centralized purchasing is not a new concept in local government. A variety of Chicago metropolitan communities - both large and small, have centralized purchasing. Examples are the City of Highland Park, the Village of Glendale Heights, Addison, Niles and Schaumburg. In Buffalo Grove, purchasing is extremely decentralized. There are no departments with a full-time "purchasing agent." The majority of purchasing responsibilities lie within each department and the duties are assigned as needed, however, each department has participated in various types of purchasing programs: • Cooperative purchasing - such as the Northwest Municipal Conference. The IT department participates in the Telecommunications Program (Call One, which provides the village with services such as POTS Lines; Data Services; ISDN Prime; Network to Network Interface; Alarm Monitoring, etc.) through the NWMC. • Municipal partnering program - The Village of Buffalo Grove joined a consortium of northwest suburban communities in October, 2010 with the intent of achieving better pricing by aggregating and joint bidding public works contracts. Initiated by a group of village managers representing multiple municipalities in the region, the Municipal Partnering Group now includes Buffalo Grove, Arlington Heights, Glencoe, Kenilworth, Winnetka, Lake Bluff, Lake Forest, North Chicago, Lincolnshire, Glenview, Northbrook, Northfield, Wilmette, Skokie, Morton Grove, Lincolnwood, Evanston, Highland Park, Vernon Hills and Grayslake. To date, participation in the Municipal Partnering Program has saved $7,417.77 through the joint purchasing of sewer lining and crack sealing. • Intergovernmental purchasing — such as the State of Illinois Central Management Services. Public Works buys things such as salt, hydrant painting, liquid calcium chloride, crack sealing and administrative vehicles through the State of Illinois. • Interdepartmental purchasing — in Buffalo Grove Public Works purchases janitorial services which are utilized by each department in the Village. Recommendation These general purchasing programs are useful, but we need to do more to cut costs, reduce the number of vendors/suppliers and establish longer term relationships with our vendors/suppliers to secure better pricing. The recommendation is to develop a centralized Village of Buffalo Grove purchasing program to maximize savings through quantity purchases, reduce time spent locating vendors and obtaining prices, and to eliminate individual purchasing efforts on the part of each separate department. The concept of a central purchasing authority is to institute and maintain an effective and economical program for the acquisition of goods and services for the Village. As part of current central management reorganization within the Finance Department — hiring a full-time, professional Purchasing Agent would ensure the following core elements are implemented for the Village: • Centralized authority of purchasing • Consolidation of requirement into bulk purchases to obtain quantity price breaks • Standardization of specifications to assure the quality of goods • Stimulation of competitive bidding to reduce prices • Centralized control over supplies in storage • Elimination of unnecessary paperwork • Prompt payment of invoices to earn cash discounts • Avoidance of late payment penalties • Centralized control over property excess to the Village Purchasing Agent Position The proposed job description, as prepared by Art Malinowski, is attached to this memo. It is important to note that to ensure the smooth operation of a newly created centralized purchasing program that a few guidelines be considered: • One individual should be responsible for standardization, centralization, accountability and openness • The individual should be versed in the legal aspects of centralized purchasing, such as bidding requirements and conflict of interest laws • The purchasing agent should stimulate vendor competition and make quantity purchases whenever possible • All purchases should be made following standardized procedures • Items utilized by the village should be standardized and resupply points established so that purchases will be made at regular intervals* *An example of this would be photocopy/fax machine contracts, and office supplies. These are all common commodities that would benefit from a volume purchase contract if standardized throughout the Village. This position is being proposed at a pay grade of 14 with a salary range of $65,111.90 - $98,563.88 under the Tier 11 salary pay range. Expectations With the creation of a centralized purchasing program and the hiring of a full-time purchasing agent, the Village Board will have the following basic procurement goals met: 1. Clearly defined Village of Buffalo Grove purchasing procedures - approved through a codified policy and a published purchasing manual 2. Compliance with the State of Illinois General Statutes in regard to public purchasing, procurement and disposal 3. Centralized management of the formal bid process, including advertising for bids, notifying vendors, accepting bid proposals, opening bids, tabulating bids and providing one primary resource to vendors 4. Assurance that all who wish to do business with the Village are treated impartially and equally 5. Purchase orders will be awarded to the lowest responsible bidder, taking into consideration quality, performance, technical support, delivery schedule, past performance and other relevant factors 6. Village departments will be provided the required goods, equipment and services at the time and place needed and in the proper quantity and quality 7. Promotion of good and effective vendor relations, cultivated by informed and fair buying practices and strict maintenance of ethical standards With the concurrence of the Village Board — the Village Manager's office will implement the following timeline: August/September: Advertise the position of Purchasing Agent for the Village of Buffalo Grove. Development of formalized work plan for position/function will occur concurrently October/November: Screen resumes, interview candidates, make candidate selection December: Orientation and Departmental Meetings. Review of formalized work plan January/February: Draft purchasing ordinance/purchasing policy to Village Board for review February/March: Codification of Village of Buffalo Grove Purchasing Policy June/July: Six month report on new purchase program Attachments: PDF Attachments: PFJ' 3'll III°' 0u"III 2011 Purchasing Agent Position Description.pdf PDF As Appendix: : II::: II'"': 0 C Working Documents: 11 W1114 Requestor Detail : Staff Contact:mmmmmm mmmmmLeisamMmmNiemotka/VOmBGmmmmm Entered By: Arthur Malinowski/VOBG Department: Office of Village Manager See appendix: Appendix001 - Centralized Purchase Program Presentation - July 2011.pdf See appendix: Appendix002- 2011 Purchasing Agent Position Description.pdf Rental Housing Program 2-B Overview The proposed program would register and inspect all rental residential property within the Village. According to Bob Pfeil,Village Planner,there are 1,420 rental apartment units in Buffalo Grove and a total of approximately 2,000 residences which includes rented single family homes, condos and townhomes that would be impacted by this proposed program. After registering with the Village, Building inspectors would inspect the properties,by appointment, for conformance to property maintenance and life safety issues. The inspections would include,but not be limited to, such items as: working smoke and carbon monoxide detectors, sanitation,electrical code violations,plumbing code violations,properly working heating and ventilation systems, etc. The purpose of these inspections is to confirm that properties within the community are maintained properly,which ensures the health and safety of the Village's residents. In 1998,the Building &Zoning Department established a Citizen's Inquiry Database to record and manage all the calls that require investigation by department staff. Most of these investigations dealt with property maintenance issues. The Department works to resolve these issues and does not impose any fees associated with inspection of the properties. If the owner is not local, it becomes difficult to gain compliance. Many times,the Department is forced to take the owner to court to resolve the issue(s). According to Village records,there are approximately 337 foreclosed properties in Buffalo Grove. A number of these properties are being purchased with the new owner's intent to rent the property either on a long term basis or until the housing market improves and the homes can be sold. Staff supports a residential rental housing program in Buffalo Grove to comply with the minimum housing standards as set forth in the current municipal codes and to help maintain property values. Neighboring Communities Many surrounding communities have rental housing programs comparable to the proposed program set forth herein. Below is a list of local communities and their current fee structure: Lakemoor $100 per dwelling unit(single and multifamily units) Mt. Prospect $75 per single family unit $40 per multi-family unit Mundelein $35 per address plus $2.00 for each additional unit Palatine $70 per single family unit $20 per multi-family bldg over 6 units Prospect Heights $100 per unit(includes both single and multi-family) Rolling Meadows Fees vary depending on the number of violations Base fees single family units $50 Base fees for multi-family units $20-30 Schaumburg $55 per dwelling unit Streamwood $100 per dwelling unit Wheeling $50 per single family unit $50 per multi-family bldg. plus $10 per unit. Wood Dale $150 per single family unit $150 per building plus $50 per unit for multi-family Proposal The Building and Zoning Department proposes to establish a rental housing program. Under this program all single family attached/detached rental units would be inspected on an annual basis while the multifamily rental complexes would have approximately 33%of their units inspected annually. It is proposed that an annual fee of$75 per single family dwelling unit and $150 per multifamily building plus $30 per each multi-family dwelling unit be applied. These fees would include one resinpection and after that additional fees would be charged. If the program is approved,the registration and inspection of the large rental complexes would become effective immediately. Staff would work to obtaining the rental information from single family detached/attached housing units. It is estimated that the revenue projection for the first year of the program would be approximately$60,000 and increase to more than $90,000 annually when fully implemented. Attachments Rental Housing Program 9-12-11.pdf Trustee Liaison Staff Contact Carol C Berman,Building&Zoning ....M.on.da...........Se......pte.m.be.r...1..9......2.0.1..1............................................................................................D.'sc uss.'.o.n...._...Ite.m........2._B........................................................................................................................................................ Y, � IIIII III IIIIIIIII! ............... 1 o u f w.w. Ln Ui �f ............... ® v L L •Ln ® v . fJ7 ` 75 fJ7 fJ7 5 >Ln Ln `(J7 ny _ X V il/ii, W• V -0 N ,e Ln O O ._ .X ` l f ...... %/////i%%%/C!!OMMOODD///////G/011lil////%///////////O////////O//O//O/////////////////////////O% IIIII� ............... CD P -: N X � � O p � � :D U U U >. 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Attachments Utility Use Taxes-Sunset.pdf Trustee Liaison Staff Contact Trustee Berman Scott D Anderson,Finance&GS ....M.on.da...........Se......ptem.be.r...1..9......2.0.1..1............................................................................................D.'sc uss.'.o.n...._...Ite.m........2._C........................................................................................................................................................ Y, ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... DEPARTMENT OF FINANCE AND GENERAL SERVICES ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... TO: DANE C. BRAGG FROM: KATIE SKIBBE SUBJECT: UTILITY USE TAX-SUNSET PROVISION DATE: 9/14/2011 CC: SCOTTANDERSON ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... On December 21, 2009, the Village Board adopted Ordinances No. 2009-89 and No. 2009-90 adding Chapters 3.65 Municipal Gas Use Tax and 3.66 Electricity Use Tax to the Municipal Code. Within the recitals of the ordinance was a requirement that by January 151h,2011 and each January thereafter,a review is to be undertaken to determine if the tax should be retained, amended, or repealed for the subsequent year. During the presentation of the FY 2010 budget, both utility use taxes were recommended for implementation as a remedy for the deterioration of the sales and income taxes.The new taxes were proposed as replacement revenues to protect our core services levels and current employee base. Since FY 2007,the village's total collections for sales taxes,both base and home rule,and income tax are down approximately$2.1 million.This is in conjunction with declines across all other significant classes of revenue (building fees,real estate transfer tax,and investment income). The utility use tax budgets for FY 2011 was $2.5 million based upon 12 months of collections and we will likely exceed the budget(given weather assumptions)by almost$150,000.The estimated budget for 2012 is$2.68 million. Based upon continued weakness in sales taxes and the state of unemployment there is virtually no likely scenario,given the current mix of sales tax generators,that we would experience a recovery in revenue that would afford the ability to reduce or even repeal the taxes. Therefore, it is recommended that the rate be maintained for the next calendar year (2012)with subsequent review provided to the Committee prior to December 2012. Amusemet Tax Research 2-D Overview Board direction is requested regarding the possible consideration of a local amusement tax. In July 2002, staff presented the Village Board with a report and recommendation to implement a tax on the admission fee to any amusement in the Village. The tax was reviewed at a Finance Committee meeting (Committee of the Whole) and it was agreed that the tax should not be pursued due to the limited number of businesses that it would apply to. As staff explores a variety of opportunities to continue to diversity the Village's revenue stream so as not to be dependent on any single tax,the research on this subject matter was updated and is hereby presented to the Village Board for review and direction. Amusement Tax consideration A flat rate tax could be applied to the admission fee of an amusement activity or charged based on a percentage of the admission to any amusement in the Village. If supported, it would be recommended that the ordinance exempt village,park district, schools and charitable organizations. Authorizing Legislation The corporate authorities of each municipality may license,tax, and regulate all places of amusement as well as theatricals and other exhibitions, shows and amusements, including but not limited to bowling and billiards, ice cream parlors, coffee houses, shows and athletic events. (65 ILCS 5/11-42-1) (from Ch. 24,par. 11-42-1) Impacted Businesses If approved, below are several businesses that would be impacted by an amusement tax. If the Board is interested in pursing this consideration further, a spreadsheet identifying the projected tax to the Village if a tax per admission or a tax on the percentage of sales was implemented would be prepared. eSkape bowling Rack `Em Up billiards Jump Zone Chicago Indoor Racing Buffalo Grove Theater Xtreme Trampolines Twin Rinks Ice Skating The legislation allows a tax to be applied for ice cream parlors and coffee houses;however,based on research conducted from area municipalities,the responding communities did not apply their tax to these types of businesses. Attachments Amusement Tax Survey Results 2011.pdf Trustee Liaison Staff Contact Trustee Berman Ghida Neukirch,Office of Village Manager ....M.on.da...........Se......ptem.be.r...1..9......2.0.1..1............................................................................................D.'sc uss.'.o.n...._...Ite.m........2._D........................................................................................................................................................ 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N aUi r Q , " 0 is ti 0 z d rn z� } 4 ao c d ui w O O O O O O O O O p 4 h- z z z z z z z z z am o c > Y (D 'a � z O o M � m c ° c D 2 Ci Q w C7 2 2 z am a �U Home Rule Sales Tax Review 2-E Overview Staff recommends the Home Rule Sales Tax rate be maintained for the next calendar year. Attachments Home Rule Sales Tax-Sunset.pdf Trustee Liaison Staff Contact Trustee Berman Scott D Anderson,Finance&GS ....M.on.da...........Se......ptem.be.r...1..9......2.0.1..1............................................................................................D.'sc uss.'.o.n...._...Ite.m........2._E........................................................................................................................................................ 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DEPARTMENT OF FINANCE AND GENERAL SERVICES ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... TO: DANE C. BRAGG FROM: KATIE SKIBBE SUBJECT: HOME RULE SALES TAX-SUNSET PROVISION DATE: 9/15/2011 CC: SCOTTANDERSON ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... On January 5,2004,the Village Board adopted Ordinance No. 2004-16 amending Chapter 3.40 of the Municipal Code to increase the Home Rule Sales Tax by.50%to 1.00% effective July 1,2004. Within the recitals of the ordinance was a requirement that by January 2006 and each January thereafter, a review is to be undertaken to determine if the rate should remain at the current level. A summary review of receipt activity from January 2010 through December 2010, along with a similar review from January 1,2011 through June 30,2011 reveals the following: • Total Home Rule Sales Tax received in the calendar 2009 vs. 2010 period was $3,028,123 compared to $2,797,824,a decrease of$230,300. • Based upon cash flow,only 9 months of calendar 2011 receipts have been received through September 301h. When compared to the same months of calendar 2010, receipts have increased by$169,094 or by 7.9% • Despite the relatively small increase in receipts, the multi-year trend continues to be a concern. Since 2006,home rules sales taxes have declined by nearly$1.2 million or 34%. • Last year a total of $507,604 had been transferred to the Motor Fuel Tax Fund for application toward the annual local street maintenance program. 20% of all home rule sales taxes are added to the state shared Motor Fuel Tax. • Based upon this level of transfer, funding provided to supplement state shared Motor Fuel Tax funds was equal to approximately 22% of all funding (exclusive of Corporate Fund transfers) available to support the local improvement initiatives. This amount remains significant and critical to carrying out the goals and objectives of the local street maintenance program. In recent years,decreasing revenues have forced the village to defer approximately$9 million of street programs. Based upon the anticipated recurring demands to design and properly fund annual street maintenance and improvements combined with the current state of the corporate revenue profile it is recommended that the rate be maintained for the next calendar year (2012) with subsequent review provided to the Committee prior to December 2 012. Capital Improvement Plan - FY 2012 2-F Overview Review of 2012 Capital Improvement Projects. Attachments CIP Service Redesign memo.pdf 2012 service redesign.pdf Trustee Liaison Staff Contact Trustee Stein Scott D Anderson,Finance&GS ....M.on.da...........Se......ptem.be.r...1..9......2.0.1..1............................................................................................D.'sc uss.'.o.n...._...Ite.m........2._F......................................................................................................................................................... Y, ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... DEPARTMENT OF FINANCE AND GENERAL SERVICES ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... TO: DANE C. BRAGG FROM: KATIE SKIBBE SUBJECT: CAPITAL IMPROVEMENT PLAN-FY 2012 DATE: 9/15/2011 CC: SCOTTANDERSON ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Attached is an analysis of all projects submitted to be included in the first year of the next five year Capital Improvement Plan (C.I.P) encompassing fiscal years 2012 through 2016. Department Directors were asked to pay particular attention to the project requests in light of the given economic conditions. Consistent with previous years, all projects were reviewed and subdivided into the following classifications;Customer Facing,Non-Customer Facing,Obligated,and Deferred. Customer Facing projects are those with the most tangible benefit to the community. Projects involving street repairs and improvement are the best examples of these projects as the entire community, as well as non-resident commuters, are impacted. Non-Customer Facing projects are improvements that support operations (facility improvement) that potentially can lead to operational or service delivery improvements.Obligated Projects are those that must be complete as we are contractually bound or have issued debt to complete. Deferred Projects are those projects that have been reviewed and shifted to the second year of the plan as next year's budget cannot support the increased reliance on the Corporate Fund's Fund Balance to cover the expenditures. A total of $9.8 million in projects have been submitted for the next fiscal year. Of that total $6.9 million are Customer Facing projects that include Motor Fuel Tax Fund and Corporate Fund commitments to the annual street and sidewalk maintenance programs ($4.3 million) and Water Fund capital improvements ($2.4 million). Non-Customer Facing projects total $2.4 million and address critical facility repairs and the Public Service Center Expansion ($2 million). The Public Service Center Expansion will require debt issuance to proceed. $.45 million in Obligated Projects are set to be integrated in the FY 2012 project year and include the final payment for the Route 22 improvement and progress payments on the Weiland Road Corridor Study. Two new projects are proposed for FY 2012. The first is Village Facilities Window Replacements ($324,000). Public Works had previously identified several village facilities that were experiencing issues with existing windows. In FY 2011, Burns&McDonnell completed an evaluation to determine the condition of existing windows and provide an overview of recommended corrective measures for the Police Department. The FY 2012 portion of this project would involve replacing and repairing windows identified in the Burns & McDonnell study. The second project changes the scope of a previously submitted proposal to replace the carpet at Station #26. The project has been expanded to include Police offices and portions of Village Hall. As of this time no capital projects have been deferred into FY 2012. As the budget process continues, projects will be deferred as it is determined what the budget can support. Deferred projects still represent important improvements that will need to be addressed at some point when budget capacity exists to fund the construction. This is an analysis of the first year of the FY 2012-2016 C.I.P. and it receives additional scrutiny as there are immediate budget ramifications upon approving the document (to be presented formally October 3rd)as those projects are integrated into the budget document for further review. 2 o m °c' M o� o� o� Oc' o� o� o c o o 0 0 _6 z' -o -o .c c c c .c c c c c ( E rS m m c c E E E c E E A m m m A m .m 0) 0) LL LL W W W W W k o LL 6 6 t=L y 0) c c o 0 o c o o c c c O c c c c c U. LL m LL LL U. m 0 0 '� '� 'm 'm O O L O O c c X x x cc' x x Q m co co0 co L V fn CO CO LLI m N m T LL LL m � N LL ry 00 O m o 0 0 0 0 0 o m O m O O O O 00 cn 0 0 0 0 0 0 0 0 0 o c o 0 0 0 0 0 LO LO LO LO O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 lq O Olq Vi LO O LO N O O O LO ZT O N I'. LO O Nt N O_ p- p- O_ N O N O Cl) LO CO O I-- LO O r-- m F- CO O N LO ''.. 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C J ON O, Z tL Z s O O N 0) U m 00 0 c o C6 IL � 0 LO � c E � N N E (J O N `— CU Q .N N p O U } C1 m LL .E Q N Co 0 a C) o U -� _z 0 .o U y H U Q N O Y C) N z O � co Co Cn CO J N Q 0 u. °' z fn CO COCO C O E E � ~ 4 CL _ ? W, U N N O a coTO N z CL N N a' Q L1 0 4J E E a m F- c r Q *� = Fes- ©I ~ m m > o ° m j 0 o � ro - 0) 4) 0a 0 a o, .y o CL J co U" W W °a' m J o 0 8 o m Q H W L Q W ayi w v Q U J AMC3 co m W w R J .� `) co H W Nj U H a s Q GG w° W '� U �" '`° O i m m ° o W I°- Q- I° ~ 0 0 0 U i?\ o Z ~ N M V U co 20 Year Water & Sewer System Pro Forma/Combined 2-G Water Rate Recommendations Overview The Village has had a long history of being a community with consistently low user rates; in fact,the Village maintained a combined water and sewer rate of$1.80/1,000 gallons for a period of twenty three years (1983- 2005). One significant reason leading to this period of rate stability was due to the age of the water and sewer infrastructure. The Village has been prudent about requesting water rate increases as evident by a twenty- three year rate freeze. During those years,the Water and Sewer Fund was able to amass a working cash balance that allowed for a reserve to address infrastructure maintenance and improvement. To address the future working cash needs of the Water Fund attached is a twenty year pro forma and rate recommendation report. Attachments 20 year water proforma.pdf Trustee Liaison Staff Contact Trustee Berman Scott D Anderson,Finance&GS ....M.on.da...........Se......ptem.be.r...1..9......2.0.1..1 Discussion 'sc uss.'.o.n...._...Ite.m........2._G....................................................................................................................................................... Y, HIJUI t'AD,() C"It, . E TO: Dane C. Bragg, Village Manager FROM: Scott D. Anderson, Finance Director DATE: September 14, 2011 RE: Water Fund 20 Year Pro Forma / Rate Recommendations History of Water and Sewer Rate Adiustments The Village has had a long history of being a community with consistently low user rates; in fact, the Village maintained a combined water and sewer rate of $1.80/1,000 gallons for a period of twenty three years (1983-2005). One significant reason leading to this period of rate stability was due to the age of the water and sewer infrastructure. During the peak growth decades of the 1980's and 1990's, developers paid for, and donated, approximately 53% of the water and sewer system assets. Through a combination of minimal capital expenses coupled with a period of growing water consumption, the Water Fund was able to generate healthy cash reserves to allow for a strategy of pay-as-you-go financing for future infrastructure repair. In FY 2003, a pattern of declining water usage began. In 2002, 1.63 billion gallons of water were metered with the average monthly consumption at 7,906 gallons. In 2010, 1.3 billion gallons were metered with an average monthly consumption of 6,140 gallons. The following chart shows the average monthly water consumption since 1990. 1 off • 111 111 i III . off off � 111 . . . . . . . . . . The outlier in FY 2005 was drought induced. Absent that year, a fairly linear decline began after FY 2002. Even with the decline, the Water Fund was able to cover its operating expenses and generate a small surplus each year until 2006. A rate recommendation was made to increase the rate by 33% to $2.40/1,000. The increase stabilized the fund from an operating standpoint but did not address future Page 1 of 6 capital needs. A second rate increase (25% to $3.00/$1,000) was proposed for 2010. Again the increase helped to ensure that water sales would offset operating expenditures. The extent of the decline in consumption was expected to bottom out during 2007-2008 but a confluence of factors including, economic, meteorological, and ecologic have continued to put a strain on water sales. For future estimates, it is estimated that the current fiscal year will close at 1.31 billion gallons sold and will carry forward through the 20 year pro forma. Although there will be an increase in total consumers over the next two decades, continued conservation efforts will likely counterbalance that growth. One factor that has not been integrated into this analysis is any potential impact of replacing worn out meters in homes. As these devices start to fail and are replaced, there is the potential for more accurate (higher) reads. At this point I cannot quantify an improvement in metering efficiency. Current Financial Position of the Water and Sewer Fund The Village has been prudent about requesting water rate increases as evident by a twenty-three year rate freeze. During those years, the Water and Sewer Fund was able to amass a working cash balance that allowed for a reserve to address infrastructure maintenance and improvement. Due to the relative age of the system, over a fifteen year span (1993-2007) the only capital expense was $229,527 for the St. Mary's Road water main replacement. Since 2007 the following capital expenses have occurred; • Johnson Drive lift station $ 240,886 • Linden Avenue lift station 402,153 • Cambridge on the Lake lift station 160,049 • Buffalo Creek water main 86,682 Arlington Heights water main 581,631 • Reservoir #7 1,777,682 • Security Improvements 640,000 Total $ 3,889,083 Until FY 2007, the Water and Sewer Fund maintained a cash and investment balance of approximately $10 million. That balance was accrued with the intention to cash finance capital projects in the future. As planned, those reserves are being used to pay for almost $4 million in infrastructure repairs and improvements. The additional challenge of managing the use of reserves is that as consumption began to plummet, working cash balances moved in tandem. The current rate structure is no longer funding operating expenses and therefore is not in a position to rebuild reserves. The following chart depicts both the trend of the Water Fund cash balance if no action is taken and a possible rate increase to stabilize the fund's working cash. off off I off off off off off off as as a® a® a® as a®® as a a a a a a a a 1 off off off off 1 off off Page 2 of 6 On the current course, the Water and Sewer Fund will be in a deficit position in FY 2013. With the proposed rate increase, the fund will maintain a positive balance until FY 2016. While both scenarios sound ominous there are several assumptions that factor into the analysis. The finance department has prepared a twenty year pro forma of the Water and Sewer Fund that factors for not only anticipated revenues and operating expenses but also capital expenditures that go beyond the revolving five-year Capital Improvement Plan. Water and Sewer System Assets The first step in the process was to determine the replacement cost of the water main system. The system consists of 181 linear miles of main. The value of the main system in today's dollars is approximately $200 million. The service life of the infrastructure ranges from 50 years for cast iron main to 75 years for ductile iron. The replacement cost of the entire system, inflated at 3% per year, is $773 million. The assumption used for replacing any future water mains is that on any given year where sections of the system have reached the end of their useful life 25% of the system will be replaced. For instance, water main constructed in 1962 has a replacement cost of about $372,000, we will forecast that $94,000 in repairs should be anticipated. This cost estimate is trying to compensate for the improbability that the entire section will be replaced. The estimated reflect rolling replacements where in certain instances only sections are repaired. Another component is that the replacement cost includes a curb-to-curb street reconstruction. A percentage of that expense will be charged to the Capital Projects Street Fund or the Motor Fuel Tax Fund. Within the straight line depreciation calculation beginning with the oldest main constructed in 1929, the first replacement should have occurred in 1979. Approximately $10 million in water mains have expired' but have not needed to be repaired. Trying to predict the actual asset life at times is more abstract than qualitative. Pipe that is ensconced in stable soil and subjected to consistent water pressure may have a service life that may double an engineering estimate, and conversely, shifting soils may reduce the life by many years. The following chart shows the pattern of construction of water main since 1929. M off During the thirteen years spanning 1983-1996, almost 50% of the water system was constructed. Fortunately during those years, the more resilient ductile iron was used. The age distribution of the water main leads to the cost estimates to replace the system noted in the graph presented below, Page 3 of 6 i Replacement costs begin to ramp up in the 2060s and 2070s as main installed during the peak construction years reaches seventy years of age. Water main is only one component of the delivery system. Other assets include the sanitary sewer main, lift stations, and booster stations. The sanitary sewer mains have roughly the same total mileage as the water main. Since the village does not treat waste there are no treatment facilities to fund. For the purpose of the pro forma, the FY 2012-2016 Capital Improvement Plan was added to the calculation. Beyond 2016, a flat amount is budgeted each year to address sanitary sewer system and lift station repairs. Pro Forma and Rate Recommendations The pro forma was developed around an annual consumption base of 1.31 billion gallons. Operating expenses were built upon the FY 2011 and 2012 budgets and indexed for inflation. As part of the analysis, a working cash threshold was established at 25% of the operating budget of the water and sewer fund net of expenses related to Lake County Public Works as there are pass though revenues that offset those expenses. At minimum, the fund must strive to always have three months worth of expenses in the bank. It is estimated that the Water Fund will have nearly $3.9 million at the end of this year. The threshold is $1.2 million. The difference between the two represents cash available for infrastructure. It is anticipated the much of the $2.7 million difference will be used to complete the deep well construction at reservoir #7 and improvements to lift stations. Although this analysis attempts to identify the financial condition of the fund over the next two decades, the rate recommendation focuses on the next three years. Staff is recommending a 56% rate increase phased in over the next three years. The first year would be 25% (3.76/1,000), year two would be 16% (4.35/1,000), and the final year 15% (5.00/1,000). For the outlying years, I factored a CPI adjustment of 3% per year. Below is a graph that sets as a baseline the Village's water rate in 1983. A data set represents the Village's actual rate set against a CPI adjusted rate. Page 4 of 6 11 � 11 11 11 11 1 11 •� •� •� •�• •• •• •• •• ••• 11 11 11 11 11• 1 1 With the recommended increases, the rate will surpass inflationary growth in 2013. What is not measured on the chart is the value of the variance between the two data sets. Had the village charged a rate based solely on inflation during those years the cost to customers would have been an additional $42 million in user charges. The effect of the rate increase on the revenue and expense profile is noted below. 1 111 111 111 111 1 111 111 111 111 1 111 111 111 111 1 As you can see, the rate increase allows revenues to move in lockstep with expenses. What it doesn't do is start to rebuild the capital reserves (surplus over working cash threshold see chart below) and as discussed previously will not avoid the fund going into a negative cash position into FY 2017. Page 5 of 6 Ten Year Revenue Adequacy td Revenue w0perating Expenses " Capital Expenses 12,000,000 10,000,000 8,000,000 _........ 6,000,000 4,000,000o 2,000,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Staff recognizes the challenges associated with what is a significant series of rate increases. That being said, these recommended increases do not address infrastructure improvements in any meaningful manner. The water rate increases are structured to stabilize operating losses, maintain for the next several years the working cash threshold, and allow time to revisit infrastructure to determine if pay-as-you go financing is still preferred, prudent, and attainable. On a more positive note, the current and past board should be commended on maintaining a water and sewer utility system with an engineering value of about a half a billion dollars that is debt free. Going forward, funding solutions in the future may need to incorporate the issuance of revenue or general obligation bonds. This report, similar to the Corporate Fund Five Year Forecast, will be reviewed at least annually and updated to reflect the fund's most current position. It is recommended that an infrastructure reserve funding formula be developed over the next two years as part of a comprehensive water/sewer utility strategy. Page 6 of 6 FY 2012 Preliminary Corporate Fund Budget Development 2-H Overview The development of the FY 2012 budget is in process. Last week all departments submitted their preliminary department budget requests. The approach that was taken this year was to submit a budget that maintained employees' current rate of pay(non-represented employees),no capital reserve transfers,no increase to health insurance, and no subsidy for the golf enterprise. Congruent with that process was the development of the revenue budget. Attached is the preliminary FY 2012 Corporate Fund Budget. Attachments 2012 Budget-COTW.pdf Trustee Liaison Staff Contact Trustee Berman Scott D Anderson,Finance&GS ....M.on.da...........Se......ptem.be.r...1..9......2.0.1..1 Discussion 'sc uss.'.o.n...._...Ite.m........2._H........................................................................................................................................................ Y, 1 1F.A V`,]E,. COF 1 11]1 t"AD,0 C. ,It, . E TO: Dane C. Bragg, Village Manager FROM: Scott D. Anderson, Finance Director DATE: September 15, 2011 RE: Preliminary Budget Development—Corporate Fund The development of the FY 2012 budget is in process. Last week all departments submitted their preliminary department budget requests. The approach that was taken this year was to submit a budget that maintained employees' current rate of pay (non-represented employees), no capital reserve transfers, no increase to health insurance, and no subsidy for the golf enterprise. Congruent with that process was the development of the revenue budget. 2012 Preliminary Revenues At this point in the budget process Corporate Fund revenues are anticipated to be $33,552,741. The following chart breaks down the revenues by class and measures against expectation with the submittal of the five year forecast. Corporate Fund 2012 2012 Revenues Projected Budgeted Property Taxes 11,869,191 11,726,980 State Income Taxes 3,725,137 3,601,853 State Sales Tax 4,653,971 4,349,054 Home Rule Sales Tax 2,782,707 2,969,442 Real Estate Transfer Tax 500,000 500,000 Telecommunications Excise Tax 2,170,195 2,075,341 Prepared Food and Beverage Tax 714,272 729,300 Para Mutual Tax 80,000 86,000 Utility Tax-Electric Service 1,604,060 1,626,310 Utility Tax-Natural Gas Therms 920,309 1,052,218 Business Licenses 133,900 144,025 Liquor Licenses 126,500 126,145 Building Revenue&Fees 730,802 938,331 Intergovernmental Revenue-Local 226,625 254,796 Investment Revenue 207,922 131,663 Fines&Fees-Police&Fire 1,487,700 1,382,650 Operating Transfers 719,100 725,000 All Other Revenue 709,780 804,583 Miscellaneous Revenue 336,846 329,050 Total Revenues 33,699,016 33,552,741 percent change -0.43% Page 1 of 3 Corporate revenues are expected to be .43% ($146,275) less than anticipated several months ago. Several revenue classes were revised downward with a few more months of receipts to analyze. Those revisions include; • Property Taxes o The levy was developed with a 3% growth target. Traditionally, the levy is tied to the Municipal Cost Index which is currently at 4.9%. The downward revision is for the pension funds that are collected within the Corporate Fund. • State Income Taxes o The budget is using the most recent IML estimate for Income and Use Tax. The decline is due to the end of tax amnesty and the payment of delayed tax refunds. • Sales Taxes (combined) o Collectively sales taxes were reduced by $118,182 to reflect lower than expected receipts in July, August, and September and recent economic headlines. • Telecom Taxes o Similar to other state distributed taxes, collections continue to decline. • Building Revenues o The most recent estimates provided by Building and Zoning include additional revenue for the rental program and future annexation. 2012 Preliminary Expenditures The first iteration of the budget puts total corporate expenditures at $33,294,274. The following is a distribution by department. FY 2012 Transfer FY 2012 Revenue from O eratin Sur lus Ex enditure Fund-Activity Budget or Other Sources Budget Corporate Fund: Revenue 33,552,741 Legislative 140,250 Office of Village Mania er 762,165 Information Technology 725,712 Le al Services 235,450 Finance&General Services 989,488 Human Resources 896,035 Fire Services 7,809,824 Police Services 9,120,990 Building&Zoning 1,038,148 Public Works Administration 422,967 Engineering Services 624,586 Buildin Services/Street Li htin 932,078 Street Operations&Maintenance 1,572,822 Forestr /Parkwa /Landsca e Maintenance 1,039,895 Central Garage 1,274,355 Draina e S stem 370,497 Emergency Management Agency 61,100 Sub-Total Operations 33,552,741 ---- 28,016,362 Transfer Non-Operating 0 5,277,912 Total Corporate Fund 33,552,741 33,294,274 The five year forecast anticipated a budget of $34,489,840 or ($1,195,566) less than the initial submittals. The forecast included 1.5% increase for wages, 5% for health insurance, $400,000 in capital reserve transfers, and a $250,000 subsidy to the golf enterprise, of which are not included at this point in the process. As the budget currently is constructed, the Corporate Fund will generate a surplus of $258,467. Using the above estimates on the preliminary budget the Corporate Fund will be at a $787,000 deficit. That Page 2 of 3 deficit compares to the forecasted deficit of $790,824. Revenues will continue to be monitored for unusual trending and will be modified if prudent. Over the next two weeks, we will be meeting with department directors to review their proposals and work to generate additional savings. Over the next several weeks, staff will be reviewing line items and performing categorical analysis. As the formal document is being constructed the end product will have a different look from what you are accustomed to. Staff has been working to modify the document to be more user friendly with a focused effort to provide more relevant content in the front of the budget. Page 3 of 3 llllluq rill. WI Jj NO H I No I g m jjl� IN jjl� NIIIIIIIII / // / ✓/�j %l I'%'f���//��///it///// ICI /„ Q U a �I�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIII ��� �/ �j Illlu»'lll >` � rf �///// /// /� / cn � f/ +-+ •— +-+ 11111111/� l DC / � � m � � /larrrrr/� �(l cn a a 4A o / 1 IIIIIIIIIIIIIIIIIIII l Alal p !/ `� Q � O O UIIII I!/ / J to Ca 4A/f + aa� Cl Cl >>/ A O O o // % o✓// �IIIII t/ lff u u �' /INS / 'O' v C: v / J% »rrrrrrrl a--+ cn +-j cn +-j cn „ U Mai/ /j N Q Q f/ O �lllll �j Il o »uuro //O % »rrrrrrrl r-I ro CID Cn 0 r-I lG / %l O a--+ Ln)lU > FIX nm111 R64b1 UIIVmmum /� /,•/ /„� / ca /frr % 11 ,' CIOCIO off/; 0 00 bn CIO 0 % O %,//i j >- if/ a--+ Illlllluuuuuull I� 1 j��� °�'� 4-' ' /'/� / / IIIIINNllllllll�r ��a///a ��� � +-+ � i C6 — cn �/ uluuil j%% // //o// ti /// �%!off � � O (D IIIII � / , � / / // / •- , ii �',,/i • • �///,ice • • / / / / / _ t r l / / / / 1 � / / � /of 1 r I f / / l r II 1 / / I / 10 / / t / / / / J / / � f / / J / r / / / / J r Position Description Position Title: Effective Date: (The date this Description goes into effect) Purchasing Agent 01/01/2012 Department: Finance Reports to: Supervises: (position name) Director of Finance and General Services Does Not Supervise Others Pay Grade: Job Factor Number: 14 500 FLSA Status: Exempt Full-Time Summary of Position: (Provide a brief narrative, one or two sentences, that highlights the primary mission and key responsibilities of the job). This highly responsible, administrative position, manages the procurement process for the Village of Buffalo Grove including but not limited to: public bidding; contract administration; procurement of materials and services; and fiscal analysis to ensure the efficient use of Village funds. Analyzes and reviews all Village supplier agreements and awarded contracts to: guarantee supplier compliance, quality performance, value added activities, economies of scale, efficiency, and adherence to purchasing policy. Researches, recommends and implements strategic initiatives to reduce costs and improve efficiencies. Complete special projects as assigned by the Village Manager, Deputy Village Manager and/or Finance Director. Essential Job Functions: (State the essential duties and responsibilities of the job. Include regular day-to-day duties as well as duties that occur at irregular intervals but that are recurring and necessary). (1) Meets with suppliers and contractors to assess applicability to Village needs; publishes supplier bid lists; acts as primary contact for the Village's internet site for publishing bid and proposal requests; maintains catalog and commodity files. (2) Meets with department heads to assess needs for materials and services; acts as resource for procuring said needs and assists in supplier interface and negotiation. (3) Oversees the public bidding process: prepares and publishes bid proposals, schedules and conducts bid openings, prepares bid tabulations, together with department heads makes recommendations for bid award; implements award documents; ensures all legal requirements are met; and if necessary prepares bid waivers for the Village Board; if necessary attends Village Board meetings. (4) Oversees the preparation, distribution, and awarding of Requests for Proposals (RFP) for services, the execution of contracts for services, and the compliance to contracts. (5) Oversees the ordering of supplies and materials: i.e. the development and oversight of procedures to accomplish this including the delegation of responsibilities, the purchasing credit card, and the issuance of purchase orders. (6) Audits materials and services for purchase price and quality to ensure proper economies of scale for overall cost of quality. (7) Audits suppliers and contractors to ensure true value for the services and materials received, and resolves discrepancies. (8) Supports department heads in planning the timely execution of annual or multi-year contracts and prepares necessary contract documentation. (8) Coordinates with Technical Services Manager. (10) Acts as chief naeounoe for State of Illinois Purchasing Contract Agreements and all other joint purchasing agencies and related government pricing plans. (11) Forwards Village-wide requirements 1othe State of Illinois for joint bidding purposes (12) {|naatee' edits and updates the a Village-wide Purchasing Policy and Procedure Manual. (13) Attends professional development workshops, seminars, and professional meetings to ensure a current knowledge of legal requirements and innovations in public procurement, contract administration, and insurance requirements, ae Village budget allows. (14) Perform other duties aeassigned. Summary of Essential Job Functions: (This summary will be used m describe the day m day responsibilities or the position, for use m one's performance evaluation—limited mnv000amoteu). (1) Purchases all commodities for the day-to-day operations with the Village including vehicular and related automotive equipment, major capital purchases, construction contracts and miscellaneous office equipment and supplies. (2) Interviews vendors, salespeople and department heads relative 1opurchases and contracting for services; drafts bid specifications and secures sealed bids for the acquisition of goods and services. (3) Analyzes bids and makes recommendations for acceptance or rejection to the involved department head(s), the supervisor and the Village Board; processes requisitions, purchase orders, inventory re-order forms and contract orders for products or services commonly used by multiple departments to secure better pricing; ensures quality of materials in accordance with specifications. (4) Performs duties in strict accordance with the Department/division SC)P/eafe1ymanua| and is expected to report any hazards and observed infractions immediately to the supervisor; may serve on departmental safety committee. (5) Contacts new vendors and contractors to ascertain their qualifications; maintains library of catalogs, price |ie1e' specifications and vendor qualifications; researchers current laws, statutes and federal regulations to ensure compliance. (6) Notifies departments of impending or current shortages affecting orders; attends purchasing meetings or seminars as appropriate; also coordinates all purchases involving other local agencies under intergovernmental agreement. (7) Ensures compliance with all applicable state and federal procurement regulations, maintains prevailing wage records for Village projects. (8) Assists the Director and Assistant Director of Finance and General Services in evaluating the delivery ofinternal and external services. (8) Assist with general accounting functions. (1O) Performs other duties ae assigned orrequired. Knowledge, Skills and Abilities Required: (List the minimum required education,prior experience, certifications and specialized areas of knowledge required to adequately perform the essential functions of the job). For successful performance in this position, the incumbent will need to demonstrate the following: (1) Strong knowledge of inventory control and purchasing methods and procedures. (2) Thorough knowledge of supply sources, markets, and pricing trends. (3) Thorough knowledge of the laws, ordinances, and other requirements governing the purchase of commodities and services for amunicipality. (4) Skill in the use ofapersonal computer, including software programs such as Windows, VVond' Excel, etc. (5) Effective oral and written communication skills. (6) Ability to maintain strict confidentiality. (7) Ability to establish and maintain effective working relationships with vendors, consultants, elected and appointed officials, employees, and the public. (8) Ability to exercise professional independent judgment in planning own work and recommending solutions. (8) Ability to use objectivity and impartiality when making difficult decisions and recommendations. (10) Follows safety policies and procedures. (11) Reports all unsafe conditions and acts 1osupervisor. (12) Reports all accidents 10 supervisor immediately | (13) Follows recognized safe work practices. | (14) Graduation from an accredited college or university with a Bachelor's degree in an area of Business, Accounting, Public Administration, a related field or equivalent experience. (15) Minimum of three (3) years experience in purchasing/inventory control in a private industry or public management position. (16) Any equivalent combination of experience and education that provides the required knowledge, skills, and abilities. Personal Skills and Competencies: (Identify any behavioral characteristics and attributes that would contribute to superior performance for this position,i.e. organization, communication, detail-orientation,analytical skills). There should be a pull down of the competency list for this position on both this document and the performance appraisal. Name Description -- Produces work with few errors due to conscientiousness and awareness of Accuracy and Detail Orientation the importance of accuracy Pays attention to all details Is systematic in carrying out job responsibilities Deals with the public in a matter appropriate to the situation, responds effectively to public inquires and requests, and promotes a favorable and Professionalism positive image of the Department and Village Treats others with respect Displays strong character and integrity Expresses one's opinions and feelings in spite of disagreement from Assertiveness/Confidence others -- Believes in one's own skills, capabilities and judgment; expresses that belief -- Works well with all types of people, both external to the Village and with Cooperation co-workers Understands others' point of view when reaching decisions with others Is willing to help others achieve their objectives Decisiveness Makes decisions with available information Knows whether to get additional information before making decisions Uses effective plans and communications to persuade others or gain Influence/Persuasion support -- Plans ones'words and actions in advance to achieve the desired effect with others -- Able to organize and schedule people and tasks Organization Skills -- Develops realistic action plans while being aware of time and resource constraints Applies time management principles Uses a systematic approach in solving problems through analysis of Problem Solving problem and evaluation of alternative solutions Is able to get to root cause to solve a problem permanently Working Conditions/Physical Requirements of the Job: (Indicate what the physical requirements are to complete the essential functions of the job,i.e.lifting,standing, etc. Also indicate any working conditions that may be out of the ordinary,i.e. travel, hours of work, exposure to noise, etc.). The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of the position. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. Work is performed mostly in an office environment. Must have the use of sensory skills in order to effectively communicate and interact with other employees and the public through the use of the telephone and personal contact as normally defined by the ability to see, read talk, hear, handle or feel objects and controls. Physical capability to effectively use and operate various items of office related equipment, such as but not limited to a, personal computer, calculator, copier, and fax machine. While performing the duties of this position, the employee is regularly required to reach with hands and arms. The employee frequently is required to sit; stand; walk; and use hands to finger, handle, feel or operate objects, tools, or controls and talk and hear. The employee is occasionally required to climb or balance; stoop, kneel, crouch, or crawl. The employee must frequently lift and/or move up to 10 pounds and occasionally lift and/or move up to 25 pounds. The above is not intended to be an all-inclusive list of the duties and responsibilities of the job described, nor is it intended to be an exhaustive list of the skills and abilities required to do the job. Rather, it is intended only to describe the general nature of the job. Employees may be required to perform duties outside of their normal responsibilities Ifrom time to time, as needed.